MINISTRY OF ENERGY AND PETROLEUM Tender

Last Updated 13 years ago by Kenya Engineer

MINISTRY OF ENERGY AND PETROLEUM Tender:Development of one 900-1000mw Coal Power Plant at Lamu in Lamu 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 ONE 900-1000MW COAL POWER PLANT
AT LAMU IN LAMU COUNTY, IN KENYA BY PRIVATE INVESTORS

(In support of Kenya Vision 2030 Flagship Projects)

1.0 General information

The interconnected power system in Kenya has a total effective capacity of 1.664MW consisting of 770MW hydro, 241 MW geothermal, 622MW thermal, 26MW co-generation, and 5 MW wind. The recorded peak electricity demand which is considered suppressed Stands at 1.357MW, while the unsuppressed demand is estimated at 1,700MW, thus depicting a shortfall of 536MW after providing for a 30% reserve margin.

Kenya is currently implementing devolved system of Government consisting of the National Government and 47 County Governments. It is anticipated that electricity demand in the country will rise sharply as new County Governments take shape and numerous energy intensive economic activities spring up 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 petro chemical industries in line with the country’s economic blue print, the Kenya Vision 2030. The power demand is projected to reach 15.000MW by 2030, thus requiring the current capacity of 1,664 MW to be raised to 18.000MW in order to meet the demand.

Through a fast tracked power generation programme, the Government of Kenya will increase generation capacity by over 5.000MW in 40 months. The Government has identified coal as one of the sources of energy that will drive the development of strategic initiatives in the Vjsion 2030. The Government, through the Ministry of Energy and Petroleum, is planning to have various coal fired power plants developed by private investors. Key elements in the programme will include construction of two new coal power generation plants of 900-1000MW each at Lamu and in Mui Basin, Kitui County, within a period of thirty (30) months and forty (40) months from 1st September, 2013, respectively. The Lamu power plant will use imported coal, while the Kitui power plant will use coal from Mui Basin. Power generated from both power plants will be sold to the Kenya Power & Lighting Company Limited (KPLC) under long term Power Purchase Agreements (PPA) framework. This EOI will focus on the Lamu project. The Kitui Power Plant will be advertised later.

2.0 The Lamu project

The location of the Lamu power plant will be along the Indian Ocean coastline of Kenya in Lamu County. The project may also be located in any other appropriate location. The Government will acquire the land for the project and, through the Kenya Electricity Transmission Company (KETRACO), develop a 400 kV transmission line to evacuate power from the power plant.

The investor will be required to:

•   Finance, design, construct, own, maintain and operate the power plant;

•   Finance, design, construct, own, maintain and s~   operate coal handling facilities for the plant,

including a jetty and associated infrastructure;

•   Import coal for the plant under an agreed arrangement with the Government;

•   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

•   Carry out the necessary studies and implement requisite mitigation measures for the project to comply with applicable environmental laws and regulations.
3.0 Objectives of the EOI

The Government of Kenya, through the Ministry of Energy and Petroleum, is seeking private investors to develop the:

900-1000MW Lamu coal fired power plant, under an Independent Power Producer (IPP) framework.

The Ministry of Energy and Petroleum now invites private investors with experience in coal fired power plants to express interest in developing the power plant and sell power to KPLC under a contractual arrangement of a PPA (Power Purchase Agreement) framework.

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

Applicants must have a proven track record in design, financing, construction, maintenance and operation of coal fired power plants and electricity generation facilities. In order to be pre-qualified, interested bidders must meet the following requirements:

a)     Provide evidence of legal status of the applicant

b)     Financing

i.     Provide evidence of financing at least one power plant project with a total cost of a minimum 500 million US Dollars; and,

ii.    Demonstrate ability to raise funds or at least 1 billion US Dollars at competitive terms supported by letters from Financiers for this EOI.

c)     Technical Experience

i.     Provide evidence of design and construction of at least one coal fired power plant with a minimum capacity of 600MW that has reached commercial operation within the last ten (10) years.

ii.    Provide evidence of Operation and Maintenance of at least one coal fired power plant with a minimum capacity of 450MW for a minimum period of five (5) years. .

iii.   Provide evidence of operation of the coal handling facility.

d)     Have a strong balance sheet with minimum shareholders funds of US$ 500 million;

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 the applicants bankers and the energy regulator applicable to its jurisdiction;

e)     Certified copies of Memorandum / Articles of Association;

f)      Business certificate and copies of current electricity generation licence(s);

g)     List of infrastructure projects where the applicant has participated, with the location, in the last five (5) years and with brief details of the project capacity, financing structure and duration of implementation;

h)     Where the Applicant is a consortium, a list of the proposed members of the consortium; and,

i)     A statement on the activities and timelines for
design, construction and commissioning of the
power plant in this EOI.

6.0 EOI Submission

Interested applicants are required to submit original and three (3) copies, as well as an electronic copy, of the Expression of Interest in English language and in a plain sealed envelope marked Expression of Interest for the Development of One 900-1000 MW Coal Power Plant at Lamu, Lamu County, 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@enerqymin.qo.ke

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 applicants s 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
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