Dividends?, page-12

Why not both? Fund assets and pay dividends.
Optimal capital structure would include a reasonable amount of debt across each project. Whether there is some form of government guarantee or involvement, the company should be aiming for a 60-40 70-30 debt to equity ratio at this stage. Leveraging the balancesheet and various government commitments (cheap long term debt) to fund the projects.

Government assistance aside, project finance would be a great endorsement for the project and company, especially if there is a green &/or sustainable element to financing.

You have to remember that capital expenditure happens over a long time as and when project development occurs. Sitting on a huge pile of cash while waiting for capital expenses is inefficient. Debt on the other hand can be drawn to fund capital costs when they occur so it's not like you sit on a pile of debt from day 1.

Throwing every dollar at projects would be very short-sighted and definitely not an optimal use of funds. Leave enough cash aside to ensure a reasonable buffer/liquidity, the rest distribute to those who have backed the company to get to where it is now. What each person does with the dividends is up to them, a dividend reinvestment plan would allow you to recirculate funds but the choice should ultimately be left to each shareholder. Why leave management to decide what to do with your funds if it isn't necessary. Parking your money in a term deposit for the next few years, no thanks, I'll have mine please.

Aimo