CLIENT: GAMBIA MINISTRY OF PETROLEUM AND ENERGY

Country:  Gambia

Sector:  State, Local, and Federal Government

Service:  Transaction Advisory

Project:  Energy Transaction Advisory and Project Management

Project Description: IBS Gambia, a wholly owned subsidiary of IBS, was appointed as the Energy Transaction Advisor (ETA) for renewable energy needs by the government of The Gambia, Ministry of Petroleum and Energy. Upon its appointment as the ETA, IBS Gambia obtained and reviewed the Electricity Roadmap for The Gambia and related projects such as the 6MW Wind Plant for Tujereng a town in the Gambia and the Mini Grid enabling framework. IBS noted that the 6MW Wind Plant (“The Project”) was determined to be a high priority by the President of the Gambia. 

The primary objective of the Project was to increase The Gambia power generation capacity using renewable sources that can demonstrate market driven commercial viability of such investment in the energy sector. Other objectives included creating a structure and an environment that allowed for the participation of local and diaspora stakeholders investment in the energy and other sectors for independent management of the investment and its underlying assets. This approach showed better transparency and accountability of use of public funds, as the project has potential to be a public-private partnership, using a management structure created through a Special Purpose Vehicle (SPV).

The following were performed to bring the project to fruition:

• IBS commissioned an updated feasibility study to determine whether the Project was technically feasible and financially viable. 
• The study included a financial model which considered demand forecast, market size, project cost (CAPEX and OPEX), financing structure and revenue forecasting.
• Environmental impact assessment was conducted which considered noise & shadow flicker impacts, health & socio- economic conditions.
• Physical and cultural heritage, current land issues and resource for traditional purposes, and historic, archaeological, and paleontological or architectural significance were examined. 
• Technical and engineering assessment were conducted, which considered grid integration concepts, transmission and distribution system assessment, permissible voltage variations, wind speed, and turbine size. 
• IBS also organized an investor roundtable and assisted in the selection of an investor/developer for the Project. 
• Other responsibilities under the Project Included negotiation of power purchase agreement between the developer and various agencies of the government that have jurisdiction over such activity; and establishment of a special purpose vehicle (SPV) to manage the project operations and ensure equitable distribution of revenue and proper debt service, if any.