Lender's Trust ORTECH: Balanced, Believable, Bankable: At ORTECH, we speak Finance!
If you are financing a renewable energy project, ORTECH can assist with a structured and efficient due diligence process.
Well-structured long term debt is an essential component of successful renewable energy projects. Debt Providers trust ORTECH’s sound and conservative advice. Our team has planned, built and operated renewable energy facilities. We can help mitigate risk, overcome obstacles, provide insight and bridge the gaps between the technical and the financial. ORTECH has the experience to work with debt providers to assess and , where possible, reduce project risks. In short, at ORTECH we are engineers speak finance.
An overview of our Structured approach:
Phase 1: Document Review: This phase is essentially a document and planning review exercise designed to uncover any deficiencies in project planning and to identify potential difficulties that may arise during the construction and operational phases. The intent is to ensure that the Debt Provider is aware of:
- the current status of the project,
- remaining steps required to bring the project to the construction phase,
- the responsibilities of each party under the agreements covering the construction and operation of the project with particular emphasis on any limitations, exceptions and exclusions that may impact the ability of the owner to service the long-term debt,
- any higher than normal risks and measures that are proposed to deal with such risks, i.e.
- any provincial or regional content plans are in place and meet the requirements of the relevant project, and
- confirmation, subject to proper completion of construction, that it is reasonable to assume that the project should generate sufficient revenues and cash flows to comfortably service its long-term debt.
Phase 2: Construction Monitoring:
Pending satisfactory completion of Phase 1, ORTECH will monitor all aspects of the construction phase of the project so as to ensure that:
- design specifications are met and consistent with documentations,
- applicable health and safety regulations are followed,
- debt drawdown requests are in accordance with project schedule and budget and adequately documented in accordance with the loan agreement,
- any material variances from project budget or the exhaustion or potential exhaustion of any contingencies are identified in a timely manner, and
- any change orders are justified and at reasonable cost in the circumstances.
Phase 3: Start-up, Testing, Commissioning & Post-Commissioning Monitoring: During this phase ORTECH will ensure that the facility has been completed in manner that:
- permits it to deliver energy to the grid in accordance with the requirements of the grid operator and in compliance with the terms of the power purchase agreement including any regional or provincial content provisions,
- any outstanding construction and installation matters have been dealt with,
- conditions for the release of any holdbacks are met;
- the state of the project is such that warranties and performance guarantees are in effect, and
- the project is operating in a manner that produces sufficient revenues to enable the owners of the project to meet its obligations to the Debt Provider. Note that this Post-Commissioning monitoring may continue for at least one year with periodic monitoring (e.g. annually) thereafter as required by the Debt Provider.
To learn more, please contact: