Green Power Investment Company is developing a wind project in Kochi Prefecture. Mott MacDonald was appointed as an independent engineer by the project’s lenders. Our role was to conduct due diligence and provide a comprehensive report reviewing all the technical aspects of the project and to confirm to the lenders that all project risks were properly mitigated.
Mott MacDonald reviewed financial, technical and environmental assumptions made by the sponsor, including carrying out a technology assessment to learn the design and certification status for the proposed wind turbine generator.
In parallel, we reviewed the contract for supply of wind turbines, with a focus on provisions for warranties and performance guarantees provided by the turbine supplier.
On conducting a thorough review of the project’s contracts and engineering plans, we made several recommendations to the lenders to improve specific terms in several contracts. We provided the lenders with several scenarios to be analysed in the economic model for the lenders to evaluate down-side cases.
With the support and information provided by us, the lenders were able to close the financing within the sponsor’s timeline. Ohorayama wind farm successfully achieved financial close and is now under construction.