Financing a Sand Extraction Operation for Public Works

Project Overview

This project outlines the financing and operational structure of a sand extraction and supply operation designed to fulfill a pre-secured public works contract. The proposed $20 million facility is intended to fund equipment procurement, delivery, and operating consumables, while supporting an execution model backed by predictable government-linked demand and a clear repayment pathway.

Funding Required

USD 20 Million

Sector

Sand Extraction & Public Works Supply

Client

DAMEN SHIPYARDS

Key Advantages

Key Achievements

Pre-secured government purchase agreement supporting predictable revenue generation.

Machinery dedicated to public works, benefiting from customs duty exemption and lower upfront import costs.

Structured repayment profile with breakeven expected within 21 months and full repayment in approximately 25 months.

Operational Highlights

Funding requirement of USD 20 million allocated across machinery, delivery, and consumables.

Monthly extraction capacity estimated at 200,000 cubic meters to support sustained project execution.

Immediate operational launch anticipated upon funding approval, with built-in timing buffer to absorb execution delays.

Outcome

This project presents a structured and relatively low-risk financing opportunity built around contracted public works demand, clear operational economics, and a disciplined repayment schedule. Its strength lies in combining immediate deployability, stable revenue visibility, and a practical framework for long-term operating growth.