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.

K&M was engaged by the AIG African Infrastructure Fund (AAIF), an affiliate of the Emerging Markets Partnership (EMP), to conduct a full technical and commercial due diligence of the Kelvin 600 MW coal-fired IPP in South Africa. K&M had previously performed due diligence of the plant for CDC Globeleq in 2002, and used this work as a basis for producing an updated due diligence report. K&M interviewed plant staff, reviewed operations reports and test results and evaluated the plant’s forecast technical and commercial performance. K&M also estimated the plant’s useful remaining operating life and the progress of refurbishment efforts at the facility. K&M reviewed the plant’s contractual arrangements and identified any major operational risks which could impact shareholder value.

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.

South Africa has various infrastructure plans, laws, and policies in place, but this has not resulted in a cohesive and unified public investment framework. In addition, there is no process or centralized decision point for conceiving, screening, and preparing projects regarding their overall suitability to be implemented with private financing or as PPPs. The World Bank hired K&M to support the Government of South Africa (GoSA), and more specifically the Investment and Infrastructure Office (IIO) in the Presidency, with the development of an Infrastructure Finance Policy.
K&M’s first task was to review international examples of similar policies related to infrastructure financing, including PPPs. K&M then reviewed relevant South African documentation such as: National Development Plan (NDP), National Infrastructure Plan (NIP), Infrastructure Development Act No 23 of 2014 (IDA), Infrastructure Delivery Management System (IDMS), Framework for Infrastructure Delivery and Procurement Management (FIDPM), and the IIO’s draft Infrastructure Finance Policy. From this analysis, K&M drafted an Infrastructure Finance Policy outline and later finalized the outline after receiving comments from relevant GoSA stakeholders and the World Bank team.

As a subcontractor to COWI, K&M will analyze several FSU options to serve both Namibia and Northern Cape region of South Africa with trucked LNG and to supply a potential gas power plant. K&M will develop a financial model to calculate the levelized cost of electricity (LCOE) for each FSU siting option. The LCOE will be based on the LNG ex ship price, FSU charter rate, berth and mooring infrastructure capital cost, and offshore and onshore gas pipeline capital cost. This assignment is funded by the International Finance Corporation (IFC).