The project construction phase begins after the financial close. This is the phase during which the project finance is drawn down and the EPC contractor and subcontractors engaged by the private party/SPV start construction, testing and commissioning of the different components of the project according to an implementation schedule.
The major responsibility related to the implementation tasks in this phase lies with the private party. However, a management process by the implementing agency needs to be in place from the outset to ensure timely completion and satisfactory operation of the project.
The implementing agency and its Project Director oversee the tasks related to project construction and its commissioning. The Project Director and his/her team:
• Take steps in resolving differences in the interpretation of tender conditions;
• Monitor the progress of project delivery and quality of work;
• Oversee the conduct of required tests, evaluate the test results and take decisions as required;
• Consider variations in the contract;
• Inspect equipment to be installed; and
• Certify and provide approvals as may be needed under the contract.
The Project Director may also have responsibilities related to resolution of various implementation issues discussed in Section B of this chapter.
The construction phase ends with the certification of the employed independent engineer and successful commissioning of the project. The end of this process marks with what is known as the commercial operation date (COD), and the project starts delivering the contracted services.