Expression of Interest for Embedded Power Generation Project at Ikeja Electricity Distribution Company Plc

Expression of Interest for Embedded Power Generation Project in Ikeja Electric

(1)     Purpose of the Request: Ikeja Electricity Distribution Company Plc (“IE”) invites Prospective Contractors to submit their Expression of Interest (“EOI”) for the Embedded Power Generation Project (“Project”). The purpose of the request for EOI is to shortlist eligible companies for Bidding. Only shortlisted companies will have the right to attend the Project Bidding. In addition to the EOI, Prospective Contractors shall submit required documents listed in Section 10 as part of the Proposal for each LOT.

(2)     Status of Power Supply in IE: IE is responsible for the distribution of electricity to approximately 650,000 consumers spread across eight Local Government areas in Lagos State. With a maximum demand of 1,251 MW and only 406MW Average Daily Power supplied to IE from the Grid, there is a gap of 845MW that IE needs to cover. In order to mitigate these challenges, IE seeks to enhance the efficiency of its Distribution Network in terms of quality of power and increased revenue earning through the Project.

This activity is part of IE’s ongoing transformation to an effective and efficient service-delivery oriented organization, driven by international best practices, to meet its’ corporate objectives.

(3)     Project Description: The Project will be first of its kind to be developed by IE and represents a further development in the power Sector to help satisfy the increasing demand for electricity. The Project will be located at 11 sites within IE (see “Section 7” for details) and will comprise, amongst other things, the following:

  • The development, financing, design, permitting, insurance, engineering, procurement, construction, completion, testing, commissioning, insurance, ownership, operation and maintenance of each new power plant and associated facilities.

The Project will be developed on a Build, Own, and Operate (“BOO”) basis by the Contractor. After construction of the Plant and associated facilities, from the Commercial Operation Date (“COD”), the Contractor will sell its entire power capacity and output to IE under a Power Purchase Agreement (“PPA”). The Contractor will source for the required Fuel, Gas or any other cost-efficient and environmental-friendly fuel, under a separate arrangement with Fuel providers. IE will be liable for the dispatch of electrical energy from the Plant to its customers.

(4)     Project Agreements: The Contractor will be obliged to enter into the following agreements:

  • Power Purchase Agreement: Contractor and IE
  • Shareholders’ Agreement: Contractor and other entities (where applicable)
  • Land Use Agreement; Contractor and Land owner
  • EPC Contract; Contractor and the EPC Company
  • O&M Contract: Contractor and O&M Company
  • Fuel supply arrangement: Contractor and Fuel supplier
  • Electricity Connection Agreement: Contractor and IE
  • Environmental Impact Assessment

(5)     Eligibility of Participants: A Prospective Contractor may be a private entity or a government-owned entity or any combination of such entities.

Each Prospective Contractor must propose an EPC Company that has completed the engineering, procurement and construction of at least three (3) power plants (gas or any other fuel), each with a similar capacity of the Project, that have been in successful operation for at least one (1) year. Each Prospective Contractor must propose an O&M Company that has executed at least two (2) contracts for the O&M of power plants, each with a similar capacity of the Project, that have been in successful operation for at least one (1) year.

In case the EPC Company or O&M Company is a consortium, the Company must satisfy the above references either collectively as a consortium or individually as consortium members.

(6)     Eligibility of Key Expert: Key Experts consisting of the project leader, generation expert (mechanical and electrical), substation expert, distribution expert, metering expert must have at least 10years experience in their respective fields.

(7)     Site Information: The Project has Eleven (11) LOTs. Details for each LOT are shown in Table 1 below to be used as a reference. Prospective Contractors should critically study these sites, the Distribution Network and use the information to prepare its Proposal.

S/N Location Gas Availability Proposed Capacity/Site (MW)
1 OGUDU, 3X15MVA Yes 20.40

 

2 ILUPEJU 4 X 15MVA

 

Yes

 

17.00
3 Ogba, 2X15MVA & 1X30MVA

 

Yes

 

34.20
4 New Alausa (Radio), 3X15MVA

 

Yes

 

22.00
5 Secretariat 2 X 15MVA

 

Yes

 

13.10
6 Maryland. 3X1SMVA Yes

 

23.00
7 Vacant Land owned by IE beside Vitafoam, Oba Akran Avenue. Ikeja

 

Yes

 

17.40
8 Virgin Land Opp. LandCraft, Odongunyan, Ikorodu

 

Yes 20.00
9 Recreation Park Alausa, Land Ministry

 

Yes 10.08
10 Police Workshop Premises, Mobolaji Bank Anthony Way. Ikeja

 

Yes 7.33
11 Cocoa Industrial Road, Ogba, Ikeja.

 

Yes 18.10
Total 202.71

(8)     Clarification/Additional Information: Prospective Contractors requiring
clarification and additional information on this document should contact IE by e-mail through the following emails:

Engr. Adegbenro Olalemi, (Head of Network and Planning), IE.

aolalemi@ikejaelectric.com ;with a copy to KEPCO, Technical Consultant, IE. kepco@ikejaelectric.com .

(9)     EOI Submission: Each Prospective Contractor must submit one original hard copy, two hard photocopies of its Proposal including one copy of the Proposal in a flash drive to the following address:

Embedded Power Generation Office,

C/o MD/CEO, Ikeja Electric,

Awolowo Way,

Opposite MITV,

Alausa, Ikeja, Lagos.

All EOI must be submitted at IE to the address specified above by 12:00 noon, 4th September 2015 (the “Submission Date”). IE may, at its sole discretion, extend this date by issuing a notice.

(10)   Proposal List for EOI: Each Prospective Contractor shall prepare a Proposal including a letter of EOI for each LOT.

General Section:

  • Information regarding, as applicable, the Prospective Contractor’s organization and each member of the consortium
  • Company profile
  • Auditors Report
  • Profit and Loss Account
  • Balance Sheet
  • Cash Flow Statement
  • Evidence of company registration in Nigeria
  • Track Record
  • Nominated Contact Person

 Technical Section:

  • Evidence of eligibility of EPC Company and O&M Company
  • CVs of Key Experts
  • Configuration of the Plant and associated facilities

Financial Section:

  • Financing Plan

(11)   Evaluation of the EOI: IE will evaluate each Prospective Contractor’s Proposal through its internal methodology. All items in the Proposal, general, technical and financial documents, will be thoroughly evaluated.

(12)   Notification of selection: IE reserves the absolute right to accept or reject any EOI at any time without any liability to any Prospective Contractor or any other party and without any obligation to inform any Prospective Contractor of the grounds for its action. IE may, at its sole discretion and without explanation to the Prospective Contractors, decide to annul this Project process, without obligation to such Prospective Contractors.

IE intends to shortlist and notify the contractors (the “Shortlisted Contractors”) after the completion of the evaluation on the EOI of each Prospective Contractor. These Shortlisted Contractors must acknowledge receipt of this notification, in writing, within one week of such notification.

Signed: Management