The SPV engages with/employs an Engineering Procurement Constructor(s)(EPC), who manages the Engineering, Procurement, and Construction of the project, reporting to the SPV and representing the Project Owner. For each project, a budget and cash flow would be established, in order for NGIF to understand the magnitude of needed project funding, to include a reasonable risk allowance, plus the timing of when budgeted amounts are expected(cashflow).
The project budget will contain cost elements from EPC and Operations & Maintenance (O&M) contractors, plus cost elements and overheads of the SPV. In the bank of NGIF, dedicated account(s) are opened for the individual project(s), account(s) to place the funding, and later to make cost disbursements.
Once the contractors begin producing and committing costs, they shall invoice the SPV monthly, against the required budget and cash flow, as per the entered contract between the contractor and the SPV. The SPV then certifies monthly the contractor payment applications and passes them on to NGIF, including own and agreed-on costs which NGIF will accordingly review, and once it is agreed that it is in accordance with the agreed and/or adjusted budget, payments will be made from NGIF vs. SPV.