Design Technical Assistance Program
K&M designed a $5 million program of technical assistance that would enable the Government of India to effectively respond to the needs of private power project developers attempting to develop projects in the country.
K&M, along with Sub-contractor Tata Consulting Engineers (India), was engaged by US DOE to conduct a technical and financial feasibility study and developed business plans for commercial deployment of the Integrated Gasification Combined Cycle (IGCC) advanced technology in India. Two proposed projects consisting of a gasification island and a power island were evaluated: 1) a 150 MW IGCC facility fueled with Indian coal, and 2) a 250 MW IGCC facility fueled with Indian lignite, both to be located in the state of Gujarat, India. Two financing approaches were evaluated: 1) a government-sponsored infrastructure project backed by the full faith and credit of the Government of India, and 2) a privatized project utilizing either a BOO or BOT concept and financed on a limited- or non-recourse basis. In addition, K&M hosted a study tour to the United States for senior executives of a local Indian private power utility to meet with IGCC experts.
K&M was engaged by a US company THERMOCHEM Incorporated under a Subcontract Agreement to assist them in performing a Feasibility Study for an Indian sugar producer, Ajinkyatara Cooperative who considered developing a 30 MW cogeneration plant. K&M estimated plant’s performance characteristics and prepared cost estimate as well as financial model to estimate the tariffs to be charged for steam and electricity and return on investment.
K&M was engaged by US DOE to conduct a comprehensive review of potential application of clean coal power generation technologies in China, India and Indonesia. K&M did a detailed analysis of these three markets to assess specific opportunities, barriers to meeting the opportunities, and options for addressing those barriers. K&M used the information gathered from these three countries to evaluate changes influencing or creating new opportunities for deployment of US clean coal technology advanced power systems.
Ahmedabad Electricity Company (India) engaged K&M as the Owner’s Engineer for development and implementation of the proposed IGCC project at the Sabarmati Thermal power Station. This assignment was a follow-up to the previously performed assignment where K&M under the contract with US DOE conducted a pre-feasibility study for constructing a nominal 150 MW IGCC plant at AEC’s Sabarmati Thermal Power station using coal. K&M developed conceptual preliminary design, estimated the Engineering, Procurement, and Construction (EPC) costs, assessed the environmental impact of the project, developed financing plans, and established the Cost of Electricity (COE) generation. K&M then prepared the Detailed Project Report which included equipment specifications and the necessary documents required by lending institutions for financing the project, and subsequently, providing Construction Management for the Project.
K&M served as Privatization and Institutional Reform consultants to the Government of India (GoI) for this USAID-sponsored program supported by the World Bank. Over a five-year period, K&M provided a full range of advisory services covering institutional, legal, regulatory, technical and financial issues for power sector reform in order to promote efficiency and attract private sector investment. K&M structured the India Private Power Initiative (IPPI) to foster development of private power projects on an economically viable, environmentally sustainable and technologically sound basis. Acting through the Investment Promotion Cell of the Ministry of Power, K&M provided assistance to the Power Finance Corporation, Central Electricity Authority, State Electricity Boards, and other governmental agencies. This comprehensive program was designed to build in-country capabilities to evaluate, process, and independently negotiate a myriad of private power project proposals pending before local, regional, and national government agencies.
K&M service as Owner’s Engineer to Coastal Power who was developing a 200 MW Basin Bridge Power Project on an IPP basis in Tamil Nadu, India. The project utilized 4×50 MW low speed 2-stroke diesel engines. K&M conducted a comprehensive engineering due diligence evaluation of the raw sewage water treatment system and power generating facilities. The scope of the facility included the power plant and the sewerage treatment facility. Water from the sewerage treatment facility would be used as a water source for the power plant. As a result of the due diligence review, K&M concluded that the basic process design presented for the STP and certain issues concerning the power generating plant required modifications, and advised Coastal Power to consider a revised process which would better meet the requirements of the power plant.
K&M served as Lender’s Engineer to the Global Environment Fund on behalf of a private investor seeking to acquire, own and operate the 515 MW Gas Fired Combined Cycle Hazira Power Project in Gujarat, India. Owned by Essar Power Company, Hazira entered into combined cycle commercial operation in 1997, and was India’s first Independent Private Power Project (IPP). Structured as a hybrid IPP, the major offtakers were the Gujarat Electric Board (300 MW) and Essar Steel Limited (215 MW). K&M completed a due diligence evaluation to verify the technical, commercial and financial status of the plant. K&M reviewed the Project Agreements, EPC Contact, O&M Agreement, Financial Model, and technical, environmental, and financial characteristics of the project to ensure that the project risks are properly addressed and that technical and cost assumptions used in the Financial Model are reasonable. As a result of their review, K&M made recommendations for upgrades to improve efficiency and emissions.
K&M was engaged by the Asian Development Bank as transaction advisor to assist POWERGRID Corporation of India to structure, tender and evaluate India’s first international competitive bid (ICB) for the 660 km, 400 kV transmission line that will connect the Bina, Nagda and Degham substations in the States of Gujarat and Madhya Pradesh. K&M’s scope of work included: reviewing the relevant laws and regulations, assessing the feasibility study, structuring the BOOT transaction, developing a financial model, developing RFQ and RFP documents, drafting project agreements, assisting during prequalification and proposal processes, evaluating proposals, and assisting during negotiations. This transmission project was the first of its kind to be offered on a private basis by a central power utility in India.
K&M served as Lender’s Engineer to the Overseas Private Investment Corporation (OPIC) to perform a technical appraisal for the Azure 5 MW solar PV project. K&M evaluated the proposed system design, construction, rack assembly, control building, electrical equipment and installation arrangements. K&M also reviewed the site conditions, including the projected solar energy resource, site access for construction, and power evacuation arrangements. To identify performance risks, K&M appraised the technology chosen for the project and assessed the track record of the panels, including evaluating the panels’ expected degradation rates. The analysis included an assessment of contractors, suppliers, modules, inverters and other systems critical to the operation of the project. The appraisal also included a discussion of warranties, spares, and maintenance requirements.