The Eastern and Southern African Development Bank (PTA Bank) plans to expand its infrastructure lending facility within the Project Infrastructure Finance (PIF) Unit. PTA Bank contracted Nathan to undertake a market study on the demand for infrastructure investment in the countries of DRC, Ethiopia, Malawi, Mozambique, and Rwanda. Nathan was also tasked to identify potential infrastructure financing opportunities for the PTA Bank; in particular, in the energy, water, telecommunications, and transportation (roads, ports, airports, etc.) sectors.

Additionally, the PTA Bank sought capacity building in the use of financial modeling tools and risk assessment. The overall goal of the project is to provide the PTA Bank with an in-depth understanding of infrastructure investment opportunities and assessment methods in the transportation, energy, water, and ICT sectors in the countries of the DRC, Ethiopia, Malawi, Mozambique, and Rwanda.

Nathan provided the following services to the PTA Bank:

  • Market Study for Infrastructure Finance in Transport, Energy, Water and ICT: The Market Study provided country and sector specific investment recommendations for the countries of DRC, Ethiopia, Malawi, Mozambique, and Rwanda. We analyzed the regulatory, administrative and institutional policies shaping the market for each sector, and determined relevant infrastructure trends in each country. We assessed the supply and demand for infrastructure financing, considering the activities of other donors, and assessed the potential market for Public Private Partnerships (PPPs) within each sector and country. The key recommendations identified the priority areas (or projects) in the targeted countries and investment strategies to finance such projects.
  • Financial Model Templates and Risk Assessment Tools: The financial model templates will provide a tool for the PTA Bank to properly evaluate the financial feasibility of infrastructure investments and associated risks. One template or sample financial model was developed for each sector, accompanied by a user’s manual, list of technical performance indicators, and risk assessment tool. Nathan provided training on financial modeling, and on these specific tools.
  • Training Materials: Eight training sessions were delivered to the PTA Bank Project Infrastructure Finance staff, on the following concepts: transaction structuring and due diligence, credit and risk analysis, fundamentals of financial modeling, weighted average cost of capital calculation, PPPs in infrastructure projects, financial analysis of infrastructure projects, and various case studies.

Details

Office

Arlington

Client

Eastern and Southern African Trade and Development Bank (PTA Bank)

Dates

2014 - 2018

Country

Congo (Kinshasa), Ethiopia, Kenya, Malawi, Mozambique, Rwanda

Relevant Services

Transaction Advisory Services & Project Finance Structuring

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