Topic of Presentation: TEV & LIE works of Techspro

Presenter: Ruben Sen

1. Objective: To understand the work done on TEV and LIE studies by Techspro as the technical
consultancy arm for Financial service providers, like LSI Financial services, dealing in project
Techno-Economic Feasibility study, Project Management consultancy etc. These financial service
providers are appointed by lending institutions like banks and funding institutes who provide
funds/ term loans to the business houses for the projects . This presentation will explain in detail
about the scope and the exact working involved in carrying out a TEV / LIE study with reporting.

2. Topic : TEV & LIE study – the presentation will explain in details on the TEV and LIE studies and
reporting with examples. A brief glance into the subject is as follows.
a. TEV - Techno Economic Viability
i. It is the study of a project involving the evaluation of the project based on its technical
and financial information, to comment on its technological feasibility and economic
viability carried out on behalf of lending institutes for them to approve and sanction the
funds requested.
ii. The study reviews the risks associated with various aspects of the project like the
technology selected, market risks, regulatory risks, financial risks etc, and critically
analyses the acceptability and the degree of the risks to finally comment and recommend
for selection to the lending institutions.
 Technical feasibility – this is the part of the study that is mainly carried out by the
engineers of Techspro as domain experts.
 This study involves in main, but not limited to, various aspects of the project like
an assessment of the selected land, assessment of suitability and availability of
infrastructure needed for the activity of the company, approvals required, raw
material availability, technology selected and credentials of technology provider,
availability of skilled manpower, experience and skill levels of the management
team, project team and the operations team, financial credibility of the business
owners, market potential of the product, marketing strategies, demand vs supply
analysis, existing and future competitions, future cash flows, profitability etc.
 The study involves collecting all relevant information, review and analysis of the
information, a site visit, onsite audit and discussion with management and
project team and finally preparing the technical evaluation part of the TEV report
with recommendations and expert comments and submitting it to LSI for
completing the economic viability with the financial analysis and prepare the
final TEV report for submitting to the bank / lending institution.

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 b. LIE – Lender’s Independent Engineers
i. The Lender’s Independent Engineer’s (LIE) report is a detailed evaluation conducted by
an independent engineer chosen by the lender once the funds have been sanctioned
and project implementation starts.
ii. It assesses the technical aspects and potential risks associated with a project. This
report helps the lender understand the project’s feasibility, construction progress,
adherence to technical standards, and overall performance.
iii. It provides valuable insights to the lender, enabling them to make informed decisions
about financing and managing technical risks. Essentially, the LIE report ensures that
the lender has a clear understanding of the project’s technical aspects and potential
challenges before providing financial support.
iv. The LIE report scope includes assessing the project’s cost and providing comments on
its reasonableness, review of contracts and its main contents like LDs and Performance
guarantees, review of approvals and NOCs, review of the technology and process
design along with its execution.
v. LIE team monitors the project during its execution stage till the commencement of
commercial production and stabilization. For this LIE team is also required to visit
project site and submit reports every quarter and appraise the lenders about the
progress.

3. Role of Techspro: Techspro’s team of engineers with their experience and knowledge in
different fields does the technical review for TEVs and LIE studies as the technical arm of LSI
and other financial institutions.
In the presentation we will have a greater exposure to the details of Techspro’s scope of work
and methodology for conducting the above studies and submitting reports.

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