The BOT model for nuclear power plant projects from a supplier's point of view

The significant financing requirements in particular for Nuclear Power Plants as well as the mandatory need for a professional management of their construction and operation has led to the discussion of so called ''BOT'' models for the implementation of such projects. Under this model, a ''Joint-Venture'' would be established which would act as the Purchaser, owner and operator of the Plant. The equity of this Joint-Venture would be held by the Supplier(s) of the Power Plant, the local private or state-owned utilities and possibly additional private or institutional investors. The Joint-Venture would, in addition to the Shareholder agreement concluded between the investors, enter into a Power Sales Agreement with the local utilities, a Supply contract with the vendor of the Power Plant and Loan Agreement for the financing of the Project. After a defined period, during which the return on and of equity of the investors would be affected and the loans taken out for the project would be repaid, the ownership of the Plant would be transferred to the local utility. The paper briefly describes the structure of such a model and discusses in particular the assessment of its feasibility from a supplier's point of view. It is concluded that any private investor including the supplier of the plant will necessarily limit his financial obligations in such a scheme to his equity in the joint venture. Hence, the feasibility of such a model depends on the security concept for the financing of the project which according to our present experience will have to comprise an exposure of the Government of the country, in which such a project shall be implemented. (author). 1 fig