KenGen hires transaction advisor for Olkaria VI 140 MW project

KenGen hires transaction advisor for Olkaria VI 140 MW project Olkaria I Units 4 & 5 Geothermal Plant. Source: KenGen
Alexander Richter 9 Jun 2016

KenGen and the National Treasury of Kenya award contract to serve as transaction advisor for the 140 MW Olkaria VI geothermal project in Kenya, a planned public-private partnership project.

As reported form Kenya, K&M Advisors, a financial and technical advisory firm, has been awarded a contract to serve as the transaction advisor for the Olkaria VI 140 MW geothermal power plant. The contract was awarded by The National Treasury in Kenya and KenGen.

K&M’s involvement includes preparing a feasibility study to establish the technical configuration, and bankability of the Olkaria VI project. This will include a grid connection study and advice on the grid capability to accommodate additional power. K&M will also recommend the best Public-Private Partnership (PPP) model and advise KenGen on risk allocation and the contractual structure, as well as prepare all necessary project agreements. Finally, K&M will prepare the request for qualifications and request for proposals, and advise KenGen through the procurement process and proposal evaluation, as well as provide transaction advisory support through to financial close. This assignment is expected to last approximately 18 months.

“We are very pleased to have been selected to advise the National Treasury and KenGen on the Olkaria VI competitively procured PPP transaction that will deliver much needed renewable energy to Kenya,” states Alfonso Guzman, President of K&M Advisors LLC.

The Olkaria VI power plant will be developed through a PPP arrangement governed by the PPP Act, 2013. The private partner will have a role on the design, finance, supply, construction, commissioning and maintenance of the plant, and in building a grid interconnection of approximately 5km (including the substation, switch gears and the associated facilities). K&M will advise KenGen on designing a bankable PPP transaction.

K&M’s team includes AECOM (technical advisor) and ACMIRS (PPP advisor).

Source: Financial Content