Electric Sector Restructuring and Modernization Program, Ecuador

  • K&M has submitted draft legislation, detailed analyses and various reports which outline options for restructuring and modernizing the electric sector to the Government of Ecuador. These analyses and reports investigate and provide substantial detail on the current energy sector while also indicating the best means of improving the entire framework of the sector, and the value of various assets prior to sale and clearly identify the legal and regulatory changes necessary to promote private sector participation.
  • K&M’s analysis considered the political, technical and financial constraints associated with the restructuring objectives and preparation of a financial and tariff model to support the evaluation of the restructuring alternatives and the selected option.

  • Review of the demand study and expansion plan.
  • Drafting and development of a regulatory structure for the operation of the electricity sector.
  • A commercial valuation of the system.
  • Identification of the new business entities.
  • Tendering documents for their subsequent capitalization.
  • Development of guarantee policies governing public sector and private sector relationships including regulations dictating the rights and duties of electricity service providers and customers in the electric sector generation, transmission and distribution industries.
  • K&M is also conducting technical, financial and commercial evaluations of the sector to assist the Government of Ecuador to value and reassign existing assets into commercially viable units for asset sell-off capable of attracting investors, operators, and private financing to the sector.