African Legal Support Facility (ALSF) unveiled a new resource handbook entitled “Understanding Power Project Financing” on the sidelines of the African Development Bank Annual Meetings in Lusaka, Zambia.
The handbook addresses the challenges and strategies of private financing of a power project with a focus on the mechanisms utilised by stakeholders to address issues surrounding project financing particularly credit enhancement.
The handbook is intended to enhance knowledge and understanding of the crucial financing issues involved in the negotiation of contracts in the energy sector. The release of the handbook is in line with the ALSF’s approach that involves assisting the governments and the private sector to bridge the communication gap by creating a common language for all parties.
“We assist governments in preparing a negotiation strategy, assembling a negotiation team, and the transfer of long-term knowledge to the governments is the overarching goal” said the ALSF Director, Stephen Karangizi.
According to Andrew Herscowitz, the coordinator of Power Africa, streamlining the power project process is one of the most valuable roles Power Africa plays. “For Africa’s incredible energy resources to be put to work — and to benefit people across the continent — we have to link investors and developers with opportunities that are as bankable and shovel-ready as possible.
The handbook was developed by the ALSF in partnership with Power Africa through the U.S. Department of Commerce’s Commercial Law Development Program (CLDP) using the “Book Sprint” method, an intensive drafting process that convened a group of experts with the goal of getting from concept to publication in just five days.
By Pita Ochai