The South Jamaica Power Company, a subsidiary of Jamaica Public Service Company Limited (JPS), recently signed a US$330 million deal bringing the 190 MW LNG to-Power project in Old Harbour Bay, Jamaica to a financial close. K&M was retained by the group of lenders as Technical Advisor to perform due diligence services throughout the loan appraisal and negotiation process. K&M will continue to perform Technical Advisory services during the construction and commissioning stages. The 190 MW plant will use Liquefied Natural Gas (LNG) supplied by New Fortress Energy (NFE), and will sell electricity to JPS under a long-term Power Purchase Agreement (PPA). Project finance debt was provided by a syndicate of local banks and financial institutions led by the National Commercial Bank of Jamaica.
The World Bank Group has announced that they will be financing the design, construction, ownership, and operation of the Hussein 485 MW gas-fired power plant in Jordan. K&M served as the Transaction Advisor to the National Electric Power Company (NEPCO) on the negotiations with ACWA for this project, making it the fifth IPP for which K&M has been the transaction advisor in Jordan. Hussein will be one of Jordan’s most energy-efficient plants and will provide electricity at one of the lowest tariffs in Jordan’s conventional power sector.
The offshore LNG regasification terminal and a linked gas-fired combined-cycle project in Chile, collectively known as Octopus, has reached financial closure. K&M was engaged by one of the equity investors to provide technical and commercial due diligence, including review of all major project agreements, and an analysis of the Chilean electricity market, and technical design and feasibility. Located in Concepción Bay, the Octopus floating LNG terminal and regasification plant is expected to come online in 2019 with a capacity of 423 million cubic feet a day. The regassified LNG will be used as fuel for the El Campesino 600 MW gas-fired combined cycle power plant in the Biobio region. The sponsors are Andes Mining Company, EDF and Cheniere. The lenders provided $850 million in debt financing to complete the US$1.2 billion investment required to by the project.
Source: Power Finance & Risk, January 5, 2017
K&M was recently featured in Tanzania's Daily News for being chosen by TANESCO to serve as transaction advisor on the Mkuranga 250 MW Combined Cycle Gas Turbine (CCGT) power plant in Tanzania. This plant is a part of Tanzania's efforts to reduce the cost of electricity generation and increase the power sector's thermal generation capacity.
“We are pleased to have been selected by TANESCO to advise them on a competitively procured IPP transaction,” states Alfonso Guzman, President of K&M Advisors.
Read the feature in ESI Africa-Africa's Power Journal-here.
The Electric Power Development Co., Ltd has announced the financial closure for the development of the 2000 MW Bhimasena Power Indonesia project. K&M served as the Lead Technical Advisor to the IFC, for the tendering of the 2,000 MW ultra-supercritical coal-fired power plant on behalf of Perusahaan Listrik Negara (PLN), the national electric power company of Indonesia. The plant is the first PPP power project under Indonesia’s new PPP law and reached a total project investment of an estimated US$4.3 billion. The success of this plant makes it the 19th PPP power project transaction K&M advised on to reach a financial close.
K&M Advisors is pleased to announce that it has been awarded a contract by The National Treasury in Kenya and KenGen to serve as the transaction advisor for the Olkaria VI 140 MW geothermal power plant.
K&M’s involvement includes preparing a feasibility study to establish the technical configuration, and bankability of the Olkaria VI project. This will include a grid connection study and advice on the grid capability to accommodate additional power. K&M will also recommend the best Public-Private Partnership (PPP) model and advise KenGen on risk allocation and the contractual structure, as well as prepare all necessary project agreements. Finally, K&M will prepare the request for qualifications and request for proposals, and advise KenGen through the procurement process and proposal evaluation, as well as provide transaction advisory support through to financial close. This assignment is expected to last approximately 18 months.
“We are very pleased to have been selected to advise the National Treasury and KenGen on the Olkaria VI competitively procured PPP transaction that will deliver much needed renewable energy to Kenya” states Alfonso Guzman, President of K&M Advisors LLC.
K&M’s team includes AECOM (technical advisor) and ACMIRS (PPP advisor).
After a year of working on the procurement and negotiations for Jordan’s second largest electricity generator, SEPCO, K&M has successfully advised to select the EPC contractor, SEPCO III for the 70 MW Steam Cycle as Phase IV Add-on Combined Cycle for the Samra Thermal Power Station. SEPCO III was awarded the EPC contract after a strong competition with other highly qualified contractors.
As the Owner’s Engineers, K&M has begun the mobilization of a field team led by a Project Manager including Civil Engineers, Mechanical Engineers, Electrical Engineers, Instrumentation & Control Engineers, and Commissioning Engineers to oversee the construction of the HRSG and associated facilities.
Saturday, March 12, 2016: Three K&M team members joined over 25,000 runners on the streets of Washington, DC during the Rock & Roll Marathon, Half Marathon and 5k. K&M Chairman William Kappaz, K&M President Alfonso Guzman, and Senior Associate Nathan Miller all beat their expected times and came in with an average time of 2 hours and 1 minute, with Nathan being the fastest at 1:57. Among the beneficiaries of the marathon are the Special Olympics in the District of Columbia, the Boys & Girls Clubs of Greater Washington, and United for D.C.
K&M was retained by the prospective lenders to a 190 MW combined cycle gas plant in the Caribbean to perform financial model review services. The plant will use gas supplied through a long-term Gas Supply Agreement (GSA) and produced by regasifying Liquefied Natural Gas (LNG) using a Floating Storage and Regasification Unit (FSRU). K&M will ensure reasonableness of the assumptions on technical input variables contained in the financial model, consistency of the financial model with the contractual obligations detailed in the project agreements, propose alternative assumptions to make the financial model consistent with project agreements, and recommend sensitivities for key variables.
K&M Advisors LLC, a leading financial and technical advisory firm, is pleased to announce that it has been awarded a contract by the Tanzania Electric Supply Company (TANESCO) to serve as the transaction advisor for a new 250 MW Combined Cycle Gas Turbine (CCGT) power plant in Tanzania.
K&M’s scope of work includes finalizing the site selection, setting technical and functional specifications, developing the financial model, preparing prequalification documents and the request for proposals, drafting all project agreements, managing the prequalification and subsequent bidding process, evaluating proposals, and advising TANESCO during negotiations with the preferred bidder. This assignment is expected to last approximately 18 months.
“We are pleased to have been selected by TANESCO to advise them on a competitively procured IPP transaction that could set a new benchmark for other African nations and help Tanzania resolve its power generation deficit,” states Alfonso Guzman, President of K&M Advisors LLC.
Tanzania’s power sector is in need of additional thermal generation capacity while the country also seeks to reduce its costs of electricity generation. With abundant indigenous gas resources from the Songo Songo gas field, natural gas-fired power plants are an ideal option to help Tanzania achieve these two objectives. Natural gas-fired power plants offer a firm source of power generation at a substantially lower cost than plants running on liquid fossil fuels. TANESCO has identified several natural gas-fired power projects planned for development during the next 10 years, including the 250 MW CCGT project on which K&M is advising.
K&M Advisors has a hard-to-match track record as transaction advisor for thermal power plants, including power plants in Africa. K&M has been the lead transaction advisor on eighteen thermal power generation PPP projects in emerging markets, all of which reached financial close, totaling 7,221 MW of capacity and over US$6.5 billion of investment. In eleven of these eighteen power projects, K&M was the lead transaction advisor to the public procurement authority. In the remaining seven, K&M advised project developers and investors. K&M has substantial experience in privately financed, competitively bid power plants in Africa, where K&M has provided advisory services for the development of eighteen power plants, including acting as the lead transaction advisor on four of them.
Check out Project Finance International's feature on K&M's contract here
K&M was the lead advisor to the National Electric Power Company (NEPCO) for the negotiations with ACWA Power on the 485 MW Hussein CCGT IPP. The plant will be built at the site of Jordan’s first thermal power station to replace the old facility with GE 9E turbines running on natural gas as the primary fuel. ACWA and NEPCO signed a 25-year PPA on January 18th, 2016 for the project, which is expected to have a total investment cost of US$460 million.
This is the fifth IPP for which K&M has been the lead transaction advisor in Jordan—the other four are Amman East (370 MW), Al Qatrana (373 MW), IPP4 (241 MW), and IPP3 (573 MW). In total, K&M has helped Jordan to increase its privately-financed generation capacity by 2,042 MW.
More information on the Hussein IPP transaction can be found here:
K&M has been retained by a private equity fund to conduct detailed technical, market, and commercial due diligence of two greenfield power generation projects in Chile: an LNG-to-power project and a solar PV plant. The LNG-to-power project includes a 600 MW combined cycle power plant using new, highly-efficient gas turbine technology, a transmission line, and associated LNG regasification and transportation infrastructure. For the LNG project, K&M is assisting the client with a detailed technical due diligence of the plant and transmission line, a market analysis of the plant's wholesale operations, and a commercial analysis of the project as a whole.
The U.S. Trade and Development Agency has awarded K&M a contract to lead a Definitional Mission for Renewable Energy Projects in Mexico. K&M will consult with U.S. and Mexican businesses and with members of the Government of Mexico to identify high priority clean energy projects which could be supported by USTDA funding.
K&M will evaluate and prioritize a number of proposed clean energy projects based on the projects’ economic and financial viability, stage of development, level of public and private support, technical feasibility, and development impact. After reviewing the projects and interviewing stakeholders, K&M will identify ways in which the USTDA could support the projects’ development and identify specific projects which are the best candidates for USTDA funding.
The International Finance Corporation (IFC) is assisting the Privatization Commission of the Government of Pakistan with the privatization of over 1,000MW of thermal power generation assets held by a government-owned company.
K&M will support the IFC by conducting a complete technical review of the existing power plants, including assessing the plants’ physical conditions, operational performance, and the scope for capital improvements. K&M will also perform environmental and social due diligence to identify major issues relating to the proposed transaction structure and sale, and identify mitigation options. K&M’s due diligence will also cover market analysis and assistance with inputs to the financial model, bid documents, and the bid evaluation process.
Through this assignment, K&M will continue to build upon its rich experience in Pakistan’s power sector, spanning more than two-decades from K&M’s leadership in the development of the Hub River Project (Pakistan’s first IPP) to K&M’s current role as Lender’s Engineer for the Rousch Power Plant.
K&M has been engaged by the International Finance Corporation to advise on power, water, wastewater and solid waste service options for Clark Green City, a proposed 9,450ha development north of Manila that aims to create a destination where nature, lifestyle, business, education and industry converge into a global city based on principles of sustainability.
During this initial stage, K&M will identify and assess technical options for least-cost and sustainable service provisions. In future phases, K&M will advise the IFC through the procurement and negotiation process of contracting with a private company for the design, construction, operation and maintenance of the facilities required to provide these services.
Washington DC, April 7, 2015- K&M has been engaged by a private investor to perform technical, market and commercial due diligence for the acquisition of three operating thermal generation assets in Panama and Jamaica with a total capacity of 240MW.
K&M performed a technical evaluation of the assets, which includes a review of plant operations and maintenance, site inspection, remaining useful life analysis, as well as analysis of technical specifications set out in project agreements.
In support of the investor’s commercial due diligence, K&M developed detailed valuation model, and performed market and regulatory analysis.
Washington DC, April 7, 2015 - K&M has been engaged by a private investor to support the negotiation of an Engineering, Procurement and Construction (EPC) contract for a thermal power generation plant in Panama.
Washington DC, February 25, 2015 - The National Electric Power Company (NEPCO) of the Hashemite Kingdom of Jordan has hired K&M Advisors LLC to provide technical advice, commercial due diligence, and negotiation support for the repowering and expansion of the Hussein Thermal Power Station.
The proposed repowering and expansion project would convert the Hussein Thermal Power Station from its original 3x66 MW HFO and diesel-fired steam configuration to a 485 MW combined cycle using natural gas and distillate fuel. The Central Electricity Generating Company of Jordan (CEGCO) is sponsoring the project, and the revitalized power plant would sell its electricity to NEPCO under a PPA.
K&M is conducting a technical evaluation of the proposed project and an extensive review of all project agreements, including the Power Purchase Agreement, Implementation Agreement, and Lender Direct Agreements. Following K&M’s review, K&M will support NEPCO in the negotiations of the final contracts for the project.
Washington, DC, January 30, 2014 - K&M is supporting a private developer of power projects in Latin America in the potential acquisition of a 380 MW combined-cycle gas-fired power project in a Central American country. The project is currently under development and it would use LNG from a Floating Storage and Regasification Unit (FSRU) as its fuel source to provide power to the local electricity grid.
K&M was engaged to provide technical and commercial due diligence on the project. K&M’s work includes an analysis of the local and regional power markets, an assessment of the project’s dispatch and sales, and a detailed review of major project contracts, including the Power Purchase Agreement and EPC contract.
K&M will continue to support the developer throughout the due diligence process as the project continues.
Washington, DC, February 1, 2015 - K&M has been engaged by a private equity investor to perform technical and commercial due diligence for the acquisition of a 40.5 MW solar PV facility which is currently under development.
K&M’s scope of work covers technical evaluation of the facility, which includes an analysis of the solar PV technology employed, the panels’ degradation rates and warranties, and an assessment of the EPC contract for the facility.
In support of the investor’s commercial due diligence, K&M analyzed the local institutional and regulatory environment, including ongoing reform efforts. K&M also performed a credit analysis of the power off-taker, evaluated the sovereign risk in the host country, and estimated the cost of capital for the project.
K&M is continuing to provide support as needed while the project is being developed.