|(study of investment opportunities of the borrower to attract the export credit for the clients’project)|
Tinowa Group & technical partners performs the preliminary investment stage of the project. This company specializes in the field of the project financing and engineering. This inexpensive service of the analytical study of the expensive (technical) part of the project and terms of participation of the companies-co-contractors from the country of financing allows the Client of the project determining the exact parameters of the project and developing the organizational and financial scheme of the project implementation and also the marketing of the planned output and the type of credit repayment. This project expertise develops the work order for the project financing.
Tinowa Group develops the Feasibility Study – this is always a unique synthesis of the different specialists: process engineers, designers, financial experts, economists, lawyers, builders, marketing specialists and many others, this allows developing a project in the best competitive execution. The execution of the Feasibility Study by the Client always leads to many mistakes.
Feasibility Study is a pre-investment phase of the project. Within the frameworks of the international financing the execution of the Feasibility Study is an important if not the principal stage of the project implementation. In this regard it should be mentioned that the execution of the Feasibility Study is required for every type of project, from the construction to the commercial one, it allows attracting the finances or direct investments into the project.
Feasibility Study is a technical and economic assessment of the project and detailed study of the investment opportunities of the project developing the comprehensive practical schemes of its implementation and determination and coordination of the practical participants of the project implementation from the loan provider as well as from the borrower, development of the protective mechanism of the credits invested and the accurate scheme of their repayment.
Depending upon the complexity and volume of the project the pre-investment phase can have three stages, in each of them the researches are performed and the corresponding main pre-project documents are developed.
At the first stage of the pre-investment phase, called “Identification”, the objective of the financing is studied, the program of the pre-investment researches is formed, the designation and capacity of the object of financing are determined, nomenclature of products or services, address of project, the principals requirements and terms of the project owner and the credit provider are taken into account, contracts for the execution of the Feasibility Study – pre-investment studies are developed, agreed and executed.
The first stage of work of Tinowa Group with the companies is consultation in its direct designation and expert stage, for the implementation of which the client is rendered the professional services in the field of the project financing and the ways of implementation of the project financing are prepared. The execution of this stage helps the client to determine efficiently the place of the project in the system of the international financing and lending. At this stage also the main document, i.e. the requirements specification to the project for execution of the Feasibility Study is executed.
At the second stage of the pre-investment phase, the so-called “Рrе-Feasibility Study”, that, as a rule, is performed for the complicated and large projects, the development of the preliminary scheme of the projects is provided and the preliminary group of the project participants is determined. This document provides the selection of the most acceptable variant of the project financing, determination of the approximate technical and economic values within the range of the available financing of the client.
At the third stage of the pre-investment phase, the so-called technical and economic analysis of the reasonability of investment/financing “Feasibility Study” is composed, the report of the investment opportunities “Appraisal Report” is performed, the investment plan of the project “Investment Planning” is developed. The development of the parts of Feasibility Study allows developing “Bank Tools” and organizing the financing of the project “Full combined Financings” in complete volume and according to the scheduled specified in the Feasibility Study.
When executing Feasibility Study depending upon the type of project the conclusions are made of the business need, technical capability, commercial, economic and social reasonability of the investments/credits for the construction of the object under the set parameters, observance of the requirements and terms of construction, taking into account the environmental and operating characteristics. The borrower’s capabilities to accept and manage the export credit are determined as well as his professional readiness, saleability of the services or products planned by the project – all this together minimizes the risks and protects the provided export credits.
The result of this stage is decision made by the client and the credit provided regarding the reasonability of the further investment/financing and development of the project/commercial dcumentation. The structure of the Feasibility Study is determined by the client in the requirements specifications for the pre-project documentation.
The bank tools created by Tinowa Group as a result of execution of the Feasibility Study are placed into the European bank-credit provider together with the contractor agreements and sales contracts between the Borrower – Client of the project and the Exporter of services or products to perform the credit analytics and decision-making regarding the opening of the credit line.
Using the executed Feasibility Study and available practical agreements, the creditor bank develops the terms of a credit agreement together with the borrower and opens the credit line for the project implementation.
Tinowa Group (Czech Republic) performs the project financing and project management with the organization of the export financing for the projects in various countries basing upon the rules of the European Union.
Based upon the contract between Tinowa Group and the Client of the project the execution of the pre-investment stage of the project and placement of the credit resources for financing for the project implementation are provided. The execution and payment of the project financing is made in 3 or 4 stages depending upon the complexity of the project.
The cost of project financing is determined taking into account the recommendations of the World Bank and UNIDO agency of OHH investment for every project individually. To develop the Feasibility Study in construction 1.0 – 3.0 % (for small projects) and 0.2 – 1.0 % (for large projects) is taken.
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Tinowa Group & Partners