Technical and ESG due diligence for waste management assets
At a glance
Leading integrated energy company PT Toba Bara Energi (TBE) sought to make an informed decision on the potential acquisition of SembWaste’s waste management assets, including a waste-to-energy plant, a material recycling facility, a fleet of 300 vehicles and multiple depots. Technical and ESG due diligence was needed to identify key issues that could materially impact the value of the assets.
The challenge
Leading integrated energy company PT Toba Bara Energi (TBE) sought to make an informed decision on the potential acquisition of SembWaste’s waste management assets, including a waste-to-energy plant, a material recycling facility, a fleet of 300 vehicles and multiple depots. Technical and ESG due diligence was needed to identify key issues that could materially impact the value of the assets.
Our response
GHD was engaged to provide technical and ESG due diligence of the assets.
We reviewed the information/data available and conducted regular interviews and review sessions with both TBE and SembWaste. This also included a site visit to perform a visual validation of the information reviewed. GHD was able to develop a robust risk assessment that also included recommendations to mitigate the risks identified. Along with the technical review and risk assessment, we successfully reviewed and commented on the capital and operating expenditure projections made based on the technical review of the assets undertaken to further support TBE’s investment decision. We followed up by supporting TBE in discussion with the relevant lenders, advising on the risks, mitigations, and opportunities identified.
Additionally, we listed the risks that could conceivably impact the viability of the acquisition and proposing future mitigation measures. These measures included conducting statutory and other inspections alongside with allocating financial provisions. We also conducted multiple scope site visits to facilitate the data-gathering process.
The impact
TBE was successful in its acquisition of the SembWaste assets, following the completion of GHD’s Technical and ESG Due Diligence, which included both red flag and due diligence reporting. ENG_Press_Release_SembWaste_Closing_170325.pdf
The successful acquisition of the waste collection company, backed by GHD’s technical and ESG due diligence, marked a significant milestone in our client's sustainability journey. Aligning with its strategic commitment to carbon neutrality, this acquisition has broadened TBE’s capabilities in waste collection and overall asset portfolio.
The image used in this article is for illustrative purposes only and does not represent the actual project.