Power Africa looks forward to continuing to involve the Energy Projects Community in streamlining the AAE negotiation process and broadening consensus on how best to structure these complex agreements. The CLDP and ALSF continue to work together to support this mission, both by improving access to the AAE manual (currently translated into French) and by creating additional reference manuals on other complex legal issues (e.g. B, credit improvement and fuel/steam supply agreements). The hope is that, with a better understanding of what a successful AAE is, we will be able to work faster towards the goal of getting electricity to millions of sub-Saharan Africans in the years to come. In the energy sector, the need for balanced and clear contracts is particularly urgent, where agreements can cover decades of projects involving several developers, financiers and buyers. As part of Power Africa`s focus on streamlining negotiations on energy projects, representatives of the U.S. government and our key private sector partners recognized the need for a common understanding of the key elements of balanced project contracts. By focusing on the main project contract, the Power Purchase Agreement (AAE), Power Africa wanted to gather information from all sides in the negotiation process in order to reach a consensus on what is a balanced and bankable agreement. Using a quick design method called “Book Sprint,” the panel was able to develop and publish an Understanding Power Purchase Agreements manual in just five days.
The intensity of the design process reflected, in many ways, the balanced approach necessary for the success of the AAE negotiations, and the end result was a manual that gives the reader a complete understanding of these complex contracts. Cldp and ALSF launched the project in mid-2014 with a series of consultations in the United States, East and West Africa, during which AAE experts were encouraged to openly discuss the failures and successes of previous contract negotiations. These consultations found that a number of AAE contractual terms are the most difficult to negotiate. The PPA project, as announced, was developed through a partnership between the U.S. Department of Commerce`s Trade Law Development Program (CLDP) and the African Legal Support Facility (ALSF).