Financial Control in Infrastructure Projects: ROI, IRR and APR as a Decision Framework
In infrastructure projects, profitability is not a byproduct of execution — it is the result of a structured decision-making framework applied from initial feasibility through project completion. In this context, financial indicators are not isolated metrics, but management tools. Three of them are fundamental to structuring decisions: ROI (Return on Investment) IRR (Internal Rate of Return) APR (Annual Percentage Rate / cost of capital) The most common mistake is not a lack of knowledge, but the failure to apply these indicators in an integrated way throughout the entire project lifecycle. 1. Feasibility Phase: Building the Business Case (ROI) Every project should start with a solid business case, where ROI acts as the primary reference point. 🔹 Role of ROI Quantifies expected profitability Enables comparison between investment alternatives Defines the minimum acceptable return 🔹 Rigorous approach: Full cost modeling (direct and indirect) Inclusion of financial costs Scenario...