Financing Analysis of Shajiao B Power Plant Project in Shenzhen

Shajiao B Power Plant Construction Project

Hehe Electric Power (China) Co., Ltd., a joint venture between Hehe Industrial Co., Ltd. and Shenzhen Special Economic Zone Electric Power Development Company, built Shajiao B Power Plant in Dongguan, Guangdong. The capacity of the power station is 2350MW, and the cooperative operation period is 10 year (1April 9881~1March 3 9981). During the cooperative operation, Hopewell Company will operate completely independently. After the operation period is terminated, the power plant will be handed over to Shenzhen Electric Power Development Company.

The investment of Shajiao B Factory is entirely raised by Hopewell Company, with a total investment of HK$ 3.204 billion. According to the current exchange rate 1: 0.28, it is equivalent to RMB 897 million. By the beginning of the cooperative operation period on April 1988, the total investment with interest and interest was HK$ 356,543,880,800, equivalent to RMB 985 million. Hehe Company accounts for 55% of the investment, and Chinese investment accounts for 45%. During the construction period, China first provided RMB 250 million at a preferential interest rate of less than 7.5% per year, and Hopewell Company claimed to lend to international syndicates at an interest rate of 10.5%. The main contract terms are as follows:

1. The power development company guarantees that the electricity purchased from Shajiao B Plant shall be no less than 91980,000 kWh every quarter and no less than 3.679 billion kWh in the whole year (equivalent to more than 5,600 hours of annual operation). The on-grid tariff is 0.4 1 HK$/kWh, and the power development company pays 50% in RMB and HK$ respectively. The electricity price will remain unchanged during the cooperation period.

2. The electric power development company guarantees the coal supply of Shajiao B power plant, which is designated as Shanxi Tongyan coal, with a low calorific value of not less than 5 173 kcal/kg, and it is put into use in a balanced manner on time according to the power generation needs, and the coal price is 90 yuan/ton. The annual total is not less than 6,543,800 tons. During the cooperative operation, the coal price will remain unchanged.

Electricity price and coal price will remain unchanged. If there is any change, all losses will be subsidized by the electric power development company. When coal can't meet the demand, it is purchased from abroad, and all the increased costs are borne by the power development company.

4. Profit distribution: In the first 7.5 years of the cooperation period, 65,438+000% of the profits will go to Hehe Company, and in the second 5 years, Hehe Company will account for 80% and electric power development company will account for 20%.

5. Power generation in advance during the construction period, and all the income belongs to Hehe Company. If the construction period is delayed, Hopewell Company will only be responsible for repaying the loan on time, and the cooperative operation time will be shortened accordingly.

6. The financing, design, ordering, construction and operation of Shajiao B Factory are all contracted by Hopewell Company, and China does not participate in the decision-making of the board of directors.

7. The land and water resources of Shajiao B Factory are provided by the power company free of charge.

8.1993 shall be exempted from tax before April, and income tax shall be levied at 7.5% thereafter. All imported materials are duty-free.

9. Hopewell Company will not be responsible for generating more or less power for whatever reason before the loan is paid off. Due to the operation of Shajiao B Factory, Hopewell Company is short of cash, and China will make up for it without interest.

10. Shajiao B Factory meets the power grid dispatching.

1 1. After the cooperation expires, Shajiao B Factory will be handed over to the electric power development company.

At the same time, the calculated internal rate of return is 13.5%, and Ta=9.47 years.

All the equipment was contracted by Mitsui Group of Japan, with the quoted price of HK$ 2.3 billion and the actual amount of HK$ 654.38+08 billion. The construction period of 33 months is actually 22 months. Moreover, the electricity fee income during this construction period will not be depreciated, and at least 500 million Hong Kong dollars will be earned in excess profits. Due to the lack of electricity in Guangdong, the annual online electricity consumption exceeds 4 billion kWh, the annual operation hours exceed 6,000 h, and the annual electricity consumption is 325,438+0 billion kWh.

Please analyze the benefits of this investment scheme and judge the authenticity of IRR and T, and what lessons should we learn from it?

And please continue to follow the later development of the power plant.

I. Project background

Shajiao Power Plant is located on the east bank of the Pearl River Estuary, near Shenzhen Bay. The power plant is adjacent to Shajiao B Power Plant and Shenzhen economy.

SEZ Power Development Company (predecessor of Shenzhen Energy Group Co., Ltd.) and Hehe Power (China) Co., Ltd. were jointly established in 1985, and officially put into commercial operation in 1988. The installed capacity is 2 * 350,000 kilowatts. The boiler and its auxiliary equipment are manufactured by Toshiba Corporation of Japan.

1In August, 1999, Hehe Power (China) Co., Ltd. officially handed over the power plant to Shenzhen Guangshen Shajiao B Power Co., Ltd., and the shareholders were Shenzhen Energy Group Co., Ltd. (holding 64.77%) and Guangdong Electric Power Group Co., Ltd. (holding 35.23%). On June 5438+ 10, 2002, Guangdong Electric Power Group Company publicly auctioned its 35.23% shares, and Guangzhou Development Industrial Holding Group Co., Ltd. set the highest transaction record in the auction history of China with the transaction price of/kloc-0.4 billion yuan!

Second, the project data collation

The cooperative operation period is 10 year (1April 19881~1March 3, 19981).

The total investment with principal and interest is HK$ 3,565,438 million+008 million, equivalent to RMB 985 million (exchange rate 65.438+0: 0.28). Zhonghe Company accounts for 55% of the investment, that is, HK$ 654,380+09.36 million, and Chinese investment accounts for 45%.

During the construction period, China provided RMB 250 million at a preferential interest rate of less than 7.5% per year, and the rest of the funds claimed to be lent to international syndicates at the interest rate of 10.5%.

The on-grid tariff is 0.4 1 HKD/kWh.

Coal price 90 yuan/ton. The annual total is not less than 6,543,800 tons.

Profit distribution: In the first 7.5 years of the cooperation period, 65,438+000% of the profits go to Hehe Company, and in the second 5 years, Hehe Company accounts for 80% and Power Development Company accounts for 20%.

1993 shall be exempted from tax before April, and income tax shall be levied at 7.5% thereafter.

All the equipment was contracted by Mitsui Group of Japan, with the quoted price of HK$ 2.3 billion and the actual amount of HK$ 654.38+08 billion. The annual online electricity consumption exceeded 4 billion kWh.

Third, the project cost estimation basis

The annual operating costs of thermal power plants include fixed annual operating costs and fuel costs.

(1) Fixed annual operating expenses: including major repair expenses, maintenance expenses, materials expenses, wages, water charges (cooling water, etc.). ) and the administration of thermal power plants. The above expenses can be calculated according to the relevant statistical data of the power industry and the specific situation of this power station. Because the steam turbine generator set, boiler, coal conveying, power transmission, crushing, combustion and ash removal systems in thermal power plants are more complicated and equipped, the number of operation and management personnel is several times more than that of hydropower stations with the same installed capacity. In the absence of data, the fixed annual operating cost of thermal power plants can be estimated to be about 5% of its cost.

(2) Fuel cost: The fuel cost of thermal power plants is mainly related to the annual power generation (kWh), the standard coal consumption per unit power generation (kg/kWh) and the ex-factory standard coal price (RMB/kg). In 1990s, the average coal consumption was about 390g/kWh.

The equipment depreciation expense is generally about 5% of the total investment.

Fourth, the project cost estimation

The annual equal repayment is:

0.075( 10.075) 10

A18.931.301billion10 (10.075)1

0. 105( 10. 105) 10

A110.4265438+73.2 million10 (10.105)1.

The annual repayment amount is AA1A 21.301.7323033 million Hong Kong dollars.

When the coal consumption is 390g/kWh and the annual power generation is 4 billion kWh, the coal consumption is 65.438+0.56 million tons. The amount of coal provided by China every year is not less than 6.5438+0.6 million tons, that is, coal transportation loss. If the coal price is 90 yuan/ton, the coal consumption cost is 65.438+44 billion yuan, that is, 56.5438+43 billion Hong Kong dollars.

Equipment depreciation/kloc-HK$ 0/100 million, water fee of HK$ 30 million and employee welfare of HK$ 20 million.

Annual operating expenses of the power plant (* * * 65438+HK$ 74 million): 50 million for fixed assets,120,000 for operators, 0.2 million for insurance and 60 million for maintenance. Other expenses are 50 million.

Verb (abbreviation of verb) calculation of cash flow

Total investment: HK$ 6543.8+93.6 million.

Cost of electricity sales:11.41.60 million Hong Kong dollars.

In the first 7.5 years, the income from electricity sales was 65,438+000%: the electricity fee was 0.465,438+0 HKD/kWh, and the online electricity consumption was 4 billion kWh/year, totaling 654.38+64 million HKD/yr.

After 2.5 years, the revenue from electricity sales accounts for 80%:16.480%13.1200 million.

10.23 billion income tax collected from the fifth year to the seventh and a half years: 16.47.5%.

Income tax in recent 2.5 years:1312× 7.5% = 98.4 million.

Net cash flow chart (unit: HK$ billion)

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Technical and economic analysis of intransitive verbs

1. Static payback period method

Through the net cash flow chart, the static capital recovery period

Tak/r19.36 (16.45438+01.416) 3.88 years.

Far less than 9.47 years given in the case, Hopewell Company can recover the investment amount soon.

law

Calculate the internal rate of return through matlab program;

a=solve('4.984/(x+ 1)^ 1+4.984/(x+ 1)^2+4.984/(x+ 1)^3+4.984/(x+ 1)^4+4.984/(x+ 1)^5+3.754/(x+ 1) ^6+3.754/(x+ 1)^7+2.237/(x+ 1)^8+0.72/(x+ 1)^9+0.72/(x+ 1)^ 10- 19.36=0','x')

Available a = 0.17451775484151740120462.

Therefore, IRR= 17.45%.

It is nearly 4% larger than the 13.5% given in the case, and the profitability of the scheme is considerable.

Seven. summarize experience

Hopewell Company of Hong Kong has implemented BOT operation mode in Shajiao B Power Plant, which has achieved great benefits and is a successful case of power project investment. Mainly reflected in:

1. In the cooperative operation between Hehe Company and China, both parties bear the investment risks. In this case, in the investment of Shajiao B Power Plant, China only paid 250 million yuan as a loan for its subordinate projects, providing assets with low technical content such as land, building materials and workers in exchange for advanced equipment management, advanced talent management and advanced production technology of Hong Kong Hehe Power Company, and both sides reached a level of mutual benefit and win-win.

2. During the cooperative operation period, the power plant provided 1 1 10,000 kWh of electricity to the power grid every day, which was equivalent to more than 10 times of Shenzhen's daily electricity consumption at that time, which greatly ensured the power supply in the Pearl River Delta and became an indispensable power industry in the Pearl River Delta region.

3. The construction and operation of this power plant have been supported by the government. No matter in terms of funds or resources, China has guaranteed Hehe Company in the form of contract, so that Hehe Company can give full play to its technical and management role in the construction and operation of power plants.

Eight. Subsequent development

1After the cooperation period ended in April, 1998, Shajiao B Power Plant was handed over to China. The operation mode of the power plant, especially the renewal of equipment, technology and management concept, has made the power plant get greater development.

Chapter II: Analysis Report on the Investment Case of Shajiao B Power Plant

Hehe Electric Power (China) Co., Ltd., a joint venture between Hehe Industrial Co., Ltd. and Shenzhen Special Economic Zone Electric Power Development Company, built Shajiao B Power Plant in Dongguan, Guangdong. The capacity of the power station is 2350MW, and the cooperative operation period is 10 year (1April 9881~1March 3 9981). During the cooperative operation, Hopewell Company will operate completely independently. After the operation period is terminated, the power plant will be handed over to Shenzhen Electric Power Development Company.

The investment of Shajiao B Factory is entirely raised by Hopewell Company, with a total investment of HK$ 3.204 billion. According to the current exchange rate 1: 0.28, it is equivalent to RMB 897 million. By the beginning of the cooperative operation period on April 1988, the total investment with interest and interest was HK$ 356,543,880,800, equivalent to RMB 985 million. Hehe Company accounts for 55% of the investment, and Chinese investment accounts for 45%. During the construction period, China first provided RMB 250 million at a preferential interest rate of less than 7.5% per year, and Hopewell Company claimed to lend to international syndicates at an interest rate of 10.5%. The main contract terms are as follows:

1. The power development company guarantees that the electricity purchased from Shajiao B Plant shall be no less than 91980,000 kWh every quarter and no less than 3.679 billion kWh in the whole year (equivalent to more than 5,600 hours of annual operation). The on-grid tariff is 0.4 1 HK$/kWh, and the power development company pays 50% in RMB and HK$ respectively. The electricity price will remain unchanged during the cooperation period.

2. The electric power development company guarantees the coal supply of Shajiao B power plant, which is designated as Shanxi Tongyan coal, with a low calorific value of not less than 5 173 kcal/kg, and it is put into use in a balanced manner on time according to the power generation needs, and the coal price is 90 yuan/ton. The annual total is not less than 6,543,800 tons. During the cooperative operation, the coal price will remain unchanged.

Electricity price and coal price will remain unchanged. If there is any change, all losses will be subsidized by the electric power development company. When coal can't meet the demand, it is purchased from abroad, and all the increased costs are borne by the power development company.

4. Profit distribution: In the first 7.5 years of the cooperation period, 65,438+000% of the profits will go to Hehe Company, and in the second 5 years, Hehe Company will account for 80% and electric power development company will account for 20%.

5. Power generation in advance during the construction period, and all the income belongs to Hehe Company. If the construction period is delayed, Hopewell Company will only be responsible for repaying the loan on time, and the cooperative operation time will be shortened accordingly.

6. The financing, design, ordering, construction and operation of Shajiao B Factory are all contracted by Hopewell Company, and China does not participate in the decision-making of the board of directors.

7. The land and water resources of Shajiao B Factory are provided by the power company free of charge.

8.1993 shall be exempted from tax before April, and income tax shall be levied at 7.5% thereafter. All imported materials are duty-free.

9. Hopewell Company will not be responsible for generating more or less power for whatever reason before the loan is paid off. Due to the operation of Shajiao B Factory, Hopewell Company is short of cash, and China will make up for it without interest.

10. Shajiao B Factory meets the power grid dispatching.

1 1. After the cooperation expires, Shajiao B Factory will be handed over to the electric power development company.

At the same time, the calculated internal rate of return is 13.5%, and Ta=9.47 years.

All the equipment was contracted by Mitsui Group of Japan, with the quoted price of HK$ 2.3 billion and the actual amount of HK$ 654.38+08 billion. The construction period of 33 months is actually 22 months. Moreover, the electricity fee income during this construction period will not be depreciated, and at least 500 million Hong Kong dollars will be earned in excess profits. Due to the lack of electricity in Guangdong, the annual online electricity consumption exceeds 4 billion kWh, the annual operation hours exceed 6,000 h, and the annual electricity consumption is 325,438+0 billion kWh.

Please analyze the benefits of this investment scheme and judge the authenticity of IRR and T, and what lessons should we learn from it?

And please continue to follow the later development of the power plant.

I. Introduction to the project background:

Shajiao Power Plant is the largest thermal power base in southern China, with a total installed capacity of 3.88 million kilowatts. The power plant is located on the east bank of the Pearl River Estuary, near Shenzhen Bay. This power plant is composed of three adjacent plants, A, B and C. Shajiao B power plant discussed and analyzed in this paper is the only one and the first one in China to adopt BOT (Build-Operate-Transfer) cooperation mode. The following is the exterior view of Shajiao B Power Plant:

As we all know, Shenzhen, as the vanguard of China's reform and opening-up, once created the world-renowned "Shenzhen Speed" in economic development. But in the development of China in the past 30 years, it is more important to play a role.

The role of test points. Many advanced international cooperation models and development models are tested here, such as the BOT cooperation model of Shajiao B Power Plant (our group thinks this business model is similar to "borrowing chickens to lay eggs"):

Shajiao B Power Plant was jointly built by Shenzhen Special Economic Zone Power Development Company (predecessor of Shenzhen Energy Group Co., Ltd.) and Hehe Power (China) Co., Ltd. in 1985, and officially put into commercial operation in 1988. The installed capacity is 2 * 350,000 kilowatts. The boiler and its auxiliary equipment are manufactured by Toshiba Corporation of Japan.

1In August, 1999, Hehe Power (China) Co., Ltd. officially handed over the power plant to Shenzhen Guangshen Shajiao B Power Co., Ltd., and the shareholders were Shenzhen Energy Group Co., Ltd. (holding 64.77%) and Guangdong Electric Power Group Co., Ltd. (holding 35.23%). On June 5438+ 10, 2002, Guangdong Electric Power Group Company publicly auctioned its 35.23% shares, and Guangzhou Development Industrial Holding Group Co., Ltd. set the highest transaction record in the auction history of China with the transaction price of1400 million yuan!

Second, the project investment structure:

Shajiao B Power Plant in Shenzhen adopts Sino-foreign cooperative operation mode, and the cooperation period is 10 year. History of both parties to the joint venture: Shenzhen Special Economic Zone Electric Power Development Company (Chinese side) and Hehe Electric Power (China) Co., Ltd. (foreign side, a company registered in Hong Kong and specially established for this project). During the cooperation period, the foreign party is responsible for arranging and providing all foreign exchange funds for the project, organizing the project construction and operating the power plant 10 year. After deducting the project operation cost, coal cost and management fee paid to the Chinese side, the foreign party gets all the project benefits. After the cooperation expires, the foreign party will transfer the ownership and control of the power plant to the Chinese side free of charge and withdraw from the project.

Total investment: HK$ 4.2 billion (US$ 539.6 million at the exchange rate of 1986). Project loan composition: fixed-rate yen export credit of Export-Import Bank of Japan is 26140,000 USD; The European yen loan of the international loan consortium is $55.6 million;

A loan of HK$ 75 million from the international loan consortium;

China Shenzhen Special Economic Zone Electric Power Development Company has a RMB loan of US$ 92.4 million.

Financing methods: including equity funds, subprime loans and project loans, as shown in the following table.

According to the arrangement of the cooperation agreement, in the Shajiao B power plant project, all foreign exchange funds except the above-mentioned RMB funds will be arranged by Hong Kong Hehe Power (China) Co., Ltd.

Three. Project participants and their relationships

The Chinese side (Party A) and the Hong Kong side (Party B) jointly form the project company "Shenzhen Shajiao Thermal Power Plant B Co., Ltd.", which is a cooperative enterprise legal person with the sole purpose of developing the plant B project. Party B is a "special limited company" registered by five enterprises in Hong Kong. As a special tool company (SPY), its sole purpose is to develop the B factory project. ..

During the concession period, Party B shall be responsible for the operation and management of the power plant. Party B first signed a four-year (1986- 1990) power plant operation, maintenance and training management contract with the electric power service company (EPS) jointly established by Britain and the United States. EPS moved the management mode of power plants in Britain and Hong Kong to Shajiao B Power Plant, designed and formulated the management framework and rules and regulations of the power plant, and assisted Party B in recruiting domestic employees, taking charge of on-the-job training and operating power plant equipment. After the withdrawal of EPS, Party B will contract the power plant to Guangdong Electric Power Bureau for operation. One year before the handover date of the contract, Party A contracted the operation of the power plant according to the provisions of the cooperation contract, which laid the foundation for the smooth handover of the power plant and the smooth operation after the handover.

Fourth, the project data calculation

According to the materials, calculated by 1988, the total investment of the project is HK$ 3518 million, of which Hong Kong accounts for 55%, that is, HK$ 654,380,934,900. China accounts for 45%, namely 15438+0 billion Hong Kong dollars. At first, we thought that all the 35180,000 yuan would be repaid by Hong Kong, but after consulting the information on the Internet, we found that in the BOT cooperation mode, non-capital investors are not responsible for financing, that is, all the funds are paid by Hong Kong Hehe Power Company. Therefore, we believe that the amount of loans to be repaid in Hong Kong is HK$ 65.438+93.49 million, of which RMB 250 million, or HK$ 892.85 million, is provided by China, and the annual interest rate of this part is 7.5%. Another HK$ 6,543.8+0,042.05 billion was obtained by Hehe Power Company through various loans from international financial institutions, with an annual interest rate of 6,543.8+0.5%.

Therefore, the annual repayment we get from Hehe Power Company is as follows:

a 1 = 8.93 * 0.075 *( 1+0.075) 10/[( 1+0.075) 10+ 1]= 65438+。

a2 = 10.42 * 0. 105 *( 1+0. 105) 10/[( 1+0. 105) 10]

The equivalent annual repayment amount is A = A1+A2 = HK$ 303.2 million.

According to the cost calculated in the materials, it can be found from the data that each power generation needs to consume 334g, and the coal price is 90 yuan/ton, so the cost per power generation is 0.334*90/ 1000=0.03 yuan. If the exchange rate is 1:0.28, the unit power generation cost is 0.03/0.28.

Therefore, the annual power generation cost is HK$ 440 million, calculated on the basis of 4 billion hours per year.

Calculated by 0.4 1 HK$ per kilowatt hour, the annual gross profit is HK$164 million.