A key challenge for the project was to ensure that the most appropriate commercial package and performance security arrangements for EfW plant construction, operation and eventual termination were delivered.
A key part of our approach was establishing and maintaining strong relationships with the lenders, sponsors and subcontractors.
We engaged with the sponsor early in the project to check that lender considerations were built into the solution development process. We also worked with the sponsor on detailed ‘side projects’ to deal with any technical issues the lenders had. These involved our in-house technical specialists working with a database of plant performance information and sponsor plant reference data. The trust we developed with the sponsor enabled us to secure the insight only their reference data could provide.
By leading negotiations between the sponsor and their subcontractors, we guaranteed that key technical performance aspects of the EfW plant were underwritten by robust commercial arrangements. We produced a commercial analysis capable of aligning with fluid market conditions and changing financial situations using models developed over many projects.
Alongside market-standard positions, we also incorporated project-specific features. Designing commercial packages and contract positions for the lenders in this way enabled us to achieve a balance of risk for all parties that facilitated deal progression and closure.