Due Diligence

This service is mostly for investors requiring due diligence before investing in an actual project, to ensure that all the necessary requirements are being met.

Technical DD – focused on the main functions, rated power and generation achievability, realization feasibility, proper operation, CAPEX and OPEX approval

Legislative DD –focused on the validity of permits and contracts. Essentially worldwide, hydropower plants legally require the following:

  1. Water license and environmental permits (giving the rights to use the water under environmental conditions)
  2. Power purchase agreement (PPA) (stating the rights to sell energy and obligations to buy it)
  3. Land ownership – all affected lands and properties must be contracted for use
  4. Access – some areas are inaccessible or only accessible via private roads. If this area is not double-checked before the project is realised, it can generate huge complications and additional costs later
  5. Economics – the expenditure and profit must make sense from an investment perspective. This part is largely a balance of CAPEX, OPEX, profit generation, financing conditions and the client’s claim on capital appreciation

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