Development of Options for Wastewater Reuse PPPs in Mexico City
The IFC contracted K&M Advisors LLC (K&M) to assess the feasibility and market opportunities for the implementation and operation of wastewater reuse projects to supply off-takers in CDMX. The team will conduct a market assessment to understand the potential demand for and supply of treated wastewater in CDMX and identify, contact, and survey the alternative off-take uses for treated wastewater in CDMX. Additionally, the team will develop a detailed analysis regarding the basic technical aspects of the implementation, including potential locations based on demand forecast for potential off-takers by types of water quality and location requirements. K&M will outline and evaluate the possible financial and contractual structures for the development of water reuse projects. The team will prepare a final report and lead a Workshop on key findings and recommendations for the IFC, World Bank and other external guests to be agreed with the IFC.
The USTDA engaged K&M to assist with identifying and evaluating renewable energy projects in Mexico which could potentially be good candidates to receive USTDA development support. K&M led a Definitional Mission to Mexico, where K&M met with key public and private sector stakeholders to gather information on proposed renewable energy projects – some of which were PPPs – and on the Government of Mexico’s development priorities. K&M identified a pipeline of projects and prioritized them based on technical feasibility, financial viability, political support, developmental readiness, and potential interest from U.S. investors and suppliers. After identifying a short list of high-priority projects, K&M determined which projects were the best candidates to receive USTDA support, and K&M recommended specific forms of support which the USTDA could provide.
K&M has been contracted by EIG Partners to conduct due diligence for a 300 MW solar project in Mexico. K&M is reviewing the engineer’s due diligence reports and yield reports for the Helios and Tuli PV solar projects. K&M will prepare a memo identifying red flags and fatal flaws that were identified during its review of the above reports. K&M may also review technical aspects of the PPAs and EPC contracts, technical inputs to the financial model; and prepare a due diligence report summarizing the results of review of the Mott’s reports and project agreements. K&M may also conduct a site visit to examine the projects.
K&M has been engaged a European-based private equity firm to analyze renewable (and possibly gas) energy investment opportunities in six Latin American countries. For the first phase of the engagement, K&M analyzed each country’s energy sector in terms of market fundamentals, market design and regulation, access to PPAs, risk, level of competition, and return dynamics, and then evaluated each market based on the client’s investment criteria. K&M then presented its market conclusions and recommendations to the client. For the second part of the engagement, K&M performed a deeper-dive assessment of the two countries with the highest investment potential for the client and designed potential entry strategies. This phase also included identification of particular project investment opportunities consistent with the client’s criteria. The conclusions were presented to the client.