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WSHPDR_2013_Final_Report-updated_version

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addition to long period of contract preparation for<br />

structuring projects.<br />

Exposure to the risk of legal challenges by another<br />

developer for a site that is under prospecting or<br />

licensing process.<br />

Requirement to establish a trust to control the<br />

property of assets, contracts, rights and cash<br />

flows of the project.<br />

Economic:<br />

A lack of coverage and capacity of electric grid in<br />

areas with high hydropower potential, thus<br />

requiring major investment in interconnection<br />

lines.<br />

A lack of coverage and maintenance of roads in<br />

areas with high hydropower potential, thus<br />

requiring major investment in access roads.<br />

Charges or duties for the volume of water used to<br />

generate energy, rather than for the energy<br />

produced.<br />

Commercial:<br />

Saturation of the consumer market for self-supply.<br />

Low credit rating of prospective energy<br />

consumers. And the low price of the energy<br />

delivered to the national electric system.<br />

Exposure to the risk of gradual or sharp decline in<br />

energy prices due to energy bids.<br />

Difficulty to access mechanisms of payment for<br />

greenhouse gas emissions reduction<br />

Financial:<br />

Lack of financing options for the prospecting and<br />

pre-feasibility phases.<br />

Limitation of funds made available by commercial<br />

banks for small hydropower projects, in some<br />

cases due to lack of specific experience.<br />

Terms of commercial credit in the country are not<br />

conducive, regarding interest rate, loan term and<br />

grace period.<br />

Requirement to augment the ratio of equity<br />

capital to debt and the condition to disburse<br />

equity capital prior to using debt capital.<br />

Requirement to structure syndicated loans for<br />

larger projects.<br />

Difficulty access to mezzanine funds, clearly<br />

subordinated to principal debt, to complement<br />

equity capital.<br />

High requirements of banks to assess the specific<br />

track record and financial solvency of the project<br />

developers.<br />

High requirements of financial guarantees,<br />

beyond the project expected cash flows, such as<br />

long term power delivery agreements, high credit<br />

rating of energy consumer partners, construction<br />

and supervision contracts with highly ranked firms<br />

(EPC), operation and maintenance contracts<br />

during the loan term and the requirement of<br />

opinions from independent experts.<br />

Difficulty to access mechanisms of partial<br />

guarantees of the loan and of guarantees against<br />

project cost overruns.<br />

References<br />

1. Consejo Nacional de Población (2009). Proyecciones<br />

de la población de Mexico 2010-2050. Available from<br />

http://conapo.gob.mx/es/CONAPO/Proyecciones.<br />

Accessed March 2009.<br />

2. Central Intelligence Agency (2012). The World<br />

Factbook. Available from<br />

www.cia.gov/library/publications/the-world-factbook<br />

3. Comisión Nacional del Agua (2012). Servicio<br />

Meteorológico Nacional. Available from<br />

http://smn.cna.gob.mx/. Accessed November 2012.<br />

4. Secretaría de Energía (<strong>2013</strong>). Prontuario Estadístico<br />

del Sector Energético. Mexico, D.F. Available from<br />

www.sener.gob.mx/webSener/portal/Default.aspx?id=<br />

1432.<br />

5. Comisión Reguladora de Energía (<strong>2013</strong>). Permisos<br />

de generación e importación de energía eléctrica.<br />

Available from www.cre.gob.mx/articulo.aspx?id=171.<br />

Accessed March <strong>2013</strong>.<br />

6. Comisión Federal de ELectricidad (<strong>2013</strong>). Centrales<br />

generadoras al mes de mayo de <strong>2013</strong>. Available from<br />

www.cfe.gob.mx/ConoceCFE/1_AcercadeCFE/Estadisti<br />

cas/Paginas/Centrales-generadoras.aspx. Accessed<br />

March <strong>2013</strong>.<br />

7. Instituto Nacional de Estadística y Geografía (2010).<br />

National census ITER 2010. Available from<br />

www.inegi.org.mx/sistemas/consulta_resultados/iter2<br />

010.aspx. Accessed November 2012.<br />

8.Organización Latinoamericana de Energía (2012).<br />

2012 Energy Statistics <strong>Report</strong>. Quito.<br />

9. Secretaría de Energía (2010). Balance Nacional de<br />

Energía. Mexico, D.F. Available from<br />

www.sener.gob.mx/res/PE_y_DT/pub/2011/Balance%2<br />

0Nacional%20de%20Energ%C3%ADa%202010_2.pdf.<br />

10. Comisión Nacional para el Ahorro de Energía<br />

(1995). Estudio de la Situación Actual de la<br />

Minihidráulica Nacional y Potencial en una Región de<br />

los Estados de Veracruz y Puebla. Available from<br />

www.conae.gob.mx.<br />

11. Secretaría de Energía (<strong>2013</strong>). Estrategia Nacional<br />

de Energía 2012-2026. Mexico, D.F. Available from<br />

www.energia.gob.mx/res/PE_y_DT/pub/2012/ENE_20<br />

12_2026.pdf.<br />

12. Armando Trelles and others (2006). Identificación y<br />

evaluación de proyectos minihidroeléctricos en la<br />

cuenca del río Culiacán. Informe de proyecto TH0658.3.<br />

Instituto Mexicano de Tecnología del Agua, Jiutepec.<br />

13. Armando Trelles and others (2006). Identificación y<br />

evaluación de proyectos minihidroeléctricos en la<br />

cuenca de los ríos Nautla y Tecolutla. Informe de<br />

proyecto TH0659.3. Instituto Mexicano de Tecnología<br />

del Agua, Jiutepec.<br />

173

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