PTI suppose in theory PAX's projects could be funded 100% by...

PT

I suppose in theory PAX's projects could be funded 100% by loans, and my example assumes $119.8 mill of debt for Sokoria as stated by PAX. PAX envisages a combination of equity and finance which is normal.

It comes down to how much risk the lender is willing to take. I can't see how a lender for this kind of project will advance 100% when the developer (PAX) itself is not risking anything apart from the relatively small capital used to set up the project.

Even if a VC is willing to fund most of project equity I still think the lender will require PAX to contribute real cash also, to help share the risk and to keep PAX focussed. This is where I think PAX will have to raise more funds.

Last week Nevada Geothermal ran into just the kind of risk scenario that lenders are scared of. The project didn't make the income expected and the lenders now own the project and the Nevada Geothermal will only get management fees. (http://www.nevadageothermal.com/s/News.asp?ReportID=566181&_Type=News&_Title=NGP-Reaches-Agreement-with-EIG-Global-Energy-Partners-on-the-Transfer-of-NG...)