Capital Project

What is a Capital Project?

A Capital project refers to big projects like infrastructure, roads, railways, etc. In case of a business, it refers to a building, Manufacturing plant, Land, refineries, etc. It is expensive in nature and requires good planning before Investing. This aspect sets it apart from other projects.

A business may invest in a capital project to maintain or increase the growth of the business. It is important to employ professionals when planning to invest in capital projects. Their excellent project management skills will help with the planning and execution of the project.

Capital projects can be funded through loans, Bonds and cash reserves. You can also involve public funding for capital projects.

Public Funding for Capital Project

Remember that when public funding is involved in a capital project, they are usually for the benefit of the community. For example, renovation of a public park or a library is investing in a capital project for the public good. One should carefully consider the economic implications a capital project can have on the business.

Even governments fund capital projects. For example, in the US, Congress is responsible for the funding of national capital projects like roads, bridges, dams, power lines, etc.