InfraCo

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The project is to establish a credit facility of up to $30 million for use by companies developed by InfraCo. InfraCo is a privately managed, donor funded infrastructure project developer which aims to identify viable infrastructure projects in the energy, water, transport and agribusiness sectors in frontier countries. Once potential projects have been identified, InfraCo will carry out the necessary project development - due diligence, feasibility studies and negotiations on significant project agreements - to the point where the project is ready for financing or construction. The development rights will then be sold through a transparent process to private sector developers/financiers. Sales may take the form of either a one time development fee or ongoing royalty payments (or carried equity interest) from the company that buys the prepared project. It is expected that by doing this, InfraCo should facilitate the realization of projects which would otherwise not be developed. InfraCo will target projects in Africa and in frontier countries in South Asia and South-East Asia. Countries targeted will depend on the sector but will include, for instance, Gambia, Senegal, Mozambique, Namibia, Bangladesh, Cambodia and Indonesia.InfraCo aims to develop and sell about two projects a year with a typical size of $25 to $50 million each. They may be sold at different stages: as developed concepts, as developed and funded projects or, in the case of rehabilitations and expansions, as operating projects. Projects will be chosen on the basis of development value as well as commercial viability. The credit facility would form part of a wider non-exclusive cooperation agreement between IFC and InfraCo.