Feasibility Study

As one of the first steps in a Project Financing, Boyadjian and Associates prepares the feasibility study showing the financial and economical viability of the Project. At Boyadjian & Associates, we analyze every technical, financial and other aspect of the Project, including the time frame for completion of the various phases, and clearly set forth all of the financial and other assumptions upon which the conclusions of the study are based.

By using a wide range of modeling software, we are able to facilitate the early investigation into the financial feasibility of the Project including total Project costs, cash flow forecasts, projected financial statements, project's debt capacity, etc. We undertake financial projections, sensitivity analysis and advice on project development matters in discreet forum with knowledgeable industry professionals. Among the services contained in our feasibility studies:

• Review of macroeconomic and microeconomic conditions.

• Initial due diligence on partners' qualifications.

• Basic technological feasibility of the project.

• Underlying economic rationale of the project, utility demand.

• Analysis of the appropriate size and technology of the project.

• Financial modeling: Capital costs, Direct Cost, Operating Cost, Selling Price.

• Preparation of cost estimates for project development, construction, operation and management.

• Development of project financial model with best available data to arrive at IRR.

• Writing brief project profile to be used in communication with other participants.

• Detailed engineering and technical feasibility, environmental compliance.

Funding Advice

A financial plan for a Project includes arrangements for both construction financing and permanent financing. The development of a specific financing plan requires a careful analysis of the potential sources of funds in relation to the Project's year-to-year funds requirements, available cash flow, and availability of credit support mechanism to support project debt.

Boyadjian and Associates is familiar with both the process of raising capital, and the characteristics of specific investment firms. Once the developer has made the decision to raise development funds, we: 

• Find a foreign partner if you don't already have one.

• Select appropriate partners: other developers, equipment vendors, O&M firms, EPC firms, passive equity investors and development assistance funds.

• Approach export credit agencies, multilateral institutions, and other providers of financial support.

• Negotiate terms of finance.

In all instances though the process of securing such financing and guarantees can be cumbersome and time consuming. Once a well-written Project Information Memorandum has been completed and all other development tasks have been finalized, Boyadjian and Associates will help you create investment syndicates and manage competitive solicitations to ensure best financing terms.

Risk Analysis and Assessment

Every investment and financing decision involving allocation of resources under uncertain conditions is associated with some risk, which is in effect, either assumed in the expectation of a higher return, or is transferred to others through hedging and/or contracting arrangements.

Boyadjian and Associates has the ability to understand, measure, and manage risk. Our Risk Analysis and Assessment Team recognizes the uncertainty that surrounds the time and price forecast of the project by accepting that there is a variety of possible outcomes of a range of identifiable risks. We are able to allocate project-specific risks to parties best able to bear them, control performance risk through incentives, and use market hedging instruments for covering market-wide risks arising from fluctuations. We assess the following project-related risks:

Project Company Agreements

Project finance transactions are typically governed by a nexus of long-term formal contracts, written between the Project promoter, the host country government, creditors, input suppliers, contractors, operators, and service providers.

The appropriate legal structure for a project depends on a variety of business, legal, accounting, tax, and regulatory factors. Boyadjian and Associates has the experience and skills to advice our prestigious clients on the Legal Form of the Company, the Construction Contract, the Feedstock Supply Agreements, the Product Offtake deal, Operations Maintenance and Management Agreements, and the Loan and Security Agreement.

As an independent Project Finance Advisor, Boyadjian and Associates:

• Negotiate and finalize all project agreements, and contracts with foreign partners, off-takers, equipment providers, O&M , insurance providers etc.

• Provide in-depth research of all government regulations, incentives and restrictions.

• Write the Project "Book" or "Project Memorandum" for financing.

The benefit to our clients

Boyadjian & Associates is the leading Lebanese Project Finance advisory. Our Project Finance team structures and arranges limited recourse finance, finding innovative solutions and testing the boundaries of what can be done.

Why use the independent adviser Boyadjian and Associates? The answer is that we provide the right independent range of skills. Our advice is never influenced by an interest in particular types of funding. We know how to get the right financing terms and how to close them.

Ultimately, Boyadjian and Associates has either the in-house expertise to cover all development tasks, or the capability of forming a team by taking on partners, consultants or additional personnel to cover client's particular needs. We have:

• Knowledge of the project development process, including knowledge of all key project contracts.

• Sound business practices, management skills and the ability to conduct business in the entire Middle East and Gulf region.

• Technical expertise related to Project engineering, Project Management and plant operations.

• Financial expertise, including knowledge of international business.

• Ability to make critical connections and develop relationships with key foreign parties.