Emergency Power Supply 450 MW Procurement
K&M, on behalf of the Federal Republic of Nigeria, Bureau for Public Enterprises, assessed sites and developed international competitive bidding instruments for the procurement of emergency power supply units. Several sites were recommended for implementation of fast-track independent projects that would add 450 MW gas-fired capacity on a Build-Own-Operate (BOO) basis. K&M’s scope of work included preparation of prequalification tender documents, Request for Proposal (RFP) document, selection criteria design, and security package, bid evaluation, bidder shortlist and recommendation of the successful bidder. K&M also conducted an extensive technical evaluation of existing generation, transmission and distribution assets in order to assist the Government of Nigeria and NEPA to prioritize rehabilitation of existing power plants, upgrade of transmission facilities and meet demand for new generation. K&M’s scope of work also included a training workshop for key government and utility officials in Abuja.
K&M conducted a training workshop on utility’s privatization with key government and utility officials. The training aimed to strengthen the institutional, organizational and technical capacity of the Nigerian Bureau of Public Enterprises (BPE)—the central authority tasked to implement the country’s ongoing privatization program. K&M’s utility privatization training team prepared an agenda focused on Nigeria’s electric power and telecommunications sectors. Four workshop days were aimed at familiarizing the BPE senior core team, staff members, other government officials, and power and telecom utility officials with the principles of utility privatization. In addition, discussions focused on current privatization programs in other developing economies.
K&M was engaged by CDC Globeleq to conduct technical and commercial due diligence on a fast-track basis. K&M evaluated the following six power plants totaling 1,976 MW of capacity: the Haripur 360 MW CCGT IPP, the Meghnaghat 450 MW CCGT IPP, the Kelanitissa 163 MW diesel-fired combined cycle IPP, the Kelvin 600 MW coal-fired IPP, the Songas Ubungo 113 MW CCGT IPP, and the Ebute 290 MW gas-fired open cycle barge IPP. For each power plant, K&M evaluated technical performance, commercial arrangements, operations and maintenance (O&M) arrangements, plant management, regulatory structures, and the plant’s environmental profile. To support the technical due diligence, K&M engineers interviewed plant staff and conducted site inspections to evaluate the physical conditions of each plant. K&M reviewed all major contracts for each plant, including PPAs, fuel supply agreements, and O&M contracts, and K&M analyzed risks which could impact future operations and cash flows to investors. K&M also estimated the remaining useful life of each asset.
The USTDA engaged K&M to evaluate gas-sector projects in Sub-Saharan Africa that may be good candidates to receive USTDA funding. K&M’s scope includes a preliminary assessment of up to twelve proposals or initial assessments of project planning activities (such as feasibility studies, technical assistance, legal advisory services, engineering and design, environmental impact assessments, and pilot projects) in the natural gas sector in Sub-Saharan Africa (including Nigeria, Botswana, South Africa, and Mozambique), and a detailed funding proposal of up to ten project planning activities for USTDA consideration. The assessments were based on the potential for export of U.S. services or goods, track records of the project developer or sponsors, project’s financial viability and bankability, development and environmental impact, impact on U.S. labor, and how well the project aligns with Power Africa’s initiative goals.