The following paper centers around the Indiantown Congregation Project (the “Project”). The main idea of the case is to show how different projects or ideas can be developed and financed with the help of some unconventional sources and decisions. Being a very expensive project, it needed a great sum of money to be created and developed. That is why some new decisions were needed.
On November 9, 1994, the company, which decided to start this very project (Indiantown Cogeneration Corporation Funding Corporation), sold $ 505 million of first mortgage bonds in order to guarantee to finance for the project (Finnerty 347). The funds needed to start the project were collected, and it was necessary to start construction and exploitation in order to obtain benefits and assure that the project would be efficient enough.
Besides, it should also be said that the given Project also meant the creation of coal Fired Congregation facility. It was needed for the efficient and beneficial functioning of the whole project and its certain independence. That is why an agreement was created. According to this document, the following 30 years, these two agents had to act as partners, and they had certain duties and rights. The capital of this project was $ 588,3 million, however, there could be some changes in the sum.
Bechtel Power Corporation was responsible for the creation of the Cogeneration Facility, whose main aim was to satisfy the needs of the project in resources. The company had to perform a certain set of activities, which included engineering, design, and a great number of other services. Construction started in 1992, and there were several phases of this very process. Bechtel Corporation had to build the given construction in certain terms and, moreover, there were conditions according to which the project could be called finished.
That is why, in 1996, the stage of final completion was achieved. The project was almost finished, and it could start its functioning. It had several peculiarities of its functioning, which made the project rather complicated and unique at the same time. Pulverized coal technology allowed the Cogeneration Facility to produces superheated and reheat steam (Finnerty 351). This steam could be used in a turbo generator and produce the needed amount of energy.
The given generator was supplied by Foster Wheeler. Additionally, coal pulverizes were also delivered by this very organization. The size of each was chosen in accordance with the demands which existed for the exploitation of three of them at the same time. Such a pattern proved to be very efficient as one pulverizer could be taken for maintenance, and some potential problems could be avoided.
With this in mind, it is possible to see that form the beginning of its development, the given project was given all necessary aspects, which could make it rather perspective and guarantee it further development. All equipment, used while constructing the Cogeneration Facility, could serve for a long time, and that was why there was no need in some additional sources.
Nevertheless, taking into account the great price of the given project, it is possible to say that years of its stable work were needed for it to become beneficial. Besides, the promotion of the further development of the project was obvious, and that was why a great number of different steps were made.
It should also be said that the cogeneration facility was created on behalf of Indiantown by a governmental company called U.S. generating company. This partnership served as the basis for the stable development and functioning of the project.
Moreover, it is obvious that certain contracts with organizations that wanted to buy energy were needed. That is why Indiantown as seller and FPL created a Power Purchase Agreement according to which FPL had to buy energy during the following 30 years (Finnerty 355). Money obtained from FPL became the main source that helped a company to develop and become beneficial. At the same time, this very deal gave FPL a great number of different authorities, among which is the ability to control power dispatch levels.
With this in mind, it is possible to say that the given project involved many various companies whose main aim was to guarantee the needed level of financing and support it in its development. Moreover, it should be said that it could be taken as a good example of wise management of the project and a clear vision of the main goals which should be achieved.
From the very beginning of the Project, officials had a certain policy and ideas connected with the further development of the given project. That is why its functioning can be taken as a great success as it satisfies the needs in power of a great number of different companies and organizations.
Resting on the given information connected with the Indiantown Congregation Project, it is possible to make a certain conclusion. It should be said that the issue of finances is vital for the successful development of an idea. Thus, wise policy can guarantee the necessary level of financing and help to find partners who will be interested in the development of the project.
Works Cited
Finnerty, John. Project Financing: Asset-Based Financial Engineering. Hoboken, New Jersey: Wiley. 2013. Print.