The Project can be formed the Government or Private Ownership.
There must not be financed the Government directly, but if the Applicant is a company – owned by the Government – and/or the project is a Government supported one, it is not problem.
What are the specific project the funder allow?
It is easier to specify the projects which must not be financed. Narcotics related projects (except the pharmacutical narcotics). Manufacturing, or trading of arms of any kind. Any project related to prostitution and similar illegal or any other activity against the human race or the wildlife or natural environment. Funding for a political party or its advertising or government funding is also not eligible.
Where is the source of fund from and is the fund clean and from which Bank?
The source of fund is from international business tradings and transactions, approved and controlled by international organizations.
Please explain us why the funder provide free money for the project and non-returnable?
First of all, it should be stated that there is no such thing as “free money”. Banks and other financial institutions cannot give “subsidies”, “grants” or “gift money”, this is not consistent with the “policy”. This financing is a special loan that can be “repaid” by operating the project for a specified period - usually 10 years. The non-refundable loan is repaid by operating the implemented project. Maintaining cash flow in the local and global economy is very important, and this is also the task of, among others, the World Bank and other international organizations.
What is the min and max project value to qualify to obtain approval from the funder?
It depends on the nature of the project, but the minimum non-refundable project financing amount is 50 million USD, and the maximum amount is not specified.
What is the funder procedure to apply and what document is require to submit?
The procedure is specified in details in the “Procedure” document for non-recourse loan.
Project Development General Schedule – “PDGS”
A. In case of TCG Projects if the project is financed by the Owner
- Project owner submits the following documents:
- a./ CIS (Client Information Sheet)
- b./ Basic Feedstock Data Table (filled in)
- Technology Provider prepares the Preliminary Model, including the “Project Total Budget” (“PTB”) mass-, energy-, and financial balances.
- Project owner submits the Proof of Funds (“POF”) on the “PTB”.
- Project Owner and Technology Provider sign the project development contract and they are working out the project technology parts together.
B. In case of TCG Projects if the project is financed by the International Organization
- Project owner submits the following documents:
- a./ CIS
- b./ Basic Feedstock Data Table (filled in)
- c./ POF on minimum of 38-45 M USD
- Technology Provider prepares the Preliminary Model, including the “Project Total Budget” (“PTB”) mass-, energy-, and financial balances, and provides the “PTB”.
- Project owner submits the Proof of Funds (“POF”) on the 15% of the “PTB”.
- Applicant (Project Owner) follows both the PRELIMINARY PROCEDURE and the GENERAL PROCEDURE of “Project Financing Global Program” (“PFGP”), to finance projects in form of “Project Financing Non-Recourse Loan” (“PFNRL”).
The project owner must prepare, present and submit a bank document confirming the availability of 20-30% of the "PTB" amount required for registration - as "Refund Guarantee-Insurance Bond Fee" ("RGIBF")).
Yes, “RGIBF” depends on the type of project and the amount requested.
3 steps to submit for funder are as follows:- a) Project Information, b) CIS, c) Show "RGIBF" Amount.
Yes, see point No.7.
Upon submission clause 8 (item a to c) what is the duration for funder approval?
Between 10 minutes and 24 hours.
Assume upon approval of the project what is the next procedure steps and submission requirement?
See the “Procedure”! After the arrival of the fee, the applicant has to provide the information regarding both the applicant and the project. The applicant receives the draft financing agreement, fills it in, signs, stamps and submitts to the financing arranger company. Financier signs the agreement and from its date or the submission date of the feasibility study after 10-12 weeks the financing begins.
How is the "RGIBF" transferred, to whom and where?
The fee can be paid by bank wire transfer or in crypto currency transferred to the bank account specified by the financing arranger.
What kind of assurance will the Ownership be protected by, after the registration fee is been paid to escrow agent?
The regsitration number is the guarantee that both the applicant and the project financing request is officially registered in the financier’s files, and the project is financable. The reimbursement of the fee is guaranteed by the following ways: a. personal insurance of the treuhand/escrow agent. (5 million CHF) b. Bond guarantee provided by the Financier through third person and EU Central Bank or US Treasury. c. The Escrow agreement and the Financing agreement signed by both the Applicant and the Treuhand/Escrow Agent and the Financiing arranger.
What is the restriction Do/Does after the Ownership get the fund and how is the fund been drawn down for the project?
The applicant has to have appropriate bank account that is able to receive the amount applied for.
What happens if the project fund is insufficient during the construction, can the Ownership request additional fund from the funder?
Yes, if you do it for a good reason.
How the Project Ownership deal with the funder and what kind of arrangement for both of them to meet & sign any agreement.
The name of the contract: LIA – Loan and Investment Agreement for non-recourse project financing loan. The Finanier and the Applicant have been working close together. The Finanier - or its representative KPMG, Deloitte, E&Y, etc. - and the Applicant have been working close together all along the contarcting the implementation and the operating period.
Is there any restriction for the Ownership to disposal his development before/after completion of the project? If Yes what is the penalty involve?
There is no restriction regarding the selling of the project when it is ready, but the new owner has to acknowledge that the ten year operating duty is also bought by him.
Is the funder have any track record for cross reference? If Yes, which Project, Where and Project amount?
Several projects were financed in either Loan or Non-recourse loan forms, like the “One Road One Belt” or the Hanoi Hospital projects and others.
Can the Project Ownership conduct the diligence with the funder?
Yes.
Who guarantees the repayment of the "RGIBF"?
This guarantee is multi-levelled. A/. The Escrow or Treuhand or Pay Master Agreement, signed by the Treuhand/Escrow Agent/Lawyer/Pay Master and the Applicant is a legal document that is a legal guarantee. B/. In the Escrow or Treuhand or Pay Master Agreement there are listed those Banking or Treasury Instruments which are the guarantee for the reimbursment of the “RGIBF” paid by the Applicant or “Third Party”. C/. The Lawyer/Treuhand/Pay Master etc. are guarantees in their persons, because their activity is licenced and very strictly controlled by the Authorities or Ministeries. They all have to have insurence for specially these activities.