• Long-term product off-take or marketing agreements with credible entities
• Market due diligence
• Projected local demand growth for refined products.
Payment
• Payment default from off-takers
• Credit worthy off-takers, advance payment for products sale
• Corporate guarantees
• Back-stop from government.
Operations
• Under performance
• Technical Issues
• Cost over-runs
• Experienced operator familiar with technology and conditions in the local market
• Due diligence considerations are elements which will need to be independently reviewed to ensure that they meet project finance standards.
• Alignment of interest among Sponsors/lenders.
Environmental
• Pollution / environmental claims
• Public opposition
• Public consultation
• Environmental and social management plan
• Covenants in financing documentation.
