K&M was engaged by the World Bank to conduct a pre-feasibility study and market sounding for the development of a proposed clean energy fund for Egypt. K&M was engaged after successfully assisting the World Bank with the conceptual design of the fund in an earlier stage of the fund’s development. The purpose of the pre-feasibility study was to assess the market demand for the fund’s services and to develop a more detailed proposal for the fund’s organization, management, capitalization needs, and product offerings.
K&M performed a market sounding for the fund’s services with renewable energy project developers who had been shortlisted under Egypt’s Feed-in-Tariff (FiT) program. K&M conducted an online survey, hosted a workshop in Cairo, and held follow-up interviews with project developers to identify the most serious market barriers for raising project financing and which of the fund’s potential services would be most helpful in addressing these barriers. From the market sounding, K&M determined that the fund would be most effective by creating a foreign exchange liquidity facility to address issues with limited currency convertibility between Egyptian pounds and U.S. dollars, and by offering technical assistance to the Government’s implementing agencies for fulfilling their responsibilities in the project development process. K&M developed detailed options for how the proposed liquidity facility would operate and how its services would be priced. K&M prepared a financial model of the facility and performed sensitivity analysis of the facility’s major risks. The results of the market sounding and financial analysis were incorporated into a pre-feasibility study report. The report was submitted to key decision-makers for approval of the fund’s continued development.