Technical, Commercial, and Market Due Diligence
Latin America and the CaribbeanOctober 22, 2020
K&M was engaged by Blackstone (a U.S. private equity fund) to provide technical and market due diligence services for Blackstone’s acquisition of a portfolio of generation assets consisting of 9 operating and under construction power plants in Argentina. The operating plants are located on the Tucuman (833 MW) and Doc Sud (869 MW) generation complex and include GE and Alstom gas turbines on a combined cycle configuration. These plants sell electricity to Argentina’s national utility (CAMMESA). The portfolio also includes plants under construction with a total capacity of 594 MW—including gas turbines on a simple and combined cycle configuration. K&M reviewed the technical inputs to the financial model and suggested adjustments, reviewed PPAs to analyze and comment on risk allocation between the parties, analyzed liquidated damages related to construction delays, and reviewed market reports prepared to identify market risks not fully addressed in the financial model and suggested adjustments.