Infrastructure

Infrastructure holds the key to development in Africa but to date there has been limited success in meeting the challenge of infrastructure development. At Genesis Analytics we offer the tools and expertise needed to strengthen infrastructure planning, identify sources of finance and enable projects to be developed efficiently and effectively.

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Expertise Areas

Project appraisal

We appraise the financial and economic viability of projects in order to provide our clients with a basis for data-driven decision-making. Financial appraisal entails an assessment of the financial cash flows of a project by estimating the project-related revenues and costs. Financial appraisal only accounts for part of the impact of a project. The appraisal of public and social projects is expanded to include impacts that have a broader impact than financial viability. We therefore extend our analysis to include the socio-economic costs and benefits associated with project implementation.

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PPP transaction advisory

The Infrastructure and PPP Advisory practice assists public institutions (and occasionally private investors) in the planning, procurement and implementation of large-scale transactions for infrastructure and related services. Our transaction advisory expertise is in the context of Public-Private Partnerships (PPPs), which involve a contract between a public sector institution and a private party for the provision of an infrastructure asset or service. Our service spans the PPP project cycle. The expertise provided includes feasibility assessment, managing a competitive bidding process, contract negotiation and assistance to commercial close. 

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Climate resilience

Climate change represents a significant obstacle to sustained economic growth and poverty eradication.  In sub-Saharan Africa, poor people are disproportionately exposed and vulnerable to climate change shocks such as floods, droughts and heatwaves, which destroy livelihoods and assets. At Genesis, our Agriculture and Infrastructure teams work together to help increase the resiliency of individuals and communities to these climate shocks. 

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Regulatory economics

Genesis is also a leading provider of regulatory economics advice, offering the full spectrum of expert economic and regulatory accounting services to governments, regulators and private firms. We have played a central role in critical policy and regulatory debates across numerous sectors.  

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Projects

Early flood forecasting system for Incomati Basin

Project name:
Lower Incomati Flood Risk Management

Service:
Project appraisal

Sector:
Water
Infrastructure
Climate change

Area of Expertise:
Climate resilience

Client:
Climate Resilience Infrastructure Development Facility (CRIDF), DFID

Date:
2013 – 2017

Country:
Mozambique


The Incomati River Basin comprises 46 000 km² spanning South Africa, Swaziland and Mozambique and is home to more than 500 000 people. 

The basin, particularly downstream in Mozambique, experiences frequent flooding. This results in considerable loss to the formal and informal economies. The impact of flooding is aggravated by a lack of resources to cope with disaster and a history of limited coordination in flood control and management.

As part of the Climate Resilient Infrastructure Development Facility (CRIDF), Genesis was engaged in the basin for three years to support holistic flood mitigation as the financial and economic adviser on the project. Specifically, our work in the final year was to evaluate various flood mitigation responses (FMRs) and recommend a way to proceed with the choice and financing of the infrastructure. Our work was integral in establishing the need for an early warning flood forecasting system (EWFFS) and its requirements for financial sustainability.

                                                                                                                                     © CRIDF

Genesis’s capping involvement on the project was a comprehensive economic analysis of the FMRs, which had emerged through a consultative process with stakeholders. These infrastructure interventions (dykes, bridges, etc.) involve the diversion of water away from key risk areas. As a result, some areas are better off, while others are worse off. An understanding of which areas are better and worse, as well as their associated economic values, is an important consideration in continuing with an intervention. 

Genesis carried out a cost-benefit analysis (CBA) to assess whether investing in infrastructure was justified from a social-welfare perspective and to understand the distribution of benefits to stakeholders, the output of which led to a discussion on potential financing for the chosen investments. Genesis designed, championed and carried out an innovative and rigorous approach to this work, which is unique to any CBA we have carried out before. 

As a first step, a thorough land-use map of the flood area was carried out. The land was categorised in formal and subsistence agriculture, residential areas and roads, among others. By comparing the flood-hazard rating, generated by the hydraulic model of the “do-nothing” scenario, with that under the FRM, a picture of the potential cost savings under various FMR strategies was established. Assigning an economic value to the potential cost savings for each land-type was then compared with the actual costs of the intervention to assess whether the FMR was an efficient use of funds. 

The EWFFS has gone live and is available online and in real-time as a resource for decision-makers. The key project stakeholders include local government, the impacted community, the water utility and key private sector companies who are located in the areas impacted by flooding. The project is a case study for successful public-private partnership and collaboration to reduce the negative impact of flooding. 

Genesis aided this value being unlocked through detailing the “value chain” (users and processes) of the system (from forecasting to mobilisation), understating its costs and demonstrating the expected tangible benefits that can be unlocked through providing decision-makers with an early warning system that can inform their disaster mitigation response. This galvanised stakeholder coordination and support for its operational costs

For more information on the project

TOP PHOTOGRAPH: The site on the lower Incomati that floods frequently and has been the focus of one of the project's flood mitigation strategies.

Hostel plan for 35000 Kenyan students

Project name:
University hostels for Kenya

Service:
Transaction advisory
Project appraisal

Sector:
Infrastructure
Real estate

Client:
Kenya Ministry of Finance PPP Unit

Date:
2015 – current

Country:
Kenya


Genesis is the lead partner in a consortium that has been retained to provide transaction advisory services for the development of hostels for 35000 students at five universities in Kenya . 

The Genesis Infrastructure team is providing a full portfolio of services, right from the feasibility study through to the financial close.

As part of the scope of work, Genesis will also undertake an evaluation of the project in order to assess the economic impact it will have on the Kenyan economy. The core requirements of the consortium are the production of technical and financial feasibility studies, the preparation of bid documents and assistance with the selection and contracting of the preferred bidder.

The feasibility report was submitted in mid-September 2016 and it is expected that the project will enter the procurement phase in the first quarter of 2017.

National PPP policy for Seychelles

Project name:
Development of National PPP Policy and PPP Training

Service:
Project appraisal

Sector:
Infrastructure
Public and social

Area of Expertise:
PPP/Infrastructure transaction advisory

Client:
Government of Seychelles

Date:
2015 - 2016

Country:
Seychelles


The Government of Seychelles developed a legal and regulatory architecture to support PPPs in their country, assisted by the Investment Climate Facility for Africa.Genesis was commissioned to provide the government and ICF specialised advisory services.

These services included:

  •  An introduction to PPPs and assessment the application of different PPP models to infrastructure sub-sectors in Seychelles
  • Review of the legal and regulatory environment for PPPs
  • Review of previous PPP experience in Seychelles
  • Drafting of the National PPP Policy.

The policy has since been approved by the Cabinet and officially launched. Genesis has since provided basic PPP training for the government, with attendees from across public institutions.

In 2015 Genesis was retained to develop the draft PPP policy. The assignment involved a detailed needs assessment for PPPs in the country, key sectors where PPPs are most feasible and the development of a PPP policy for approval by the government.

The policy included the rationale for PPPs in Seychelles, key principles for implementing PPPs, and important PPP focus areas. Genesis was also responsible for proposing the institutional structure and appraisal guidelines required to effectively implement the PPP policy.


SADC water and infrastructure projects

Project name:
Climate Resilience Infrastructure Development Facility (CRIDF)

Service:
Project appraisal
Transaction advisory

Sector:
Climate change
Infrastructure
Water

Area of Expertise:
Project preparation

Client:
A DFID-funded facility managed by Adam Smith International

Date:
2013 – ongoing

Country:
Malawi
Mozambique
Namibia
Tanzania
Zambia
Zimbabwe


The Climate Resilient Infrastructure Development Facility (CRIDF) is a DFID-funded facility that prepares water and infrastructure projects across SADC. It focuses on projects that build climate resilience, are pro-poor and are located in one of the SADC region’s 13 transboundary water basins. Under the CRIDF, Genesis is involved in the design and delivery of water infrastructure that fosters sustainable development of the region’s water, food and energy security.

Our work focuses on:    

Financial and economic appraisal of projects in order to assess a project’s impact, inform decision-making and to ensure financial, operational and social sustainability.

Leveraging and mobilising finance to support CRIDF in high-level engagement with donors and potential financiers to identify potential sources of financing, as well as in preparing projects for presentation and conducting the actual engagements.  

Genesis supports the programme across multiple individual water-preparation projects. For example, together with the African Development Bank, we are currently engaged in a project to assess the commercial viability of a hydro-electric plant on the border of Malawi and Tanzania. The project aims to develop an effective financing strategy and assess the potential for attracting private sector investors through public-private partnerships.

The Genesis project economist is leading the development of the financial and economic models, assessing the likely returns and benefits from the project and working to structure it in a way that is attractive to the private sector, while retaining important socio-economic development goals of the respective governments.

TOP and ABOVE: Building climate resilience in the Eastern Province, Zambia, through the construction of a dam and small-scale irrigation scheme.

TOP and ABOVE: Building climate resilience in the Eastern Province, Zambia, through the construction of a dam and small-scale irrigation scheme.

Facilitating LPG shipments to the Western Cape

Project name:
Avedia LPG storage facility licence application and related advice

Service:
Regulatory economics and accounting

Sector:
Energy
Infrastructure

Client:
Avedia Energy SA LTD

Date:
2014 – 2016

Country:
South Africa


Genesis was retained by Avedia Energy, a firm involved in a wide range of LPG handling, trading and bottling activities, to assist in its contested application to the National Energy Regulator of South Africa (NERSA) for a licence to construct and operate an LPG storage facility in Saldanha in the Western Cape. Central to the success of Avedia’s storage facility was to the ability to interconnect with the off-loading facility of a company in the area that was already licensed by NERSA, Sunrise Energy. 

Sunrise Energy objected to Avedia's application, arguing that it had an exclusive right to both off-loading and storage in the port, and that Avedia should be compelled to use its facilities as otherwise Sunrise's project would not be viable.

Drawing on our knowledge of the relevant legislation and regulations, our deep understanding of LPG markets, and evidence-based approach to our analysis, we provided expert economic analysis and testimony on this matter before NERSA.  The Genesis team found that access to, and interconnection with, the Sunrise Energy off-loading facility should be guaranteed to Avedia and other third parties, and that there was no basis for exclusivity in storage services with competition in storage being important for the growth of the industry and the viability of the off-loading facility.

Our analysis and independent testimony were key inputs into the regulatory process of NERSA and its ultimate decision was to grant a licence to Avedia and enforce the requirement for Sunrise Energy to provide interconnection.

Genesis has since provided ongoing assistance to Avedia Energy, including representations to NERSA regarding Sunrise’s tariff application, as well as in developing Avedia’s own tariff application in 2016.

Procurement of new office space

Project name:
Procurement of new office accommodation

Service:
Transaction advisory

Sector:
Infrastructure
Real estate

Client:
National Metrology Institute of South Africa (NMISA)

Date:
2014 – ongoing

Country:
South Africa


Genesis has been appointed by the National Metrology Institute of South Africa (NMISA) to undertake the function of project officer for the possible Public-Private Partnership (PPP) procurement of new office accommodation. 

Genesis’s role as project officer is to oversee and manage the entire PPP process, including appointment of the transaction advisers, management of their work and delivery against the timelines, also managing engagements with other stakeholders including the PPP unit at the National Treasury

Chevron objects to liquid-fuel import terminal

Project name:
Chevron objection to Burgan liquid fuel import terminal licence

Service:
Regulatory economics and accounting

Sector:
Energy
Infrastructure

Area of Expertise:
Licensing advisory and support
Sector strategy and regulatory frameworks

Client:
Chevron South Africa

Date:
2014

Country:
South Africa


Genesis was retained by Chevron SA to provide expert economic analysis and testimony to the National Energy Regulator of South Africa (NERSA) in terms of a licence application by Burgan Cape Terminals to build a liquid-fuel off-loading and storage facility in the port of Cape Town.

We used our specialist knowledge of petroleum pipelines regulation, the policy directives of government, as well as our keen understanding of the Western Cape market dynamics in submitting an assessment of the impact and appropriateness of granting the requested licence to Burgan Cape Terminals. Our analysis submitted to the regulator included strong policy and evidence-based arguments to differentiate between storage and off-loading services and to demonstrate the impact the granting of the licence would have on the sustainability of local refining capacity.

The licence was ultimately granted with conditions by the regulator, with the analysis of the Genesis team being an important input into the process and the decision by NERSA.

Logistics hub for Harrismith

Project name:
Logistics hub for Harrismith

Service:
Transaction advisory
Project appraisal

Sector:
Infrastructure
Real estate

Client:
Free State Department of Police, Roads and Transport

Date:
2013 – ongoing

Country:
South Africa


Genesis is currently retained as part of a consortium of firms providing transaction advisory services to the Free State Department of Police, Roads and Transport for the development of the Harrismith Logistics Hub, an inland intermodal freight terminal with value-added logistics services. 

The project concept works on a ‘hub-and-spoke’ principle, where containers are received from various origins by road or rail to the central hub, and distributed to the destinations, usually by road. 

Benefits accrue to all parties by offering consolidation services for both imports and exports, as well as utilising the unit or block train concept, which streamlines the rail transport side significantly. 

Adviser to Lesotho government’s PPP Unit

Project name:
Transaction advisory for Lesotho government’s PPP Unit

Service:
Transaction advisory

Sector:
Infrastructure
Public and social

Client:
Government of Lesotho

Date:
2014

Country:
Lesotho


Genesis provided overall leadership to the Transaction Advisory Team retained by the Government of Lesotho over a three-year period. 

Our role as transaction adviser was to guide the government project team in every aspect of the procurement of government accommodation via PPP.  In this role we worked closely with the procurement team in the Ministry of Finance, which consists of a senior procurement officer and a legal specialist who together make up the Lesotho Government PPP unit.

Through our support of the Lesotho PPP team in the Ministry of Finance, we were able to reflect on the requirements of establishing a new PPP unit as well as the institutional choices and resources constraints that were likely to be encountered.

Advisory service on driver testing centre

Project name:
Transaction advisory services for the driver education and testing centre

Service:
Transaction advisory
Project appraisal

Sector:
Infrastructure
Real estate

Client:
Government of Mauritius

Date:
2014

Country:
Mauritius


Genesis provided transaction advisory services to the Prime Minister’s office in the Government of Mauritius. We provided economic, financial and PPP procurement advisory services from the feasibility to procurement stages of the project.

The driver education and testing centre (DETC) will be a training facility with the objective of imparting quality practical and theoretical training for learners in Mauritius.

The government has requested an investigation into whether the DETC could be a feasible project to undertake as a PPP.  Our primary role in the project involves economic and financial advice in the preparation of the feasibility study as well as design of the subsequent procurement process for the PPP.

Plan for safe water in 12 Zambian border towns

Project name:
12 Border Towns Project

Service:
Project appraisal

Sector:
Water
Climate change
Infrastructure
Public and social

Client:
A DFID-funded facility managed by Adam Smith International

Date:
2014 - ongoing

Country:
Malawi
Zambia


Inadequate levels of water access and sanitation facilities can lead to the transmission of water-borne diseases across borders. This, in turn, stifles trade and other commercial and social activities within a sub-region and, at in extreme cases, can trigger cross-border conflict. 

The 12 Towns Project is an initiative aimed at providing a sustainable and equitable supply of safe water and appropriate sanitation to 12 border towns in Zambia, a country strategically and centrally located in the SADC region. Genesis was retained as the project economists for this suite of projects and carried out financial and economic appraisals for Kazungula, Chanida, Mwami, Chirundu and Siavonga border towns. Genesis provided recommendations of the appropriate allocation of the client's resources for the implementation for these projects.

By carrying out our project appraisal process, both the financial and economic justification of the separate projects was investigated. The particular focus of this project appraisal was in the project’s ability to provide climate-resilient infrastructure for the most vulnerable members of the border towns – with a particular focus on women and children. It also emphasised the project's ability to prevent transboundary conflict through better provisioning of infrastructure services. Input from our team resulted in the redesign of some of the projects to optimise their value for money and social impact in these strategic transboundary towns.

For more project information

TOP PHOTOGRAPH: Small traders at the Chirundu One-Stop Border Post. ABOVE: Trucks line up at the Chirundu One-Stop Border Post between Zambia and Zimbabwe

Securing water for Botswana

Project name:
Reconnaissance Study for the Chobe-Zambezi Water Transfer Scheme

Service:
Project appraisal

Sector:
Infrastructure
Climate change
Public and social
Water

Client:
Botswanan Ministry of Minerals, Energy and Water Resources

Date:
2016 - ongoing

Country:
Botswana


The Chobe-Zambezi water transfer project assesses the viability and costs of constructing a scheme that will transfer additional water from the Chobe and Zambezi rivers on the northern border of Botswana to the large demand centres in south-eastern Botswana.

It is estimated that by 2025, water supply in Botswana will be inadequate to meet demand. This shortfall will be further exacerbated by the impact of climate change on drought cycles in Botswana.

Genesis is the lead for the financial work stream for the project. The scope of work includes a reconnaissance of work that has already been undertaken in pre-feasibility stage, financial modelling for the detailed costing of the project, transaction and project structuring as well as the development of a procurement strategy.

Meet the Team

Areas of Service Expertise

  • Project appraisal
  • PPP transaction advisory
  • Climate resilience
  • Regulatory economics

Related Sectors

  • Energy
  • Water
  • Transport
  • Real estate
  • ICT
  • Pipelines
  • Industrial

Projects

Project

Early flood forecasting system for Incomati Basin

Genesis was engaged as the financial and economic adviser on a three-year project to support a holistic flood risk mitigation system in the Incomati Basin. Our work was integral in establishing the need for an early warning flood forecasting system (EWFFS) and its requirements for financial sustainability.

View Project
Project

Hostel plan for 35000 Kenyan students

Genesis is the lead partner in a consortium that has been retained to provide transaction advisory services for the development of hostels for 35000 students at five universities in Kenya . 

View Project

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Leading the team

​Malcolm Pautz

Principal (Infrastructure and PPP Advisory)

​Malcolm Pautz
Principal (Infrastructure and PPP Advisory)
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Kim Adonis

Manager

Kim Adonis
Manager
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​Joel Barnor

Manager

​Joel Barnor
Manager
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