Supporting the Policy Environment for Economic Development

Transaction Support

Reaching financial close, the final commitment of financing for a project by financiers, is a critical, difficult milestone to achieve due to finalizing the necessary agreements with the host government. Repeatedly, private sector stakeholders point to the length of time it takes to finalize agreements with the Mozambican government, which, in the end, limits investment in the sector. There is an enormous opportunity cost for developers, who place their own equity and resources on the line, to operating in an environment where financial close takes significantly longer than in competing markets. As such, SPEED+ will work to ensure and accelerate financial close, from facilitating the project’s bankability with financing and risk mitigation to providing technical and transaction support that ensures the project is planned and negotiated with best practices and developmental considerations.  SPEED+ will work to shift the typical development paradigm to a transaction-centered approach that provides MIREME, the private sector, and donors with a focal point to galvanize collaboration around priority electricity IPP generation transactions, with a focus on those that involve private sector participation and finance, helping to quickly bring them to a close.