Infrastructure Tool Kit

Critical Success Factors

• Understand the project’s vision and objectives, including the key economic, social and environmental factors driving the project.
• Appropriately adjust projected demand, target positioning, and the scale of required facilities.
• Perform financial modelling and forecasting of the project’s capital costs, operating costs and revenues.
• Gain in-depth understanding of the categories of risks the project may involve and the corresponding mitigation measures.
• Conduct research on technical design to establish design and functional requirements, and quantify construction and future operating costs.
• Validate previous economic and demand studies to confirm the project’s driving factors and future requirements.
• Review funding requirements and revenue sources to understand any deficits or surpluses.
• Conduct environmental and sustainability analysis to determine the project’s environmental impact as well as its economic costs and benefits.
• Utilise expert advice and market intelligence to test assumptions and draw on the experience of similar projects.
• Perform benchmarking analysis on comparable projects to draw lessons learned.
• Conduct independent research to strengthen project owners’ and investors’ confidence in the project’s feasibility and development.
• Engage with all parties potentially affected by the project to obtain comprehensive views on how to plan and deliver the project.

Critical Success Factors

• Continuously engage with stakeholders to understand the parties affected by the project and develop a stakeholder management plan to address issues.
• Ensure that all relevant categories of risks have been identified, such as technical, financial, commercial, environmental and other categories applicable to the project.
• Evaluate mitigation options for each risk, for example by conducting technical due diligence, community engagement and using insurance products.
• Based on the work carried out in the feasibility assessment phase, confirm the parties best equipped to manage specific risks, allocate risks accordingly and establish a project risk framework that summarises all risks.
• Assess procurement options, including the use of open competitive procedures and non-invited tender methods.
• Develop procurement documents, including tender requirements, scope of services and procurement evaluation criteria.
• Develop the project contract structure and supporting documentation to reflect risk allocation and market requirements. These will serve as the basis for collaboration between the project owner, contractors, investors and financiers.
• Maintain ongoing communication with stakeholders to ensure that the contract structure, procurement process and risk management model are suitable for the project owner, investors and other relevant stakeholders.
• Initiate and execute all procurement activities, including marketing, briefing bidders, bid evaluation, negotiation, and selection of contractors, investors and/or developers.

Critical Success Factors

• Assess the project’s financing requirements, including developing the target capital structure and financing strategy, taking into consideration the debt-equity mix and various financing and capital sources available in the market.
• Identify and apply credit enhancement products that can potentially improve financing terms.
• Conduct further financial modelling, including analyses to demonstrate the project’s financial viability and creditworthiness, taking into account financing costs and requirements.
• Prepare due diligence reports on the project’s technical, environmental, financial and commercial aspects to demonstrate the project’s feasibility to lenders.
• Consider and analyze whether credit rating agencies need to be involved in the project.
• Develop a project term sheet listing the key commercial terms that may be distributed to potential financiers.
• Identify and adopt necessary risk management measures and insurance products to mitigate risks identified in the previous phases.
• Achieve financial close for the project, including the use of financial risk management products, third-party debt and equity financing, insurance and other credit enhancement products.
• Conduct ongoing stakeholder engagement and management to ensure the project receives maximum support and that potential issues are addressed at an early stage.

Critical Success Factors

• Contract documents clearly specify requirements to enable relevant parties to develop and evaluate the design.
• Utilise advanced design technologies to support the construction process and subsequent asset maintenance during operations.
• Establish appropriate governance arrangements and assemble a suitable team to deliver all aspects of this phase, including design, project management and construction personnel.
• Implement progress monitoring systems to ensure continuous tracking of construction progress and costs.
• Develop and implement effective project control and management practices, including the use of technology and data solutions.
• Adopt and consistently execute policies and protocols for testing, reporting and inspection that meet industry-leading standards.
• Execute procedures to mitigate major construction risks, with regular updates and reporting.
• Identify and address compliance requirements in advance to minimise the likelihood of construction disruptions.
• Establish clear processes for managing design and construction changes to ensure the project continues to meet overall objectives and is delivered in line with its original vision.
• Effectively manage disputes during the construction phase to minimise their impact on the project.
• Ensure regular stakeholder engagement to keep them informed of construction progress and the project’s impact on the surrounding environment, so that all potential issues are identified and addressed at an early stage.

Critical Success Factors

• Operate the asset in accordance with the required standards to meet user requirements and achieve the original vision and objectives, including performing regular maintenance and works during the project period.
• Continue conducting technical due diligence and reporting to lenders and investors to ensure the project is effectively managed.
• Carry out ongoing contract management, including measurement against key performance indicators, managing contract payment processes, and fulfilling all reporting requirements stipulated in the contract.
• Perform regular asset maintenance and replacement works to ensure the facilities maintain high-quality standards and satisfy the evolving needs of the user groups.
• Assess expansion and additional capital expenditure to meet local environmental conditions and the project owner’s growth requirements.
• Manage changes to the project contracts, including the scope of services, so that the project continues to achieve its objectives in the event of changing circumstances.
• Effectively and efficiently resolve disputes, including the use of internationally recognised dispute resolution procedures, to minimise the impact on the project’s user groups.
• Where applicable, transfer the asset to third parties through effective investment, partnership, sale or public listing.