Internationalising mega-projects
A strategic tool, not a protocol step
Internationalising mega-projects is not merely a protocol step, but an effective strategic tool for streamlining the documentary cycle and transforming the project from a private investment into a national or regional initiative that receives priority.
This connection contributes to accelerating implementation, especially when dealing with sovereign entities or central banks, as it helps to:
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01
Shifting the language of communication with commercial or central banks
When addressing the central bank regarding sovereign guarantees or major credit facilities, there is a significant difference between commercial and developmental demand.
- Commercial demand: Treated according to traditional market mechanisms and credit risk assessments.
- Demand under an international framework: Classified as support for developmental balance of payments or technology localisation, which facilitates the issuance of AAA sovereign guarantees or greatly simplifies obtaining other bank guarantees from commercial banks, because the project now serves the state's obligations to international organisations, such as the 2030 Agenda for Sustainable Development.
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02
Streamlining the bureaucratic process (the Fast Track)
A crucial factor in the lifecycle of any project. Projects with an Afro-Asian or international focus are often handled directly through ministerial technical offices or sovereign wealth funds, rather than through lengthy administrative procedures. The Union, as an international body, acts here as a moral guarantor, reducing the initial vetting and due diligence periods conducted by government agencies regarding the investor's identity and seriousness.
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03
Enhancing market value as a regional hub
In addition to providing real financial support for projects carried out under the umbrella of the Afro-Asian Union for Finance and Business Affairs, the international character of a project enhances its market value as a regional hub.