Project experience

From June 2014 until present, our team has been engaged in managing the gold processing plant construction project.

Our team was mainly involved in managing the construction of the gold processing plant with the capacity of 50 tonnes of gold. We did the following:

• Developed a 3D-model of the future plant;
• Verified the project and working documentation;
• Analyzed the project implementation costs;
• Drafted and monitored implementation of a comprehensive project schedule;
• Monitored supplies;
• Technical control of the construction and assembly work quality.

In May 2016 — February 2017, Deloitte CIS rendered independent review services to the parties of the EPC contract involving preparation of the engineering documentation, construction, pre-commissioning work and the reaching of the design capacity.

Main lines of work performed by our team:

• Reviewed the state of the construction in progress prior to the 72-hour acceptance trial;
• Monitored the progress and outcome of the pre-commissioning work;
• Prepared independent report on matters of dispute between the customer and contractor;
• Analyzed accidents and reasons for breakdowns of the plant equipment;
• Performed financial and technical audit upon the completion of the project.

In June 2015 - February 2016, our team participated in managing a RUB 2.5 bn logistics center construction project in St. Petersburg with a total area of 21,000 sq. m.

Main lines of work performed by our team:

• Verified the scope of the completed works and performed the reconciliation of the acceptance certificates (Form KS-2) and invoices paid;
• Technical control of the construction and assembly work quality;
• Monitored the implementation of the work schedule;
• Verified the project and working documentation;
• Analyzed the project budget.

In June 2014 — September 2016, our team participated in managing the construction of four 17 km ski trails.

Main lines of work performed by our team:

• Verified the scope of the completed works and performed the reconciliation of the acceptance certificates (Form KS-2) and invoices paid;
• Technical control of the construction and assembly work quality;
• Verified the project and working documentation;
• Optimized cash expenses;
• Adjusted the current budget and developed the construction budget for 2017;

In February - August 2017, after the decision to suspend the modernization of the refinery was taken, our team performed independent review of costs incurred by the general contractor from the start of the work until the stoppage.

Main lines of work performed by our team:

• Verified the completeness and quality project and working documentation;
• Reviewed the tender documentation and contracts signed by the project participants including subcontractors;
• Developed criteria and assessment methods;
• Reviewed direct and indirect costs incurred during the project implementation compared the cost of selected works;
• Prepared the report including the total amount of costs based on the independent review.

In September-December 2016, Deloitte CIS performed financial and technical audit of RUB 15 bn costs incurred in construction of fertilizer mineshafts

Main lines of work performed by our team:

• Gathered data on the construction budget performance;
• Analyzed all factors of the construction cost growth and assessed the cost substantiation;
• Performed validation or expressed reasonable doubt regarding the appropriate use of funds allocated for construction;
• Identified risks that negatively affected the construction progress (overstated work budget, excessive write-off of the construction materials, etc.);
• Exposed potential conflicts of interest with respect to construction;

In June 2014 - August 2014 our team participated in the review of M5 motor road construction costs amounting to RUB 2 billion.

Main lines of work performed by our team:

• Analyzed the projects completed by the contractor;
• Analyzed the availability of technical equipment based on the documents provided by the company's accounting department; verified property titles and the procurement track record;
• Performed stock-taking of the road construction machinery;
• Reviewed settlements with suppliers of materials and services, as well as with subcontractors;
• Analyzed prices for works, services, materials and equipment used in the production process;
• Identified the facts of unintended use of cash and/or distortions in the reports.

Our team performed financial and technical audits as part of the RUB 2.5 billion logistics center construction project in St. Petersburg covering a total area of 21,000 sq. m.

Key tasks performed by our team:

• Identified affiliations between the contractors providing services related to land plot issues;
• Identified potentially fake tenders for contractor selection;
• Performed validation or expressed reasonable doubt regarding the appropriate use of funds allocated for construction;
• Identified ineffective control over financing;
• Identified a fictitious scope of work included in the KS-2 certificates, which appeared to be higher than those in the project documentation were.

In 2015, the engineering team was engaged to assist with a financial and technical review of the client’s properties under construction (concert halls, spa hotels) required for the development of a ski resort’s infrastructure.

Key tasks performed by our team:

• Verified the scope of completed work and performed a reconciliation of the acceptance certificates (Form KS-2) and invoices paid;
• Verified the project and work documentation;
• Reviewed the quality of the work performed;
• Reviewed the construction costs for the selected properties.

Technology and price audit of M-11 (Moscow-St. Petersburg) highway construction project (543-684km) covered the following areas

Technology audit:

• Analyzed the transportation model including the traffic load assessment and the traffic capacity calculation;
• Reviewed the project documentation including the expert assessment of decisions made within the project;
• Analyzed the road siting;
• Analyzed the input data;
• Verified the compliance of the project with the road traffic safety requirements;
• Assessed the environmental and social impact.

Price audit:

• Performed comparison with peer projects;
• Analyzed the results of the preliminary assessment of land plot buyout costs;
• Analyzed costs and service life;
• Verified feasibility and reliability of model assumptions relating to the amount, structure and distribution of operating costs;
• Verified the substantiation and reliability of calculations relating to state financing at the investment and operational stages of the project.

Location: St. Peterburg, Leningrad and Novgorod Regions

Road section length: 138,8 km

Traffic loadestimate: 22,000 - 26,000 vehicles per day

Road category: 1A

Number oflanes: 6/4

Performed technology and price audits of railway infrastructure development projects for BAM and Transsib covered the following areas:

• Performed technology audit of the cargo traffic and traffic capacity, analyzed the project documentation, verified the substantiation of works and project decisions;
• Performed price audit, as well as the analysis of the cost budget and comparison with peer projects;
• Evaluated the commercial and budget performance of the Projects.

Facilities: Railway infrostructure for Baikal-Amur Railway (BAM) and the Trans-Siverian Railway Transsib

Projects: Accomplished more than 20 technology and price audits including the audit of the development project, as well as the technology and price audit for selected projects

Total capex: Over RUB 550 billion

Types of facilities: Railway tracks, bridges, tunnels, stations, etc.