171117_SECAP of Greater Irbid Municipality_SET_rev2

3. PROJECT DEVELOPMENT/COMMERCIAL ASPECTS
- Project implementation plan – Level 1 (minimum) including a Gantt chart laying out the project timeline, resource
requirements, project development budget, procurement concept (e.g., full turnkey or multi contracting approach),
and O&M concept.
- Option agreements for land access for all privately held land or access roads, or a concession agreement with the
relevant authority.
- Evaluation of the commercial structure of the project. This includes evaluating the project company or companies,
which may involve a Special Purpose Vehicle (SPV), depending on company structures allowed under local law. This
also includes evaluating any off-shore parent-company structures and incorporation location based on legal, financial
and tax criteria corresponding to the project.
- Investment and funding requirements and the investment concept. This should include equity contribution amounts
and sources, equity partner requirements and financing assumptions to be included in the financial model.
- A project structure and risk-mitigation strategy. In many emerging markets, to make a project “bankable” (i.e., able to
attract reasonably-priced debt financing) it is typically necessary to secure credit enhancements, which can be either
private (letters of credit, escrow accounts) or governmental (sovereign guarantees).
- Procurement of Owner’s Engineer. As the intention to proceed with the project grows, so too the technical scope for
the EPC or other technical tendering procurement contracts needs to be drafted and reviewed by the Owner’s
Engineer. The EPC’s Owner’s Engineer scope of work may also include support for the technical procurement (e.g., PV
plant components) and technical design review. The same firm usually follows through as the Owner’s Engineer during
the construction phase.
- Tender and award of Owner’s Counsel to support contracts development and negotiation as well as any relevant legalstructuring
needs and company set-up during the development phase.
STAGE 4 – PERMITTING, CONTRACTS AND FINANCING
After the feasibility stage and assuming that the project still seems to be financially viable, the project moves to the next
stage. This includes obtaining final permits, securing project finance and pre-implementation activities (commercial
contracts). The timing and sequencing of this stage will vary significantly by project, but this phase usually includes the
following activities:
1. Engagement of relevant community or stakeholders.
2. Preparation and submission of relevant permit and licence applications and associated documents for the proposed
project.
3. Environmental and social assessments (agreed in consultation with permitting authority and other statutory bodies),
which may include a full Environmental and Social Impact Assessment (ESIA).
4. Preparation and submission of a grid connection application.
5. Review of the design and any permit/consent conditions; revision of design or consents as needed.
6. Contractor prequalification, ranking, and short list selection.
7. Decision on the financing approach (e.g., sources and proportions of equity and debt, including construction financing).
8. Securing financing for the project.
9. Decision on contracting strategy (i.e., EPC contract or multi-contract).
10. Preparation of solar PV module tender documentation. Supplier/contractor selection and contract negotiations.
11. Preparation of construction or balance of plant tender documentation.
12. Preparation of PPA documentation and final negotiations.
13. Preparation of O&M concept and contracts, as relevant.
14. Preparation of Owner’s Engineer tender (if technical advisor is not continued into construction).
15. Contracting and procurement of relevant insurances (i.e., construction, operation, etc.).
16. Preparation of Lender’s Engineers and Lender’s Council tenders.
17. Finalisation of grid interconnection agreement with grid operator or relevant authority.
18. Preparation of detailed, bankable financial model covering the full lifecycle of the plant. Typically this will only be
completed after negotiating the EPC or equipment and Balance of Plant (BoP) contracts, as well as O&M contracts, so
that the financial model can incorporate final costs of capital and O&M.
19. Completion of a project risk analysis.
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