Government Funding Guidelines
The following steps are based on our experience in helping customers with government project funding
NEXXUS has established some helpful guidelines to assist you in preparing for the funding process with government projects.
We are currently developing projects in other countries such as the Dominican Republic, Costa Rica, Aruba, Peru, Mexico and others.
PZL AMERICAN MANAGEMENT INC & NEXXUS GROUP, have established some useful guidelines to help the Province prepare for the beginning of the process of financing government projects.
IMPORTANT NOTE: The country for which we are going to study a potential governmental projects will have to be considered “friendly” countries and aligned with the foreign policies of the USA.
The necessary data includes the following:
- NAME OF THE PROJECT
- DESCRIPTION OF THE PROJECT
- AMOUNT OF THE PROJECT IN DOLLARS OF THE UNITED STATES
- LOCATION OF THE PROJECT
- DENOMINATION OF THE PROJECT
- INTERVENING ENTITY
- PERSON TO WHOM THE PROPOSAL LETTER IS ADDRESSED
The following is a short list of completed projects:
- Ethiopia: GD3 power plant – financed $382 million dollars
- Ecuador: Paute-Sopladora hydroelectric plant – financed by $570 million dollars
- Indonesia: Babibalu thermal power plant – financed by $132 million dollars
- Malawi: Kammwaba thermal power plant – financed with $467 million dollars
- Angola: Caculo Cabaca power plant – financed by $4 billion dollars
Our funding partners are banks and state / private organizations / foreign companies ans we have direct relationships with executives of global finance.
The following are the preliminary steps or guidelines that we have already used as USA companies and that have already been applied in other countries:
1) PZL and NEXXUS will send a Formal Letter of Introduction to the Country that we go to discuss the potential projects.
2) A letter of intent or formal request addressed to us: (Coordinated by and with our local partner), through which PZL AMERICAN MANAGEMENT INC & NEXXUS PROJECTS FUNDING GROUP LLC are invited by the Government, Municipality or the Ministry in charge of the project, indicating the serious intention to search and / or obtain funds through our companies for specific projects in your Province.
3) The government, the ministry or the municipality must be willing to receive the help of the foreign government funding
4) These negotiations are from government to government. They are not private.
Public private partnerships – (PPP in special project situations):
Public-private partnerships involve collaboration between a government agency and a private sector company that can be used to finance, build and operate projects, such as public transport networks. Financing a project through a public-private partnership can allow a project to be completed sooner or be a privileged possibility.
EXAMPLE: A city government, could be heavily indebted and unable to undertake a capital-intensive construction project, but a private company might be interested in financing its construction in exchange for receiving operating profits once the project be complete Public-private partnerships usually have contract periods of 25 to 30 years or more. The financing comes partly from the private sector, but requires payments from the public sector and / or users during the useful life of the project, such as the “Waste to Energy” power plants. (Power plants from the recycling of garbage). The private partner participates in the design, finalization, implementation and financing of the project, while the public partner focuses on defining and monitoring the fulfillment of the objectives.
IMPORTANT: Public-private partnerships are typically found in transportation infrastructure, such as roads, airports, railways, bridges and tunnels. Examples of municipal and environmental infrastructure include water and wastewater facilities. Public services include prisons and sports facilities such as stadiums and coliseums.
5) The projects must have the Agreement of the Mayor’s office and / or the Ministries of Finance and / or any governmental agency that is involved in the projects.
6) If these points of agreement are established, the next step is to identify the projects and see the status of the preliminary studies, (if they exist), until they are sent to our funding partners for review.
(It does not matter if the Project is not current, as long as there is an interest of the Government to carry it out).
7) The Municipality or the Ministry responsible for the projects will issue a letter of invitation on behalf of PZL AMERICAN MANAGEMENT INC & NEXXUS PROJECTS FUNDING GROUP LLC to travel to your country and sign the preliminary agreements of intent and at the same time we formally present ourselves with our Team of Professionals. (Coordinated by our local partner)
8) In that meeting we will address all the topics of interest that concern both parties.
9) If the foreign government funding partners is interested in the project, we can provide a letter of interest (LOI) to formalize the project.
10) We, as representatives of the sources of the funds and we have direct relationships with executives of global finance, will be pleased to provide you with the name of the company that will be responsible for the construction and development of the project which will be one of the companies with the highest quality standards to guarantee the investment in the province.
11) The Ministry, the Municipality or the entity in charge of the Project will send a second letter of invitation addressed to the technicians and officials, (we will provide them with the list of names), which, in turn, are technicians and officials representing the funds and the construction companies. (Coordinated by our local partner)
12) The technicians and officials must obtain a VISA to travel to their country, if necessary, so that they can meet with you and thus be able to draft a Memorandum of Understanding (MOU) that will be formally signed and that will include the corresponding feasibility studies determining that the projects are feasible to be carried out.
13) The funds for the projects will be available once the previous steps are completed. Our team of professionals from PZL AMERICAN MANAGEMENT INC & NEXXUS PROJETS FUNDING GROUP LLC will travel for the second time to coordinate that everything is well organized so that the technicians and the representatives of the funds can work without any obstacle and elaborate the corresponding studies related to the project. (Coordinated by our local partner)
14) From that moment we will only be attentive so that the entire established schedule works as planned.
NOTE: OUR LOCAL ASSOCIATE WILL PREPARE ALL THE VISITS OF OUR DELEGATION FROM THE UNITED STATES TO THEW COUNTRY IN CONJUNCTION WITH THE RESPONSIBLE DESIGNATED BY THE PROJECTS IN THE CORRESPONDING PUBLIC ENTITIES.
These are the procedures to carry out the development and financing of government to government projects.
Our team has experience working with government agencies in global projects, which allows us to support the financing process up to 100%, (one hundred percent), of the government guaranteed financing.