Due Diligence / Contracts / Finance

Many financial institutions and other bodies require a level of independent advisory work to be done in order to be certain that any borrowing requirements can be supported by the income that the project will produce over its lifetime. This due diligence work may be most relevant for project finance where the borrowing is without recourse and the borrower may be unable to provide sufficient security beyond the project itself.

In particular, Hydroplan offers finance, contract and renewables-focused due diligence services that look carefully at the whole project including:

• Access and property issues
• Fulfilment of preconstruction planning conditions and restrictions
• Suitability of the civil contractor and other suppliers including the design consultant
• (In the case of hydropower projects) Hydrology and projected average annual energy production and income
• Assessment of the risks including, pipeline design and surge analysis
• Monitoring and reporting during the construction period

The object of these services is to use Hydroplan’s experience to help other projects to be built safely and to a consistent level of quality that will be able to meet all future repayment requirements.  In addition, Hydroplan offers renewables due diligence services relating to evaluations of existing schemes where an owner may wish to extend borrowings for further development. As well as written expert opinion for insurance purposes, including assessment of liability following mechanical breakdown and resolution of other disputes, including marital divorce.  Hydroplan has been asked to provide due diligence reports for a variety of projects that include:

• High head schemes with or without storage
• Pelton and Francis turbines
• Schemes with single or multiple intakes
• Large low head schemes using Kaplan turbines and Archimedean Screw Turbines
• Retro-fitting of compensation turbines in large dams
• Modelling of thermal plumes from conventional fossil fuel power stations
• Solar PV due diligence

Hydroplan is a preferred technical hydropower due diligence advisor to several banks in the UK and internationally.