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Request for Quotations

Pre-feasibility study of the Sinivit Geothermal Power Generation Project (SGPGP), Papua New Guinea

Background:

The Pacific Islands Green House Gas Abatement through Renewable Energy Project (PIGGAREP) is a regional climate change mitigation project that was approved for funding by the Global Environment Facility (GEF) in September 2006.The project is for eleven Pacific Island Countries (PIC) – Cook Islands, Fiji, Kiribati, Nauru, Niue, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu with the United Nations Development Programme (UNDP) as the GEF Implementing Agency and the Secretariat of the Pacific Regional Environment Programme (SPREP) as the Implementing Partner.

The global environment and development goal of PIGGAREP is the reduction of the growth rate of green house gas (GHG) emissions from the fossil fuel use in the 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 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.

Papua New Guinea is one of the participating PICs in the PIGGAREP and one of the activities in its 2008 Work Plan and Budget is PN-11: PNG Sustainable Energy Limited (PNGSEL) - Bismark Energy Ltd and New Guinea Gold Collaboration on Geothermal Energy. The PIGGAREP support to this activity will be to carry out a pre-feasibility study of the project.

Instructions to Offerors:

• The Quotation must cover all the objectives, outputs and activities as specified in the TOR (Annex A);
• The Quotation must include costs for professional fees, travel and Per Diem;
• As part of PIGGAREP’s capacity building activities, PNG SEL shall support the costs of its staff to join the international consultant(s) as the local coordinator and a trainee;
• US$ only must be used in the Quotation;
• The Quotation must include: i) an updated CV of the individual/s who will undertake the consultancy 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 v) a preliminary methodology and work plan (maximum 3 pages);
• The consultancy preferably should commence in May 2008 and must be completed before end of July 2008;
• 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 Quotation is received prior to the formal submission date corrections/modifications can be made up to that date;
• The Quotation must be submitted in electronic format only (Word or PDF format, 1 MB max) by email to the e-mail address specified below;
• The consultancy must be undertaken with field visits to the project site. The exact number of working days will be determined subsequently between the successful Contractor, PNG SEL and PIGGAREP.

The final working plan will be determined subsequently between the successful Contractor, PNG SEL and PIGGAREP.

Award of Contract and Evaluation Criteria:

Quotations will be evaluated according to the following criteria:

1. Price (20%)

2. Relevant Experience in Geothermal Studies (30%)

3. Experience with Papua New Guinea / or Pacific Island Countries energy and socio-economic environments (20%)
4. Methodology / Work Plan (30%)

All quotations must be addressed to:

                      The Director

                      SPREP                                            Telephone: (685) 21 929

                      PO Box 240                                     Fax:   (685) 20 231

                      Apia, Samoa                                   E-mail: SPREP@sprep.org

Deadline for the submission of quotations is 30 April 2008, Samoa time.

Contact Information:

ANNEX A

TERMS OF REFERENCE

Pre-feasibility study of the Sinivit Geothermal Power Generation Project (SGPGP), Papua New Guinea

Background

PNG Sustainable Energy Ltd (PNG SEL), in pursuing its missions to identify, develop and/or acquire generation facilities and to operate and manage sustainable energy systems in Papua New Guinea, wishes to participate in investigations and development of a possible geothermal project in the Sinivit area of East New Province (project).

PNG SEL is investigating the feasibility of the project at the request of the New Guinea Gold Limited, the developer of the Sinivit gold mine. PNG SEL now wishes to engage the services of a consultant to undertake a pre-feasibility study of the geothermal potentials within the Sinivit SML and surrounding areas.

Previous Studies of th

e Study

Note: other beneficial studies may be available.

Scope of the Study

Studies into the development of geothermal resources in the Sinivit area, East New Britain Province will require input from several engineering and related disciplines. Studies will be based on past reports and other available data, including fieldwork.

The consultant will carry out the following tasks:

1. Geological Studies

• Research and collect any geological information from the area.

• Review the assessment of the geological conditions for the main works and the interpretation of results for the latest trends in harnessing geothermal resources.

• Identify need for any further site investigations to be carried out for next stage of project implementation.

• Preliminary assessment of availability, quantity and properties of potential construction materials (site visit and make estimation of deposit).

• Undertake seismic probe assessment and the interpretation of results for the latest trends in the development of geothermal resources.

• Identify the best locations for the geothermal prospects.

• Digitalize geological map and clearly indicate suitable locations for further detailed assessments.

2. Topographical Studies

• Review of topographical data and confirm additional topographical data requirements for next stage of project implementation

• Digitalize contour map for the project site, potential sites, transmission line and access road with reference to the Sinivit gold mine and other potential consumers.

• Establish a general assessment and identification of suitable locations employing best technics for seismic and test-drilling activities based on recent available geological information.

3. Environmental Impact Studies

• Conduct a preliminary assessment of the potential environmental impact from construction of the geothermal power station and associated works, and provide advice as to whether further studies and activities may be required for full EIA and EMP.

4. Social and Development Analysis

• Conduct a preliminary assessment of the potential impact of the project on the surrounding region and Papua New Guinea in general from a social perspective, including resettlement, and state any development outcomes that will be achieved by the construction of the proposed geothermal power station. Provide advice as to what further studies and activities may be required.

5. Civil Design Investigation

• Review current project layout arrangement.

• As appropriate, explore alternative project arrangement and confirm best option for development using digitalized contour maps.

• Prepare concept design for the power station and associated infrastructure.

• Prepare a General Arrangement drawing showing project features in sufficient detail to enable preliminary cost estimates to be updated.

• Construction schedule based on client requirements.

6. Capacity and Yield Analysis

• Review and optimise generation potential in light of latest plant and plant efficiencies and based on latest geophysical data. This will require employing reliable and crude technics to perform assessments on capacity and yield for geothermal power potential based on selected sites.

7. Electrical and Mechanical Design Investigations

• Determine station arrangements.

• Determine transmission systems requirements.

• Concept designs for the power station and transmission systems allowing for the transmission of electricity to New Guinea Gold (NGG) and other potential customers including PNG Power (PPL).

8. Investigation of Potential Customers

• Assess the technical, financial and political viability of the sale of electricity to:

• Existing consumers in ENB, especially sale of electricity to PPL and allowing for future growth in demand,

• Potential new customers, such as landowners within the project surround.

9. Cost Estimate and Financial Analysis

• Provide cost estimates based on the concept designs and delivery approach.

• Carry out financial analysis based on the cost estimates and current financial parameter.

• Take into account potential earnings through the Clean Development Mechanism.

10. Project Implementation Schedule

• Provide a tentative project implementation program identifying major project activities, cost and duration based on current practices.

11. Risk Assessment

• Undertake a project implementation risk assessment and implications to the project in light of available information.

Manpower Requirements

Personnel input requirements and indicative times to complete the project tasks should be indicated.

Study Duration and Reporting

1. Study Duration

• The program for undertaking the above tasks and the personnel required are to be clearly identified.

2. Reporting

• At the conclusion of the study and tasks, the consultant shall prepare a report incorporating all of the reviewed and updated data, with an updated assessment of the technical and financial viability of the Sinivit Geothermal Power Station Project as at the date of the study.

• A draft report incorporating preliminary design and documentation of all components of the project and the geological report should be submitted. The final report shall be submitted within 2 weeks of any PNG SEL and PIGGAREP comments on the draft report.

3. PNG SEL Liaison

• The consultant shall keep PNG SEL and the PIGGAREP Project Manager informed throughout the duration of the study of the progress made and any issues, which may require the attention or action of PNG SEL and the PIGGAREP Project Management Office.

Financial Proposal

The contract for consulting engineering services for the project will be on a lump-sum basis. However, the consultant shall submit with their financial proposal a list showing the monthly fee rate of each nominated project team member, and a description of the expenses which have been allowed for in the lump-sum price offer for undertaking the consulting engineering services. The lump-sum price shall include any taxes and duties payable by the consultant in Papua New Guinea and in any other country.