Dear K. Treeboon,
By way of introduction, I am Sandeep Shenoy working in the PEMA team in Singapore. I have closely worked with your colleagues in Singapore and will be the project manager for Project BSP 7.5MW going forward till Cherry’s replacement comes on board.
Please find attached the draft Project BSP 7.5MW Solar preliminary insurance due diligence report for your reference.
Based on the information provided, Marsh is of an opinion as of date of this report that the effected covers arranged by BSP are in full force and effect. Though the effected insurance program complies with the Schedule 13-Financing Insurances of the executed CFA, the same does not comply with the reference to Articles 20.13 Financing Insurances. The clause (a) (ii) within the Articles 20.13 requires BSP to purchase Business Interruption cover. Therefore we recommend procuring Business Interruption Insurance at least for the amount of the fixed operating cost, increased cost of working and debt service which shall include accruals for principal repayments anticipated during the indemnity period to fully comply with the CFA.
Upon receipt of all the outstanding information stated within our Preliminary report, we will proceed to finalize the report. In the meanwhile let us know in case you have any queries on the report. Thanks.
Also once we issue the Final report, we would need UOB to execute the reliance letter in order to rely on our final report. Attached is a format for your ready reference. Thanks.