PROJECTS—LENDER & OWNER ENGINEER SERVICES
K&M's advice to protect owners and lenders has turned around the financial performance of distressed assets.
For example, K&M served as lender’s engineer to Standard Chartered Bank on behalf of the project lenders to a 412 MW combined-cycle power plant located at Sidhnai Barrage, Pakistan. Siemens served as the turnkey contractor. The plant consists of two Siemens V94.2 gas turbines in combined cycle with two heat-recovery steam generators feeding steam to a single turbine. The project was structured as an IPP on a Build-Own-Operate (BOO) basis. During the early years of commercial operation the plant was operated on heavy fuel oil—this led to power output and heat rate degradation, and made the project financially unviable. Based on K&M’s advice, project lenders requested the project owner to convert the facility to burn natural gas. Despite an additional capital injection to finance the cost of this conversion, the project’s financial performance significantly improved. Currently the project is operating successfully generating sufficient cash flow to service debt and pay dividends to the project’s owners.
K&M’s advice to project owners and lender’s has also included projects in Armenia, Belarus, Colombia, India, Indonesia, Jamaica, Kenya, Nigeria, Pakistan, Panama, Peru, Philippines, Russia, Turkey, and US.