Abidjan, Côte d’Ivoire, 21st October 2020: The African Legal Support Facility (ALSF) hosted the second of a series of four (4) webinars conducted exclusively in Portuguese. This series address salient topics pertaining to natural resources, infrastructure, debt, and power from a Lusophone perspective. The initiative is designed to provide a platform for discussion of key issues to the benefit of a Lusophone audience, as well as identifying trends, challenges and opportunities for Lusophone Africa. The second webinar focused on the key principles of risk allocation in power projects and addressed relevant considerations for government officials involved in the procurement and negotiation of power projects.
The second Lusophone webinar discussed the concept of “risk allocation” as a fundamental principle and cornerstone of contract negotiations in the power sector. Moderated by Mr Adelino Amado Pereira, Partner at OADL & Associados, the webinar featured a panel of experts with experience in Lusophone Africa, both from the public and private sectors: Mr Carlos Yum, Director General of the “Gabinete de Implementação do projecto Hidroeléctrico de Mphanda Nkuwa”, Ms Rita Madeira, Legal Counsel, African Legal Support Facility, Mr Manuel Protásio, Infrastructure, Energy & Natural Resources Group Executive Partner, Vieira De Almeida & Associados (VdA), and Mr Pedro Amaral Jorge, Board Member of ALER (Lusophone Renewable Energy Association).
The speakers laid out the principles of project finance, examined the concept of risk sharing and allocation, and discussed the implications of the different stages of project development and implementation on the allocation of risks. By bringing together experts from both the public and private sectors, the webinar provided an opportunity for participants to gather rich and diverse views about the challenges of power project development, including some of the most topical risks such as the currency risk, demand risk and how performance risk can be addressed in intermittent renewable technologies.
Attended by participants from Angola, Mozambique, São Tomé and Príncipe, Cabo Verde, and Guinea Bissau, this power webinar gave rise to a lively discussion in the Portuguese language and highlighted key considerations such as the importance of a balanced allocation of risks between the parties as an integral part of successful projects.
About the ALSF
Created by the African Development Bank in 2010, the ALSF supports governments in negotiating complex commercial transactions, providing legal and technical assistance in public-private partnership projects across the oil and gas, mining and energy sectors, and covering sovereign debt issues and creditor litigation.