How to invest in Russia: Technical Due Diligence

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How to invest in Russia Technical Due
Diligence

• Moscow, 14th of December 2007

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INVESTING IN RUSSIA

• Many parties involved
• Conflict of interests

Investor

• Stay within the budget
• Completed in time
• Cost-effective
• Avoid accidents
• Quality outcome

Designer
Contractor
Suppliers
Subcontractors
Authorities
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FEASIBILITY STUDY PHASE

• Which permits, certificates, licenses and other
  approvals are required to undertake engineering,
  construction and other technical activities?
• Are all statutory requirements followed to
  legally and safely operate the site?
• Is the facility duly equipped and infrastructure
  available to ensure reliable performance and
  achieve the plants business and operational
  goals?
• Are there management systems in place to enable
  sustainable performance of the facility?

Approvals due diligence
Technical audit of the sites status
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PROCUREMENT PHASE

• What are certification requirements for all
  project supplies?
• How to clearly formulate the terms of reference
  for subcontractors?

Certification due diligence
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CONSTRUCTION BUDGETING PHASE

• Is the estimate correct? Which proposal to choose
  as a result of the tender?
• not over-valued
• not under-valued
• Do actual expenses comply with the approved
  budget?
• Are unforeseen expenditures justified?

Budget verification
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CONSTRUCTION PERFORMANCE PHASE

• Does the project progress according to the
  schedule?
• Do work volumes comply with the approved designs
  plans?
• Do actual resources (materials, equipment,
  manpower) correspond to standards the approved
  budget?
• Do methods, technologies work quality comply
  with standards regulations?
• What should be done in order to comply?
• changes in design, technical solutions,
  organisational changes

Technical supervision (Tekhnadzor)
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MORE INFORMATION

• Tatiana Apatovskaya, Marketing Manger for Russia
• E-mail Tatiana.Apatovskaya_at_sgs.com
• Office ph 7 [phone]
• Mobile ph 7 [phone]
• WWW.RU.SGS.COM/ind