The Geothermal Development Company of Kenya is inviting expressions of interest for the development of 8 geothermal power plants with a capacity of each 100 MW at Bogoria Silali in Northwestern Kenya. Details can be found on GDC’s website (pdf).
GDC is undertaking steam field development in the Bogoria-Silali Block which comprises Bogoria, Baringo, Arus, Korosi, Chepchuk, Paka and Silali prospects. Detailed surface studies estimates the Block’s potential to be about 3000 MW. The current plan is to develop 2000 MW within this Block in four phases; Phase I- 800 MW by 2017, Phase II-400 MW by 2019, Phase III-400 MW by 2021 and Phase IV-400 MW by 2023.
The 800MW Bogoria-Silali Phase I Geothermal Project in configurations of 8x100MW power plants is projected to be completed by 2017. A total of 200 wells will be drilled using 8 rigs starting in January, 2012.
Detailed surface studies have been completed and acquisition of regulatory licenses is in progress. Infrastructural development will start from July, 2011.
GDC intends to short list potential investors to develop 8x100MW power plant units at its Bogoria-Silali Block.
Under this project, GDC will undertake Resource Development and Management covering the Development of Civil Infrastructure, Exploration and Appraisal Drilling, Feasibility Studies, Production Drilling, Reservoir, Condensate and Brine System Management.
The Investors role will include financing, design, construction, operation and maintenance of the power plants. In addition, subject to positive feasibility study, GDC will require the selected investors to partner in financing the steam development. Funds obtained from the investors, on terms and conditions to be agreed, will be a loan to GDC which will be repaid from steam sales revenues.
While steam field is under development, the investor will have the opportunity to install wellhead generation units for early power generation. The Government of Kenya will not provide sovereign guarantees relating to this investment and therefore the investors should seek other alternatives such as MIGA (World Bank)
This Expression of interest will result in short listing of interested investors who will be invited to submit proposals. It is expected that the short listing will be completed by September, 2011 followed by request for detailed proposal. The Selection of preferred investors will be completed by December, 2012. The award to the preferred investors will be subject to the investor successfully negotiating a Power Purchase Agreement (PPA) with Kenya Power and Lighting Company Limited (power off-taker), securing a generation license from the Energy Regulatory Commission, conclude a steam (fuel) supply agreement with GDC, obtain ESIA license for power generation from NEMA and conclude financing within ONE (1) YEAR from December 2012.
A period of 30 months will be provided for power plant construction.
The submission of Expressions of Interest must be deposited in the Tender Box on the 1st Floor, GDC Riverside Office, Riverside Drive, Nairobi no later than 14:00hrs on August 8, 2011. All late submissions will be rejected.
Source: GDC Tender announcement (pdf)