To achieve a construction delivery solution capable of securing non-recourse financing, certain fundamental risk allocation principles need to be recognized. This is achieved on every conventional project financing the world over, but the energy transition is challenging this paradigm.
For energy transition projects incorporating new or scale-up technologies, challenges will arise when looking to satisfy these principles. It would also be legitimate to question if pursuit of these principles can always be reconciled with the need for design optimisation and innovation on projects of this nature.
With our clients, we have revisited conventional approaches to construction procurement to address these tensions and to formulate an adapted turnkey engineering, procurement and construction (EPC) model which can be accepted by contractors, is capable of attracting non-recourse finance and, importantly, enhances overall prospects of successful project delivery.
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Securing Bankable Construction Delivery Terms for Energy Transition Projects
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