The National Infrastructure Fund would only be allowed to commit a maximum of 20 per cent of its assets to a single project under a proposed investment policy that sets financial rules for funding major infrastructure projects across the country.

The proposed rules are contained in the National Infrastructure Fund’s Investment Policy, Sessional Paper No. 7 of 2026, which is before the National Assembly’s Departmental Committee on Finance and National Planning.

The policy sets out where the Fund can invest, how it can structure its investments and the limits that will apply when committing money to individual sectors and projects.

Under the proposed framework, the Fund would invest in national highways, railway networks, airports and seaports, and electricity generation, transmission and distribution infrastructure.

ICT infrastructure, water reservoirs, irrigation and agribusiness infrastructure are also listed as eligible investments.

National Infrastructure Fund Limits on Investments

The proposed 20 per cent cap means the Fund could not commit more than one-fifth of its assets to a single project.

The policy also proposes a minimum equity return of 7 per cent on investments and caps the amount of the Fund’s assets that can be committed to a single sector at 40 per cent..

The limits would prevent a large share of the Fund from being committed to one sector or project.

How Projects Will Be Financed

The policy also proposes that projects should have the capacity to raise at least 60 per cent of their financing through non-recourse project debt.

Under this arrangement, lenders would rely mainly on the assets and expected cash flows of a project for repayment.

The Fund would not be allowed to use balance sheet borrowing under the proposed investment policy.

Investment Options

The Board would be allowed to invest through direct investments, equity, quasi-equity and debt instruments.

Other avenues include project finance structures, special purpose vehicles, infrastructure funds, pooled investment vehicles, co-investment platforms and capital market instruments.

The policy also outlines the investment framework for the National Infrastructure Fund as it seeks to channel capital into large-scale projects while setting limits on risk and the concentration of investments.

Public comments on the policy are expected by August 24 at 5 pm, when they should be submitted to the National Assembly’s Finance and National Planning Committee.