Advisor for the Unbundling, Corporatisation, and Privatisation of the Electricity Authority of Cyprus (EAC)
MRC worked in the consortium that advised the Government of Cyprus and EAC on the advantages and disadvantages of all possible options/scenarios regarding the future ownership status and structure of the vertically integrated utility EAC. The context was the search of higher performance levels and the compliance with the EU Energy Acquis, notably the Third Package.
Different unbundling solutions and private sector participation schemes were analysed, together with a market sounding exercise among potential private sector investors in the company and a quantitative evaluation of the operational and financial implications.
Strengthening the Central Power Purchasing Agency
In 2016, the Asian Development Bank hired MRC to support the CPPA-G to develop the new power market model for Pakistan and enable its implementation. The general objective of the assignment is to provide management support, capacity building, and training for the CPPA-G management and employees.
Specific objectives are to i) support to the CPPA G in designing and implementing the Competitive Trading Bilateral Contract Market (CTBCM), ii) define all aspects required for transition from the single-buyer model to the competitive regime, and iii) identify all stakeholder conditions/actions needed for the next market phase.
The advisory is carried out in 3 phases:
-Phase I. High Level Market Model Design. Assessment of the “as-is” (policies, regulatory, legal andtechnical) situation and Definition of the Conceptual Market Model and a roadmap for the transition management
-Phase II. Detailed Market Model Design. Design a detailed plan for the implementation of the defined and approved Market Model for Pakistan, including, Identification of commercial instruments required, CPPA-G Human Resource Assessment, Stakeholder Capacity Building, and development of / alignment with other sector stakeholders needed for model implementation.
-Phase III. Support during the actual implementation of new market model implementation by 2020 (this phase is still in negotiation stage – current contract covers phases I & II).
Preparation of a 5-year Investment and Financing Strategy for KPLC
The most critical issue facing KPLC is to ensure that sufficient new capacity and network expansion are made available quickly to meet continuing rapid electricity demand growth. In the 2016-2021 period this is estimated to require US$ 1.5-3.0 billion in the distribution and transmission network (as well as to meet Government electricity access targets).
This assignment was therefore aimed to provide KPLC with a system to enhance its long-term financial planning and optimise funding resources – that allows the company to reach their access targets without compromising its financial sustainability.
The main activities of the MRC team were:
Capacity Building. MRC experts always keep training and knowledge transfers as a key priority in our projects. In this case, training courses on financial modelling and financial planning for utilities was provided to KPLC staff in combination with hands-on work and case simulation in the financial tool itself.
Advisory on Investment & EPC opportunities for green field power generation projects
MRC assisted the client (a private sector investor) to evaluate numerous IPP opportunities, and pursue the early-stage development phases of greenfield power generation plants. Opportunities are mainly thermal power plants ranging from 250MW to 1000MW, in different locations around Nigeria (including Calabar and Awka Ibom, among others).
MRC provides on-going advisory in the following areas:
a) Integrated evaluation of project feasibility – technical, regulatory/legal, financial, market, risk & other
b) Financial modelling for project viability, scenario analysis, risk assessment, and portfolio options
c) Identification & tracking of short, medium & long term project development needs.
d) Meeting all PPA conditions precedent
e) Transaction document package evaluation
f) Coordination with sector stakeholders & authorities
Market Assessment for Solar PV Investment
MRC assisted an international Solar PV developer to assess the Argentinean, Colombian and Mexican power markets for possible investment.
MRC experts provided advisory on market entry assessment & options in: