SUSWA PHASE I Tender

Last Updated 13 years ago by Kenya Engineer

SUSWA PHASE I Tender:DEVELOPMENT OF 300 MW GEOTHERMAL DEVELOPMENT, Closing Date:20/02/2014

CALL FOR EXPRESSIONS OF INTEREST
SUSWA PHASE I
DEVELOPMENT OF 300 MW GEOTHERMAL DEVELOPMENT
TENDER REF: GDC/HQS/EOI/044/2013:2014

1.   Introduction

GDC, a 100% state-owned corporation, tasked with accelerating the development of geothermal energy in Kenya, is undertaking geothermal development at Suswa Prospect. Detailed surface studies comprising of geology, geophysics, surface heat measurement, baseline environmental and social economic assessment estimates the field potential to be about 750 MW. The current project aims to realize about 300 MW between year 2016 and 2018.

2.   Project Development Plan

The estimated 300 MW Suswa Phase I Geothermal Project including the power plants construction is projected to be completed between 2016 and 2018. GDC jointly with the selected investors will develop the steam by drilling exploration, appraisal and production wells. The competitively selected investors will thereafter construct the power plants and generate power with the fuel mined from this prospect. A total of 120 wells will be drilled for this Phase.

3.   Project Status

The detailed surface study has been completed. The studies leading to ESIA license from National Environmental Management Authority (NEMA) relating to the resource development is in progress. Infrastructural development will start from July. 2014/15.

4.   Objective of Eol

GDC intends to engage investors/partners who will get the opportunity to jointly together with GDC develop the steam field and individually install the first three power plants each at least 100 MW at its Suswa Prospect.

5.   Investment Scope

5.1 GDC

Under this project, GDC will obtain all land rights, permits and undertake construction of the road network, drilling water reticulation system, drilling of exploration and appraisal wells to confirm presence of the resource. In addition, jointly with the selected partners, GDC will undertake all the remaining drilling works (production and re-injection), feasibility study(s) and construction of the necessary steam gathering and reinjection network. GDC’s investment will comprise a total of 20% to 40% of the required capital for this development phase or as may be agreed between the parties.

After power plants commissioning by the development partners, GDC will be responsible for reservoir management and the brine reinjection system.

5.2 Investors

The Investors, under a joint steam development contract, will finance between 60% and 80% of the require capital for the steam development in a manner to be spelled out in the detailed request for proposal to be issued to the shortlisted investors. The investors will recoup their investments through regular payments made from revenue generated through steam sales in a manner to be spelled out in the detailed request for proposal over a period of 20 years or any other agreed period.

Further, the Investors will finance, design, construct, operate and maintain the power plants.

While steam field is under development, the investor will have the opportunity to install wellhead generation units for early power generation. The Government of Kenya will not provide sovereign guarantees relating to this investment and therefore the investors should seek other alternatives such as MIGA (World Bank)

6.   Timeline

It is expected that the short listing will be completed by April, 2014 followed by request for detailed proposal. The Selection of preferred investors will be completed by December. 2014. The award to the preferred investors will be subject to the investor successfully negotiating a Power Purchase Agreement (PPA) with Kenya Power and Lighting Company Limited (power off taker), securing a generation license from the Energy Regulatory Commission and conclude financing within an agreed period by the parties.

A period of 24 – 36 months will be provided for power plant construction.

7.   Evaluation Criteria

Interested investors must provide information indicating that they are qualified to successfully undertake the envisioned development. Short listing of investor(s) will be based on the following:

i.   Capability to mobilize adequate financing for the power plant. The expected capital structure for the power plants is at least 25% equity and 75% debt. The interested investor(s)/consortia shall establish that they have the capability to raise at least US$ 400 million for the development of at least 100 MW supported by letters from credible financier(s).

ii.  Certified copies of audited annual reports for the last three years, articles and memorandum of association and certificate of incorporation will be required.

iii.Management/consultant/contractor experience in geothermal/thermal project implementation with at least one project of a size not less than 30 MW implemented in the last 10 years.

The investor will provide a list of the consultants/ contractors they propose to employ for the development including names of their lead project managers within their organizations, contractors and consultants. They will further submit names, location, current power plant(s) status and size of geothermal projects and other power generation projects undertaken by themselves, their proposed consultants and contractors in the last 10 years including indicative project costs.

iv.Declaration of all pending litigation(s) against the investor(s)/consortia which shall in total not represent more than 10%, (ten percent) of the investor(s)/consortia’s net worth.

Interested investors may request in writing for further information and clarifications on this matter at the following address during office hours:

Manager, Supply Chain

Geothermal Development Company Limited,

P.O. Box 100746 – 00101

NAIROBI,

KENYA

E-mail: asaat@gdc.co.ke and cc: pngugi@gdCjCo.ke

8.   Submission of Expressions of Interest

One (1) Original and two (2) Copies, of Expressions of Interest in English and in a sealed envelope, super-scribed “Expressions of Interest, – Suswa Phase I: Development of 300 MW Geothermal Power Plants” and bearing the address below, must be deposited in the Tender Box on the 2™’ Floor, GDC, Riverside Drive. Nairobi no later than I2:00hrs on February 20,2014.

The Managing Director & CEO,

Geothermal Development Company Limited,

P.O. Box 100746 – 00101

NAIROBI,

KENYA

GDC reserves the right to reject any or all Expressions of Interest without engaging any investor whatsoever. All late submissions will be rejected. Manager, Supply chain
Manager,Supply Chain