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“ Infrastructure development offers the foundation on which a country can seize and capitalise on the opportunities ushered in by globalisation and regional integration. Experiences across the region show that FDI and new technologies are most likely to bypass countries with inadequate and poor infrastructure investment climates.”
In traditional financing or conventional direct financing, financing of capital expenditure is done through retained earnings and long term full recourse debt issued to the parent company by lenders where lenders look to the firm’s entire asset portfolio to generate the cash flow to service their loan.
According to Finnerty (1996), “….the raising of funds to finance an economically separable capital investment project in which the providers of the funds look primarily to the cash flow from the project as the source of funds to service their loans and provide the return on their equity invested in the project.”
According to Nevitt & Fabozzi (2000), “A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flow and earnings of that economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan.”
Adoption of a process to enable an independent & objective assessment of the inter-relationship between Technical, Financial, Commercial, Economic, Managerial, Ecological and Social aspects of an investment proposition for arriving at a financing decision
Time Distribution of Project Effort Level of effort (%) Conception Selection Planning & Implementation Evaluation & Termination or Transfer Stages of Project Development Construction & Operational Abandonment