1. TEV Report (Techno-Economic Viability Report)

Definition:
The TEV report is a detailed assessment of the technical feasibility and economic viability of a project. It helps lenders evaluate the project's potential risks and returns.

 

Purpose:

• Determine whether the project is technically feasible and economically viable.

• Identify potential risks and suggest mitigation measures.

• Support lenders in decision-making for project funding.

Key Components:

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Technical Feasibility:

• Technology selection and its adequacy.

• Project design, implementation plan, and timeline.

• Availability of raw materials and other resources.

• Infrastructure and utilities assessment.

• Environmental and regulatory compliance.

Economic Viability:

• Market analysis (demand-supply, competition, etc.).

• Project cost estimation and capital structure.

• Revenue projections and profitability analysis.

• Sensitivity analysis and financial risk evaluation.

Risk Analysis:

• Identification of operational, financial, and market risks.

• Contingency plans and mitigation strategies.

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Who Prepares It?
Typically prepared by specialized consultants, engineers, or financial analysts with expertise in the industry related to the project.

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2. LIE Report (Lenders' Independent Engineer Report)

Definition:
The LIE report is prepared by an independent engineer appointed by the lender to monitor the project's progress, ensuring compliance with agreed terms and technical standards.

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Purpose:

• Provide an unbiased evaluation of the project's development.

• Monitor the utilization of funds and adherence to timelines.

• Confirm technical specifications and implementation quality.

Key Components:

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Project Review:

• Detailed inspection of site progress.

• Assessment of design, materials, and workmanship quality.

Compliance Verification:

• Comparison of actual progress with planned milestones.

• Adherence to regulatory and safety standards.

Fund Utilization:

• Certification of fund deployment.

• Monitoring of cost overruns or fund diversions.

Risk Analysis:

• Identification of potential delays or technical issues.

• Suggest corrective measures to mitigate risks.

Who Prepares It?
An independent engineering consultant or firm with no stake in the project to ensure impartiality.

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Importance in Financing
Both reports are critical for lenders:

• TEV Report ensures the project is worth financing.

• LIE Report ensures the financed funds are being used appropriately and the project is on track.