May 23, 2014. Radisson Blu, Victoria Island, Lagos
FINANCING & DOCUMENTING POWER PROJECTS
To enable Nigeria add an additional 5,000 MV capacity and to fund the Capital Expenditure requirements of generation and distribution companies, the Power Sector requires about $10 billion within the next few years. Similarly, the transmission grid requires an annual investment of about $1.5 billion for the next five years to ensure grid reliability and stability. It is therefore necessary for financiers, in house lawyers, independent legal practitioners, project managers and investment managers to be prepared to meet the challenges and opportunities presented by the facts stated above. In view of the foregoing, we are delighted to present to you this one day course which will afford you the opportunity to master the use of Project Finance and other options for financing large scale Power Projects.
KEY LEARNING POINTS
- Evaluate the various debt financing options for a Project, both on a Project Finance basis as well as other corporate debt financed options.
- Identify, evaluate & allocate key risks in Project Finance.
- Build your knowledge of practical application through case studies from real life Power Projects
- Learn from our highly experienced trainers to understand what to expect in the near future in Nigeria’s Power Industry.
WHO MUST ATTEND
- Electric Generation and Distribution companies
- Banks and Financial Institutions
- Governments and Power Sector Regulators
- Large power users
- Independent power producers/Market operators
- Lawyers and Consultants
- Legal & Regulatory Background
- Overview of the Electric Power Sector Reform Act 2005
- Other Legislation, Rules & Regulations
- What to expect after privatisation: the stages from transition to the Long Term Market
- Power Purchase Agreements
- Key features of different Power sales agreements
- Allocation of Risks in PPAs
- Key Negotiation Issues in Gas Sale Agreements (GSAs)
- Nigeria’s Gas Policy and Impact on GSAs
- Key Negotiation Points for buyers and sellers under GSAs
- Bankability and avoiding mismatch with PPAs.
- Financing & Documenting Power Projects-An overview
- Funding needs across the Power Sector Value Chain
- Acquisition Finance/ CAPEX Finance for the DisCos and the Inherent Risks
- Sources of Finance
- Debt Finance
- Equity Finance
- Funding Risks & Mitigation/Security
- Collateral for CAPEX Funding
- Technical Consultant/ Performance Guarantee
- Key Project Agreements
- Shareholders Agreement/EPC Contract
- Loan Agreement/Security Documents
- Operations and Maintenance Agreements
- Key Features
- Allocation of Risk
- Pre & Post Operational Phase- The Value Chain Operation
- Post Privatisation – What next?
- From Transition to the Long Term Market
Osaro is Managing Partner of Perchstone & Graeys. He was admitted to practice in England and Wales in 1989 and was conferred with the prestigious rank of Senior Advocate of Nigeria in 2008. Osaro currently leads his firm’s banking and structured finance team. A notable speaker, Osaro has made presentations to select audiences on Securitization, Financial Derivatives, and the Capital Market. His firm is currently advising GE on an equity acquisition valued at about US$500m in a Nigerian operator of a 450 MW independent power plant in Aba, Nigeria. They are counsel to Westcom Power in respect of its license to construct and operate a phased 1000MW power plant, advised on the financing and negotiated the feedstock Gas Supply/Purchase Agreement and the Power Purchase Agreement. Amongst other landmark transactions, Osaro and his team advised the club of arrangers and the international financing institutions in respect of the US$1 billion non-recourse financing for the construction of the 4th and 5th LNG Trains.
Ayodele, a Shell Scholar is a Senior Associate in the energy practise group of Banwo & Ighodalo. He holds an LLM in Energy Law from the University of Calgary Canada and has extensive experience in energy (oil, gas and power) law and policy advising on the whole electric power supply value chain. He has acted for diverse clients in the energy sector and has contributed articles in various international energy journals including the OGEL and the Energy Regulations and Markets Review. He recently authored a book on the Nigerian Electric Power Sector. During the power sector privatisation exercise he advised a number of consortia 2 of which emerged preferred bidders.
The Training arm of Cowrie Partners provides industry relevant practical learning through carefully designed courses delivered by expert speakers. Cowrie Partners is a firm of commercial lawyers focused on responsible and ethical finance and investments. Our areas of practice cover financial institutions, power projects, oil & gas, real estate and infrastructure finance. We are committed to delivering interactive and sector specific training solutions that provide learning outcomes directly transferable to the business challenges faced by our delegates.