Project Development
Upon project identification, Investocom SA conducts a due diligence process to ensure that all relevant project information and investment/finance criteria are aggregated into a project summary document to deliver to funding partners. Investocom focus will in many cases be on deploying resources such as technology and finance that make complex projects to become viable.
Projects are identified, assessed, further developed (to become investor-ready),and submitted to IPN Network for final review, towards financial close and implementation. A typically investor-ready andfully developed project passes through strategic steps.
As a starting point, ideas needs to be generated, then they must be refined into commercially viable business models.
After generating business models, one needs to assess and then select the most commercially viable, qualifying assumptions and identifying key risks as well as defining possible mitigating factors. Initial institutional requirements will now be executed. This predominantly means: SPV Registration, Licensing & Permitting, Securing land and Conducting an EIA (Environmental Impact Assessment).
For purposes of these initial institutional arrangements, the project developers/owners will approach Investocom SA to secure pre-investment or development capital in order to facilitate the project bankability.
Project developers/owners with Investocom SA’s assistance will execute material contracts to minimise project’s uncertainty. The project reaches bankability by completing the following material contracts, which together qualify ittoraise necessary funding:.
- Concluding an EPC contract for the construction of the phase
- Concluding a ‘Raw Materials Supply contract for the
- Concluding an ‘Off-take agreement for the purchase of products’
- Receiving a ‘Positive an EIA record of decision’
On the basis of the terms in the above material contracts, Investocom SA will, through its financiers and/or equity partners raise the project funding to execute the project. And once all financing agreements have been executed, the project will have reached a financial close.
Subsequently, Investocom SA will play a further role of deploying the raised Private Equity and/or Project Finance according to the business model selected.
At this stage the project Funding is deployed to execute the project; and at the completion of construction phase the project will be able to operate and be technically maintained as an independent company.
