How to Successfully Develop Projects
(Room G107)
09 Jun 15
4:00 PM
-
5:30 PM
Tracks:
Theme: Europe's Transitioning Power Sector, Theme: Renewable Energy Strategy, Business & Integration
How to Successfully Develop Projects
By Ravi S Iyer, PE
The Davis Group
2800 Wyeth Court, Suite 101
Davis, CA 95618-7612, USA
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9 out of 10 projects, under consideration, are unsuccessful and often never completed. The challenge is:
- To find the project, with the best potential for success
- To find it as soon as possible, without unduly expending resources on the screening and selection process
- To devote and focus the bulk of the resources to the project, with a potential for success.
Projects have two distinct phases:
(a) The Development Phase
(b) The Management Phase.
The Project Development phase includes all efforts performed prior to obtaining financing. They include preparing a 3 -4 page term sheet. The term sheet is used:
- To select and build a winning stakeholder team
- On a macro level, to identify information needed and prepare action items
- As a preliminary due diligence exercise
-To test the project for the six fundamental criteria
- For the selected project, the term sheet will serve at the “mother of all documents”
Usually, a good term sheet will identify two of the ten projects with potential to succeed.
In the Project Management phase the scope, budget and schedule requirements of the Project are value engineered, controlled and successfully met.
This paper will systematically explain, using real world examples, how the two phases can be executed successfully using well written documents. Writing a tightly written term sheet is often a difficult task. It requires fully addressing 12 elements, known as "Double Rubik's Cubes". The term sheet is a tightly written "living" document that forms the overall matrix for all project documents, such as engineering design, financing, ownership and permitting. The term sheet fully explains the Project from a macro point of view, leaving the details to the subsequent documents to address.