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EURO-IN Team of Experts assists  Applicants  in the assessment of applications for project  finance guarantees by OeKB -Österreichische Kontrollbank AG. Membership of  jet2euroweb Community is required.
We publish hereunder the Guidelines and the checklist issued by OeKB:

Project Finance

The number of investments in the production and especially in the infrastructure sector carried out on a project finance basis has increased in recent years.

As a consequence traditional securities, such as sovereign guarantees or bank guarantees, may not be available. In many emerging markets these securities, although available, may not be regarded as sufficient.
Transactions carried out on a project finance basis do not rely on a typical "bankable" security i.e. recourse to a foreign government, financial institution, or established corporation . The main security is the anticipated cash flow, which is generated from future proceeds of the project.

OeKB's experience in the field of project finance

OeKB has gained experience in this complex field over the last three decades. Since 1979 OeKB has had its own department for project evaluation and analysis, and has assessed about 270 projects to date.
During the last years some dozen commitments for projects amounting to more than USD 3.0 billion were issued.

We operate on a world-wide basis and all important sectors of economic activity are eligible for cover. In the past there has been a focus on particular sectors related to the core competences of Austrian industries, such as tourism (hotels), power, pulp and paper, metal industry, and infrastructure (rolling stock). Most of the projects we evaluated were implemented in Central and Eastern Europe, the former Soviet Union, but also in OECD-countries as well as in South East Asia.

Available Services and Framework Conditions

On request, OeKB issues preliminary indications of support also in the earlier stages of a project.
There is no general lower or upper limit for OeKB's participation in project finance transactions.

In case of "multisourcing", when different Export Credit Agencies, international financial institutions, and commercial banks are involved, we are strongly committed to an extensive exchange of information and to an active cooperation with all parties involved in the risk assessment procedures and the overall evaluation.

A special requirement for our participation is that the origin of goods or services must be predominantly Austrian (60-70%), resulting in a positive effect on the Austrian current account balance.

Costs of project evaluation including fees for consultants will be borne by the applicant.
The regulations of the OECD Consensus for officially supported export credits as well as new OECD-rules for project finance are applicable.

OeKB - Your partner in project finance - Contacts
Information required for the assessment of applications for project finance guarantees - Checklist.
With its guarantees and export finance system OeKB is at your disposal for sharing project risks.

© Copyright by OeKB, Disclaimer, public.realtions@oekb.co.at


Checklist

Information required for the assessment of applications for project finance guarantees

Short description of each project sponsor: recent history, dates of formation, type of company,ownership, subsidiaries, main fields of activity, balance sheet.
Data on the experience of each sponsor in the target country and in the field of the project.
Strategic aims with regard to the project concerned.

Set of audited accounts for the last 3 years of each sponsor. In addition, for projects in already existing plants, comprehensive and structured details about revenues (if necessary, revenues from foreign exchange, broken down into non-convertible and convertible currencies; statistics on customers, countries, and export goods), expenses (in detail; if necessary, outlay of foreign exchange, to be listed separately if currencies are not convertible) of the last 3 years and forecasts for the next 5 years are required.

Summary of the project concerned including name, place, purpose, type of organisation, ownership, equity provided, structure of collateral, legal situation, local partners, marketing, financing (see attached form "project description").

Characterisation of the role of the host country. For projects in countries with not fully convertible currency, description of measures proposed to avoid transfer risk (escrow account?).

Schematic description of the contractual structure and the most substantial contractual connections and collateral already arranged/to be arranged.

List of references of the general contractor and the most important suppliers, respectively, as far as known; list of references of comparable projects to show the successful use of the specific technology and experience in the target country or continent.

Information on operating/managing company:

recent history, ownership, main fields of activity, list of references, evidence of relevant experience in field of activity and target country, respectively.

Independent feasibility study describing the economic and financial soundness and the political and environmental acceptability of the project; information about the competence of the experts chosen (with regard to field of activity and geographical area, e.g. list of references).

If not already included in the feasibility study, the following information should be provided
technical description, flow sheet, lay-out
detailed derivation of estimated operational costs (details of prices and quantities)
procurement of raw materials and supplies, availability of auxiliary material, relevant contractual documents
description of the management, training of personnel, costs and qualifications of personnel
environmental aspects, environmental impact assessment
discussion of height and appropriateness of the project value/risks with regard to time and cost overruns
time table of construction and start-up, milestones
market information on products of the project, including development of prices and sales volumes over the last 5 to 10 years, competitive situation, current and future situation of supply and demand; forecasts, identification and geographical location of the main customers; marketing and distribution strategies; description of marketing activities planned and market-ing contracts/offtake guarantees, take or pay-agreements
detailed list of project costs broken down into the main categories of costs of construction and start-up, interest over construction period, working capital
planned sources of funding, incl. funding institution, amount, currency, time and form of input
cash flow forecast for the pay-back-period of the loan guaranteed (incl. sensitivity analysis; basic = realistic case, optimistic case, negative = pessimistic case), statement on the cover of possible cash deficits
assumptions as basis for the cash flow forecast incl. basis for sales volume and prices, operating and administrative costs, depreciation, taxes, inflation, changes of exchange rates, export licenses, influence of the local government



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