Gate 3 · Development Commitment
Development Investment Memorandum
Authorizes major design, financing, construction and development capital. Five weighted pillars scored 1–5. No investment proceeds with a Downside Protection score below 3.00, regardless of aggregate score.
The central IC question is not whether the base case works. The Committee must determine whether the investment thesis is supported by evidence, whether the delivery team can execute the plan, and how much adverse variance the investment can absorb before LP capital is impaired.
Mandatory tests
IC decision dashboard
Base and downside cases against IC hurdles. Complete before pillar scoring — these figures inform the Capital & Returns and Downside Protection scores.
| Metric | Base case | Downside | IC hurdle |
|---|
Pillar assessment
Sensitivity and stress test matrix
Ten prescribed stress cases. The final column is the one that matters: at what point is LP principal impaired?
| Stress case | Project IRR | LP net IRR | LP EM | Add'l equity | LP principal impaired? |
|---|
Break-even and capital impairment analysis
| Metric | Base case | Break-even / threshold | IC commentary |
|---|
Risk register
| Risk | Probability | Impact | Mitigation | Owner | Trigger / KRI |
|---|
Conditions precedent to development commitment
Every condition requires a named accountable executive and a deadline. Identify each condition or variance requiring return to IC.