SAVE Project

“BEEP - Bankable Energy Efficiency Projects”

BUSINESS

PLAN

FORM

PROJECT:

BUSINESS PLAN FORM

CONTENTSpage

1.Project Summary

1.1.Sponsor

1.2.Project partners

1.3.Brief project description

1.4.Type and amount of finance required

1.5.Expected energy savings per year

1.6.Energy prices (euro)

1.7.Lifetime of the project

1.8.Expected implementation time:

1.9.Summary cash flow analysis

2.Introduction to the business

2.1.Nature of the business

2.2.Strengths of the business

2.3.Risks

2.4.Current situation

2.5.Future plans

3.Nature of the project

3.1.Background to the project

3.2.Scope of the project

3.3.Rationale

3.4.Arrangements for implementation

3.5.Infrastructure background (attach separate sheets if necessary)

3.6.Description of existing energy supplies

4.Benefits

4.1.Energy savings and environmental improvements

4.2.Export promotion

4.3.Import substitution

4.4.Job creation

4.5.Productivity improvements

4.6.Technology transfer

4.7.Management development

5.The sponsor(s)

5.1.Personal details, background and experience of main parties and top management of the project

5.2.Financial data

5.3.Proposed financial contributions and exposure

5.4.Rationale for the involvement of other partners, if any

5.5.Objectives

6.Project costs and timetable

6.1.Project costs

6.2.Basis for the cost estimate

6.3.Sources and dependability (condition and age) of technology and equipment

6.4.Timetable of implementation and disbursements

6.5.Description of agencies in charge of implementing major components of the project and rationale for their selection

6.6.Nature of the contracts with agencies in charge of implementing the project

6.7.Explanation of any cost contingency built into the project costs

6.8.Procurement issues

7.Products, services and market

7.1.Description of products or services to be supplied by the business

7.2.Pricing and costs (breakdown of the cost of materials)

7.3.Market description, location and size

7.4.Type of consumers

7.5.Factors affecting growth in demand

7.6.Financial position of buyers

7.7.Raw material / CHP fuel supply

8.Regulations and environmental information

8.1.Key regulations by public authorities applying to the transaction

8.2.Key permits required for the transaction

8.3.Permit requirements

8.4.Environmental regulations

8.5.Environmental contact person

8.6.The land

8.7.Physical construction activities involved in the project

8.8.Environmental impact assessments or environmental audits carried out for the project

8.9.Potential environmental liabilities, if any

8.10.Proposed environmental mitigation

8.11.Proposed environmental enhancement

8.12.Corporate environmental policy

8.13.Environmental concerns in connection with the project and its associated properties

8.14.Status of public consultation on the project

9.Role of the bank

10.Financing plan

11.Cash flow projections and financial viability

12.Expected energy savings per year

13.Environmental benefits (CO2 reduction, etc.)

13.1.Before CHP

13.2.With CHP

14.Appendixes

Table of contents for a proposal:

  1. Project Summary
  2. Introduction to the business
  3. Nature of the project
  4. Benefits
  5. The sponsors
  6. Project costs and timetable
  7. Products, services and market
  8. Regulations and environmental information
  9. Role of the bank
  10. Financing plan
  11. Cash flow projections and financial viability
  12. Expected energy savings per year
  13. Environmental benefits (CO2 reduction)
  14. Appendixes

1.Project Summary

1.1.Sponsor

1.1.1.Legal name of sponsor

Contact person and location of sponsor

Contact person:
Address:
Country:
Region:
Town:
Tel:
Fax:
E-mail:
Internet (if applicable):

1.1.2.Legal status of sponsor (mark the appropriate box with “X”)

[ ] Sole trader

[ ] Partnership

[ ] Limited liability company

[ ] Joint stock company

[ ] State-owned enterprise or institution

[ ] Local government institution

[ ] Co-operative

[ ] Joint venture

[ ] To be privatised

[ ] Other (specify):

1.2.Project partners

Identity and location of partners

Partner 1:

Name:
Address:
Tel:
Fax:
E-mail:
Internet (if applicable):

Partner 2:

Name:
Address:
Tel:
Fax:
E-mail:
Internet (if applicable):

If there are more partners, please add here.

1.3.Brief project description

(7 lines max., less than 100 words)

1.4.Type and amount of finance required[1]

Type of finance requested (mark appropriate box):

[ ] Debt

[ ] Equity

Total project cost excl. VAT (euro) = 100 % / €
Amount of finance requested from the bank (euro): / €
Amount requested as percentage of total project cost in % / %

Other sources of finance (as percentage of total project cost):

Sponsor's own resources in % / %
Local commercial bank in % / %
Grants in % / %
Other international financial institutions in % / %
Others: specify ...... in % / %
Total / 100%

1.5.Expected energy savings per year[2]

Energy savings / Unit / Value / %
Site electricity consumption total / MWhe per year
Site heat consumption total / MWhth per year
Electricity generated by co-generation plant / MWhe per year
Heat supplied by co-generation plant / MWhth per year
Electricity savings / MWhe per year
Heat savings / MWhth per year
Saved energy costs for electricity / € per year
Saved energy costs for heat / € per year
Saved energy costs total / € per year

1.6.Energy prices (euro)[3]

Energy sold

Heat fed into the grid euro/kWhth
Electricity fed into the grid euro/kWhel

Energy purchased

Heat from the grideuro/ kWhth
Electricity from the grideuro/ kWhel
CHP fueleuro/kWh

1.7.Lifetime of the project

years

1.8.Expected implementation time:

years

Proposed start of implementation:

.. / .. / 20.. (dd/mm/yyyy)

1.9.Summary cash flow analysis

If using the PROCHP calculation spreadsheet, the table below may be kept. Otherwise, include other cash flow model

Please add the table “Summary cash flow analysis” from the PROCHP calculation tool[4] after filling in all data requested. Layout of the table:

euro/ year / 1 / 2 / …… / 10
1. Operating profit
Power sales income
Heat sales income
Total turnover
Labour costs
Fuel costs (raw material)
Other direct operating costs
GROSS PROFIT
Extraordinary income-affecting revenue
EFFECTIVE CASH FLOW
Extraordinary non-out-of-pocket operating expenses
Depreciation
Extraordinary non-income-affecting revenue
ORDINARY OPERATING PROFIT
2. Variation in working capital
Decrease + (increase -) in stock
Decrease + (Increase -)
Increase + (decrease -) in creditors
Total variation in working capital
3. Capital expenditures
4. Taxation
Taxes paid (33% of operating result before tax)
Free cash flow (pre-finance)
5. Servicing of finance
Interest paid
Bank fees paid
Net cash flow financing
6. Financing
Equity (shareholders' funds)
Grant
Bank long-term loan repayment
Dividends paid to shareholders
Long-term loan requirement
Short-term loan
Net cash flow from financing
6. Ratios
6.1 Gross profit margin
6.2 Net profit margin
6.3 Return on equity
6.4 Current ratio
6.5 Acid test (quick ratio)
6.6.Gearing
6.7.Debt service ratio
6.8.Debt service ratio (no dividends paid)
6.9 Free cash flow-to-debt service ratio

2.Introduction to the business

Briefly discuss the nature, strengths, risks, current situation and future plans of the

business:

2.1.Nature of the business

2.2.Strengths of the business

2.3.Risks

2.4.Current situation

2.5.Future plans

3.Nature of the project

3.1.Background to the project

3.2.Scope of the project

3.3.Rationale

3.4.Arrangements for implementation

3.5.Infrastructure background (attach separate sheets if necessary)

Locations and age of owned or rented fixed capital assets

1. PlantsAge

2. WarehousesAge

3. OfficesAge

4. Stores (retail)Age

5. Other (specify)Age

3.6.Description of existing energy supplies

Energy system/ energy carrier / Installed power capacity (MWe) / Annual power consumption (MWhe) / Installed thermal capacity (MWth) / Annual thermal consumption (MWhth)
  1. Electricity

  1. Gas

  1. Coal

  1. Oil

  1. Others (specify)

Electricity comes from (mark appropriate box):

[ ] Thermal power plant: energy carrier is

[ ] coal

[ ] oil

[ ] gas

[ ] others …

[ ] Nuclear power plant

[ ] Hydropower plant

[ ] Others, e.g. CHP from waste incineration, wind power (please specify): ...

4.Benefits

Describe the benefits to the local economy expected from the project, covering

the specific impact on:

4.1.Energy savings and environmental improvements

4.2.Export promotion

4.3.Import substitution

4.4.Job creation

4.5.Productivity improvements

4.6.Technology transfer

4.7.Management development

5.The sponsor(s)

Describe the main parties to the project

5.1.Personal details, background and experience of main parties and top management of the project

Name:
Address:
Telephone (home):
Telephone (work):
Fax:
E-mail:
Internet:
Business experience, qualifications and training:

5.2.Financial data

Past track record: / e.g. attach the balance sheets and the profit-and-loss statements of the last 3 years or fill in the key figures from these documents
Future projections:

5.3.Proposed financial contributions and exposure

Name of partner:
Financial contribution (euro):
Exposure to financial risk (recourse or non-recourse):

5.4.Rationale for the involvement of other partners, if any

5.5.Objectives

5.5.1.What are the objectives of the business itself?

Short-term (from today until end of the first year):

Medium-term (from the end of the first year to the end of the fifth year):

How are these objectives going to be achieved?

5.5.2.What are the long-term objectives of the business (if any)?

(From the end of the fifth year)

How are these objectives to be achieved?

6.Project costs and timetable

This section sets out in detail the total costs of the project and their justification.

6.1.Project costs

If using the PROCHP calculation tool, use the table below. Otherwise, insert other cost overview table

Please add the table “Project costs” form the PROCHP tool, which has the following layout.

(NB: In this table, full stops (.) are used to show thousands and millions, and commas (,) are used to show decimal points.)

Justification of these positions and costs:

6.2.Basis for the cost estimate

How have the costs been estimated?

6.3.Sources and dependability (condition and age) of technology and equipment

Name and short technical description of proposed technology and equipment / Condition
(new, good, fair, poor) / Age
(in years)
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.

Assistance, if any, to be provided by the technology supplier

6.4.Timetable of implementation and disbursements

(This should be provided in detail.)

Expected time of purchase or cost incurred
(month/year) / Short technical description of item to be purchased or cost to be incurred / Amount in euro

6.5.Description of agencies in charge of implementing major components of the project and rationale for their selection

Component of the project / Name of agency in charge of implementation / Reasons for selecting agency and track record

6.6.Nature of the contracts with agencies in charge of implementing the project

Key terms and conditions of the contracts:

6.7.Explanation of any cost contingency built into the project costs

6.7.1.What are the built-in contingency costs of the project?

6.7.2.What are the justifications for these contingency costs?

6.7.3.If there are provisions for cost overruns, what are the reasons for assuming that such overruns may occur?

6.7.4.How has the company ensured that there is sufficient back-up funding in the event of cost overruns?

6.8.Procurement issues

6.8.1.What is the proposed method for purchasing goods, services and equipment with the bank's funds?

6.8.2.What is the justification for using any other method?

6.8.3.Is there any reason not to use competitive tendering?

7.Products, services and market

7.1.Description of products or services to be supplied by the business

Name of product or service / Average amount per year in kWh / Contribution to total turnover (%)
A Heat
B Cold
C Electricity
D Others …
TOTAL

7.2.Pricing and costs (breakdown of the cost of materials)

Product or service / Variable costs / Selling price
A Heat
B Cold
C Electricity
D Others (e.g. special services) …

7.2.1.Sources of cost estimates

Product / Source of information for cost estimates for materials required for the product
A Heat
B Cold
C Electricity
D Others (e.g. special services) …

7.2.2.Explanation of price estimates

a. Cost-plus price

b. Competitors' prices

c. Market price

7.3.Market description, location and size

7.3.1.Description of the market the business is in

7.3.2.Geographical area of the company's market

7.3.3.Size of the company's market (euro per year)

7.3.4.Description of the market environment

7.4.Type of consumers

7.4.1.Characteristics of the customers of the business

7.4.2.Competitors' analysis

Name of competitor / Name of competitor's product or service / Market share (%)
A
B
C
D
E
F
G
H

7.4.3.What is special about your own products or services? (What is their unique selling point?)

7.4.4.Advantages of your product or service over that of the competition

Name of competitor's product or service / Advantage(s) of your product or service over that of the competition

7.5.Factors affecting growth in demand

7.5.1.Description of factors affecting growth in demand

7.5.2.Is the company's market growing, stable or in decline?

7.6.Financial position of buyers

7.7.Raw material / CHP fuel supply

Long-term security of supply, of price, past price trends, forecasts...

8.Regulations and environmental information[5]

8.1.Key regulations by public authorities applying to the transaction

8.2.Key permits required for the transaction

8.2.1.From the national level

8.2.2.From the state or regional level

8.2.3.From the local or municipal level

8.3.Permit requirements

What, if any, are the specific permit requirements for this project?

8.4.Environmental regulations

What are the particular environmental regulations which must be complied with in order for the transaction to be approved in the jurisdiction in question? List of relevant federal, regional and local environmental and worker health and safety requirements for the project.

8.5.Environmental contact person

Name of environmental contact person:
Address:
Tel:
Fax:
E-mail:

8.6.The land

8.6.1.Location

8.6.2.Historical uses of the land

8.6.3.Current land uses associated with the project site

8.7.Physical construction activities involved in the project

8.8.Environmental impact assessments or environmental audits carried out for the project

(Attach all environmental impact assessment and environmental audit reports.)

Date of report / Title and description of assessment or audit

8.9.Potential environmental liabilities, if any

8.10.Proposed environmental mitigation

8.11.Proposed environmental enhancement

8.12.Corporate environmental policy

8.13.Environmental concerns in connection with the project and its associated properties

8.14.Status of public consultation on the project

9.Role of the bank

Concise description of the proposed role of the bank*

* The bank may play any one or more of the following roles in the proposed project:

(1) lender, (2) syndicater of loans to other lenders, (3) guarantor, (4) underwriter, (5)

equity investor and (6) financial and investment advisor.

10.Financing plan

If using the PROCHP financial tool, use the table below. Otherwise, insert your own plan

Please add the table “Financing” from the PROCHP tool, which looks like the example below.

(NB: In this table, full stops (.) are used to show thousands and millions, and commas (,) are used to show decimal points.)

What security will be offered to the sponsors?

Security, if any, that the sponsor will put up for the project:

Description of item(s) / Estimated value (local currency) / Estimated value (euro)
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.

11.Cash flow projections and financial viability

If using the PROCHP calculation tool, insert the below table. If not, insert other cash flow scheme

Provide annual estimates for each of the items listed below over the life of the

project finance.

Please add the table “Cash flow projections 10 ys” from the PROCHP tool. Layout (NB: In this table, full stops (.) are used to show thousands and millions, and commas (,) are used to show decimal points.)

:

12.Expected energy savings per year

Please add the table “Energy savings” from the PROCHP tool.

Energy savings / Unit / Value / %
Site electricity consumption total / MWhe per year
Site heat consumption total / MWhth per year
Electricity generated by co-generation plant / MWhe per year
Heat supplied by co-generation plant / MWhth per year
Electricity savings / MWhe per year
Heat savings / MWhth per year
Saved energy costs for electricity / € per year
Saved energy costs for heat / € per year
Saved energy costs total / € per year

13.Environmental benefits (CO2 reduction, etc.)

Please add the table “Environmental Benefits” from the PROCHP tool.

13.1.Before CHP

(NB: In this table, full stops (.) are used to show thousands and millions, and commas (,) are used to show decimal points.)


13.2.With CHP

(NB: In this table, full stops (.) are used to show thousands and millions, and commas (,) are used to show decimal points.)


14.Appendixes

Please add here the printout of the PROCHP calculation tool with the folllowing contents:

...Or provide your own calculations from other model

Table of contents of the PROCHP calculation tool:Page

1.Project costs2

2.Financing3

3.Assets4

4.Liabilities5

5.Cash flow projections 10ys6

6.Key figures8

7.NPV & IRR9

8.Graph NPV10

9.Curve of annual heat consumption11

10.Curve of CHP output12

11.Environmental benefits (CO2 reduction)13

12.Energy savings15

13.Input table (= summary of all inputs)16 – 21

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[1] See PROCHP tool printout, Tab.1. “Project Costs” and Tab. 2. “Financing”.

[2] See PROCHP tool printout, Tab. 15.

[3] See also input in Form 1 Q. 9, Table “Overview tariffs 1997” and Table “Energy prices PROCHP” of the PROCHP tool.

[4] See Excel file “prochp-v4.00.xls”

[5] In Austria, e.g., you may use a special software on CD-ROM to check compliance with legal requirements (i.e. an overview of all relevant legal requirements).