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Phases of Infrastructure Development
Every development happens in different phases. In the world of infrastructure development, the undertaking can span many years and involve different stakeholders along the way. Since every phase has its economic and contractual obligations, the financing should also keep up. The right Projects Finance WorldWide can ensure every phase is achieved its milestone within the timeline.
- Planning Phase
Feasibility studies, development plans, and contracts are some outputs of the planning phase. These are all critical to the success of the initiative. Since the different parties are involved to set an agreement, the planning process can take a while. Negotiations and re-negotiations are expected to happen and stretch to several months. To secure interest from debt investors and other financing, ratings from rating agencies are important. - Construction Phase
The agreed terms are then put into action. In this high-risk phase, anything can happen. The plans may not be executed as intended and many external factors can influence the construction phase. There must be enough time to meet the requirements and allowance for contingencies. - Operational Phase
As the development opens to the intended operations, it begins to generate positive cash flows. Still, risks exist on diminishing defaults and demand risks. At this phase, much of the capital work may be finished but financing need may remain at least for the early stage of operations.
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