Nigeria – New 600MW Coal Fired IPP Development

Provision of advisory services and financial and tariff modelling to be incorporated in to the PPA for a 2*150MW initial stage of the 1200MW coal fired IPP.

The provided services will facilitate calculation and negotiation of capacity and energy tariffs with NBET and NERC. A feature of the project was consideration of separate investments for transmission infrastructure and for fuel transportation for which a separate set of tariffs is required.The model will also:

1. Simulate anticipated revenue from Power Purchase Agreements and to compute required tariff (capacity and energy) to achieve a target regulated return.
2. Optimise the existing project model to meet a particular tariff by varying a small number of identified inputs, in a form that can be used for negotiation with NBET.
3. Allow prospective lenders, investors and risk mitigation agencies to analyse the revenue, capex and opex to support any decision to participate in the project.