World Bank: Procurement notice, Turkey Geothermal Development Project

Germencik 2 (Effe 3) Geothermal Power Plant, Turkey (source: Ormat Technologies)

developer developer 22 Aug 2016

The World Bank has issued a procurement notice (P151739) for its Turkey Geothermal Development Project.

The Republic of Turkey has applied for financing in the amount of US$ 40 Million from the Carbon Trust Fund (CTF) through the WorldBank as a Grant; and Turkiye Kalkinma Bankasi A.S. (TKB) and Turkiye Sinai Kalkinma Bankasi A.S. (TSKB) applied for a Loan in the amount of US$ 150 million and US$ 100 Million respectively from the World Bank toward the cost of the Geothermal Development Project, and they intend to apply part of the proceeds to payments for goods, works, non-consulting and consulting services to be procured under this project.

The project will include the following components:

Component 1, Risk Sharing Mechanism for Resource Validation: This component will establish a Risk Sharing Mechanism (RSM) for Resource Validation, to support the exploration and confirmation drilling stages. Funds will be channeled to Turkey through a World Bank administrated trust fund and will be utilized to support private sector geothermal investors. TKB will be the lead implementing agency of this Component.

Under this component, TKB will hire a consultant to establish and operate the RSM. The “RSM Consultant” will provide specialized financial and geothermal expertize to the RSM, specifically regarding the interpretation of surface exploration data, development of conceptual models, drilling and testing, and assessments of development and business plans provided by potential beneficiaries. It is envisaged that the request for expression of interest will be published in October 2016.

Component 2: Loan Facility for Resource Development: This component will set up a Loan Facility for Resource Development to provide financing to the resource development stage and to the power plant development phase. As the Financial Intermediaries (FIs) TSKB and TKB are expected to incentivize the developers to take more risk at earlier development stages than they would do under usual market conditions.

The procurements under this component will be conducted by private sector geothermal developers and they will apply well established commercial practices in the procurement of goods, works,non-consulting and consulting services.

Procurement of goods,works and non-consulting services for the proposed Project will be carried out in accordance with the World Bank’s “Guidelines: Procurement of Goods, Works and Non-ConsultingServices under IBRD Loans and IDA Credits & Grants” dated January 2011 and revised in July 2014; and

Consulting services will be selected in accordance with the World Bank’s Guidelines: Selection and Employment ofConsultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers dated January 2011 and revised in July2014.

Source: World Bank