The World Bank’s International Finance Corp. (IFC) has awarded contracts totaling US$2.3 million to legal and technical-economic consultants to assist in development of the 750-MW Kafue Gorge Lower hydroelectric project in Zambia.
IFC, which is advising Zambia’s Office for Promoting Private Power Investment (OPPPI) on development of Kafue Gorge Lower, said Norton Rose of the United Kingdom received an US$800,000 contract to serve as legal consultant.
IFC had called for proposals last year for a specialized legal firm to undertake a legal review to guide OPPPI in development of the project. It anticipated work could begin with a due diligence review of the existing legal environment to launch a hydropower independent power producer in Zambia.
Based on that work, IFC is to advise OPPPI on key issues of a successful transaction. Norton Rose also is to advise during implementation of the transaction, including pre-qualification and final transaction documents.
IFC said MWH of the United States received a US$1.5 million contract to serve as technical and economic consultant.
IFC had called for specialized engineering, financial, and economic consultant services beginning with a review of existing studies of the project. Based on technical due diligence, market sounding, financial assessment, and risk allocation analyses, IFC is to advise OPPPI on key transaction issues.
MWH is to perform a power market review; a feasibility study, including meteorology, hydrology, geotechnical drilling, dam and facilities design, and transmission capacity studies; a financial analysis; and technical contributions for the implementation of the transaction.
Zambia Electricity Supply Corp. this week said it is talking to financiers from Japan, India, and Western countries, seeking a US$600 million financing package to build and upgrade needed hydroelectric projects including Kafue Gorge Lower. (HNN 2/27/08)