Power & Utilities
PFA has worked closely with power utilities and energy ministries in a number of capacities providing studies on increasing generating efficiency, providing reliable power exchange and generation savings, ensuring fair rates of return to operators and investors and providing advice about how best to raise funds in privatized markets.
PFA and Parsons Chemicals of Houston, Texas provided financial and economic expertise to the Bangladesh Government for the Western Region Integrated Project (WRIP). The WRIP comprises construction of a 24-inch natural gas pipeline, a production sharing gas field project as well as a number of captive natural gas fired power stations.
PFA, in partnership with Electrotek Concepts Inc. (Electrotek), of Arlington, VA, prepared a multi-disciplinary study for the Comité Maghrébin de l'Electricité (COMELEC) for a Feasibility Study concerning the reinforcement of the interconnection of the national electric grids of Algeria, Morocco and Tunisia. The Feasibility Study was financed by a grant from the United States Trade and Development Agency (USTDA).
PFA’s work entailed reviewing all project documents for legal and financial consistency and fairness and providing alternative guaranty and risk mitigation structures for Bangladesh’s Ministry of Energy and Mineral Resources (MEMR). PFA worked with its partner DLA Piper Gray Cary LLP to provide regulatory analysis and support.
PFA’s review for MEMR included a quantification of damages and penalties in underlying Power Purchase Agreements, Fuel Purchase Agreements and a Gas Transportation Agreement. PFA also provided analysis relating to determining political, financial and pricing risk among the parties and guaranteeing ministries of the government. PFA’s recommendations then focused on how to allocate those risks best among institutions, lending programs, insurance programs and parties best qualified to bear them. In so doing, PFA also recommended a transparent gas pipeline tariff that would result in a more fair allocation of risk between the developer of the project, UNOCAL, and the MEMR.