QUALIFICATIONS REQUIREMENTS FOR INVESTORS TO PARTICIPATE IN FEED-IN TARIFF SCHEME

Transcription

1 Ministry of Electricity and Renewable Energy Egyptian Electricity Holding Company Egyptian Electricity Transmission Company QUALIFICATIONS REQUIREMENTS FOR INVESTORS TO PARTICIPATE IN FEED-IN TARIFF SCHEME Nov. 4 th, 2014

2 REQUIREMENTS FOR QUALIFICATIONS REQUESTED FROM INVESTORS FOR ELEGIBILITY TO PARTICIPATE IN FEED-IN TARIFF SCHEME I. INTRODUCTION: The Government of Egypt (GoE) represented by the Ministry of Electricity and Renewable Energy (MoERE) has adopted a Feed-in Tariff (FiT) scheme for both solar and wind energy as an effective investment that supports deployment of Renewable Energy (RE) in Egypt. According to this scheme, the electricity transmission company (EETC) and distribution companies (DCs) are committed to purchase the produced electricity from RE power plants at the prices announced by the Cabinet of Ministers. Based on this scheme the GoE will not subsidize the purchased energy from renewable energy producers. The cost bared by the government will be transferred to consumers. The Egyptian Electricity Regulatory Agency (EgyptERA) has set the required regulations and procedures for executing the Renewable Energy Feed- in Tariff (RE FiT) projects. The MoERE aims to support investment in RE through FiT by setting a target of 4300 MW in the first regulatory period. This includes 300 MW of PV projects below 500 kw, 2000 MW for projects starting from 500 kw up to 50 MW, 2000 MW from wind energy with project capacities ranging from 20 MW up to 50 MW per project. The new tariff will be only applied to the projects that will be contracted after the issuance of the new tariff. The first regulatory period ends when either achieving the set targets or after two (2) years, which is first. Moreover, GoE shall set the regulations for the allocation of state owned lands through a usufruct agreement that lasts for period equals to the life time of the project according to FiT regulation in this respect. All RE projects shall have priority of dispatch and the EETC & DCs shall sign a (take or pay) Power Purchase Agreement (PPA) with the investors for a period of twenty (20) years in case of wind projects and twenty-five (25) years in case of PV projects. In this context, EgyptERA has developed RE regulations for RE FiT projects, including the procedures of projects execution using a one-stop-shop technique. The one-stop-shop, presented by the Central Unit for RE FiT s located at MOERE premises, 12 th floor at Abbasia, Cairo, aims to facilitate the procedural steps for starting a project. This unit shall be responsible for qualifying investors according to their previous experience, organizational and financial structures as a pre-requisite before going on with the other procedures. II. PURPOSE: This document aims to set the criteria for qualifying investors applying for the RE FiT projects with capacities from 500 kw and above. The investor can apply for qualification for one (1) time regardless the number of projects he wants to establish such that each project should not be more than 50 MW. Investors shall be qualified according to the criteria mentioned in Attachment (1). The investor is considered to be qualified if he receives 650 points or more, by that he will be eligible to continue with the other procedures. Otherwise, he will be informed by the reasons for being unqualified and he can re-apply afterwards. Page 2

3 III. NOTES TO INVESTORS 1. Date and Address of Submitting the Required Documents Investors shall submit their required documents in three(3) original hard copies to the address of the Central Unit for Feed-in Tariff and one (1) soft copy to the following address. Address: Central Unit of Feed-in Tariff, 12th floor, EETC premises, Abbasia, Cairo Tel: Fax: address: 2. Language The qualification documents shall be written in Arabic or English. Any documents submitted in other languages shall include an official translation to Arabic or English. 3. Required Documents Investors shall submit documents according to the following order: a. Title Page: The title page shall be titled as follows: QUALIFYING INVESTORS FOR FEED-IN TARIFF PROJECTS IN EGYPT The title page should include the following data: For the Investor and for each of the Consortium Members (if any) Name of Company: Type of Company:(shareholding/special purpose/joint venture ) Company`s Main Activity: Issued Capital: Paid Capital: Commercial Registration Number : Address: Company s official Website: Telephone: Fax: Contact Person Name: Title: Telephone: Fax: Page 3

4 If the investor is a Consortium, then: a) The Consortium s name should be stated on the title page and all the attachments, b) The title page must be signed by an authorized representative from each of the consortium members, and c) All the documents required for the purpose of this qualification process are requested from each of the consortium members b. Introduction: The investor shall provide: Description of the company/consortium including a description of the leading company and the other member companies, the particular area of the anticipated responsibility of each member as well as the proposed RE FiT projects Feed-In tariff program projects, In case of committed Consortium, as well as each of the consortium s members, shall submit Letters of Intent, In case of uncommitted Consortium, the consortium shall identify their potential subcontractors and their specified jobs, and Brief description of the RE FiT projects, the Consortium intend to have within the first regulatory period. The description includes, but not limited to, the following information: Technology: Installed Capacity: Number of Units: Net Energy Generated: Expected Commercial Operation Date: Any other information: c. Approach and Understanding: The investor shall provide: Detailed description and approach for the development of each project the investor intend to have in the FiT program (site measurements/development plan / project time schedule /organisation chart / team profile /work plan/profile of participating organisations,.etc), Description for the investor s understanding for the necessary steps/approvals / requirements/land acquisition/mitigation of associated risks and other procedures and regulations that are needed to develop RE FiT projects, Method of financing the RE FiT projects; and Plan for the construction, operation and maintenance of the intended projects. d. Qualifications and Experience The investor should provide their last five (5) year accomplished projects (not limited to the RE projects), by filling in the forms in Exhibits A.1, A.2, A.3, and A.4, using its own letterhead and signed by the authorized representatives. Those projects that have been accomplished in Egypt, in particular for the electricity sector either RE or not shall be presented in a separate form. Page 4

5 Information related to the company s history, type of business, profile, organisation, manpower, major achievements, and future business plans and objectives must be included in Exhibit A.1. Experience related to projects completed during the last five years must be included in Exhibit A.2 Experience related to projects in progress must be included in Exhibit A.3. Experience related to IPP projects which have been completed, on-going or cancelled may be included in Exhibit A.4. e. Organizational Framework, Human Resources and Financial Resources The investor shall describe in details, the organizational structure, the available human resources and financial resources. Human Resources The investor shall provide an overall description of the available human resources, including the size of the company, the breakdown by personnel discipline, the additional resources; they may have the organizational chart and the applied governance. Financial Resources The investor shall submit the following: The audited financial statements over the last three (3) years, which should demonstrate their financial capability to secure the necessary finance for the project. For projects more than 20 MW, the credit rating for long-term unsecured debt by an international credit agency (S&P, Moody`s, DBRS), if available, will be a value added. f. Additional Information Any additional relevant information which further demonstrates the capabilities of the responding investor may be submitted under this section. Extensive information which is judged to be unappreciable and not related may be counterproductive. IV. EVALUATION CRITERIA The evaluation will be based on a 1000 points scoring system for the requested information. A minimum score of 650 points is mandatory to be qualified. The general points and the points assigned to each section of this document are shown Attachment (1). Page 5

6 ATTACHEMENT (1) EVALUATION CRITERIA This evaluation will be based on a 1000 point scoring system for the requested information. The general points and the points assigned to each section of the Requirements For Qualification (RFQ) are as follows: a. General Format and Completeness 50 Points Points will be awarded to documents that follow item 3 Notes to Investors. b. Title Page 0 Points No points will be awarded directly to the title page. However, the completeness of the title page will be assessed in awarding points for General Format and Completeness. c. Introduction 50 Points Points for the introduction will be awarded based on the clarity of the investor s description of the consortium, the responsibilities of each consortium member, and clarity of the investor s description of the role of the intended subcontracting companies. The combined responsibility of the investor and subcontracting companies must cover the major tasks and jobs of RE projects developments. Points will also be awarded if the investor provides clear and defined description of the projects he intends to establish. d. Understanding 200 Points Points will be awarded based on to what extent the investor understands the procedure of executing RE FiT project, in particular the RE projects in Egypt. e. Qualifications and Experience 300 Points Points will be awarded based on the following: The previous experience of the Developer (consortium members and major subcontractors) in projects management, development, financing, procurement, construction and commercial and local condition (not limited to RE projects). Completing projects with the same or more capital cost and the knowledge of local environment as the projects he intends to participate with in the Feed-In Tariff scheme (not limited to RE projects). All references will be checked, experience of each member of the investor's consortium shall be submitted using the forms in Exhibits A1, A2, A3 and A4. In case of not including a contact person details, who can authoritatively discuss the status of stated projects and the performance of the companies, in the submitted documents, these projects will be excluded from the company/consortium experience. f. Resources Human Resources 150 Points Points will be awarded according to the completeness of the company s organization charts provided by the investor (each consortium member and major subcontractor), and on assessment of the investor s capability to provide the necessary human resources to successfully complete the company`s responsibilities to complete the RE FiT projects intended to, as well as projects that the investor (consortium members) may obtain. Page 6

7 This assessment will be based on the organization chart, number of relevant employees in each part of the company, the general experience and qualifications of the company, the ability of contracting, managing these contracts and managing projects of the same investment size for the intended RE FiT projects. Financial Resources 250 Points Points will be awarded based on the ability of the investor (consortium members) to make the financial closure for the intended RE FiT projects, as follows: The participation share of the investor in the RE FiT projects completed in the previous five (5) years and on-going (not limited to RE projects). The analysis of the last three (3) years financial statements (financial ratios). Those companies that have negative working capital (more current liabilities than current assets) will be unqualified. The creditability rating form any international entity (e.g..s&p, Moody`s, DBRS). Letters from banks and financial institutions confirming the capability of the company to finance the proposed RE FiT projects and the intent of these institutions to finance these projects. g. Additional Information 0 Points No points are directly awarded to the additional information section. Any information provided in this section will be considered as a supplementary information for other sections. Page 7

8 EXHIBIT A.1 Name: Name of Consortium: Legal Name of Company: Address: Phone Number: Fax: Company s Description and History: Company`s Major Accomplishments Company s Business Plan: Use as many sheets as needed. Signature Page 8

9 s Completed EXHIBIT A2 Consortium s Name: Firm s Name: NO Name Location Brief Description Name of client & contact person; Address, Phone Number & . Total Value in US$/EGP Description of Firm`s Scope of Work value of Firm`s in US$/EGP Sources of finance of Firm`s Date of firm`s Start Date of Completion and Acceptance of Work Use as many sheets as needed. Signature 9

10 EXHIBIT A.3 s in Progress Consortium s Name: Firm s Name: NO Name Location Brief Description Name of client & contact person; Address, Phone Number & . Total / Value in US$/EGP Description of Firm`s Scope of Work value of firm`s in US$/EGP Sources of finance of Firm`s Date of firm`s Start Expected Date of Completion Use as many sheets as needed. Signature 10

11 EXHIBIT A.4 IPP s (Investors Intend to Participate in the Equity Only) Consortium s Name: Firm s Name: NO Name Location Brief Description Name of client & contact person; Address, Phone Number & . Total / Cost in US$/EGP Description of Firm`s Scope of Work Sources Of Funds for (Equity& Debt) State Value and source Firm`s Share In Equity Start Date Status Reasons for cancelling or delaying the project Use as many sheets as needed. Signature 11