Project cycle

Enquiry of interest
If you are interested in enquiring into the possibilities of getting a loan from NEFCO to do a green investment we kindly ask you to take contact and present your project idea to us.


NEFCO's environmental specialists will first give an opinion of the project's expected environmental benefit and/or threats.

To get a better understanding of the proposed project, NEFCO will normally request you to provide additional key information of the project in the form of a prefeasibility study or a business plan, including preliminary calculations on financial feasibility, and a summary on environmental improvements.

NEFCO’s detailed project screening determines which projects we deem are likely to have a significant positive environmental impacts or relate to environmentally sensitive areas and therefore need further environmental consideration. The screening is carried out before  possible presentation of the project to the Board.


Indication of interest
If the project is deemed interesting by NEFCO’s Investment Committee, a summary document is prepared by the Investment Manager and presented to the Board of Directors for  possible approval to continue preparation of the project.1


After the Board has approved the project for continued preparation, the project idea needs to be further elaborated by the proponent in the form of a more detailed analysis. This analysis should define and analyse the environmental improvements, positive and negative environmental impacts, markets, production, technology, organisation, financing, profitability, etc.


Board approval

If NEFCO’s Investment Committee decides to recommend the project proposal for financing, the project proposal is submitted to the Board for approval.


Once the Board has approved the project proposal for financing, NEFCO will prepare a Term Sheet setting out main commercial terms and conditions for the financing NEFCO can offer. Once the Term Sheet has been signed, NEFCO will start preparing the loan documentation.


Signing of agreements


After signing of the loan documentation, the borrower will be required to provide information enabling NEFCO to monitor the implementation and the environmental performance of the project.



The Borrower will be required to provide information to NEFCO in order to perform an environmental post-evaluation and lessons learned of the project.