CIFI has recently formalized a mandate agreement with Zenith Energy Corp. S.R.L. to provide financial advisory, structuring, and arranging services aimed at raising approximately US$105 million in senior debt. This financing is intended to support the construction and operation of a solar plant located in the Dominican Republic. As part of this initiative, K&M has been appointed by CIFI to conduct financial due diligence for the project, which involves a 101 MW Solar PV and a 25 MW Battery Energy Storage System (BESS) facility.

For this due diligence assignment, K&M will develop and manage a Financial Model that adheres to industry best practices, drawing on the firm’s extensive experience in financial modeling for non-recourse or limited recourse financings. This model will be designed to be detailed, functional, user-friendly, and specifically tailored to meet the needs of international project financing. Key components of the Financial Model include an income statement, balance sheet, and cash flow statement, alongside comprehensive financial projections. The model will also feature forecasts for critical financial metrics such as revenue, expenses, and profitability, and include a debt sizing mechanism based on the Debt Service Coverage Ratio (DSCR). Additionally, the model will provide sensitivity analysis to examine the effects of variable changes on financial outcomes and scenarios to explore various potential future conditions.

K&M was hired to advise on the submission of a bid to build, own, and operate 1-2 large LNG terminals and a gas-fired combined cycle power plant in the Dominican Republic. K&M supported the planning and implementation of a comprehensive prequalification, reviewed the Request for Qualifications of Prequal documentation provided by the procuring entity identifying submission and qualification requirements and evaluating qualification criteria and methodology, and established a plan to collate all documentation, produce submission documentation, and successfully qualify for the proposal stage for both lots. K&M also submitted a Request for Information (RFI) and submission checklist, and drafted all documentation required.

K&M served as technical and financial consultant to the US Agency for International Development (USAID) and the Center for Privatization of the Government of the Dominican Republic. K&M evaluated the opportunities for and impediments to independent power producers in the Dominican Republic. Incorporating technical, financial, legal, regulatory issues, K&M evaluated private sector options for power generation. This effort resulted in the eventual development of the private power law enacted by the Dominican Republic in 1990.

K&M was retained by the Tampa Energy Corporation to structure a privately financed 56 million gallon per year ethanol facility and associated 80 MW bagasse-fired cogeneration plant in the Dominican Republic, which would sell surplus electricity to the electric grid. In addition, K&M had the overall technical and project management responsibility for this project. K&M assisted Tampa Energy in the funding, design, feasibility and engineering studies, equipment and machinery supply contracts, and the supervision of the construction of the production facility.

Puerto Chiquito Diesel Station, Dominican Republic. K&M performed a feasibility study for a group of private investors in the Dominican Republic on the installation of a diesel generating system. The diesel plant provided power to a major tourist complex developed by the same owners. K&M also arranged U.S. Export-Import Bank financing for equipment services of U.S. origin. This World Bank funded project served as a model for a much larger privatization undertaking in the 10-15 MW range.

K&M served as technical and financial consultants to the Government of the Dominican Republic (GoDR) on behalf of the US Agency for International Development (USAID) under subcontract to RCG/Hagler Bailly. K&M provided the GoDR with a format for reviewing and evaluating Independent Power Project (IPP) proposals submitted by private developers. Subsequently, K&M assisted in drafting the enabling legislation. Law No. 14-90, ratified on February 1, 1990, became the cornerstone for implementing the proposed sector reform program and established the framework for encouraging private participation and investment. The law also set forth procedures for creating a new agency, the Directorate for Development and Regulation of the Electric Power Industry, to plan, coordinate and regulate the power sector.

K&M was contracted by the World Bank to evaluate the options and requirements needed to improve the institutional and regulatory framework of the power sector in the Dominican Republic. K&M provided recommendations regarding 1) installation of technical systems, document preparation, formation of project evaluation parameters, and development of an institutional design for a Financing Guarantee Fund, 2) development of new power sector regulatory agency’s organizational structure, project evaluation policy, project modeling techniques and policy for private sector participation, 3) bid solicitation and evaluation guidelines for private power projects, and 4) a model RFP for the country’s first private power project solicitation.

K&M was engaged by USAID to provide the Government of the Dominican Republic with technical assistance on the institutional design and development of the Directorate for Development and Regulation of the Electric Power Industry (DDRIE). This agency was deemed necessary for the country’s development of the over 700 MW of power needed to achieve sustainable social and economic growth. DDRIE’s mission was to develop the power sector on a private basis.
K&M’s work included assisting DDRIE to: interpret existing legislation and to produce rules and regulations for reform of the power sector; develop its organizational structure; develop an institutional design for the Financing Guarantee Fund; provide training for the DDRIE personnel; and prepare complete set of guidelines and manuals for: accounting, tariffs, project proposal solicitation, evaluation and award, concessions, performance monitoring, operation of private sector participants, and enforcement procedures.

K&M was engaged by the World Bank to provide technical and commercial advisory services for selecting a developer for a 250 MW fossil-fired power plant in the Dominican Republic. The scope of services provided by K&M included power plant site selection and development of the Request for Proposal (RFP) including, among others, Technical Specification and draft Project Agreements.

K&M served as privatization and institutional reform consultants to the Government of the Dominican Republic and the state-utility, Comisión Dominicana de Electricidad (CDE) under a USAID/World Bank-sponsored program. Subsequently, K&M served as transaction advisor for the proposed San Pedro de Macorís thermal plant IPP. During Phase I K&M evaluated the existing legal, regulatory and institutional framework and provided recommendations on power sector reforms and privatization strategy to facilitate private investment. During Phase II K&M evaluated the technical and financial issues associated with the tender, evaluation and award of the proposed San Pedro de Macorís 300 MW power plant. K&M conducted a fuel pricing (coal and fuel oil) and transportation study, outlined procedures for drafting, tendering and evaluating the RFP procurement documents, and drafted model security package agreements. K&M assisted the CDE to issue the RFP and evaluate bid submissions. The San Pedro de Macorís project consisted of a proposed 300 MW thermal plant, switchyard, 138 kV double circuit high voltage transmission lines and support facilities. The project reached financial close in 2000 for US$318 million.