Irrigation projects typically cost a lot of money. Therefore, one question you have to tackle, when proposing a major irrigation project, is one as to where you would get the money to finance the whole thing. To appreciate just how much money is needed, you have to take into consideration the amounts required for irrigation equipment as well as the amounts required for manpower. We touched on these things in our last blog post, which you can access here. Whatever estimates you come up with, you need to make further provisions for unforeseen costs. And once you have concrete figures in mind, you have to ask yourself the question as to where exactly you’d get such hefty sums of money.
In the final analysis, you are likely to end up in a situation where the only way of getting the funds to finance a major irrigation project is by borrowing. There are financiers who specialize in lending money for these sorts of projects — also known as project finance specialists. But before approaching them, you need to be aware of the fact that they tend to be very selective, when it comes to choosing the people/entities to lend. There always seems to be some major complex considerations that come into play, whenever there are projects requiring huge sums of money to be lent. This is understandable, because the financiers know that by lending you such a huge sum of money, they would be transferring a lot of power to you. They endeavor to be in a position to control that power, lest you run amok with it — if you know what we mean. So the whole thing is not just a straightforward question of presenting a proposal and being lent money. Your proposal may be excellent, yes, but if you can’t manage the ‘politics’ of project finance well, you won’t be able to secure the required funds.
To gain more insights on how matters to do with project finance work, you may need to consult the project managers who have had their (major) irrigation projects successfully funded. To get started in that direction, you can go to Sbcglobal.net (that is, assuming you use SBCglobal email for your communications, and send an email to such a project manager, requesting for advice). If you are lucky, the project manager in question may reply your email with details on how to navigate the often murky politics of project finance.