Page 62 - Phelan Energy Green Ammonia Plant Egypt

Key Risks, Allocation and Mitigation
Type of Risk Nature of Risk Risk Risk Allocation Risk Mitigation
Performance in day-to-day operations can a Operation Risk significant impact on the O&M costs, daily
throughput as well as the end product quality
O&M Wrap Provider
• Initial operations by EPC OEMs
• Fixed Price wrap O&M contract
• Provision of Performance LDs in O&M contract
Debt Service Risk
This risk relates to the Project Company's ability to fulfil its debt obligations during the course of the Project life
Project Company
• Water-tight contractual structure
• Partnerships with reputed and credit-worthy
offtakers
• Debt service conditions with adequate buffer
Floating basis interest rates can expose
Floating Interest Rate Risk Sponsors to significant increases in Project Hedging Bank • Long term interest rate swaps
financing costs over the Project life-time
Proper topography and soil properties of the Soil/Project Site Risk Project site are required for stability of the
equipment
EPC Contractor/ Project • Third Party advisors to conduct site studies Company
- Low risk - Medium risk - High risk © Phelan Energy Group
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