Project Finance (Infrastructure Advisory)

Pioneering PPPs in power transmission: Driving investment and impact in Kenya  

Our team was engaged by a leading pan-African infrastructure fund, working alongside a public-sector transmission company, to advise on the development and financing of priority transmission projects in Kenya. Mandated by the Government of Kenya, these projects were structured on a Public Private Partnership (PPP) basis, in collaboration with the national transmission authority. This assignment aimed to unlock private capital for large-scale infrastructure while ensuring affordability, value for money, and balanced risk allocation.

We provided end-to-end transaction advisory support through the following key activities: 

• Conducted a comprehensive diagnostic analysis of the Kenyan transmission sub-sector 
• Supported the preparation of a Privately Initiated Proposal (PIP), including: 
  • Tariff and revenue principles anchored on operating performance measures
  • Public Sector Comparator (PSC) and Value for Money (VfM) analyses
  • Affordability assessments and recommendations on optimal risk allocation 
• Assisted in developing and reviewing the financial model, lenders’ brief, information memorandum, and other transaction documents
• Provided input on commercial aspects of the Project Agreement and Financing Agreement
• Supported negotiations with lenders, government stakeholders, and contracting parties to advance financial close 

Our work played a pivotal role in advancing Kenya’s first privately initiated PPP transmission project. By aligning private sector participation with public sector objectives, we contributed to a bankable structure that balanced risks, safeguarded affordability, and attracted investor interest. This engagement not only laid the groundwork for sustainable financing of critical power infrastructure but also created a replicable model for mobilizing private capital in Africa’s transmission sector.