Risk Mitigation Matrix Risks Sources Mitigation strategies Pre-construction risk Delay in sit identification Advancement in the date for signing the PPA Delay in getting the land clearance in state Single window clearance for the renewable project to be institutionalized at the state level Institutionalizing of a clearance desk for renewable project at central level Contractual issues with equipment Focus on selecting EPC contractor Construction Risk supplier, EPC contractor with rich technical experience and sound financial strength with high Lack of capacity to pre-identify energy costs financially viable projects under an EPC approach Put penalty clauses to mitigate time and cost overrun in project Inferior and inefficient execution. components Clauses of the agreement to be Miscalculation of construction customized in order to evince costs payment after the supply of the material/equipment in the Wrong selection of third party as a developers premises sub-contractor for implementation of project Back to back guarantee with the equipment manufacturer and EPC On-site work delays, affecting the provider financing costs Include penalty clauses in contract with EPC provider in case of inferior component Obtain firm bids from contractors for EPC selection Maintain contingencies Evaluate site expenses Include a clause for reimbursement in case of delays Power Generation Risk Ground solar data is sketchy Develop competencies in house for ensuring the validity of solar data Absence of credible and adequate data Include a clause in the contract with equipment suppliers for adjustment in case of misinformation on resource availability Apply adequate contingencies in contract with regards to fluctuations in resource availability
Risk Mitigation Matrix Risks Sources Mitigation strategies Pre-construction risk Delay in sit identification Delay in getting the land clearance in state Advancement in the date for signing the PPA Single window clearance for the renewable project to be institutionalized at the state level Institutionalizing of a clearance desk for renewable project at central level Construction Risk Contractual issues with equipment supplier, EPC contractor Lack of capacity to pre-identify financially viable projects under an EPC approach Inferior and inefficient components Miscalculation of construction costs Wrong selection of third party as a sub-contractor for implementation of project On-site work delays, affecting the financing costs Focus on selecting EPC contractor with rich technical experience and sound financial strength with high energy costs Put penalty clauses to mitigate time and cost overrun in project execution. Clauses of the agreement to be customized in order to evince payment after the supply of the material/equipment in the developers premises Back to back guarantee with the equipment manufacturer and EPC provider Include penalty clauses in contract with EPC provider in case of inferior component Obtain firm bids from contractors for EPC selection Maintain contingencies Evaluate site expenses Include a clause for reimbursement in case of delays Power Generation Risk Ground solar data is sketchy Absence of credible and adequate data Develop competencies in house for ensuring the validity of solar data Include a clause in the contract with equipment suppliers for adjustment in case of misinformation on resource availability Apply adequate contingencies in contract with regards to fluctuations in resource availability
PPP-Structuring-final-doc-with-cover-page.docx