Archive Tenders: EXPRESSION OF INTEREST CLARIFICATIONS FOR SALIMA SOLAR PV PROJECT

REF.

SECTION

The notification says that,

"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"

We would like to know if the project has to be built on BOOT/ IPP basis or the construction of project has to be funded by the contractor and gets paid from EGENCO. If the project is financed by EGENCO then what kind of financing by the contractor is envisaged?

EGENCO recognizes that some proponents may be motivated by the option to provide or facilitate financing. EGENCO therefore contemplates on either EPC or EPC + Finance. The final scheme will be based on technical and financial soundness at the RFP stage. Where the contractor is providing financing, it will be in the form of debt (rather than equity).

The notification also says: "Contractor to develop a detailed financial model for the Project showing viability of Project with own finance, through an export credit facility Project showing viability of Project with own finance, through an export credit facility or a combination thereof"

Again it is important to understand if the contractor is supposed to design, finance, build and operate the plant and sell the power to EGENCO under Power Purchase Agreement.

The contractor will be required to design and build the facility. Financing by the contractor is not mandatory but will be permitted as an option for purposes of enhancing project viability. Where the contractor chooses to provide financing, the intended proportion (or percentage) of the total cost shall be indicated in the response to this EOI.

Regardless of whether or not the contractor will provide whole or part of the financing, a detailed financial model will be required at the RFP stage.

It has been stated in the requirements as follows:

"5.1 project experience

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"

According to above 2 clues, (please clarify) whether we qualify if we have constructed and operated 50MW solar projects in another country (excluding Africa), for example china or any country from Asia.

4. Scope of the project – 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.

Please would you kindly clarify if the project financing will be done by Egenco or the awarded EPC accordingly.

5.1 Project Experience – Point

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

Please would you kindly clarify if a proponent could participate where they have all solar projects references outside Africa and only Substation and transmission lines references exist in Africa as well as our current projects in Malawi.

For scope of work, will all these works belong to the bidder? Which means that bidder needs to quote for these.

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.

What does this sentence:

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. ) mean?

This statement emphasizes that: (a) The contractor will be responsible for developing the project, and

(b) The project will be follow either EPC or EPC+F model.