Ability to respond to COVID- Ability to respond to COVID-19 34% 33% 33% AMDA Members: Ability to...

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  • Ability to respond to COVID-19

    34%

    33%

    33%

    AMDA Members: Ability to respond to COVID--19

    We can sustain this for 3-4 months but then get into serious trouble

    We have a healthy financial situation and can sustain this situation, even if lasting 6-9 months

    We have some bandwidth to absorb this but will struggle if it lasts for more than 6 months

    We will be almost immediately in financial trouble

    46%

    7%

    21%

    26%

    All participants: Ability to respond to COVID--19

    We can sustain this for 3-4 months but then get into serious trouble

    We have a healthy financial situation and can sustain this situation, even if lasting 6-9 months We have some bandwidth to absorb this but will struggle if it lasts for more than 6 months

    We will be almost immediately in financial trouble

    On a scale from 0 to 5, how disruptive do you feel COVID – 19 currently is for your business?

    4.3 - AMDA Members 4.0 - All Participants

  • AMDA MEMBERS Concern Areas

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    HR Capaci ty Inventory Mgmt./ Supply

    Chain

    Ceased Operations

    Decreased Demand

    Decreased Ability to Pay

    Shortage of OPEX

    Challenges Attract ing

    CAPEX Funding

    Loan Issues Increased Risk Management

    Demand

    Possible Need to Scale Down

    Pipeline

    AMDA Members: Percentage of Ratings per Concern Area

  • AMDA MEMBERS Concern Areas

    11%

    11%

    22%45%

    11%

    HR Capacity

    0% 11%

    22%

    45%

    22%

    Inventory Mgmt./

    Supply Chain

    0%0% 11%

    67%

    22%

    Ceased Operations

    22%

    22%

    34%

    22%

    0%

    Decrease in Demand

    0% 11%

    11%

    56%

    22%

    Decreased Ability to

    Pay

    0%0%

    33%

    56%

    11%

    Shortage of OPEX

    0% 11%

    22%

    34%

    33%

    Challenges Attracting

    CAPEX Funding

    0%

    45%

    11%

    33%

    11%

    Loan Issues

    11%

    11%

    56%

    11%

    11%

    Increased Risk

    Management Demand

    0% 11%

    33%56%

    0%

    Possible Need to Scale Down

    Pipeline

    Avg: 3.3

    Avg: 3.8

    Avg: 4.1 Avg: 3.9Avg: 3.9 Avg: 3.8

    Avg: 3.1 Avg: 3.4 Avg: 2.6Avg: 3.0

  • AMDA MEMBERS Areas of concern by rank

    Top 3 Issues

    1: Ceased Operations There’s a high degree of concern that the pandemic will potentially lead to ceasing of operations.

    2: Ability to pay & decreased capex funding Most feel that end users will be affected and lead to decreased ability to pay; separately there’s concern that capex funding will dry up as investors adopt a “Wait and see” approach.

    3: Shortage of opex & Inventory management / supply chain Issues Most expect a shortfall in ability to meet operational costs. This is possibly a direct consequence of decreased revenue due to end user’s low ability to pay. Similarly, there’s genuine concern as to how the pandemic will impact the supply of goods, logistics and working capital.

  • 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

    100%

    HR Ca

    pa ci t

    y

    Inv en

    tor y M

    gm t./

    Su pp

    ly C ha

    in

    Ce ase

    d O pe

    rat ion

    s

    De cre

    ase d D

    em an

    d

    De cre

    ase d A

    bi l ity

    to Pa

    y

    Sh ort

    age of

    OP EX

    Ch alle

    ng es

    At tra

    cti ng

    CA PE

    X F un

    din g

    Lo an

    Iss ue

    s

    Inc rea

    sed Ri

    sk Ma

    na ge

    me nt

    De ma

    nd

    Po ssi

    ble Ne

    ed to

    Sc ale

    Do wn

    Pi pe

    lin e

    All Registrations Concern Areas

    All Registrations: Percentage of Ratings per Concern Area

  • All Registrations Concern Areas

    16%

    23%

    26%

    21%

    14%

    HR Capacity

    5%

    25%

    23%

    28%

    19%

    Inventory Mgmt./

    Supply Chain

    9%

    7%

    12%

    35%

    37% Ceased

    Operations

    17%

    35%

    16%

    16%

    16%

    Decrease in Demand

    7%

    23%

    19%25%

    26%

    Decreased Ability to

    Pay

    9%

    16%

    33%

    23%

    19%

    Shortage of OPEX

    2% 16%

    26%

    23%

    33%

    Challenges Attracting

    CAPEX Funding

    14%

    28%

    14%

    19%

    25%

    Avg: 3.1

    Loan Issues

    16%

    19%

    35%

    16%

    14%

    Increased Risk

    Management Demand

    14%

    21%

    23%

    21%

    21%

    Possible Need to Scale Down

    Pipeline

    Avg: 2.9

    Avg: 3.3

    Avg: 3.8 Avg: 2.8Avg: 3.4 Avg: 3.3

    Avg: 3.7 Avg: 2.9 Avg: 3.1

  • Individual companies’ capacity to respond to Covid-19 related impact

    3

    10

    15

    22

    0 5 10 15 20 25

    WE HAVE A HEALTHY FINANCIAL SITUATION AND CAN SUSTAIN THIS SITUATION, EVEN IF LASTING 6-9 MONTHS

    WE HAVE SOME BANDWIDTH TO ABSORB THIS BUT WILL STRUGGLE IF IT LASTS FOR MORE THAN 6 MONTHS

    WE WILL BE ALMOST IMMEDIATELY IN FINANCIAL TROUBLE

    WE CAN SUSTAIN THIS FOR 3-4 MONTHS BUT THEN GET INTO SERIOUS TROUBLE

    More than half of the 49 respondents have less than 4 months financial runway

  • 0 10 20 30 40 50

    NOTHING

    TASK FORCE (VIRTUAL) MEETINGS

    TARGETED ADVOCACY AND LOBBY

    PEER-TO-PEER COOPERATION AND …

    TECHNICAL GUIDANCE

    BRIDGING LOANS

    FUNDRAISING SUPPORT - RELIEF …

    What type of support are companies asking for?

    The top three things respondents requested are:

    1. Fundraising support / relief funding

    2. Bridge loans 3. Technical guidance

  • Projects in Pipeline Additional Challenges

    100% of all respondents would be interested in building off-grid solar projects to power hospitals, clinics, and other healthcare facilities if funding was available

    0

    5

    10

    15

    20

    25

    30

    35

    Hospitals (Stand-alone

    C&I)

    Hospitals (Community

    mini-grid)

    Clinics (Stand-alone

    C&I)

    Clinics (Community

    mini-grid)

    Dispensaries (Stand-alone

    C&I)

    Dispensaries (Community

    mini-grid)

    Other healthcare

    facilities (Stand-alone

    C&I)

    Other healthcare

    facilities (Community

    mini-grid)

    0

    5

    10

    15

    20

    25

    30

    35

    Hospitals (Stand-alone

    C&I)

    Hospitals (Community

    mini-grid)

    Clinics (Stand-alone

    C&I)

    Clinics (Community

    mini-grid)

    Dispensaries (Stand-alone

    C&I)

    Dispensaries (Community

    mini-grid)

    Other healthcare

    facilities (Stand-alone

    C&I)

    Other healthcare

    facilities (Community

    mini-grid)

    Number of healthcare-related projects in your pipeline that could be built within the next 6 months with availability of concessional financing:

    AMDA Members All Participants

  • Projects in Pipeline Additional Challenges

    AMDA Members

    $506,429 – Community mini-grid pipeline CAPEX $57,000 – Stand-alone project pipeline CAPEX 12 kW – PV Installed (Stand-alone projects)

    All Participants

    $2,148,648 – Community mini-grid pipeline CAPEX $1,117,877 – Stand-alone project pipeline CAPEX 851 kW – Stand-alone pipeline PV planned

    Average size of pipeline healthcare facilities that could be built within the next 6 months with availability of concessional financing:

  • — CONCLUSIONS AND RECOMMENDATIONS

    • Concerns over 1) Ceased Operations; 2) Challenges attracting Capex Funding, mean we must urgently ask investors to treat ongoing due diligence on minigrids companies as a matter of urgency. There is no room for a 6 month delay in deal closing.

    • Concerns over 1) shortage of opex; 2) decreased ability to pay; 3) possible pipeline reductions , mean we urgently ask existing minigrid investors to consider extending additional funding and operational support to portfolio mini grid companies should need arise.

    • Concerns over 1) shortage of opex; 2) =decreased ability to pay, mean we urgently ask interested investors without or with little experience in the minigrid sector to consider plugging in to emergency relief funding efforts being coordinated by others.

    • Concerns over 1) challenges attracting capex funding; 2) possible need to scale down pipeline, mean we urge a prioritisation of deploying signed RBF commitments to enable minigrid companies achieve connection milestones as prescribed within RBF timelines

    • Concerns over 1) inventory management/supply chai