Investments to prepare and implement private initiatives

Investments to prepare and implement private initiatives To launch a private initiative, InfraKAP invests in preparing an initiator – a special-purpose company, engaging interested specialized organizations (operators, builders, and financial investors).

The special-purpose company will send a letter of interest in preparing a private initiative to the relevant executive authority. Based on the results of studying that letter, the interaction, including the involvement of other interested executive authorities, will be arranged to exchange information and agree upon project requirements.

At the expense of own and raised funds, the special-purpose company will prepare a set of documents required to introduce the initiative (a business plan for the project with an estimate of capital and operating costs based on the detailed engineering solutions, design and construction deadlines, assessment of budgetary impact and commercial services potential, deadline to start rendering services of varied functions, etc., the financial model of the project with the justification of budgetary, economic and cost-effectiveness, draft concession agreement, letters from specialized entities regarding their readiness to carry out certain critical works under the project, letters from financial organizations regarding their readiness to finance the project implementation in the amount no less than 5% of the estimated capital investments volume).

As a result of the procedure, if commercial closure is achieved, the shares of the participants, directly implementing a part of the objectives and functions under the project, increase (options are exercised) taking into account revaluation of the contributions made at the initial stage and implemented during the commercial closure and the project company’s needs in increasing the capital to achieve the financial closure.