Before every change in government administrations of its client countries, CAF carries out a regulatory and performance assessment of the infrastructure sector. Ahead of the change in government to take place in Honduras in 2025, CAF contracted K&M Advisors LLC to carry out this assessment.

As part of CAF’s development of its country strategy for Honduras, it contracted K&M to prepare the Infrastructure Regulatory and Sectoral Analysis Report for Honduras. For each of the infrastructure sectors, this report assessed the performance, regulatory and institutional framework, level of private sector participation, impact on specific measures, and financing capacity and needs. The sectors assessed were water and sanitation, energy (including conventional generation, renewable energy, transmission, and distribution), transport (including roads, ports, and airports), logistics, and information, technology and communications. As part of this assignment, K&M developed and implemented a tool to recommend a prioritization of CAF’s technical and financial support for the sectors, and projects within the sectors.

The general objective of this consultancy was to prepare the technical, economic, and legal feasibility studies for the introduction of green hydrogen in the energy supply for the domestic market, as well as the supply of an international market from Panama.

In this assignment, K&M was responsible for assessing the potential routes for commercializing green hydrogen from Panama, identifying the role of Panama in the green hydrogen supply chain, developing a methodology for prioritizing capital investments in green hydrogen, and carrying out the economic analysis and risk analysis of developing green hydrogen facilities in Panama.

The IDB contracted K&M Advisors LLC (K&M) to conduct a country-level survey in Panama regarding employment creation in the energy sectors associated to the green transition.

The main objective of the assignment was to gather data on the number and types of jobs created in the energy sector, including renewable energy, energy efficiency, demand management, electromobility, hydrogen, installation of solar panels, and storage, including advisory and consulting firms in these sectors. The K&M team made comparisons of employment creation by types of employment between the different sectors. This analysis included topics such as gender, education, investment, employment, and other relevant variables on both companies and unions present in the country that are representative of the whole. Additionally, the team provided the IDB with a database, developed a methodological guidebook, and presented the findings to IDB staff.

USAID engaged K&M to assist the Institución de Recursos Hidraúlicos y Electrificación (IRHE) to develop the financial, technical, commercial, policy principles and documentation required to enable private power development in Panama. K&M’s scope of work included an assessment of the legal and regulatory barriers to private investment in power, development of policy recommendations to remove these barriers, and extensive capacity building for IRHE staff on preparation, procurement and implementation of privately financed power projects.

K&M was engaged by USAID to serve as IPP consultant for the private sector rehabilitation, lease and operation of the 100 MW San Francisco Private Power Project in Panama City. K&M assisted the Institución de Recursos Hidraúlicos y Electrificación (IRHE) by identifying changes to the legal and regulatory framework needed to enable IPPs, preparing the bid documents, and drafting project agreements. The project agreement became the model document for attracting private sector participation in the energy sector and provided the initial framework for power sector reform in Panama.

K&M was engaged by IRHE, the national electric utility of Panama, to perform technical and financial due diligence evaluation of international tender offers for the turnkey rehabilitation and new capacity addition of the 130 MW Central 9 de Enero combined cycle power plant at Bahía de las Minas. Specifically, K&M evaluated adequacy of turbo-generator controls, whether the equipment fulfilled the necessary technical requirements of the plant and followed the terms of the RFP, and if the general standards for control (both manual and computerized) were compatible with the plant to receive and transmit the required dispatching information.

Through the Private Power Technical Assistance program in Panama, K&M assisted the Institución de Recursos Hidráulicos y Electrificación (IRHE), the Panamanian electricity authority, in selection of a private developer for rehabilitation of their 50 MW plant. A preliminary set of bidding documents and power purchase agreements were also prepared.

K&M was engaged by the National Dispatch Center (CND) to verify the operating and cost data provided by six generating companies. The objective of this audit was to independently validate data that CND will use to dispatch plants based on their marginal cost. Marginal costs were calculated based on plant generation costs, technical restrictions such as minimum and maximum loads, startup times, ramp rates, etc. Generating companies report these data to CND for each generating unit. K&M did a technical audit of six thermal units: Bahia Las Minas 120 MW steam cycle, Bahia Las Minas 161 MW combined cycle, AES 42 MW simple cycle gas turbine, COPESA 44 MW simple cycle gas turbine, PanAm 96 MW diesel, and Petroelectrica 55 MW diesel.

Pan Am Generating Ltd. owns and operates the La Chorerra IPP in Panama, which provides 96 MW of generating capacity using six Wärtsilä 18V46B reciprocating engines. Pan Am Generating Ltd. engaged K&M to conduct an operations audit of the La Chorerra plant to support its request to the Panamanian System Operator for the plant’s minimum dispatch rating to be increased from 50% to 75% of its rated capacity (per engine). K&M reviewed previous technical audits and reports cataloguing the plant’s historical operating performance and equipment failures. K&M reviewed the plant’s current operating practices and conducted an on-site inspection of the facility. K&M diagnosed operating problems regarding turbocharger washing frequency, increased particulate matter, and decreased dispatch loads to support the operator’s request for a higher minimum dispatch rating.

K&M was engaged by a private power plant developer to assist with negotiating the EPC contract for a 89 MW HFO-fired thermal power plant in Panama. K&M performed a full commercial and technical review of the EPC contract to assess the contract’s provisions against the power plant’s operating requirements and commercial contractual arrangements. The K&M team provided in-person support to the project developer through participation in the contract negotiations, which were successfully concluded. The EPC contract was signed by all parties and the project is under development.