Mercados EMI supports Lending Institutions in technical and commercial due diligence of projects developed by Borrowers and assists Lender in review of technology & design, adequacy of land acquired, yield assessment, continuous and physical monitoring of implementation, review of statutory approvals, verification of funds utilization and post-commissioning performance reporting.
Mercados EMI Services included:
PHASE I: DUE DILIGENCE (PRE FINANCIAL CLOSURE): Critical Review of Project System Design that covered;
- Review of Conceptual Design, Review of Solar Module Contracts including other items such as inverters, tracker etc
- Review of assessment of solar radiation of PV modules
- Review of Performance calculation & guarantees
- Review of adequacy of power evacuation arrangements
- Review of Infrastructure availability & adequacy
- Review of Construction schedule
- Review of Project cost break-up
- Examining compliance of T&C of sanction
- Review of O&M plan
- Review of permits, approvals, clearances, insurances etc.
- Review of energy generation, losses, PV syst report
- Review and acceptance of Disbursement schedule
- Preparation & Submission of Due Diligence report
Post financial closure, following activities covered
- Monitoring of physical progress of the project on a frequency as desired by lender (preferably 2-3 times during construction), identification of hurdles if any and suggest measures required thereof to ensure progress of the project as per schedule and submit reports to lender.
- Scrutinizing of Efficiency Test Certificate for panels and submission of a report thereon
- Issue drawdown certificate as per prescribed format in the Loan Agreement for every drawdown request submitted by the borrower. Further, compliance status for each and every condition precedent to first draw down and subsequent drawdown as existing in the Loan Agreement while issuing drawdown certificate.
- Co-ordinate with the Lenders’ Financial Advisor as may be necessary and as advised by Lenders for carrying out the tasks assigned under its scope.
- Witness site performance and efficiency tests and to certify their compliance with the guaranteed parameters including comment on accuracy of Contractor’s test report and any discrepancies or errors noted.
After implementation, following activities covered
- Monitoring of physical condition of solar plant (modules, etc.) at project during operation on bi-annual basis (if no performance deficiencies create an emergency visit)
- Client:Rural Electrification Corporation and Power Finance Corporation Limited
- Contract Value:total over INR 75,00,000
- Project Schedulevaried