RAECO needed to develop a long-term strategy to supply power to the port and city of Duqm. This was complex, with a number of different strategic options and decisions on timing of implementation. It was important to determine the overall best value long-term solution and to align with national and stakeholder strategies and requirements.
The solution required a detailed economic analysis, extensive stakeholder engagement and negotiation with suppliers. This was an iterative and interactive process, with support to the client at all stages and across all areas.
We undertook a comprehensive strategic assessment using the HM Treasury’s Green Book approach. We co-authored a comprehensive business case, which was presented to and approved by the Board and the key stakeholders.
Numerous options were assessed against a set of key criteria and were financially modelled using Monte Carlo analysis. We strengthened the demand forecasts and developed demand scenarios for the analysis. The options covered numerous scenarios for RAECO to generate power using different technologies; for RAECO to procure power under different commercial arrangements; and combinations over time.
A commercial option was finally selected and implemented. We advised the RAECO Board on the selection of the preferred solution and undertook stakeholder engagement activities with the Regulator and other sector companies to get support and approvals. We also supported the procurement of this option with contracts; negotiation strategy; negotiations; and strategic advice.
RAECO had been struggling to develop a meaningful business case and to get stakeholder support to move forward and it was becoming critical to act quickly. Our support developed a clear, logical, and justifiable solution, and gained stakeholder support and approval. This enabled a suitable solution to be negotiated and implemented with minimal risk to customers.
