Energy for Rural Transformation Project

The Government of Uganda (GOU) and World Bank approved Phase 3 of the ERT program and it commenced in April 2016. Phase 3 is a five year project and its development objective is to increase access to electricity in rural areas.

The project components include on grid and off-grid investments to enhance energy access. PSFU is contributing to the achievement of off grid energy access by providing business development support to activities that will;

1. Foster community-based schemes to expand access to the rural households through the construction of Six Pico /Micro hydropower projects in hard to reach areas in the country.
2. Strengthen the solar PV sector through supporting the organization and development of a self-sustaining solar energy umbrella body (the Uganda Solar Energy Association – USEA) that will effectively represent solar energy business interests and complement Government initiatives towards voluntary compliance with technical standards for supply and installation of solar energy products.
3. Scale up the number of skilled/certified individuals in electrical installation works.

REQUEST FOR EXPRESSION OF INTEREST

PRIVATE SECTOR PARTICIPATION IN THE PLANNNING, DEVELOPMENT AND STRUCTURING OF TWO MICRO-HYDROPOWER PROJECTS

BACKGROUND

The Government of Uganda approved Phase 3 of the Energy for Rural Transformation Project (ERT 3) which aims at increasing access to electricity in rural areas of Uganda. Private Sector Foundation Uganda (PSFU) is one of the project implementation partners and PSFU’s role is to provide business development support for rural access.   PSFU identified two villages in the foothills of the Rwenzori Mountains within Kasese District where electricity can be provided by the development of micro-hydropower projects using rivers or streams within those locations.  PSFU has completed feasibility studies and designs for the two identified projects and now wishes to secure private sector participation in the planning, development, financing, structuring, ownership and operation activities of one or both of the projects (Project A and Project B).

PROJECT A                        

Proposed Kitakhena Hydropower Project

The Nyambuku Village in Kasese District is one of the villages that have been identified for electrification through the development of a hydropower project located on the Kitakhena River. The village is now within an estimated 2 km from the National Electricity Grid. The proposed 200 kW Kitakhena River Hydropower Project is expected to provide the electrical energy to meet the demand of the Nyambuku Village and nearby surrounding areas. Alternative options that may harness additional potential of the site, based on interconnection with the national grid, may also be investigated and recommendations provided that include the technical, environmental and financial viability of each alternative. At this stage, estimates indicate a feasible project capacity based on a grid-connected project may exceed one Mega Watt (1.0 MW).

PROJECT B

Proposed Dungulilia Hydropower Project

The Kithabona Village in Kasese District is one of the villages that have been identified for electrification through the development of an off-grid hydropower project located along the Dungulilia River. The village is an estimated 4 km from the National Electricity Grid.   The proposed 270 kW Dungulilia River hydropower Project is expected to provide the electrical energy to meet the demand of Kithabona Village and nearby surrounding areas. Alternative options that may harness additional potential of the site, based on interconnection with the national grid, may also be investigated and recommendations to be provided that include the technical, environmental, and financial viability of each alternative. At this stage, estimates indicate a feasible plant capacity based on a grid-connected project may exceed one Mega Watt (1.0 MW).

PRE-QUALIFICATION CRITERIA

PSFU now invites eligible private sector firms to indicate their interest to participate in the planning, development, financing, structuring, ownership and operation activities of one or both of the above proposed projects. Interested firms should provide satisfactory information that demonstrates that they have the required qualifications, capacity, resources and relevant experience to plan, develop, finance, structure and/or operate one or both of the hydropower projects.

Prequalification will be evaluated based on the following criteria:

1. Documentation that proves the legal status as privately owned and privately operated firm. This should include up-to-date standard legal documentation proving the firm’s incorporation, ownership, directorship, governance structures and secretaries.  
2. Experience in planning, development, financing, structuring and/or operating at least one mini/micro hydropower projects.
3. Experience in managing and financing Feasibility Studies, Environmental and Social Impact Assessments (ESIA), power evacuation studies, Resettlement Action Plans (RAP), business planning, financial modelling and other relevant studies of mini/micro hydropower projects.
4. Experience in managing and financing the structuring of hydropower projects in developing countries.
5. Experience in managing and financing the feasibility designs, detailed engineering designs and construction of Mini/Micro-hydropower Projects.
6. Experience in managing and obtaining the financial close process with Development Finance Institutions (DFIs), Reputable Lenders and/or Export Credit Agencies (ECAs). Please include letter(s) from the DFIs, Reputable Lenders and/or ECAs in support of the firm.
7. Experience in managing and financing of the commissioning and operations of hydropower projects in developing countries.
8. Presence of appropriate professionals, competences and skills among staff in the firm in the areas of i) civil engineering, ii) electrical engineering, iii) mechanical engineering, iv) hydrology, v) Environmental and Social management, vi) Health and Safety Management, vii) Surveying, viii) geology, ix) construction management, x) project finance, xi) legal structuring and xii) financial management.

Bidders may associate with other firms in the form of a Joint Venture or Consortium to enhance their qualifications. The form of association signed and sealed by all the partners participating within the Joint Venture or Consortium where applicable, shall be submitted as part of the Expression of Interest.

Available project information includes recent Feasibility Studies, Environmental Project Briefs, Electricity Supply Studies, Bills of Quantities, Specifications and Tender Documents. These documents shall be made available to firms that submit a satisfactory Expression of Interest for one or both of the projects and are prequalified by PSFU.

For more information and inquiries, please email This email address is being protected from spambots. You need JavaScript enabled to view it. with a copy to This email address is being protected from spambots. You need JavaScript enabled to view it., before 04^th December 2020

SUBMISSION PROCEDURE

Expressions of Interest for either Project A and/or Project B described above shall be submitted ON-LINE to This email address is being protected from spambots. You need JavaScript enabled to view it. with a copy to: This email address is being protected from spambots. You need JavaScript enabled to view it., before 11.00 hours, East African Time on 17^th December 2020.

Expressions of Interest shall be submitted together with all the required documents to support the pre-qualification process.

Prequalified firms will be notified in writing and may be contacted for interviews/ discussions.  The pre-qualified firms will be requested to submit proposal(s) to plan and develop the project(s) that they have been prequalified for.

EXECUTIVE DIRECTOR

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