Transactional advisory to state department of petroleum, Kenya.
Since 2017 we have worked as Financial Transaction Advisors to the State Department of Petroleum in Kenya, as part of a Consortium with Fichtner Management Consulting and Taylor de Jongh. Responsibilities include supporting Kenya’s Government on all contractual negotiations with the Kenya Joint Ventures (Tullow Oil, Africa Oil and Total). This extends to evaluating the financing terms of the 800km pipeline from Lokichar to Lamu. Our involvement also supported the signing of the Heads of Terms (HOTs) and the first Kenya Crude Oil Sale in 2019.
Financial advisory to power developer Anergi.
Since 2019 we have acted as Financial Transaction Advisors to London-based power developer Anergi. Our work includes advising on the gas conversion of their 90MW Heavy Fuel Rabai Power Plant in Kilifi, Kenya. Anergi is a holding company owning equity interests in seven generation assets with a total of 1,786MW (gross) and is a joint venture between Africa Finance Corporation & Harith General Partners. Leadwood is assessing the commercial viability of the gas conversion and supporting the Investment Committee in this decision. Our team is also advising the private sector on options for importing natural gas.
Consultation on Kenya’s first local currency PPA
Alongside Dalberg Advisors, we completed and presented a study on the feasibility of local currency-denominated Power Purchase Agreements (PPAs). We found that local firms in Kenya comprising pension funds, commercial banks, and insurance companies have a projected capital availability of KES 4.45 Trillion available over the next decade. The utilization of this local capital could significantly reduce the development cost of energy projects and mitigate against the forex component applied on power purchase tariffs, which is passed on to consumers. The work was launched by the Principal Secretary of the Ministry of Energy.