- Advised a consortium of major energy companies on potential bid for capitalizing a special purpose vehicle through which a state-owned power generating company was to be restructured. We advised on: (i) labor cost of transferring that company’s personnel to the projected SPV; (ii) a voluntary retirement package; and (iii) taxation risks conveyed by the overall transaction. The consortium did not bid.
- Performed a comprehensive due diligence of eight state-owned power distributors on the Colombian Caribbean coast and of their holding company to assess risk in bidding to capitalize two SPVs to which those distributors’ assets and obligations were transferred as part of a regional restructuring program. We examined the bidding terms and counseled negotiations with possible co-bidders. The client opted not to bid based on our risk assessments (power losses, labor liabilities, and tariff insufficiency). Such risks remained and were the basis for two further bids opened by the majority shareholders for the majority interest in those same SPVs. We again did the due diligence and TOR study for the first bid, having reiterated the initial risk analysis. Our client did not tender.The original structure we advised against was finally replaced in 2020 by the granting of power distribution on the Colombian Caribbean region to two new state-leveraged utilities which are yet enduring similar problems.
- Advised and represented a temporary union of major energy companies for successfully bidding for purchase of a 500 MW hydroelectric generation facility through a privatization process by the Colombian government.
- Advised and represented a temporary union of major energy companies to bid unsuccessfully for purchasing a 1,000 MW hydroelectric generation facility through a privatization process by the Colombian government.
- Analysis of terms of reference and due diligence for potential bid by client for capitalization of a new state-owned Caribbean Coast energy generation and trading company. The due diligence included assessing legal risks of main power sales contracts involving 1500 MW generating capacity. The client chose not to bid so that the projected company was not incorporated.
- Advised and represented our client’s consortium for: (i) submitting a successful bid to a regional power distributor for financing, construction, operation and ownership of a 230MW combined cycle gas/vapor power generation plant; (ii) negotiated and executed a power purchase agreement (PPA) with the condition precedent that a gas supply contract acceptable to the consortium be attained, that having failed notwithstanding the consortium’s best efforts; and, (iii) negotiation of an amicable PPA termination agreement with waiver of the performance guarantee.
- Advised and represented a leading energy infrastructure civil works contractor for the submission of a successful bid through a temporary union with a world leading power generator for a turnkey contract with a municipal utility for three combined cycle 450 MW generation plants. The project was executed.
- Advised the minority shareholder in a company that owns a 230MW thermal power plant on whether to accept an offer made by the majority shareholder to sell its shares to the remaining shareholders (our client and a municipal residential utility company) or to tag on to the sale offer. The decision on our advice was to buy considering advantageous regulation on the thermal plant permanent availability charge in the Colombian energy market. We negotiated the assignment’s conditions until the deal successfully closed between all parties.
Power Utilities
Categorías:
Related Post
Natural Gas UtilitiesNatural Gas Utilities
Advised a foreign national state’s exports promotion bank for two successive loans to Colombia’s main natural gas transporter to finance the consummated expansion of main trunklines by building 20” loops