Private Sector Investment in the African Power SectorInternational Bar Association – 2nd Annual Investing in Africa Conference

Opportunities for Businesses and the Lawyers Who Counsel Them

Stephanie W. Kam, Esq.July 1, 2016

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• CPCS Transcom is a management consulting firm, specializing in power, transportation and public-private partnerships

• 15 global offices, 8 in Africa• Power:– Restructuring/reform– Transaction advisory– Project development (CDIL)

Introduction

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• Financial Viability• Attractive Environment for Private Sector

Financing• Political Will

Power Sector Success Factors

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• Cost-Reflective Tariff• Cost Transparency• Cost Awareness• Efficiency Improvements

Financial Viability

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• Public-Private Partnerships• Incumbent Corporatization• Independent Power Producers• Market Liberalization• Clear, consistent and transparent regulations• Allocate risks to the party best suited to absorb them• Provide a credible off-taker• Support from external institutions to guarantee risks

Attractive Environment for Private Sector Financing

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• Prioritize Efforts• Long-term View• Capacity Building• Stable Regulatory Environment

Political Will

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• Incorporated in 2014 to develop renewable energy infrastructure in Sub-Saharan Africa

• 80MW AC Solar PV Project in Nigeria• 12MW Sisi Hydropower Project in Uganda• 4MW Cresta Hydropower Project in Uganda

CDIL