In everyday language, a "project" might be a construction job, a product launch, or a business initiative. In the world of infrastructure finance, the word has a much more precise meaning — and understanding that meaning is the first step to building something financeable.
A project is a ring-fenced asset
An infrastructure project is a standalone, revenue-generating asset that is legally and financially separated from its sponsors. It has its own company (usually called a Special Purpose Vehicle, or SPV), its own bank accounts, its own contracts, and its own cash flows.
This ring-fencing is not just administrative — it is the structural foundation of project finance. Lenders lend to the project, not to the developer. Their security is the project's assets and cash flows, not the developer's balance sheet.
What makes something a "bankable" project
Not every infrastructure idea is a project in the finance sense. To be bankable — meaning, capable of attracting debt and equity financing — a project generally needs:
- A defined asset — something physical that will be built, operated, and will generate revenue
- A revenue stream — predictable income, usually from a long-term contract with a creditworthy customer
- A project company — an SPV that holds the contracts, the land, and will receive the revenues
- A defined set of contracts — covering offtake, construction, operations, and land
- A credible sponsor — the developer or developer group with skin in the game
Examples of infrastructure projects
Infrastructure projects span many sectors. Some common examples in the African context:
- A solar or wind power plant selling electricity to a utility under a Power Purchase Agreement
- A biomass energy facility selling power and heat to an industrial customer
- A water treatment plant supplying a municipality under a long-term concession
- A pharmaceutical manufacturing facility supplying a hospital group
- A logistics hub or warehouse facility leased to a major retailer or logistics company
- A student housing development pre-leased to a university
What these all have in common: a physical asset, a long-term contract, and a project structure designed to give financiers confidence in the cash flows.
The project lifecycle
Projects move through recognisable stages, and understanding where your project sits is important — both for your own planning and for how financiers will assess you.
- Concept — the idea is identified, initial market analysis done
- Development — feasibility studies, site identification, early stakeholder engagement
- Pre-financial close — contracts negotiated, permits obtained, financing arranged
- Financial close — all financing agreements signed, funds available for drawdown
- Construction — the asset is built
- Operations — the asset generates revenue and services its debt
tayari is designed to help you at the development and pre-financial close stages — identifying gaps, prioritising actions, and giving you a structured view of your readiness before you engage with financiers.