10 MW Waste-to-Energy Transaction and Investment Advisory
K&M was hired by one of the industry’s leading integrated waste technologies solutions provider in the region. The client’s 10 MW Waste to Energy pilot project innovation is a first of its kind in Kenya. The project is based on three specific forms of biomass: municipal solid waste, agricultural crop residues and livestock waste or manure. The WtE pilot which is also phase 1 of the project will be located in Kibera, an informal settlement in Nairobi. This is a single line facility with a capacity of 300 tons per day, and a total of 100,000 tpa. For this pilot phase, the output will be biomethane and electricity. The expanded facility will have a capacity of 250,000 tpa and the outputs will be biomethane, ethanol and electricity. K&M Advisors will provide financial / commercial advisory services with the primary objectives of (i) raising the necessary funds to complete project development and (ii) successfully achieving project financial close for the pilot project.
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 and financial consultants to Promigas, S.A. for a private gas pipeline project. The project consisted of a 1,000 km gas pipeline in Colombia and is one of the largest private undertakings in the developing world. Promigas, S.A. planned to build, own, and operate the pipeline. K&M provided overall financial structuring as well as commercial specifications for the project. K&M was responsible for: formulating and optimizing the financial package, interfacing with the World Bank for hard and soft credit facilities, interfacing with export credit agencies, preparing risk matrices, negotiating financial contracts, and evaluating and revising cash flows.
K&M was the technical advisor and consulting engineer to KTI Energy and Resources Services, Inc., for a 5 million gallon per day water desalination plant and municipal waste-to-energy facility capable of generating 40 MW (net) for sale to the grid to be completed for the Defense Housing Authority in Karachi. This project was offered on a build-own-operate basis. The scope of services for the contract included the following: obtaining USAID/TDP grant-in-aid for the feasibility study, developing of the Preliminary Feasibility Report, assisting the client and its agents in conducting negotiations in Pakistan for power purchase and water supply agreements, assembling the financial package, participating in the development of the procurement documents, serving as the Owner’s Engineer for construction contract negotiations and construction and start-up period.
K&M served as technical consultant to the US Trade Development Agency (USTDA) to evaluate the potential for implementation of automated process control systems in several key industrial sectors in Malaysia. For the Advanced Thermal Energy Improvement Program, K&M performed the following tasks: 1) reviewed the Government of Malaysia’s goal for infrastructure investment activity, 2) estimated annual budget allocation projected for thermal expansion, 3) conducted a financial analysis for the potential for U.S. exports of goods and services, 4) assessed export potential for U.S. goods and services, 5) assessed the competitive position of the U.S. in terms of being able to provide goods and services to the project, and 6) prepared the final report.
As technical consultants to the US Trade and Development Agency (USTDA), K&M completed a definitional mission study of CORELCA, the electric utility responsible for the Atlantic coast grid in Colombia. K&M conducted an energy loss study of Atlantic coast states including Atlántico, Bolivar, Magdalena, Córdoba and César. This involved an in-depth analysis of CORELCA’s bidding procedures and evaluation of their commercial specifications; an identification of equipment requirements, possible follow-on U.S. exports. In addition, K&M completed a comprehensive review of major existing distribution companies (DISCOS) serving CORELCA and recommended management changes to reduce electrical distribution losses. These included power losses that were both technical- and fraud-related. K&M also completed an analysis of the inventory, distribution, mapping system and networks. K&M’s evaluation and recommendations resulted in a streamlined program approach which saved the Colombian government and CORELCA the equivalent of several million dollars from distribution losses.
K&M was engaged by the World Bank to support recommendations to the Government of Bolivia for the promotion and co-financing with the private sector in the utilization of natural gas. The proposed projects attempt to increase the value-added of Bolivia’s natural gas reserves. K&M reviewed the business economics of the proposed investments and assessed the synergies and risks involved in a portfolio of projects depending on natural gas supply. The analysis served to provide a clear understanding of the business feasibility for private sponsorship of each project, given the long-term conditions of the domestic, Brazilian, regional and world energy markets.
K&M was engaged by US Trade and Development Agency (USTDA) to conduct a desk review of the Generation Expansion Plan prepared by Electricidad de Caracas. The objective of this review was to identify power plants that could be developed or built by US companies.
K&M provided services to the US Trade Development Agency (USTDA) in determining the priority and need for a program to introduce solar water pumps for portable water supply in remote regions of Kenya, and conducted a preliminary feasibility study for potential US solar electric applications. The scope of K&M’s work included the following: review of the Government of Kenya’s goals for infrastructure investment activity, a preliminary analysis of the economics of solar water pumping compared with alternative water delivery technologies, an analysis of the potential for US exports of goods and services, assessment of the export potential for US goods and services, evaluation of the competitive position of the US in terms of being able to provide goods and services for the project, and preparation of the final report.
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.