Financial Analysis
Financial Model
Comprehensive financial analysis and projections for the Dr. Beyers Naudé Municipal Nano-Grid deployment programme
Internal Rate of Return (IRR)
18.5%
Net Present Value (NPV)
R 456.2M
Payback Period
8.2 Years
Debt Service Coverage Ratio
1.85x
Return on Investment (ROI)
162%
DBSA Loan Structure
Principal Amount
R 910,368,000
Loan Term
20 Years
Interest Rate
Prime + 2%
Repayment Frequency
Monthly
Grace Period
12 Months
Security
Municipal Revenue Guarantee
Cash Flow Projections
| Period | Revenue (Savings) | Operating Costs | Net Cash Flow | Cumulative |
|---|---|---|---|---|
| Year 1 | R 88.24M | R 12.50M | R 75.74M | R 75.74M |
| Year 5 | R 102.35M | R 14.20M | R 88.15M | R 412.50M |
| Year 10 | R 125.80M | R 16.80M | R 109.00M | R 892.30M |
| Year 15 | R 154.60M | R 19.50M | R 135.10M | R 1.52B |
| Year 20 | R 190.00M | R 22.80M | R 167.20M | R 2.38B |
Investment Summary
The financial model demonstrates strong viability with an IRR of 18.5%, exceeding the DBSA hurdle rate. The project achieves full payback within 8.2 years while generating cumulative savings of R2.38 billion over the 20-year project life.
Total Investment
R 910.37M
20-Year Savings
R 2.38B
Net Benefit
R 1.47B