Professional Documents
Culture Documents
A COST ESTIMATES
B ASSUMPTIONS FOR FINANCIAL MODEL
C TRAFFIC AND TOLL RATE PROJECTIONS
D PROJECT TIME TABLE
E FINANCIAL PLAN
F OPERATION AND MAINTENANCE CALCULATIONS
G DEPRECIATION SCHEDULE
H TERM LOAN REPAYMENT
I PROFIT AND LOSS ACCOUNT & WACC
J CASHFLOW, NPV, IRR & EIRR FOR THE PROJECT
K DEBT SERVICE COVERAGE RATIO
L COMMENT ON PROJECT VIABILITY
Instructions
Above mentioned links are provided to navigate through the financial model
Values mentioned in RED color are negative values
Values Mentioned in BLUE Color Are Assumptions Made by the modeler
A
G
COST ESTIMATES
Consultant Fees 2%
Expert Fees (Deployed By State Govt) 1%
Environmental Clearence 5%
Pre Operative Expences 3%
Contingencies 5%
Increase in manpower cost 10%
Cost Of Engineers (Rs.) ###
cost of supervisior (Rs.) ###
Cost of Permenant Staff (Rs.) ###
Cost of Administrative Office 0%
Cost of Construction Toll Plaza 1%
The general Lighting cost of the Bridge is assumed to be covered in the Per Km cost of Bridge
Land will be transferred by the state govt to the developer as free of cost.
TRAFFIC PROJECTIONS
Average Annual Growth Rate 4%
Inflation Rate (Every 3rd Year) 10%
Bridge Length 2.5
Toll Rates
2-Wheelers 7.5
4-Wheelers 10
S.T. Bus 1000
Advertisement Revenue 1%
Inflation rate is also applied to the per annum payment of State Transport Buses
FINANCIAL PLAN
Interest During Construction is payed back quarterly
Moratorium Period is considered as 3 years for both the debts
OPERATION AND MAINTENANCE
Inflation 4%
Operation and Maintenance of Bridge 2%
Periodic Re-surfacing 4%
Increase in Operations of Toll Plaza 10%
Cost of Operating Toll Plazas 5%
DEPRECIATION
Written Down Value Method 15%
Straight line Method 10%
PROFIT AND LOSS ACCOUNT
Minimum Alternative Tax 0%
Corporate Tax 40%
Repayment of the principal for Debt Amount is not considered in the Profit and Loss Account
CASHFLOW
Method of Depreciation considered for preparing the cash flow is Straight line Method
WACC is considered as Discounting rate for Project NPV
Cost of Equity is Considered as Discounting rate for Equity NPV
of total construction cost
of total construction cost
of construction cost
of total construction cost
of total construction cost
Per Annum
Per Annum
Per Annum
Per Annum
of construction cost
of construction cost
m cost of Bridge
Km.
per km
perkm
per vehicle per annum
of Total Vehicular Toll Revenue
every year
of Initial Investment
every 3rd Year
every year
of O&M for Bridge
d Loss Account
COST ESTIMATES
A Assumptions
Consultant Fees 2% of total construction cost
Expert Fees (Deployed By
State Govt) 1% of total construction cost
Environmental Clearence 5% of construction cost
Pre Operative Expences 3% of total construction cost
Contingencies 5% of total construction cost
Increase in manpower cost 10% Per Annum
Cost Of Engineers (Rs.) ### Per Annum
cost of supervisior (Rs.) ### Per Annum
Cost of Permenant Staff (Rs.) ### Per Annum
Cost of Administrative Office 0.50% of construction cost
Cost of Construction Toll Plaza 1% of construction cost
The general Lighting cost of the Bridge is assumed to be covered in the Per Km cost of Bridg
Land will be transferred by the state govt to the developer as free of cost.
A Construction Costs
Description Unit No Length Breadth Height
Land Cost
Site Clearances Sqm. 2 500 20 1
Bridge Construction Km. 1 2.5 1 1
Site Office L.S.
Construction of Toll Plaza L.S. 2
Environmental Clearence L.S.
Total (Bridge Cost)
B Man Power
Period
Description Unit No (Years)
Engineer Persons 4 1
Supervisor Persons 1 1
Permanent staff Persons 2 1
(A+B+C
+D+E) Total Project Cost (In INR)
Per Km cost of Bridge
Amount (INR)
656,000
328,000
984,000
1,177,320
1,962,200
43,570,825
TRAFFIC PROJECTIONS
Assumptions
Average Annual
Growth Rate 4%
rd
Inflation Rate (Every 3
Year) 10%
Bridge Length 2.5 Km.
Toll Rates
2-Wheelers 7.5 per km
4-Wheelers 10 perkm
S.T. Bus 1000 per vehicle per annum
Advertisement Revenue 1% of Total Vehicular Toll Revenue
Inflation rate is also applied to the per annum payment of State Transport Buses
1 2 3 4 5 6
2013 2014 2015 2016 2017 2018
Traffic Projection
2-Wheelers 20000 20800 21632 22497 23397 24333
4-Wheelers 75000 78000 81120 84365 87740 91250
S.T. Bus 1000 1040 1082 1125 1170 1217
7 8 9 10 11 12 13
2019 2020 2021 2022 2023 2024 2025
23 23 23 25 25 25 28
30 30 30 33 33 33 37
1210 1210 1210 1331 1331 1331 1464
33302 34634
124882 129877
1667 1734
28 28
37 37
1464 1464
926795 963864
4570993 4753823
2440488 2538576
79383 82563
8017659 8338826
PROJECT TIME TABLE
Contribution Cost
EQUITY 50%
Private operator 25%
Authority 15%
state government 10%
DEBT 50%
Sub Ordinated 10% 6%
Senior Debt by Senior Lender 40% 10%
Total Project Cost
Senior Sub-ordinated
Proportion of Total Debt 40% 10%
Proportion of Total Debt (Amount in INR) 0 0
Prime Lending Rate 10% 6%
Interest Rate (During Construction Period) 10% 6%
Interest Rate (During Operations Period) 10% 6%
Drawdown Starts 1-Jan-2012 1-Jan-2012
Repayment (years ) 10 10
Repayment per year 1 1
No. of Instalments 10 10
Repayment / Redemption Starts 1-Jan-2016 1-Jan-2016
Repayment / Redemption Ends ### 31-Dec-2025
261425
108927 408476 272318 136159
370352 408476 272318 136159
INTEREST ON SENIOR AND SUB-ORDINATED DEBT
onstruction cost
2024 2025 2026 2027
13 14 15 16
### ### ### ###
###
93234 102558 112814 124095
DEPRECIATION
Assumptions
Method of Depreciation WDM SLM
Rate of Depreciation 15% 10%
Depreciation
Assumptions
Minimum Alternative Tax 0%
Corporate Tax 40%
Repayment of the principal for Debt Amount is not considered in the Profit and Loss Account
REVENUES
Operating Revenues
Toll Revenues ###
Advertisement Revenue 32500.00
WACC 12.50%
the Profit and Loss Account
Assumptions
Method of Depreciation considered for preparing the cash flow is Straight line Method
WACC is considered as Discounting rate for Project NPV
Cost of Equity is Considered as Discounting rate for Equity NPV
2011
0
Depreciation
Initial Investment
Cash Flow
NPV 27,227,476
IRR 2%
EQUITY IRR
Initial Investment ###
Depreciation (SLM)
Principal Repayment
Cashflow ###
NPV 15,785,345
EIRR 4%
The Net Present Value is negative, coupled up with a very low level of Internal Rat
With regard to this we can conclude that the Project is not Viable enough to be tak
The project IRR and NPV not yeilding better results, Equity IRR has been worked ou
w is Straight line Method
###
###
4,357,082.50 ### ### ### ### ###
### ### ###
tive and also the project IRR is also not attractive hence the project is not viable for con
ive and the Internal rate of return of the Equity is Very much Lower than the Cost of Eq
INFERENCES
ery low level of Internal Rate of Return at 2% as compared to the Weighted Average Cost of Capital
not Viable enough to be taken, in accordance with the conditions and assumptions taken for compu
uity IRR has been worked out to check the return on Equity investments
2019 2020 2021 2022 2023 2024 2025
7 8 9 10 11 12 13
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### ###
### ###
### ###
DEBT SERVICE COVERAGE RATIO
DSCR
Average DSCR
2015 2016 2017 2018 2019 2020 2021 2022
3 4 5 6 7 8 9 10
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