Many Commonwealth countries, particularly small island developing states, find it difficult to identify sources of funds either to help them prepare infrastructure projects or to help pay for the asset itself. Most infrastructure projects have to be funded by bilateral or multilateral development organisations.
Dependence on external support can lead to delay in obtaining such support thus delaying the social and economic benefits arising from the project. Sometimes procedural rules cause difficulty in the country. Indeed, the involvement of external support might lead to projects that seem to be more in the interests of the external parties than in the interest of the Government and its citizens.
We have therefore developed a number of facilities to reduce these challenges.
To help governments improve upstream work we develop project preparation funds in country. These funds are used for two purposes: paying for essential capacity building of public officials, paying for the running costs of PPP Units and paying for technical assistance that will be necessary in most projects. We manage those funds or advise governments on how to manage their own funds.
In PPP projects most socially and economically desirable projects have to be funded partly or entirely by government. If users pay for the service they rarely pay the full economic price. In order to make these desirable projects commercially viable we develop viability gap funds to ensure commercial viability. Again, we either manage those funds or advise governments on how to manage their own funds.
A number of Commonwealth countries experience the problem that national debt is too high for any further assets to be taken on to the accounts of their Government. This restricts development and inhibits external parties from contributing to much-needed social infrastructure projects in the country.
As a solution to this problem, we are setting up a non-governmental organisation (NGO) whose specific purpose is to provide and manage social infrastructure in Commonwealth countries. This NGO will be responsible for delivering much-needed social infrastructure using best procurement and contract management practice.
There will be no government control over the asset and the NGO will own, manage, control and account for the assets on its books. It will use the procurement policies of the host government and it will encourage officials to sit in on the process so that they can learn "on-the-job" with us.
Please contact us for more information on Project Funding