Power Africa, co-hosted with Cliffe Dekker Hofmeyr, launched its fourth ‘Understanding’ handbook at the African Utility Week in Cape Town – Understanding Power Project Procurement.

This handbook aims to outline the principles of successful power project procurement in order to accelerate the critical planning within the African power market.

Addressing a group of delegates at the launch, Mohamed Badissy, Senior Attorney for Energy and Finance, Power Africa and co-author, said they have been very happy to see the influence this project has had on utilities and bankers.

Badissy hopes that the handbook is a “positive signal of a way forward for the market and guidance on how to achieve the scale of procurement that we know is all necessary for Africa to breach that energy gap and most importantly, it’s the start of a new conversation.”

In an exclusive interview with ESI Africa, Badissy explained that a PPA should be the most “boring document” possible. “When you look at all PPAs from transactions that have all successfully closed, they look very similar; and when you look at the ones that haven’t closed you see the differences that have arised.”

The ‘Understanding’ series

Power Africa has developed a series of ‘Understanding’ handbooks to showcase best practice around successful project development.

This series was “coordinated by the U.S. Department of Commerce’s Commercial Law Development Programme and the African Development Bank’s African Legal Support Facility,” Power Africa said in the handbook’s introduction.

The series includes Understanding Natural Gas and LNG Options; Understanding Power Project FinancingUnderstanding Power Purchase Agreements; and lastly Understanding Power Project Procurement.

African Utility Week