An Independent Engineer, also known as the Lender’s Engineer, is a term often given to the engineering representative of the lender, or financier, of a large capital project.
Lending institutions nominate Lenders’ Independent Engineering(LIE) services to monitor the autonomous review of sanctioned projects’ progress. LIE plays a key role in identifying and mitigating risks of the sanctioned projects to safeguard the lending institutions’ interests. LIE visits the project site at regular intervals to provide assessment and appraisal of the lending institutions for the following:
- Physical progress
- Estimated expenditure of the project
- Report the quantum of finance contributed and used on the project to avoid misuse of funds
- Verify whether compilation with the borrower’s obligations under project-related licensing agreements
- Review & advise on various Statutory clearances and approval.
- To verify the progress of the project’s implementation with the schedule and forecasted timelines.
- To review the drawdown schedule of the planned activity.
LIE is also required to check the availability of the necessary infrastructure and suitability of the borrowers’ organization and operational readiness, which can also be extended to verify the completed project and commissioning of any industry.
One of the major roles of the Lender’s Independent Engineer’s report is to give an account of the quality, progress, and maintainability of the infrastructure being generated and commenting about the adequacy of the infrastructure. Sapient Services constantly builds upon the database of this infrastructural information.
