The Kenya Electricity Generating Company PLC (KenGen) is inviting expressions of interest to conduct a feasibility study for:
- Development and operation of infrastructure for importation, storage, and regasification of liquefied natural gas (LNG) for power generation in Kenya;
- Conversion of the existing Heavy Fuel Oil (HFO) to operate on natural gas;
- Development of a new natural gas power plant;
- Operations and Maintenance (O&M) of the natural Gas infrastructure for a period of 20 years.
The Government of Kenya (GOK) wants to create a domestic natural gas market for power generation and industrial use. The gas is to be imported as government progresses with the development of the domestic gas resource.
The introduction of gas for power generation is to diversify the country’s energy mix, to increase the security of supply, reduce the cost of electricity and reduce the greenhouse gas emissions as per 2015 Paris Global Climate Change Agreement which the East African country is a signatory.
Interested firms are to submit request for clarification on the pre-qualification 10 days before the pre-qualification submissions date. The deadline for receipt of expressions of interest is Monday, 30th November 2020 at 10″00 hours, East African Time.
The scope of the project consists of the following but not limited to:
- Project feasibility assessment
- Site selection and site investigations
- Gas sourcing, pricing and importation logistics
- Technical and commercial options analysis
- Market Study to estimate potential gas requirements and uses
- Project due diligence
- Economic and Social benefit analysis (ECSBA)
- Financial viability and affordability assessment
- Value for money assessment
- Legal due diligence
- Site due diligence
- Public sector comparator assessment that is, carry out an estimate of the total costs to the government of achieving the targeted outputs if the project is undertaken through the normal project development as opposed to a PPP Process.
- Environmental and disaster risk assessment
- Environmental and social impact assessment
- Procurement options, and if PPP option is recommended, PPP structure analysis
- Options development, evaluation, and selection
- Risk allocation framework and preparation of heads of terms for project contracts
- Project cost estimate, financial analysis, and determination of key financial parameters- NPV, FIRR, EIRR, LCOE, financial models and market sounding
- Summary of recommendations, Implementation plan and feasibility study report
- Determine viability of development of a proposed new plant running on natural gas, should it be required.
- Grid interconnection study for new natural gas fired power plant.
- Preparation of concept design and bidding documents for a competitive procurement process, if the project is deemed feasible.
- If the project is deemed to be appropriate for procurement as a PPP option, preparation of the bidding documents including RfQ, RfP and all the associated agreements
More details on the tender can be found here
