U.S. Trade and Development Agency (USTDA) is working to implement the Global Procurement Initiative: Understanding Best Value (GPI) Regional Energy Procurement Program for South Asia (REPPSA) Virtual Training Series. The purpose of the REPPSA Virtual Training Series is to learn about innovative best-value procurement practices to support the development of high-quality energy infrastructure. The REPPSA Virtual Training Series is broken into a two-part training series focused on best practices in the procurement of energy infrastructure.

K&M was engaged by Green Powered Technology to develop and deliver USTDA-funded training sessions on Public Private Partnerships for Energy and Power Purchase Agreements. The workshops were designed to learn about innovative best-value procurement practices to support the development of high-quality energy infrastructure.

The K&M team developed training presentations and content and delivered virtual training sessions to public sector energy sector representatives from Maldives, Sri Lanka, Nepal and Bangladesh.

K&M delivered virtual training sessions on use of PPPs for energy sectors, PPP planning, PPP procurement preparation and design including non-price evaluation factors, PPP implementation, role and development of PPA, development of bankable PPA, roles and best practices of key PPA provisions, and incorporation of non-price evaluation factors in PPA.

At request of the Asian Development Bank (ADB), K&M prepared a paper and a presentation summarizing its’ experience including the process, the results, and lessons learned during performance of the Transaction Advisory assignment assisting the Government of Bangladesh and the Bangladesh Power Development Board (BPDB)) in implementing the country’s first Independent Power Project (IPP). K&M was responsible for the technical, commercial, financial and legal aspects of the 450 MW Meghnaghat Power Project. It was structured and tendered on a Build-Own-Operate-Transfer (BOT) basis. Specific assignments ranged from conducting a feasibility assessment, analyzing the sector institutional and regulatory framework to structuring the deal, developing the security package and project agreements, determining adequate tariff levels, identifying project financing resources, managing the international tendering process and providing negotiation support to the BPDB. K&M also analyzed wholesale operation procedures, regional energy issues related to the development of offshore gas fields, regional pipeline transportation options, and gas transfer pricing. The $300 million Meghnaghat natural gas-fired combined cycle project achieved financial close in 2001. The project was recognized as “Asia Power Project Deal of the Year” in 2001 by Project Finance International.

K&M was engaged by the Asian Development Bank (ADB) to serve as the Lead Transaction and Financial Advisors to the Government of Bangladesh and the Bangladesh Power Development Board (BPDB) to implement the country’s first Independent Power Project (IPP). K&M was responsible for the technical, commercial, financial and legal aspects of the 450 MW Meghnaghat Power Project. It was structured and tendered on a Build-Own-Operate-Transfer (BOT) basis. Specific assignments ranged from conducting a feasibility assessment, analyzing the sector institutional and regulatory framework to structuring the deal, developing the security package and project agreements, determining adequate tariff levels, identifying project financing resources, managing the international tendering process and providing negotiation support to the BPDB. K&M also analyzed wholesale operation procedures, regional energy issues related to the development of offshore gas fields, regional pipeline transportation options, and gas transfer pricing. The $300 million Meghnaghat natural gas-fired combined cycle project achieved financial close in 2001. The project was recognized as “Asia Power Project Deal of the Year” in 2001 by Project Finance International.

K&M, under a subcontract to Price Waterhouse Coopers provided investment advisory services to the Infrastructure Development Company of Bangladesh. The contract was based on task orders that could include such activities as project appraisal, development services, feasibility study, and technical and commercial due diligence. Under the contract, K&M completed the task of developing the guidelines for selection of an Independent Engineer for private power projects.

K&M was engaged by CDC Globeleq to conduct technical and commercial due diligence on a fast-track basis. K&M evaluated the following six power plants totaling 1,976 MW of capacity: the Haripur 360 MW CCGT IPP, the Meghnaghat 450 MW CCGT IPP, the Kelanitissa 163 MW diesel-fired combined cycle IPP, the Kelvin 600 MW coal-fired IPP, the Songas Ubungo 113 MW CCGT IPP, and the Ebute 290 MW gas-fired open cycle barge IPP. For each power plant, K&M evaluated technical performance, commercial arrangements, operations and maintenance (O&M) arrangements, plant management, regulatory structures, and the plant’s environmental profile. To support the technical due diligence, K&M engineers interviewed plant staff and conducted site inspections to evaluate the physical conditions of each plant. K&M reviewed all major contracts for each plant, including PPAs, fuel supply agreements, and O&M contracts, and K&M analyzed risks which could impact future operations and cash flows to investors. K&M also estimated the remaining useful life of each asset.

K&M was hired by the Emerging Markets Partnership (EMP) in Bahrain to perform due diligence of the Haripur and Meghnaghat gas-fired combined cycle power plants in Bangladesh. K&M had previously performed due diligence on these assets for CDC Globeleq in 2002. K&M re-assessed the technical and financial performance and risk factors of both plants to account for any changes in the plant’s operating conditions, management, and regulatory environment. Additionally, K&M evaluated assumptions in the financial model used to project the performance of both plants, and K&M provided expert commentary on major material risks that remained relevant for potential investors in the two assets.

K&M was engaged by the International Finance Corporation (IFC) to assist the Government of Bangladesh with the development of a proposed 320-450 MW gas-fired combined cycle power plant under an Independent Power Producer (IPP) arrangement. K&M assessed the technical design requirements for the project, including recommending the project size, technology configuration, site layout, and other major design elements. K&M also evaluated potential sites for suitability in terms of water and fuel availability, power evacuation, geotechnical conditions, environmental and social impacts, and transportation access. K&M provided all technical inputs for project contracts and assisted with the preparation and management of the competitive bidding process to select a private sector developer. During negotiations with the winning bidder, the Government decided not to follow through with the project.

K&M was engaged by the Power Cell of the Ministry of Power, Energy, and Mineral Resources to assist with the re-bidding of the proposed Sirajganj 450 MW gas-fired combined cycle IPP. K&M had previously assisted the Power Cell with the procurement of the project, but at the Government’s request, the tender was not awarded. K&M reviewed all bidding documents in the Request for Proposal and made any necessary revisions for re-issuance of the procurement process. K&M assisted the Power Cell with managing the procurement process and evaluating pre-qualification and post-qualification bids from private sector developers. The Government awarded the project after K&M completed the bid evaluation stage of the procurement process.

The Asian Development Bank (ADB) hired K&M to assist the Power Cell of the Ministry of Power, Energy, and Mineral Resources in Bangladesh with the competitive procurement of the Sirajganj 450 MW gas-fired combined cycle power project. The project would be implemented through an Independent Power Producer (IPP) arrangement. K&M conducted a technical feasibility study of the project to assess the project’s size requirements, technology configuration, site layout, fuel supply and water needs, and other technical operating requirements. Following the feasibility work, K&M prepared all project contracts and bidding documents for the Request for Proposals, including the PPA, fuel supply agreement, and Implementation Agreement. K&M managed the competitive bidding process and evaluated the bids. At the Government’s request, the project was not awarded.

K&M served as Owner’s Engineer to the Electricity Generating Company of Bangladesh (EGCB) for the Siddhirganj 335 MW combined cycle gas-fired power plant. K&M’s scope of work covered conceptual plant layout and design, cost estimation, preparation of technical specification and the RFP for the EPC bidding, and the entire bidding, selection, and evaluation process for selection of the EPC contractor. K&M prepared all bid documentation and managed the procurement process through to bid evaluation and negotiations with the winning EPC contractor. K&M also provided design review services and technical assistance to the EGCB as needed during the EPC contractor’s design phase.