Technical and Economic Feasibility Study for 450mw CCGT Power Generating Facility

1.0 Introduction
On 18 January 2008, the 33rd Ordinary Session of the Authority of Heads of State and Government (the “Authority�? of the Economic Community enacted Supplementary Act  (the “Act�?. The Act adopted the xxxx, a specialized institution established by xxxx The Authority’s adoption of the xxxx provides the necessary authority for its implementation.
The Act in accordance with the xxxx directs that xxxx undertake the following:
• Acquire suitable land (the “Site�?, at a location with access to natural gas, to build a nominal 450 MW combined cycle power plant (the “Facility�? at xxx in Africa;
• Secure designation of the acquired land as a sub-regional Power Park with “Free Zone Status;�?BR>• Identify and appoint a strategic partner to accomplish the implementation of the Facility as a public-private partnership (PPP). The appointment and implementation of the PPP shall be evidenced by a signed Memorandum of Understanding (MOU) between xxx and the selected strategic partner; and
• Create a separate special-purpose (SPC) to own the Facility with 20% of the equity in the SPC owned by xxxx member utilities.
To fulfill the objectives of the MOU, xxxx has decided to undertake a feasibility study to investigate the technical and economic aspects toimplementing the Facility.

2.0 Objectives of the study
The objectives of the study are to:
• Review existing studies on the regional long term power requirements and the power resource development plans for the service area,
• Undertake a feasibility study for the design and construction of a nominal 450 MW combined cycle gas fired plant at the xxx acquired location in xxxx, and
• Complete an economic analysis for the financing and sustainability of the Facility.


To achieve the study objectives, the following steps will be undertaken:
• Investigate the Site to determine its suitability for construction of the Facility.
The issues will include Site location, area and configuration; geological and soils characteristics; proximity to the natural gas source; proximity to the high voltage transmission system; proximity to the sea; proximity to public roads and other infrastructure; and all associated right-of-ways;
• Investigate the Site to determine the availability and characteristics of cooling water, industrial and potable water, sewage treatment, electrical power, and communications and data connections;
• Investigate the Site by collecting data of its historic ambient weather characteristics. The characteristics shall include assembling daily, monthly, and annual temperature, humidity, wind, and rainfall data and summaries for the last five years if possible;
• Investigate seacoast locations in proximity of the Site by collecting available historic sea water temperature data at various depths and past studies of the character of the sea bed;
• Identify existing natural gas fired combined cycle gas turbine strategies that would meet the Facility objectives and are suitable for the Site. Determine features that would be incorporated into the Facility’s final design that would optimize efficiency, operations, and maintenance. Provide a list of appropriate alternate back-up fuels with their advantages and disadvantages.
• Provide a conceptual layout, base budget and schedule for the design, construction, and commissioning of the Facility. Provide as additive items any desirable features that should be considered for incorporation into the final design, and
• Complete an economic and financial analysis of total investment in the Facility utilizing a Guaranteed Maximum Price procurement and the annual income for Facility sustainability. The sustainability will include the amortization payments to the investors, operations, maintenance, services, reserves, and management for the financing duration.
The results of this study will indicate the type and scope of activities that would occur during Facility construction and operation. Utilizing these results A will initiate an independent Environmental and Social Impact Assessment (ESIA). The ESIA will be undertaken following applicable rules and regulations of the host country, and World Bank guidelines. The results of the ESIA will be presented through xxxx to the Environmental Protection Agency for approval.

3.0 Scope of Work
The xxxx studies will be undertaken in accordance with internationally accepted practices and standards of the industry following applicable laws and regulations. The activities to achieve the objectives of the study include the following:
3.1 Preparatory Works
Existing plans, data, and reports will be collected and reviewed. Consultation with and comments from xxx will be solicited to maintain consistency with the overall Relevant information include:
A. Existing studies on load projections in the regions to be serviced by the Facility;
B. Long-term regional power development plans;
C. Integration of the Facility into the regional power development plan;
D. Operating records of existing power plants in nearby locations;
E. surveys, geo-technical reports, and investigative reports of the Site;
F. Existing and planned infrastructure development adjacent the Site;
G. Source location and characteristics of the natural gas supply including supply pressure;
H. Connection location and characteristics of the HV transmission line;
I. From xxx, discussions and status of natural gas acquisition and gas character;
J. From xxxx, discussions and status of long term power purchases; and
K. From xxxx, discussions and status related to member utilities that will hold equity in the SPC.

3.2 Site Suitability Study
Using existing available data and on-site inspection, the site suitability study shall include
analysis of:
A. Site location and boundaries,
B. Site’s existing access and required access development,
C. Topographical features, contours, and conditions,
D. Soil and geo-technical characteristics,
E. Seismic concerns,
F. Development necessary for access to seawater, natural gas, hv transmission connection, and public roads,
G. Connection, and public roads, and
H. Development necessary to secure seawater for cooling, desalinization, sewage discharge after treatment, and jetty unloading of secondary fuel.
 

3.3 Site Resource Study
Using existing available data and on-site inspection, the site resource study shall include analysis of:
A. Existing local infrastructure improvements including suitability of roads for equipment delivery;
B. Availability and characteristics of existing infrastructure to provide cooling water, industrial and potable water, sewage treatment, electrical power, and communications and data connections;
C. Development necessary to secure any of items A &B above utilizing the existing infrastructure;
D. Availability of any of the items A and B above from existing development by others;
E. Undertakings as part of the Facility Site development necessary to acquire any of items A and B above; and
F. Availability and character of local construction materials, equipment, contractors, and labor.
 

3.4 Site Climate and Seacoast Study
Using existing available data and on-site inspection, the site climate study shall include analysis, and characterization of the Site’s temperature, humidity, rainfall, and wind. At least five years of data shall be sought. The characterization shall include daily, monthly, and annual highs, lows, median, and average. The wind study shall include an analysis of wind magnitude and wind direction prevalence and variations. The study shall also identify 50 year and 100 year events. Using existing available data and on-site inspection, the site seacoast study, in the vicinity of the Site, shall include analysis of the seawater temperature at various locations and at various depths and provide highs, lows, medians, and averages. The seacoast study shall also characterize the current flow and the character of the seabed.
 

3.5 Plant Configuration and Optimization Study
For the 450 MW plant size and fuel utilization indicated in the xxxx, the plant configuration study shall include:
A. An identification of alternative combine cycle gas turbine strategies along with their major components �?the combustion turbine, the gas turbine generator, the heat recovery steam generator, the steam turbine, and the condensate system appropriate for the Facility. The study shall provide a matrix tabulation of the manufacturers of the major components. The study shall research available data to determine existing installations utilizing each of the strategies. Where possible, the manufacturers of the major components shall be identified;
B. Using manufacturer standard products (minimizing the need for customization), suggest optimal major component combinations that would meet the xxxx objectives;
C. An analysis of the utilization of various appropriate Facility features that would enhance efficient, operation, and maintenance;
D. An identification of secondary or alternative fuels that can be utilized as back-up fuel, their advantages and disadvantages, first costs, life cycle costs, including regional strategies and implications of utilization;
E. Conceptual layouts for the power island containing the major systems including major lifting systems for maintenance and services;
F. A ranking of the strategies by costs (including balance of plant), efficiency, useful life, and proven technology utilizing various selected backup fuels;
G. A conceptual layout for the Facility including power island, transformers, switch yards, cooling towers, fuel receiving and storage, auxiliary buildings, and auxiliary support systems (e.g., fuel prep, desalination, water treatment and water storage, sewage treatment, cooling water intake and discharge, site roads, site housing, and security structures);
H. Conceptual layouts of the natural gas fuel and high voltage transmission line connection system equipment and route;
I. Budgetary costs line items (including spare parts, administrative and maintenance resources) for the predevelopment, design, construction, and commissioning of the Facility;
J. A schedule for the design, construction, and commissioning of the Facility using a design-build Guaranteed Maximum Price strategy;
K. An identification and associated schedule (with costs) of the required staffing, training, maintenance, operations, outside support services, and management oversight by the Facility for the first year of operations;
L. A Short Circuit Analysis indicating the Facility’s impact on the transmission system and adjacent facilities;
M. Plant automation features incorporated; and
N. The reference design standards appropriate.

3.6 The Special Purpose Company
The consultant shall confer with xxxx to establish the following:
A. The equity structure of the SPC,
B. The xxxx Member utilities that will participate in the SPC,
C. The funding of equity in the SPC,
D. The securing of sub-regional Power Park designation for the Site,
E. The acquisition of “Free Zone Status�?benefits for xxx in its role as strategic partner and for the SPC, and
F. The designation of the SPC as a “public�?Special Purpose Company.
 

3.7 The Economic and Financial Study
The economic and financial study shall include the following:
A. Utilizing the costs developed in Section 3.5 and for various interest rates and for various amortization schedules, tabulate corresponding annual and semi-annual payments to retire the Facility debt and operate the Facility,
B. Utilizing the costs developed in Section 3.5 and the nominal MW output for the Facility, tabulate the corresponding costs per kwh for various durations of debt amortization for sustainability of the Facility,
C. From Section 3.7.B above, suggest with rationale the preferred kwh unit price billing to xxxx by the SPC for energy conversion costs of natural gas to electric
power,
D. Suggest with rationale the preferred kwh unit price adjustment frequency for the conversion payments and list events that should trigger additional adjustment decisions.
E. Describe the conditions precedent for commercial development and any utilization of commercial (private) financing,
F. Prepare and include in the report, the economic and financial analysis in matrix form;
G. Compute Economic Internal Rate of Return (EIRR), the Financial Internal Rate of Return (FIRR), and the Net Present Value for cases considered and for development;
H. Carry out sensitivity analysis; and
I. Tabulate the possible risk factors and mitigation measures that can be taken.


4.0 Time Schedule
In accordance with the Aide Memoire, the feasibility study is to be completed within 120 days following approval of this Terms of Reference and xxxx selection of consultant(s) to undertake the study. See Attachment A for the study schedule.
 

5.0 Deliverables
The work shall be completed in accordance with the subsection activities of Section 3.0, Scope of Work, with reports submitted to xxx in English. Upon xxxx request (no more than two total), the Consultant will make provisions for seminars to accompany interim and draft reports to facilitate the receipt of comments.
The following reports shall be prepared:
• Inception report (10 copies)
• Data report (10 copies)
• Interim report (10 copies)
• Draft final report (10 copies)
• Final report (10 copies)
Each Report shall contain (as appropriate) the following (scale and software type to be agreed):
• Site location plan
• Plot plan
• Conceptual layout plan for the Power Island
• Conceptual layout plan for the entire Facility
• Right of way route plans for gas and transmission line connection
• Right of way route plans for all utilities and cooling water
• Photos as appropriate and agreed
Electronic copies (on CDs or DVDs) of each report in MSWord, MSExcel, and PDF format, each plan, and all photos will be provided to xxx. Full scale drawings of all
plans shall be provided to xxx.
Electronic copies (on CDs or DVDs or unless otherwise agreed) of all data collected shall be provided to xxxx.
An analysis will be undertaken by xxxx upon the review of existing data/reports and preliminary site visits and upon receipt of the draft interim report. Consultation will be
held between xxx and xxxto review the Sxxxx findings.

6.0 Conduct of the Work
A will report to the xxx Secretariat who will designate a xxx  representative as the contact person for this study.
A shall review the execution plan and milestones contained in the selected Consultant’s response to this TOR and mutually agree on any changes or clarifications prior to contract award. Following the foregoing discussions, A shall issue a contract to the Consultant accompanied by a Notice to Proceed.
The consultant will communicate with the A designated Project Manager on a scheduled basis (no less than twice weekly) and additional as needed to fully and timely prosecute the work. It is expected that email with attachments shall be a major means of communication and overnight delivery for issues and materials too large for email
attachments. The consultant shall provide bimonthly reports discussing progress to date, problems incurred and disposition, and work to be pursued during the next two bimonthly periods (format to be agreed).
The Consultant will confer with the designated xxxx representative for coordination, information, and for maintaining conformity with the intent of the xxxxx. The Consultant shall also confer and consult with the xxxx representative in any contacts and discussions with any xxxx Member Utility. All Consultant discussions with xxxx or Member utilities shall be memorialized and distributed to the participants and A.
Email communications between A, xxxx, and the Consultant shall be cc’d to assure that all parties are in receipt of copies.
 

7.0 Participation of xxxx
xxxx shall provide to A, at xxx expense, the following:
• A designated xxx contact person for this study plus a xxxx alternate,
• Timely response and review to assure expeditious completion of the study,
• Arrangements to meet with any xxxx Member or other party that is or may become involved in or affected by the Facility, and
• Assistance in obtaining for A staff and A Consultants, long-term travel, entry, and exit visa for all xxx Member States affected by this study.
A shall make its own arrangements in coordination with xxx for whatever services xxxx is unable to provide.