Investment proposal for sustainable energy project


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International Sustainable Energy Group (ISEG) is looking for financial partners for its 150 MW geo-thermal power project in Djibouti. Contact to know more.

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Investment proposal for sustainable energy project

  1. 1. Investment Proposal for Sustainable Energy Project (Geo Thermal Power) Mr. Ranjan Bhattacharyya International Sustainable Energy Group (ISEG)
  2. 2. Djibouti Snapshot <ul><li>Erstwhile French Colony, independent since 1977 </li></ul><ul><li>Has strong ties with France and the US. Djibouti hosts the only US military base in sub-Saharan Africa. </li></ul><ul><li>Population : 757,074 </li></ul><ul><li>Government : Presidential form of democratic government </li></ul><ul><li>President : Ismail Omar GUELLEH </li></ul><ul><li>Djibouti occupies a strategic geographic location at the mouth of the Red Sea and serves as an important trans-shipment location for goods entering and leaving the east African highlands. </li></ul>
  3. 3. Djibouti Geographical Location
  4. 4. Djibouti - Problems <ul><li>Djibouti has experienced relatively minimal impact from the global economic downturn, but its reliance on diesel-generated electricity and imported food leave average consumers vulnerable to global price shocks. </li></ul>
  5. 5. Djibouti - Opportunities <ul><li>Natural resources include potential geothermal power, gold, clay, granite, limestone, marble, salt, diatomite, gypsum, pumice, petroleum </li></ul><ul><li>The proposed geo thermal power plant along with ancillary project of growing food on sustainable basis can prove to be of great benefit to the country and hence is likely to enjoy the full support of the government </li></ul>
  6. 6. Project Objectives <ul><li>Bring sustainable and affordable power to a power-deficit area giving a thrust to economic growth and development </li></ul><ul><li>Ancillary project of growing food using the available water and land </li></ul>
  7. 7. Project Highlights <ul><li>Project for putting up 150 MW Geo Thermal Power plant in Djibouti </li></ul><ul><li>Formal agreement for exploration and development of geothermal resources for 25 years signed with the Government of Djibouti </li></ul><ul><li>Study carried out by team from Indian Institute of Technology (IIT), Mumbai </li></ul><ul><li>Proposal to provide clean power at US 10 cents per KW as against US 35 cents per KW (diesel power) at present </li></ul>
  8. 8. Geo Tectonic Plates
  9. 9. Landscape at site
  10. 10. Market <ul><li>Djibouti </li></ul><ul><li>Other countries in North Africa (for excess power) </li></ul>
  11. 11. Marketing <ul><li>Agreement signed for 25 years with Government of Djibouti for exploration and development of geo-thermal resources </li></ul><ul><li>Power Purchase Agreement to be signed at the time of finalization of Financial Partners </li></ul>
  12. 12. Project Status <ul><li>Agreement signed with government </li></ul><ul><li>Studies carried out by team of scientists from IIT, Mumbai </li></ul><ul><li>Site Selected </li></ul><ul><li>Financial partners to be finalized by June, 2011 </li></ul><ul><li>Phase 1 needs to commence by July 2011 </li></ul>
  13. 13. Financial Targets <ul><li>Production starts by 2 nd year </li></ul><ul><li>Break even by 5 th year </li></ul><ul><li>5 th year revenues : USD 100 million </li></ul>
  14. 14. Total Investment <ul><li>USD 440 million </li></ul><ul><ul><li>As equity from private investment groups : USD 40 million </li></ul></ul><ul><ul><li>As loan (at 4% p.a.) from African Development Bank : USD 300 million </li></ul></ul><ul><ul><li>From internal accruals : USD 100 million </li></ul></ul>
  15. 15. Equity Investment <ul><li>USD 40 million (in 3 tranches viz. 10, 20 and 10) </li></ul><ul><li>Equity stake – negotiable </li></ul><ul><li>Valuation parameters : position as sole provider of geo-thermal power in Djibouti for 25 years, total revenues and profits over 25 years </li></ul><ul><li>Exit routes : </li></ul><ul><ul><li>Future listing on international stock exchange(s) </li></ul></ul><ul><ul><li>M & A </li></ul></ul>
  16. 16. International Sustainable Energy Group <ul><li>International team of experienced entrepreneurs consisting of geologists, geophysicists, engineers, finance and legal professionals </li></ul>
  17. 17. For further information <ul><li>Contact Mr. Ranjan Bhattacharyya </li></ul><ul><ul><li>Email : [email_address] </li></ul></ul>Thank you !