Mr. Eddie Khanda, ESKOM, Tech Research. & Investig., Houer Rd, Rosherville, Gauteng, Rep. of South Africa, Tel.:011-27-11-629-5172, Fax: 011-27-11-629-5392

B -- SOUTH AFRICA: FLUIDIZED BED COMBUSTION FEASIBILITY STUDY POC Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009 The Grantee invites submission of Prequalification Statements from interested U.S. firms that are qualified on the basis of experience and capability to develop a feasibility study on a proposed fluidized bed combustion project in South Africa. Based upon the Prequalification Statements, the Grantee will develop a short list of qualified firms which will be invited in writing to submit a formal Technical Proposal to carry out the study. ESKOM, a power company of South Africa, currently generates 91% of its electricity by conventional coal-fired plants with an overall capacity of 30,000 MW. In response to future demand, ESKOM developed an Integrated Electricity Planning (IEP) process, aimed at investigating and integrating both supply side and demand side options as part of a long-term strategic plan. Knowing that Fluidized Bed Combustion (FBC) technologies had been applied to burn coal waste in other countries, ESKOM's IEP conceptually identified the use of discard coal as a fuel source and undertook aseries of studies to assess the technical feasibility and economic viability of South Africa's discard coal inventory as a fuel source for future power generation. Discard coal has been identified as the single biggest volume of industrial waste in South Africa. The South African coal mining industry produces 20% of its total mined product as a waste resulting from coal beneficiation. This low-grade product is characterized by high quantities of ash, sulfur, mineral, and other organic elements. Annually, 55 million tons of discard coal are being generated, and it is estimated that by the year 2002, the accumulated discard coal inventories in South Africa will reach 1 billion tons. In 1997, ESKOM identified a specific opportunity to investigate and demonstrate the overall viability of FBC technology as an option to utilize South African discard coal: retrofit (repower with FBC) one of the nine conventional PCF units at its mothballed Komati generating station north of Pretoria. ESKOM believes a successful demonstration of waste coal fired FBC technology at Komati might be the precursor to future repowering of certain other mothballed facilities. ESKOM reported the results of its Komati pre-feasibility study to stakeholders in South Africa and has agreed, in principal, to establish a joint venture with the South African coal companies Amcoal and Ingwe that will: a) facilitate a full-scale study; b) sponsor and/or assist in financing the pilot project; c) assure a fuel supply for the project; and d) serve as the pre-cursor of a company that would commercially repower future FCB units. ESKOM has requested TDA assistance in cost-sharing the study on this pilot project and would consider the U.S. company which undertakes the study for follow-on work in the project's implementation and ultimately as a partner in the joint venture. The feasibility study consists of two principal components, the first of which is an extensive series of test burns to evaluate and catalog the existing discard coal reserves and an engineering study on repowering the Komati unit. This former is estimated to cost $600,000 and will be undertaken by the South African project sponsors as their cost-sharing contribution to the study. The remaining terms of reference will cost $650,000 and will be funded by a TDA grant ($500,000) and cost sharing from the U.S. company ($150,000). The tasks for the study are as follows: 1) collect, review and assess existing data bases; 2) develop a work plan for the feasibility study; 3) investigate waste coals; 4) investigate limestone/dolomite resources; 5) conduct an audit of the Komati Plant; 6) perform engineering analysis; 7) develop operating models and operating cost analysis; 8) prepare design study and engineering plan; 9) conduct a qualitative environmental assessment; and 10) produce final feasibility study report. The study has been estimated by TDA to cost US$1,250,000. In addition to the TDA grant funding of US$500,000, and the Grantee test burns contribution (estimated at US$600,000), the Contractor and/or its subcontractors must cover the remaining costs required to complete the full Terms of Reference. A detailed Request for Proposals (RFP), which includes the requirements for submission of the Prequalification Statements and the Technical Proposal, the Terms of Reference, and a background definitional mission report are available from TDA, at 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. In the fax, please include your firm's 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 an overnight delivery service should include the name of the delivery service and your firm's account number in the request for the RFP. Firms that want to send a courier to TDA to retrieve the RFP should allow one hour after faxing the request to TDA before scheduling a pick-up. Please note that notelephone requests for the RFP will be honored. Please check your internal fax verification receipt. Because of the large number of RFP requests, TDA cannot respond to requests for fax verification. Requests for RFPs received before 4:00 PM will be mailed the same day. Requests received after 4:00 PM will be mailed the following day. Please check with your courier and/or mail room before calling TDA. 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 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 Prequalification Statements as outlined in the RFP in English directly to the Grantee by 4:00 p.m. on Monday, May 17, 1999 at the above address. Evaluation criteria for the Prequalification Statements and the Technical Proposals 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 Prequalification Statements or Technical 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. Posted 04/06/99 (I-SN316812). (0096)

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