These days, every project seems to claim some level of sustainability, if only to better attract funding and favourable treatment by authorities. Unfortunately, the reality is that the marketing potential of sustainability may often be cynically harnessed while overlooking the very real commercial benefits of early, robust project design.
Kijani is unique in being able to offer comprehensive sustainability focused advisory services to pre-feasibility level projects that encompasses all three legs of sustainability simultaneously, namely the financial, social and environmental.
Early financial input in a technical feasibility study is critical to ensure that the end product of the engineering study is a project which is able to attract funding. This adds immense value to the client in that the final document is appropriate to be presented to financiers to enable them to make an informed funding decision.
In addition, this renders a valuable service to the consulting engineers, as an improved project study output stands a better chance of attracting funding thereby increasing the likelihood of moving into the implementation phase and thus securing further work for the company.
- Advice on suitable project structure during early project phases
- Identification of project risks that need to be addressed from a funding perspective.
- Development of a bankable financial model to enable lenders and investors to better assess the project, using funder specific key ratios.
- Drawing up of the financial section for the feasibility study report
- Development of an information memorandum for investors and lenders. This document usually consists of a project summary, extracts from the technical study developed, summary and commentary on the financial model, advice on most appropriate project structure, project risk analysis and funding requirements.
- Presentation of the information memorandum to appropriate investors and lenders based on their risk appetite and profile to provide the highest chance of successfully funding the project (including Development Finance Institutions )
- Evaluation of offers from financiers and provision of support during subsequent negotiations.
Broader financial services include:
- Advice on DTI funding for local and Africa feasibility studies. The DTI has a programme which provides a grant up to 70% of the cost of the feasibility study to qualifying projects. This is a compelling selling point to feasibility study promoters if they only have to pay as little as 30% of the cost of the study.
- Export Credit backed funding: We are experienced in the arrangement of export credit insurance for projects which can significantly enhance the funding terms that are ultimately offered, whether it is for a large project supplied by South African service providers or simply the export of South African capital equipment.
- Stand-alone financial modelling for projects.
The environmental risk of a project is most often experienced as legal risk. If a project is likely to fall foul of the law early on, that law is more than likely to be environmental. Kijani offers ways to mitigate this risk by offering advice on the local legal environment, as well as highlighting potential opportunities to optimise the environmental performance of the project by embedding fundamental environmental principles in the project plan from the earliest phase.
Proper environmental planning not only mitigates legal risk but it increases the likelihood of attracting appropriate funding and has the potential to optimise operational efficiencies.
- Analysis of applicable legal framework and early liaison with authorities
- Advice on the selection of independent environmental specialists for the environmental impact assessment studies and management of that process if necessary.
- Support to the client in preparation for the public participation process
- Energy modelling to determine appropriate use of available energy mix
- Optimisation of the project design to identify the best energy mix for the site, including opportunities to minimise environmental impact in this regard.
- Identification of beneficiation projects that may harness the project’s presence to improve the surrounding environment.
- Analysis of funders’ environmental requirements and feed in to all funding documents
- Compilation of Global Reporting Initiative-based key indicators to ensure easy incorporation of the project into companywide reporting requirements
- Analysis of potential for carbon funding for project components
Social sustainability can be a minefield for project developers as it requires interaction with a wide range of stake holders, from villagers on the project site up to political leaders in national government. Often the environmental public participation acts as the primary vehicle for stake holder engagement so it is vital that the EIA practitioners have a clear view of the necessity to embed the project in solid social principles from an early stage.
In many cases, the skills set of people immediately affected by the project may not be appropriate to find employment in the primary activity of the project. In these cases it is vital that developers undertake to identify and support opportunities for secondary activities related to the presence of the project to be supported and flourish for the benefit of the surrounding community. In addition to this, the presence of a project in an isolated rural community can often be used as a vehicle for other, unrelated social projects to gain access to that community.
- Identification of potential social risks to the project, including political, health and labour risks
- Identification of partner organisations (often NGOs) either active in the area or with potential to work in the area
- Identification of potential for secondary opportunities for local communities to improve project influence
- Input into social impact study conducted under EIA
- Adaptation of project documents for various levels of social interaction