Across Africa, infrastructure investment requirements continue to exceed available public resources. Roads, ports, railways, power plants, hospitals, and industrial parks require billions of dollars in financing.
However, financing cannot begin until projects are properly prepared.
What is a Project Preparation Facility?
A Project Preparation Facility (PPF) finances the early-stage technical, financial, legal, and environmental work required before investors can commit capital.
Typical preparation activities include:
- Feasibility studies
- Engineering design
- Environmental assessments
- Financial modeling
- Legal structuring
- Procurement planning
- Transaction advisory
Why PPFs Matter
Many governments and project sponsors lack the resources to finance these essential activities. Without proper preparation:
- Investors cannot assess project risks.
- Financing is delayed.
- Development opportunities are lost.
ASIP’s Project Preparation Facility
ASIP’s revolving PPF enables strategic projects to access professional preparation services without requiring sponsors to bear all upfront costs. Once financing is secured, preparation costs are recovered from the transaction, allowing funds to be reinvested into future projects.
Long-Term Benefits
Effective project preparation:
- Improves project quality
- Accelerates financial close
- Reduces investment risk
- Builds stronger investment pipelines
- Maximizes development impact
Conclusion
Project Preparation Facilities are not simply technical support mechanisms—they are catalysts for sustainable economic development across Africa.
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