REQUEST FOR PROPOSALS (RFP) FOR PROVISION OF TRANSACTION ADVISORY SERVICES FOR THE KIBUKA (HIGH GRAND) FALLS HYDROPOWER AND IRRIGATION DAM PROJECT

Task 1.10: PPP agreement signature, financial closure, and close-out report and
PHASE 3: PROJECT BASED LEARNING (To run concurrently with Phases 1
9. REMUNERATION SCHEDULE AND DISBURSEMENT ARRANGEMENTS . 41
10. INSTITUTIONAL ARRANGEMENTS AND COUNTERPART ASSISTANCE . 42
ANNEX 1: ENVIRONMENTAL, SOCIAL AND LAND ACQUISITION STUDIES 43
2.1. Government-Led Safeguards at Feasibility Stage (This will be undertaken
2.2. Private Partner-Led Full Statutory ESIA. (This will be undertaken by the
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1. INTRODUCTION
The Public Private Partnerships Directorate (PPPD) at the National Treasury on behalf of and in
consultation with the Contracting Authorities (CAs) namely Kenya Electricity Generating
Company PLC (KenGen) of the State Department for Energy(SoE) and National Irrigation
Authority (NIA) of the State Department for Irrigation, seeks to engage a Transaction Advisor
(TA) to assist in carrying out detailed feasibility studies and the procurement of a Private Party for
the Kibuka (High Grand) Falls Hydropower and Irrigation Dam project through a PPP arrangement
(the Project).
The Project will be implemented in a phased approach and the TA is expected to advise on the
appropriate packages after carrying out technical and commercial due diligence, as well as
appropriate grid stability and capacity studies for additional hydro power.
The Transaction Advisor is to conduct a comprehensive viability assessment of the Project in
accordance with the PPP Act to identify the optimal project structure that will attract private sector
participation under a PPP framework.
2. DESCRIPTION AND SCOPE OF THE PROJECT
Project Description
The Project is a transformative infrastructure initiative centered on the construction of a large-
scale multipurpose hydropower dam, associated reservoir, irrigation infrastructure, and domestic
water supply. The project envisions a hydropower plant with an estimated installed capacity of
700 MW, complemented by an extensive irrigation network capable of supporting around 500,000
acres of farmland. Beyond these core physical outputs, the project is expected to enhance regional
socio-economic development, create new livelihood opportunities and catalyze agro-industrial
investments across the surrounding region. The envisioned water storage capacity is approximately
5.6 billion cubic metres, regulating the Tana’s all year hydrology. The overarching goal of the
project is to develop a multi-purpose dam and hydropower facility that enhances water security,
enhances flood control and drought resilience, providing stable dispatchable hydropower essential
for grid reliability, generates clean energy, supports large-scale commercial irrigated agriculture
and promotes sustainable socio-economic development.
Contracting Authorities
The project contracting authorities shall be Kenya Electricity Generating Company PLC,
(KenGen) and National Irrigation Authority (NIA) jointly herein after referred to as Contracting
Authorities. KenGen shall be the lead contracting authority.
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3. OBJECTIVE OF THE TRANSACTION ADVISORY SERVICES
The Contracting Authorities (CAs), with technical assistance from the PPPD wishes to procure the
Kibuka Falls Hydropower and Irrigation Dam Project through a competitive bidding process
pursuant to Section 46 of the PPP Act, 2021. The main features of this project are a reservoir with
a capacity to store 5,600 million cubic metres of water, 700MW Hydropower plant and Irrigation
infrastructure for 500,000 acres of agricultural land.
The CAs seek the services of a Transaction Advisor (TA) to undertake feasibility studies of the
Project to determine the viability in line with Section 32 of the PPP Act, 2021, recommend the
best PPP model for the procurement of the Project based on an analysis of several alternative
technical and PPP models, develop transaction documents for the procurement and provide
transaction advisory support through to financial close of the first phase of the project. The TA
will advise on the appropriate implementation phases based on technical and commercial
assessment including appropriate grid stability studies and grid capacity for additional wind power.
The TA will provide advice on the project, including support to the Contracting Authorities to
prepare all the detailed financial, technical and legal documentation required to implement the
proposed Project from Inception to Financial Close.
In the process, the TA will prepare a feasibility study consistent with the PPP Act to a standard
that will enable the Contracting Authorities to establish the technical configuration, commercial
viability and bankability of the Project.
The TA will also advise KenGen and NIA on the optimum risk allocation and the resultant project
structure including preparation of all necessary documentation and requisite approvals, and will
provide all necessary support through to Financial Close.
Domestic Capital Mobilization
Kenya’s local financial markets - local capital markets, pension funds, local banks and insurance
sector - collectively represent a reliable and critical source of long-term capital for financing

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