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REQUEST FOR PROPOSALS

Background:

The Pacific Islands Greenhouse Gas Abatement through Renewable Energy Project (PIGGAREP) is a continuation of the close collaboration between the Secretariat of the Pacific Regional Environment Programme (SPREP), UNDP and the Global Environment Facility (GEF) to build the capacity of the PICs to deal with the challenges of Climate Change

The global environment and development goal of PIGGAREP is the reduction of the growth rate of GHG emissions from fossil fuel use in the Pacific Island Countries (PICs) through the removal of the barriers to the widespread and cost effective use of feasible renewable energy (RE) technologies. The specific objective of the project is the promotion of the productive use of RE to reduce GHG emission by removing the major barriers to the widespread and cost-effective use of commercially viable RE technologies (RETs). PIGGAREP consists of various activities whose outputs will contribute to the removal of the major barriers to the widespread utilization of RE technologies (RETs). The project is expected to bring about in the PICs: (1) Increased number of successful commercial RE applications; (2) Expanded market for RET applications; (3) Enhanced institutional capacity to design, implement and monitor RE projects; (4) Availability and accessibility of financing to existing and new RE projects; (5) Strengthened legal and regulatory structures in the energy and environmental sectors; and, (6) Increased awareness and knowledge on RE and RETs among key stakeholders.

The Solomon Islands Government SIG) is one of the participating PICs in the PIGGAREP and one of the activities in its 2009 Work Plan and Budget is a –Update Feasibility Studies for the Huro (Makira / Ulawa Province ) and Rualae ( Malaita Province ) Mini-Hydropower Schemes.

In 1996, the German Government (GTZ) supported the study of three (3) mini-hydropower scheme in the Solomon Islands . The GTZ supported the construction of the Jejevo (Buala) Hydropower scheme ( Santa Isabel Province ), but did not fund the construction of the Huro and Rualae Mini-Hydropower Schemes in Makira and Malaita Provinces respectively. This was due to changes in policy of the German Government and furthermore, the projected cost of the civil works for the two schemes were said to be too high.

The SIG gives priority to developing renewable energy resources in the country, thus funds to update the feasibility study for the two proposed schemes including estimate costs for civil works and the overall cost for the construction of the schemes.

It is the SIG’s plan to revisit these two mini-hydropower schemes and update the feasibility studies, so that the Huro (Makira) and Rualae (Malaita) Mini-hydro Schemes can be developed.

The SIG through the Energy Division of the Ministry of Mines, Energy and Rural Electrification is hereby putting out a Request for Proposals (RFP) to qualified and experience registered consultancy firms to undertake update Feasibility Studies for the Huro and Rualae Mini-Hydropower Schemes in Makira/Ulawa and Malaita Provinces respectively

Instructions to Offerors:

•  The Proposals must cover all the objectives, outputs and activities as specified in the ToR

•  The Proposals must include costs for professional fees and logistics

•  US$ only must be used in the Proposals

•  The Proposals must include:

i)   An updated CV of the individual/s who will undertake the update feasibility study

ii)   A summary of recent work in the areas to be covered in this consultancy (including client and work produced);

iii)   Information on availability;

iv)   Total person days proposed for the work on the consultancy and daily rate in US$ and

iv)   A methodology and work plan (maximum 10 pages)

•  As this task will involve specialized skills, experience and qualification, the Proposal must specify such experience and qualification of the individual(s) who will undertake the assigned task(s);

•  The consultancy preferably should commence by July 2009;

•  The offer must be in the English language only;

•  The above-mentioned documents, information and requirements are mandatory and as such are required to form a complete tender. An offer will be rejected unless it is substantially responsive;

•  If the Proposal is received prior to the formal submission date corrections/modifications can be made up to that date;

•  The Proposals must be submitted in electronic format only (Word and PDF format, 1 MB max) by email to the e-mail address specified below and

The job must be undertaken at the specified sites (Huro in Makira Province and Rualae in Malaita). The exact number of working days will be determined subsequently between the successful Contractor, the Solomon Islands Government and PIGGAREP Project Management Office (PMO).

The final working plan will be determined subsequently between the successful Contractor, the SIG and the PIGGAREP PMO. Acknowledgements of the receipt of quotations will be provided by e-mail. Successful as well as unsuccessful offerors will be informed by e-mail once the evaluation and selection process are completed.

Award of Contract and Evaluation Criteria:

Quotations will be evaluated according to the following criteria:

1.   Price (30%)

2.   Specific Experiences in Hydropower Assessment and installations (30%)

3.   Experience in the Solomon Islands or SIDS, Qualifications & Experiences of the Team who will be directly involved in conducting the consultancy (20%)

4.   Methodology/Work Plan (20%)

All quotations must be addressed to:

Solomon Islands Energy Division and copied to the PIGGAREP PMO. Note that the contract will be between SPREP and the winning bidder.

For project supervision purposes, the PIGGAREP PMO will make sure that an open, competitive and transparent process is used. Proposals must therefore be copied electronically to the PIGGAREP PMO.

Deadline for the submission of quotations is on the 10 th June 2009

Contact Information:

Nixon Kua

Deputy Director of Energy

Ministry of Mines, Energy and Rural Electrification

P.O. Box G37

Honiara , Solomon Islands

Telephone: (677) 21522 ext 206

Facsmile: (677) 25811

Email: n_kua@mines.gov.sb

Terms of Reference

Update Feasibility Studies for the Huro and Rualae Mini-Hydropower Schemes

•  Background

In 1996, the German Government (GTZ) supported the study of three (3) mini-hydropower scheme in the Solomon Islands . The GTZ supported the construction of the Jejevo (Buala) Hydropower scheme ( Santa Isabel Province ), but did not fund the construction of the Huro and Rualae Mini-Hydropower Schemes in Makira and Malaita Provinces respectively. This was due to changes in policy of the German Government and furthermore, the projected cost of the civil works for the two schemes were said to be too high.

The Solomon Islands Government (SIG) gives priority to developing renewable energy resources in the country, thus funds to update the feasibility study for the two proposed schemes including estimate costs for civil works and the overall cost for the construction of the schemes. Preliminary visit were done towards the end of 2008 to get the views of the landowning tribes and there were enthusiasm in the landowners, communities and the respective Provincial Governments in working together to see the eventual establishment of the two schemes.

It is the SIG’s plan to revisit these two mini-hydropower schemes and update the feasibility studies, so that implementation can eventuate.

•  Objectives

The objective of the study is to validate the resource assessment and system design of the 1996 Huro and Rualae feasibility studies. The revised system design will also be accompanied by an environmental impact assessment as required under Solomon Islands laws and a business plan covering financial, operational, and management issues. The study shall recommend the most appropriate option and prepare tender documents for implementation. The consultant is also expected to remain available subsequently as a transaction advisor, if necessary.

3. Specific Tasks

The study shall generally comprise of the following tasks:

•  Validate the current and prospective demand for electricity in the target communities of Rualae and Huro

•  Validate or revise as necessary the mini-hydropower designs; Prepare estimates of capital and operating costs, and design financing and cost recovery alternatives;

•  Design corresponding organizational and management alternatives and draft contract documents for preparing the business structure and hiring requisite people (or a draft management contract); and,

•  Policy recommendations to the government for price regulation and financing of future investment costs if/when the demand growth so requires.

The above tasks shall be accomplished, but not restricted, through the following activities:

Technical

•  Validate the previous assessment of the current and future demand for electricity in the communities taking into account changes in population, income, remittances, commercial activity, public or private social service delivery, and availability of information and communication technologies (including television, mobile telephony, internet services);

•  Assess the available energy resources and their adequacy to meet the current and future electricity demand of the target communities. This will include hydrological surveys of the identified site so as to review the flow duration curves and the rainfall/flow data identified in an earlier study

•  Prepare technical designs of the power generation, transmission and distribution facilities including equipment specifications and standards. This should also include civil works design.

•  Prepare terms of reference (ToR) for engineering procurement and construction contracts.

•  Develop an implementation schedule and full scope of works required for the supply of equipment, civil works and installation of generation, transmission and distribution facilities, including house wiring.

 

Social

•  Assess possible barriers to the acquisition of land and the access to resource / generation sites, highlighting especially any potential land use change caused by the project

•  Assess the social benefits of electrification to the target communities, including gender, women, youth and the handicapped and underprivileged

•  Assess the potential productive uses of electricity;

•  Assess the potential impacts of the electrification options on the livelihoods of the target communities, highlighting particularly how the project is going to improve the social and cultural obligations of the disadvantage groups, especially women

•  Assess the capacity of the target communities to sustainably manage their electrification programme and identify required capacity building and awareness initiatives

  

Economic / Financial

 

•  Conduct an economic analysis of the electrification options including life-cycle costs, benefits and risks and constraints for the project activities and outputs

•  Identify economic indicators for the electrification options including, but not limited to, cost benefit ratio, pay-back period and internal rate of return

•  Assess the economic benefits of the project or components of the project to the disadvantaged, especially women

 

Environment

•  Assess the potential impacts of the electrification options on the environment, in particular to land use

•  Assess the compliance of the electrification option with environmental and other safeguards, government clearances and approvals, and identify any inconsistencies with current government policies.

•  Assess the potential greenhouse gas savings from the generation options

•  Assess potential CDM benefits to the target communities from the electrification options

 

Institutional / Management

•  Identify an institutional and management structure that would best promote the sustainability of the electrification services in the target communities

•  Design a monitoring and evaluation plan,

3.1 Output/Deliverables

The contractor will produce the following deliverables during the assignment:

i) Present a detailed Update Feasibility Study plan to the Energy Division. This Plan should specify the update feasibility approach; time schedule; data collected; analyzed data; costing and recommendation(s)

ii) Carry out the plan for the two schemes

iii) Present an Updated Feasibility Study Report for the two schemes (which should include the requirement stated in (i)

3) Duration and Phasing

The Update Feasibility study for the two proposed schemes shall be conducted after the 1 st July 2009 and not after 30 th November 2009. The final updated feasibility study report should be presented by the 1 st December 2009

4) Specification of Contractor

The work described above will at a minimum necessitate the deployment of relevant qualified and experience personnel(s)

5) Reporting Requirements

A Final Updated Feasibility Study Report is expected to be completed and handed over to the Energy Division on the 1 st December 2009.

6. Inputs

The following are the required inputs from the Energy Division: