To facilitate the application process for project sponsors and minimize possible delays in project financing and implementation, NADB provides an easy step-by-step process for moving your project through its financing process.
- Contact NADB to discuss your financing needs and options.
- Consult BECC to discuss certification requirements and criteria.
- Be prepared to provide basic information about your project (see box).
Basic Project Information
- Brief description of the project, including its objectives and main components
- Environmental and/or health benefits to be achieved by the project
- Estimated project cost and other sources of funding
- Status of project development, including project design and environmental clearances, authorization from governing boards and/or agencies, and anticipated construction start-up date
- Profile of principals
- Marketing plan, if applicable
NADB, in coordination with BECC, will perform a preliminary review to determine project eligibility, as well as to identify any technical and financial needs that must be addressed for the proper development and successful implementation of the project.
Both NADB and BECC offer technical assistance through various programs to help sponsors prepare projects for certification and implementation. Grant assistance may be available to finance studies and develop documentation needed to complete a comprehensive analysis of the project, as well as to support the long-term sustainability of the project.
If the preliminary information indicates that the project is eligible, BECC and/or NADB will notify the sponsor to proceed with a formal application.
- Submit a formal financing application to NADB.
At the same time, submit an application for certification to BECC.
- Sign an acceptance agreement with NADB regarding the comprehensive analysis of the project proposal
and reimbursement of NADB’s expenses.
- Gather and submit the information required by the Bank to perform its financial analysis.
Main Information Requirements for Financial Analysis
- Financial statements for previous 5 years, audited if available
- Current budget and/or proposed budget for coming year
- Terms and conditions of any current debt (i.e. tenor, rate, outstanding balance, amortization schedule)
- Cash flow model
- Itemized project costs
- Operations & maintenance costs
- Capital Investment Program
- Credit rating, if available
During the Approval Process
NADB will perform a comprehensive analysis of the project, including financial feasibility, project risks, and available sources of financing. As a result of this analysis and working in collaboration with the project sponsor and other funding partners, as appropriate, NADB will structure a suitable financing package for the project based on the sponsor’s repayment capacity, guaranties and legal structure.
While NADB performs its analysis of the project and prepares the financing proposal for submission to its Board of Directors, the project sponsor should proceed with the development of the project, including:
- Work with BECC to meet the requirements for certification, as well as obtain any environmental clearances and authorizations.
- Complete design, if necessary, and begin preparing procurement documents, meet with NADB procurement staff to review the Bank’s policies and procedures.
- Obtain any necessary authorizations and permits for constructing the project and work with other funding sources to secure their participation.
- Begin gathering and/or developing any legal documents required for closing and disbursing the loan proceeds.
- Keep NADB and BECC informed on a regular basis and provide any requested information as soon as it becomes available.
After Financing Approval
Once the project is certified and financing is approved, the project sponsor is responsible for project implementation. During project implementation, NADB will monitor construction progress and the use of its loan funds to ensure compliance with its policies and the corresponding financing agreement. To ensure project implementation proceeds smoothly, the sponsor should:
- Negotiate and finalize terms and conditions of the loan with NADB; execute all loan documentation.
- Carry out bidding and contracting processes in accordance with NADB procurement guidelines.
- Submit disbursement requests, in accordance with NADB disbursement procedures and the agreed terms and schedule.
- Supervise construction and provide regular reports to NADB.
- Upon project completion, provide project closeout information to BECC/NADB.
- After project completion, comply with the covenant provisions in the financing agreement by delivering required reports to NADB in a timely manner.