Malawi wants private power firms to develop hydro scheme
The Malawi government is inviting expressions of interest (EoIs) from reputable companies or consortiums for the development of the Kayelekera North Rukuru river hydroelectric power project on an independent power producer (IPP) basis.
The Malawi Energy Regulatory Authority (MERA) says that the successful bidder will be required to undertake feasibility studies for the project, expected to supply power to the nearby Kayelekera uranium mine (pictured).
“The uranium mine stands to benefit from the project by replacing thermal power from diesel generators with cheaper and cleaner energy from the hydropower project,” says the MERA.
Besides conducting a feasibility study, the scope of the project includes a review to accom- modate emerging changes in the capacity and condition of the North Rukuru river and the impact on both the output and operational condition of the electromechanical equipment.
It also includes detailed design and costing of the components of the proposed works, including a comprehensive sediment monitoring and management programme for the North Rukuru river and integration options with the national power grid.
The winning bidder will also be required to develop a detailed works implementa- tion schedule, construction/supply and installation works for all the components of the proposed works, as well as works commissioning and operational arrangements.
The MERA says that companies or con- sortiums submitting EoIs should indicate their technical capability and capacity to design and construct the works, as well as their financial capacity to handle a project of this magnitude.
“This will be demonstrated through the provision of company brochures, descriptions of similar works performed on an IPP basis, key staff, proposed organisational arrangements for execution of the project, that is whether the firm submitting the EoI intends to undertake the project as a sole entity with minimal subcontracts or intends to mainly use subcontractors for both design and installation works,” says the MERA.
Interested firms or consortiums should also submit financial statements.
The MERA adds that the preferred bidder will be chosen based on general experience in the execution of IPP projects, particularly in the hydropower sector, at least within the past five to ten years.
The MERA states that the feasibility study report to be produced by the successful bidder will be approved by the Malawi government before the start of construction.
“The successful bidder will be required to obtain a generation licence from the MERA before embarking on construction.
“The successful bidder will determine the type of IPP operational arrangement to be approved by government.”
The authority says it intends to invite requests for proposals for the IPP project from shortlisted firms next month and have the contract awarded by the end of April 2010.
The Malawi government is in the process of facilitating the entry of IPPs into the power generation sector, where the State-owned Electricity Supply Corporation of Malawi enjoys a monopoly. —Creamer Media
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