Investment in 2000 MW Grid Connected Solar Energy

Expression of Interest Description:         Investment in 2000 MW Grid Connected Solar Energy

Investment Type:                                       Local and International Developer

Sector:                                                         Energy

Organization:                                             Ministry of Energy and Water

Country:                                                      Afghanistan

Issue Date:                                                  11/25/2018

Last Date of Submission of EOI:             12/31/2018

Point of Contact:  Email: f.sharafmal@mew.gov.af/ faridullah.sharafmal87@gmail.com

Copy to:  talha.hidayat@mof.gov.af  jawid.yosufzai@mof.gov.af

  1. Project Background

The studies show that Afghanistan has best resources for producing the Renewable Energy in the country, under the direction of the Minister of Energy and Water of the Islamic Republic of Afghanistan, invitees all local and international investors or project developers, to give their Expression of Interest (EOI) for investing in Solar Energy Projects in five selected regions.

The policy of the government of Afghanistan is to be self-reliance in the energy sector and may export energy to the neighbor countries. The Power Service Regulatory Act and the Public –Private- Partnership Law of Afghanistan aims to lay ground for private investors to invest in energy sector of the country.

More than 60% of the people across the country live in the dark homes, without access to reliable form of electricity with no connections to power grids or large-scale energy. Many lives in remote rural village communities and until they have access to energy services,  little progress can be made to develop and improve their lives, health, social equity and environmental protection access to reliable and sufficient sources of energy will be reducing poverty and hunger in long term.

Afghanistan’s power demand can be expected to grow at 12-15% p.a. over the next decade resulting in a supply shortfall of over 6000 MW by 2023. The country’s current domestic power supply is around 1.073 GWh or 22% of total supply; while power imports from central Asia and Iran account for 78% of total supply. Afghanistan only generates around 504 MW of electricity mainly from hydro power followed by fossil fuel and solar power. It is estimated that the country will need more than 3000 MW to meet its need by 2020, implying the need for a fundament up-shift in generation.

Currently, only around33-36 % of the Afghan population has access to electricity, though there is a large disparity, with 70% of the Kabul population having almost 24 hours access, on the other hand most of the rural population don’t have any kind of access to basic forms of electricity.

Energy is the key factor for any country’s economic growth. Development of the energy sector of Afghanistan is one of the high priorities of MEW and this is also very important for the stability of the region which will create investment opportunities and will also create jobs and bring considerable income.

To achieve the self-sufficiency goal, Government is working of different type of Energy Projects i.e. Hydro, Solar, Wind, Coal and Gas to power. Government has already awarded five energy projects one in Hydro, 2 solar and 2 gas to power projects. Soon the government will announce two hydro projects (Baghdara and Sarobi II) these projects will be implemented through PPP and relevant Government Agencies.

The Ministry of Energy and Water proposes the first lot of the Solar Energy Package with the total capacity of 2000 MW in Kabul, Jalalabad, Kandahar, Herat and Balkh Zones. This package will provide reliable power access to residence, businesses, schools and governmental institutions in general to ensure a success and the replication of the projects afterwards to all over the country.

  1. 2000 MW Package

The objective of this EOI is to use the solar resources and technologies that can be deployed in a techno-economically and environmentally sustainable manner in Afghanistan. The overall goal of this EOI is for that before commencing the Tender process know the interest of the private sector for investing in 2000 MW solar package in the mentioned sites of the country to provide power to local communities, local businesses, industrial parks for improve the living conditions of communities through the use of Solar resources by providing electricity services to all. Parallel to the EOI the government will also work on the detail Feasibility Study and identifying and allocation of the land for the implementation of the Project.

These Projects are located in large and populated areas of the country where national grid is available and the demand is also very high.

  1. Selected Cities/Provinces

In the Phase-I, the following provinces with their capacity as mentioned against each province have been selected under the proposed scheme.

No

Project Name

Zones/Provinces

Capacity MW

1

Kabul Solar Power Plant

Kabul

400

2

Nangarhar Solar Power Plant

Nangarhar

400

3

Kandahar Solar Power Plant

Kandahar

400

4

Herat Solar Power Plant

Herat

400

5

Balkh Solar Power Plant

Balkh

400

Based on proposed package, companies or developers can either invest in one of the projects in any particular province, part of the one project or number of the projects from the proposed list. If the investor is found to be interested, than after the approval of Feasibility Study, as per the PPP Legal Framework the Ministry of Energy and Water will initiate the Tender Process through Open Competition Procurement Method and as first step will issue pre-qualification document where the investors will be shortlisted for the next stage which is Request for Proposal. All those investors who have responded to the EOI and also all other investors who are interested to invest in these projects and did not response to this EOI can participate in the Tender Process.

Minimum bid capacity for all the provinces indicated in table above shall be 50 MW. The land for each project will be allocated from the government side to the investor. One project may comprise of several locations in a specified province.

  1. Project Timeline

All interested investors or project developers are expected to submit their EOI along with their company profile to Ministry of Energy and Water on or before (12/20/2018). The EOI should be sent to an email address specified at the top in contacts. A dedicated team would compile a list of all local and international companies to participate in the implementation of the listed projects in the mentioned provinces. The duration of the proposed projects implementation will be considered individually immediate after mutual understanding and signing of Partnership Contract with the government.

The interested companies may seek clarifications on any of the information provided in this request for EOI in writing by e-mail to MEW at the address mentioned in the contacts.

The EOI in response to this call shall be submitted by the companies or developers shall comprise of the following:

  • Cover Letter
  • List of Project/s from want to invest
  • Company Profile

No

Steps

Time

1

EOI (Issue and Submission)

4 Weeks

2

Completion of Feasibility Study (Including Land Identification and allocation)

12 Weeks

3

Approval of Feasibility Study

1 Week

4

Draft Bid Documents

4 Weeks

5

Approval of Draft Bid Documents

1 Week

6

Call for Pre-qualification

1 Week

7

Submission of Pre-qualification document

6 Weeks

8

Evaluation and Shortlisting  

4 Weeks

9

Call for Request for Proposal

1 Week

10

Submission of Request for Proposal

8 Weeks

11

Evaluation of Request for Proposal

4 Weeks

12

Approval of Prefer Bidder

1 Week

13

Contract Negotiation

4 Weeks

14

Approval of Award of the Contract

3 Weeks

15

Signing

1 Week