Five groups shortlisted for 140 MW PPP Olkaria VI project with KenGen, Kenya

Five groups shortlisted for 140 MW PPP Olkaria VI project with KenGen, Kenya Construction of Olkaria V geothermal power plant, Kenya Oct. 2018 (source: LinkedIn/ Roberto Razo)
Alexander Richter 12 May 2020

Five groups have been shortlisted for the next stage in the tender for the 140 MW public-private-partnership Olkaria VI geothermal project by KenGen in Kenya.

In its tender for bids of the development of up to 140 MW of the Olkaria VI geothermal power project in Kenya, KenGen has now announced that five firms have been shortlisted. The tender launched in 2019, was extended to February 2020, as we reported.

Kenya plans to build a 140MW geothermal power plant under the public-private partnership (PPP) framework, entailing the development of a geothermal power generation plant on a Build, Own, Operate and Transfer (BOOT) basis.

“The successful bidder will enter into a joint venture with KenGen and will finance, construct, own and operate the power plant and the associated facilities and transfer the project back to KenGen at the end of the operational term,” the company said.

This will be the first Public Private Partnership (PPP) Project to be developed by KenGen under the PPP Act 2013 and the PPP Regulations 2014.

The process comprises three distinctive phases, with phase one – the feasibility study and due diligence – undertaken and completed.

Phase two includes the first stage – request for prequalifications – also having been successfully completed and commenced. Advertised in November 2019, it was closed February 2020. Qualifying bidders were Ormat Technologies Inc, ITOCHU Corporation, Sumitomo Corporation, Enel Green Power and a consortium of Engie Energie Services, Toyota Tsusho Corporation, Kyuden International Corporation and DL Koisagat Tea Estate were shortlisted as qualified bidders and published on Friday, May 8th, 2020.

With the publication of the names for the five bidding consortiums, the second stage is set for procurement process which is the Request for Proposals (RfP) stage. The RfP will be issued to the shortlisted bidders in the month of June 2020. The bidder who will be picked from the RfP stage will be the Successful Bidder and will proceed to the third phase of the project.

In the third phase of the PPP process, the project will see start of construction following the successful negotiations and execution of required project agreements by the successful bidder.

The Successful Bidder will enter into a Joint Venture with KenGen and incorporate a Special Purpose Vehicle (SPV) in accordance with the laws of Kenya. KenGen will be a shareholder in the SPV and will enter into a long-term power purchase agreement with Kenya Power. The SPV will enter into a long- term steam supply agreement with KenGen. The Project will then transfer to KenGen at the end of the PPA term.

Source: Metropoltv