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MDGIF Investment Policy Statement

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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.
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e. Financial strength: The financial strength of the projects will be determined based on
the following:
i.
Ability to generate cash flows: Key measures to determine the adequacy of
the project cash flows such as equity internal rate of return, positive cash flows
and profitability, etc. will be measured to determine viability of projects and
companies. Potential projects must be able to provide an achievable path to
achieve positive cash flows.
ii.
Capital structure: The amount of leverage in a project will be considered a
critical factor in selection of projects. This will be to ensure that projects have a
sustainable capital structure vis-à-vis the project cash flows.
iii.
Project funding: The projects will be required to be sufficiently funded for MDGIF
to invest in such projects i.e. a fully funded transaction with clear line of sight
on all funding requirements for the project. In addition, disbursements of
funding to the project shall be efficiently managed to ensure that there are no
apparent gaps in availability of cash flows to fund construction and adequate
working capital for operations.
f. Effective Internal Control: The potential investments must inherently, or deliberately
institute control measures to provide assurance to MDGIF against misappropriation,
misapplication, loss of capital etc.
g. Environmental, Social and Governance: Investments shall be made in accordance
with the MIPS.
4.4
MDGIF Involvement in Infrastructure Projects
The MDGIF involvement in projects (through the provision of capital and other required
support) may cover any parts of the entire project lifecycle. Specifically, the MDGIF may
invest in projects across the following stages:
i.
Project preparation and development: needs analysis, options analysis; stakeholder
consultation; project registration with the relevant authority; technical, financial,
legal and economic planning; compliance with the legal framework; risk analysis;
development of indicative contractual framework; development of funding
arrangement; obtaining approvals and clearances; site selection; completion of
technical, financial, legal, environmental & social, insurance, commercial due