So, what is Maintained Availability and how does it work?
Maintained Availability is an agreed process of due-diligence that assesses risk from a lenders perspective. It then provides a financial sum that protects against an unexpected reduction in the process availability which results in the project being unable to meet its debt service and operational requirements.
This is delivered through an Insurance product placed by EC3 Brokers that provides financial support to a project's lenders should the operation of the technology or process fail to provide the level of availability necessary to cover debt service.
The core focus is understanding the risk associated with new, relatively unproven technologies and the long-term performance of projects using those technologies. We are not constrained by geography or the magnitude of the risks that our clients seek to insure or finance.
The due-diligence determines an agreed level of availability that enables the issue of a single premium non-cancellable 10-year insurance policy – underwritten by Fidelis Underwriting Ltd (Fidelis) - that can provide up to $50 Million in cover. This protects the investors against the unexpected under-performance of the process thereby ensuring payment of debt service.
Maintained Availability helps to significantly reduce project costs and enhance the project to lenders.by way of opening additional options for risk capacity and protection. Further, it complements lenders other strategies for distributing risk and managing their capital enabling a broader and more effective approach to managing overall project finance risk.
Who is Maintained Availability for?
• Projects Developments in;
- Energy and Power
- Renewable Energy
• Public-Private partnerships
• Infrastructure funds
What you get:
• A 10-year, non-cancellable insurance policy that guarantees the uncertainties of process availability backed by the financial strength of Fidelis.
• Protection that is typically less expensive than using an EPC contractor to protect long term risk
• An enhanced project that is attractive to lenders plus reduced lender credit risk
• Reduced Operation and Maintenance cost
• A higher percentage of lender interest and funding