Forty-six companies drawn from all over the world have submitted offers for the N$13.8 billion Kudu Power Station pre-qualification engineering project management (EPC) turnkey tender, the Tender Board of Namibia says.
The 800MW power station in Oranjemund is a NamPower project which is expected to be Namibia’s major powerhouse when completed sometime in 2017.
The power station’s combined cycle gas turbines (CCGT) will run on the gas from the Kudu Gas Field and will be connected to both the Namibian and South African power grids.
Local and regional power consumers will have to enter into long term power purchase agreements (PPAs) with NamPower.
Out of the companies that have tendered their bids for the project, 10 are Namibian namely Izzy Cranes, John and Penny Group that has a joint venture with Lidwala (South Africa) and Angelo Roselli (Italy); Power Project and J&P Group in partnership with EWCCCGT (China) and General Electric (USA); HAW Retailers t/a Ark Trading; B&K Civics; Aurecon and Emcon Construction Group partnering Construction Queiroz Galvao SA (Brazil); Grinaker Ltd; and !Nanseb Marine Industries in conjunction with Daewoo Engineering (Korea).
At least 10 of the companies are Chinese and these are China Machinery Engineering; CSCEC/ SXDE JV; China National Electric Corporation; Sepco 3 Electric Power Construction Corporation; Sepco Electric Power Corporation; Shanghai Electric Group in partnership with Siemens (Germany) JV; China National Technology Import and Export Corporation; Power Construction Corporation.
Nine are from South Africa – Wartsila; Lesedi Nuclear Services; Duro Felguera working with Alston (Switzerland); Ibedrola Engineering & Construction with Group 5, General Electric and Alstrom JV; Amatreso and Kayema with the Israel Electric Corporation; as well as Kentz.
Greece has three each: Metka (SA); Sakhem International Construction and Terna (SA) while South Korea too has three – Posco Engineering and Construction; Hyundai Engineering.
Three of the companies are Spanish: Cobra Insatalamones Servicos; Tecnicas Reunidas; and Abener Ernegia while Japan has two – Consortium: Sumitomo/ Mitsubishi Heavy Industries and Marubeni Corporation.
Germany also has two – Siemens AG; M&W Power Solutions: United States has two - GE Electric and CBI Company: Shaw Power International: India has one – Naftogaz: United Kingdom, one – York Industries: Brazil, one – Construtora Andrade Gutierrez: Australia, one – Force Group International: Korea, one – GS Engineering & Construction: United Arab Emirates, one – Farab International: Turkey, one – Gama Power Systems Engineering & Contracting Incorporated: Italy, one – Ansaldo Energia: Portugal, one – Koch Engineering & Construction: and Canada, one – SNC-Lavelin & General Electrical.
NamPower boss, Paulinus Shilamba said he was encouraged by the response from companies, “NamPower as the project sponsor of the Kudu Power Station development was very encouraged by the amount of bids received which was far beyond our expectations.”
He further told journalists during a press conference in Windhoek recently that evaluation had already started and that successful pre-qualification bidders and the public would be informed once the process had been concluded and approved by Government.
Names of successful pre-qualification tenderers will be announced in the second quarter of this year while the EPC turnkey contractor will be chosen in the fourth quarter of this year.
NamPower says it signed the project development agreement (PDA) with Kudu Gas Field Upstream Developers in early March this year for the facilitation of funding until March next year.
Although NamPower could not give names of prospective funders, the power utility says international funding agencies and commercial banks have shown interest in the Kudu Power Station project.
“With regards to the financing of the project, NamPower has received keen interest from international development funding agencies as well as commercial banking institutions. The procurement of the Lead Arranger is expected to commence in June 2013,” Shilamba said.
Already, Shilamba revealed that negotiations with the Copperbelt Energy Corporation (CEC) were almost completed where the Zambian entity is seeking to buy 300MW as well as take up minority shares in the holding company, KuduPower.