Financials
The total cost of the project is estimated at US$2 billion, to be disbursed in phases. Phase I requires about US$850million for the construction of a 50,000 bpd refinery and the support facilities, for eventual expansion to 200,000 bbl per day. The initial cost of Phase I has been carefully crafted to ensure maximum efficiency in the utilization of funds to achieve the desired objectives. Ventech Engineers Inc. can provide a total breakdown of the costs involved and also the needed performance bond to guarantee quality of the materials and construction of the refinery.
Our financial computation is based on the estimated income from sales of refined products on the international market while operating cost has been calculated with the local operating variables (cheap labour, government Incentives, tax holidays and feedstock discount) taken into consideration. A full financial analysis is available on request. Our estimated profit margin is about 18% of sales, based on initial construction of 50,000 bbls per day or 18 million metric tones of refined petroleum products annually.
As a multi–functional financial organization, we are confident that our projections provide a solid basis for raising the required finance. Our request is for a US$2 billion term loan. Our proposal falls within the scope of modern day vision of money progressive organization for financing/investment proposals.
Financing Structure:
| (a) | Loan/Investment Amount | US$2 billion |
| (b) | Tenure | 10 years less moratorium period |
| (c) | Moratorium | 3 years to allow for construction |
| (d) | Interest Rate | negotiable |
Other Funding/Investment Incentives:
| (e) | Negotiated equity holding and share of operating profit once the refinery is on stream. |
| (f) | Three executive board position and three management representatives in the daily operations of the refinery. |
| (g) | Negotiated contracts during construction period. |
| (h) | Negotiated perpetual equity holding after full amortization of the loan. |
Collateral:
| (i) | Receivables from refined products off-takers (usually by an irrevocable standby letter of credit from a prime bank, on funding confirmation). |
| (j) | Personal guarantees of local directors. |