Mr. Robinson Mwansa, Managing Director; ZESCO Stand 6949, Great East Road, P.O. Box 33304, Lusaka 10101, Zambia; Tel: (260) 1 22 80 84; Fax: (260) 1 22 27 53

B -- FEASIBILITY STUDY:ITEZHI-TEZHI HYDROELECTRIC POWER PROJECT DUE 041596 POC Carol Stillwell, USTDA, Room 309, SA-16, Washington, D.C. 20523-1602, Tel: (703) 875-4357, Fax No.: (703) 875-4009 Itezhi-tezhi Hydroelectric Power Project. The Grantee invites submission of qualifications and proposal data (collectively referred to as the ''Proposal'') from interested U.S. firms which are qualified on the basis of experience and capability to develop a feasibility study for the Itezhi-tezhi Hydroelectric Power Project. ZESCO is the national electricity utility in Zambia. It is responsible for generation, transmission, and distribution of electricity throughout the country, and for interconnection with utilities in neighboring countries. Zambia has a large potential for hydroelectric power development, and currently has developed seven sites with a total installed capacity of 1632 megawatts. The Republic of Zambia Ministry of Energy and Water Development (Ministry) and ZESCO have applied to TDA to fund a study of the hydroelectric development potential of the Itezhi-tezhi Dam on the Kafue River. ZESCO envisions two interrelated projects, the construction of an 80 MW power plant to produce electricity at the Itezhi-tezhi Dam, and the heightening of the existing dam to provide a dependable water supply for both the proposed power plant and downstream uses. The Ministry would like to use the proposed Itezhi-tezhi project as a test case for private power development. The Ministry has been moving forward with institutional and legislative requirements to allow the private production of power. To facilitate this effort, TDA approved funding to the Government of Zambia and ZESCO. The request for assistance on the Itezhi-tezhi project is evidence of Zambia's commitment to the development of private power. The proposed TDA feasibility study would be used to attract U.S. independent power producers to this market. The selected consultant will perform three tasks. The consultant will begin with initial reviews and assessments; perform an economic and financial analysis; and produce reports and tender documents. The initial reviews and assessments will include a physical inspection of the existing dam and reservoir. The consultant shall prepare a report that will make a recommendation on the technical and financial feasibility of raising the height of the dam and the elevation of the reservoir. The consultant also will prepare an environmental impact assessment and a project evaluation. The consultant will review issues relating to topography and location, hydrology, geology and geotechnics. The consultant will perform studies that examine reservoir operations, power planning, preliminary engineering design and optimization, and other technical issues. The second major task will be an economic and financial analysis. The consultant shall conduct an economic analysis to confirm that the project is among the least cost solutions to meeting future capacity and energy requirements on the Zambian system. Comparisons will be made with alternative sources of power, and alternative time schedules for completion of competing projects will be evaluated. The consultant also shall perform a financial analysis that will include a detailed cash analysis during construction and operation, and maintenance costs over the lifetime of the project. The third major task will involve the preparation of reports and tender documents. The consultant will provide a draft and final report on its findings, as well as draft tender documents. The total cost of the study has been established at $280,000. The U.S. firm selected will be paid in U.S. dollars from a $100,000 grant to the grantee from the U.S. Trade and Development Agency (TDA), as well as by ZESCO, which is contributing $82,000. The U.S. firm chosen to perform the study will provide $100,000. A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background desk study report are available from TDA, at Room 309, SA-16, Washington, D.C. 20523-1621. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. Please include your firms name, contact person, address, and telephone number. Some firms have found that RFP materials sent by U.S. mail do not reach them in time for preparation of an adequate response. Firms that want TDA to use a courier delivery service should include the name of the courier company and your firm's account number in the request for the RFP. No telephone requests for the RFP will be honored. Only U.S. firms and individuals may bid on this TDA financed activity. Interested firms, their subcontractors and employees of all participants must qualify under TDA's nationality requirements as of the due date for submission of qualifications and proposals and, if selected to carry out the TDA-financed activity, must continue to meet such requirements throughout the duration of the TDA-financed activity. All goods and services to be provided by the selected firm shall have their nationality, source and origin in the U.S. or host country. The U.S. firm may use subcontractors from the host country for up to 20 percent of the TDA grant amount. Details of TDA's nationality requirements and mandatory contract clauses are also included in the RFP. Interested U.S. firms should submit their Proposal (8 copies) in English directly to the Grantee at the above address. The deadline for submission of the proposal to ZESCO is April 1, 1996. Evaluation criteria for the Proposal are included in the RFP. Price will not be a factor in contractor selection, and therefore, cost proposals should NOT be submitted. The Grantee reserves the right to reject any and/or all Proposals. The Grantee also reserves the right to contract with the selected firm for subsequent work related to the project. The Grantee is not bound to pay for any costs associated with the preparation and submission of Proposals. Evaluation of the project team will be based on the following criteria: (1) Civil Engineer - shall be a licensed professional engineer who has at leat 10 years experience and expertise in dam design and dam construction supervision, as well as in the investigation of the structural safety of existing dams. (2) Electrical Engineer - shall be a licensed professional engineer who has at least 10 years experience and expertise in the design and construction of electricity generation and transmission systems. (3) Biologist - shall have experience and expertise in conducting environmental assessments and environmental impact statements, with particular experience in south central African riverine habitats. (4) Financial Analyst - shall have experience in the financial analysis of large civil infrastructure projects and/or electircal generating projects, preferably with specific experience in large hydroelectric projects. (0054)

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