1. 120 MW Short-Term Electricity Supply in Namibia
Clarification Meeting
Pelican Bay Hotel, Walvis Bay
20 November 2015

2. Agenda Introduction (MME) Namibia Supply-Demand Context (NamPower)
Namibia Licensing Requirements (ECB)
Key Aspects of the RfT (MME)
Questions

3. RfT: Issues Need for Speed Ability to Connect Rights to Site
Environmental Clearance
Fuel Deliverability

4. RfT: Principles
Want to spread risk (where feasible & not economically unrealistic):
By having more than one site;
By having more than one supplier;
By having more than one fuel.
So long as ‘fit for purpose’:
No restriction on technology;
No restriction on fuel type.
To enable evaluation on like-for-like basis:
Take site arrangements out of equation;
Take environmental clearance out of the equation
Take base cost of fuel out of equation

5. RfT: What is Sought Base Cost Cost of Options Acceptable
At a pre-selected site (Walvis Bay, Kuiseb, Wlotzka);
At either 40MW (Walvis) or 40/80/120MW (Kuiseb or Wlotzka if sea-based)
[At two plant factors]
Excluding time/cost of environmental clearance;
Excluding fuel & fuel delivery costs
Cost of Options
At the other site and capacity (land-based only);
Cost of delivery of fuel where Bidder is responsible for procurement.
Acceptable
At a site of own choice, but taking full responsibility for fuel, environmental clearance, connection, site lease & preparation …

6. RfT: Evaluation A five stage process: Equitable Economic Empowerment
Mandatory Requirements
Due Diligence
Technical Assessment
Financial Assessment
Combined Score

7. Equitable Economic Empowerment
Ownership (10%)
% shareholding by PDN
% shareholding by women/disabled
Management Control (5%)
% board/management filled by PDN
Human Resources & Skills Development (20%)
% fixed cost spend on PDN training/skills development
Entrepreneurship (35%)
Rank relative to bid giving highest PDN supplier
Community Investment (30%)
% fixed cost spend on community investment

8. Technical Assessment Experience (20) Sites (20) Implementation (20)
Based on the two reference sites
Sites (20)
Adequacy of information provided; layout, utilities, fuel.
Implementation (20)
Adequacy of information provided; timelines; fit-for-purpose.
Environmental (20)
Adequacy of information provided; suitability.
Commercial (20)
Degree of PPA/TCA changes sought, acceptable liability levels, availability
GRN Support: Level of Implementation Agreement sought, PPA guarantee, tax pass- through sought.

9. Financial Assess Levelised Cost of Energy (90%) EEEP (10%)
Two plant factors
Common basis of fuel pricing
Three years/five years
EEEP (10%)

10. Overall Score Technical Score pro-rated to 70 points
Financial score pro-rated to 30 points

11. Questions