The assignment supports IFC in developing a high-level Value for Money (VfM) and Affordability analysis framework for transmission PPP projects in Africa. The framework is designed to enable comparison of conventional public procurement and PPP delivery through a Public Sector Comparator (PSC), PPP Reference Model, and quantitative and qualitative VfM assessments, while also evaluating the affordability of transmission projects to utilities.

K&M developed the PSC, PPP Reference Model, quantitative and qualitative VfM assessment tools, and an Affordability Analysis Tool to determine the minimum transmission tariff required for utility cash-flow neutrality. Services included development of financial and risk-adjusted procurement assumptions; analysis of CAPEX, OPEX, financing, payment mechanisms, risk allocation, discount rates, tariffs, and incremental utility revenues and costs; integration of the tools with IFC’s existing financial model; development of dashboards and sensitivity analyses; testing and validation using two IFC transmission projects; and finalization and presentation of the integrated VfM and Affordability tool package.