Madagascar: Facilitating negotiations with private power producers
Decision makers in Madagascar hire CPCS to support negotiations with independent power producers.
The challenge
The Government of Madagascar has selected independent power producers (IPPs) to develop two hydropower projects worth US $1.3 billion.
As negotiations between the government and the power producers unfold, the former has expressed the need for additional expert advice. Specifically, the government wants a fresh set of eyes to assess the accuracy and completeness of the IPPs’ proposals. It has also requested commercial and technical pointers for the next steps of the negotiation process.
The Ministry of Water, Energy and Hydrocarbons thus requested CPCS to join forces with the African Legal Support Facility to manage the negotiation of these the two IPP projects.
What we’ll do
CPCS plans to contribute to the negotiation process in these ways:
- Analyze technical studies on the design of the hydropower projects
- Support the drafting of technical clauses in the Power Purchase Agreements (PPAs) and Concession Agreements
- Review and negotiate technical appendices
- Participate in face-to-face negotiations in Antananarivo
“Our ultimate goal is to help the government make informed decisions throughout the negotiation process in respect to technical and commercial aspects,” says Clara Kayser-Bril, power expert at CPCS.
Impact
The objective is to steer negotiations so that they result in a fair deal for both the government and the IPPs. The projects should be bankable, but they should also protect the interests of the Madagascan electricity consumers as well.
