[en] The World Bank has developed a flexible oil and gas programme that is structured to meet the changing needs of the sector as they arise. The Bank became prominent in the oil and gas sector after the oil crises of the 1970s, when it began assisting client countries in developing their indigenous energy resources. At the beginning, Bank lending concentrated on exploration and development of hydrocarbon resources where the level of lending expanded to US$1 billion in 1983. This rapid expansion caused some concern that Bank activities might preempt those of the private sector. In response, the Bank imposed in 1984 strict limitations on petroleum exploration and oil production lending. In combination with the perception that future oil demand would be weak, this caused the lending programme to fall off sharply (to US$300 million by 1986). By 1990, the Bank was again moving actively into hydrocarbon sector lending, but then the emphasis was on promoting private sector development and supporting the development of natural gas as a substitute for coal and oil. Bank lending to the sector has been on the increase since 1990; a lending level of about US$1 billion yearly is expected for the second half of the 1990s. In addition to its direct lending, the World Bank facilitates contributions by other financiers through its cofinancing and risk mitigation arrangements. (author)

[en] Triodos Bank has more than 10 years of experience with developing and financing wind projects in the Netherlands. Over 50 Megawatt has been installed with direct involvement of the bank. The experience is both as a bank and as a venture capital fund. In this contribution the perspective will be more from a venture capital point of view than as a bank. The bank's activities in the wind energy sector started in 1986 by forming a joint venture with an engineering bureau, experienced i wind energy but not yet in developing wind projects. From 1989 onwards the joint venture started to build wind farms, both as a private company and in a joint venture with utilities. The European Investment Bank became involved with a long-term debt finance facility (15 years, fixed interest loan). The main difficulties were long-term commitments from landowners (Dike authorities) and utilities with regard to power contracts. The development got really stuck when utilities refused to pay a fair price anymore. Also, site development became more and more difficult. Even the poor technical performance improved drastically and did not frighten developers and banks too much. (author)

[en] This paper is intended to provide general advice to sponsors of renewable energy projects who expect to raise project-based financing from commercial banks to fund the development of their projects. It will set out, for the benefit of such sponsors, how bankers typically approach the analysis of these undertakings and in particular the risk areas on which they concentrate. By doing so it should assist sponsors to maximise their prospects of raising bank finance. (author)

[en] Financing cost is an important part of the total cost of a nuclear power plant and as a consequence plays a role in the competitiveness of a bid. The construction of a nuclear plant require huge investments and the possibility of offering a competitive credit is an important point to win market shares. Some countries like China and Russia propose a system in which both states can act as direct lender and can propose loans with very favorable interest rates. France has recently implemented a new export-credit system in which a loan over a very long period (construction period + 18 years) guaranteed by the French Export-Credit agency (COFACE) can be obtained complementing loans from commercial banks. (A.C.)

[en] The article examines the role institutions play in climate adaptation in Norway. Using examples from two municipalities in the context of institutional responses to floods, we find, first, that the institutional framework for flood management in Norway gives weak incentives for proactive local flood management. Second, when strong local political and economic interests coincide with national level willingness to pay and provide support, measures are often carried out rapidly at the expense of weaker environmental interests. Third, we find that new perspectives on flood management are more apparent at the national than the municipal level, as new perspectives are filtered by local power structures. The findings have important implications for vulnerability and adaptation to climate change in terms of policy options and the local level as the optimal level for adaptation. (author)

[en] Is the projection of cheap and abundant oil correct? Yes, in terms of the resource base. Yes, in terms of (modest) demand growth. Yes, in terms of technology. But only perhaps in terms of the financial constraint. As new exploration and development has to be funded perhaps the marginal cost of oil will inevitably increase; and financing will be harder to come by as equity finance is less available from oil companies and as international banks continue to retreat. As a result, although incremental oil will be found, periodic squeezes cannot be ruled out. (author)

[en] The sharp increases in the oil price in 1973 and 1979 devastated the economies of the petroleum-importing countries of sub-Saharan Africa, which were compelled to divert significant portions of their foreign exchange earnings to meet huge and burgeoning energy import bills. The economic shocks induced by the oil price triggered wide-scale internal and external disequilibria, demonstrated by deteriorating trade balances and large and growing current account deficits. The prolonged slump in the prices of primary commodities, combined with frequent droughts, ensured that economic retrogression persisted during the 1980s. Rapid accumulation of external indebtedness resulted in the build-up of an onerous debt-servicing burden that further aggravated the balance of payments situation. The 1980s were characterized by a substantial fall in the standards of living of the average African and deterioration in both physical and institutional infrastructures. (Author)

[en] A banker's perspective of oil and gas reserve reporting was presented. Topics chosen for discussion emphasized oil and gas lending, and the type of capital which is most relevant to the oil and gas industry. The concept of capital differentiation, potential worst case, and least specialization, were explained. An explanation of the reasons for the lender's different perspective on reserves was given. Methods that banks use to limit risk, and the role that reserve reports play in loan approvals were also reviewed

[en] The recent A$4,746 million privatisation of the 2000MW Loy Yang A power station and the Loy Yang coal mine by the Victorian Government is Australia's largest privatisation and one of 1997's largest project financing deals. (author)

[en] The Townsville Standby Power Station (TPS), developed by Transfield, represents another pioneering step in the development of the independent power production market in Australia. Uniquely, it is the first privately owned power station designed solely for the provision of standby power. The station, which will initially be fired using either Jet A-1 or distillate, is being developed adjacent to the Queensland Nickel refinery at Yabulu on the outskirts of Townsville in northern Queensland. It will provide peak load support and back-up in the event of high-voltage distribution line failure to Townsville and the far north of Queensland. TPS is based on a single Siemens V94-2 gas turbine generator in open-cycle configuration and is rated at 159.5MW. TPS was awarded a 15-year power purchase agreement (PPA) to provide standby power. This is possibly the last such agreement to be awarded as the Australian market for independent power projects (IPPs) matures. This article provides an outline of the project and summarises the key commercial terms of the transaction. (author)