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Kenya: Tender invitation for natural gas feasibility studies. Image: 123rf

The government of Kenya (GoK) intends to create a domestic natural gas market for power generation and industrial use.

Deadline for receipt of expressions of interest is Monday, 30 November 2020 at 10:00 hours, EAT.

The gas will be imported as government progresses with development of domestic gas resource. Introduction of gas for power generation is aimed at further diversification of the country’s energy mix, increased security of supply, reduction of cost of electricity and reduction of greenhouse gas emissions in line with 2015 Paris Global Climate Change Agreement that Kenya is a signatory.

The Kenya Electricity Generating Company PLC (KenGen) invites expressions of interest from eligible consultancy firms to conduct a feasibility study for the following:

  • Development and operation of infrastructure for importation, storage, and regasification of liquefied natural gas (LNG) for power generation in Kenya;
  • Conversion of the existing Heavy Fuel Oil (HFO) to operate on natural gas;
  • Development of a new natural gas power plant;
  • Operations and Maintenance (O&M) of the natural Gas infrastructure for a period of 20 years.

Scope of work

The scope of the consultancy for the project is comprised of but not be limited to the following:

  1. Project feasibility assessment
  2. Site selection and site investigations
  3. Gas sourcing, pricing and importation logistics
  4. Technical and commercial options analysis
  5. Market Study to estimate potential gas requirements and uses
  6. Project due diligence
  7. Economic and Social benefit analysis (ECSBA)
  8. Financial viability and affordability assessment
  9. Value for money assessment
  10. Legal due diligence
  11. Site due diligence
  12. Public sector comparator assessment that is, carry out an estimate of the total costs to the government of achieving the targeted outputs if the project is undertaken through the normal project development as opposed to a PPP Process.
  13. Environmental and disaster risk assessment
  14. Environmental and social impact assessment
  15. Procurement options, and if PPP option is recommended, PPP structure analysis
  16. Options development, evaluation, and selection
  17. Risk allocation framework and preparation of heads of terms for project contracts
  18. Project cost estimate, financial analysis, and determination of key financial parameters- NPV, FIRR, EIRR, LCOE, financial models and market sounding
  19. Summary of recommendations, Implementation plan and feasibility study report
  20. Determine viability of development of a proposed new plant running on natural gas, should it be required.
  21. Grid interconnection study for new natural gas fired power plant.
  22. Preparation of concept design and bidding documents for a competitive procurement process, if the project is deemed feasible.
  23. If the project is deemed to be appropriate for procurement as a PPP option, preparation of the bidding documents including RfQ, RfP and all the associated agreements

The interested firms may submit request for clarifications on this pre-qualification up to 10 days before the pre-qualification submission date.

Any request for clarification must be sent in writing by paper mail, facsimile, or electronic mail to:

Supply Chain Director

Kenya Electricity Generating Company PLC,

Stima Plaza III, Kolobot Road, Parklands,

P.O. Box 47936 – 00100,

Nairobi, Kenya

Tel: +254-20-3666427/+254 – 20 – 3666421

Email: tenders@kengen.co.ke CC: jnjeru@kengen.co.ke; SKirui@kengen.co.ke; bmusyoka@kengen.co.ke; fkamanja@kengen.co.ke; mogonji@kengen.co.ke

Submissions

The EOI (1 Original and 2 copies) plus one (1) readable soft copy should be submitted in a clearly labelled sealed envelope by 10:00 hours (East African Time) on 30 November 2020. To the following address:

Supply Chain Director,

Kenya Electricity Generating Company PLC,

Ground Floor, KenGen Pension Plaza I,

Kolobot Road, Parklands,

P.O. Box 47936, 00100

Nairobi