MayCap team co-advised the Ministry of Finance, Government of Ghana in relation to government support mechanisms for the development of upstream Gas to downstream Power sector.

The project had support from the World Bank through its partial risk guarantee (PRG) for the upstream gas development project. MayCap advised Ministry of Finance for a period of over 3 years from 2015 to 2018, working closely with Minister and Deputy Minister of Finance, the MOF team and also with the Electricity Company of Ghana (ECG).

Abhay Ketkar supported the following activities:

• Advised MOF and ECG in electricity demand/supply forecasting, assessing financing needs of the sector including need for government support, tariff rationalization, evaluating sources of generation including IPPs, together with payment mechanism (sector escrow structure)
• Involved in structuring of PPAs and GSAs on a tolling / energy conversion agreement basis and on a stand-alone arms-length gas supplier basis
• Structuring sector risk allocation, Government of Ghana support through a “Put Call Option Agreement” (PCOA) structure
• Due diligence and analysis of power sector value chain
• Analysis of IPPs (gas, solar, wind, biomass based) and credit enhancement mechanisms (including World Bank guarantees) to enhance bankability of the sector and ECG as the offtaker
• Development of detailed cashflow financial models for the sector – including impact of T&D losses and loss reduction initiatives
• Development of various options to structure a payment security mechanism for Government of Ghana/Off-taker

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

https://mofep.gov.gh