MayCap acted as financial advisor to the World Bank to assist with the development of optimal financing strategy.

The Project will be built on the river Naryn and will be one of the largest hydropower projects in Central Asia with a capacity potential of 1,860 MW. The Government of Kyrgyzstan (GoKR) is currently considering SPV ownership structures which could involve:

• 100% ownership by GoKR,
• Shared ownership by GoKR, Government of Uzbekistan and the Government of Kazakhstan, or
• International private sector developers and investors for a significant portion of the equity, together with GoKR alone or with the three governments as above.

Abhay Ketkar supported the following activities:

• Develop Preliminary Information Memorandum (PIM) and structured questionnaire for market soundings
• Present a long list of sponsors, EPC Contractors, O&M Contractors. Conduct market sounding through engaging in structured consultations with the shortlisted parties.
• Review and consolidate the feedback received in the form of market sounding deck and further refine the financing options.
• Prepare a financial model with detailed overview of total project cost and assumptions based on the maket sounding.
• Asses various funding options.
• Preparing a financial strategy document summarizing the:
  • the most suitable financial structure and potential funding sources for each structure;
  • analyze the financing availability and potential terms and conditions informed by market sounding;
  • an adequate risk matrix;
  • identify the debt carrying capacity in different export and domestic sales scenarios;
  • propose feasible options to finance the Project including funding source, terms, timing, phasing and currency; and recommend a roadmap and implementation plans to achieve the desired funding outcome.

For further information, contact Abhay Ketkar at abhay.ketkar@maycapadvisors.com.