Lender’s Engineer

Lender’s Engineer

Project financing is a key element of invest­ments in the industry and infra­st­ructure sector. In general, a project developer seeks to finance a signi­ficant part of the construction costs by borrowing through a special purpose vehicle, which tends to take the legal form of a limited liability company. For this reason finan­ciers need a compre­hensive risk assessment and a well-documented project basis before making any financing decision, and a suitable process to monitor the progress and quality of the project during implementation.

Role of ILF

ILF provides engineering and management services to enable finan­ciers to evaluate project risks before signing a financing agreement and subse­quently until repayment of financing has been completed.
Using the experience gained from planning and executing signi­ficant investment projects, ILF’s experts make an assessment of the construction budget and schedule and check whether the assump­tions of the finan­ciers are reasonable and include suffi­cient financial reserves.
Additional services rendered by ILF include checking the availa­bility of suffi­cient financial reserves, previous concepts and the financial model for the baseline scenario (base case).

Following financial closure, ILF will monitor progress against plan until repayment of financing has been completed. ILF’s services furthermore include preparing a compa­rison of the project revenues and the repayment requi­re­ments during construction and operation.

Benefits to Clients

ILF has developed a reliable roadmap for the provision of technical advisory services to finan­ciers which comprises pre-defined review and evaluation criteria. This enables ILF to carry out trans­parent and efficient reviews in keeping with the respon­si­bi­lities of a technical advisor to a financier. ILF’s advisory services will provide a clear under­standing and quanti­fi­cation of the major project benefits and risks, and recom­men­da­tions to improve benefits and mitigate risks. As a result, benefits and risks of a project will become more calculable.