Archive Tenders: EXPRESSION OF INTEREST (EOI) FOR DESIGN, SUPPLY, INSTALLATION AND COMMISSIONING OF 10MW SCALABLE SOLAR PHOTOVOLTAIC POWER, AUXILIARY EQUIPMENT AND ASSOCIATED WORKS AT NANJOKA IN SALIMA

PROCUREMENT  REFERENCE NUMBER EGC 202/EOI/SOLAR/FY2018-19

Issued by: Electricity Generation Company (Malawi) Limited (EGENCO)

February 04, 2019 Responses due by 2:00p.m. on 07/03/2019

To: The Chief Executive Officer,

Electricity Generation Company (Malawi) Limited (EGENCO)

No. 7 Victoria Avenue

Chayamba Building

P.O. Box 1567

Blantyre,

Malawi  

1. Background

The Electricity Generation Company (Malawi) Ltd (EGENCO) is a company wholly owned by the Government of Malawi. EGENCO was incorporated on 9th September 2016 as a public company under the Companies Act (Cap 46:03) and commenced its full operations on 1st January 2017. EGENCO is mandated to generate electricity.

The Integrated Resource Plan (IRP) for Malawi published in May 2017 shows the demand forecast for year 2020 exceeding 567MW whilst EGENCO’s installed generation capacity is at 411.6MW (including diesel generators). Although the liberalized electricity market has seen the coming in of other power producers, there remains a capacity deficit in the grid. This has in recent years been compounded by a combination of climate change and environmental degradation that have caused a substantial reduction in the water levels of Lake Malawi, reducing flows in the Shire River, and ultimately reducing EGENCO’s hydro generation capacity for about four months during the dry seasons. This signals the urgent need to explore quick non-hydro energy supply options to bolster electricity supply in the Country. It is against this background that EGENCO intends to implement a 10MW Solar Photovoltaic (PV) electricity generation at Nanjoka in Salima.

2. Goal of the Project

The main goal of the project is to increase power supply in the country by designing, supplying, installation and commissioning a 10MW Solar PV Power Plant, Auxiliary Equipment and Associated Works at Nanjoka in Salima. EGENCO plans to install the solar PV plant close to a growing load center (Salima) to maximize benefits to the national grid and satisfy the afternoon peak demand. EGENCO has already secured enough land for future scaling up of the plant by another 10MW.

3. Project Description

The project scope entails detailed feasibility study, designing, supplying, installing and commissioning of a 10MW Solar PV Power Plant, Auxiliary Equipment and Associated Works at Nanjoka in Salima. The generated electricity will be connected to the national grid at the existing Nanjoka Substation in Salima. The project will be designed for implementation in two phases of 10MW each.

4. Scope of the Project

The salient features of the Project are as follows: i. A Social and Environmental Impact Assessment and an Environmental Management Plan for a 20MW Solar PV Plant at Nanjoka in Salima to be developed in two phases of 10MW each. ii. Detailed solar resource assessment to verify the Direct Normal Irradiance (DNI) and the ultimate solar power plant output at Nanjoka in Salima. iii. Develop a detailed financial model for the Project showing viability of Project with own finance, through an export credit facility or a combination thereof. iv. Supply and installation of materials for 10MW Solar PV system (Phase 1) at Nanjoka in Salima. v. All related Project civil works for Phase 1. Due consideration shall be made of the scalability of the project. vi. Supply and installation of the connectivity infrastructure of Solar PV system to Nanjoka Substation in Salima. vii. Testing and commissioning of the Solar PV system (Phase 1) Nanjoka in Salima. This Expression of Interest (EOI) intends to identify qualified Solar PV Contractors (Proponents) to carry out all the elements described above.

5. Eligibility Criteria for Qualified Proponents Proponents

are required to demonstrate their ability to implement Solar PV energy systems including but not limited to material selection, engineering project management, standards and regulation compliance, supply of all equipment/material/labour, delivery, installation and civil works, interconnection, commissioning of ground mounted Solar PV at Nanjoka in Salima.

To qualify for shortlisting, Proponents must submit all the information required to prove that they are qualified to do the specified works. The Submission should meet the following criteria:

5.1 Project Experience

A. Proponents with experience in design, supply, installation and commissioning of Solar PV Electricity Generation Systems, Auxiliary Equipment and Associated Works registered with Malawi National Construction Industry Council (NCIC) or equivalent institution (for international Proponents) in a MK1 billion category and above or joint ventures based on NCIC guidelines for the purposes of meeting the category requirements may submit their Expression of Interest (EOI) for this Project. International bidders should abide by regulations for subcontracting and Joint Ventures by foreign and Malawian construction firms (NCIC Regulations for Joint Ventures and subcontracting, January 2014).

B. Proponents shall demonstrate experience in developing and constructing Solar PV power systems by providing the following information:

i. Corporate Profile including relevant registration certificates such as business registration certificates, valid tax clearance certificates and NCIC category or Joint Venture documentation or equivalent registration in the country of origin. For Joint Ventures or Consortia, the Proponent shall indicate the role of each Firm including the level of shareholding within the Joint Venture or Consortium.

ii. Qualifications of Personnel including permits for renewable energy projects installations from the Malawi Energy Regulatory Authority or equivalent Regulatory Body in country of origin.

iii. Proposed Subcontractors or evidence of local partnerships for international bidders.

iv. Experience reference on at least five similar projects which includes:

a. At least one grid-connected Solar PV power plant in Africa with a minimum capacity of 20MW;

b. At least one grid-connected Solar PV power plant anywhere in the world with a minimum capacity of 50MW;

v. For a power plant to be recognized as evidence of meeting the above criteria (Experience reference, paragraph iv),

a. In the case of a Joint Venture or Consortium, the relevant experience must reside within the leading Firms in this EOI;

b. The Proponent must submit traceable references for the projects (a-b listed in paragraph iv above -Experience reference) as objective evidence to confirm that the work was done in a satisfactory manner for the previous clients.

5.2 Financial Status

A. The Proponent (the leading Firms in the case of a Joint Venture or Consortium) shall provide audited financial statements duly certified by a public accountant for the most recent two full financial years including in each case a consolidated balance sheet, income statement, statement of cash flows and accompanying notes.

B. Proponents shall be required to demonstrate their financial capacity to develop and construct Solar PV hybrid power systems by:

i. If the Proponent is a single entity, such entity shall have had a Net Assets of at least US$40 million as at the end of each of the most recent two full financial years for which audited financial statements are available as at the deadline for responding to this EOI.

ii. If the Proponent is a Consortium, then the leading Firms shall, between them, have had Net Assets of at least US$40 million.

C. Proponents should indicate extent of their ability and intention to finance the Project and/or ability to obtain an export credit facility to develop and finance this Project. They should also indicate the projects, if any, that they have developed with own finance or through an export credit facility.

5.3 Legal Status

A. For the purposes of the Process, this EOI, Relevant Person means, with respect to a person:

i. Any company controlling, controlled by or under common control with such person;

ii. Any director, senior executive or manager either of such person or of any company referred to in paragraph (i);

iii. Any consultant, agent or representative supporting such person in connection with the Process or the Project; and

iv. Any person with an aggregate ultimate beneficial interest in at least 5% of the share capital or ownership interest in such person (howsoever held).

B. The Proponent (or each Consortia Member in case of Consortia) shall provide a letter duly signed by its Authorized Signatory indicating that the Proponent or Consortia Member (in case of Consortia) has satisfied all of the following legal requirements:

i. It and all Relevant Persons are not in bankruptcy or liquidation, or receivership, or wound up, or their affairs are not being administered by a court or a judicial officer, or their business activities have not been suspended or they are not the subject of legal proceedings of any of the foregoing and have a reasonable expectation of being able to discharge all financial liabilities as they fall due;

ii. Neither it nor any Relevant Person has been convicted of fraud, corruption, collusion or money laundering or for a criminal act involving dishonesty, physical violence or intentional harm to human life, or for any criminal offence related to their professional conduct within a period of five years of commencement of the procurement proceedings, nor is the subject of credible and/or persistent allegations related to, or is under investigation for, such criminal activities;

iii. It is not aware of any conflict of interest or potential conflict of interest arising from prior or existing contracts or relationships which affects or could affect its or (upon formation) the Proponent’s potential involvement in the Project (other than supply or service agreements among members of the Consortia Member's corporate group in the ordinary course);

iv. Neither it nor any Relevant Person has any tax liabilities, outstanding social security contributions or liabilities in respect of judgments awarded by any court or similar proceedings in the period of three years prior to the date of this invitation, save in each case to the extent that it has made suitable accounting provision for such liabilities in accordance with applicable accounting regulations;

v. Neither it nor any Relevant Person has previously been excluded from tender or other public procurement processes in Malawi;

vi. Neither it nor any Relevant Person:

a. Is included as a debarred person pursuant on the public sanctions list of any multilateral development bank that is party to the Agreement on Mutual Enforcement of Debarment Decisions of 9 April 2010 (www.crossdebarment.org); or

b. Is included on any sanctions lists promulgated by the UN Security Council or its Committees, or any other recognized international sanctions list; and

vii. Neither it nor any Relevant Person has operations (directly or through any subsidiary) or carries out transactions that are not in compliance with the sanctions promulgated by the UN Security Council or its Committees or national sanctions in Malawi.

C. The Proponent or Consortium Member (in case of Consortia) shall also provide the following:

i. A power of attorney authorizing the person(s) signing and submitting the EOI and subsequent RFP on behalf of the relevant Proponent so to do, satisfying all authentication formalities.

ii. A comprehensive organization chart showing – or narrative text describing – how it is owned, up to the level of ultimate beneficial ownership by individuals and identifying by name all legal or natural persons holding (at any level in the organization structure) an aggregate ultimate beneficial interest of at least 5%;

iii. Certified copies of up-to-date constitutional documents (e.g. certificate of incorporation and/or registration, extract from commercial registry, by-laws)

6. Evaluation of Submitted Applications

A. EGENCO shall first examine each Submission to determine whether it is complete in form and substance.

B. In the event of any inconsistency between the original and any of the copies making up a Submission, the original shall prevail.

C. Where EGENCO deems it convenient or necessary for clarification purposes, it may – but shall not be so obliged – request supplementary information or documentation from a Proponent (whether relating to such Proponent, any Consortium Member, the relevant Submission or any document submitted as part thereof or otherwise in connection therewith) for determining its eligibility. Whenever such request is made, the Proponent shall provide the required information or documentation to EGENCO within the time as is specified in the request from EGENCO.

D. Once EGENCO has concluded the clarification process contemplated in paragraph C above (if any), it shall proceed to formal evaluation of the Submissions. Such evaluation shall be on a simple “Pass/Fail” basis as follows:

i. Any Proponent whose Submission demonstrates compliance with the Eligibility Criteria for Qualified Proponents (Section 5 of this EOI) shall be designated as a “Pass”.

ii. Any Proponent whose Submission fails to demonstrate compliance with the Eligibility Criteria for Qualified Proponents (Section 5 of this EOI) shall be designated as a “Fail”.

E. EGENCO reserves the right to disregard minor deviations from the formal Eligibility Criteria for Qualified Proponents (Section 5 of this EOI), provided that it is clear from the relevant Proponent’s Submission (and from any subsequent clarifications sought for) that the Proponent satisfies all the other Requirements.

F. EGENCO shall be entitled to disqualify any Proponent if it discovers that any statement in any document provided by such Proponent as part of or in connection with its Submission is or was when made, incorrect or misleading in any material respect.

7. Invitation for Expression of Interest (EOI)

EGENCO is inviting qualified Solar PV Contractors (Proponents) to express interest to Design, Supply, Install and Commission a 10MW Scalable Solar PV Power Plant, Auxiliary Equipment and Associated Works at Nanjoka in Salima. The successful Proponent will be eligible to respond to a Request for Proposal (RFP) to Design, Supply, Install and Commission a 10MW Scalable Solar PV Power Plant, Auxiliary Equipment and Associated Works at Nanjoka in Salima. The EOI is intended to allow EGENCO evaluate the Proponent’s experience and competencies required for this Project.

8. Delivery of Submissions

One original and Two (2) copies of the Expressions of Interest from eligible and interested Proponents who wish to participate in this Project must be submitted in a sealed envelope, clearly marked ‘Design, Supply, Installation and Commissioning of a 20MW Scalable Solar PV Power Plant, Auxiliary Equipment and Associated Works at Nanjoka in Salima’ and shall be delivered to the address below and deposited in the Tender Box located at Floor Number 6, Chayamba Building, No. 7 Victoria Avenue no later than 2:00 p.m. on Thursday, 7th March 2019. The Proponents will be required to register with the Procurement Manager on Floor Number 6, Chayamba Building, No. 7 Victoria Avenue before depositing the EOI in the Tender Box. Late submissions and submissions by email and telefax will not be accepted.

9. Important Dates

Note: Although every attempt will be made to meet the milestone dates, EGENCO reserves the right to modify any or all dates at its sole discretion.

10. Inquiries

Proponents may submit questions and request clarifications related to this EOI via e-mail (no telephone contact in this regard) to wmpisa@egenco.mw no later than 5:00 p.m. on Monday 18th February, 2019. All questions will be compiled and related responses will be publicly posted (no confidential questions) on EGENCO’s website by Friday, 22nd February, 2019.