BACKGROUND
Power
project financing, power sector reform, power project development, renewable
energy, financial structuring, business and risk analysis, computer financial
modeling, and equity placement, implementing joint ventures for power projects.
Mr.
Potash has 23 years experience financing independent power projects all around
the world. He completed more than $1 billion of power project financing in six
countries, most of it renewable energy such as solar, wind, and small
hydroelectric projects. Also, Mr. Potash financed power projects using gas and
coal, incorporating new, state-of-the-art environmental methods such as
fluidized bed combustion and the first selective catalytic converters in
gas-turbines. He has accomplished financing using multi-lateral institutions
including the World Bank, the International Finance Corporation, and the
European Bank for Reconstruction and Development. Mr. Potash has consulted and
taught classes regarding power project financing at the US Agency for
International Development, the US Trade Development Agency, the US Export Import
Bank, the California Energy Commission, and the California Public Service
Commission.
EDUCATION and
MEMBERSHIPS
·
Columbia
University, B.S., Industrial Engineering, 1977
·
Columbia
University, MBA, Finance and Marketing, 1979
·
NASD Series
7; Former Director Northern California Cogeneration Association and Power
Association of Northern California
·
Member, San Anselmo
Chamber of Commerce
PROFESSIONAL
EXPERIENCE
Deloitte Touche Tohamatsu, Emerging Markets Group, Washington, DC
Conducted the following international missions for Deloitte Touche Emerging
Markets Group.
·
India
– Resident Project Director of World Bank-funded advisory project for Government
of Karantaka, India on privatization of a 4,000 MW, 10
million-customer power distribution system. Managed team of 25 consultants
in Consortium that included Deloitte Touche, N.M. Rothschild, Cameron McKenna,
Energy Supply Board of Ireland, and Tata Consulting Engineers. Responsible for
timely delivery of strategies and tactical advice affecting any aspect of the
privatization. Responsible for complex scheduling and integration of financial
advice with existing and proposed legislation, and compliance with regulatory
regime.
·
Moldova –
Resident
Advisor, Chief of Party, of USAID-funded program to advise Government of Moldova
on privatizing power distribution companies and generation plants,
including developing financing options and power sector reform and
restructuring. Managed the tender for investment bank per World Bank selection
guidelines, including making evaluation criteria and scoring methodology.
Coordinated donor assistance amongst USAID, World Bank, EBRD, and TACIS.
Advised Government on debt financing proposed by EBRD. Closed on sale of 100%
of the equity of three distribution companies to Union Fenosa of Spain in
February, 2000. EBRD and IFC debt financing closed in September 2001. Lived in
Moldova for 2 years and learned Moldovan language.
·
Ukraine –
For Deloitte,
advised Government of Ukraine in similar role as in Moldova, privatizing power
distribution companies. Provided State Property Fund with detailed terms of
reference for investment bank role in privatization, scheduling transaction
steps, and advised on selection criteria and scoring. Assisted in hiring an
investment bank and helped the Ukranian government manage the tender for sale of
the companies.
Managing Partner, Power Project Financing, San Anselmo, California
Founded and led independent consultancy to help IPP developers shape projects to
enable financing, to locate joint venture partners, and to conduct feasibility
studies for power projects.
·
Southern
Europe and elsewhere
- In 2000 and 2001, advised on wind and energy-efficiency projects that
received equity funding commitments for projects in Turkey, Greece, Hawaii,
and Mexico. Recent assignments (2002) were providing classes in project
financial modeling for U.S. Export Import Bank, teaching complex integrated
financial modeling for energy projects, covering risk analysis, sensitivity,
capital costs, tariff build-up, taxes, depreciation, and financing
alternatives. Also in 2002 (to run to 2003), Prime Contractor consultant
to California Energy Commission on financing of international projects of
renewable energy and energy efficiency.
·
Nigeria
TDA DM - In
2000, advised on power sector projects and privatization strategy in Nigeria for
a private developer and for the US Trade Development Agency. As Prime
Contractor for Definitional Mission, conducted pre-feasibility studies on power
sector business opportunities in Nigeria for U.S. companies. Also advised
London-based developer of several IPP projects in Nigeria, providing key
contracts for power sales, gas supply, and implementation agreement (relating to
Government guarantees).
·
Power
Related Financial Advisory Assignments
- Bid and won contracts for financial advisory
assignments and project feasibility assignments with Scott Paper Company, United
Air Lines, Wellhead Electric Company, Coca-Cola Bottling Philippines, U.S. Trade
and Development Agency, and the California Energy Commission. Served as Prime
Contractor six times. Served as financing expert witness in cases involving
Bonneville Power Administration, Ford Motor Credit, and Pacific Gas &
Electric.
·
China -
Closed on four
China JVs: with Nations Energy (subsidiary of Tucson Electric Power), Hawaii
Electric, and Babcock and Wilcox. Advised on terms of the development agreement
(corporate governance document), project economic structuring, financing
options, and exit strategy. Projects involved integrating Chinese legal and
regulatory requirements with the risk mitigation needs of Western investors,
amongst many other intellectually intricate and cross-cultural issues.
·
California -
For Wellhead Electric Company of Sacramento, managed tender for refinancing of
three small cogeneration power plants developed pursuant to Standard Offer
contracts with PG&E. Solicited 60 financing companies, received four proposals,
advised on economic and financial structure, assisted in negotiating term sheets
and closed on $22 million financing. Now advising on several gas and coal
projects in the Western States Coordinating Council, in the post-deregulation,
post-Enron environment.
·
International Hydro Projects
- Advising a French company on
acquiring and developing small hydro projects world-wide. Most recent project
was 25 MW run-of-the-river project in Bulgaria. For other clients, analyzed
small hydro projects in Georgia, Armenia, Austria, Nicaragua, Honduras, Ecuador,
and Philippines.
Marin Power Ventures, Tiburon, California
Senior Financial Consultant with power development group working on power
projects in the Western U.S. Projects include:
Cogeneration
250-MW gas-fired project at Port of Tacoma
500-MW gas-fired
project
Solar 50 MW Solar-enhanced
gas-fired peaker, New Mexico
Wind 50 MW project,
Blackfeet Tribe, Browning, Montana
100 MW wind component to North Dakota gas project
Hydroelectric
900 MW Re-licensing with Yakima Tribe, Washington
100 MW Amended license, Confidential PUD
20 MW Acquisition, Warm Springs Tribe, Oregon
Vice President, Cogeneration Capital Associates, Richmond, California
Provided financial placement, advisory, and analytical services on $850 million
of power projects and corporate financing, mostly involving renewable energy.
The corporate financing involved cutting-edge tax technology. Mr. Potash
provided structuring advice, investment solicitation and closing, and elaborate
financial modeling. Closed financing included:
Cogeneration
$96 million Port of Stockton 44-MW coal fired
$100 million Basic American Foods 118-MW
Solar $62 million SEGS I
15-MW Solar-thermal
$96 million SEGS II 30-MW Solar-thermal
$101 million SEGS III 30-MW Solar-thermal
$103 million SEGS IV 30-MW Solar-thermal
$120 million SEGS V 30-MW Solar-thermal
Wind $2.2 million San
Gorgonio Wind Associates IV
$3.2 million San Gorgonio Wind Associates V
$12 million Altech II Limited Partnership
Biomass $27 million Feather River
Project, Energy Factors
Hydroelectric
$18 million Haypress Creek 18 MW
Corporate Finance $140 million tax benefit
transfer lease unwind
The
above-noted power projects done at CCA were accomplished using long-term power
purchase agreements between the projects and integrated public utilities.
This methodology was, for a time, considered the best model for international
independent power (Rockport, Hub River, Paiton). Also, Mr. Potash developed
risk approaches using insurance and subordinated debt to deal with risk of new
technologies such as wind and solar-thermal.
Managing Director, Abrahamsen & Company,
Hoboken, New Jersey
Co-founded Abrahamsen & Company, a specialty financial software and consulting
firm serving more than 60 New York investment banks, commercial banks, law
firms, and institutional investors. Worked on several project financing
transactions, including a coal port facility in Staten Island, New York
(1983), a windmill project in Hawaii (1983), a coal slurry pipeline (1982).
Abrahamsen & Company was acquired by the Securities Data Corporation in 1984.
First Boston Corporation, New York, NY.
In
corporate financial department responsible for financial analysis and computer
modeling for corporate finance, mergers and acquisitions, and project finance.
International projects were:
·
Australian
coal mine for CRA Industries (1980)
·
Aluminum
smelter for Fletcher Challenge Ltd. in New Zealand(1981)
·
Nuclear
power plant for Atomic Energy of Canada Ltd. (1980)
·
Steel
factory for Iron and Steel Company of Trinidad and Tobago (1981).
·
Conventional
utility financing for Hydro-Quebec(1982)
Selected
Presentations and PublicatiONS
- McGraw-Hill
New Orleans Market Conference, 1992
-
Infocast Project Financing Conference, San Francisco, 1993
-
Mexico City Conference on Cogeneration Development and Finance, AHORRA,
1994
- Financing
Renewable Energy Conference, Washington, 1995
- Power-Gen Asia
‘96 in New Delhi, 1996
- Financing
Readiness, San Francisco, 1997
-
Developing and Financing International Energy Projects, Washington, DC,
1998
-
Global Energy Futures, Las Vegas, 1998
-
Privatization of Electric Power Distribution, London, 1999
-
Power Sector Privatization in Moldova, CEEPIF, Prague, 2000
-
Privatization Options for Indian Distribution Companies, Karantaka 2001
-
Power Plant Rehabilitation in Europe, Amsterdam, 2001
-
Project Finance Modeling (private) for U.S. Export Import Bank, 2002
Published more than 30 articles about financing power projects in Infrastructure
Finance, Privatization Yearbook, World Cogeneration, Private Power Executive,
Independent Energy Magazine, and European Power News. Data and comments on
securities offering statistics were quoted in Corporate Financing Week, Wall
Street Journal, New York Times, Forbes, Fortune, Business Week, and
Institutional Investor.
