Nigerian Petroleum Corporation (NNPC)- Request For Pre-qualification Of Companies For The Rehabilitation Of NNPC Downstream Critical Pipelines And Associated Depots/Terminal Infrastructure Through Finance, Build, Operate And Transfer (BOT) Model

THE NIGERIAN NATIONAL PETROLEUM CORPORATION (NNPC)
NNPC TOWERS, HERBERT MACAULAY WAY, P.M.B. 190, GARKI-ABUJA, NIGERIA
IN COMPLIANCE WITH THE GUIDELINES OF THE INFRASTRUCTURE CONCESSION REGULATORY COMMISSION (ICRC) ESTABLISHMENT ACT 2005 HEREBY
WISHES TO ADVERTISE:
REQUEST FOR PRE-QUALIFICATION OF COMPANIES FOR THE REHABILITATION OF NNPC DOWNSTREAM CRITICAL PIPELINES AND ASSOCIATED DEPOTS/TERMINAL INFRASTRUCTURE THROUGH FINANCE, BUILD, OPERATE AND TRANSFER (BOT) MODEL
DEADLINE: 18TH SEPTEMBER, 2020

1. BACKGROUND AND INFORMATION
NNPC’S pipeline and Depot network is an integral national asset, the operations of which started in 1979 by the deturnct Pipelines and Products Marketing Sector (PPMS). The organization was later renamed Pipelines and Products
Marketing Company (PPMC) in 1988

NNPC Management however, with the support of the Federal Government, unbunded to allow PPMC o arnang others, have separate entities overseeing the crude and product pipelines and storage network. The restructuring of PPMC in 2018 gave rise to the creation of Ngerian Pipelines and Storage
Company (NFPSC), which is charged with the responsibility for operations and maintenance of NNPC’S pipeline and depot facilities

By Its design, the pipeline network is to move efficiently crude oil from terminals located at Escravos and Bonny to Warri Refining and Petrochemical Company (WRPC) and Port-Harcourt Refining Company (PHRC), respectively. Thereafter, refined petroleum products-Premium Motor Spirit (PMS), Dual Purpose Kerosene (DPK) and Automotive Gasoline Oil (AGO) are moved from the Refineries to the product Depots for truck Out

Imported or Local Crude oil is supplied to Kaduna Refinery and Petrochemical Company (KRPC) via the pipeline from Escravos Terminal via WRPC and may also be discharged from vessels at Warri Jetty Into WAPC anks tior onward
pgping to KRPC. Ta rmeet any witrite product supply shortfall, imposed petroleum products are received into Atlas Cove Depot tanks via pipeline from the Single Point Mooring (5PM) facility offshore and/ar the New Atlas Cove Jetty (NACJ) for onward distribution inland.

Over the years, the pipeline network has suffered incessant unauthorized interference. This is one of the strangest drivers for the introduction of Horizontal Directional Drilling (HDD) to the Scope of the Project. The new pipelines will have Intrusion Detection and Cathodic Protection Systems to complement the deep burial. In addition, these facilities have aged over for
years giving rise to frequent failures and consequent operational downtimes, high maintenance cost and revenue losses. These and other factors convinced NNPC/NPSC to make the strategic decision to carry out Replacement of its Pipelines and Rehabilitation/Upgrade of its Depots to enhance performance excellent.

The rehabilitation and/or construction of crude oil and petroleum product pipelines and the upgrade of petroleum product storage Depots operated by NPSC (The Project) together with certain ancillary infrastructure directly associated with the efficient operations of the pipaines and Depots. These include jetties, booster stations, pumps control systems, measuring systems, truck loading systems, electrical instrumentation equipment, together with the pipelines and Depots herein collectively referred to as “NPSC Pipeline and Depot Facilities” are to be rehabilitated, upgraded or replaced through a Build Operate and Transtar (B0T)
model,

Aside from system 28 (Atlas Cave-Mosimi-Ibadan-Ilorin pipeline system), the effective operation of NPSC’s Pipelines and Depots infrastructure are tied to the proper functioning of the Refinaries. The rehabilitation and upgrade of NNPC’s Refinaries is being separately financed.

2. NPSC’s OBJECTIVE
NNPC/NPSC plans to select a duly qualified limited liability Project Company(s) and execute on back-to-back terms, where the investor is expected to finance the project and recover their cost through Pipelines and Depot throughout
tariff, through a Build, Operate and Transfer (BOT) arrangement.

The tender will be conducted through an open competitive process in accordance with the Scope of Work as defined below.

NNPC/NPSC therefore invites suitably qualified, experienced and reputable prospective Project Companies to submit Requests for Pre-qualification.

3. BRIEF DESCRIPTION OF THE SCOPE OF WORK
The rehabilitation and/or construction of crude oil and petroleum product pipelines and the upgrade of petroleum product storage Depots scope of work shall cover but not limited to:
i) Engineering, Procurement, Construction Installation, Testing. Commissioning and Training (EPC);
ii) Funding the entire Project cost including the EPCI; and
iii) Operation of the revamped facilities over a defined period to allow for full recovery of cost and agreed compensation

NNPC/NPSC have already executed a Geotechnical and Geophysical survey of the PROWS, followed by Front End Engineering Design (FEED) in line with critical need to charge the vulnerability and obsolescence of the assets. This
will be available to Successfully pre-qualified companies to prepare the detailed engineering and cost estimates.

The following shall form part but not limited to the scope of
work to be executed:

INSTALLATION OF NEW PIPELINES
1. Pipeline Right of Way (PROW) Confirmatory Survey
2 Environmental Impact Assessment
3. Engineering & Management-Project Management  -Engineering & Design
-Procurement, Expediting
-Field Engineering
4. Construction Management
-Materials Control
-QA/OC
5. Material & Equipment
-Line Pipe
-Main Line Valves
-Intrusion Detection
-L&Rs
-Pumps
-Cathodic Protection
-Miscellaneous6. Construction
-Security
-Pipeline Construction
-HDD
-Pump Station Construction
-Miscellaneous 
7. Partial Preliminary Survey, Construction & As-Built Survey
8 Freight
9.Commissioning

UPGRADE OF DEPOTS/BONNY EXPORT TERMINAL (BET)
1. Equipment & Materials
2 Tanks Rehabilitation/ Reconstruction
3 Mainline Pumps / Drivers
4 Heat Exchangers for LPFO (BET)
5. Truck Loading Pumps
6. Truck Loading Arms
7. Marine Loading Pumps (BET)
8. Marine Loading Arms (BET)
9. Piping. Pig Launchers, Valves & Fittings
10. Offshore platforms (BET)
11. Helpad (BET)
12. Cathodic protection system
13. CiviWorks
14. Electrical Works /Lightıng
15. Mechanical works
16. Metering Skids & Prover
17. Instrumentation
18. Control systems
19. Systems integration and Automation
20. Control Room Rehabilitation/ Reconstruction
21. Engineering Studies (Process, Civil, Mechanical, I&E,
Geotechnical, etc)
22. Detailed Engineering Design
23. Construction Management
24 Supply Chain Management
25. Inspection
26. Mobilization/Demobilization/Clean-up
27. Testing and Commissioning

The Rehabilitation of the pipelines and associated Depots/Terminal Infrastructure will be through Finance, Build Operate and Transfer (B0T) model and will be awarded on a LOT basis. A company is allowed to express interest in a maximum of two (2) LOTS. However multiple bid winners will be awarded only one (1) LOT where they are most competitive. Prospective Companies will therefore be required to submit as part of the Pre-qualification documents indicating the LOT(s) of their interest The LOTS are categorized as follows:

4. WHO MAY SUBMIT PRE-QUALIFICATION DOCUMENTS
A. Reputable Engineering, Procurement and Construction (EPC) companies with capacity to raise the entire financing required for the Project
B. Financial Institutions with technical partners that have proven capacity to execute Project
C. Companies who own and/or operate downstream infrastructure facilities such as crude oil and/or petroleum products pipelines and storage assets
anywhere in the world with proven capacity to fund and execute Project
D. Consortium made up of entities in the above.

5. PRE-QUALIFICATION REQUIREMENTS:
The pre-qualification requirements are divided into two parts. Part A is for companies to provide their company profile. Part 8 is tor companies to indicate their scope of program of their interest from the four (4) LOTS indicated in
the table in item 3 above as well as provide specific information about the pre-qualification criteria upon which the company’s submission will be evaluated
 5.1 PART AInterested companies shall provide their company profile detailing the following:
-Name of Company
-Registered Business Address
-Country of incorporation
-Certificate of Incorporation
-Country of Domicile HQ
-Date of incorporation
-Memorandum of Understanding between Consortiums (if any)
-Shareholding structure ot company (Atach details)
-Core Business of company
-Relevant practicing license issued by appropriate regulatory agencies.
-Name and contact information of Principal with appropriate authorization
-Valid Contact email Address
-Valid Telephone Number

5.2 PART B
a. Prospective bidders to clearly indicate their LOT of interest
b. Prospective bidders to state clearly their BOT financing model scheme without any recourse to NNPC. The B0T model shall indicate tenure and recovery mechanism and indicative pricing.
c. Bidders to attach a full description of the following terms in separate sheet (s) 
 -Proposal including conditions precedent applicable for own scheme.-Planned source of funds for financing the BOT
-Planned strategy for EPC and state examples of similar projects handled in the past
-Strategy to maximize local content in overall proposal in line with the Nigerian Oil and Gas Industry Content Development Act 2010.
-Other suggestions that may be relevant to enhancing the bankability of the project or overall success (state supporting investment type if any).
-Provide 3-year company(ies) audited accounts (2017,2018.2019)
– Provide 3-year Tax clearance certificates (2017, 2018, 2019)
d. Prospective bidders shall submit evidence of financing and executing a major engineering project to the tune of a minimum af $500,000.000 (Five Hundred Million US Dollars) within the last 5 years (e.g. certificates of completion for
similar or related jobs, evidence of ongoing similar or related jobs, etc.). Contact information for clients should be included
e. Prospective bidders shall have a minimum annual turnover of $500.000,000 (Five Hundred Million US Dollars)
f. Prospective bidders shall have a minimum Net Worth of $300.000.000(Three Hundred Million US Dollars)
g Prospective bidders shall submit Letter of Commitment from an investment grade bank indicating availability of funds and readiness to finance the B0T
h. Prospective bidders shall submit Community Affairs, Safety Health Environment and Security (CASHES) plan adequate to cover the project execution
i. Prospective bidders shall submit relevant quality certifications such as IS0 9001, etc.j. Prospective bidders shall submit evidence of experience in operating similar downstream infrastructure facilities.
k. Indicate if your business is currently involved in any Legal Dispute. (if YES Provide List of Legal Disputes your Business is involved in)
l. Indicate your Company is in Receivership. the Subject of any form of winding up petition or Insolvency proceedings
m. Indicate that your Company is controlled by a person or persons who are subject to any Bankruptcy proceedings or who have been declared bankrupt and or have made any compromises with their creditors within the last two calendar years
n. Indicate if any of your Company Directors has been convicted in any Country for any Criminal Offence Relating to Fraud or Financial Impropriety or Criminal Misrepresentation or Falsification of Acts Relating to Any Matter

6. SUBMISSION OF PRE-QUALIFICATION INFORMATION DUE TO THE COVID-19 PANDEMIC, ALL BIDS MUST BE SUBMITTED ELECTRONICALLY TO THE NNPC/Nipex TENDER PORTAL

6.1 To be eligible for this tender exercise, prospective bidders are required to submit these mandatory details as outlined below to SCMTenders@npex.com.ng on or before 12:00 noon, 4th September 2020
a. Companys name
b. Company’s full address
c. Company’s authorized contact person(s) name to include Phone number and Company’s email address

6.2 Provision of 6.1 (a-c) above is a mandatory requirement to register your company tor participation in this Pre-qualification stage of the tender process in the NNPC/NipeXtender process portal

6.3 All prospective bidders who do not provide as requested in 6.1 (a-c) above as at 12 noon of 4th September 2020 will no longer have access to submit the mandatory details

64 Prospective bidders will be duly notified on their registration in the NNPC/NipeX tender portal

6.5 Thereatter the prospective bidder would have access to make their submissions on the NNPC/NipeX Tender Portal

6.6 All submitted bids should be labelled “REQUEST FOR PRE QUALIFICATION OF cOMPANIES FOR THE REHABILITATION OF NNPC DOWNSTREAM CRITICAL PIPELINES AND ASSOCIATED DEPOTS TERMINAL INFRASTRUCTURE THROUGHBOT MODEL

6.7 The Submission closing date
All pre-qualification documents should be submitted online through the electronic NNPCNipex Tender Portal on or before 12:00 Noon, 18 September, 2020 to: www.nipex-ng.com
6.8 All pre-qualification documents shall be opened virtually and the entire process shall be visible to all Parties following the deadline for bids submission.

6.9 All Prospective bidders who have submitted pre-qualification documents and external observers shall be invited to attend a virtual lIve stream bid opening session

7. ADDITIONAL INFORMATION
7.1 This invitation shall not be construed as commitment on the part of NNPC/INPSC, nor shall it entitle potential firms to make any claims whatsoever and/or seek any indemnity from NNPCNPSC by virtue of such firms having responded to this invitation

72 Pre-qualification documents submitted after due date and time shall be rejected

7.3 All Submissions should be arranged and numbered in the order listed in 5 above.

7.4 All cost incurred as a result of this prequalification invitation and any subsequent request for information shall be to the responding firms accounts

7.5 NNPC shall deal directly with only authorized officers of the interested companies and not through individuals or agents.

7.6 All Information must be provided in English Language.

7.7 Only Companies that meet the pre-qualification requirement will be considered for invitation to the next stage.

7.8 Prospective bidders are required to provide a sworn affidavit confirming the genuineness of their submission and that discovered that the information provided is false the company is liable to being prosecuted.

7.9 Any clause in prospective bidders submission that will validate the terms of their submission will not be acceptable by NNPC

7.10 All enquiries for clarifications shall be addressed to
bidsubmission@nnpcgroup.com