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Financial Analysis and Tariff Increase Review to Enable Strategic Investment Planning under Sedapal’s Optimized Master Plan (2027–2031)

The International Finance Corporation (IFC) contracted K&M to support Sedapal, the water and sanitation utility responsible for providing service in Lima, in preparing a single, coherent, and financially viable investment plan for the 2027–2031 regulatory period. This plan will form part of Sedapal’s PMO and serve as the basis for its tariff-setting application to SUNASS.  In this assignment, K&M: (i) consolidated and validated all relevant information required for the tariff application, including regulatory parameters, financial statements, operational indicators, and project portfolios; (ii) updated and refined Sedapal’s financial planning model to evaluate investment affordability, cash availability, and financing requirements; (iii) assessed investment scenarios, incorporating SUNASS tariff rules, Sedapal’s proposed project pipeline, and feasible financing strategies; (iv) is preparing a prioritized and executable investment plan that SEDAPAL can both finance and implement within the regulatory period; (v) is preparing tariff sensitivity analyses to ensure the investment plan aligns with potential tariff paths generated through SEDAPAL’s own tariff model; and (vi) supported Sedapal in preparing the PMO input for submission to SUNASS, ensuring regulatory alignment and internal institutional ownership.

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The Caribbean Community Climate Change Centre (CCCCC) contracted K&M, with funding from The World Bank, to structure and provide support on procuring a modernization contract (MC) for the Barbados Water Authority (BWA). In this assignment, K&M: (i) reviewed, refined, and finalized the Terms of Reference (TORs) for the MC to ensure alignment with World Bank standards, BWA operational requirements, and regional water sector reform priorities; (ii) engaged closely with BWA management and staff to ensure broad-based buy-in and technical validation of the MC framework; (iii) is conducting market sounding to identify qualified potential contractors, assess market capacity and interest, and identify potential implementation challenges and opportunities; (iv) is developing a comprehensive contract structure incorporating performance-based elements, KPIs, risk allocation mechanisms, and governance frameworks that incentivize results and accountability; and (v) will provide technical advisory support to BWA’s procurement team in the preparation of bidding documents that comply with the relevant procurement guidelines and attract qualified bidders. 1535

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IDB Invest contracted K&M to identify water and sanitation utilities in the Amazonia region of Bolivia, Brazil, Colombia, Guyana, Ecuador, Peru, and Suriname that could be good candidates for private investment. K&M evaluated and prioritized water and sanitation utilities across the Amazon Basin to assess their readiness for private sector participation for improving service delivery. In this assignment, K&M: (i) Conducted a diagnostic of operational performance, including water consumption trends, treatment capacity and quality, and infrastructure condition, alongside corporate governance frameworks, legal structures and underlying national / subnational regulations; (ii) Assessed the development of PPP initiatives and enabling frameworks supporting private participation; (iii) Segmented and classified utilities according to their readiness for private sector investment versus those requiring preparatory public-sector support; (iv) Identified key enabling regulatory and institutional enablers for private investment in each country; and (v) Is producing a strategic prioritization and roadmap for IDB Invest’s upstream business development, identifying potential interventions and technical assistance pathways.

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As part of CAF’s development of its country strategy for Costa Rica, it contracted K&M, with Mr. Janson as the Project Director, to prepare the Infrastructure Regulatory and Sectoral Analysis Report (Documento de Análisis Regulatorio y Económico Sectorial) for Costa Rica. 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 that were assessed are water and sanitation, energy (including conventional generation, renewable energy, transmission, and distribution), transport (including roads, ports, and airports), logistics, and information, technology and communications. For this assessment, Mr. Janson interviewed, among others, authorities of the Ministry of Finance, Ministry of National Planning and Economic Policy, the Instituto Costarricense de Electricidad, the Instituto Costarricense de Acueductos y Alcantarillados, the Superintendencia de Telecomunicaciones, the Autoridad Reguladora de los Servicios Públicos, and the Consejo Nacional de Vialidad. 1531

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IFC contracted K&M to design a financial modeling tool that will be effective for IFC’s evaluation of transmission infrastructure projects in Africa.

K&M drafted a financial model template including value for money calculations against a public comparator, considering qualitative parameters and risk values. K&M then populated the template using two project examples prepared by IFC. K&M validated the results and updated the model based on scenario outputs and sensitivity testing and ensured that the model is working for the purposes of the two projects provided by IFC. After delivering the updated model, K&M presented the model scenarios and results and provided a walk-through of the model.

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