Tampa Energy 80 MW Power Station
K&M was retained by the Tampa Energy Corporation to structure a privately financed 56 million gallon per year ethanol facility and associated 80 MW bagasse-fired cogeneration plant in the Dominican Republic, which would sell surplus electricity to the electric grid. In addition, K&M had the overall technical and project management responsibility for this project. K&M assisted Tampa Energy in the funding, design, feasibility and engineering studies, equipment and machinery supply contracts, and the supervision of the construction of the production facility.
K&M served as technical consultant to the Egyptian Ministry of Supply under a multi services contract on behalf of the Egyptian Electricity Authority and US Agency for International Development (USAID). K&M completed a design review, provided construction management and start-up services for a 3 x 3 MW diesel generating station located in southern Egypt on the Red Sea.
K&M was retained by Infilco to perform an evaluation of proposals for conformance to specifications regarding instrumentation and control requirements, on behalf of Infilico Degermont Co., for water treatment plant systems for the Government of the Arab Republic of Egypt’s Ministry of Electricity. The tender specification required provision of an advanced central distributed control system capable of simultaneously monitoring and controlling a raw water pretreatment system, a chlorination plant, demineralizer plant, waste water treatment plant, and controls from the pump house and water intake area.
Puerto Chiquito Diesel Station, Dominican Republic. K&M performed a feasibility study for a group of private investors in the Dominican Republic on the installation of a diesel generating system. The diesel plant provided power to a major tourist complex developed by the same owners. K&M also arranged U.S. Export-Import Bank financing for equipment services of U.S. origin. This World Bank funded project served as a model for a much larger privatization undertaking in the 10-15 MW range.
K&M served as Owner’s Engineer to the Jamaica Public Service Company (JPSC) for implementation of its Hunt’s Bay Power Project, a $23.2 million, 33 MW facility. K&M was responsible for startup and commissioning of the plant. K&M organized an international competitive selection process for the EPC contractor, and evaluated/selected the turnkey contractor according to World Bank standards. K&M brought the project to completion, from initial feasibility study to operation, in under 1-1/2 years on time and on budget.
The project was performed in two phases. In Phase I, technical services included: project feasibility study, conceptual design, bid package documents preparation, proposals evaluation, developer recommendation, and final EPC contract preparation. In Phase II, technical services included: design review, construction services oversight, and overall quality control for plant construction and start-up. The EPC contractor was the firm of Wallace O’Connor from Texas using local Sub-contractors.
K&M served as project developer, technical consultant and owner’s engineer for the 100 MW Mamonal project. As such, K&M’s involvement in Latin America’s first-ever privately financed non-recourse Independent Power Project (IPP) encompassed a broad range of advisory services. K&M developed this pioneering project on a Build-Own-Operate-Transfer (BOOT) basis and structured the transaction to achieve financial close within a period of only 7 months. K&M worked with the government to develop and reorganize the commercial, regulatory, legal and securities framework to allow for private investment. The Mamonal plant sells electricity to both private industries and the national grid, thus the project structure required negotiation of a full range of issues related to market-oriented operation in the energy sector, including wholesale and retail tariff models and methodologies, fuel supply transportation and pricing, and spot market system.
K&M developed risk mitigation arrangements, which included the implementation agreements, long-term lease agreement, and the sales agreements to private and public clients. K&M worked with the various government entities and local partners involved to negotiate the complete terms of the transaction including: fair tariff wheeling arrangements (the first in Colombia); EPC construction contract which included procurement procedures; Power Purchase Agreement (PPA); Security Package agreements; and non-recourse financial agreements.
Mamonal’s success was covered extensively in the trade media. It was recognized as “Deal of the Year” in 1994 by Project Finance International Yearbook and “One of the Ten Most Creative Deals” of 1993 by Infrastructure Finance. The contractual guarantees, risk allocation concepts and the incentive structure of the Mamonal transaction, as conceived and negotiated by K&M, are now being used as a model worldwide. The $100 million facility consists of a 100 MW (ISO) natural gas-fired combined cycle power plant in a steam-augmented mode. The power island includes two General Electric LM 5000 steam injected gas turbines (STIG) and two heat recovery boilers (HRSG). It connects to the grid through a 69 kV switchyard and 1 km 69 kV transmission line. Status: Commercial operation 1994.
K&M served as Owner’s Engineer to the Egyptian Electricity Authority for the engineering design, procurement and construction supervision of Egypt’s first subscriber fiber-optic carrier loop system. This project provided a short-term reliable telecommunications link between Cairo and the 1,200 MW El-Kureimat Power Station under construction 100 kilometers south of Cairo.
K&M served as Owner’s Engineer to the Egyptian Electricity Authority providing engineering design, procurement, and construction management for its 1,200 MW (2×600) El-Kureimat Power Project near Cairo. It was the first 600 MW unit in Egypt and the largest gas/oil-fired plant in North Africa, providing 20% of the country’s power. The plant was designed and built under a co-financing structure involving multilateral and bilateral development banks and funding agencies. This project was constructed using a multi-package financing concept developed by K&M utilizing funds from the U.S. Agency for International Development (USAID), World Bank, African Development Bank, Arab Fund for Social & Economic Development, and other lending institutions.
K&M coordinated the project development, funding, and loan aspects to ensure overall financing optimization of the project. K&M’s innovative approach to implementing projects, and its thorough understanding of linkage of multi-source funding, project packaging, and procurement, saved the EEA over $350 million from the original project budget. K&M enhanced and improved the contract packaging by matching the sources of project funds with the proper scope of work items, thereby having timely procurements in step with construction scheduling. K&M, in association with Raytheon/EBASCO Overseas Corp., provided technical, procurement, project and construction management services for 7 of the 18 contract packages for this project valued at over $250 million. K&M also provided customs clearance support in Egypt for all 18 of the contract packages representing over $420 million in equipment and spare parts.
The project was performed in two phases. Phase I included preliminary engineering and procurement of prime contract packages for the civil, architectural and engineering works including the plant boilers, pumps and drives, the water and wastewater treatment systems, the switchyard and the electrical distribution equipment, control room simulators, and insurance, etc. Phase II included all post-contractual duties such as design review of the detailed engineering performed by the contractors, construction management, training programs and assistance in startup, testing, commissioning and initial operations. The project was commissioned in 1998.
K&M developed conceptual designs and cost estimates for Coal Technology Corporation’s (CTC) coking process. CTC, with support from the Morgantown Energy Technology Center (METC), developed and patented a process for coke-making which solves significant pollution problems caused by the present coke-making process. K&M reviewed the patented coke-making process design, established site-related design requirements, determined and specified applicable codes, standards and other required regulations, developed equipment layout and building arrangement, developed a project schedule, identified required permits and cognizant federal and state approving entities, prepared bid documents, obtained bids from eligible tenderers for a potential turnkey construction contract, evaluated responsive bids and assisted in negotiating a firm turnkey contract with the winning bidder.
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.