Concessional loans are the primary financial mechanism offered by the NAIF.
The NAIF Board may consider using alternative financing mechanisms to a loan, such as a guarantee, where:
- it may be more appropriate for a specific project
- it is necessary to encourage private sector participation in financing a project
Where the Board considers that an alternative financing mechanism is preferred to a loan, the Board must write to the responsible Minister seeking agreement to the alternative financing mechanism. The NAIF cannot offer an alternative financing mechanism that would provide equity or grant funding to a project.