Library / MDGIF Investment Policy Statement

MDGIF Investment Policy Statement

Page 22 of 34

Open the PDF at page 22

 
Applicable to:            MDGIF Project Promoters  
Equity Partners 
MDGIF INVESTMENT POLICY STATEMENT (MIPS) 
 
Code: MDGIF Guide 1001 - 2024 
 
Effective Date: 17th May 2024 
 
 
This document is a property of the Midstream and Downstream Gas Infrastructure Fund. All rights reserved. 
22 
4.2 
Project Screening and Evaluation  
a. All project investment proposals shall be subject to a screening process supervised by 
the Management Investment Committee where the proposals are reviewed and 
assessed vis-à-vis the Fund’s screening criteria checklist.  
b. The purpose of the project screening is to identify projects that align with the Fund’s 
purpose and have the complete documentation and requisite readiness for detailed 
technical and commercial evaluation by the Transaction Advisor.  
c. Based on the project screening results, proposals shall be classified as one of the 
following: 
 
Screening classification  
Action 
i. Eligible investment  
Refer for technical and commercial evaluation 
by Transaction Advisor 
ii. Ineligible investment  
Communicate decision to project promoter 
iii. Incomplete documentation 
Request additional information from project 
promoter 
 
d. All project proposals shall be screened based on the screening and evaluation criteria 
of the Fund. 
4.3 
Investment Criteria  
a. Infrastructure focus: The investments to be undertaken by the project promoter must 
align with the primary definition of midstream and downstream gas operations i.e., 
they must be in the target sectors of MDGIF investments. These projects must also have 
stable and predictable cash flows, as aligned with the national strategic goals. 
b. Economic impact: The investments must contribute directly to the promotion of 
domestic gas utilization & infrastructure development in Nigeria, which will ultimately 
support economic growth and development in the country. 
c. Development impact: Investments to be made must have significant development 
impact and be complementary to the priority projects and sectors, as identified by 
the FGNs programs and projects e.g. ‘Decade of Gas’, ‘Gas Master Plan’, P-CNGi etc. 
d. Economic viability: The projects or operations to be considered must be economically 
viable, as indicated through such measures as clearly defined by tariff principles, user 
charges, consumer willingness to pay, sustainable consumption rate, etc.