CTI PFAN Project Development & Financing Workshops for Africa Forum for Clean Energy Financing (AFRICEF)
CTI PFAN Africa Forum for Clean Energy Financing (AFRICEF)
Project Development & Financing Workshops
The Private Financing Advisory Network (PFAN), initiated by the Climate Technology Initiative (CTI), acts as a financing, coaching and investor matchmaker service to guide clean energy projects to successful close. During the course of May, three Project Development & Financing Workshops for the short-listed projects, participating in the CTI PFAN Africa Forum for Clean Energy Financing (AFRICEF), were held in Kampala, Maputo and Johannesburg.
The workshops were designed by CTI PFAN to provide expert input to the selected project developers on the development and structuring of their projects and the preparation of bankable business plans and investor pitches from professional advisors, clean energy investors and development banks. The workshops marked the beginning of intensive one-on-one coaching that the selected project developers will receive over the next 2½ months from professional advisors to prepare their projects and business plans to be showcased to targeted investors at the AFRICEF Financing Forum, which seeks to match promising clean energy projects from Africa with investment and financing, to be held in Johannesburg on 15th September 2010.
16 projects were shortlisted to participate in the CTI PFAN AFRICEF process after a regional call for proposals for renewable and clean energy projects, launched earlier this year. The projects were selected on the basis of their commercial viability and interest for investors as well as their potential to produce clean energy sustainably and reduce greenhouse gas emissions, while achieving other environmental and developmental benefits. Coming from Uganda (4), Mozambique (4), South Africa (3), Kenya (3), Tanzania and Ghana the projects represent a total required investment volume of USD 155 million and are seeking to raise an aggregate USD 38 million of equity investment for the deployment of a range of clean and renewable technologies in the fields of small hydro, biomass to power, gasification, bio-fuels production, biogas, wind and solar. Together the projects have an estimated combined GHG emission reduction potential of 1,5 million tonnes of CO² equivalent per annum.
 During the workshops the selected project developers received expert inputs and advice on:- the key elements of a business plan and growth strategy;
- expectations and requirements of investors and bankers;
- how to prepare and present an investor pitch; and,
- how to target and select investors.
The workshops were conducted on a participatory basis and included presentations and discussion of the selected projects in work groups and case studies. The aim of the workshops was to provide participants with an understanding of the expectations and requirements of different investor types and to provide the requisite tools and information for project developers to prepare bankable business plans and get maximum benefit from the ensuing one-on-one coaching leading up to the AFRICEF Forum.
In all the workshops were attended by 59 participants - 25 in Kampala, 13 in Maputo and 21 in Johannesburg - including the shortlisted project developers for the AFRICEF Forum as well as a number of the less advanced, but viable projects submitted under the call for proposals, which have been identified for longer term development and which may be inducted into the CTI PFAN pipeline for ongoing development support and advice.
 Other highlights of the respective workshops included:- Keynote Address from the Paul Mubiru, Commissioner of Energy from the Ministry of Energy in Uganda;
- Keynote Address from the Kevin Nassiep, CEO of the South African National Energy Research Institute;
- Presentation & Input from Philip Gwage, UNFCCC Point of Contact for Uganda & Lead Negotiator for Uganda on Technology Transfer;
- Presentation from Godfrey Turyahikayo, Executive Director of the Rural Electrification Agency of Uganda;
- Presentation & Input from Mario Batsana of FUNAE the Energy Fund of Mozambique;
- Presentation & Input from Habil Olaka of the East African Development Bank;
- Presentation & input from Michael Feldner of E + Co; and,
- Presentation & input from Amanda Luxanda of REEEP.
Participant feedback from the workshops was positive. "CTI PFAN is providing a vital link between energy project developers and potential investors. Without initiatives like this, many energy projects in Africa have absolutely no chance of raising start-up equity," said Conrad Nkutu, Chief Executive of Greenewus Energy in Uganda.
Bradford Wills from Dalin Yebo Trading and Development in South Africa had similar views: "In trying to obtain funding for development of new technology, one often doesn't know where to look or what to do to start the process. Through this forum, we've finally found not only an ear to hear about our great ideas but also a hand to guide us where to go. So I'm confident that with this opportunity our good business ideas will be met with willing investors."
AFRICEF is organized by the Climate Technology Initiative (CTI) with the support of the International Center for Environmental Technology Transfer (ICETT), and the local Co-Organisers - the Rural Electrification Agency of Uganda, the Private Sector Foundation of Uganda Energy for Rural Transformation Programme (PSFU ERT), the Energy Fund of Mozambique (FUNAE) and the South African National Energy Research Institute (SANERI). AFRICEF is sponsored by the Renewable Energy & Energy Efficiency Partnership (REEEP), the United States Agency for International Development (USAID), the CTI and ICETT. AFRICEF is managed by PPL International which is also the Global Coordinator for CTI PFAN.
For further information, please visit www.cti-pfan.net.
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