sgs industrial project finance services en

8/3/2019 SGS Industrial Project Finance Services En

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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 Equator Principles

independent review


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 Project management systems

n Commissioning survey

n Project certifcation

n Operational survey


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 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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sgs industrial project finance services en

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