The request for proposals (RFPs) to design, finance and operate phase 11 of the Wales gas to energy (GTE) project has been extended from November 14th to January 14th 2025 to ensure more participation, Prime Minister Mark Phillips has said.
“It is to encourage more participation by bidders and give more time [to those already interested], “the Prime Minister told Stabroek News yesterday when contacted.
In yesterday’s newspapers, the Office of the Prime Minister under which the project falls issued a notice for RFPs with the new deadline of January 14th 2025 at 9 am when bidders are to ensure their bids are submitted to the National Procurement and Tender Administration Board, Ministry of Finance, Georgetown.
In September the government had issued a call for an operator/manager for the Wales GtE power plant and separately also sought investors for a mirror project. That, Phillips had said, was evidence of strategic planning for the country’s energy needs which the government sees as increasing rapidly over the coming years. Government advertised for the RFP which it calls Phase 11 of the GtE project, saying it is on the basis of a 20 to 25-year Power Purchase Agreement (PPA).
“It is two different RFPs for two different purposes or projects,” Phillips had told this newspaper when asked about the two advertisements which fall under his office – one for the Operations and Maintenance company for the 300MW GtE plant and one for qualified firms to design, finance and operate another plant termed Phase 11 of GtE Project for which the company will also get a 20 to 25-year power purchasing agreement with this country.
The Prime Minister who holds the portfolio for energy, said that the operations and maintenance RFP outlines definitively what the scope of works is, while the RFP for Phase 11 gives an overview of what the government wants but will evaluate and choose the best proposal based on what the respective company outlines it can do.
“They will have to go through, evaluate the proposals and all of that…,” he said while pointing to the notice which said the RFP shall incorporate all that the government set out “and additional details. All questions will be answered based on the proposals received.”
Phillips said that the location of Phase II will be “on no more than 100 acres of land, immediately adjacent to the existing 300 MW Integrated facility.
“The project will be owned and financed 100% by the private sector, under a project finance structure, which will design and construct the integrated facilities, to a standard and specification that meets and or exceeds that of Phase I of the GtE.”
The RFP stated that only firms (consortia) adjudged to be experienced in engineering, procurement, and construction (EPC) and financing of comparable facilities, will be evaluated.
Government stated too that it shall have the right to approve the EPC contract and appoint an independent supervision firm, to ensure that the project is built as per the EPC contract and acceptable quality and specifications, pre-approved by the GoG.
Investors, the government said, “will recover their investment from (i) the sale of electricity via a 20 to 25-year term (negotiable) PPA at a price per KWH; (ii) monetization of the NGL’s. At the end of the PPA term, the entire facility will revert to the GoG at no cost. Phase II GtE will enjoy the same fiscal incentives as Phase 1.”