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Project Development
& Financing

Ingwe Projects and Consulting has done significant project development work mainly in the Infrastructure and Energy sectors.

Ingwe was the only western full-time consultants appointed by COIDIC (China Overseas Infrastructure Development and Investment Corporation) to assist with the strategy formulation and implementation when the Chinese Government registered COIDIC with $500m development funding and $70 billion targeted portfolio.

New developers face their biggest downfall when attempting to present poorly defined projects, with limited understanding of financing requirements to financiers. It becomes near impossible to change the negative first impressions this leaves with the financiers/lenders.

Project Development is poorly understood by the Project Management and Engineering industries (EPCM) who are usually focused on aspects which lead to early over engineering and ineffective use of development capital. Ingwe understands the various developer worlds and assist project developers to identify what is required, when to optimize capital and determine cash-flow requirements.

Project developers play a very unique role and as such project development has a very specific process with unique requirements. The developer focus areas are:

  • Early engagement with key stakeholders including governments and SOE’s,
  • Very strong concept formulation and presentation,
  • Formulation and approval of development rights,
  • Detailed financial modelling,
  • Multiple insurance contracts,
  • Project development focus to obtain signed agreement i.e. Power Purchase agreements, Energy or commodity supplies,
  • Off-take agreements,
  • Special Purpose Vehicles (SPV’s) and multiple jurisdictions globally considering legal and tax requirements,
  • Investor models, investor identification and engagement,
  • Risk identification,
  • Project financing options and,
  • Reaching financial close as quickly as possible.

Hydro Power Station Project Development

There are multiple small to medium hydro opportunities in Southern Africa and many large hydro opportunities in Africa. Various factors influence the economic viability of these projects. If the critical factors are not considered early in the evaluation, money can be wasted on uneconomical projects. Small hydro facilities have very different drivers compared to large hydro plants.

Ingwe Projects and Consulting has evaluated many hydro projects and saved clients millions of dollars by early identification of the critical success factors. These projects included Uganda, Mozambique, Nigeria and South Africa.

Many municipalities have good hydro opportunities or have hydro plants experiencing financial or technical challenges. Ingwe, in collaboration with municipalities, treasury, financiers and hydro operators, lead and in some cases own hydro facilities through Public Private Partnerships (PPP’s). This provides low-cost electricity to the municipalities through their assets, without creating balance sheet liabilities or operational headaches.

Key factors considered by Ingwe:

  1. Client objectives
  2. Development rights
  3. Seasonal fluctuations
  4. Hydrological studies
  5. EIA & Community impact
  6. Permitting process
  7. Financial models and Project financing
  8. Optimal Legal structures & Investment models
  9. Technology selection