Risk management : Due Diligence

On the other hand, the structure of the investment makes it previously sub missed into a triple process of external Due Diligence, giving the investor maximum guarantee with respect to the viability of so:

* Due Diligence of the Credit Entity: as it has been mentioned before, the project is financed by a 40/50% by a leasing from the engine. In this case, to authorize it, the Credit Entity makes the project go through a rigorous solvency exam, basically concentrated on the legal projects, solvency and Host’s guarantee, engineering, engine manufacturer and maintenance contracts, setting up businesses and plant operators.

* Due diligence of the manufacturer: given that the manufacturer makes a maintenance contract of the engine/generator group (Genset) where it is compromised that will work in 95% of the time (5% left is on maintenance), previously requests the validation of the project based on: maps, specifications and technical memories on the supply of materials and installation. At the same time, on the period of exploitation, the maintenance of the engine/generator and the rest of the plant will be adjusted by the official established patterns of the manufacturer of the engine, other suppliers and the official regulations in force.

* Due Diligence of the Insurance Company: given the politics of Acapital Cogeneración is to cover any possible events that are able to be insured (with real care in the civil responsibility), the Insurance Company makes an strict study on the project before letting and authorizing the policies.

It also has to be mentioned the official administrative authorizations that will have to determine the energetic viability of the project that represents the legal framework in force at the time of the projects presentation