Project preparation

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 accounts for only part of the impact of a project. 

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Expertise Areas

Design of decision-making tools

Using international best practice and industry standards, we design project appraisal tools that enable better decision-making for our clients.

Financial and economic valuation

We assess and evaluate a project from a financial and economic perspective which includes a cash-flow analysis over the lifespan of a project, as well as the associated economic benefits and costs of project implementation.

Financial modelling

We build a detailed model of cash flows for a project, which includes the estimation of the revenues and costs associated with a project over its lifespan. This provides important decision-making information in respect of the most appropriate project financing structure that can be implemented.

Climate resilience

We work to prepare and appraise projects to mobilise finance for climate-resilient infrastructure projects that enhance and improve the resilience of poor and vulnerable communities, many of which are rural.

Assessing project feasibility and bankability

Project appraisal is a key input into the assessment of whether a project is feasible. It enables our clients to test for the feasibility and bankability of various different technical options, and informs the structuring and implementation of projects in order to achieve bankability.

Projects

Logistics hub for Harrismith

Project name:
Logistics hub for Harrismith

Service:
Transaction advisory
Project preparation

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. 

Plan for safe water in 12 Zambian border towns

Project name:
12 Border Towns Project

Service:
Project preparation

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

Plan expands water supply to 25 000 Malawians

Project name:
Feasibility study on Illovo Nchalo Water Supply and Sanitation Project

Service:
Project preparation

Sector:
Water
Infrastructure
Climate Change

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

Date:
2015 – ongoing

Country:
Malawi


Illovo Sugar Malawi wanted to improve the water supply for Nchalo town and the communities surrounding its sugar facility, which is an area characterised as very poor and lacking in clean water and sanitation.

Nchalo is in the Chikwawa district in the southern region of Malawi within which the Southern Region Water Board (SRWB) has jurisdiction over water supply infrastructure development and operations. A feasibility study was commissioned in response to the socio-economic challenges experienced in Chikwawa-Nchalo area.

With technical support from the Climate Resilient infrastructure Development Facility (CRIDF) in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), a PPP between Illovo and the SRWB was established in order to address the problem of access to safe water and improved sanitation in the area. Five options for the improvement of the water supply system and sanitation facilities in the area were considered.

The Genesis team did a cost-benefit analysis that determined a financial analysis of what would be the net return to the developer, and an economic analysis of what would be a net return to surrounding communities. Genesis’s analysis first resulted in the decision to proceed with the project. Secondly, and going beyond standard analysis and reverting to the engineers to help redesign the project to expand the water network to poorer communities not part of the original design, the Genesis team increased the economic impact of the project and its value for money.

The project is now expected to benefit an additional 12 000 people in the original target area. With the expansion to outlying villages, it is expected that 25 000 additional individuals in poorer, rural villages will also benefit from the project. Importantly, this will provide water for a growing population that would otherwise not have access to clean water. Formal access to water will have multiple benefits, primarily through improved sanitation and health and time savings, with the long-term benefits expected to be even larger.

SADC water and infrastructure projects

Project name:
Climate Resilience Infrastructure Development Facility (CRIDF)

Service:
Project preparation
Project finance advisory service

Sector:
Climate Change
Infrastructure
Water

Area of Expertise:
Project preparation

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

Date:
2013 – 2017

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.

Development of tools for project appraisals

Project name:
Development of a programme implementation and project appraisal system and tools

Service:
Project preparation

Sector:
Infrastructure
Public and Social

Client:
United Nations Development Programme (UNDP)

Date:
2015

Country:
Zambia


Genesis was appointed by the United Nations Development Programme (UNDP) to provide technical assistance to the Ministry of Finance in Zambia to assist the country in developing a framework for appraising projects in order to ensure alignment between policy objectives of the government and the implementation of projects. Genesis developed an institutional framework for project appraisal that minimises the failure rate of projects and enables implementation at minimal cost. Furthermore, Genesis developed a manual that outlines the approach for project appraisal to be implemented across all ministries. Training for government officials was also provided.

Early flood forecasting system for Incomati Basin

Project name:
Lower Incomati Flood Risk Management

Service:
Project preparation

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 preparation
Project finance advisory service

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 2017.

Meet the Team

Areas of Service Expertise

  • Design of decision-making tools
  • Financial and economic valuation
  • Financial modelling
  • Climate resilience
  • Assessing project feasibility and bankability

Related Sectors

Projects

Project

Logistics hub for Harrismith

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.

View Project
Project

Plan for safe water in 12 Zambian border towns

Genesis was retained as the project economists for the 12 Towns Project 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. 

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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