Attarat Oil Shale Power Project Independent Engineer
The National Electric Power Company (NEPCO), a national electric utility responsible for operating Jordan’s transmission network planning system expansion including procurement of new generating facilities selected the Attarat Power Company, a private company incorporated in Jordan, whose shares are owned Malaysian, Chinese, and Estonia entities, to develop, design, finance, construct, test, commission, complete, own, insure, operate and maintain a 470 MW (net) oil shale fired power plant (together with the mine and water extraction facilities). The project consists of two 235 MW (net) unit. The project will sell its capacity and energy to NEPCO under a long-term Power Purchase Agreement (PPA). K&M was selected to serve as an Independent Engineer on the project serving both NEPCO and APCO and getting paid by both parties on a 50/50 basis.
K&M was engaged by the Hashemite Kingdom of Jordan to assist the National Electric Power Company (NEPCO) with an assessment of Jordan’s energy needs, potential for IPP development, and the procurement of new power generating capacity. K&M conducted a feasibility study of public and private options for developing new power generating capacity to meet Jordan’s energy needs. This work included an assessment of Jordan’s energy supply and demand, an analysis of its regulatory and legal environment, and an evaluation of various project structures for private investment in power generation. K&M prepared draft tender documents for the procurement of a developer for 300-450 MW of generating capacity at the Samra site under a Build-Own-Operate arrangement. K&M attended pre-bid meetings and provided technical support to MEMR and NEPCO for the technical specifications of the project and the design of the transaction documents. The project eventually was built and a government-owned facility and is now operating as Phase 1 of Samra Electric Power Company (SEPCO) power generation complex.
K&M served as Lead and Financial Transaction Advisor to The Hashemite Kingdom of Jordan, Ministry of Energy and Mineral Resources (MEMR). K&M assisted with structuring and tendering a 370 MW gas-fired combined cycle plant on a Build-Own-Operate (BOO) basis. The K&M team provided financial, legal, and technical support in site selection for this project, developed the international competitive bid tender documents, managed the bidding and selection process, and concluded contractor negotiations through financial close. An updated electricity demand study was reviewed and finalized by K&M. In addition, a risk assessment and financial sources assessment were prepared. The resulting RFP was issued to a group of bidders previously pre-qualified by K&M. After receiving and evaluating the proposals, K&M recommended a developer for negotiations. The K&M team then assisted MEMR with the negotiations of the project agreements with the successful bidder. The project reached financial closure in March 2007 for a total of US$300 million.
K&M served as the Lead and Financial Transaction Advisor to the National Electric Power Company (NEPCO) of the Hashemite Kingdom of Jordan to assist in the development of a 241 MW reciprocating engine tri-fuel power plant. K&M provided commercial, financial, regulatory, and technical support to develop the project’s conceptual design, key project agreements, and commercial structure. K&M developed the international competitive bid tender documents (PPA, government support, fuel, water, land, and grid connection agreement) and managed the entire tender and selection process. K&M also designed the evaluation model and selected a consortium comprised of AES and Mitsui as the winning bidder to develop the project. On behalf of NEPCO, K&M led negotiations with the project developer to a successful financial close in 2012 with OPIC and EBRD for a total of US$360 million.
K&M was engaged by the Samra Electric Power Company (SEPCO) to assist with the evaluation of bids for the construction of the Samra Phase III capacity addition on an EPC basis. The Phase III capacity addition would add 240 MW of gas-fired power generating capacity in simple-cycle configuration to the Samra power station. Kuljian had been hired by SEPCO to prepare the EPC contract and tender documents, manage the procurement process, and evaluate the final bids. K&M’s role was to provide an independent evaluation of the five responsive bids which were submitted. K&M reviewed Kuljian’s evaluation and completed a revised bid evaluation based on modeling the costs of each bid in both simple cycle and combined cycle operational modes. K&M also performed sensitivity analysis on the proposed plant configurations to determine the least-cost bid under a range of operating scenarios. K&M’s report was accepted by SEPCO and K&M’s recommended winner successfully developed twin gas-fired Alstom turbines to add almost 286 MW of capacity to the Samra Power Station.
K&M served as the Lead and Financial Transaction Advisor to The Hashemite Kingdom of Jordan, Ministry of Energy and Mineral Resources (MEMR) to assist in the development of a 373 MW gas-fired combined cycle power plant on a Build-Own-Operate (BOO) basis. The K&M team provided all technical, financial, and legal services required to structure, tender, award, negotiate, and support the project through to financial close. K&M structured the project and provided all technical and commercial inputs to prepare key project agreements, including the PPA and Implementation Agreement. K&M managed the entire procurement process, including preparing the technical specifications, assessing the project site, designing the prequalification criteria, preparing the international competitive bid tender documents, managing the bidding and selection process, and awarding the project. K&M negotiated with the winning bidder on behalf of MEMR through to financial close. The project reached financial close in 2009 for US$466 million, marking it as the second successful power generation PPP in Jordan.
K&M served as Owner’s Engineer to SEPCO for the Samra Phase IV Fast-Tack project, a 143 MW gas-fired simple cycle power plant. K&M provided a full range of on-site engineering and consulting services to assist SEPCO throughout the design, procurement, and construction phases of the project through to its commissioning and commercial operation. K&M performed a pre-feasibility study to identify possible equipment suppliers and plant characteristics for the required capacity and developed the bidding documents for selection of the EPC contractor, which included instructions to bidders, technical specifications, drawings, and the draft EPC Contract. K&M also managed the competitive bidding process, evaluated the bids, and completed negotiations with the selected EPC contractor. After the signing of the EPC contract, K&M performed design review and construction supervision activities. Under K&M’s guidance, the project was completed on time and the EPC contractor delivered the project to SEPCO for commercial operation within a record-breaking 8 months after signing the EPC contract. The project was also delivered within budget while meeting plant performance guarantees.
K&M served as the Lead and Financial Transaction Advisor to the National Electric Power Company (NEPCO) of the Hashemite Kingdom of Jordan to assist in the development of a 573 MW power plant as an IPP under a Build-Own-Operate structure. IPP3 is a tri-fuel, reciprocating engine facility capable of operating on natural gas, diesel, or HFO, and it is the largest plant of its kind in the world.
K&M provided commercial, financial, regulatory, and technical support to develop the project’s conceptual design, key project agreements, and commercial structure. K&M developed the international competitive bid tender documents (PPA, government support, fuel, water, land, and grid connection agreement) and managed the entire tender and selection process. K&M also designed the evaluation model and selected a consortium composed of KEPCO, Mitsubishi, and Wärtsilä as the winning bidder to develop the project. On behalf of NEPCO, K&M led negotiations with the project developer to a successful financial close in March 2013 with KEXIM, Nippon Export and Investment Insurance (NEXI), KFW, Standard Chartered, Mizuho Bank, and Sumitomo Bank for a total of US$812 million.
K&M served as the transaction advisor to NEPCO for the implementation of the repowering and expansion of the Hussein Thermal Power Station as the fifth IPP in Jordan. The project converted the existing 3×66 MW oil-fired facility into a 485 MW combined-cycle using natural gas and distillate fuel. The Central Electricity Generating Company of Jordan (CEGCO) was sponsoring the project, and the revitalized power plant will operate as an IPP under a Power Purchase Agreement (PPA) with NEPCO.
K&M performed a technical evaluation of CEGCO’s proposal and an extensive review of all project agreements, including the PPA, Implementation Agreement, and Lender Direct Agreements. Following K&M’s review, K&M supported NEPCO in negotiating the PPA for the project, which was signed in January 2016. The project will cost US$460 million and provide electricity at one of the lowest tariffs in Jordan’s conventional power sector. The project reached financial closing on February 2017.
K&M was engaged by the Samra Electric Power Company (SEPCO) to provide Owner’s Engineer services for the addition of a 140 MW steam cycle to the Samra III 2×143 MW gas-fired power station to convert the unit from a simple cycle to a combined cycle system. K&M provided a full range of engineering and consulting services to assist SEPCO throughout the design, procurement, and construction phases of the project through its commissioning and commercial operation. K&M assisted with the power station conceptual design and layout, and development of technical specification to be included in the RFP for the selection of the EPC Contractor. K&M also drafted all other tender documentation for the competitive selection of an EPC contractor, and managed the entire bidding process, bid evaluation, and negotiation of the EPC contract with the winning bidder.
After procuring an EPC contractor, K&M reviewed the EPC Contractor’s design documentation and, at a later stage, deployed a team of technical experts to the project site to provide on-site oversight and management of the EPC contractor’s construction work. K&M oversaw the EPC contractor’s startup and commissioning activities through to the declaration of the Commercial Operations Date in June 2015. K&M will continue to provide technical support to SEPCO throughout the EPC warranty period and assisted in resolution of contractual dispute between SEPCO and their EPC contractor.