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Renewable Energy Power Plant Proposals for Isolated Power Grids
Expression of Interest for Independent Power Producers
1.0 General Information
PNG Power Ltd (PPL) is a State owned Corporation with the Government’s ownership interest held by
the Independent Public Business Corporation (IPBC). The company is a vertically integrated utility
involving in generating, transmitting, distributing and retailing of power throughout Papua New Guinea
(PNG). PPL has major transmission and distribution networks in Port Moresby, Ramu Valley and Gazelle
Peninsula (Rabaul) that are partly supplied by hydropower plants. It also supplies electricity to 16
regional centres predominantly by diesel powered thermal generation.
2.0 The Project
PPL now is calling for expression of interest (EOI) from interested firms who wish to be considered for
operating renewable energy power plants in PPL’s isolated diesel centres under IPP BOOT arrangement.
Centres considered for this development include Aitape, Alotau, Arawa, Finschaffen,Kerema, Daru,
Manus, Maprik, Vanimo, Wewak, Rabaul, Kimbe/Bialla and Samarai.
Accordingly, it is necessary that firms wishing to participate in this process must design, finance,
construct, own, and operate power plant(s) that are commensurate with the demand profiles of those
centres as summarised below. The proposed power projects can be complementary to, or completely
replace,the existing generating assets of a particular centre.
Only Hydropower, Geothermal, Solar, Biomass and Wind Power plants will be considered.
Center
Aitape
Alotau
Arawa
Daru
Finschaffen
Gazelle (Rabaul)
Kerema
Kimbe/Bialla
Manus
Maprik
Samarai
Vanimo
Wewak
Peak (kW)
Base Load (kW)
Energy (MWh)
277
2670
557
700
150
9,730
319
4,272/ 551
1,299
323
137
1,180
3,609
133
1,149
253
450
75
5,200
156
1,677/ 323
656
150
75
555
1,847
1,297
12,441
3,010
4,096
767
51,310
1,610
15,012/3,030
6,977
1,772
245
5,532
17,144
3.0 The Objective
The explicit objective of this EOI and subsequent competitive procurement process is to (partly) replace
high cost diesel generation with Hydro, Geothermal, Solar, Biomass or Wind power, so as to achieve a
financial benefit for PPL and the electricity consumers.
PPL is interested in outstanding individual project proposals as well as strategic partnerships that involve
several centres and/or technologies.
PPL invites prospective bidders to express interest in being considered in a shortlist to be invited later to
submit full proposals for the development of renewable energy power plants under Power Purchase
Agreement (PPA) with PPL.
4.0 Prospective Developer’s Minimum Requirements
In order to pre-qualify, the interested bidders must:
(a) Submit certified copies of company registration certificates/documents required to prove legal
status;
(b) Demonstrate access to competent, construction, commissioning, operation and maintenance
contractors;
(c) Provide evidence of capability to mobilize adequate financing;
(d) Provide evidence of successful involvement in other projects or ventures relevant to the EOI;
(e) Have strong balance sheet that can demonstrate the ability and capacity to fund this project
(f) Provide audited financial statements for the last 3 years;
(g) Provide letter of recommendation from its Bankers;
(h) Demonstrate a capacity to construct and commission the power plant (s) within twelve to twentyfour (12-24) months after contract award or upon execution of the PPA.
5.0 The following documents shall be submitted
(a) Documents detailing that the party(ies) fulfill(s) the minimum requirements in 4.0 above;
(b) Certificate of incorporation (and any certificate of incorporation on change of name) and
constitutional documents, certified by an authorize representative of the bidder or (as the case
may be) the consortium member;
(c) Certified copies of Memorandum/Articles of Association;
(d) Where the bidder is a consortium, a list of members of the consortium and the estimated
percentage of funding to be granted by each of them including the documents evidencing the
formation of the consortium and the proposed ownership structure; and
(e) Confirmation from the bidder or, where the bidder is a consortium, each member of the
consortium that there does not exist any conflict, which would prevent the bidder or, as the case
may be the consortium member from contracting with PPL.
6.0 Clarification
Interested parties may request for clarifications on the EOI up to four (4) days before the EOI submission
date. Any request for clarification must be sent in writing by paper mail, facsimile, or electronic email to:
The Director Strategic Planning & Business Development
PNG Power Limited
Cnr Wards Rd/Cordia St, .Hohola
PO Box 1105, Boroko, NCD,
Papua New Guinea
Tel: 675 324 3546
Fax: 675 325 0008
Email: [email protected]
7.0 EOI Submission
All EOI submissions are to be received by PPL no later than 4:00 pm Friday the 30th of January 2015
with all envelopes clearly labelled “Expression of Interest for renewable IPP(s) in diesel centres” and
addressed to Mr Chris Bais using the address above.