Project Overview:
• The Project EOS is a ready-to-build wind park in the East of Romania with a capacity of 64 MW (32 wind towers). All required permits are secured.
• The planned wind park will be equipped with Vestas V90 (change to V100 possible) turbines with an output of 163,575 MWh at 2,556 full load hours / year under the P50 scenario.
• Binding offers with suppliers for equipment and full-service contracts have been negotiated. Land for the wind park has been acquired and is owned by developer.
• The wind park could be operational by end 2014 and benefit from the favorable tariff and Green Certificate system which allows for revenues of approx. EUR 145.57 / MWh.
• Project EOS qualifies for significant subsidies in a total amount of EUR 18mn, which have already been granted.
• Romania is attracting significant investments in wind farms with a confirmed project pipeline of 4,316 MW until 2014, among them CEZ, Iberdrola, GDF Suez and EDP.
Proposed Transaction:
100% sale of shares to the investor for EUR6.4mn (in return for Permits+Land+Technical Analysis+Grid Connection). The investor will need to invest an additional EUR83mn to buy/erect the wind turbines, less EUR18mn EU subsidy.
Investment Considerations:
Romania offers very favorable conditions for wind park investments
• Significant increase in wind power capacities required to meet EU targets and National Action Plan
• Attractive environmental conditions in terms of wind speed
• High revenues secured by legal minimum feed-in tariff and Green Certificates trading
Project EOS is at ready-to-build status and may be operational in 2014
• All required permits secured
• Land acquired
Project EOS qualifies for significant subsidies
• National Romanian subsidy EU-funds of EUR 18mn granted
Total Cash Flows of approx. EUR 330mn
• Project generates a total free cash flow of EUR 330mn over its 20-years lifetime.
• Total estimated remaining investment costs of EUR 82.9mn not including the subsidy.
• High Free Cash Flows of more EUR 15.0mn p.a. throughout project lifetime.
• Limited investment cost risks: binding offers for wind park equipment; full service contracts ready to sign.
Years Revenue EUR Free Cash Flow EUR
2014 4mn 3.1mn
2015 23.1mn 18.3mn
2016 25.3mn 20.0mn
2017 25.9mn 20.4mn
For further information, contact:
Phoenicia Capital Advisory
Paul Kazarian
+96171509506
[email protected]