K&M was retained as Lead PPP Transaction Advisor by Kenya’s PPP Unit for a 140 MW geothermal power plant to advise KenGen on designing a bankable PPP transaction. The Olkaria VI power plant is being developed through a PPP arrangement governed by the PPP Act, 2013. The PPP Unit is embedded within the Kenyan National Treasury. KenGen will supply steam to the power plant. The power plant will be developed by a Special Purpose Vehicle (SPV) which will be majority owned by a private sector partner.
K&M’s scope of work included preparing a feasibility study to establish the optimal project commercial model, contract structure, and technical configuration, and confirm the bankability of the Olkaria VI project. K&M’s staff recommended the best Public-Private Partnership (PPP) model, advised KenGen on risk allocation, and prepared all necessary project agreements. K&M has also prepared the request for qualifications and request for proposals and will advise KenGen through the procurement process and proposal evaluation, as well as provide transaction advisory support through to financial close.
Given that this project is being developed under Kenya’s Public Private Partnerships Act, K&M is responsible for ensuring that all documents and processes are compliant with said Act and for supporting KenGen and a special Governmental PPP Unit in obtaining required approvals. During all stages of the assignment, K&M has been responsible for managing a team of advisors which includes AECOM as geothermal technical advisor, international and local counsel, and environmental specialists.