Sunrise Energy Pvt. Ltd. Is considering entering into a project finance contract to build port facilities on the shore of Gujarat for importing Liquified Natural Gas (LNG). The key features of this project are as follows: Largest Foreign investment in India Largest infrastructure project financing in India In case of bankruptcy, the responsibility will fall on the private builder and not the government What all steps will be involved in the entire project lifecycle during the construction of the port? Some key pointers that you may choose to include in your analysis are as follows: Choice of Debt vs. Equity Due diligence process involved Types of risks involved How to evaluate the present value of the project. Should it enter into the project? Breakeven analysis Estimation of profits Allocation of Profits (Cashflow waterfall) Please include any relevant numerical examples that may help you in strengthening your analysis. You may take some assumptions and base your analysis accordingly. Make sure that you specify every assumption clearly.

assumed figures Project cost 100crores debt 80crores equity 20 crores repayment period 12years interest rate 10% p.a Revenue 7 crores and 20% growth in revenue every year