Invitation for Expression of Interest for Consulting Services of Geothermal Risk Mitigation facility
The African Union Commission KfW Development Bank has launched Expression of Interest as first stage of an international open bidding procedure for the consulting services required for the establishment and operation of the Geothermal Risk Mitigation Facility.
The qualified independent consultant is expected to have expertise and experience in a) exploration and development of geothermal sites for power production and b) international procurement.
Geothermal Power in Eastern Africa
The geothermal resources in the East African Rift Valley could be used to feed more than 7,000 MW of clean, renewable power into the regional power system.
Despite the potential, geothermal resources in eastern Africa are still largely unexploited, primarily due to high costs and risks of proving the resource. The risk of failure of geothermal wells, about 30% internationally, is even higher in the region, because information from geothermal wells is still limited. These risks cannot fully be taken by developers.
The Geothermal Risk Mitigation Facility (GRMF)
The African Union Commission (AUC) and KfW designed the Geothermal Risk Mitigation Facility (GRMF) to assist public and / or private investment in early-stage geothermal drilling in eastern Africa with an initial focus on Ethiopia, Kenya, Rwanda, Tanzania and Uganda.
The Facility seeks to improve provision of baseload power to the regional grid at low costs and low emissions.
The GRMF Financial Agreements shall be signed in the second quarter of 2011. The German Government intends to commit grants of up to €20 million and the Facility is expected to have additional funding of about €30 million from other sources.
How the GRMF works
The GRMF will be hosted by the African Union Commission (AUC). The GRMF will provide grants to geothermal developers in the GRMF countries through a competitive and transparent two-stage application process. The GRMF will be managed according to procedures defined in an operations manual.
What will be supported by the GRMF?
The GRMF will include the following components:
- grants for drilling programmes comprising up to two wells, including direct grants and contingent grants (outcome based disbursement trigger).
- grants for surface studies for drill siting; establishment of a regional data base of geothermal sites; funding for implementing consultant.
Tasks of the Consultant
The AUC shall be supported by a qualified and experienced implementing consultant in the application and selection process as well as in the day-to-day management of the facility.
The consultant shall not only assess the applications of developers, but actually play a very active role by carrying out himself the annual application processes and all necessary steps for a successful operation of the GRMF in cooperation with the counterparts including assistance in financial administration. An Oversight Committee will approve applications and ensure that the GRMF meets its overall objectives.
Tendering for the Consultants Services
The contract for the consulting services will be awarded in an open international two-stage tender to independent, qualified consultants. Experience in surface exploration, drilling and development of high-enthalpy geothermal sites as well as experience in handling international tenders are essential for the consultant team.
Further information and updates on the project and tender are available on the website: www.financial-cooperation.com/GRMF.htm