Case Study2: Due diligence on one Chinese power plant.
Client:
A famous PE company
Project Objectives:
To make reasonable decision and reduce the investment risk in terms of Investment, plant site selection, power plant construction, installation & operation, equipment suppliers, insurance, staff as well as feedstock supply.
Methodology:
Secondary research (10%)
Project feasibility study
Year books
Database
Government publications
Primary research (90%)
Interviews with various market participants, including local government, farmers, design institutes, key equipment suppliers, insurance companies, power utilities and other experts in this sector.
Deliverables:
To classify the investment at on plant directly and indirectly
To identify the technology level at home and abroad
To confirm than appropriate insurance policy is in place
To evaluate the logistics on biomass collection, storage and handling are appropriate
To gain insight of the government’s responsibility for the feedstock collection since they do not its ownership
To check if client has the necessary skilled staff and an appropriate training policy for the Plants’ operations
To confirm other aspects, like plant design and specifications, environmental procedures and on- grid capacity.