Financial CloseThe Insurance Review Process

6th November 2014Eoin Greene

Irish Wind Farmers Association Annual Conference 2014

6th November 2014 – Hotel Kilkenny

Introduction• The Crotty Experience• Financial Close Timeline• The Advisors• Facility Agreement - Insurance • Contract Reviews• Issues• Recommendations• The Crotty Team• Thank-you

Crotty Experience• 20 years in Business• Team has experience dating back to 1996• Projects from 1mw to 240mw projects• Ireland/UK/Europe/The Americas/Africa• International Collaborations• International contract Oversight• Last 12 Months

- 15 Owner / Developer Projects- 5 Bank Reviews

Financial Close Time Line

• 4-6 Months (it has been done in 6 weeks)• Contract Review 2-3 months completed before Credit

Committee• Due Diligence Report Issued• Credit Committee Approval – 3 weeks from close• Insurance Placement dates in line with project Timeline• Broker Documents issued on Final Day

The AdvisorsOwner/Borrower• Owner Liaison• Legal• Technical• Insurance

Bank/Funder• Bank Co-ordinator• Legal• Technical• Insurance

Facility Agreement – Insurance

Construction

• Contract Works • Advance Loss of Revenue • Marine Transit • Marine Advance Loss of Revenue • Employers Liability • Public/ Products Liability • Environmental Impairment Liability

(optional) • Terrorism (optional) • Title (optional) • Professional Indemnity (optional)

Operational

• Property Damage

• Business Interruption

• Employers Liability

• Public/Product Liability

• Terrorism (optional)

Facility Agreement - Insurance• Insurance Defined• Bank Protections set out in Lender’s Endorsements and

to be included on policies• Notice of Assignments to Insurers• Acknowledgement of Assignments from Insurers• Insurance Policies• Broker’s Letter of Undertaking issued on Financial Close

date with enclosures

Contracts Review

Construction

• Facility Agreement• Geo Tech Report• Turnkey or Multi Contract ? • Turbine Supply Agreement• Balance of Plant Civils/Electrical• Project Management• Other services Contracts• Grid Connection• Leases/wayleaves/consents

Operational

• Facility Agreement• O&M Warranty• Power Purchase

Agreement• Leases• Other Service Contracts

Issues

• Insurance Responsibilities• Foundation Design• Turbine Model and certification

process not complete• Construction period and 1st

Years Operational cover • Clean Title• Constructional Plant & Irish

Economy• Sub Stations• Indemnity periods

• Marine Surveys & Risk Management• Service Contractors • Policy Documentation

turnaround• Waivers to Contractors

during Operational Period• Warranty Risk and the

Owners Insurance

Recommendations

• Pick the team that will work for you• Have a Checklist• Engagement with Advisors

to achieve practical outcomes

- Debate matters off line for updating on conference calls- Flexibility- Turnaround

• Don’t forget Claims Protocol• No Break in in

Construction and 1st Years Operational• Closing date can be quick

in the end - Be Ready - Document Ready- No last minute issues

Crotty

THANK-YOU!

Irish Wind Farmers Association Annual Conference 2014

6th November 2014 – Hotel Kilkenny