What does a lender's technical advisor do?
A lender's technical advisor (LTA), also called the lender's independent engineer, represents banks and financial institutions that fund energy and industrial projects. The LTA confirms that the project is technically sound before financial close and monitors construction until the loan is fully drawn.
Where technical due diligence is typically a point-in-time review for investors, LTA is a continuing role that follows the project through its financing lifecycle.
Pre-financial close: bankability review
- Energy yield and resource review
- Technology, design and supplier assessment
- EPC, O&M and interconnection contract review
- Permitting, environmental and grid-connection status
- Construction schedule and budget review
- Technical inputs to the financial model and base-case assumptions
Construction monitoring and drawdown certification
During construction, the LTA visits site, reviews progress reports and verifies that milestones claimed by the contractor have been achieved before the lender releases funds. Quality, HSE, schedule and change orders are tracked, and the LTA reports risks to the lender early.
Completion and operations
At completion, the LTA reviews commissioning and performance tests, confirms that completion conditions are met and verifies punch-list closure. During operations, periodic reporting tracks availability, performance and compliance with loan covenants.
Why local presence matters
An Oman-based LTA understands local permitting, grid connection with OETC, procurement through Nama PWP, In-Country Value (ICV) requirements and site conditions. VESS combines this local knowledge with international engineering practice and partnerships with Ramboll and SgurrEnergy.
VESS lender experience
VESS has supported Sohar International Bank with technical risk assessment for a bioethanol plant and a red-flag lender TDD for a casted grinding ball plant.
Frequently asked questions
Who appoints the lender's technical advisor?
The LTA is appointed by the lenders (or on their behalf) and owes its duty of care to the lenders, even when the borrower pays the fees.
What is drawdown certification?
Before each loan disbursement, the LTA confirms that the construction progress and costs claimed by the borrower are genuine and in line with the approved schedule and budget.
Can one firm act as LTA and owner's engineer on the same project?
Not normally, because it would create a conflict of interest. The LTA must remain independent of the owner and the EPC contractor.
