1) Obtain project scope documentation such as: PPA & site visit
2) The role of an independent completion engineer will be important not only o monitor completion but also issue an Anticipated Cost to Complete report with each drawdown.
3) The financial models that an independent engineer used should also be checked, such as IRR or payback period to mitigate the model risk.
4) It also checks the integrity of the contractual architecture, not just the slide rule checks.
5) It is a key bridge in getting the performance completion test procedures that the project financier wants.
There are five standard independent checks required on all feasibility study.
First is the environmental review. It is necessary to assess the ability of the Mauds Gold Mine to meet tightening compliance standards over time. This requires not only examining the environment impact assessment, but also checking policy and sociological issues as well.
Second is the legal opinion. The legal opinion should be a legal volume in itself and should stand without disclaimers or exclusions.
Third is tax risk. For every project, the tax risk in each jurisdiction needs to be examined.
Forth is accounting and audit. Some checks of the tax routines and modeling should be done.
Fifth are insurances. The insurances often induce legal risk due to the peculiar wording of most policies and insurance jargon.
Q3. Given the role of S&S in the construction and operation of the plant, what information would you want to be satisfied with from S&S engineers / corporate executives.
APP made Turnkey Construction and Operations & Maintenance contract with S&S. the S&S provides full completion support via Liquidated Damages and Delay-in- startup insurance. Therefore we want get clear information about the completion test which measures whether the project has been View More »