Lenders' Technical Advisor (Technical Due Diligence, Construction Monitoring and Operations Monitoring) to EBRD on Kaltun Wind Power Project

Client: Tractebel Engineering S.r.l. - Belgium (work done for EBRD)

Name of partner(s): NA

Start/Completion Date: June 2020 – September 2020

Project description: The objective of this consultancy assignment was to carry out a technical due diligence (TDD) in line with international standards and provide the Lenders with a report on the technical aspects and risks of the Project in order to enable the Lenders to assess whether the Project Company will have the capacity to service the proposed loan. The Consultant task was to review and opine on the project certification according to IEC standards or equivalent, and covering, inter alia: Site Certification, Foundations Certification and Turbine Certification. Based on the findings of the TDD report, the Consultant task was to advise the Lenders on any technical matters during the negotiation of the financing documents until and verify the completion of all conditions precedent to achieving Financial Close. The Consultant also produced a full, detailed, bankable and independent energy yield report based on bankable wind resource data provided by the Client. The Consultant also verified the completion of all condition’s precedent to the first disbursement to the extent these relate to technical matters and in addition provided LTA Certificate and advised on the use of proceeds for the first disbursement.

Tractebel Engineering S.r.l has subcontracted SEEC ltd to perform following services:

• Site Visit Visit the Project sites to assess the overall suitability of the site to accommodate ongoing Project operations. Review and comment on:

(i) site topography, terrain, and soil conditions for development and logistics impacts;

(ii) general condition of the grounds and equipment;

(iii) access to available transportation, including roads and bridges, ports, railroads; airports for equipment maintenance, supply and replacement considerations;

(iv) access to offsite facilities for connection to the power grid;

(v) assess the visual and environmental impacts;

(vi) weather conditions (extreme wind conditions due e.g. to climate change, but also sand storms, icing etc.);

(vii) any other material factors including any archaeological type findings.

• Review of Permits, Agreements and Licences The Consultant task was to review and opine on the status of construction and operation permitting and outline outstanding permits required for the construction and operation of the Project. The Consultant has provided support to the Bank’s legal advisor for the review of relevant documents under this section to avoid an overlap of the scopes. The Consultant has assisted with the technical aspect of these documents and has reviewed and opined on technical aspects of construction and operations licenses, including: (i) List and status of required licences, permits, agreements and approvals;

(i) Land usage permits, rights of way, ownership;

(ii) Building permits;

(iii) Environmental permits;

(iv) Approvals for transmission lines, substation etc;

(v) Qualifications/approvals required to benefit from the FiT, PPA, grid connection agreements; and

(vi) Other required legal documents;

From these documents, the Consultant has identified requirements and/or restrictions which could affect the completion of construction and operation of the Project. Based on the analyses performed Consultant has advised the Bank on any curtailment risks and consequent impact on energy yield.