sgs industrial project finance services en
TRANSCRIPT
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ALL RISKS ARE OBVIOUS WHEN
YOU KNOWWHAT TO LOOK FOR
PROJECT FINANCE SERVICES
RISK MANAGEMENT SOLUTIONS FOR BANKS, EQUITY FUNDS, SPONSORS AND INVESTORS
WWW.SGS.COM/PROJECTFINANCE
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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?
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HOW DO YOU MANAGE THESE RISKS?
Beore deciding to sponsor or invest in a
project you need to actor in all risks thatmight 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 unds and lines
o credit. These risks typically include
n LEGAL RISKS
contractor insolvency, breaches
o contracts
n MARKET & POLITICAL RISKS
prices and currency uctuation, legal
system changes, civil commotion,
war, terrorism
n OTHER RISKS
natural disasters, orce
majeur
However, some risks are well within your
control and can be managed i you use therelevant and adequate preventive tools,
such as due diligence, surveys and
verifcations. These risks typically include
n TECHNICAL & OPERATIONAL RISKS
aulty design, materials or
workmanship, construction
or supplier perormance
n ENVIRONMENTAL & SOCIAL RISKS
pollution, labour conditions, health,
saety, security, land acquisition,
biodiversity conservation
n ECONOMICAL RISKS
cost o construction, supplies,
operations or maintenance
Ironically, these are the risks that cause the
most cost overruns and delays, yet can be
prevented so easily.
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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-easibility studies
(industrial, agricultural)
n Design and engineering surveysn Tender support
n Site assessment
n Regulatory compliance
n Technical due diligence
(industrial, agricultural)
n Site surveyn 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 easibilityn O&M economic models
n Price/costs evaluation
n Economic due diligencen O&M economic models
n Price/costs evaluation
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ENGINEERING, PROCUREMENT,
CONSTRUCTION (EPC)OPERATION & MAINTENANCE (O&M)
n Project management
n Project monitoring
n Manuacturing surveysn Installation surveys
n Regulatory compliance
n Project management systems
n Commissioning survey
n Project certifcation
n Operational survey
n Regulatory compliance
n Equator Principles monitoring
n Health, Saety and Environment
n Equator Principles monitoring
n Health, Saety and Environment
n Costs reviews n Costs reviews
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AGRICULTURAL PROJECTS
SGS has over 130 years o experience
in the agricultural sector. This combined
with our extensive network o experts
and the use o the latest technology
related to precision arming, 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 o growing crops in
specifc regions, soil and weather
conditions, water availability and
others. SGS services include
PROJECT DEVELOPMENT ASSISTENCE
n Field assessment, e.g. identiy and
quantiy the available agricultural land
suitable or the project
n Schedule evaluation by identiying
and describing key milestones
n Propose Management Team by
benchmarking with similar projects
n Evaluate and estimate pest/weed
controls and ertilization
requirements
n Identiy, evaluate and estimate the
costs o equipment and service
suppliers
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 suppliersqualifcations review
n Review and comment on the extent,
quality and costs o activities perormed
n Permits and licenses review
PROJECT MANAGEMENT
n Development plan: soil preparation,
ertility management, planting,
maintenance o the felds, etc.
n Budget control
n Procurement support
n Management Team onsite
n Project management
systems
PROJECT MONITORING
n Milestone monitoring
n Equipment and service cost
evaluation
n Inspection on the quality and quantity
o inputs acquired by the project
n Site visits and progress reports
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Environmental and social issues have
become as important to a project as
fnancial, 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 o industry segments,
including oil, gas and chemical, industrial
sites and parks, energy installations,mining, waste and waste water plants
and transportation inrastructure.
SGS experts, supported by state o the art
technology and monitoring acilities, provide
customers with a comprehensive range o
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 projectpre-validation or validation
(e.g. CDM, JI, VCS)
n Health and saety monitoring and
management
In addition, we provide
n Environmental management
systems certifcation
(e.g. ISO 14001:2004)
n Occupational health and saety
certifcation (e.g. OHSAS 18001)
n Sustainability reporting Assurance
(e.g. Global Reporting Initiative (GRI)
and AA 1000 Assurance Standards)
n Social Accountability 8000 standardcertifcation
n Customised Audit Solutions
ENVIRONMENTAL & SOCIAL RISKS
ENVIRONMENTAL & CERTIFICATION SERVICES
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EQUATOR PRINCIPLES
The Equator Principles are a set o
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
ramework or the implementation o
internal environmental and social
procedures and standards or project
fnancing activities across all industries.
n PRINCIPLE 1
Review and Categorization o 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 9Independent Monitoring and
Reporting
n PRINCIPLE 10
EPFI Reporting
Over 60 banks and fnancial institutions
have voluntarily adopted the Equator
Principles. They provide an eective
project fnance social and environmental
risk management tool, through the
incorporation o IFC Perormance
Standards (PS).
SGS can provide the ollowing services
n Environmental and Social
Assessment to sponsors
(as per Principle 2)
n Independent Reviews or banks,
in particular Mandated Lead
Arrangers (as per Principles 7)
n Independent Monitoring and
Reporting (as per Principles 9)
n Gap analysis o environmental
management systems
n Equator Principles training
SGS continue to oer environmental
and social audit support or the project
as it becomes operational. This includes
Sustainability Customised Audit Solutions
leading to third party Environmental
Management System Certiication
ISO 14001:2004 and Social Accountability
8000 standard certifcation.
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ECONOMIC RISKS
SGS has the combined technical and
economic expertise to understand theimplications o technical issues and risk
on the fnancials o a project, including
fnancial close, payment schedules,
IRRs and other. From a technical point
o view, we can deliver the ollowing
services
DUE DILIGENCE
n Review estimated costs, budget and
fnancial model and identiy possible
cost overruns
n Review insurance and perormance
bond coverage, penalties andliquidated damages
n Evaluate the provisions by comparison
with similar projects costs
n Comparison o construction and
operational costs with similar projects
n Evaluate the operational costs,
capacity and availability o theprojects acilities
n Review the project schedule and
evaluation the impact that possible
delays may have on completion
deadlines
n Documentary verifcation o price o
main suppliers and equipment, using
prevailing market price methodology
PROJECT MONITORING
n Gap analysis o actual
construction costs against
budgetn Identiy cost overruns
n Review schedule and impact o
delays on the projects costs
n Report and suggest correctly
actions, in case o cost overruns
OPERATIONAL & MAINTENANCE
n Gap analysis o actual operationalcosts against budget
n Identiy cost overruns and reduction/
loose in productive capacity
n Identiy maintenance requirement
that many have substantial impact on
production downtimes and
subsequent impact on operating
costs
n Report and suggest correctly actions,
in case o cost overruns or revenue
losses
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WWW.SGS.COM/PROJECTFINANCE
YOU FOUND WHAT YOU LOOK FOR
PROFESSIONAL GLOBAL NETWORK
SGS is the worlds leading inspection,
verifcation, testing and certifcationcompany and is the preerred international
partner or those involved in the felds
o energy, inrastructure, trading and
commodities. Expertise in these areas is
based on years o experience in providing
services to customers all over the world.
SGS solutions help customers worldwide
throughout their projects liecycle byproviding services, such as research and
development, due diligence, surveys,
project monitoring and management,
verifcation o production, manuacturing,
processing and distribution o projects
outputs to the end user.
With a global network o over 1,000
ofces in 150 countries, our 50,000employees are committed to turning
high standard o quality and service
o SGS into a worldwide benchmark.
100+ officesin North America
80+ offices
in Latin America
100+ offices
in Africa/Middle East
270+ offices
in Europe
Geneva
160+ offices
in Asia/Pacific
SGS SA
1 place des Alpes, P.O. Box 2152, 1211 Geneva 1, T +41 22 739 91 11, F +41 22 739 98 86, [email protected]
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