DEADLINE: 6TH OCTOBER, 2023
FEDERAL MINISTRY OF WATER RESOURCES
OLD FEDERAL SECRETARIAT COMPLEX, AREA 1, GARKI, ABUJA
IN COMPLIANCE WITH INFRASTRUCTURE CONCESSION REGULATORY COMMISSION (ICRC) ESTABLISHMENT ACT 2005 & NATIONAL POLICY ON PUBLIC-PRIVATE PARTNERSHIP (N4P)
NOTICE OF REQUEST FOR QUALIFICATION (RFQ) TO PROSPECTIVE INVESTORS/DEVELOPERS FOR THE 460MW KATSINA ALA MULTI PURPOSE DAM & HYDRO POWER PLANT PROJECT, BENUE STATE, NIGERIA UNSOLICITED PPP PROCESS
(1.0) INTRODUCTION
The Federal Government of Nigeria (“FGN”), through the Federal Ministry of Water Resources (FMWR) seeks to concession the Katsina-Ala 460MW Multipurpose Dam Project. The project entails the development and building of a hydroelectric power plant located on the Katsina Ala River in Benue State. The Federal Ministry of Water Resources (“FMWR”) in compliance with the Infrastructure Concession Regulatory Commission (“ICRC”) Establishment Act 2005 and in furtherance of the Electric Power Sector Reform Act (EPSR 2005) seeks to concession the multipurpose dam & power plant to a private sector developer and operator. FMWR invites interested firms and/or consortiums of firms to participate in the qualification process for the selection of a Private Sector Operator through a Competitive Bidding process for the “Concession of the Katsina-Ala Multipurpose Dam and 460MW Hydropower Plant Project”. The FMWR expects the selected Private Partners to Design, Finance, Build, Operate and Transfer (DFBOT) the facility based on Tenure, Terms and Conditions to be set out in the Concession Agreement.
(2.0) PROJECT OBJECTIVE
The overall objective of the project is to procure Concessionaire(s) with the technical and financial capabilities to finance, build, operate, maintain and manage the hydropower development project for optimum power generation all year round. The Government, through this project, aims to bridge the power generation gap that exists in the country, whilst equally diversifying the country’s energy mix with new investments in renewable energy. The Hydropower Development Projects are currently at the forefront of a new wave of large-scale, project-financed, Greenfield Independent Power Plants (IPPs) currently being developed in Nigeria. The overall objective of the project(s) is to procure Concessionaire(s) with the technical, financial and management capabilities to design, finance, build and operate the hydropower plant project.
(3.0) PROJECT SCOPE
The main scope of the 460MW Katsina Ala Hydropower plant for PPP scheme include:
(i) design and detailed studies for the dam,
(ii) development and construction of a Multipurpose Dam
(iii) the installation of the specified respective electro-mechanical components/power plants
(iv) the construction of the transmission infrastructure for power evacuation
(v) Operate and maintain the plant to fully harness the Hydropower potential available in the plant for optimal electricity generation
(vi) to supply raw water for water treatment and irrigation.
(4.0) SWISS CHALLENGE PPP PROCUREMENT METHODOLOGY
Note that there is a private proponent who submitted the proposal on the project, however in order to ensure transparency, competition and value for money, the project will be procured under a Swiss Challenge PPP Procurement Methodology which requires that if the original project proponent is not the most responsive bidder, it will be given the right to match the most responsive bid to win the concession. However, if it is unable to match the most responsive bid, the most responsive bid then wins the Swiss Challenge PPP procurement and becomes the Preferred Bidder.
(4.1) REQUEST FOR QUALIFICATION (RFQ)
Interested firms and/or consortium of firms may submit their Qualification Statements in response to this RFQ where in firms and/or Consortia will be shortlisted for issuance of a detailed Request for Proposal. Details of the project, application submission process and requirements have been set out in the Request for Qualification (RfQ) package.
Subsequently the RFQ requirements will be available in the online portal for all interested parties to participate in the qualification process. Pre-qualified bidders would be duly notified through our official means of communication (E-mail) and/or the online platform and issued with Request for Proposal (RfP) documents.
(5.0) ELIGIBILITY CRITERIA AND METHOD OF APPLICATION
Qualification of interested parties will be based on the following:
(5.1) Pre-Eligibility
The under-listed criteria would be used to assess the responsiveness of applications
(i) Evidence of Company’s Registration with Corporate Affairs Commission (CAC) or its equivalent for foreign firms;
(ii) In the case of a consortium, evidence in the form of letter of association or agreement (joint venture agreement and/or Memorandum of Understanding/Memorandum of Agreement);
(iii) Power of Attorney/Board Resolution, in case of a consortium, identifying the lead member of the consortium authorized to submit the RFQ and binding on all the members of the consortium;
(iv) Signature Authority in the form of a board resolution or a power of attorney, where the Bidder is a single firm. Where the Bidder is a consortium, Bidder provides a Consortium Agreement signed by all Members of the Bidder, supported by signature authority in the form of a board resolution or a power of attorney from each Member of the Bidder providing its signatory the authority to sign and commit the Member to the Consortium Agreement;
(v) Evidence of Generation license in Nigeria or any other country of operation;
(vi) Audited Financial Statements prepared in accordance with the International Financial Reporting Standards (IFRS) of the bidding company or members of consortium for the last three (3) years (2020, 2021 & 2022);
(vii) Tax Clearance Certificates for the last three (3) years (2020, 2021 & 2022);
(viii) Sworn affidavit disclosing whether or not any officer of the relevant Committees of the FMWR or BPP is a former or present Director, shareholder or has any pecuniary interest in the bidder, that no Director has been convicted in any Country for any criminal offence relating to fraud or financial impropriety or criminal misrepresentation or falsification of facts relating to any matter, that the company is not bankrupt, in receivership or under liquidation or involved in any litigation which can potentially affect the company’s ability to effectively discharge their responsibility if engaged and to confirm that all information presented in its bid are true and correct in all particulars.
(6.0) TENDER REQUIREMENTS
Construction, Technical, Operational and Financial capability including:
(a) Detailed company/consortium profile:
(i) A brief description of the company or consortium stating ownership structure, business history, management/organizational structure, Energy/Hydropower development and operational capabilities, and any other relevant information.
(ii) Ownership structure of bidding entity, Name(s) of major shareholders and percentage shareholding of participants in the bidding entity.
(b) Experience of undertaking similar projects illustrated by the following:
(i) General experience in the Design, Construction, development, operations, maintenance, investment financing of energy/ power projects globally/locally (list all relevant track records).
(ii) Specific experience and track records in Design, Construction, operations, management, maintenance and financing of hydropower projects globally/locally (at least ten relevant track records).
(iii) Evidence of Design, Construction, developing and managing hydropower plant capacity of at least 200MW (at least five relevant track records).
(iv) Emerging market experience in hydro power generation facilities; Design, development, construction, operations and maintenance (at least five relevant track records).
(v) Construction/Financing/Operating & Maintaining of large-scale hydro power infrastructure in Sub-Saharan Africa would be an added advantage (at least one hydropower plant).
(c) Evidence of financial capacity, in support of the company or consortium’s ability to undertake the 460MW Katsina Ala Hydropower Plant Project with the sponsor. FMWR illustrated by:
(i) The average turnover per annum in the last three (3) years of at least One Hundred and Twenty Billion Naira (N120,000,000,000).
(ii) Evidence of adequate financial resources to finance investment: interested applicants must have a minimum net worth of at least Seventy-Five Billion Naira (N75,000.000,000) or its equivalent as shareholders’ equity contribution.
(iii) Letter of financial support from credible financial institutions that supports the bidder’s ability to raise funding for the project.
(d) Experience and Expertise of Key Personnel as illustrated by firm and profiles of key management staff with relevant experience working on a similar project and at least eight (8) years in the relevant industry: Construction/Delivery/financing of large-scale Power Infrastructure
Note: The eligibility criteria and method of application is as contained in the RfQ document, which interested parties MUST download from the E-Portal: www.waterresources.gov.ng.
Clarifications/enquiries may be sent to the Office of the Head, PPP Unit, Federal Ministry of Water Resources, Room 205, Old Building, Old Federal Secretariat Complex, Area 1, Garki, Abuja.
(7.0) METHOD OF SUBMISSION
All applications shall be submitted physically and electronically.
- All physical submission should be addressed and submitted to the Office of the Head, PPP Unit, Federal Ministry of Water Resources, Room 205, Old Building, Old Federal Secretariat Complex, Area 1, Garki, Abuja; the application shall consist of Six(6) printed and bound copies (1 original and 5 copies) in a sealed and signed envelope clearly marked “Name of Company/Consortium”. The submission should also include soft copy in readable format stored in a flash drive.
- Deadline for submission 12:00pm (Noon) Friday, 6 October, 2023.
IMPORTANT NOTICE
(a) Interested international parties are encouraged to partner with local firms in compliance with the requirements of the Federal Government of Nigeria local content development policy.
(b) Late submissions will be rejected (this includes submissions via courier not delivered within the stipulated time shown above).
(c) Submissions shall be in English language only.
(d) Only short-listed Consortium/Firms will be contacted.
(e) The FMWR reserves the right to verify the authenticity of any claims made in the documents submitted by the companies.
DISCLAIMER:
- This Invitation for Request for Qualification does not in any manner constitute an agreement and is neither an offer of the Concession to the prospective applicants/operators or any other person.
- This advertisement shall not be construed as a commitment on the part of the FMWR to appoint any applicant/operator nor shall it entitle any applicant/operator submitting documents to claim any indemnity from the FMWR or FGN.
- The Ministry will not be responsible for any costs or expenses incurred by any interested party(ies) in connection with any response to this invitation and /or the preparation or submission in response to an enquiry.
- The Ministry is not bound to shortlist any bidder and reserves the right to annul the selection process at any time without incurring any liability and assigning any reason thereof.
SIGNED:
PERMANENT SECRETARY
