SGS Industrial Project Finance Services en

ALL RISKS ARE OBVIOUS WHEN YOU KNOW WHAT TO LOOK FOR
PROJECT FINANCE SERVICES

RISK MANAGEMENT SOLUTIONS FOR BANKS, EQUITY FUNDS, SPONSORS AND INVESTORS
WWW.SGS.COM/PROJECTFINANCE
ARE YOU AWARE OF YOUR PROJECTS RISKS?

IS THE PROJECT FEASIBLE? WHAT IS THE PROJECTS IMPACT? DOES MY PROJECT PROTECT THE ENVIRONMENT? ARE THE PROJECTS COSTS REALISTIC? WHAT IS THE REAL PROJECT STATUS? WHERE IS THE PROJECT MONEY SPENT? IS THE PROJECT COMPLETED ACCORDINGLY? IS THE PROJECT FULLY OPERATIONAL?
HOW DO YOU MANAGE THESE RISKS?

Before deciding to sponsor or invest in a project you need to factor in all risks that might jeopardize its success. Some risks are hard to manage. To mitigate them requires robust protective and corrective mechanisms, such as insurance, currency hedging, contractual arrangements, contingency funds and lines of credit. These risks typically include n LEGAL RISKS contractor insolvency, breaches of contracts n MARKET & POLITICAL RISKS prices and currency fluctuation, legal system changes, civil commotion, war, terrorism n OTHER RISKS natural disasters, force majeur However, some risks are well within your control and can be managed if you use the relevant and adequate preventive tools, such as due diligence, surveys and verifications. These risks typically include n TECHNICAL & OPERATIONAL RISKS faulty design, materials or workmanship, construction or supplier performance n ENVIRONMENTAL & SOCIAL RISKS pollution, labour conditions, health, safety, security, land acquisition, biodiversity conservation n ECONOMICAL RISKS cost of construction, supplies, operations or maintenance Ironically, these are the risks that cause the most cost overruns and delays, yet can be prevented so easily.
SOLUTIONS FOR YOUR PROJECT FINANCE NEEDS

THROUGHOUT THE PROJECT LIFECYCLE, ACROSS INDUSTRY SEGMENTS, WORLDWIDE PROJECT LIFECYCLE
DEVELOPMENT DESIGN
APPRAISAL APPROVAL
SERVICES TECHNICAL OPERATIONAL
n Pre-feasibility studies (industrial, agricultural) n Design and engineering surveys n Tender support n Site assessment n Regulatory compliance
n Technical due diligence (industrial, agricultural) n Site survey n Regulatory compliance
ENVIRONMENTAL SOCIAL
n Environmental due diligence n Tender support n Regulatory compliance
n Equator Principles independent review n Environmental due diligence
ECONOMICAL
n Economic feasibility n O&M economic models n Price/costs evaluation
n Economic due diligence n O&M economic models n Price/costs evaluation
ENGINEERING, PROCUREMENT, CONSTRUCTION (EPC)
OPERATION & MAINTENANCE (O&M)
n n n n n n n n
Project management Project monitoring Manufacturing surveys Installation surveys Regulatory compliance Project management systems Commissioning survey Project certification
n Operational survey n Regulatory compliance
n Equator Principles monitoring n Health, Safety and Environment
n Equator Principles monitoring n Health, Safety and Environment
n Costs reviews
n Costs reviews
TECHNICAL & OPERATIONAL RISKS

INDUSTRIAL PROJECTS
With over 10,000 engineers and technical experts worldwide, SGS has the expertise and proven track record in delivering services for energy, infrastructure and utility projects. SGS services assist investors and sponsors to manage project risks by providing independent expert advice and opinions, including
PROJECT MANAGEMENT
n n n n n n Construction supervision Budget control Accounts review Procurement support Project experts onsite Project management systems
INSTALLATION SURVEY
n Site supervision in accordance with legal construction requirements n Continuous contractor supervision n Non-destructive testing supervision n As-built documentation
COMMISSIONING SURVEY PROJECT MONITORING

n n n n n Milestone monitoring Schedules review Cost review Quality review Site visits and progress reports n Initial start-up and testing procedures verification n Trial start-up supervision n Test results evaluation n Start-up and final commissioning supervision n Installation certificates issuance n Final acceptance certificates
PRE-FEASIBILITY STUDIES
Design and engineering studies Site surveys Tender support Specifications review Support selection of suppliers and subcontractors n Permits and licenses review n n n n n
MANUFACTURING SURVEY
n Quality control during manufacturing n Verification of documentation related to materials and components n Supervision of acceptance trials at production and/or procurement n Loading and unloading supervision n Product certification
TECHNICAL DUE DILIGENCE

n n n n n Design and engineering reviews Site assessment Technical contract evaluation Specifications verification Suppliers and subcontractors qualification review n Permits and licenses review
AGRICULTURAL PROJECTS
SGS has over 130 years of experience in the agricultural sector. This combined with our extensive network of experts and the use of the latest technology related to precision farming, crop studies and commodity testing enables us to add value to our customers projects. For investors and sponsors, it is essential to understand and evaluate the implications on their projects of growing crops in specific regions, soil and weather conditions, water availability and others. SGS services include n Evaluate and estimate pest/weed controls and fertilization requirements n Identify, evaluate and estimate the costs of equipment and service suppliers n n n n Budget control Procurement support Management Team onsite Project management systems
PROJECT MONITORING PROJECT REVIEW AND DUE DILIGENCE

n Agricultural development plan review n Site assessment, including water supply, soil conditions, etc. n Review on the development schedules n Contractors and suppliers qualifications review n Review and comment on the extent, quality and costs of activities performed n Permits and licenses review n Milestone monitoring n Equipment and service cost evaluation n Inspection on the quality and quantity of inputs acquired by the project n Site visits and progress reports
PROJECT DEVELOPMENT ASSISTENCE

n Field assessment, e.g. identify and quantify the available agricultural land suitable for the project n Schedule evaluation by identifying and describing key milestones n Propose Management Team by benchmarking with similar projects
PROJECT MANAGEMENT
n Development plan: soil preparation, fertility management, planting, maintenance of the fields, etc.
ENVIRONMENTAL & SOCIAL RISKS

ENVIRONMENTAL & CERTIFICATION SERVICES
Environmental and social issues have become as important to a project as financial, legal and technical ones. For investors and sponsors, environmental and social risks can impact not only on projects cost and return on investment, but also their reputation. SGS has a proven track record in addressing environmental issues in a wide range of industry segments, including oil, gas and chemical, industrial sites and parks, energy installations, mining, waste and waste water plants and transportation infrastructure. SGS experts, supported by state of the art technology and monitoring facilities, provide customers with a comprehensive range of specialised environmental services, including n Environmental impact assessment n Environmental due diligence n Emissions monitoring n Field investigations, sampling and monitoring n Compliance reviews, i.e. regulations or permits n Greenhouse gases project pre-validation or validation (e.g. CDM, JI, VCS) n Health and safety monitoring and management In addition, we provide n Environmental management systems certification (e.g. ISO 14001:2004) n Occupational health and safety certification (e.g. OHSAS 18001) n Sustainability reporting Assurance (e.g. Global Reporting Initiative (GRI) and AA 1000 Assurance Standards) n Social Accountability 8000 standard certification n Customised Audit Solutions
EQUATOR PRINCIPLES
The Equator Principles are a set of guidelines, promoted by the International Finance Corporation (IFC) that address the environmental and social issues associated with major development projects worldwide. They provide a common baseline and framework for the implementation of internal environmental and social procedures and standards for project financing activities across all industries. n PRINCIPLE 1 Review and Categorization of projects n PRINCIPLE 2 Social and Environmental Assessment n PRINCIPLE 3 Applicable Social and Environmental Standards n PRINCIPLE 4 Action Plan and Management System n PRINCIPLE 5 Consultation and Disclosure n PRINCIPLE 6 Grievance Mechanism n PRINCIPLE 7 Independent Review n PRINCIPLE 8 Covenants n PRINCIPLE 9 Independent Monitoring and Reporting n PRINCIPLE 10 EPFI Reporting Over 60 banks and financial institutions have voluntarily adopted the Equator Principles. They provide an effective project finance social and environmental risk management tool, through the incorporation of IFC Performance Standards (PS). SGS can provide the following services n Environmental and Social Assessment to sponsors (as per Principle 2) n Independent Reviews for banks, in particular Mandated Lead Arrangers (as per Principles 7) n Independent Monitoring and Reporting (as per Principles 9) n Gap analysis of environmental management systems n Equator Principles training SGS continue to offer environmental and social audit support for the project as it becomes operational. This includes Sustainability Customised Audit Solutions leading to third party Environmental Management System Certification ISO 14001:2004 and Social Accountability 8000 standard certification.
ECONOMIC RISKS
SGS has the combined technical and economic expertise to understand the implications of technical issues and risk on the financials of a project, including financial close, payment schedules, IRRs and other. From a technical point of view, we can deliver the following services n Evaluate the operational costs, capacity and availability of the projects facilities n Review the project schedule and evaluation the impact that possible delays may have on completion deadlines n Documentary verification of price of main suppliers and equipment, using prevailing market price methodology
OPERATIONAL & MAINTENANCE

n Gap analysis of actual operational costs against budget n Identify cost overruns and reduction/ loose in productive capacity n Identify maintenance requirement that many have substantial impact on production downtimes and subsequent impact on operating costs n Report and suggest correctly actions, in case of cost overruns or revenue losses
DUE DILIGENCE
n Review estimated costs, budget and financial model and identify possible cost overruns n Review insurance and performance bond coverage, penalties and liquidated damages n Evaluate the provisions by comparison with similar projects costs n Comparison of construction and operational costs with similar projects
PROJECT MONITORING
n Gap analysis of actual construction costs against budget n Identify cost overruns n Review schedule and impact of delays on the projects costs n Report and suggest correctly actions, in case of cost overruns
Geneva 100+ ofces in North America
270+ ofces in Europe 160+ ofces in Asia/Pacic
80+ ofces in Latin America
100+ ofces in Africa/Middle East
PROFESSIONAL GLOBAL NETWORK

SGS is the worlds leading inspection, verification, testing and certification company and is the preferred international partner for those involved in the fields of energy, infrastructure, trading and commodities. Expertise in these areas is based on years of experience in providing services to customers all over the world. SGS solutions help customers worldwide throughout their projects lifecycle by providing services, such as research and development, due diligence, surveys, project monitoring and management, verification of production, manufacturing, processing and distribution of projects outputs to the end user. With a global network of over 1,000 offices in 150 countries, our 50,000 employees are committed to turning high standard of quality and service of SGS into a worldwide benchmark.
YOU FOUND WHAT YOU LOOK FOR
SGS SA
1 place des Alpes, P Box 2152, 1211 Geneva 1, T +41 22 739 91 11, F +41 22 739 98 86, projectfinance@sgs.com .O.
WWW.SGS.COM/PROJECTFINANCE
2008 SGS Socit Gnrale de Surveillance SA. All rights reserved

SGS Industrial Project Finance Services en

Uploaded by

Copyright:

Available Formats

SGS Industrial Project Finance Services en

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SGS Industrial Project Finance Services en

Uploaded by

Copyright:

Available Formats

ALL RISKS ARE OBVIOUS WHEN YOU KNOW WHAT TO LOOK FOR

PROJECT FINANCE SERVICES

ARE YOU AWARE OF YOUR PROJECTS RISKS?

HOW DO YOU MANAGE THESE RISKS?

SOLUTIONS FOR YOUR PROJECT FINANCE NEEDS

SERVICES TECHNICAL OPERATIONAL

n Technical due diligence (industrial, agricultural) n Site survey n Regulatory compliance

n Environmental due diligence n Tender support n Regulatory compliance

n Equator Principles independent review n Environmental due diligence

n Economic feasibility n O&M economic models n Price/costs evaluation

n Economic due diligence n O&M economic models n Price/costs evaluation

ENGINEERING, PROCUREMENT, CONSTRUCTION (EPC)

OPERATION & MAINTENANCE (O&M)

n Operational survey n Regulatory compliance

n Equator Principles monitoring n Health, Safety and Environment

n Equator Principles monitoring n Health, Safety and Environment

TECHNICAL & OPERATIONAL RISKS

COMMISSIONING SURVEY PROJECT MONITORING

TECHNICAL DUE DILIGENCE

PROJECT MONITORING PROJECT REVIEW AND DUE DILIGENCE

PROJECT DEVELOPMENT ASSISTENCE

ENVIRONMENTAL & SOCIAL RISKS

OPERATIONAL & MAINTENANCE

Geneva 100+ ofces in North America

270+ ofces in Europe 160+ ofces in Asia/Pacic

80+ ofces in Latin America

100+ ofces in Africa/Middle East

PROFESSIONAL GLOBAL NETWORK

YOU FOUND WHAT YOU LOOK FOR

2008 SGS Socit Gnrale de Surveillance SA. All rights reserved

You might also like