“For projects of 10MW and below, PPAs should be denominated fully in local currency. Given their size, these projects can comfortably be financed in local currency by local banks and institutional investors. For projects above 10MW, a hybrid tariff with partial indexing to hard currency is the most viable option,” said the report looking into the viability of financing power projects locally. The study was done by Dalberg Advisors and funded by GuarantCo, which mobilises local currency investments in infrastructure projects. “A consideration can be given to large power projects, which cannot be completely financed by local currency and therefore take hard currency financing,” said the consultants.

Source: Standard Digital June 05, 2018 21:22 UTC