Finance Emerging Markets

Projects are usually initiated either by government’s ministries directly or by a nominated firm (s) of project management consultants, backed by BG from the central bank or SWF. Based on feasibility studies, these projects range from USD $ 100 million to USD $ billions and fall within the following model and or models: 

Model 1

Upon Ministry’s approval of the nominated contractor along with the financial institution the Ministry will submit a Bank Guarantee via the central banks and/ or an affiliated bank with the appropriate documents outlining project standards, to be signed off by third party professionals (Architects or Quantity Surveyor alike).The BG beneficiary can be the contractor in which case the contracting company can be facilitated/ financed with the construction costs during the implementation phase. Handover and final settlements are agreed based on the terms of a B/T (EPC) model. This form of arrangement can extend to all kinds of projects that your corporation is undertaking, within the specified region (s). 

Model 1a

''Built and Transfer Basis.'' The Process flow of which under an SPV is provided hereunder:

1. The contracting & financing company co-approves the development project (s) with the owners/governments/master developers/others 2. The project owner provides 20% deposit into an SPV for the contractor’s project Initiation expenses and mobilization costs. 3.The remaining cost of the construction will be financed and completed by “Build and Transfer” arrangements. ·3.1 - Bank Guarantee(s) will be issued by the Project owner (Government entity or the designated payee) through an International prime bank, and/ or Government Bond(s) prior to the commencement of the project(s).  ·3.2 - Periodical payment(s) is made by the project owner during the implementation phase followed by final settlement upon completion of the scheduled phase(s).   

Please note that there is no fast and hard rule as to the contract’s terms & conditions and we are sometimes flexible. Nevertheless, we are meticulous in selecting the right company (or group of companies) to carry out the work(s). Furthermore, the ultimate terms and conditions are reviewed prior to project commencements and may, indeed, vary as per the vendor’s merits and project’s nature. 

We also procure for and on behalf of contracting companies in pre-financing of oil & gas production terminals, tank farms, regasification, storage and processing, and structuring of grass roots projects in emerging markets in the Asian, Middle East, Africa and C.I.S Countries and in most cases the nominated project management team enters off take agreements with privately own corporate entities or government ministries worldwide. Other models are applicable once compliance is administered, and the process of due diligence has been verified on behalf of the project management team.