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.