K&M Back in Colombia with Work on a Power Supply Options Study for CONTECAR

K&M will be returning to our original stomping ground of Cartagena (Colombia) to analyze power supply alternatives for the Terminal de Contenedores de Cartagena S.A.’s (Contecar) port in Mamonal (Cartagena).  One of K&M’s first power projects was also in Mamonal and involved the development, through its sister company KMR, of the Proelectrica 100MW combined cycle gas plant that supplies power to industrial users. Almost 25 years later, industrial users in Cartagena, like CONTECAR, are still suffering from power outages and are in desperate need to find reliable least-cost power supply options. CONTECAR had 280 hours of power supply interruptions in 2016. K&M will assist CONTECAR to identify and analyze alternatives to supply power to the Port of Cartagena. One of the preferred options is an interconnection to the medium-voltage network and the installation of a solar PV in CONTECAR’s premises. After confirming the preferred option, K&M will prepare the conceptual design and costs estimates; perform economic, financial and environmental analysis; and develop an implementation plan, including EPC contract and RFP. 

K&M Engaged by Aruba’s Power Utility to Review LNG-to-Power Business Case

K&M has been retained by WEB Aruba N.V., the island’s main power producer, to review the Business Case for an LNG-to-Power project. Utilities Aruba N.V. is gearing up to develop an LNG-to-Power project to help reduce the cost of electricity and pollution from HFO-fueled power plants. As an advisor to WEB, K&M is performing an independent review of the Business Case to ensure consistency and coherency throughout the document, as well as a review and audit of the economic and financial models used. If this Business Case demonstrates the case for switching from HFO to LNG, K&M is expected to continue assisting with the development of the LNG-to-Power project for Aruba.

K&M Makes Kenyan News for Work on Olkaria VI 140 MW Geothermal Plant

Check out Kenyan news coverage on K&M’s work on KenGen’s first public private partnership!

K&M is serving as the lead advisor, with AECOM as subcontractor, on the Olkaria VI 140 MW geothermal plant. Our work started in August 2016 and the K&M team will be heading to Kenya in the coming weeks to complete Phase I—feasibility study.

K&M Proud to Continue its engagement with KenGen on new Feasibility Study for a Solar PV Power Plant

K&M recently was engaged by KenGen to conduct a feasibility study for the Gitaru 10 MW solar power plant located next to the 225 MW hydroelectric dam in Gitaru, Kenya. This is the second project K&M is currently working on with Kenya’s national utility KenGen. K&M’s scope of work includes assessing the technical, economic, and financial viability of the project, and preparing the tender documents for the procurement of an engineering, procurement, and construction (EPC) contractor to build the power plant. K&M is excited to continue strengthening its relationship with KenGen and helping Kenya reach its target of universal energy access by 2020.

K&M Engaged as Transaction Advisor for a 120 MW LNG/ULSD-to-Power IPP in Guam

K&M’s Managing Director of Technical Services, Lenny Golbin, will be leading the firm’s upcoming work on the 120 MW IPP in Guam. K&M will be sub-contractor to Stanley Consultants engaged to provide engineering and technical services to the Guam Power Authority (GPA). The project consists of a 120 MW plant that will burn ultra-low-sulphur diesel (ULSD) and will later convert to Liquefied Natural Gas (LNG). As K&M’s lead advisor on the project, Mr. Golbin will be providing transaction advisory services, conducting project structuring, organizing the competitive bidding process, and assisting the GPA in negotiations with the selected IPP sponsor to bring the project to financial close.

Old Harbour 190 MW LNG to-Power Project Reaches Financial Close

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.

Hussein 485 MW Power Station Receives Financial Backing from World Bank

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.

Financial Closure Reached for Octopus LNG to Power Project in Chile

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 Makes Headlines for Transaction Advisory Services on a 250 MW CCGT power plant in Tanzania

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

Central Java 2000 MW Power Plant Reaches Financial Closure

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 Retained as Transaction Advisor for Olkaria VI 140 MW Geothermal power plant in Kenya

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).

 

K&M Selects EPC Contractor for 70 MW Steam Cycle in Jordan

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. 

K&M Team Hit a High Note at Rock & Roll Marathon/Half Marathon

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 Advises Lenders on LNG-to-Power Project in Caribbean

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 Retained as Transaction Advisor for 250 MW CCGT in Tanzania

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 Advises on Successful 485 MW IPP Transaction in Jordan

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 Advises Private Investor on Greenfield LNG-to-Power Project in South America

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.

K&M Supports USTDA on Clean Energy Projects in Mexico

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.

IFC Awards K&M Mandate for the Privatization of over 1,000MW of Power Generation Assets in Pakistan

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.