Due
Diligence
Due diligence entails the independent analysis
of the engineering, commercial, regulatory, and environmental aspects
of a project. Whether lender or sponsor, it’s crucial to thoroughly grasp the interrelationships
between a project’s many components. And when you do, you can
effectively minimize the inevitable risks arising from technical and
financial assumptions related to the construction and operation of
the facility.
• Pre-finance
• Acquisition
• Refinance
• Divestiture
Thinking Outside the Pipe
A pipeline company was seeking
financing for a major new installation but needed to verify the pipeline’s
capacity for the lender. However, the proposed test would be expensive
and would likely delay closing – unacceptable to all parties.
E3’s solution? We tested individual compressors
at maximum compressor load, then used an independent hydraulic model
to determine whether the tested compressors would support full pipeline
capacity. Our test identified the main risk to the lender, a risk
all sides deemed manageable. The lenders closed the financing package
immediately.
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