Breakdown of an Infrastructure Project

In many deals, there are 3 stages or phases:-

  1. Desktop preliminary evaluation: This is the part where we conduct research on publicly available information ,focusing on key areas like demand, competition, revenue model, and cost (capex and O&M).
  2. Business development or pre-due diligence stage: This is the part where investors have shown some interest to proceed further. Normally, a technical team comprising of engineers in various fields will be deployed to the project site to conduct engineering studies. This can last from 1 week to 2 months depending on the complexity of the project. A typical team size is 5 – 10 engineers.
  3. Due diligence stage: This is the part where external professionals are hired to conduct independent, detailed studies. Normally, 3 groups of professionals are mobilised – an engineering team, a legal team, and financial consultants (like us).

It can take more than a year to achieve financial close. It may take 2 or more years to reach financial close for a large infrastructure project.


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