Presentation on theme: "Prof. George Angelow President and CEO investment program is member of Lions Club, Paris e ast e lectric c ompany, LLC. 242 Concord Rd., Wayland, Mass."— Presentation transcript:
Prof. George Angelow President and CEO investment program is member of Lions Club, Paris e ast e lectric c ompany, LLC. 242 Concord Rd., Wayland, Mass , U.S.A. ph European Compliance Office: 20 Felix Kaniz St., Sofia 1606, Bulgaria e Ph/efax:
Company Profile e ast e lectric c ompany e ast e lectric c ompany (eec) is the name of two entities in both countries, the United States, Washington, DC, and Bulgaria. They were chartered as engineering and financial advisors for development of power production on renewables, on the first place energy from municipal solid waste and also wind farms, run-of-river hydro-power generation and photo voltage solar plants.
Energy Waste The advantages and major benefits of Energy Waste investment program include: Production of electricity from municipal solid waste Production of potable water Metals, plastics, glass, ceramics, paper recycling Ash recycling Sorted waste or non-sorted waste processing Near zero emissions No cost feedstock - tipping fees actually add to revenues Feedstock flexibility Reduced need for landfill space Adding value to local economy eec proposes an integrated project including a pre-treatment of waste with the aim of separating recycle components from the non-recyclable ones and separating component for compost and components for burning and generating power. waste 2 power This is the field of our most overgrowth for some time past and the line of projects where we invest hundred of million dollars own and syndicated funds. It is our mandatory practice to line up behind the municipality of the towns of the projects. e ast e lectric c ompany is the operator providing to its local partner, the Municipality, all instrumentsengineering design, capital goods, training, operation, and meets the local cost of the investment project for the mutuality of benefit of the partnership.
Project Concept Recycling System System e ast e lectric c ompany proposes an integrated project including a pre-treatment of waste with the aim of separating recycle components from the non-recyclable ones and separating component for compost and components for burning and generating power. Waste Incineration Energy Generation
City / Municipality City / Municipality Project Guarantor Project Guarantor - Municipality Servicing Bank Project Company Project Company Project Lenders Project Lenders against eec s assets pledged securities and insurance polices Contracting Parties Contracting Parties Turnkey construction contractor Turnkey construction contractor Subcontractors, equipment suppliers Subcontractors, equipment suppliers Power purchaser Power purchaser Power-grid operator Power-grid operator Fuel/waste/feedstock suppliers Fuel/waste/feedstock suppliers Operator Operator - JV Co. chartered by eec & Municipality Complex system which involves:
Contractual Structure Contractual Structure (1 st stage) Order Letter of Indemnity Bank Guarantees Contract 1 st Advance Payment Credit Bank National Bank Municipality US Manufacturer Subcontractor
Contractual Structure (2 nd stage) 2 nd Land Concession Equipment Maintenance Application Order Final Settlement Joint Venture Order Letter of Indemnity Bank Guarantees Contract 1 st Advance Payment Credit Bank National Bank Municipality US Manufacturer Subcontractor
Contractual Structure (3 rd stage) 2 nd Land Concession Equipment Maintenance Application Order Final Settlement Services Cash Costs Repayment Payments Dividends Joint Venture Power Purchaser Fuel Supplier Order Letter of Indemnity Bank Guarantees Contract 1 st Advance Payment Credit Bank National Bank Municipality US Manufacturer Subcontractor
1 st 2 nd 3 rd Financing/Stages 1 st 2 nd 3 rd Site preparations Construction Project background screening Engineering design Financial project Advance manufacturing equipment Final settlement equipment Construction of shop-plant Current cost of waste disposal Availability and cost of disposal alternatives Renewable car park and waste bins Screening of the existing situation and waste types assessment Site infrastructure approval Zero cycle of equipment & shop installment Utility interconnections Ash disposal capacity Waste supply commitments Operative landfill for 3- day waste collection Engineering Equipment purchase Shop construction Engagements e ast e lectric c ompany Engagements
Assignment of the job to eec (by mean of the Memorandum) Granting licenses (through concession agreement) Securing the project background screening & engineering design (by 1 st bank guarantee – % of the investment) Supervising the process of implementation (as a 20%-shareholder in the Operator JV-Company) Supervising operation, management and maintenance (by means of the monthly payments for the service) Undertaking of projects service purchase obligations to secure returns (by 2 nd bank guarantee – 100% of the investment) Role of the Municipality
Sorting line and Baler Reduce waste stream by 20% Additional sorting equipment Additional sorting equipment Removes 45% Removes 45% of waste stream Adds composting Reduces waste stream another 10% ROTARY CASCADING BED COMBUSTOR Description Of Proposed Technology Reduce entire waste stream to an ash for: Composting Land reclamation Concrete manufacturing NEW, UNIQUE DESIGN Clean combustion of diverse fuels and wastes, ranging from high sulfur coals to municipal solid wastes Over 3,500 hours of boiler Gasification Technology ROTARY CASCADING BED COMBUSTOR Four-phased approach to building a Waste to Energy Material Recovery Facility
Capacity ranging: 80,000 up to 100,000 L/day The water pretreatment and purification process include UV sterilization, water ozonation, deionization, reverse osmosis and water distillers. e ast e lectric c ompany customize the specific design, select the right equipment and construct the potable water shop In addition to the waste to power plant, a potable water bottling equipment system may be constructed in order to produce high quality water. Potable Water Bottling Plant
Commercial Risks : Commercial Risks : Construction risks - 0 Operating risks depends on managers Fuel risks - 0 Market risks - 0 Currency related risks - 0 Environmental risks - 0 Political risks Political risks: Adverse changes in law Inflation Expropriation Identifying local legal risks Identifying local legal risks: Choice of law Government guarantees Currency convertibility Changes in taxes and duties Force majeure Country risk Adequacy of national.regulatory framework Overview of various risks:
Project Financing Project Financing The Project Financing is an eec s obligation as Financial Advisor. Project Financing The Investors Project Financing must be secured by the local administration – government or, as usually, munici- pality that assign the service and acquire social effect for their people and eco-environment improvement for the whole people of the world. Guarantees Guarantees: The waste treatment projects usually require comprehensive environmental study - long-term screening of the waste, collection, transport and landfill; engineering design and financial project,plus cash down prepayment prior to order and supply the equipment and build the shop. 1. Financing Guarantee: Secure the Investors preliminary expenses in 16 – 20% of the Project value. 2. Equity Guarantee: Secure 100% of the equipment and other acquisitions – the ownership and the conditions of right operation that returns the investment with the interests and earns the planed profit.
Project Financing Requirements to Sponsor (Investor) for Provision of Project Financing (General accepted rules) Specific know-how and experience of Sponsor Strong commitment of Sponsor; contribution of own funds of at least 15-30%.of total Investment Sound financial structure with adequate risk sharing between parties Sponsor holds majority in Project Company, or has at least major influence.on decision-making Project implementation and operation phases are supervised by Sponsor Sponsor is involved in management of Project Company Financially viable project Proven technology Sponsor / Investor
Guarantees Requirements to Municipality (Government) for Provision of Guarantees (Particular required rules for municipal waste collection & utilization) 1 st Financing Bank Guarantee: Letter of Indemnity issue to its Servicing Bank or to Municipality Bank or through these banks to Central Bank as security and application to issue Bank Guarantee certifying whereby its promise and recognizance to pay the noted amount if the Beneficiary fails to do that on specified dates. Municipality / Government 2 nd Equity Guarantee: (i) Contract stipulating supply of equipment and operation; and (ii) Pledge of said Equipment for the benefit of Issuing Bank on each stage, single completed, of development of the Project. NOTE. In case the Municipality is not in a position to guarantee its Project, eec may arrange for and provide a sponsor to do so, or involve its own security for the bene- fit of the Project Company on venture-capital investment bases. This will expensive the Projectthe initial fees and operating costs.
The typical amount of net energy that can be produced per ton of municipal waste is about 0.67 MWh of electricity. Thus about 600 tons per day of waste will produce about 17 MW of electrical power each day through combustion. Benefits and costs 1 ton of municipal waste 0.67 MWh of electricity
A new direction in Public-Private Investment Partnership forging constructive, cost effective and environmentally sound alliances between government and industry for: The comprehensive management and reuse of municipal and industrial waste The clean efficient utilization of high sulfur and waste goals with non-recyclable spent resources in the generation of industrial power; both process steam and co generated electricity. BenefitsBenefits
No increased waste disposal costs for the taxpayer. A community can have a comprehensive waste management system; including minimization; recycling, reuse, waste to energy, and landfill reduction elements; at cost competitive with those of unacceptable mass collection/landfill disposal operations. Up to 70% diversion of materials from landfills with the productive use of those diverted materials; first in reuse needs and secondly through clean waste to energy applications. Almost total diversion rates with the conversion of composts, ashes, sewer sludges and yard wastes into natural fertilizers. Increased industrial competitiveness – preserves and protects jobs. Municipal & Community Benefits
Industry can continue to burn lower cost regional coals, including waste grades. Energy costs can be lowered through the use of throw-away wastes as productive fuels. Continued low energy costs protect competitiveness and jobs. Proof that a cleaner environment can economically coexist with continuing low industrial energy costs. Industry Benefits
Reduce land contamination. Practical and affordable recycling and reuse programs will keep a high proportion of waste out of landfills. Substantially lower dependence on landfills. Reduce land contamination. Practical and affordable recycling and reuse programs will keep a high proportion of waste out of landfills. Substantially lower dependence on landfills. Reduce air contamination. Reduce air contamination. Protect resources. Productive reuse of waste resources means lower rate of use of new resources. Protect resources. Productive reuse of waste resources means lower rate of use of new resources. From maximizing the economic use of spent resources to clean utilization of the huge supplies of problem & waste coals; industrial/municipal economics and the environment become friendlier rather than increasingly adversarial. From maximizing the economic use of spent resources to clean utilization of the huge supplies of problem & waste coals; industrial/municipal economics and the environment become friendlier rather than increasingly adversarial. Promote natural fertilizers to replace chemical based ones. Combine yard wastes, ashes, composts and sewage sludges with nutrients to produce natural fertilizers, fills and soil extenders. Promote natural fertilizers to replace chemical based ones. Combine yard wastes, ashes, composts and sewage sludges with nutrients to produce natural fertilizers, fills and soil extenders. Environmental Benefits
eec e ast e lectric c ompany, LLC. Our whole experience is at your service. We hope you will make use of it. We should appreciate the opportunity of showing how efficiently we can serve you. If we can answer any questions, we shall be glad to do so. Thank you for your time