Water Undertaking South Caicos Pre-feasibility
The Government of Turks and Caicos is interested in improving the water sector in the Turks and Caicos Islands. K&M has been engaged to conduct a rapid pre-feasibility for piped water supply in South Caicos and Salt Cay.
K&M will conduct a rapid technical pre-feasibility of piped water supply in South Caicos and Salt Cay. This will include preparing a demand forecast for Water Undertaking, the government department with responsibility for water supply in Grand Turk, Salt Cay, and South Caicos. K&M will develop a financial and economic model for Water Undertaking to determine if transitioning to a piped water supply is realistic in South Caicos and Salt Cay.
The Caribbean Development Bank contracted K&M Advisors to prepare water and wastewater sector profiles for selected BMCs of CDB, namely Belize, Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago, and the Turks and Caicos Islands. These profiles include key information on macroeconomic indicators, water resource management and supply and demand in the sector. Further the profile, identify key stakeholders, provide an overview of the governance and regulatory framework, tariff regime, and impact of climate change and climate projections. In close coordination with the CDB, Ms. Burkhard is reviewing and updating the country profiles provided by CDB, liaising with CDB and country official for data collection and validation, and preparing the final profiles with CDB’s Division of Communications and Corporate Affairs (DCCA).
The Government of Turks and Caicos is interested in improving the water sector in the Turks and Caicos Islands. This project includes conducting a rapid diagnostic of the sector, conducting a strategy workshop with key stakeholders, and preparing a strategic plan outline and implementation roadmap tool for the next three to four years to achieve that aim.
Task 1: Conduct rapid diagnostic of the current situation of the water sector in TCI.
The objective of this task is to conduct a rapid diagnostic of the current situation of the water sector in the Turks and Caicos Islands. To kick off this important work, we will host a virtual call with key stakeholders in the TCIG with responsibility for water. On the call we will discuss the objectives of the assignment and walk through our request for information. We will carry out a review of the financial, operational, and commercial data received from the water department, and supplement it with benchmarking from other water utilities in the Caribbean. We will review the following areas for which objectives will be defined in the TCI Water Sector Strategic Plan: financial, operational, quality of service, an coverage. This review will consider specific challenges and potential opportunities for improvement in the water sector in the Turks and Caicos Islands. The rapid diagnostic will inform the objectives we propose for TCIG for the next three to four years and the identification of priority actions in Task 2.
Task 2: Identify preliminary objectives and priority actions for the Water Sector Strategic Plan.
The objective of this task is to identify preliminary objectives and priority actions for the TCI Water Sector Strategic Plan. Based on the analysis conducted in Task 1, we will identify preliminary priority actions that could be related to, among others, the following: organization structuring and strategy, financial management, human capital management, commercial matters, technical matters, service to customers, legal and regulatory framework in TCI, and others to be identified.
Task 3: Propose preliminary objectives and priority actions to TCIG.
The objective of this task is to propose the preliminary objectives and priority actions to the Turks and Caicos Islands Government. We will host a virtual call with key stakeholders in the TCIG with responsibility for water. On the call we will discuss the preliminary high-level objectives and proposed priority actions. This will inform the materials prepared for the strategy workshop.
Task 4: Produce presentation to be used during the strategy workshop.
The objective of this task is to produce the presentation material to be used during the strategy workshop. Based on feedback received during the virtual meeting held in Task 3, we will conduct additional analysis, revise the proposed high-level objectives and priority actions as required, and produce a presentation in PowerPoint to be used during the strategy workshop. This presentation will include the following: a summary of the results of the rapid diagnostic; proposed high-level objectives to be achieved within the next three to fours years; proposed priority actions to be included in the TCI Water Sector Strategic Plan; and identification of any legal and regulatory reforms that may be needed to achieve the objectives to be incorporated in the TCI Water Sector Strategic Plan.
Task 5: Lead strategy workshop in TCI.
The objective of this task is to lead a strategy workshop in TCI. We will lead a productive and efficient discussion of the proposed high-level objectives for the TCI water sector to be achieved within the next three to four years, the related priority actions, and any legal and regulatory reforms required to meet those objectives. We expect the strategy workshop could take place in Grand Turk and last about four hours. To adequately prepare for the workshop, we will arrive the day before to attend meetings with TCIG and other stakeholders, as necessary. The outcomes and agreement reached during the strategy workshop will inform the TCI Water Sector Strategic Plan Outline and the implementation roadmap tool for the sector.
Task 6: Produce Water Sector Strategic Plan Outline and Implementation Roadmap Tool
The objective of this task is to produce the final version of the TCI Water Sector Strategic Plan Outline and develop the implementation roadmap tool for the sector. The outline will include the agreed upon high-level objectives for the TCI water sector to be achieved in the next three to four years, the related priority actions, and the identification of any legal and regulatory reforms required to achieve the objectives. In addition, it will include the next steps and timing for the development of the TCI Water Sector Strategic Plan . The final version of the Strategy Plan Outline and implementation roadmap tool will be delivered two weeks after the strategy workshop in Grand Turk.
Guam Power Authority (GPA) procured a 198 MW Ukudu combined cycle power plant on an IPP basis. The plant is expected to enter commercial operation in third quarter of 2025 and will initially operate on Ultra Low Sulfur Diesel. GPA intends to develop an LNG terminal to convert the Ukudu plant to operate on natural gas. K&M was retained as a lead consultant to assist GPA in conducting LNG terminal technical and commercial feasibility analysis, and, if proven feasible, to assist in procurement of the LNG terminal and negotiating as gas supply agreement.
Currently, K&M works on the Phase 1 of the project, which includes such tasks as estimating the LNG demand, analyzing source and delivery options, selecting the preferred site and configuration for the LNG terminal and developing terminal conceptual design and cost estimate. The scope of work also includes analysis of the possible business models, financial analysis, determining project feasibility and developing recommendations on whether to proceed with procurement of the LNG terminal. If GPA decides to proceed, K&M will assist GPA in procurement of the LNG terminal and LNG, negotiating a gas supply agreement, and overseeing work during the LNG terminal implementation.
The Water and Sewerage Corporation (WSC) engaged K&M to conduct a comprehensive financial analysis regarding the potential takeover of seven desalinated water plants from Aqua Design in The Bahamas. These plants operate under a Build-Own-Operate (BOO) model within a framework defined by a Master Agreement and individual sub-agreements, with three contracts still active, one under extension, and three expired. K&M’s task was to evaluate four distinct options concerning the future ownership and operation of these plants, providing a detailed financial analysis and strategic recommendations to assist WSC in making an informed decision. This involved scrutinizing the operational and financial implications of each option, offering cost estimations, and developing a strategic framework to ensure that WSC’s decisions are financially viable and aligned with governmental directives, thereby facilitating a smooth transition in the management and operation of these vital water resources.
K&M was engaged by KBR on a time and materials basis to assist the Singapore government in finalizing the Request for Proposals (RFP) and its annexes for Phase 1 of the Clean Ammonia Project. As a subconsultant, K&M’s role is to provide expert advisory and modeling services specifically related to the commercial aspects of the RFP. K&M reviewed the RfP and the commercial annexes and provided recommendations to the Government.
Fogging System Analysis
SEPCO has indicated the power grid in Jordan has had difficulty covering peak loads observed during high-temperature periods. As a result, SEPCO has reviewed potential solutions for its Samra Power Plant to increase power plant generation during these peak periods.
SEPCO intent is to modify all seven gas turbines installed at the Samra Power Plant by installing a fogging system in the gas turbine inlet. This modification aims to increase plant power generation to help the power grid cover the peak loads during high-temperature periods. To evaluate the technical and commercial viability of the fogging system installation, SEPCO engaged K&M Advisors to review the design of generating units’ and auxiliary equipment and systems to evaluate their ability to support the increased power output during fogging system operation.
The purpose of this study is to:
- Verify whether existing auxiliary equipment of each of the phases is capable of supporting facility operation with the fogging systems, and
- Determine the demineralized water demand required for the fogging system.
Fogging System RFP Development
Once the technical viability of implementing the fogging system has been confirmed, SEPCO will need to develop an RFP for suppliers to submit their proposal for design that meets the requirements of applicable standards and good engineering practice. K&M will develop the RFP documentation for suppliers to ensure that the design of the system is adequate and technically sound.
Fogging System Analysis
K&M developed GateCycle models of combined cycle plants to calculate heat and material balances for different ambient temperatures without and with the fogging system. For each combination of the ambient temperature and fogging system status, K&M developed a spreadsheet summarizing the system power output and power output increase, heat rate and heat rate change, fogging system evaporation rate/demineralized water requirements, and other steam and water impacting operation of HRSG, steam turbine, ACC, and other auxiliary equipment that could be impacted by the fogging system. To analyze the demineralized system requirements, K&M calculated the fogging system demineralized water requirements and the total daily demineralized water demand and compared it with the demineralized water system capacity. We evaluated whether there is a deficit of demineralized water with fogging system operation and suggested the required additional demineralized water system capacity.
Fogging System RFP Development
K&M will assist SEPCO in developing the fogging system RFP. The RFP document prepared by K&M will include instructions to bidders, functional technical specification including the scope of supply and services and general technical requirements, and forms to be submitted by bidders. It is expected that the draft supply contract will be prepared to be included in the RFP will be based on the standard SEPCO’s supply contract, so no draft contract preparation is included in K&M’s scope. SEPCO will provide K&M with any available technical and commercial information received to date from the prospective fogging system suppliers.
K&M Advisors was contracted by KBR to support the Singapore Government in designing the commercial aspects of an RfP process to contract a clean ammonia project. The scope of work included advise on the project structure, incentives, RfP drafting, and evaluation criteria. In particular, K&M evaluated potential Public-Private Partnership (PPP) models suitable for the project. This task was comprehensive and involved assessing various candidate PPP models, summarizing each option, and detailing their respective advantages and disadvantages. K&M made recommendations on the most suitable PPP models. These recommendations considered aspects like government funding, ownership options, their implications under various timing scenarios, and related termination and buyout concepts.
In addition to PPP model assessment, K&M Advisors was tasked with identifying relevant funding support mechanisms and incentives. This part of their role focused on analyzing these mechanisms and incentives in terms of their feasibility and the potential impact on the project. They were also responsible for explaining the pros and cons of each option, thereby aiding the decision-making process. This included providing expert advice on the application of the Contract for Difference (CfD) concept for the project. This involved presenting case studies of commercial or market structures, such as CfD, and analyzing their effectiveness. The firm was also responsible for assessing and recommending whether CfD or an alternative model would be the most suitable for the project’s needs.
Lastly, K&M Advisors offered guidance on integrating key funding and commercial structure parameters into a Request for Proposals (RFP). This guidance was to be presented as high-level guidelines in the form of a PowerPoint presentation. They advised on RFP market regulation clauses, evaluation matrices, and questionnaires, aiming to enable a fair comparison of proposals. Their advice also included best practices for apportioning costs related to power generation, bunkering, and common infrastructure.
Through these comprehensive services, K&M Advisors aimed to equip the client with a thorough understanding of the various aspects of funding, partnership models, and commercial structures crucial for the project’s success.
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 Water and Sewerage Corporation of The Bahamas has engaged K&M to undertake the preparation of a Corporate Business Plan. The primary objective of this consultancy is to develop a comprehensive plan that will guide the Water and Sewerage Corporation’s activities from 2023 to 2027. The plan will encompass various aspects such as service quality, operational efficiency, financial management, capital investments, and the legal and regulatory framework.
Within this assignment, K&M has been assigned the following responsibilities:
- Preparation of a financial model for the Water and Sewerage Corporation (WSC) to facilitate effective financial planning and management.
- Conducting a cost of service study for WSC, which will help determine the appropriate pricing structure for services.
- Developing an action plan for tariffs, ensuring a strategic approach to tariff adjustments in line with the cost of service study outcomes.
- Providing advisory support on existing water supply contracts, reviewing their terms and conditions, and making recommendations for improvements or updates.
- Creating a prioritized capital expenditure (CAPEX) plan for WSC, outlining investments aimed at enhancing operational efficiency, improving service quality, and strengthening the overall resilience of the organization. Additionally, developing a financing plan to support the implementation of the CAPEX plan.
- Recommending changes to government policies and the legal and regulatory framework governing the water and sewerage sector, aiming to create an enabling environment for WSC’s operations.
- Establishing a baseline of Key Performance Indicators (KPIs) to measure customer satisfaction, enabling WSC to monitor and enhance its service delivery.
- Providing advisory support for the update of WSC’s emergency response plan, ensuring preparedness and efficient response in emergency situations.
- Ultimately, K&M will prepare the Corporate Business Plan itself, incorporating all the necessary components and recommendations.
Throughout the process, K&M will also lead stakeholder engagement forums and present the developed recommendations to the Government, ensuring transparency and collaboration in shaping the future of the Water and Sewerage Corporation of The Bahamas.