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Dar is set for Ruhudji hydropower station
By WILFRED EDWIN
THE EAST AFRICAN
Saturday, August 30 2008 at 16:04
Plans by Tanzania to construct a 358 MW hydropower station at Ruhudji River entered the decisive stage with the floating of the tender recently.
The Ministry of Energy and Minerals is seeking consulting services on financial and transactions to support the government and the Tanzania Electricity Supply Company (Tanesco) with the preparation, negotiation, and finalisation of the projects financing.
The project, estimated at $800 million and to be partly financed by a loan from the World Bank, will be done via a Public Private Partnership approach to be developed per best international market practices in respect of risk allocation and fair and equitable returns to project participants.
To develop this, the government said last week it will engage a legal advisor to support the groundwork of the project, which include key project agreements and associated documentation.
It is expected that the technical part will be carried out simultaneously and a prospective financing plan put together by the project sponsors.
The legal consultant will be expected to help Tanesco and the government to ensure the project is developed and structured in a timely manner as a bankable project in a manner consistent with the best international market practices for PPP power projects.
In the wake of recent massive failures in many power purchase agreements, that saw many political leaders shown the door, the consultant will also ensure that in the agreements, the interests of the government and Tanesco are reasonably protected.
Ruhudji is one of several hydropower projects targeted by the Tanzanian government in its power master plan. Others are the Mchuchuma Coal fired plant (200MW), and the Rumakali Hydropower Development (222MW).
Around 90 per cent of Tanzanias energy needs is met by woodfuel. Petroleum and electricity account for eight per cent of energy consumption while coal and other sources cover less than one per cent.
Tanzanian has tried to diversify its sources of energy, but with limited success. Electricity supply has been erratic because of the national grids heavy reliance on hydroelectric power.
Tanzanias sole producer and supplier of electricity, Tanesco continues to face a severe budgetary shortfall, due to unpaid electricity bills by the government.
Experts argue that the country should choose the most appropriate interconnection point and to negotiate for power exchanges with Kenya and Uganda.
Serikali iliwahi kutoa ujumbe huu:
By WILFRED EDWIN
THE EAST AFRICAN
Saturday, August 30 2008 at 16:04
Plans by Tanzania to construct a 358 MW hydropower station at Ruhudji River entered the decisive stage with the floating of the tender recently.
The Ministry of Energy and Minerals is seeking consulting services on financial and transactions to support the government and the Tanzania Electricity Supply Company (Tanesco) with the preparation, negotiation, and finalisation of the projects financing.
The project, estimated at $800 million and to be partly financed by a loan from the World Bank, will be done via a Public Private Partnership approach to be developed per best international market practices in respect of risk allocation and fair and equitable returns to project participants.
To develop this, the government said last week it will engage a legal advisor to support the groundwork of the project, which include key project agreements and associated documentation.
It is expected that the technical part will be carried out simultaneously and a prospective financing plan put together by the project sponsors.
The legal consultant will be expected to help Tanesco and the government to ensure the project is developed and structured in a timely manner as a bankable project in a manner consistent with the best international market practices for PPP power projects.
In the wake of recent massive failures in many power purchase agreements, that saw many political leaders shown the door, the consultant will also ensure that in the agreements, the interests of the government and Tanesco are reasonably protected.
Ruhudji is one of several hydropower projects targeted by the Tanzanian government in its power master plan. Others are the Mchuchuma Coal fired plant (200MW), and the Rumakali Hydropower Development (222MW).
Around 90 per cent of Tanzanias energy needs is met by woodfuel. Petroleum and electricity account for eight per cent of energy consumption while coal and other sources cover less than one per cent.
Tanzanian has tried to diversify its sources of energy, but with limited success. Electricity supply has been erratic because of the national grids heavy reliance on hydroelectric power.
Tanzanias sole producer and supplier of electricity, Tanesco continues to face a severe budgetary shortfall, due to unpaid electricity bills by the government.
Experts argue that the country should choose the most appropriate interconnection point and to negotiate for power exchanges with Kenya and Uganda.
Serikali iliwahi kutoa ujumbe huu:
THE UNITED REPUBLIC OF TANZANIA
Development of Ruhudji Hydropower Project
Sector: Energy
Consultancy for Legal Advisory Services towards Development of Ruhudji Hydropower Project
TENDER No. 01 OF 2007/2008
EXPRESSION OF INTEREST (EOI)
Background:
The Government of Tanzania (Ministry of Energy and Minerals) intends to finance the assignment/services described below. A request for grant financing for the proposed activity has been submitted to the World Bank managed Private Participation in Infrastructure Advisory Fund (PPIAF).
Objective:
The objective of the assignment is to help retain the services of legal advisors, in two phases, to support Government in negotiations for the project agreements as per market standards, which, in turn, will allow the timely development of the Ruhudji hydropower project. Under Phase I (subject of this request), the Consultant (Legal Advisors to MEM and TANESCO) will help develop, review, and negotiate key project documents such as the Project Development Agreement, Heads of Terms of the Concession Agreement and the Power Purchase Agreement for Ruhudji Hydro Power Project.
Design of the Project:
The Ruhudji hydropower project will be designed with the capacity of 358 MW to generate 2000 Gwh of electricity per annum. The Ruhudji hydropower project will be located on the Ruhudji River and the Project Cost is estimated to be in the region of USD 700-800 million. The projects financial closure is projected to be achieved within 3 years. In Phase II (not the subject of this request), it is expected that further legal support will be required with respect to finalization of the concession agreement, detailed review of the construction contracts, mobilization of finance etc.
Invitation for Expression of interest:
The Ministry of Energy and Minerals now invites eligible consultants to indicate their interest in providing the services. Interested consultants must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, for similar projects and in sub-Saharan Africa, availability of appropriate skills among staff, etc.).
Consultants will be selected in accordance with the procedures set out in the World Bank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers May 2004.
Interested consultants may obtain further information at the address below. Expressions of interest must be received by regular mail, and preferably by electronic mail to the address below by August 17, 2007.
Permanent Secretary,
Ministry of Energy and Minerals
Samora Avenue
P.O. BOX 2000
Dar es Salaam,
Tanzania.
Att: E.S. Assey (Secretary to the Tender Board)
Telephone Contact: +255 22 134955
Fax Contact: +255 22 120799
E-mail: uisso@mem.go.tz