Infrastructure projects typically include large capital outlay,
higher investment risk, and longer gestation periods. Given the
upfront capital requirement during the initial construction stage,
lenders to such projects are particularly focused on revenue
generation potential based on a detailed analysis of commercial,
environmental, regulatory, engineering, and financial aspects that
would govern the implementation of the project, as well as a
comprehensive examination of the construction, operational,
political, environmental or legal risks that can adversely impact
the project. Any adverse consequence down the lane will, quite
obviously, lead to delays and cost overruns which will eventually
manifest in the form of reduced financial returns to the project
financiers.
