MARKET SOUND

Also known as Test Market, a Market Sounding is the process of assessing the reaction of the market to a proposed project requirement, and the level of market interest in the project. Market sound enable the Project Developer (MDACI / MDACI CONSORTIUM) to receive important feedback from the Project Entities, including mainly the Lender, Insurer, EPC Contractor, and the local authorities into the project preparation phase and shape the risk allocation matrix in a market-acceptable manner at the early stages of the Development. For instance, based on a financial report developed by a Senior Infrastructure Finance Specialist of the World Bank, Rana Fida, the lending market rules can vary over time, due to a host of factors, including legal and regulatory issues, global interest rate regimes, and capital market conditions. This is absolutely obvious. Therefore and as such, the Developer, MDACI, assure to bring all the aforementioned Project Entities' feedback, including financiers' feedback on board to make the project bankable at the early stage through a formal project Information Memorandum or Briefing Memorandum or Investment Memorandum and a structured Project administration Manual Project (PAM).

3.1   How to conduct a market sounding?

The market testing may take a number of forms, such as meetings with individual companies, general/industry meetings, or written communication. The information may be provided through a presentation, a Project Information Memorandum (PIM) or even, at a more advanced stage, by publishing the Draft Bankable Project Development Agreement (BPDA) for comment by each entity of the Project, including Lenders, Project Company or Project Owner, EPC Contractors, and other. Prior to commencing the Project Bankable Development (PAM), MDACI Working Team develop the Project Administration Manual (PAM) to strengthen the quality and bankability of the Project.