First Mover PPP Prefeasibility Study

  • Lesotho
Duration of assignment

9 months

Year: 2020

  • World Bank
Description of project

The consultant prepared a pre-feasibility study (PFS) for the World Bank of the solar photovoltaic (PV) mini-grid PPP described in the Annex.
The PFS considered strategic, economic, commercial, financial, legal, social, environmental, affordability, and value for money (VfM) factors. The PFS provided an assessment of the likely overall viability of the PPP project, whether a PPP solution should have been pursued, and what form of PPP should have been implemented.
The task was undertaken in close consultation with the Procurement Unit responsible for the PPP, the Ministry of Energy (MoE), as well as MoF, MDP, other government agencies, and stakeholders. The consultant actively engaged with government agencies and stakeholders to obtain and generate data, information, and stakeholder feedback required to prepare assessments. A 'learning-by-doing' approach was employed to develop the capacity of government staff and stakeholders while strengthening PPP systems.

Services provided

The PFS presented the rationale for the proposed PPP, explored its features, and compared options for structuring and delivering the project. The PFS identified and prepared the best option for achieving the objective. The assistance to the World Bank was used by the Bank in advising the Procurement Unit, MoF, and MDP in understanding and designing the PPP, in assessing the viability of the PPP, and the steps/process and requirements to continue the preparation of the PPP if viable. The Procurement Unit, MoF, and MDP made their own independent decision as to whether to proceed or not with any PPP and if so, how and in what form.

The consultant prepared a comprehensive PFS that detailed the findings and conclusions of the assessments, reviews, and due diligence undertaken, highlighting any potential problems that may have influenced the viability of the PPP. The PFS also identified and recommended possible solutions to any barriers to project viability.

The consultant emphasized a 'learning by doing' approach to transferring knowledge, skills, and expertise. Activities were conducted in a manner that ensured an active and well-informed engagement of the Procurement Unit, MoF, and MDP, and other relevant government agencies. Such efforts facilitated a gradual, country-led approach to capacity development of government agencies and their staff, other stakeholders, and the systems they used. The consultant may have been required to participate in seminars, workshops, and other events to obtain information required for the PFS. This may have included preparing material on the key findings and lessons from the team's activities. All work had to comply with relevant laws and regulations, the draft PPP Regulations, and good PPP practices from other countries. The PPP prepared delivered a public service and otherwise conformed to the definition and form of a PPP set out in the draft PPP Regulation.

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