Krasdonar 900 MW Power Station
Europe and Central AsiaOctober 22, 2020
K&M served as transaction advisor for the proposed 900 MW natural gas-fired combined-cycle private power project in Krasnodar. This assignment involved extensive institutional development and reform components, which would support initial steps toward establishing competition among generating plants. This project was envisioned as one of the first power sector projects in Russia to secure a loan from the World Bank ($515 million), and one of the largest Independent Power Projects (IPP) in all of the FSU and Eastern Europe. K&M developed the $818 million project financing plan and risk strategy, structured the roles of the participants in the transaction, developed a corporate plan for the new generating company, drafted the project agreements, analyzed all factors affecting private investment including fuel supply options, pipeline transportation systems and pricing, reviewed Kubanergo’s (the regional utility) commercial operations and reviewed the local, regional and federal regulatory practices as they affect the structuring plans and plant operations.