Project preparation typically costs between 5%–10% of the project’s capital cost, and can be financed via grants, risk capital, and loans.

Project preparation costs in developing countries typically range between 5%–10% of the total project investment. The project preparation cost depends on the project’s size and complexity whether several regional governments are involved, how prolonged the preparation process becomes, and the extent to which upstream preparation is complete. Clearly, the more efficient project preparation is, the greater the leveraging effect of a dollar spent in project preparation on infrastructure delivered to the benefit of end users.