Case Studies

Tonbridge Power Inc.

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The Challenge: Financial Crisis 

When the global financial crisis struck (2008), the $180M in capital funding commitments secured by Tonbridge Power Inc. for the Montana Alberta Tie project became immediately worthless just as the final construction permits were obtained  

The strategy: Rather than delay the project, accept unacceptably expensive financing options or fall into the hands of vultures, our team worked with congress and the US senate to establish a unique $3.25 B mechanism by which ‘shovel-ready’ infrastructure could be financed as part of the Economic Stimulus Act  

The result: The project received 100% of its senior debt at US Treasury interest rates through the government-owned Western Area Power Administration. WAPA became not only a financial backer but also a key strategic partner, contributing crucial land acquisition, project construction and future project opportunities

Local Initiative Fund of Transkei (LIFT)

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The Challenge: Lack of resources In 1984 the Eastern Cape of South Africa was poor and desperately short of basic infrastructure. With weak economic fundamentals, no private sector investment was forthcoming

The strategy: We built on the resource that was there: strong communities and abundant unemployed and partly-skilled labour 

The approach: We negotiated a partial return of mining tax revenues through the DBSA in the form of capital grants for material inputs (steel, concrete, etc.) off-set against ‘free’ labour from the beneficiary communities

And how did that work out? The result was that: 

Our team oversaw the design, construction and commissioning of almost 100 water supply, school classroom, health clinic and transportation projects.  All projects were built with local labour and maintained by on-going community commitment.  This program remains active today and one of its signature innovations (a low-water use, unbaked construction brick) remains a key contribution to the industry

Goldboro LNG Project

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 The Challenge: Raise capital to finance LNG plant (FEED, EPC and Construction):

The Goldboro LNG project is owned by Pieridae Energy Limited (PEL), a fully integrated LNG development company, building a 2-train, 10 MMTPA LNG plant in Nova Scotia, Canada

The Opportunity: To aggregate economically stranded assets in eastern Canada and develop a US$8.5bn LNG project with up to 10 MMTPA of processing capacity and large interests in gas resources in Canada and the North-eastern USA. The project secured Uniper (formerly E.ON) Global Commodities in a 20-year, take-or-pay gas contract worth approximately $35billon, as the LNG off-taker for 100% of Train 1 of the Project

THE CHALLENGE: To be successful, PEL must source natural gas, negotiate LNG sales contracts and find private and public finance

The Solutions: This project is on-going. Working with various teams of advisors and principals, untied loan guarantees have been secured from the Federal Republic of Germany for up to US$3billion or 90% of the construction related debt for the project.  Over $45million of private equity was secured and, in May 2017, began the process of taking the company public through a reverse take-over of public company trading on the TSXV