GAP gets DFID “Green Light”
Tuesday, December 11th, 2012
In November 2012, the Green Africa Power (“GAP”) initiative received approval from the Department For International Development (“DFID”) for the UK’s proposed contribution to GAP, a new company to be established under the Private Infrastructure Development Group (“PIDG”) Trust.
A substantial amount of funds have been dedicated to help capitalise GAP which will support the implementation of Renewable Energy projects in power starved Sub-Saharan Africa. GAP’s support will be through the provision of deeply subordinated equity tranches into project companies and / or the issuance of guarantee products to cover specific project risks which could facilitate successful financing for such projects. GAP will also enter a policy dialogue with host Governments to help move participating countries towards cost-reflective tariffs.
Portland Advisers, in conjunction with Trinity LLP, an Africa-focused law firm, assisted in the preparation of a business plan and detailed financial model on behalf of PIDG (see our press release in Sept 2011). This business plan formed the basis for DFID’s internal business case in obtaining approval to proceed and invest UK donor capital.
Portland Advisers, in co-operation with Trinity, will remain closely involved with GAP during the next phase of its implementation process. Further news to follow.