The consortium, CONCEGAS, led by Benito Roggio e Hijos, S.A. and including Ecofisa, S.A., Calix, S.A., Conipa, S.A., and Siabe, S.A., was formed to pursue an agreement with the Argentine Government for the concession of privatizing a natural gas distribution system, which serves the City of Buenos Aires and the Greater Metropolitan Area of Buenos Aires. K&M was retained by Benito Roggio e Hijos, S.A. to provide assistance in identifying a suitable entity to join the consortium and operate the gas distribution system once the award of the concession was made. K&M was also retained as an operating entity by an association of American companies, led by Coastal Natural Gas Company, including CMS Energy Company and Public Service of Colorado. In addition, K&M provided assistance with project and financial structuring, and the development of a regulatory framework for the industry.

The USTDA engaged K&M to identify and evaluate energy projects in Argentina which may be good candidates to receive USTDA funding for a feasibility study. K&M led a Definitional Mission to Argentina, where K&M met with key public and private sector stakeholders to gather information on proposed energy projects – some of which were PPPs – and on the Government of Argentina’s development priorities. K&M identified 10 activities that could benefit from USTDA support. Eight of the 10 activities were deemed to be a lower priority for the USTDA, based on the USTDA’s funding criteria. The two remaining projects are very responsive to the USTDA’s funding criteria, and that were recommended for are: Demand Side Management (DSM) Feasibility Study for EPEC, and Edenor Smart Meters in AMI Networks Feasibility Study.

K&M was engaged by Blackstone (a U.S. private equity fund) to provide technical and market due diligence services for Blackstone’s acquisition of a portfolio of generation assets consisting of 9 operating and under construction power plants in Argentina. The operating plants are located on the Tucuman (833 MW) and Doc Sud (869 MW) generation complex and include GE and Alstom gas turbines on a combined cycle configuration. These plants sell electricity to Argentina’s national utility (CAMMESA). The portfolio also includes plants under construction with a total capacity of 594 MW—including gas turbines on a simple and combined cycle configuration. K&M reviewed the technical inputs to the financial model and suggested adjustments, reviewed PPAs to analyze and comment on risk allocation between the parties, analyzed liquidated damages related to construction delays, and reviewed market reports prepared to identify market risks not fully addressed in the financial model and suggested adjustments.

K&M has been engaged a European-based private equity firm to analyze renewable (and possibly gas) energy investment opportunities in six Latin American countries. For the first phase of the engagement, K&M analyzed each country’s energy sector in terms of market fundamentals, market design and regulation, access to PPAs, risk, level of competition, and return dynamics, and then evaluated each market based on the client’s investment criteria. K&M then presented its market conclusions and recommendations to the client. For the second part of the engagement, K&M performed a deeper-dive assessment of the two countries with the highest investment potential for the client and designed potential entry strategies. This phase also included identification of particular project investment opportunities consistent with the client’s criteria. The conclusions were presented to the client.

K&M was contracted to provide the consulting services for strategic advisory support for the development of low and high enthalpy geothermal projects in selected countries in Latin America. The consultancy will provide strategic advice regarding barriers to the development of GE and provide recommendations to reduce or dismantle these barriers. As part of this assignment, K&M will conduct analyses and provide strategic advice and recommendations for four out of the following nine countries in Latin America with untapped geothermal potential: Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Nicaragua, and Peru. The four countries will be selected by the Inter-American Development Bank (IDB) during the execution of the consultancy.