Finance, Contracts and Risk Mitigation for Private Power Investment in Africa
UNLOCK GROWTH & INVESTMENT IN AFRICA’S POWER SECTOR
Course Overview
This specialised UCT GSB short course offers delegates a thorough understanding of the power-sector financing landscape. Providing advanced theoretical knowledge and practical learning experiences, it covers the fundamentals of power project financing, infrastructure investment, and risk mitigation measures while diving into a variety of Africa-specific case studies. Learn how to implement positive and sustainable social and economic development in Sub-Saharan Africa and add your specialised skills to one of the continent’s most essential sectors.
*This course is offered in partnership with The Power Futures Lab, a centre of excellence and expertise on Africa’s power sector at the UCT GSB.
What you will walk away with
- Exposure to international and regional best practices for private sector power investments.
- The skills and knowledge to understand and analyse private power investments in Sub-Saharan Africa.
- A detailed understanding of project finance, key project contracts, risk mitigation and credit enhancement measures.
- An opportunity to develop a peer network for ongoing knowledge exchange
- A deep understanding of the theory and practice of power sector financing.
- The skills to build capacity in infrastructure investment, reform, and regulation in support of sustainable development.
- Knowledge of the core elements of Requests for Proposals, PPAS, Implementation Agreements, and Direct Agreements.
- A thorough understanding of grid-connected projects, renewable energy projects, captive power projects, mini-grid projects, and stand-alone systems.
UNLOCK GROWTH AND INVESTMENT IN THE POWER SECTOR
Sub-Saharan Africa is plagued by a severe shortage of power, with far-reaching consequences for social and economic development. Governments are unable to mobilise sufficient capital and as a result, private independent power projects (IPPs) are now one of the fastest growing new sources of investment in the sector. The specialised Power Sector Financing course aims to plug this skills gap and unlock growth and investment in the sector.
Additional Course information
MODULE BREAKDOWN
Curriculum Overview
Project Finance Fundamentals
- Explore the reasons for and constraints of private power investment in Africa, as well as the conceptual foundations of the main financing model for private power projects: project finance.
- Be exposed to main debt and equity concepts and learn how to read legal documents. The financial modelling session will serve as an introduction to the tool, mainly looking at how to forecast cashflow.
Cost of Capital & Expenses
- Explore the two main types of project investors - shareholders or sponsors (equity investors) and lenders (debt providers) – as well as project expenses.
- The role of credit rating agencies in determining the cost of capital; the impact of taxation; capital expenditure and operational expenses; and key issues/risks for renewable energy project.
Project Contracts
- Deep dive into the most important contract for any IPP: the Power Purchase Agreement (also called the offtake agreement).
- We will also introduce sensitivity analyses during the financial modelling session, and cover grid interface contracts and codes.
Risk Mitigation
- Review of key project risks, as well as discussions about investment treaties, international arbitration and the choice of governing law.
- Overview of possible risk mitigation products and options.
- Identification and mitigation of environmental, governance and social risks, as well as delve more deeply into how we can improve the social performance of power projects.
- Discuss the various roles of independent engineers throughout the project lifecycle, including the critical role played in risk identification and mitigation.
Procurement, China and Alternatives
- Apply what you’ve learned about project finance to alternative contexts and models.
- Procurement, unpacking how our understanding of project finance should inform the design and implementation of procurement programmes – including at the local government level.
- Reflect on how project finance principles and structures can help fund both transmission projects, as well as just transition programmes.
Minimum Requirements:
- NQF4
- English proficiency
Who should apply:
- Board members
- Managers and staff in utilities
- Individuals working in government
- Individuals stepping in to new managerial roles
- Regulatory authorities
- Professionals in the private sector
- Project developers
- Financiers
- Legal and technical advisors
- Consultants
- Civil society
What our alumni say
Learn with the best
Our Internationally acclaimed researchers and teachers are all dedicated and gifted individuals who contribute directly to UCT GSB's reputation of excellence.
Course Convenor
Dr Wikus Kruger is the Power Futures Lab Director, based at the University of Cape Town’s Graduate School of Business.
Course Lecturer
Daniel Gross is an adjunct professor at Yale University, where he teaches courses on the finance of renewable energy at the business school, the law school, and the school of the environment.
Head: Executive Education
Jodie Martin is the Executive Education Head of Department where he leads and supports our world-class Executive Education delivery team.
Manager: Executive Education Recruitment
Tarryn is a seasoned sales & marketing professional with over 8 years of experience in the higher education short course industry.FAQ
- 15% for 3 - 6 applicants (bulk discount applied from third applicant)
- 10% for 7+ applicants (bulk discount applied to all applicants)
- 10% for alumni of UCT GSB academic and Executive Education course
The UCT GSB's Breakwater Campus is situated in the heart of Cape Town's most popular tourist attraction, the Victoria and Alfred Waterfront. Centrally located and easily accessed, the UCT GSB is just 1.5km away from the central business district and 20 minutes from Cape Town International Airport.
As an added benefit to studying at the UCT GSB, you'll be situated in one of the most beautiful cities in the world
Certificate of completion
Flights & accommodation costs are not included.
The course is a non-credit-bearing course delivered at the equivalent of an NQF 8 postgraduate level of study.
The course is accredited through UCT, which is a registered public higher education institution with the Council on Higher Education (CHE). Each programme is accredited through an internal UCT quality assurance process, as delegated by the CHE, ensuring the excellent quality of our offering.In short, this course does not refer to NQF levels.
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