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AFRICAN UNION UNION AFRICAINE

UNIO AFRICANA

Department of Infrastructure and Energy

GEOTHERMAL RISK MITIGATION FACILITYFOR EASTERN AFRICA (GRMF)

Request for Application forSurface Studies and Drilling Projects

(First Edition)

Project funded by:

TECHNICAL CONSULTANT


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Geothermal Risk Mitig ation Facil ity (GRMF)

First Edition Request for Applicationfor Surface Studies and Drilling Projects Page 2/44

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Contact

African Union CommissionRoosevelt Street, W21K19P.O. Box 3243Addis Ababa, Ethiopia

Philippe NIYONGABOHead of Energy DivisionInfrastructure & Energy DepartmentPhone: +251 11 518 2420E-mail: [email protected] Internet: www.grmf-eastafrica.org
mailto:[email protected]://www.grmf-eastafrica.org/http://www.grmf-eastafrica.org/http://www.grmf-eastafrica.org/mailto:[email protected]


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Content

1 INTRODUCTION ............................................................................................................. 6

2 OBJECTIVES OF THE FUNDING.................................................................................. 7

3 INVITATION FOR APPLICATIONS AND NOTIFICATION OF SUBMISSION ....... 8

4 INSTRUCTION TO APPLICANTS (ITA) ....................................................................... 9

1. Source of Funds ....................................................................................................... 9 2. Eligible Applicants .................................................................................................. 9 3. Eligible Goods and Services .................................................................................... 9 4. Cost of Application................................................................................................ 11 5. Content of the Request for Application .................................................................. 11 6. Clarification of the Request for Application ........................................................... 11 7. Amendment of the Request for Application ........................................................... 11 8. Language of Application ....................................................................................... 12

9. Documents Constituting the Application................................................................ 12 10. Application Form .................................................................................................. 12 11. Application Prices ................................................................................................. 12 12. Application Currencies .......................................................................................... 13 13. Documents Establishing Applicants Eligibility and Qualification ......................... 13 14. Documents Establishing Goods and Services Eligibility and Conformity to the

Request of Application .......................................................................................... 13 15. Application Bank Guarantee .................................................................................. 14 16. Period of Validity of Applications ......................................................................... 15 17. Format and Signing of Application ........................................................................ 15 18. Sealing and Marking of Applications ..................................................................... 16

19. Deadline for Submission of Applications ............................................................... 16 20. Late Applications .................................................................................................. 16 21. Modification Substitution and Withdrawal of Applications .................................... 16 22. Opening of Applications by the AUC .................................................................... 17 23. Preliminary Examination ....................................................................................... 17 24. Evaluation and Comparison of Applications .......................................................... 18 25. Financial Evaluation .............................................................................................. 19 26. Contacting the AUC .............................................................................................. 20 27. Award Criteria ....................................................................................................... 20 28. AUCs Right to Vary Quantities at Time of Award ................................................ 20 29. AUCs Right to Accept any Application and to Reject any or All Applications ...... 20


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30. Notification to the successful Applicant ................................................................. 21

31. Signing of Contract................................................................................................ 21 32. Performance Security ............................................................................................ 21 33. Fraud and Corruption............................................................................................. 21

5 SPECIAL INSTRUCTIONS TO APPLICANTS ........................................................... 24

ITA Clause 1.1 .................................................................................................................. 24 ITA Clause 2.1 .................................................................................................................. 24 ITA Clause 3.1 (b) ............................................................................................................. 24 ITA Clause 3.3 .................................................................................................................. 24 ITA Clause 3.4 .................................................................................................................. 25

ITA Clause 6.1 .................................................................................................................. 25 ITA Clause 12.1 (a) ........................................................................................................... 25 ITA Clause 13.2 (b) ........................................................................................................... 25 ITA Clause 15.1 ................................................................................................................ 26 ITA Clause 16.1 ................................................................................................................ 26 ITA Clause 17.1 ................................................................................................................ 26 ITA Clause 17.2 ................................................................................................................ 26 ITA Clause 17.3 ................................................................................................................ 26 ITA Clause 18.2 (a) ........................................................................................................... 26 ITA Clause 18.2 (b) ........................................................................................................... 27 ITA Clause 19.1 ................................................................................................................ 27

ITA Clause 22.1 ................................................................................................................ 27 ITA Clause 23.2 ................................................................................................................ 27 ITA Clause 28.1 ................................................................................................................ 27 ITA Clause 31.1 ................................................................................................................ 27

6 EVALUATION METHODOLOGY AND CRITERIA .................................................. 29

6.1 Evaluation Methodology Surface Studies ............................................................ 30 6.2 Evaluation Methodology Drilling Projects .......................................................... 33

7 FORM AND CONTENT OF APPLICATION ............................................................... 37

7.1 Project Data Sheet ................................................................................................. 39 7.2 Cost Estimate ........................................................................................................ 39

8 EARLY CONTRACTING............................................................................................... 43


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Annexes

Annex 1 Cover Letter for Application

Annex 2-A Application Form for Surface Studies

Annex 2 -B Application Form for Drilling Projects


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1 INTRODUCTIONThe African Union Commission (AUC) on the one side and the German FederalMinistry for Economic Cooperation and Development (BMZ) and the EU-AfricaInfrastructure Trust Fund via KfW Entwicklungsbank (KfW) on the other side haveagreed to establish the Geothermal Risk Mitigation Facility (GRMF) for Eastern Africa(the Facility) to help fund geothermal exploration designed to facilitate development inEastern Africa.

The GRMF is soliciting Applications for grants for surface studies relative todetermining the optimal location of reservoir confirmation wells at the most promisinggeothermal prospects and for drilling reservoir confirmation wells at the most promisinggeothermal prospects to assist Developers secure finance for their geothermal projectdevelopment.

The goal of this announcement is to encourage public and private investors as well as public private partnerships (Developers) to develop geothermal prospects for power generation in the GRMF eligible countries of Ethiopia, Kenya, Tanzania, Rwanda and Uganda. The development of geothermal resources has the potential to provide lowemission, baseload generation for the region, to improve security of supply, to reducethe frequency and severity of energy price fluctuations and to promote economicdevelopment in the region. Reduction of green-house gas emissions and adding low-cost

power generation capacity in these countries constitute further advantages of geothermalenergy projects.

GRMF will be managed by AUCs Regional Geothermal Co-ordination Unit (RGCU)and will provide financial instruments to assist in mitigating the geothermal explorationrisk. It is thus expected to improve access to funding for public as well as privatedevelopers and play a catalytic role in establishing geothermal energy as a strategicoption in power expansion planning of the participating countries of the region. TheGRMF will provide grants for surface studies and drilling and testing projects to alimited extent to both public and private Developers as well as public private

partnerships. Furthermore, grants for infrastructure and a contingent Continuation

Premium are also foreseen in case Developers continue to develop their project. As aresult, reduced risks and costs for early stage geothermal development can be expected to encourage the development of further geothermal investments.

In order to limit the risk to the GRMF, the grants will be awarded on the basis of the proposed projects geological, technical, economic and financial viability and environmental acceptability. Project Applicants shall be required to provide sufficientdata and analytical reports regarding the geothermal prospect. Proprietary data will bekept confidential. The eligibility of the proposal will be determined by the RGCU based upon reviews of the Application submitted and the recommendations of a Technical


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Consultant. On behalf of the RGCU, the Technical Consultant will monitor surface

studies and/or drilling and testing activities and assessing the results of such activities.The GRMF will provide the grants to Developers through a competitive, transparent and rigorous two-stage Application process. It is planned to conduct at least threeApplication rounds. The Application procedure from application to grant award isexpected to take approximately one year. There will be one Application round each year which will be composed of two stages.

This document describes the Application process (second stage) which is the submissionand the evaluation of the Application.

The RGCU will be supported by a Technical Consultant in day-to-day management of all aspects of Facility establishment and implementation (e.g. evaluation of Applications). Technical Consultants team of experts, that will assess the Applications,will be selected individually for each project to avoid any conflicts of interest.

2 OBJECTIVES OF THE FUNDING

Hydropower and fossil fuel fired power generation currently provide over 95% of electricity in Eastern Africa. Years of sustained droughts have reduced the generationavailable from hydropower resulting in supply shortages, installation of emergencydiesel generation and increased power prices. However, Eastern Africa has an estimated

geothermal resource potential of over 15,000 MW e.

Despite this potential, geothermal resources in the region are largely unexploited primarily due to the high upfront cost and the associated risk of discovering and provingthe resource.

Geothermal resources within East African countries are in general poorly defined withthe exception of Kenya. Furthermore, the frameworks conditions (e.g. regulationstogether with financial and institutional arrangements), required to encouragegeothermal development, are insufficiently supportive.

These upfront costs require a major financial commitment by Project Developers in theface of a risk that a reservoir confirmation drilling programme may fail to identify aneconomically viable prospect, even when extensive surface investigations includinggeochemistry and geophysics indicate the potential for encountering a viable geothermalresource. Therefore, the GRMF which will share partially the resource risks of geothermal exploration and reservoir confirmation has been established.

The GRMF, now funded at 50 million EUR is a grant programme designed to cost shareexploration work. The programme provides grants for the siting, drilling and testing of reservoir confirmation wells. The Facility is anticipated to be in place for a period of


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four years but could be extended if presently available funds are not fully expended

during that period or additional funds are made available to the Facility.Since the major focus of the Facility is on electricity generation, the majority of projectsare expected to be related to high-temperature reservoirs. However, low-temperaturereservoirs with lower resource potential and higher generation costs can be suggested aswell, especially if there is a high benefit for the local communities (e.g. within ruralelectrification projects competing with and replacing electricity from diesel generators).

Joint funding by GRMF and other public bilateral and multilateral funding schemes or facilities (e.g. NEPAD-IPPF, ARGeo, Development Banks etc.) is allowed.

3 INVITATION FOR APPLICATIONS AND NOTIFICATION OF SUBMISSION

The RGCU which is established by the AUCs Directorate of Infrastructure and Energy[Roosevelt Street, W21K19, P.O. Box 3243, Addis Ababa, Ethiopia], as ProjectExecuting Agency (PEA) acting for and on behalf of the AUC invites short-listed entities and consortiums of entities to submit an Application for financing support to begiven to eligible activities described in their corresponding Expression of Interest (EoI).

The submission of an Application requires mandatorily the participation of at least oneApplicants representative at the pre-bidding workshop in Addis Ababa on 26 th February2013. Applicants for drilling programmes must additionally participate in the RELCOST

training on 27-28th

February 2013. Short-listed Applicants have to inform the AUC and its RGCU whether or not they will participate at the workshop by using the registration

possibility on the GRMF webpage in the access restricted Application Phase area 1 onthe GRMF webpage:

www.grmf-eastafrica.org/ application /application-stage

The deadline for registration for the pre-bidding workshop will be provided to theApplicants along with the password for access to the secured area on the webpage.

1 This possibility for notifications shall be considered as priority. Only if the submission via webpage is not possible, asubmission via email to [email protected] is allowed.
http://o/33HH7003/GRMF/06-Standard%20Documents/Request%20for%20Applications/www-grmf-eastafrica.org/application/application-stagemailto:[email protected]:[email protected]:[email protected]://o/33HH7003/GRMF/06-Standard%20Documents/Request%20for%20Applications/www-grmf-eastafrica.org/application/application-stage


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4 INSTRUCTION TO APPLICANTS (ITA)

A. Introduction

1. Source of Funds 1.1 The African Union Commission (hereinafter called the AUC) has anapproved budget towards the cost of the procurement specified in theSpecial Instructions to Applicants (SITA), and intends to apply a

portion of the funding to eligible payments under a Grant Agreementfor which this Request for Applications (RfA) is issued.

2. EligibleApplicants

2.1 This Request for Applications is open to all legal entities (public or private, or a combination thereof) for eligible activities prescribed inITA Clause 3 in eligible countries except as provided hereinafter.

2.2 Applicants should not be associated, directly or indirectly, with a firmor any of its affiliates which is engaged by the AUC/KfW to provideconsulting services for the preparation of the design, specifications,and other documents to be used for the procurement of the goods and services to be purchased under this RfA. Should an Applicant suspectthat a potential conflict of interest could arise from its engagement of subconsultants or contractors, it needs to be clearly stated in the

Application. Such involvement can be allowed under exceptionalconditions but only after prior approval of both AUC and KfW.

2.3 Applicants must not be under a declaration of suspension for corrupt,fraudulent, collusive, coercive or obstructive practices as issued by theAfrican Union or the KfW Group in accordance with ITA Clause 33.1 .

2.4 Applicants or their subcontractors must not be subject to UN, EU or AU sanctions.

3. Eligible Goodsand Services

3.1 Eligible activities for the Facility comprise the following:

(a) Surface studies to determine the optimal location for reservoir confirmation wells at geothermal prospects once they have

previously been extensively studied. Surface studies aregeophysical surveys (e.g. seismic, gravity, magnetics or magnetotelluric surveys) including supplementary geological,hydrogeological and/or geochemical surveys if necessary for siting reservoir confirmation wells. In addition, a surface study

programme may include infrastructure required for conductingsurface studies (e.g. access), if applicable. Surface studies shallinclude an integrated resource report interpreting and summarising the results of the surface studies in terms of a


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conceptual model of the resource and identifying high priority

drill sites.(b) Exploration drilling programmes at geothermal prospects areconsidered for funding once the optimal locations of reservoir confirmation wells have been determined. A drilling programmefor funding by the Facility may comprise up to two full sizereservoir confirmation wells ( 5 diameter of the last casing or liner) or up to three slim hole wells (< 5 diameter of last casingor liner) or a combination of two slim holes and one full sizereservoir confirmation well. In addition, a drilling programmemay include mobilisation and demobilisation of drilling r igs; and well-testing. Infrastructure costs required for exploration drilling

(e.g. access roads, water, if applicable: grid-connected power supply) are covered by a separate infrastructure grant.Furthermore, a drilling programme may incorporate a feasibilitystudy that has the explicit aim of securing finance for subsequentreservoir confirmation wells. As such, it is expected that afeasibility study would combine exploration drilling results and reservoir engineering together with market, regulatory and technical considerations. Furthermore, a Continuation Premiumgrant is also foreseen in case Developers, within 6 months of thesubmission of the final drilling report, wish to continue todevelop their project.. The content of and process for accessingthe Continuation Premium is described in the SITA.

3.2 The Facility will not support activities other than those described above (paragraph 3.1 (a) and (b)) . The Facility will therefore not

provide grants for activities of a general nature, e.g. concession areareconnaissance, country wide reconnaissance, university research,mitigation of political or legal risk or general entitys overhead.

3.3 The maximum grant for each eligible activity is prescribed in theSITA.

3.4 All goods and related services to be supplied under the Grant

Agreement (synonymous with Contract and Agreement) shall havetheir origin in eligible source countries as defined in the SITA.

3.5 For purposes of this clause, origin means the place where the goodsare mined, grown, or produced, or the place from which the related services are supplied. Goods are produced when, throughmanufacturing, processing, or substantial and major assembly of components, a commercially-recognised product results that issubstantially different in basic characteristics or in purpose or utilityfrom its components.

3.6 The origin of goods and services is distinct from the nationality of the


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Applicant.

4. Cost of Application

4.1 The Applicant shall bear all costs associated with the preparation and submission of its Application or cost incurred during workshops and negotiations of the Grant Agreement, and the AUC will in no case beresponsible or liable for those costs, regardless of the conduct or outcome of the Application process.

B. Documents of the Request for Application

5. Content of theRequest for

Application

5.1 The goods required and the Application procedures are prescribed inthis Request for Application including all Annexes. In addition to the

Invitation for Applications (section 3), the RfA includes:(a) Instructions to Applicants (ITA)(b) Special Instructions to Applicants(c) Evaluation Methodology and Criteria(d) Form and Content of Application(e) Template for Cover Letter for Application(f) Application Forms

5.2 The Applicant is expected to examine all instructions, forms, terms,and specifications in the RfA. Failure to provide all informationrequired by the RfA or submission of an Application not substantiallyresponsive to the RfA in every respect will be at the Applicants risk and may result in the rejection of its Application.

6. Clarification of the Request forApplication

6.1 A prospective Applicant requiring any clarification of any parts of theRfA may notify the AUC using the ask for clarification possibility atGRMF webpage ( www.grmf-eastafrica.org ). The AUC will collect allinquiries and answers will be published, without eligible entitys or inquirers details, on the GRMF website. Deadline for any inquiriesfor clarification of the RfA is no later than thirty (30) days prior to thedeadline for the submission of Applications prescribed in ITA Clause19.1 .

7. Amendment of the Request forApplication

7.1 At any time prior to the deadline for submission of Applications, theAUC for any reason, whether at its own initiative or in response to aclarification requested by a prospective Applicant, may modify theRfA by amendment.

7.2 All prospective Applicants that have received the RfA will be notified of the amendment in writing, and the amendment will be binding onthem.

7.3 To allow prospective Applicants reasonable time in which to take the
http://www.grmf-eastafrica.org/http://www.grmf-eastafrica.org/


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amendment into account in preparing their Applications, the AUC, at

its discret ion, may extend the deadline for the submission of Applications.

C. Preparation of Applications

8. Language of Application

8.1 The Application prepared by the Applicant, as well as allcorrespondence and documents relating to the Application exchanged

between the Applicant and the AUC shall be written in the languagespecified in the SITA. Supporting documents and printed literature

furnished by the Applicant may be in another language provided theyare accompanied by an accurate translation of the relevant passages tothe language specified in the SITA, in which case, for purposes of interpretation of the Application, the translation shall govern.

9. DocumentsConstitutingthe Application

9.1 The Application prepared by the Applicant shall comprise thefollowing components:

(a) a Cover Letter for the Applications ( Annex 1 );

(b) an Application Form ( Annex 2 ) including i. a.:

(i) Cost Estimate completed in accordance with ITA Clauses10, 11 and 12; (ii) documentary evidence established in accordance with ITA

Clause 13 that the Applicant is eligible to apply and isqualified to perform the Contract if its Application isaccepted;

(iii) documentary evidence established in accordance with ITAClause 14 that the goods and services to be supplied by theApplicant are eligible goods and services and conform tothe RfA; and

(iv) Application Bank Guarantee furnished in accordance with

ITA Clause 15.

10. ApplicationForm

10.1 The Applicant shall complete and sign the Application Form includingthe appropriate Cost Estimate furnished in the RfA, indicating thegoods and services to be supplied, a brief description of the goods and services, quantity, and prices.

10.2 Unless otherwise indicated in the SITA, alternative Applications shallnot be considered.

11. Application 11.1 The Applicant shall indicate on the appropriate Cost Estimate form the


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Prices unit prices (where applicable) and total Application price in

accordance with instructions given in the Cost Estimate.11.2 The terms Ex Works (EXW), Cost, Insurance and Freight (CIF),

Carriage and Insurance Paid to (CIP), etc., shall be governed by therules prescribed in the current edition of International CommercialTerms (Incoterms) published by the International Chamber of Commerce, Paris.

11.3 Prices quoted by the Applicant shall be fixed during the Applicants performance of the Contract and not subject to variation on anyaccount, unless otherwise specified in the SITA. An Applicationsubmitted with an adjustable price quotation will be treated as non-

responsive and will be rejected, pursuant to ITA Clause 23.

12. ApplicationCurrencies

12.1 Prices shall be quoted in the following currencies:

(a) For goods and services that the Applicant will supply fromwithin the Country specified for delivery, the prices shall beconverted to United States Dollars as specified in the SITA.

(b) For goods and services that the Applicant will supply fromoutside the Country specified for delivery, the prices shall bequoted in United States Dollars as specified in the SITA.

13. DocumentsEstablishingApplicantsEligibility andQualification

13.1 Pursuant to ITA Clause 9, the Applicant shall furnish, as part of itsApplication, documents establishing the Applicants eligibility toapply and its qualifications to perform the Grant Agreement if itsApplication is accepted.

13.2 The documentary evidence of the Applicants qualifications to performthe Contract if its Application is accepted shall be established to theAUCs satisfaction:

(a) that the Applicant has the financial, technical, and managerialcapability necessary to perform the Contract;

(b) that the Applicant meets the qualification criteria listed in the SITA.

14. DocumentsEstablishingGoods andServicesEligibility andConformity tothe Request of Application

14.1 Pursuant to ITA Clause 9, the Applicant shall furnish, as part of itsApplication, documents establishing the eligibility and conformity tothe RfA of all goods and services which the Applicant proposes tosupply under the Contract.

14.2 The documentary evidence of conformity of the goods and services tothe application documents may be in the form of literature, drawings,and data, and shall consist of:

(a) a detailed description of the essential technical and performance


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characteristics of the goods and services to be provided;

(b) if applicable, comments and/or a statement of deviations and exceptions to the provisions of the specifications of eligiblegoods and services in the RfA.

15. ApplicationBankGuarantee

15.1 Pursuant to ITA Clause 9, the Applicant shall furnish, as part of itsApplication, an Application Bank Guarantee in the amount specified inthe SITA.

15.2 The Application Bank Guarantee is required to protect the AUCagainst the risk of Applicants conduct which would warrant the Bank Guarantees forfeiture, pursuant to ITA Clause 15.7 .

15.3 The Application Bank Guarantee shall be denominated in the currencyof the Application, and shall be in the form of a bank guarantee or anirrevocable letter of credit issued by a reputable bank, in the form

provided in the Application Form or another form acceptable to theAUC and valid for thirty (30) days beyond the validity of theApplication.

15.4 Any Application not secured in accordance with ITA Clauses 15.1 and 15.3 will be rejected by the AUC as non-responsive, pursuant to ITAClause 23.

15.5 Unsuccessful Applicants Application securities will be discharged or returned as promptly as possible, but not later than thirty (30) daysafter the expiration of the period of Application validity prescribed bythe AUC pursuant to ITA Clause 16.

15.6 The successful Applicants Application Bank Guarantee will bedischarged upon the Applicant signing the Contract, pursuant to ITAClause 31, and furnishing the performance security, pursuant to ITAClause 32.

15.7 The Application Bank Guarantee may be forfeited:

(a) if an Applicant:(i) withdraws its Application during the period of Application

validity specified by the Applicant on the Application Form,or

(ii) does not accept the correction of errors pursuant to ITAClause 23.5 ; or

(b) in the case of a successful Applicant, if the Applicant fails or refuses:(i) to sign the Contract Form in accordance with ITA Clause

31; or (ii) to furnish the performance security in accordance with ITA


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Clause 32.

16. Period of Validity of Applications

16.1 Applications shall remain valid for the period specified in the SITAafter the date of Application submission prescribed by the AUC,

pursuant to ITA Clause 19. An Application valid for a shorter period shall be rejected by the AUC as non-responsive.

16.2 In exceptional circumstances, the AUC may solicit the Applicantsconsent to an extension of the period of validity. The request and theresponses thereto shall be made in writing. The Application Bank Guarantee provided under ITA Clause 15 shall also be suitablyextended. An Applicant may refuse the request without forfeiting its

Application Bank Guarantee. An Applicant granting the request willnot be required nor permitted to modify its Application.

17. Format andSigning of Application

17.1 The Applicant shall prepare an original and the number of copies of the Application indicated in the SITA, clearly marking eachORIGINAL APPLICATION and COPY OF APPLICATION, asappropriate.

17.2 The Applicant shall provide the number of electronic copies of theApplication as stated in the SITA, either on a CD-ROM, DVD, USBmemory or external hard drive.

17.3 The Applicant has the full responsibility that the copies of Applicationas well as the electronic copy are in total compliance with the original.In the event of discrepancies between the printed original, printed copies and the electronic version, the AUC reserves the right toexclude the Application from evaluation respectively to withdrawevaluation if these discrepancies outcrop after evaluation. Evaluationresults coming up from discrepancies of submitted versions (original,copy or electronic copy) are not disputable. The structure and denomination of the printed versions and the electronic copy has tofollow the instructions in the SITA. Non-compliance with theseinstructions may lead to a rejection of the Application.

17.4 The original of the Application shall be typed or written in indelibleink and shall be signed by the Applicant or a person or persons dulyauthorised to bind the Applicant to the Contract. All pages of theoriginal Application, except for unamended printed literature, shall beinitialled by the person or persons signing the Application.

17.5 Any interlineations, erasures, or overwriting shall be valid only if theyare initialled by the person or persons signing the Application.


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D. Submission of Applications

18. Sealing andMarking of Applications

18.1 The Applicant shall seal the original and each copy of the Application,in separate envelopes, duly marking the envelopes as ORIGINALand COPY. The electronic copy (as specified in the SITA), pursuantto ITA Clause 17.2, shall be placed in one of the envelopes marked COPY. The envelopes shall then be enclosed in an outer envelopeand sealed.

18.2 The inner and outer envelopes shall:

(a) be addressed to the AUC at the address given in the SITA; and

(b) bear the Project title the Procurement Number and the Application-ID indicated in the SITA, and a statement: DO NOT OPENBEFORE, to be completed with the time and the date specified inthe SITA, pursuant to ITA Clause 22.1.

18.3 The inner envelopes shall also indicate the name and address of theApplicant to enable the Application to be returned unopened in case itis declared late.

18.4 If the outer envelope is not sealed and marked as required by ITAClause 18.2 , the AUC will assume no responsibility for theApplications misplacement or premature opening.

19. Deadline forSubmission of Applications

19.1 Applications must be received at the address specified under ITAClause 18.2 (a) by the time and date specified in the SITA.

19.2 The AUC may, at its discretion, extend this deadline for thesubmission of Applications by amending the RfA in accordance withITA Clause 7, in which case all rights and obligations of the AUC and Applicants previously subject to the deadline will thereafter be subjectto the deadline as extended.

20. Late

Applications

20.1 Any Application received by the AUC after the deadline for submission of Applications prescribed by the AUC pursuant to ITAClause 19 will be formally refused and returned unopened to theApplicant.

21. ModificationSubstitutionandWithdrawal of Applications

21.1 An Applicant may modify, substitute or withdraw its Application after the Applications submission, provided that written notice of themodification, including substitution or withdrawal of the Applications,is received by the AUC prior to the deadline prescribed for submissionof Applications.

21.2 The Applicants modification or withdrawal notice shall be prepared,sealed, marked, and dispatched in accordance with the provisions of


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ITA Clause 18, but in addition the envelopes shall be clearly marked

WITHDRAWAL, MODIFICATION or REPLACEMENTAPPLICATION. A withdrawal notice may also be sent by email([email protected]), but followed by a signed confirmationcopy, postmarked no later than the deadline for submission of Applications.

21.3 No Application may be replaced or modified after the deadline for submission of Applications.

21.4 Applications requested to be withdrawn in accordance with ITAClause 21.1 shall be returned unopened to the Applicant.

21.5 No Application may be withdrawn in the interval between the deadlinefor submission of Applications and the expiration of the period of Application validity specified by the Applicant on the ApplicationForm. Withdrawal of an Application during this interval may result inthe Applicants forfeiture of its Application Bank Guarantee, pursuantto ITA Clause 15.7 .

E. Opening and Evaluation of Applications

22. Opening of Applications bythe AUC

22.1 The AUC will open the outer envelopes of all Applications in the presence of Applicants or Applicants representatives who choose toattend, at the time, on the date, and at the place specified in the SITA.The Applicants or Applicants representatives who are present shallsign an attendance sheet.

22.2 Envelopes marked WITHDRAWAL shall be opened and read outfirst. The inner envelopes of Applications for which an acceptablenotice of withdrawal has been submitted pursuant to ITA Clause 21 shall be returned un-opened to the Applicant.

22.3 The Applicants names, Application modifications or withdrawals and

other details as the AUC, at its discretion, may consider appropriate,will be announced at the opening. No Application shall be formallyrefused at Application opening, except for late Applications, whichshall be returned unopened to the Applicant pursuant to ITA Clause20.

23. PreliminaryExamination

23.1 Prior to the detailed evaluation, pursuant to ITA Clause 24, the AUCwill determine the substantial responsiveness of each Application tothe RfA. For purposes of these Clauses, a substantially responsiveApplication is one that conforms to all the terms and conditions of the


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RfA without material deviations. Deviations from, or objections or

reservations to critical provisions, such as those concerningApplication Bank Guarantee (ITA Clause 15), Applicable Law, and Taxes and Duties, will be deemed to be a material deviation. TheAUCs determination of an Applications responsiveness is to be based on the contents of the Application itself without recourse to extrinsicevidence.

23.2 In case of minor, formal omissions as defined in the SITA, adeficiency report (only one per Application and per Application round)will be prepared and provided to the respective Applicant. Applicantswill have one week after the provision of the deficiency report tosubmit any supplements requested as specified in the SITA.

23.3 Written feedback on Applications that do not meet the requirements inITA 23.1 or 23.2, and if applicable: still do not meet them after

providing the supplements specified in the deficiency report, will be provided to the relevant Applicants. For the sake of clarity, suchApplications will not further be considered for the respectiveApplication Round.

23.4 If an Application is received for surface studies / drilling and testing programmes at a geothermal prospect that has applied to the Facilitytwice for the same site and by the same Applicant in the previous two

years but has not been invited to negotiate the Grant Agreement ineither year, the Application will not be further considered for the samesite. The relevant Applicants will be informed.

23.5 Arithmetical errors will be rectified on the following basis. If there is adiscrepancy between the unit price and the total price that is obtained

by multiplying the unit price and quantity, the unit price shall prevail,and the total price shall be corrected, unless there is an obviousdiscrepancy in placement of the decimal point. If there is a discrepancy

between words and figures, the amount in words will prevail. If theApplicant does not accept the correction of the errors, its Applicationwill be rejected, and its Application Bank Guarantee may be forfeited.

24. Evaluation andComparison of Applications

24.1 The AUC will evaluate and compare the Applications which have beendetermined to be substantially responsive, pursuant to ITA Clause 23.

24.2 AUCs evaluation of an Application will be undertaken using the stepsand evaluation criteria described in Evaluation Methodology and Criteria (please refer to Section 6). The criteria are weighted based onimportance for development of a successful geothermal project.

24.3 The Application receives a score for each criterion. The overall scoreis summed up and adjusted with the criterias weights. There is anoverall threshold that requires the Application to score 70% or more of


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the maximum achievable score. The overall score is used to rank the

Application.24.4 All Applications that passed the technical and financial evaluation will

be eligible for grant consideration through the Facility. The actualnumber of grants awarded to projects will however depend on theoverall number of Applications in each Application round, amount of grants requested and availability of funding. Applications that receivethe highest score will have the priority of Grant award in the in theorder of the ranking.

24.5 Applications that pass the technical and financial evaluation but do notreceive funding in one year due to funding limitations will be put on a

waiting list such that Applications will automatically participate in thenext Application Round. Applicants will have the opportunity toupdate their Applications for the next Application Round includingconsideration of feedback provided.

24.6 Applicants will be provided with feedback on the evaluation, presumably within 20 weeks after the submission deadline for Applications.

24.7 Applicants that passed the technical and financial evaluation will, inthe order of their rank, be invited to negotiate the Grant Agreement.

25. FinancialEvaluation

25.1 During the financial evaluation, the Cost Estimates of the Applicantswill be checked for completeness, eligibility and as of drilling projects,for compliance with the AWC Guidelines. Subsequently, theadequateness and reasonability of the Cost Estimates based on the

justifications given will be determined. All contingencies stated willalso be checked for eligibility and reasonableness. Any adjustmentsnecessary as the basis for the grant level offered in the Contractnegotiation phase will be proposed. For the sake of clarity, if the CostEstimates or contingencies are found to be higher than the actualestimate of the evaluation experts, the grant level will be adjusted tomatch the estimated costs of the GRMF experts.

25.2 If the budget is unreasonably estimated, the financial evaluation willfail and the Application will be rejected.

25.3 AUCs evaluation of an Application will exclude from the eligiblecosts claimed: customs duties, sales taxes and other taxes on the goodsand services.

25.4 The AUC will evaluate and make a decision of how many percent of the Applicants eligible costs will be financed from the Project, based on the evaluated accuracy of cost estimates in the Pricing Schedule.The maximum share is pursuant to ITA Clause 3.3.


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25.5 Costs omitted in the Application will not be considered after deadlinefor Applications even if they would be eligible for financing. TheApplicant therefore needs to include all costs of shipping, inland transportation, insurance and incidentals in the prices used for theApplication as indicated in the Application Form.

26. Contacting theAUC

26.2 From the time of deadline of Applications to the completion of evaluation, Applicants are not allowed to contact the AUC.

26.3 Any effort by an Applicant to influence the AUC in its decisions onApplication evaluation, Application comparison, or Contract award shall result in the rejection of the Applicants Application.

F. Award of Contract

27. Award Criteria 27.1 The AUC may decide to award several Contracts from this procurement.

27.2 The Applicant/Applicants with the highest technical ranking/rankings pursuant to ITA Clause 24.3, having provided a satisfactory Cost

Estimate pursuant to ITA Clause 25, will be invited for Contractnegotiations pursuant to ITA Clause 30. The Applicant will beinformed by the AUC how large a share of the proposed eligible costswill be financed by the AUC pursuant to ITA Clause 25.4.

27.3 The Applicant has the right to accept the invitation for Contractnegotiations on the terms stated in ITA Clause 27.2 , or reject theinvitation for the same reason. If the Applicant rejects the invitation toContract negotiations, the Application Bank Guarantee will beforfeited.

27.4 If the Applicant rejects the invitation for Contract negotiations, thenext Applicant in the ranking will be invited for Contract negotiations.

28. AUCs Right toVary Quantitiesat Time of Award

28.1 The AUC reserves the right at the time of Contract award to increaseor decrease, by the percentage indicated in the SITA, the quantity of goods and services originally specified in the Schedule of Requirements without any change in unit price or other terms and conditions.

29. AUCs Right toAccept any

29.1 The AUC reserves the right to accept or reject any Application, and toannul the Application process and reject all Applications at any time


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Application and

to Reject any orAll Applications

prior to Contract award, without thereby incurring any liability to the

affected Applicant or Applicants.

30. Notification tothe successfulApplicant

30.1 Prior to the expiration of the period of Application validity, the AUCwill notify the successful Applicant in writing by registered letter or courier service that its/their Application has been accepted and that theApplicant is invited for Grant Agreement negotiations pursuant to ITAClause 27.2 .

30.2 The Grant Agreement will be negotiated pursuant to ITA Clause 27.2 and 27.3 .

30.3 Upon the successful Applicants furnishing of the performancesecurity pursuant to ITA Clause 32, the AUC will promptly notify thename of the winning Applicant to each unsuccessful Applicant and will discharge its respective Application Bank Guarantee, pursuant toITA Clause 15.

30.4 All Applicants will receive a feedback letter, which includes groundsfor award and rejection, respectively.

31. Signing of Contract

31.1 Within fourteen (14) days of receipt of the negotiated and subsequentlyfinalised Contract Form, the successful Applicant shall sign and datethe Contract and return it to the AUC. The Contract will enter into

force pursuant to the criteria specified in the SITA.

32. PerformanceSecurity

32.1 Within fourteen (14) days after the Contract has been signed by both parties, the successful Applicant shall, if required, furnish the performance security in accordance with the Conditions of Contract,using the Performance Security Form provided in the Grant Agreementor in another form acceptable to the AUC.

32.2 Failure of the successful Applicant to comply with the requirement of ITA Clause 31.1 or ITA Clause 32.1 shall constitute sufficient groundsfor the annulment of the award and forfeiture of the Application Bank

Guarantee, in which event the AUC may make the award to the nextranked Applicant or call for new Applications.

33. Fraud andCorruption

33.1 The African Union requires that Officers of the AU, as well asApplicants/ Suppliers/Contractors, observe the highest standard of ethics during the procurement and execution of such Contracts. 2 In

pursuance of this policy the AU:

(a) defines, for the purposes of this provision, the terms set forth

2 In this context, any action taken by an applicant, bidder, supplier, contractor, or a sub-contractor to influence the procurement process or Contract execution for undue advantage is improper.


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below as follows:

(i) corrupt practice3

is the offering, giving, receiving or soliciting, directly or indirectly, of anything of value toinfluence improperly the actions of another party;

(ii) fraudulent practice 4 is any act or omission including amisrepresentation that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other

benefit or to avoid an obligation;

(iii) collusive practice 5 is an arrangement between two or more parties designed to achieve an improper purpose,including to influence improperly the actions of another

party;(iv) coercive practice 6 is impairing or harming or threatening

to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party;

(v) obstructive practice is deliberately destroying, falsifying,altering or concealing of evidence material to anyinvestigation or making false statements to investigators inorder to materially impede any investigation into allegationsof a corrupt, fraudulent, coercive or collusive practice;and/or threatening, harassing or intimidating any party to

prevent it from disclosing its knowledge of matters relevantto the investigation or from pursuing the investigation;

(b) will reject a recommendation for award of Contract if itdetermines that the Applicant recommended for award has,directly or through an agent, engaged in corrupt, fraudulent,collusive, coercive or obstructive practices in competing for theContract in question;

(c) will declare a firm ineligible, either indefinitely or for a stated

period of time, to be awarded an African Union financed Contractif it at any time determines that the firm has, directly or through

3 another party refers to an officer of the AU acting in relation to the procurement process or Contract execution. Inthis context, officer of the AU includes staff and employees of other organisations taking or reviewing procurement decisions. 4 a party refers to any officer of the AU; the terms benefit and obligation relate to the procurement process or Contract execution; and the act or omission is intended to influence the procurement process or Contract execution. 5 parties refers to any participants in the procurement process (including officers of the AU) attempting to establishapplication prices at artificial, non competitive levels. 6 a party refers to any participant in the procurement process or Contract execution.


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an agent, engaged in corrupt, fraudulent, collusive, coercive or

obstructive practices in competing for, or in executing, an AfricanUnion and/or KfW Group financed Contract, or if it has beendebarred from business by the United Nations Security Council.

33.2 If the AUC determines that the Developer and/or any of its personnel,or its agents, or its subcontractors, sub-consultants, services providers,suppliers and/or their employees has engaged in corrupt, fraudulent,collusive coercive, or obstructive practices, as de-fined in 33.1, incompeting for or in executing the services described in the GrantAgreement, then the AUC may terminate the Grant Agreement.Termination for reasons described in 33.1 will not entitle the

Developer to any form of compensation. Furthermore, all amountsreceived from the AUC under the terms of the Grant Agreement must

be reimbursed to the AUC without any deduction.


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5 SPECIAL INSTRUCTIONS TO APPLICANTS

The following specific data for the goods and services to be procured shall complement, supplement,or amend the provisions in the Instructions to Applicants (ITA). Whenever there is a conflict, the

provisions herein shall prevail over those in the ITA.

A. Introduction

ITA Clause 1.1 Funding for this procurement is provided by the German Ministry for Economic Cooperation and the EU-Africa Infrastructure Trust Fund viaKfW Entwicklungsbank.

Name of the Executing Agency: The African Union Commission (AUC)

The Procurement Number is: 43/IED/GRMF/AR01/12

Project Title: Geothermal Risk Mitigation Facility (GRMF)

ITA Clause 2.1 Only projects located in Ethiopia, Kenya, Rwanda, Tanzania or Ugandaare eligible for funding under the GRMF.

ITA Clause 3.1 (b) The content of and process for accessing the Continuation Premium will be defined in the Grant Agreement as described in the Developer Manual.

ITA Clause 3.3 The upper limits for financial support of the allowable field expenditure(AFE) at the time of proposal submission (as stated in the eligibleactivities), in the form of a Grant Agreement, to winning Applicants for surface studies and exploration drilling and testing programmes are asfollow:

Infrastructure grants: 20% of approved allowable costs for infrastructure required for eligible surface studies and eligibledrilling programmes (e.g. access roads, water, power)

Surface studies grants: 80% of approved allowable costs(excluding infrastructure costs).

Drilling grants: 40% of approved allowable costs for theexploration drilling and testing programme for reservoir confirmation wells (excluding infrastructure costs)

Continuation Premium: 30% of the Developers share of theapproved allowable and expended costs incurred during thedrilling and testing programme in case Developers, within 6months of the submission of the final drilling and testing report,continue to develop their project.


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The disbursements will be based on actual costs up to the limits stated above.

ITA Clause 3.4 The eligible origin of goods and services shall be restricted to countriesand territories that are Member States of the United Nations and that arenot subject to UN, EU or AU sanctions.

ITA Clause 6.1 For inquiries for clarifications regarding the Application, Applicants shalluse the ask for clarification function on the GRMF webpage(www.grmf-eastafrica.org). Only if the submission via webpage is not

possible, a submission via email to [email protected] is

allowed.Inquiries will be collected and answers will be provided to all Applicantsvia the GRMF webpage.

ITA Clause 8.1 The Language of the Application has to be English.

B. Documents of the Request for Application

ITA Clause 12.1 (a) All prices for goods, services and components in the Application should be quoted in the original currency, as well as converted to United States(US) Dollars. US dollar values prevail throughout the course of the work.

The exchange rate when converting from other currencies to US Dollarsshall be the UN Operational Rates of Exchange as published on [1 st

March 2013].

The UN Operational Rates of Exchange may be accessed through:http://treasury.un.org/operationalrates/OperationalRates.aspx

C. Preparation of Applications

ITA Clause 13.2 (b) The required documentary evidence to be submitted by the Applicant toconfirm eligibility to Application is as follows:

Certificate of Registration from relevant national authority Information on the company and its core business Organisational chart for the Applicant (including all members of

Joint Venture, major consultants and contractors, if applicable) Audited annual statements for the last three years A letter from the legal entity granting the concession that all

provisions including but not limited to work commitments have
mailto:[email protected]://treasury.un.org/operationalrates/OperationalRates.aspxhttp://treasury.un.org/operationalrates/OperationalRates.aspxmailto:[email protected]


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been met and that the concession shall remain in force during the

term of the project.

ITA Clause 15.1 All Applications must be accompanied by an Application Bank Guarantee of USD 10,000.00 for surface studies or USD 50,000.00 for exploration drilling.

ITA Clause 16.1 The period of Application validity shall be hundred and eighty (180) daysfrom the deadline for submission of Applications.

ITA Clause 17.1 In addition to the original of the Application, the number of copiesrequired is two (2).

ITA Clause 17.2 The number of electronic copies of the Application required is one (1).

ITA Clause 17.3 The original and printed copies shall be provided in document filesseparated in sections for each different Form, to be filled in or provided,

by using separator sheets or dividing stripes.

The structure of the electronic folders and data files must strictly followthe structure and naming of the print version of the Application. As of theForms, to be filled in or provided, there should be for each Form aseparate folder named in accordance with the Form number and title.

The electronic files shall be searchable with exception of the declarationsand securities and CV which have to be scanned after signing. For theelectronic files, the following denomination scheme needs to be applied:

FormReferenceNumber-Title

Structure of the electronic files can be downloaded from the GRMFwebpage ( www.grmf-eastafrica.org/ application /application-stage ).

D. Submission of Applications

ITA Clause 18.2 (a) The address for submission of Applications is:

The African Union Commission,The Chairperson, Tender Board,Building C, 3 rd Floor Reception,Roosevelt Street, W21K19,Box 3243,Addis Ababa, EthiopiaAttention: The Coordinator of the RGCU
http://o/33HH7003/GRMF/06-Standard%20Documents/Request%20for%20Applications/www-grmf-eastafrica.org/application/application-stagehttp://o/33HH7003/GRMF/06-Standard%20Documents/Request%20for%20Applications/www-grmf-eastafrica.org/application/application-stage


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ITA Clause 18.2 (b) Project Title: Geothermal Risk Mitigation Facility for Eastern Africa(GRMF)Procurement No: 43/IED/GRMF/AR01/12Application-ID: Shown on the invitation letter to the pre-bidding

workshop (Subject)

ITA Clause 19.1 The deadline for submission of Applications is 12:00 oclock (AddisAbaba, local time) on 25 th April 2013.

ITA Clause 22.1 The opening of Applications shall take place at 12:00 oclock (AddisAbaba, local time) on 25 th April 2013 at the address shown in SITA to

Clause 18.2 (a).

E. Opening and Evaluation of Applications

ITA Clause 23.2 In the context of ITA 23.2, minor, formal omissions are defined as:

Missing signature or initials on one or more pages that areotherwise completed or included in the Application

Number of copies (original and copies as well as digital) requested Other minor omissions not affecting the technical Application or

the Cost Estimate

Under no circumstances can a situation listed in the related Form inAnnex 2 (Declaration of Non-Existence of Grounds for Rejection) beconsidered a minor, formal omission.

The supplement shall be submitted in three (3) hard copies (one signed original, two copies) and one soft copy as CD, DVD, USB memory or external hard drive to the tender box as per ITA Clause 18.2 . In addition,the envelopes shall be clearly marked SUPPLEMENT. Supplements

shall also be sent via e-mail to [email protected] . In order toobserve the deadline, the time of email arrival will be relevant.

F . Award of Contract

ITA Clause 28.1 Not applicable.

ITA Clause 31.1 The Contract will enter into force once signed by both Parties. TheContract will however only enter into force when all necessary permitsand licenses are in place and have been duly presented to the AUC. If
mailto:[email protected]:[email protected]


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this is not the case within four (4) weeks after Contract signing, the

Contract will not enter into force, and the Application Bank Guaranteewill be forfeited. Thereafter, the next shortlisted Applicant will be invited for negotiations. Under exceptional circumstances, the Applicant mayask for an extension of the time limit as long as such request is a one-time event. The extension of the time limit requires a prior approval of the AUC.


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6 EVALUATION METHODOLOGY AND CRITERIA

A general overview of the evaluation procedure for Applications is given in Figure 1 below.

STAGE 1:Completeness and

eligibility check

PASS

FAIL

Deficiencyreport /

Invitation t oprovide

supplements

Minor omissionsNon-eligibility/Grounds for

rejection

REJECTIONFeedback toApplicants

STAGE 2:Technicalevaluation

FAIL

PASS

Ranking of Applications

STAGE 3:Financial

evaluation

FAIL(unreasonable)

PASS(reasonable)

Invitation to negotiate

Highest ranked Application invited,if reasonable cost estimate

GRANT AWARD

Grant level basedon cost estimates

STAGE 1:Completeness and

eligibility check

PASS

FAIL

Deficiencyreport /

Invitation t oprovide

supplements

Minor omissionsNon-eligibility/Grounds for

rejection

REJECTIONFeedback toApplicants

STAGE 2:Technicalevaluation

FAIL

PASS

Ranking of Applications

STAGE 3:Financial

evaluation

FAIL(unreasonable)

PASS(reasonable)

Invitation to negotiate

Highest ranked Application invited,if reasonable cost estimate

GRANT AWARD

Grant level basedon cost estimates

Figure 1: Overview of the evaluation procedure


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6.1 Evaluation Methodology Surface StudiesFor all evaluation criteria (1-9), Applications which score in the lowest category will not

be considered further in the current Application round but will be provided withfeedback accordingly. The overall minimum score is 70%.

EvaluationCriteria

WeightingFactor ( x ) Status/ Criteria

Points to beAwarded

( P ) 1 Indication of geothermal

resource based on resultsfrom all previous studies

4.0

Good evidence from previousstudies of a geothermal resource

7-10

Some evidence of a geothermalresource

4-6

Only scant evidence that ageothermal resource exists

0-3

2 Robustness of plans and schedules for surfacestudies for support by theFacility

2.0

Detailed, thoroughly presented and technically feasible as well asappropriate work programme and

justification

7-10

Feasible work programme but

lacking some detail

4-6

Incomplete or unfeasible work programme

0-3

3 Appropriate authorisationfor exploration activities,environmental and anyother relevant

permits/licenses/rights in place or under negotiation 0.1

All authorisations and all permits/licenses/rights in place or not required

7-10

Negotiations for authorisation and permits/licenses/rights underway

4-6

No details specified or no

authorisation/permits/licenses/rightsavailable and no negotiationsunderway

0-3

4 Description of market for future power plant output.

0.6

Robust and well thought out marketstrategy

7-10

Feasible market strategy but lackingsome detail

4-6

Incomplete or unfeasible marketstrategy

0-3


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Evaluation

Criteria

Weighting

Factor ( x ) Status/ Criteria

Points to beAwarded

( P )

5 Plan for financing theDevelopers portion of the surface studies budget

0.3

Thoroughly presented, robust,feasible and adequate financing

plan

7-10

Fair financing plan, but lackingsome detail

4-6

No or limited financing plan 0-3

6 Geothermal explorationexperience and expertiseof the Developer including private sector

partners and engaged consultants asdemonstrated in the key

personnel CVs1.3

Qualified working experience of key personnel in comparablegeothermal projects 10 yearsincluding experience in East Africa

7-10

Qualified working experience of key personnel in comparablegeothermal projects 5 includingexperience in East Africa

4-6

Qualified working experience of key personnel in comparablegeothermal projects < 5 years

0-3

7 Geothermal explorationexperience and expertise

of the Developer including private sector

partners and engaged consultants asdemonstrated in the

project references

1.0

Good track record of successfulgeothermal exploration and

development

7-10

Some experience but some gapsand/or limited track record

4-6

Unproven or inexperienced company

0-3

8 Financial, managementand organisationalcapabilities

0.5

High financing, management and organisational capabilities in placeto carry out programme

7-10

Fair financial, management or

organisational capabilities, butlacking some detail

4-6

Low financial, management or organisational capabilities

0-3

9 Plans for obtainingexpertise, finance and equipment for reservoir

0.2

Robust and well thought out plansfor subsequent reservoir confirmation drilling

7-10


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Evaluation

Criteria

Weighting


Points to beAwarded

( P ) confirmation drilling Fair plans for subsequent reservoir

confirmation drilling but lackingsome detail

4-6

No or limited plans for subsequentreservoir confirmation drilling

0-3

MAXIMUM POINTS 7 100 MINIMUM POINTS TOREACH THRESHOLD 70

7 Total points will be calculated as sum of weighted awarded points :n

iiitatal P xP

1

*


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6.2 Evaluation Methodology Drilling ProjectsFor evaluation criteria 1-6 and 10-12, Applications which score in the lowest categorywill not be considered further in the current Application round but will be provided withfeedback accordingly. The overall minimum score is 70%.

EvaluationCriteria

WeightingFactor ( x ) Status/ Criteria

Points to beAwarded

( P ) 1 Indication of appropriate

drill sites in geothermalresources area selected

based on results from all previous studies withemphasis on geophysics

3.0

Very good, well-documented and robust evidence from extensivegeophysical studies of a geothermalresource / multiple sites identified with good justification for drill siteselection

7-10

Good, well-documented evidencefrom a moderate geophysicalresource evaluation programme /fair justification for drill siteselection

4-6

Some evidence of a geothermalresource / little or no geophysical

studies completed / poor justification for drill site selection

0-3

2 Robustness of plans,adequateness of proposed equipment and schedulesfor confirmation drillingand testing programmefor support by theFacility

2.0

Thoroughly presented and technically feasible work

programme

7-10

Feasible work programme butlacking some detail

4-6

Incomplete or unfeasible work programme

0-3

3 Appropriate authorisationfor exploration activities,environmental and anyother relevant

permits/licenses/rights in place or under negotiation

0.1

All authorisations and all permits/licenses/rights in place or not required

7-10

Negotiations for authorisation and permits/licenses/rights underway

4-6

No details specified or noauthorisation/permits/licenses/rightsavailable and no negotiationsunderway

0-3


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Evaluation

Criteria

Weighting


Points to beAwarded

( P ) 4 Description of market for

future power plantoutput. / Offtakeagreement or equivalentin place or under negotiation

0.8

Market strategy / Offtakeagreement in place or not required

7-10

Negotiations for offtake agreementunderway

4-6

No evidence that offtake agreementnegotiations are underway

0-3

5 Plan for financing theDevelopers portion of

the drilling programme budget 0.2

Thoroughly presented, robust,feasible and adequate financing

plan

7-10

Fair financing plan, but lackingsome detail

4-6

No or limited financing plan 0-3

6 Robustness of business plan for development of geothermal resource and

power plant after completion of drilling

programme includingRELCOST model output

0.7

Robust and well thought out business plan

7-10

Feasible business plan but lackingsome detail

4-6

Incomplete or unfeasible business

plan

0-3

7 Likely installed capacityof envisaged geothermal

power development at thesite

0.2

Potential geothermal power development at the site > 100 MW e

7-10

Potential geothermal power development at the site 10-100MW e

4-6

Potential geothermal power development at the site < 10 MW e

0-3

8 Percentage increase of

total installed geothermal power generationcapacity in country at thetime of Application bylikely installed capacityof envisaged geothermal

power development at thesite

0.5

Percentage increase by planned

plant of total installed geothermal power generation capacity incountry > 50 %

7-10

Percentage increase by planned plant of total installed geothermal power generation capacity incountry 10-50 %

4-6


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Evaluation

Criteria

Weighting


Points to beAwarded

( P ) Percentage increase by planned

plant of total installed geothermal power generation capacity incountry < 10 %

0-3

9 Combined heat and power / ruralelectrification / project

benefits for communities

0.5

Robust, feasible and adequate planfor CHP or rural electrification or other identified benefits for localcommunity

7-10

Fair plan for CHP or ruralelectrification or some other

benefits identified for localcommunity but lacking some detail

4-6

No plans for CHP or ruralelectrification and no identified

benefits for local community

0-3


partners and engaged

consultants asdemonstrated in the key

personnel CVs 1.2

Qualified working experience of key personnel in comparablegeothermal projects 10 yearsincluding experience in East Africa

7-10

Some experienced staff available,qualified working experience of key personnel in comparable geo-thermal projects but < 10 yearsincluding experience in East Africa

4-6

Key personnel inexperienced incomparable geothermal projects

0-3


partners and engaged consultants asdemonstrated in the

project references

0.5

Good track record of successfulgeothermal exploration and development

7-10

Some experience but some gapsand/or limited track record

4-6

Unproven or inexperienced company

0-3

12 Financial, managementand organisationalcapabilities

0.3

High financing, management and organisational capabilities in placeto carry out programme

7-10


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Evaluation

Criteria

Weighting


Points to beAwarded

( P ) Fair financial, management or organisational capabilities, butlacking some detail

4-6

Low financial, management or organisational capabilities

0-3

MAXIMUM POINTS 8 100 MINIMUM POINTS TOREACH THRESHOLD 70

8 Total points will be calculated as sum of weighted awarded points :n

iiitatal P xP

1

*


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7 FORM AND CONTENT OF APPLICATIONThe Applicant shall fill in the Application Forms provided in Annex 2- A for surfacestudies and Annex 2- B for drilling projects and include all information requested. TheApplication Forms specify the information to be included and reflect the EvaluationMethodology described in Section 6.

This section gives further guidance on the Application Forms found in Annex 2 A and B. The instructions below shall be considered when completing the Application Forms.In Annex 2 the following forms will be found.

Annex 2 -A Annex 2 -B

00 Content list 00 Content list

A0 Information table about entity A0 Information table about entity

A1-S Project data sheet A1-D Project data sheet

A2 Application summary A2 Application summary

A3 Resource data A3 Resource data

B1-S Project description B1-D Project description

B1-S_a Generic surface survey B1-D_a Drilling programme

B1-S_b List of sub-contractors B1-D_b List of sub-contractors

C1 Concession agreement details C1 Concession agreement details

C2 Exploration license C2 Exploration license

C3 Environmental permits C3 Environmental permits

D1 Market viability D1 Market viability

N/A D2 Business plan

N/A D3 Installed capacity

N/A D4 Increase in generation capacity

N/A D5 CHP/rural electrification

E1 Project personnel E1 Project personnel

E2 Personnel CV E2 Personnel CVE3 Project developers experience E3 Project developers experience

E4 Statement on capabilities E4 Statement on capabilities

E5-S Plans for subsequent drilling N/A

F1 Financing plan F1 Financing plan

F2-S Cost estimate F2-D Cost estimate

F3 Project cash flow F3 Project cash flow

N/A F4 Cost table AWC items

F5-S Key financials F5-D Key financials


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G1 Application Bank Guarantee G1 Application Bank Guarantee

G2 Declaration procurement standards G2 Declaration procurement standards

G3 Declaration non-existence of groundsfor rejection G3Declaration non-existence of groundsfor rejection

G4 Audited financial statements G4 Audited financial statements

X# Attachments to other Forms X# Attachments to other Forms

Several forms are given for assuring an evaluation of comparable information provided for each Application in the same way and detail. When filling in the forms, the Englishlanguage and SI units shall be used. The message shall be illustrated with self-explanatory diagrams as they are typically used in the geothermal community. Wherever

possible, figures or clearly structured tables shall be used to substantiate the information provided. This reduces the additional explanatory text in each section to a necessaryminimum. Whenever a maximum number of words is specified, this number shall not beexceeded 9.

The structure and order of the forms should not be changed. Applicants shall give thereason(s) and evidence in case a mandatory data or information request is not applicable(N/A) to a specific proposed project, mandatory data or information is not available inthe suggested project or amendments need to be made. Applicants may also state whichother available information covers the requested aspect. Any non-requested, additionalinformation can be provided, but will not be included in the evaluation process and isnot encouraged.

All available information on the geothermal prospect in question is of major importance,i.e. good evidence of a significant geothermal resource in the subsurface should be givento justify funding by the Facility.

Applicants shall show that the proposed project will lead to the next step in projectdevelopment, i.e. identification of sites for exploration drilling (in case of surfacestudies) or confirmation of the resource (in case of drilling projects). The strategy toachieve this needs to be presented in the surface studies / drilling plan.

It is expected that the majority of geological, hydrological, geochemical and geophysicaldata (the latter if already available for surface studies, mandatory for drilling projects)will already have been acquired by the Applicant for a sound planning of the proposed

project. For drilling projects, the interpretation of the results of previous studies shallinclude the identification of and the justification for two or more appropriate drill sites inthe geothermal prospect.

9 In case the maximum number of words is exceeded, only the text up to the stated limit of words will be considered in theevaluation.


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For the assessment of the Application, in addition to the interpretation of the results of

any previous works as described above, also the underlying geothermal raw data may berequested for a raw data check. On a case to case decision it may be requested to submitspecific raw data for re-interpretation and analysis in order to verify the conceptualmodel and the interpretation of the results provided by the Applicant. Therefore, theApplicant should be prepared to immediately send raw data as well as any unpublished reports in which the conceptual model is described in more detail, if requested. Suchdata shall not be submitted until so requested.

Further guidance on the data requests of the Application are given directly in theApplication Forms in Annex 2.

7.1 Project Data Sheet

A template for a project data sheet with a brief description of the project is provided asForm A1. The project data sheet will be published on the Facilitys webpage after signature of the Grant Agreement. It should therefore not contain confidentialinformation (e.g. citations of internal reports, names of contractors).

The short characterisation of the resource should not contain narrative descriptions but akeyword-style summary e.g. amagmatic fault-hosted low-temperature system; maturehigh-temperature rift-related system with sustainable volcanic heat source; amagmaticdeep sedimentary aquifer. For distinction between the two major categories of high- or low-temperature resources, take 190C at an economically drillable depth as the

boundary.

For defining the type of major survey(s) planned for surface studies, just mention themethod (e.g. magnetotelluric [MT] survey).

Applicants of surface studies should give the co-ordinates of the midpoint (centre) of each surface study area in Latitude/Longitude (WGS 84): decimal degrees [] with 5

positions after decimal point for display on the Facilitys geothermal database.

Applicants for drilling projects should give the co-ordinates of each proposed well site

in Latitude/Longitude (WGS 84): decimal degrees [] with 5 positions after decimal point for display on the Facilitys geothermal database.

7.2 Cost Estimate

Applications shall, as part of their Application include a Cost Estimate containing adetailed breakdown of anticipated costs for surface studies / drilling projects which areeligible for support by the Facility. In order to allow for a judgement of the overall

project costs, Applicants also need to state any non-eligible costs which need to be borne by the Applicant (e.g. taxes, duties, clearance costs etc.).


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The project Cost Estimate has to be given in accordance with the project plan presented

in the Application Forms (Form F2).Applications shall demonstrate that anticipated costs are reasonable and adequate and that they represent value for money i.e. that costs and quality of all goods and servicesare at a minimum consistent with market norms and country standards, and preferablyrepresent a discount compared to market norms and country standards. As such,Applications should