NAIAD

Advisory

The Approach

Inject greater certainty into the realization of capital projects

NAIAD counsels investors, decision-makers and governments on the optimal strategies to construct their major projects in a way that attracts and protects investment capital.   

To be funded, either by NAIAD or by others, a project must be proven to be both investible and bankable. To get there, NAIAD deploys a portfolio of expert services to turn a concept or idea into a tangible, realistic, and financially viable capital project. NAIAD’s methodology is aligned with the World Bank’s project cycle framework (identification-preparation-appraisal-negotiation-implementation-completion). With every client, private or institutional or governmental, the engagement philosophy is built upon a dual foundation: capital success & socio-economic empowerment. The first pillar is directed squarely at the economics of a project, from both project sponsors and investors. The second pillar is focused on the host nation’ socio-economic priorities to reduce poverty, improve citizens’ quality of life, and achieve sustainable economic, social and institutional development. The philosophy is crafted explicitly as a WinX4: win for the project, for the investors, for the host nation, and for its citizens.

The final investment decision (FID) requires this amount of work to prove the bankability of a project, regardless of NAIAD’s participation – or not – into the financing of the project. NAIAD prefers a minority equity stake with voting rights. NAIAD’s investment selection targets institutional-quality investment opportunities for operating assets yielding twenty-plus years of sustained revenues, in both green and brown field circumstances, executed under a variety of schemes (EPCM, EPC, BOO, BOOT, BOT, LOB, LUOT, etc.). NAIAD will consider the acquisition of operating assets or portfolios up to 100% or co-invest with existing owners in SPVs holding assets. NAIAD will also consider asset acquisitions in the secondary market.

Investment certainty is significantly affected by a project’s ecosystem

The ecosystem is the space within which an asset is financed, constructed, and operated. The space is multidimensional and encompasses the physical and operational sphere, the geography, the territory, the political and regulatory landscape, the domestic supply chains and human capital, and the economic circumstances surrounding them all. The limits of the ecosystem impose the constraints upon the realization of the asset; while its limitations and shortcomings drive up the risks of inefficient capital deployment. From an investment perspective, the ecosystem is a potential giant reservoir of uncertainties underlying every facet of the project. These uncertainties add up to a single question: can this asset be built efficiently and operated profitably?

The target audience

NAIAD’s advisory consulting is directed at government officials, institutional leaders, and local chambers of commerce to address these issues. We seek to quantify the strengths, weaknesses, opportunities and threats (SWOT) of the ecosystem; characterize the capabilities and shortcomings that are bound to affect either the project’s delivery or the profitable operation of the asset; assess what can and cannot be done by the domestic supply chains; to appraise the inertia of the existing regulatory framework; gauge the integrity of the governance and procurement processes; and qualify the environmental obstacles that may derail a perfectly rational project.

Expert Services

CAPITALIZATION
Mission: Get the project funded. The world is awash with private capital in search of viable investment opportunities. Getting projects done is not a matter of money, but compelling economics. In the capitalization stage, NAIAD works primarily with the project sponsor (or host), once the project intention is announced. From there, NAIAD works on formulating the project in terms of an attractive investment opportunity for private and institutional capital. The work entails developing the project structure, orchestrate the feasibility studies, create the economic models, de-risk the project, elaborate the financing options, and, ultimately, secure the capitalization needed to get the project done.

HUMAN CAPITAL DEVELOPMENT
Mission: Get the nation hired. Investors require confidence in the efficient deployment of their risk capital.  From their perspective, the project’s environment is a giant reservoir of risks that add up to one question: can this asset be built profitably? On the flip side, the project’s host views it as an engine of socio-economic development.  NAIAD plays a key role in bridging these two solitudes.  NAIAD woks with the host to develop a comprehensive plan to build up the host’s aggregate capacities and capabilities, from regulatory frameworks and program management practices to skills acquisition and knowledge transfer, to world-class vendor qualifications and integration in to a project’s overall execution strategy. 

IMPLEMENTATION GAP
Mission: Empower the institutions. Many emerging economies and small-market nations suffer from the implementation gap.  This gap manifests itself by lack of experience or resources to move from concept to profitably-performing assets.  This gap also affects a nation’s ability to engage international financing institutions (IFI) effectively. NAIAD’s role is to get them over their implementation gap and marshal, on their behalf.  IFI liaison, regulatory oversight, corporate governance, project control, engineering & design, supply chain management, fabrication and modular construction, digitalization, entrepreneurship, innovation, and leadership & management are among the domains of expertise available to build a stronger tomorrow.