B -- MACEDONIA -- BOSKOV MOST IPP HYDRO POWER PROJECT FEASIBILITY STUDY

Notice Date

September 13, 2000

Contracting Office

USTDA, 1621 N. Kent Street, Suite 200, Arlington, VA 22209-2131

ZIP Code

22209-2131

Response Due

October 25, 2000

Point of Contact

POC Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009

Description

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 (FS) to examine the technical, financial, economic and environmental factors attending construction of a hydro power plant in Boskov Most. Macedonia must increase its generating capacity to keep pace with GDP growth, which is expected to average 4-5 percent a year between now and 2005. Currently Macedonia's current and planned power generation are in balance with the domestic consumption of electricity. Therefore Macedonia is not concerned so much with a shortfall in generation capacity but rather overall system reliability and safety. As part of this effort, Macedonia plans to expand its percentage of hydro power capacity to better balance its system and reduce its dependence on costly thermal-fired power plants. The proposed greenfield 45 MW hydro power plant Boskov Most will be situated near the town of Debar in western Macedonia, accessible from the Skopje-Debar-Ohrid highway. The dam will be constructed on the Mala Reka River. Studies have already been conducted by Yugoslav and Macedonian firms, including a prefeasibility study, environmental and social impact assessment, feasibility study and detail design. However, these previous efforts will need to be updated and verified in accordance with international financial community standards and requirements. More thorough information is necessary to bring this project to financial closure. Additionally, more detailed site preparation work is needed. The current design calls for construction of a 33.8 meter dam, 858,000 cubic meter storage impoundment reservoir, 11 kilometers of supply channels, 9 kilometer tunnel with a diameter of 2.7 meters, circular surge tank, two steel penstocks, and a powerhouse with two 22.5 MWe turbines and generators. The total capital cost of the project is estimated by ESM to be $54.55 million with a four year construction period. Estimated total annual revenues from the electricity generated from the Boskov Most project will be approximately $6.6 million, providing a nine year payback period. ESM will be the recipient of the electricity generated. Although various technical feasibility studies have already been undertaken, this study will focus on the financial aspects of this project. The purpose of this project is to involve an American IPP developer/technical partner/strategic partner from the outset, to move the project forward from the planning stage through project implementation to commercial plant operation. The TDA sponsored study would result in a final plan to achieve three strategic objectives: to modernize the paper recycling and manufacturing processes in order to maximize production capacity and increase efficiency and overall profitability: to study the market potential and lay the groundwork for the addition of a new plant to manufacture tissue paper: to prepare a comprehensive plan for the acquisition of the necessary equipment and technology for the implementation of both phases of the expansion and modernization system. Specifically, the study will require a number of tasks, as follows: (1) Review of previous feasibility studies and environmental impact assessments to serve as the basis for a comprehensive implementation plan and schedule. (2) Preparation of a proposed development plan for review of the various interested parties. (3) Updating of the feasibility study, conceptual design, and environmental assessment. (4) Development of a sound financing structure, including an overall risk mitigation strategy. (5) Development of draft project agreements, especially the power purchase and tariff agreements with ESM. (6) Preparation of a project information memorandum for lenders and potential investors. The U.S. firm selected will be paid in U.S. dollars from a $248,815 grant to the Grantee from the U.S. Trade and Development Agency (TDA). The study is estimated to cost $355,450, so there will be an implied cost share of $106,635 from the U.S. company selected to perform the study. A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and the Desk Study 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 no telephone 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 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 in English directly to the Grantee by 4:00 PM, October 25, 2000 at the above address. 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.

Record

Loren Data Corp. 20000915/BSOL003.HTM (W-257 SN495990)