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Algeria invites bids to implement a 1000 MW solar power production project

Within the framework of the national policy on energy transition and renewable energy development, apply the provisions of Implementation Decree No. 17-98 dated February 26, 2017, which have been amended and supplemented on calling procedures. Bidding for renewable energy production or joint production and integration into the national electric energy supply system, the Ministry of Energy Transition and Renewable Energy invites investors to participate in bidding for the implementation of the «Solar Project 1000 MW».

CONTENT

1. The «Solar 1000 MW» project aims to establish project companies (SPVs) in charge of implementing solar power plant projects with a total capacity of 1000 MWc divided into lots from 50 to 300 MW/each. lot in Algerian territory with implementation time clearly stated in the bidding documents.

2. Locations of electricity production facilities from renewable energy sources will be provided to project companies by the Algerian Renewable Energy Company, referred to as «SHAEMS».

3. SHAEMS was assigned by the Minister of Energy Transition and Renewable Energy to be in charge of inviting investors to participate in bidding for the «Solar 1000 MW» project according to Decision No. 07 dated November 28, 2021 to prepare and handle calling for bids to implement the above project based on the following regulations:

- Project companies will be in charge of developing, financing, designing and supplying equipment, constructing, exploiting and maintaining solar power plants, building conduit facilities and connecting to solar power plants. the power grid of the above-mentioned power plants as well as the trading of electricity produced from these plants in accordance with the applicable laws and regulations of Algeria as well as in the contract documents.

- SHAEMS Company will associate with investors to participate in capital participation in companies under the project, individually or in combination with state-owned and/or private enterprises. The solar power plants of each lot will be developed by the assigned project company.

- The commercialization of produced electricity will be carried out through a power purchase agreement (Power Purchase Agreement PPA) signed between the project company and the designated buyer with an exploitation term of 25 years for each a power plant.

PARTICIPATION REQUIREMENTS AND CONDITIONS

1. Participation in this call for tenders is open to all Algerian and foreign legal or natural persons, individually or in groups. These candidates will:

- Mobilize necessary capital for the implementation of the 1000 MW Solar project according to the regulations stated in paragraph 3.1;

- Prove with confirmed documents that you have developed and designed independent power generation plant projects (IPP model, especially from renewable energy sources);

-  Capable of carrying out all requirements for this type of project.

2.  Investors interested in implementing this project will have to ensure the development, financing, design, equipment supply, construction, operation and maintenance of power plants, implementation installing electrical equipment and connecting power grids as well as commercializing electricity produced from the above plants.

3. Participation in the call for bids must comply with the condition of respecting the minimum rate of localization for each type of domestic product and service stated in the documents of the call for bids from investors.

4. Each member of a group cannot join another group among the bidders for this project.

5. Each candidate can bid for one or more lots with a maximum total capacity of 300 MW.

PROCEDURES FOR RECEIVING TECHNICAL DOCUMENTS FOR BIDDING

Investors interested in this call for bids must confirm their intention to receive the technical documents by sending a letter to SHAEMS company with scanned payment documents to the email address solar1000MW@shaems. dz.

Payment documents must clearly state the candidate's bank account with a total non-refundable amount of 140,000 Algerian Dina to customer account number 002 00005 00522000083 84 of SHAEMS company or 1000 USD to foreign currency account number number 002 00005 0053000020 53 of the company SHAEMS opened at the Foreign Bank of Algeria (Banque Extérieure d'Algérie, Agence Hydra Djenane El Malik branch, Hydra –Alger).

Upon receiving the above documents, SHAEMS company will notify the relevant investor of the appointment time to receive the technical bid documents.

INFORMATIONAL MEETINGS

According to the regulations on project technical bid documents, explanatory meetings will take place before the date of submission of technical and financial quotes of candidates who have received technical documents in order to provide all the necessary information. Necessary information for candidates to prepare and make an offer.

SUBMISSION OF PROPOSALS

The proposals for the 1000 MW Solar project must include a technical proposal and a financial proposal.

Each proposal is placed in a sealed envelope, clearly stating the reference and content of the call for bids as well as the name «technical proposal» (Solar 1000 MW project) or «financial proposal». depending on each case.

The financial proposal must contain the economic model provided by the contractor to calculate the KWh price of each power plant.

Bidding is carried out in a single stage with simultaneous submission of technical and financial offers.

FORMALIZATION OF OFFERINGS

The time to legalize the technical and financial proposals of the 1000 MW Solar project within the framework of the bidding invitation is 180 days from the date of submission of the proposals.

SUBMIT AND OPEN THE PROMOTION ENVELOPE

Applicants must submit a technical and financial proposal on April 30, 2022 at 10:00 (local time) at the following address: Conference room, tower B, Cité Chabani building, Val d'Hydra, capital Algiers capital (Salle des conférences, Tour B, Immeuble Cité Chabani, Val d'Hydra, Algiers).

The opening of the envelope containing the technical proposal will take place on April 30, 2022 from 10:00 (local time). Opening the envelope will be done in 2 stages:

Stage 1: Open the envelope containing the technical proposal;

Stage 2: Open the envelope containing the financial proposal at a later date if the technical proposals of the contractors are selected

BANK GUARANTEES

Bid guarantee

Technical and financial offers must be accompanied by administrative documents as required in the technical documents of the call for bids and specific bid guarantees as follows:

For foreign investors:

- Must have a total amount of 500,000 USD from a bank legally operating in Algeria for each lot in the 1000 MW Solar project.

- Original documents on bid guarantee must be included in the bid documents.

For Algerian investors:

- There is a total amount of 70,000,000 Algerian Dina from a bank operating legally in Algeria for each lot in the 1000 MW Solar project.

- Original documents on bid guarantee must be included in the bid documents.

For general offers by Algerian and foreign investors:

The bid guarantee amount must be paid in foreign currency for foreign investors and in dinars for Algerian investors according to the participation ratio of each investor.

The bid guarantee amount can be disbursed into investment guarantee money if the bidder is selected.

Investment security money

The total deposit to secure the investment is set at 10% of total investment expenses. The selected bidder will pay this amount for each power plant upon financial settlement and the amount will be released when the plant comes into use.

APPRAISAL OF OFFERINGS

- Technical and financial proposals will be evaluated according to the evaluation procedures described in the documents of this call for tenders. The appraisal results will be notified to all bidders.

- Bidders selected after evaluating the technical proposals will be invited to attend the opening of the envelope containing the financial proposals.

- After checking and appraising the financial quotes, selected bidders will be assigned contracts for each lot. This delivery will be done on the basis of the lowest price compared to the ceiling price.

- After evaluating the financial offers, the selected bidder will receive written notification of acceptance of the offer, related to the KWh price from the economic evaluation model of the bidding invitation.

All bidders not selected after evaluation of financial offers will also be notified.

Financial offers from bidders whose technical offers have previously been judged unsuitable will be returned unopened.

Source: Vietnam Trade Office in Algeria

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