MINISTRY OF ENERGY & PETROLEUM Tender

Last Updated 13 years ago by Kenya Engineer

MINISTRY OF ENERGY & PETROLEUM Tender: EOI Development of 700-800MW Natural Gas Fired Combined Cycle Power Plant Including a Floating Storage & Re-Gasification Unit (FSRU) at Dongo Kundu,Mombasa County,in Kenya by Private Investors,Closing Date:22/10/2013

REPUBLIC OF KENYA
MINISTRY OF ENERGY AND PETROLEUM
EXPRESSION OF INTEREST(EOI)

FOR THE DEVELOPMENT OF A 700- 800MW NATURAL GAS FIRED COMBINED CYCLE POWER PLANT INCLUDING A FLOATING STORAGE AND RE-GASIFICATION UNIT (FSRU) AT DONGO KUNDU, MOMBASA COUNTY, IN KENYA BY PRIVATE INVESTORS

(in support of Kenya Vision 2030 Flagship Projects)                                                                      

1.0 General information

Power generation in Kenya has been liberalized since 1995 with Independent Power Producers contributing about a third of the country’s generation capacity which stands at 1,664 MW and which comprises: hydro 770MW, geothermal 241MW, thermal 622MW, co-generation 26MW and wind 5MW. The maximum recorded demand stands at about 1,410 MW while actual demand is estimated at 1,700 MW, depicting a shortfall of 536 MW after providing for a 30% reserve margin.

It is anticipated that electricity demand will rise sharply as new county governments take shape and numerous energy intensive economic activities get established in the counties such as mining, production of iron and steel, irrigation of large tracts of land, agro-based industries, operation of petroleum pipelines and petrochemical industries. The power demand is projected to reach 15,000MW by 2030 requiring the current capacity of 1,664MW to be raised to 18.000MW by 2030.

In order to provide electricity at competitive prices and address perennial capacity deficit which has persisted since 2006, the Government of Kenya (GOK) plans to raise the power generation capacity by 5.000MW by 2016. It is envisaged that this capacity which will comprise Natural Gas fired 1,050MW, Geothermal 1,646MW, Wind 630MW and CoaJ 1,920MW will be developed by private investors. In this regard, GOK through Government to Government negotiations will make arrangement to secure Liquefied Natural Gas (LNG) supply to achieve competitive power generation costs.

2.0 Project Description

The proposed project will be a 700- 800MW power plant to be located on a 300 acre parcel of land at Dongo Kundu or any other appropriate location between Mombasa and Kilifi. An FSRU of sufficient capacity is proposed to provide gas to the plant including the requisite infrastructure to supply gas to some of the existing Medium Speed Diesel plants with a total capacity of 350MW. The site would however require dredging to enable berthing of LNG cargoes of up to 85,000 MT. The dredging will be carried out under an arrangement to be agreed with the GOK.

Requisite transmission infrastructure will be developed by the GOK to evacuate power from the power plant.

3.0 Objectives of the EOI

The GOK, through the Ministry of Energy and Petroleum, is therefore seeking private investors with experience in design, financing, supply, construction, maintenance and operation of natural gas fired power plants and FSRU to express interest to implement the project under an Independent Power Producer (IPP) framework, as detailed hereunder;-

a)  Design, finance, procure, supply, construct, commission, operate, and maintain a 700-800MW Combined Cycle Power Plant at Dongo Kundu or a more suitable site as may be arranged by the investor between Mombasa and Kilifi;

b)  Design, finance, procure, supply, construct, commission, operate, and maintain an FSRU of sufficient capacity at Dongo Kundu or a more suitable site as may be arranged by the investor between Mombasa and Kilifi;

   c)  Import LNG under an arrangement to be agreed with the GOK;

d)  Construct requisite infrastructure to facilitate supply of gas to run the existing 350 MW HFO fired plants which will be converted to run on gas. The plants are located at Kipevu and Rabai;

e)  Construct a 400 kV switchyard at the power plant site for evacuating power from the plant and make provision for two fully equipped 400 kV bays where the two lines from Mariakani will be terminated; and,

f)  Carry out the necessary studies and implement requisite mitigation measures for the project to comply with applicable environmental laws and regulations.

The power to be generated from the power plant will be sold to Kenya Power and Lighting Company Limited (KPLC) under a contractual arrangement of a Power Purchase Agreement (PPA) framework.

The development will be based on a BOO (Build, Own and Operate) or BOOT (Build, Own, Operate and Transfer; whereby the transfer would be done after full amortization of the capital investment) framework.

4.0 Minimum requirements

Bidders must have a proven track record in design, financing, supply, construction, maintenance and operation of natural gas fired power plants and FRSU. In order to pre-qualify the interested bidders must meet the following requirements:

a)  Provide evidence of legal status of the bidder

b)  Financing Capability

 i.   Provide evidence of financing at least one power project with a total cost of at least US$ 1.0 billion;

      ii.   Demonstrate ability to raise funds of at least US$ 1.0 billion at competitive terms supported by letters from proposed Financiers for this EOI; and,

iii.  Have a strong balance sheet with minimum shareholders funds of at least US$500 million.

c)  Technical Experience

i.   Provide evidence of design, supply, construction and commissioning of a Natural Gas fired power plant with a minimum installed capacity of 500MW and that has reached commercial operation within the last ten (10) years;

ii.  Provide evidence of design, supply, construction and commissioning of an FSRU of a capacity as would be required under this EOI that has reached commercial operation within the last ten (10) years;

iii.  Provide evidence of Operation and Maintenance of a Natural Gas fired power plant with a minimum capacity of 500MW for at least five (5) years; and,

  iv.  Provide evidence of operation of an LNG handling facility.

5.0  Documents to be submitted

     a)  Certificate of incorporation (and any certificate of incorporation or change of name), certified by an authorized representative of the bidder or (as the case may be) the consortium member;

b)  Letters of reference from the off taker or regulator confirming requirements in 4.0 (b) and (c);

c)  Audited financial statements for the last 3 years;

d)  Letters of recommendation from its bankers and the energy regulator applicable to its jurisdiction;

e)  Certified copies of Memorandum / Articles of Association;

f)   Business certificate and copies of the current electricity generation licenses;

g)  List of infrastructure/LNGrrhermal Power/FSRU and/or LNG handling facility projects where the bidder has participated and the location of the projects in the last fifteen years and brief details of the project capacity, financing structure and duration of implementation;

h)  A list of LNG Power Plants and/or LNG handling facilities the bidder has experience in operating and maintaining;

i)    Where the bidder is a consortium, a list of the proposed members of the consortium; and,

j) Astatement on the activities and timelines for design, supply, construction and commissioning of the power plant and FSRU in this EOI; and,

k) Provide the company profile including background, organization structure, the key Management staff and the Technical team.

6.0 EOI Submission

Interested bidders are required to submit original and three (3) copies of the Expression of Interest in the English language and in a plain sealed envelope marked Expression of Interest for the Development of a 700-800 MW Natural Gas Fired Combined Cycle Power Plant Including a Floating Storage and Re-Gasification Unit (FSRU) at Dongo Kundu, Mombasa County, in Kenya by Private Investors and addressed to:

Principal Secretary,

Ministry of Energy and Petroleum,

P.O. Box 30582-00100,
NAIROBI-KENYA.
Tel: +254-20-310112
Fax: +254-20-240910

Email: ps@energymin.go.ke 

or

and be deposited in The Tender Box on 24th Floor, Nyayo House, Nairobi, so as to reach on or before 22nd October, 2013 at 10:00 Hrs East African time. The Expression of Interest documents will be opened immediately thereafter in the presence of bidders or their representatives who choose to attend the opening at Nyayo House, 23rd Floor Main Conference Room.

Late submissions will not be accepted.
This EOI is also available in the Ministry of Energy and Petroleum website www.energy.go.ke
HEAD OF SUPPLY CHAIN  MANAGEMENT SERVICES
For: PRINCIPAL  SECRETARY