Due Diligence Studies
Empresa De Generation Electrica De Lima Due Diligence and Condition Assessment
Empresa de Generation de Lima (EDEGEL), located near the city of Lima, Peru, was
the generation business unit of the former Electrolima S.A. EDEGEL’s assets
consist of five hydroelectric and electrical maintenance facilities,
transmission and substation assets, a series of Andean and alpine storage
reservoirs, and various support and administrative appurtenances. The company’s
total installed generation capacity is approximately 693 MW. The five
hydroelectric stations, with a total of 540 MW of generation, are located east
of Lima along both the Rimac and Santa Eulalia Rivers. The thermal station, with
an installed capacity of 153 MW, is located in the city of Lima.
Devine Tarbell & Associates, Inc.’s (DTA) staff were retained by a prominent
international power developer to perform a due diligence and condition
assessment of the EDEGEL assets to be divested by the Peruvian government
through a national privatization effort.
DTA’s staff conducted on-site visits and technical assessment evaluation of
assets, reviewed project data and corporate records, interviewed EDEGEL staff,
developed a 20-year life cycle pro forma and risk mitigation analysis, performed
assessment and developed forward energy generation curves, conducted
environmental screening and evaluation and played an active role with the
ownership committee and investment bankers. Following field activities, DTA’s
staff published a comprehensive report of the findings, complete with projected
life cycle costs, revenue and risk analysis.