Utility Equipment Valuations and Appraisals

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• Otay Mesa Power Generation Project Appraisal - ERG was retained by Siemens Financial Services, Inc. to perform an "in-place, in-use" appraisal of the Otay Mesa Power Generation Project for financing purposes.
• Power for Honduras - ERG was retained by a major international bank to perform appraisals and site inspections of two Central American power plant expansion projects.
• Review of Lease Return Conditions - For RVI Group, Inc. ERG performed an independent review of and reccomended changes and additions to RVI's return conditions concerning electric power generating equipment and gas compression equipment.

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ERG was retained by Siemens Financial Services, Inc. (SFS) to perform an “in-place, in-use” appraisal of the Otay Mesa Power Generation Project for financing purposes. The project consists of a conventional “2 on 1" General Electric 7FA combined-cycle power generation project rated at 596 MW. In conjunction with this engagement, ERG prepared a proforma estimate of the project’s fair market value (FMV) based upon future market considerations for the sale of project output responsive to SFS’s corporate valuation criteria.

ERG was retained by a major international bank to perform appraisals and site inspections of two Central American power plant expansion projects. The two projects, which the bank was considering, involved the installation of additional low speed diesel engine generating units and associated auxiliary equipment at two existing sites in Northeastern and Southwestern Honduras.

ERG was retained to perform physical inspections of the project equipment and construction sites; conduct due diligence interviews with project development, construction, and plant operating staff; review project design documents and contracts; review proposed preventative maintenance programs; and perform Fair Market Value and Distress Value appraisals of the two projects.

When completed, these units will deliver power under contract to Empresa Nacional de Energia Electrica (ENEE) the national electric utility. The two installations consist of thirteen units totaling approximately 138 MW of capacity. Due to the asset-based structure of the financing, the bank was concerned regarding the allocation and use of common facilities and the ability of the local operations and maintenance staff to keep the equipment in good operating condition.

ERG's assessments enabled the bank to address its concerns in support of proceeding with the time sensitive asset-based financing of both projects. In addition, while on-site, ERG personnel provided advice and counsel to project staff regarding further development of the projects and future operation and maintenance considerations.