Regional Energy Procurement Program South Asia
U.S. Trade and Development Agency (USTDA) is working to implement the Global Procurement Initiative: Understanding Best Value (GPI) Regional Energy Procurement Program for South Asia (REPPSA) Virtual Training Series. The purpose of the REPPSA Virtual Training Series is to learn about innovative best-value procurement practices to support the development of high-quality energy infrastructure. The REPPSA Virtual Training Series is broken into a two-part training series focused on best practices in the procurement of energy infrastructure.
K&M was engaged by Green Powered Technology to develop and deliver USTDA-funded training sessions on Public Private Partnerships for Energy and Power Purchase Agreements. The workshops were designed to learn about innovative best-value procurement practices to support the development of high-quality energy infrastructure.
The K&M team developed training presentations and content and delivered virtual training sessions to public sector energy sector representatives from Maldives, Sri Lanka, Nepal and Bangladesh.
K&M delivered virtual training sessions on use of PPPs for energy sectors, PPP planning, PPP procurement preparation and design including non-price evaluation factors, PPP implementation, role and development of PPA, development of bankable PPA, roles and best practices of key PPA provisions, and incorporation of non-price evaluation factors in PPA.
K&M served as IPP project structuring and development consultants to Sri Lanka’s Board of Infrastructure Investment (BII) under a USAID-funded program. Working with counterparts from the Ministry of Irrigation and Power and Ceylon Electricity Board, K&M evaluated proposals received from private developers for a proposed 163 MW diesel-fired combined cycle gas turbine power plant. K&M’s IPP services included serving as resident technical, financial and economic advisor to the BII; preparing detailed financial model, tariff structure and sensitivity analysis, assisting in preparation of the Request for Proposal; analyzing and evaluating technical and commercial proposals providing counsel on negotiation of the project agreements, and training of BII staff in financial analyses of infrastructure projects. The $104M project was awarded to AES Kelanitissa (Pvt) Limited which provided bridge financing to initiate construction. Commercial operation in 100 MW open-cycle mode started anticipated in 2002 and in combined-cycle mode in 2003. Financial close was achieved in 2001.
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.