Enquiry of Interest

The Project Sponsor normally makes the first contact with Nefco, presenting the project idea and inquiring about NEFCO's interest in financing ther project.

NEFCO's environmental specialists give a first opinion of the project's expected environmental benefit and/or threats

To have a better understanding of the proposed project, NEFCO normally requests the Project Sponsor to provide additional key information of the project in the form of a prefeasibility study, including preliminary calculations on financial feasibility, and a summary on environmental improvements.

Screening of projects is done in order to determine which projects are likely to cause significant environmental impacts or relate to sensitive areas and therefore need further environmental consideration. Screening is done before the Indication of Interest is presented to the Board.

Indication of Interest

A summary document is prepared by the Investment Manager and presented to the Board of Directors. The Board gives its approval to continue preparation of the project.

The project idea should be elaborated by the Project Sponsor in a more detailed study. The study should define and analyse environmental improvements, positive and negiative environmental impacts, markets, production, technology, organization, financing, profitability etc.

Before project documents are submitted to the Board, the project is evaluated and appraised by NEFCO staff supported by external technical consultants as required.

The outcome of the Environmental Analysis is reviewed by NEFCO staff before the project is presented to the Board for approval. The review will include any environmental impact assessment and/or environmental audit carried out on the project. 

Board Approval

The project is reviewed by the Investment Committee and then presented for the Board Approval.

NEFCO negotiates with the project sponsor to establish the terms and conditions of NEFCO's participation in the project including the incorporation of environmental covenants into the agreements.

Signing of Agreements

The project sponsor implements the project.

NEFCO monitors commercial and environmental performance of the project.

EXIT

NEFCO disinvests and withdraws from the project.

Environmental post-evaluation and lessons learned.