If client own multiple facilities, he should decide on the order of priority of the facilities into which he

would like to introduce an ESCO project.

This is a step to examine the possibility of introducing an ESCO project. Upon client request, an

ESCO will visually check client's facility based on the current status of use and management of

energy.

Client will confirm the energy saving measure and its effects and profitability.

At this stage, the possibility of introducing an ESCO project is determined. The

terms for contract agreement & payment security mechanism, escrow account /

revolving letter of credit, for payment to ESCO is finalized.

The ESCO collects detailed data using measuring equipments. (Required time:Several Days).

This step is for examination of the facility for planning comprehensive service.

Client checks and examine the contents of services to be provided by the ESCO,such as baseline

setting, retrofitting schedule, monitoring and verification measures, calculation of energy-saving

effects, fund procurement, guarantee of energy-saving effects, operation management and other

maintenance service, contract system, contract period, etc.

The possibility of introducing an ESCO project is determined.

The contract of the ESCO project is signed.

The ESCO manages the retrofitting work.

This step is conducted by the ESCO. The ESCO periodically checks the amount of saved energy

and verifies the energy-saving effects according to the contract. ESCO also manages the operation of

the facility, and sometimes conducts maintenance for retaining energy-saving performance. ESCO is

reimbursed periodically as per the contract agreement terms during the contract duration.

The ESCO project is completed when the performance contract is terminated. In the

case of a shared saving contract, Energy Efficiency Measures' (EEM's) ownership is

transferred to the client upon completion of the contract.