K&M Advisors - Infrastructure Assesment

Infrastructure Assesment

Before every change in government administrations of its client countries, CAF carries out a regulatory and performance assessment of the infrastructure sector. Ahead of the change in government to take place in Honduras in 2025, CAF contracted K&M Advisors LLC to carry out this assessment.

As part of CAF’s development of its country strategy for Honduras, it contracted K&M to prepare the Infrastructure Regulatory and Sectoral Analysis Report for Honduras. For each of the infrastructure sectors, this report assessed the performance, regulatory and institutional framework, level of private sector participation, impact on specific measures, and financing capacity and needs. The sectors assessed were water and sanitation, energy (including conventional generation, renewable energy, transmission, and distribution), transport (including roads, ports, and airports), logistics, and information, technology and communications. As part of this assignment, K&M developed and implemented a tool to recommend a prioritization of CAF’s technical and financial support for the sectors, and projects within the sectors.

The Caribbean Development Bank (CDB) contracted Mr. Nils Janson, a Managing Director at K&M Advisors, to review and provide recommendations on the draft Electricity Bill prepared by the Government of Saint Lucia.

Reviewed the draft Electricity Bill
Provided recommendations for improving the draft Electricity Bill

The World Bank contracted K&M Advisors to provide technical recommendations for updating the Electricity Supply Act (ESA) in Saint Vincent and the Grenadines. K&M reviewed the ESA, conducted several stakeholder consultations in Saint Vincent, and proposed updates to the ESA.

The objective of this consultancy is to support the World Bank through the provision of technical recommendations for the update of the existing Electricity Supply Act of 1973 (ESA) to enhance the energy sector’s capacity to achieve the GoSVG’s articulated national energy policy objectives. The recommendations reflect regional and global practices in energy sector governance and management, with a particular focus on creating an enabling legislative and regulatory framework for development of renewable energy and energy efficiency projects. As part of this assignment, K&M carried out a detailed review of the ESA, conducted several stakeholder consultations in Saint Vincent, and prepared a report with recommendations for updating the ESA.

K&M was contracted by the World Bank to work on an assignment that aims to review and update the status and progress of private sector participation in small hydropower development in the Kyrgyz Republic since 2017 (the “2017 Report”). This includes evaluating the legal and regulatory environment, actual project development, and identifying barriers to scale-up. The findings will help inform government policies, recommend actions to enhance private sector engagement, and assess how Development Finance Institutions such as the World Bank could support private sector participation in small hydropower project (“SHPP”) development.

The primary objectives of this Study are to (i) update the status and progress on private sector participation in the development of small hydropower in the Kyrgyz Republic since 2017, and (ii) based on such update and K&M’s assessment thereof, provide recommendations to overcome the barriers and challenges that small hydro development continues to face. K&M’s scope of work includes the following:

Review and assess the current legal, regulatory, and policy framework for private sector participation in SHPP and then compare the results against the recommendations included in the 2017 Report, including assessment of financial incentives, administrative procedures, social and environmental regulations, and mechanisms for data availability and stakeholder coordination.
Carry out a detailed review and analysis of SHPPs that have been implemented since 2016 with private sector participation.
Review and update pipeline projects for SHPP, including (i) review the Kyrgyz Republic project implementation pipeline, (ii) update the project inventory that was included in the 2017 Report, (iii) conduct an updated analysis of the economics for SHPP projects in the Kyrgyz Republic, (iv) identify and rank up to 5 projects that are best positioned for implementation in the short to medium term, and (v) conduct a more detailed assessment for the top one to two ranked projects.
Identify key barriers and challenges to private sector participation in SHPP projects
Hold a one-day knowledge sharing workshop for stakeholders in the Kyrgyz Republic

Funded by a USTDA grant, Rev-Up Solar Ventures engaged Bates White, who subcontracted K&M Advisors to support a feasibility study for the development of a 200 MW Solar PV + Battery Energy Storage System (BESS) power plant in Solwezi, Zambia. The project aims to supply clean, reliable electricity to Zambia’s industry and households and potentially power two critical mineral mines in the Democratic Republic of the Congo. This initiative addresses Zambia’s increasing energy demand and challenges in hydropower generation caused by climate change. The study will provide technical and financial recommendations to guide the project’s implementation, marking USTDA’s second BESS initiative in Zambia following a prior study in the Sesheke District.

K&M Advisors contributed extensively to the project by supporting the development of a detailed Work Plan, participating in the kick-off meeting and site visit in Zambia, and providing inputs for the Inception Report. K&M conducted a comprehensive Preliminary Grid Connection Study, assessed the project site, performed a Solar Resource and PV Yield Analysis, and developed the Battery Energy Storage Value Proposition with a Battery Dispatch Model and system sizing recommendations.

K&M reviewed Zambia’s regulatory framework, created a Regulatory Process Document, and prepared a Compliance Matrix to ensure regulatory alignment. The team provided strategic input on commercialization options for the project and completed the Project Preliminary Design Information along with a Full Grid Connection Study to evaluate technical integration into the national grid.

To support engineering design, K&M carried out topographical, geotechnical, and hydrological studies, including 10 borings to provide essential site data for EPC contractors. A thorough Technology Analysis of solar modules, inverters, battery storage systems, and trackers was completed, followed by the development of Basic Engineering Designs and Technical Specifications.

K&M developed a comprehensive financial model and provided detailed capital and O&M cost estimates to assess the project’s financial viability, utilizing commercial assumptions provided by Bates White. Additionally, K&M prepared a full Environmental and Social Impact Assessment (ESIA) for submission to ZEMA and identified potential U.S. manufacturers and suppliers for project equipment and services.

Lastly, K&M consolidated all findings into the project’s Final Report, covering all technical, financial, regulatory, and environmental aspects, ensuring a robust foundation for the successful development of the Solar PV + BESS power plant in Zambia.

The World Bank engaged K&M Advisors to assess the conceptual role and economic viability of Pumped Hydropower Storage (PHS) within the Southern African Power Pool (SAPP). The objective of the study was to identify and quantify the costs, benefits, and overall value of PHS in enhancing energy security, improving climate resilience, and supporting a low-carbon energy transition in the region. The findings from this assessment are intended to inform and guide policy decisions by SAPP member governments regarding the development and integration of PHS projects into their energy strategies. This effort supports the region’s broader goals of sustainable energy development and long-term reliability of power systems.

K&M Advisors executed a comprehensive analysis to evaluate the feasibility and strategic value of PHS in the SAPP region. The team began by conducting an extensive literature review of global and historical developments in PHS projects to understand best practices and technological advancements. Additionally, K&M reviewed Integrated Resource Plans (IRPs), power system development plans, recent power system modeling studies, and the SAPP Plan to assess the current and future energy landscape in the region.

To gain critical insights, K&M conducted stakeholder interviews with key SAPP utilities and institutions to identify regional energy challenges and opportunities where PHS could add value. The team evaluated how specific benefits of PHS, such as providing flexible energy services, supporting the integration of variable renewable energy (VRE) sources, improving energy security, and offering ancillary services, could directly address SAPP’s operational needs. Special attention was given to the interplay between PHS and VRE across diverse climate zones and weather dependencies in the region.

K&M also applied economic analysis principles and leveraged best practice modeling frameworks to assess the financial viability and value proposition of PHS projects. The final deliverable included clear conclusions on the role and economic viability of PHS within the SAPP markets, along with actionable policy and planning recommendations for member governments to facilitate informed decision-making on PHS development.

WEB contracted K&M to assist WEB in evaluating the feasibility of integrating Offshore Wind resources in Aruba. In this assignment, K&M is responsible for researching offshore wind design considerations, identifying offshore wind sitting and configurations viable for Aruba, and calculating the levelized cost of electricity (LCOE) of various offshore wind scenarios. Topics covered in the offshore wind design research include siting considerations (water depths, distance to shore, wind speeds, spacing, and shipping routes), substructure types, wind turbine sizing and transmission options, and estimated CAPEX and OPEX for key offshore wind components. Based on these factors, K&M will perform high-level sitting analysis for Aruba and develop cost estimates for wind farms of three sizes, including a discussion of the indicative BESS capacity that should be added to WEB’s grid to provide sufficient operating reserves for each scenario. Based on these results, K&M will estimate the LCOE generated by each offshore wind / BESS scenario. K&M shall deliver its findings in a PowerPoint presentation to WEB staff.

A private client contracted K&M to assist in evaluating the feasibility of integrating Offshore Wind resources in the Caribbean.

In this assignment, K&M is responsible for researching offshore wind design considerations, identifying offshore wind siting and configurations viable for the Caribbean, and calculating the levelized cost of electricity (LCOE) for various offshore wind scenarios. Topics covered in the offshore wind design research include siting considerations (water depths, distance to shore, wind speeds, spacing, and shipping routes), substructure types, wind turbine sizing, transmission options, and estimated CAPEX and OPEX for key offshore wind components. Based on these factors, K&M will perform a high-level siting analysis for the Caribbean and develop cost estimates for wind farms of three sizes, including a discussion of the indicative BESS capacity that should be added to the client’s grid to provide sufficient operating reserves for each scenario. Based on these results, K&M will estimate the LCOE generated by each offshore wind/BESS scenario. K&M will deliver its findings in a PowerPoint presentation to the client’s staff.

K&M was engaged by the U.S. Trade and Development Agency (USTDA) on a Definitional Mission (DM) to aid in decision-making processes related to funding activities that enhance the pipeline development for the Alliance for Green Infrastructure (AGIA) in sub-Saharan Africa. The mission is centered on identifying and evaluating potential green infrastructure projects in diverse sectors such as renewable energy, transport and logistics, water and sanitation, broadband and ICT infrastructure, health, and urban and rural infrastructure, for funding consideration by members of AGIA’s Project Preparation pillar, including USTDA and Africa50.

As part of this engagement, K&M’s responsibilities include conducting preliminary project analysis by identifying viable projects through collaboration with USTDA, Africa50/AGIA, and through outreach to key stakeholders, while also screening these projects based on USTDA and AGIA’s funding criteria, which include climate resilience. The team is also tasked with traveling to Africa50 headquarters and various host countries to close information gaps and engage with prospective project sponsors and stakeholders.

Further duties involve a detailed project analysis where K&M prioritizes and recommends projects that are best suited for USTDA and Africa50/AGIA funding. This includes preparing up to ten draft Project Reports, developing terms of references (TORs), project budgets, and task completion schedules. These reports are meticulously crafted to incorporate feedback from USTDA and Africa50/AGIA and finalized accordingly.

The culmination of K&M’s work is the preparation of a Final DM Report that aligns with USTDA’s requirements, encapsulating all the Project Reports. This comprehensive approach ensures that the mission not only aligns with the strategic objectives of AGIA but also significantly contributes to sustainable infrastructure development across sub-Saharan Africa, fostering global green growth initiatives.

CIFI has recently formalized a mandate agreement with Zenith Energy Corp. S.R.L. to provide financial advisory, structuring, and arranging services aimed at raising approximately US$105 million in senior debt. This financing is intended to support the construction and operation of a solar plant located in the Dominican Republic. As part of this initiative, K&M has been appointed by CIFI to conduct financial due diligence for the project, which involves a 101 MW Solar PV and a 25 MW Battery Energy Storage System (BESS) facility.

For this due diligence assignment, K&M will develop and manage a Financial Model that adheres to industry best practices, drawing on the firm’s extensive experience in financial modeling for non-recourse or limited recourse financings. This model will be designed to be detailed, functional, user-friendly, and specifically tailored to meet the needs of international project financing. Key components of the Financial Model include an income statement, balance sheet, and cash flow statement, alongside comprehensive financial projections. The model will also feature forecasts for critical financial metrics such as revenue, expenses, and profitability, and include a debt sizing mechanism based on the Debt Service Coverage Ratio (DSCR). Additionally, the model will provide sensitivity analysis to examine the effects of variable changes on financial outcomes and scenarios to explore various potential future conditions.