DEADLINE: 12TH AUGUST, 2022
MINISTRY OF MINES AND STEEL DEVELOPMENT
NO. 2, LUANDA CRESCENT, OFF ADETOKUNBO ADEMOLA CRESCENT, WUSE II, ABUJA, F.C.T., NIGERIA.
REQUEST FOR QUALIFICATION FOR THE SELECTION OF CONCESSIONAIRES OF THE DELINEATED BITUMEN BLOCKS
1. Background
The Federal Government of Nigeria (“FGN”), in its determination to diversify the economy has identified the mining sector as one of the strategic industries for rapid growth and development. In particular, the FGN, through the Ministry of Mines and Steel Development (MMSD) has embarked on the development of the country’s bitumen resources. The FGN, through MMSD, has adopted a strategy to leverage private sector participation towards exploration, development, production and refining of bitumen. The “Nigerian bitumen belt” lies on the onshore part of the Dahomey Basin in the southwestern part of the country, straddling Lagos through Ogun and Ondo to Edo States. The area has been divided into three (3) main blocks A, B and C for ease of transaction and management by Nigerian Geological Survey Agency (NGSA).
2. Objective
The Federal Government’s intention is to ensure that the Nigeria’s bitumen resources are fully harnessed for domestic industrial/infrastructural development as well as export. It is expected that this initiative will create jobs and develop local industries though a Public Private Partnership (PPP) arrangement.
The construction industry, particularly the road construction sector, is a major driver of bitumen demand both locally and internationally, Bitumen is a key component of asphalt that is used in road construction Currently, the total national road network in Nigeria is approximately 200,000km. Only about 65,000km of the 200,000km are paved mostly in bituminous layers others are earth roads. Out of this, the Federal Government owns about 35,000km representing 54% of the entire bituminous road network in Nigeria.
The Highway Development and Management Initiative (HDMI) Programme will facilitate the development of parts of Nigeria’s 35,000km of federal highway network through the concession of twelve (12) major roads under the scheme, covering the six (6) geopolitical zones of the country. HDMI will boost regional interconnectivity between the West African nations connecting Abidjan, Ivory Coast to Lagos Nigeria passing through Ghana, Benin and Togo, presenting a potential driver for bitumen demand.
3. Eligibility
Requirements Reputable and suitably qualified local and international investors with pre-requisite technical experience, technological expertise and financial capacity to carry-out bitumen resource development to a meaningful extraction level, are hereby invited to respond to this request for qualification (RFQ) for the Concessioning of the Delineated Bitumen Blocks.
Technical Capacity
Applicant shall demonstrate the following technical capacity and experience (the “Technical Capacity”), over the past five (5) years preceding the Application Deadline:
i. Evidence of track record in bitumen assay/testing
ii. Evidence of track record in bitumen exploration and extraction (surface and in situ)
iii. Evidence of experience in bitumen refining capabilities
iv. Evidence of experience in asphalt binder marketing/sales and/or ability to secure offtakers
v. An applicant or in the case of a Consortium, all members nominated must provide evidence of compliance with applicable environmental, social and governance, (ESG) sustainability guidelines
vi. Experience in emerging markets will be an added advantage (List all relevant track records)
Financial Capacity
The Applicant shall provide:
The Applicant shall provide:
i. documentary evidence that it is in a good financial position at the close of the preceding financial year with minimum net worth of US$25million and can provide the required equity funding having regard to its contemplated financing in the exploration, development and operation of Bitumen Mining site and ancillary facilities.
ii. documentary evidence, including but not limited to, a letter of financial support from a credible financial institution that supports its ability to provide debt funding for the Project. The Member(s) of the Consortium that is (are) nominated to be the financier of the Project, should satisfy the above conditions of eligibility. Alternatively, the Consortium Lead shall provide documentary evidence of good financial standing and that it has the ability to provide the required equity funding; and provide documentary evidence, including but not limited to, a letter of financial support from a credible financial institution that supports the proportional debt threshold in the Consortium.
Statutory Requirement
i. Certified true copies of the current Form CAC including form CAC1.1, CAC2 and CAC7 or foreign equivalent
ii. Copy of firm’s Tax Clearance Certificate as issued by the Federal Inland Revenue Service (FIRS) of Nigeria (or foreign equivalent) for the last three years valid till 31st December 2021 (or foreign equivalent).
iii. Evidence of Pension Clearance Certificate valid till 31st December 2021 (or foreign equivalent)
iv. Evidence of Industrial Training Fund (ITF) Compliance Certificate valid till 31st December 2021 (or foreign equivalent)
v. Copy of current Nigeria Social Insurance Trust Fund (NSITF) Clearance Certificate valid till 31st December 2021 (or foreign equivalent)
vi. Copy of the firm’s current registration issued by relevant regulatory professional body like COREN (or foreign equivalent)
vii. Sworn Affidavit disclosing whether or not any officer of the relevant committee of the MMSD or its agencies, or the Bureau of Public Procurement is a former or present director, shareholder or has any pecuniary interest in the bidder and to confirm that all information presented in its bid are true and correct in all particulars
viii. Sworn Affidavit that the company is not subject to any form of insolvency or bankruptcy proceedings or the subject of any winding down petitions or proceedings
4. Method of Application
Complete RFO Package will be available to interested applicants upon registration at bitumen.ngsa.gov.ng. Applicants are expected to prepare an RFO Application using the available forms without any alteration to its format.
5. Enquiries/Clarifications
Applicants may attend a virtual clarification session scheduled for 15:00hrs West African Time (GMT+1) on Tuesday 19 July 2022 upon registration at https://bit.ly/3OSlrQv. Subsequently, request for clarifications on any information contained in the RFQ Package may be sought via email no later than 11:59 hours West African Time GMT+1, Friday 5 August 2022. All such communication between the Applicant through its designated contact person and the Bitumen Committee and Transaction Advisors/Programme Managers shall be through the following email ng_mmsd_bitumenlicenseprocurement@pwc.com. All clarification provided will be communicated to all applicants
6. Method Of Submission
The completed hard and soft copy RFQ Application shall be submitted at a physical location and via a dedicated project email respectively no later than 11:59 hours West African Time (GMT+1) on Friday 12 August 2022
- The electronic submission in PDF format shall be sent via email to ng_mmsd_bitumenlicenseprocurement@pwc.com. Please note that electronic submissions via any other means will not be accepted.
- The envelope containing all three (3) copies (one original and two copies) of the RFO Application and the required supporting documents shall be clearly marked “Request for Qualification (RFQ) Application for the Selection of Concessionaires of the Delineated Bitumen Blocks” on the top right-hand corner on the front of the envelope and the Bidder’s name/address at the back of the envelope, and should be addressed to the undersigned.
Signed
Chairman Bitumen Committee
Director-General, Mining Cadastre Office (MCO)
37 Lobito Crescent; Off Ademola Adetokunbo Crescent,
Wuse II, Abuja Nigeria
For Honourable Minister,
Ministry of Mines and Steel Development
