The
Presidents/Chief Executives,
Alll
Banks/ DFIs
Dear
Sirs/Madam,
GUIDELINES
FOR INFRASTRUCTURE PROJECT FINANCING (IPF)
To facilitate banks/DFIs to undertake Infrastructure Projects
Financing, State Bank of Pakistan has formulated appropriate
guidelines in consultation with various stakeholders and
in line with best international practices. These guidelines
have been placed at SBP web-site http://www.sbp.org.pk/publications/index.asp
for consultation purpose.
2.
Infrastructure projects, by their very nature and design,
require relatively large investment, besides requiring longer
gestation period for development, construction, start up
and operation. Keeping in view the distinctive features
of infrastructure projects, the guidelines have been tailored
to the specific needs of the related parties. It is hoped
that these guidelines will help banks/DFIs to develop expertise
for financing of infrastructure projects, essentially by
evaluating the intrinsic cash flow generating ability of
these projects.
3.
Banks/DFIs are encouraged to prepare their own structured
lending schemes for the development of IPF, for which they
may conduct/arrange their own studies to determine the potential
in specific infrastructure projects. The captioned guidelines
are aimed at facilitating unhindered flow of credit for
the Infrastructure Projects, without putting the lending
banks/DFIs at undue risks. The banks/DFIs will also devise
proper checks and controls to ensure necessary oversight
on Infrastructure Project Financing products.
4.
Please acknowledge receipt