South African IPP Procurement Programme

The South African IPP Procurement Programme for renewable energy is a large, structured and highly competitive process for the rights to develop new renewable energy generation capacity in South Africa. Up to now, well over 3GW of new capacity has been awarded under the programme, via three separate procurement rounds.

We have been heavily involved in the process and were the leading model auditor in Round 3, engaged on approximately 25% of all the bids submitted. We believe that this market position reflects the value we have added to our clients. For instance:

·    We have helped to ensure that bids are compliant with the detailed and complex procurement requirements. In total, one-fifth of all projects submitted in Round 3 were disqualified as being non-compliant, but none of these were audited by our firm.

·    Commercial lenders have commented favourably on the high level of assurance we have provided in comparison with other auditors in the market, as a result of our clear processes and the detailed knowledge we have brought to our reviews of financial model logic and underlying project documentation

·    Our audits have included detailed tax and accounting opinions.

·    Clients have appreciated our independence as model auditors, avoiding the dangers of self-review.

Our work in South Africa highlights the best of us as an international firm, with renewable sector specialists in London working closely with corporate finance colleagues in Johannesburg and Cape Town. Please contact David Donnelly or Anoop Ninan for further details.