Financing large-scale infrastructure and development projects with rigorous structure, sustainable impact and bankable execution
Vicage Investment advises and arranges capital for infrastructure across energy, transport, water, social infrastructure and urban development. We combine project finance expertise with local market knowledge and DFI relationships to deliver bankable projects that balance returns with sustainable development outcomes.
Project Types We Finance
Infrastructure projects require tailored capital stacks and execution plans. Vicage structures finance for a broad range of development projects including:
Energy & Power
Utility-scale renewable projects (solar, wind), mini-grids, gas-to-power and hybrid systems. Structuring includes long-term offtake agreements, construction guarantees and O&M contracts.
Transport & Logistics
Roads, bridges, ports, and logistics hubs — focused on PPP concessions, availability payments and revenue-backed financings.
Water & Sanitation
Water infrastructure, desalination plants, wastewater treatment and irrigation projects with a focus on service contracts and blended finance models.
Social Infrastructure
Hospitals, education campuses and affordable housing — financed through project finance, municipal bonds and impact capital.
Urban & Mixed-use Development
Urban regeneration, special economic zones, and mixed-use developments with phased financing and developer equity structures.
Telecoms & Digital Infrastructure
Tower finance, fiber rollout and data centres, often blending commercial capital with strategic anchor tenants.
Common Financing Structures
Selecting the right capital structure is critical. We advise on debt/equity mix, use of concessional capital, risk allocation and credit enhancement tools.
Project Finance (Limited Recourse)
Core model for large infrastructure: project-level SPV, non-recourse or limited-recourse debt, cashflow waterfalls, and detailed risk allocation across EPC contractors, off-takers and sponsors.
Key elements
SPV incorporation, project agreements (EPC, O&M, Offtake), security package (accounts, receivables, pledges), escrow and reserve accounts, step-in rights, and completion guarantees.
Credit enhancement
DFI partial guarantees, export credit agency (ECA) cover, political risk insurance, and subordinated mezzanine tranches to improve senior bankability.
Availability Payment PPPs
Where government pays availability-based fees for a service (road, building). Payment risk is transferred to the public sponsor while operational risk sits with the private concessionaire.
Structure highlights
Long-term concession agreements, performance-based payments, step-in rights, indexed fees and termination compensation frameworks.
Deal Lifecycle & Execution Roadmap
Infrastructure mandates require structured project development phases. Vicage provides advisory across the whole lifecycle.
1. Pre-feasibility & Concept
Initial scoping, high-level financials, stakeholder mapping, and initial permitting review.
2. Feasibility & Structuring
Technical, financial, legal and environmental studies (bankable feasibility) and preferred capital stack designed.
3. Procurement & Contracting
EPC tender design, bid evaluation, contract negotiation and performance securities.
4. Financial Close
Legal documentation, drawdown mechanics, escrow setup and initial equity injection at financial close.
5. Construction & Commissioning
Monitoring construction milestones, release of tranches, technical verifications and handover to operations.
6. Operations & Maintenance
O&M oversight, performance ramp-up, tariff adjustments and periodic audits.
7. Refinance / Exit
Refinance with long-term lenders or structured exit for sponsors and project investors.
Procurement best-practices
- Transparent tendering and clear evaluation criteria
- Pre-qualification to filter technical and financial capabilities
- Performance bonds, parent company guarantees and liquidated damages
- Independent engineer oversight during construction
Risk Allocation & Mitigation
A rigorous risk matrix and mitigation toolkit is central to bankability. We identify residual risks and design credit enhancements to allocate them to the parties best placed to manage them.
Construction Risk
Mitigants: fixed-price EPC, completion guarantees, performance bonds, robust liquidated damages and independent engineer oversight.
Offtake / Demand Risk
Mitigants: long-term PPAs, minimum guarantees, demand guarantees, flexible capacity mechanisms and blended concessional support for shortfalls.
Political & Sovereign Risk
Mitigants: political risk insurance (MIGA), host government guarantees, DFI involvement and escrowed receivables.
FX & Revenue Repatriation
For projects with local currency revenues and foreign currency debt, we model FX exposure and design hedging or natural hedge strategies (local currency financing, indexed tariffs, currency conversion support from DFIs).
ESG, Community Engagement & Legacy
Projects must generate social value while protecting the environment. Vicage embeds ESG requirements from early-stage assessment through to verification and reporting.
Environmental Standards
Environmental assessments, biodiversity mitigation plans, emissions monitoring and climate resilience measures are integrated into project design where relevant.
Examples
Solar siting to minimise land-use conflict, wastewater treatment upgrades for industrial projects, and supply chain traceability for construction materials.
Verification & Reporting
We work with third-party verifiers for impact reporting and sustainability certifications. Reporting cadence and KPIs are contractually embedded into financing documents when required.
Modeling, Due Diligence & Bankability Tests
Bankable models and bankability tests are core deliverables — stress-tested financial models, sensitivity analysis, DSCR, LLCR, PLCR and other credit metrics are used to assess viability.
Key Deliverables
- Integrated financial model (CAPEX schedule, construction drawdown, revenue curves, OPEX)
- DSCR and LLCR stress tables under multiple scenarios
- Cashflow waterfall and debt service mechanics
- Independent engineer and technical due diligence reports
- Environmental and social impact assessments (ESIA)
Legal Documentation & Security Package
A clear legal framework protects stakeholders and enables enforcement. Our team coordinates cross-jurisdictional counsel to perfect security and align intercreditor arrangements.
Representative Case Studies
Selected mandates showcasing Vicage’s delivery across project types and complexity.
10MW Solar IPP — East Africa
Overview: Structured an $11.5m project finance package combining sponsor equity, DFI concessional debt and commercial bank senior debt. Deliverables included a bankable PPA, an EPC contract with performance guarantees and an O&M agreement. Outcome: successful financial close and grid connection within 18 months.
Road Concession — West Africa
Overview: Advised on PPP concession design, availability payment structuring and bidder procurement. Outcome: multi-lender facility secured with multilayered guarantees and a 20-year concession contract.
Procurement, Contracts & Performance Management
Efficient procurement and resilient contracting reduce execution risk. We provide templates and support for EPC tendering, bid evaluation, and contract negotiation.
EPC Contract Essentials
- Fixed-price, date-certain obligations where possible
- Performance guarantees and liquidated damages
- Retention mechanisms and warranty periods
- Clear interface management between multiple contractors
Sample Term Sheet (Indicative)
A plain-language outline of typical headline terms for a senior debt facility to finance an infrastructure SPV.
Fees, Incentives & Commercial Considerations
Project financings include arrangement fees, commitment fees and ongoing administrative charges. Sustainable projects may qualify for concessional rates and blended finance incentives.
Arrangement Fees
Typically 0.5% — 2% depending on complexity and ticket size.
DFI Concessional Tranches
Lower-cost tranches or risk-sharing instruments to improve project IRR and debt service capacity.
Success / Commitment
Commitment fees on undrawn amounts and success fees for arranging complex syndicates or securing guarantees.
Comprehensive Developer Checklist
- Promoter capacity statement and financial statements
- Preliminary environmental & social screening
- Land rights and site control evidence
- Draft EPC, O&M and offtake agreements
- Detailed CAPEX and OPEX budgets
- Permits, licences and local approvals
- Insurance plan and risk mitigation schedule
- Proposed capital structure and sponsor commitments
Frequently Asked Questions
Bankability depends on predictable cashflows, enforceable contracts (PPA/PPA-like arrangements), creditworthy counterparties or government support, clear security and strong technical due diligence.
Timelines vary: small-scale projects may close in 6–9 months post-feasibility, while large infrastructure projects often require 12–36 months to reach financial close depending on permitting and syndication complexity.
Yes. We have longstanding relationships with DFIs and MDBs and can structure blended finance solutions that combine commercial and concessional capital.
Start Your Project Mandate
Send us a project brief and we will provide an initial assessment and recommended next steps. Include headline economics and key project documents to expedite review.