The energy regulator of the Cayman Islands is planning to issue a Request for Proposal (RFP) for the development of a new thermal power plant in Grand Cayman, with an expected capacity of approximately 36.5 MW. CUC will serve as the off-taker for the power generated by the selected Independent Power Producer (IPP). K&M will support CUC by developing a draft Power Purchase Agreement (PPA) tailored to the thermal IPP project.

K&M is supporting CUC by preparing a draft Power Purchase Agreement (PPA) for the project, including identifying and recommending the allocation of responsibilities and risks between CUC and the IPP. As part of this work, K&M will adapt CUC’s existing thermal PPA to reflect project-specific requirements and will also review the Interconnection Agreement.

CUC is preparing to submit a proposal in response to a forthcoming Request for Proposal (RFP) for the development of a new thermal power plant in Grand Cayman, with an expected capacity of approximately 36.5 MW. CUC intends to contract MAN to deliver fully wrapped EPC services for the plant. There is some uncertainty regarding the final capacity that will be requested in the RFP – it may call for either a 36 MW or a 90 MW plant. However, certain parameters relevant to the plant’s conceptual design are expected to remain unchanged regardless of the final capacity. K&M will support CUC with the pre-RFP phase by reviewing the conceptual design developed by MAN, with a particular focus on engine performance (capacity and heat rate), interface definitions, and the completeness of the BOP scope.

K&M’s scope includes conducting site visits for meetings between CUC and MAN, reviewing the MAN proposal to identify gaps in the scope, description of interfaces, accuracy in performance estimates, and any other items presenting a technical or commercial risk to CUC, analyzing plant performance, including reviewing proposed MAN engine performance at site conditions and auxiliary power consumption to estimate net output and net heat rate curves, and validating inputs for the technical section of the proposal.

Caribbean Utilities Company (CUC) engaged K&M to provide advisory services for developing a balance of plant (BOP) scope for the final dual fuel conversion for Engine Room 5. Under this assignment, K&M will review the proposals submitted by MAN and BWSC for the dual-fuel conversion of Engine Room 5 and develop a final project scope and price (if applicable) to enable CUC to solicit bids. K&M will begin by reviewing MAN’s proposal and their scope of services matrix, followed by an evaluation of the scope described in the BWSC proposal. K&M will then develop a comprehensive list of systems and BOP (Balance of Plant) equipment items required for the conversion to gas. Next, K&M will compare the BWSC proposed scope to MAN’s scope matrix and the internally developed list to identify any gaps or additional work that may be necessary. The team will also review the mechanical and technical specifications, provide detailed comments, and prepare a list of clarification questions for BWSC, MAN, and CUC as needed. Following this, K&M will evaluate the responses to these clarifications and incorporate the findings into the scope matrix and, if required, into the total price proposed by BWSC. Finally, K&M will prepare a detailed report summarizing the activities performed, presenting the final project scope and price (if applicable). This report will provide CUC with the necessary information to solicit bids for the project and evaluate those bids against the indicative benchmark pricing.

Caribbean Utilities Company (CUC) plans to renew the contracts for purchasing ULSD from Sol and Rubis. As part of this renewal, CUC wants to refine the fuel supply contracts used in the past and revisit if PLATTS is still the optimal fuel price index for CUC.

K&M will improve and refine the fuel supply agreements that CUC used in previous fuel supply tenders. K&M will also analyze if PLATTS is CUC’s optimal fuel price index. This analysis will include investigating which fuel price indices CUC’s fuel suppliers are likely to use to buy the fuel they supply to CUC and whether CUC would be better off using those indices rather than PLATTS. Based on this analysis, K&M will make specific recommendations on an appropriate fuel price adjustment formula.

K&M will assist CUC in developing new drafts of the primary and secondary fuel supply contracts that reflect the above improvements and refinements.

K&M will then assist CUC in preparing an RFP and reviewing and evaluating the proposals submitted by Sol and Rubis.

Caribbean Utilities Company (CUC) has expressed its intention to procure gas supply for its power plants competitively. The procurement process will involve several key activities. To begin with, there will be a prequalification process where interested parties will be assessed for eligibility. K&M, in its role as an assisting entity, will support CUC in this process. Their responsibilities include drafting the Request for Qualifications (RFQ), developing project advertisements, launching the prequalification process, and assisting CUC in evaluating the responses received.

As part of the RFQ, K&M will conduct a gas demand analysis to provide an understanding of CUC’s expected gas demand, which will provide valuable context to the bidders. Furthermore, K&M will design the bid process and establish the technical and financial evaluation criteria based on the project structure and chosen contracting modality for gas supply.

K&M will also play a crucial role in preparing the Request for Proposal (RFP) document and the term sheet for project agreements, ensuring a solution-neutral tender process. At CUC’s direction, K&M will distribute the RFP documents to the prequalified bidders and manage any clarifications or inquiries from the bidders. K&M will be responsible for drafting responses to these inquiries and coordinating the receipt and control of all proposals.

Following the opening of the proposals, K&M, in collaboration with CUC, will evaluate them on a pass-fail basis. Technical and responsiveness evaluations will be conducted, and K&M will prepare a recommendation to CUC based on the evaluation results. The recommendation will include the necessary analysis, examples of submittals, and supporting documentation regarding the responsiveness test.

Once the highest-ranked bidder has been selected, K&M will provide assistance in the negotiation and finalization of the Gas Supply Agreement (GSA) term sheet. Furthermore, they will collaborate with international legal counsel to draft the complete version of the GSA.

Throughout the entire procurement process, K&M will actively support CUC, leveraging its expertise in managing the various stages, from prequalification to proposal evaluation and negotiation, to ensure an efficient and competitive gas supply procurement for Caribbean Utilities Company.

CUC is considering LNG as a new fuel for power generation. There are several LNG import solutions that Cayman could consider, and the majority of them are likely to result in a cost of fuel that is lower than diesel. However, before proceeding with the development of a specific solution, CUC wants to develop an LNG-to-Power strategy that considers all the technically viable LNG-to-Power options, and narrows the options to two or three that have the lowest costs, a manageable level of risk, and could be implemented in a reasonable timeframe.