Small Grids - Legal Consultant Tender, Papua New Guinea - 61014088

Procurement Summary

Country : Papua New Guinea

Summary : Small Grids - Legal Consultant

Deadline : 30 Dec 2021

Other Information

Notice Type : Tender

TOT Ref.No.: 61014088

Document Ref. No. : 1278207

Financier : World Bank (WB)

Purchaser Ownership : -

Tender Value : Refer Document

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Tender Details

Expression of Interest are invited for Papua New Guinea Small Grids - Legal Consultant.

ASSIGNMENT DESCRIPTION

PNG Power Limited ("PPL") is the state-owned power utility responsible for generation, transmission, distribution and retailing of electricity throughout Papua New Guinea (PNG). PPL operates two primary grids on the main island (Port Moresby and Ramu) and 17 smaller and mini/micro-grids across numerous remote centers and outlying islands.

Despite having large energy resources such as hydro and domestic gas, in addition to solar, geothermal and other potential energy sources, access to power is very low. It is estimated that only about 13% of the population has access to on-grid electricity, mainly around urban centers. Poor access to power is one of the defining development challenges facing PNG and requires action on a variety of fronts. As part of an integrated WBG approach to the power sector, which forms part of a wider donor response, this project is focused on power generation challenges in the remote mini/micro grids operated by PPL.
PPL's 17 remote mini-grid centers operate with peak loads ranging from 26 KW to 10 MW. There is a total of around 1.5 million people located around these centers (about 15% of PNGs population). The total peak demand for the remote centers is 32 MW with an available capacity of 45 MW and installed capacity of 104 MW, most of which is diesel based. PPL operates under a fixed national tariff of US$29 cents/kWh. Generation costs across the remote centers are very high, around US$36 cents/kWh on average. Cost drivers are: (i) high fuel supply costs in remote areas; (ii) use of old, inefficient and unreliable generators that PPL lacks the capacity to maintain and rehabilitate; (iii) reliance on expensive leased generators as a stop-gap solution in some locations; and (iv) PPL's operational inefficiency. Because the cost of generation exceeds the tariff by a large margin, PPL incurs substantial losses for every kWh generated in these remote grids, providing a strong financial disincentive for increasing access in remote areas.
For those few customers who do have access to electricity, system reliability is a major problem. Power blackouts are experienced in all local grids and are frequent throughout the year, disrupting lives and businesses. To ensure reliable supply, many larger business consumers opt to generate their own power, further undermining the financial sustainability of the network. Lack of access to affordable and reliable power supply is limiting economic growth in urban areas and contributing to poverty in rural areas. To enhance reliability and efficiency and to help reduce financial losses, and thereby improve the incentives for increasing access, PPL is exploring the potential for the private sector to play a greater role in power generation.
IFC is manded by the PPL (the Client) to explore what it can do to attract the private sector for power generation in remote centers, in order to improve the reliability and the quality of power supply and reduce financial losses. PNG has a mixed track record in the use of Independent Power Producers (IPPs) on its two main grids and no experience with IPPs in remote areas, additionally the project will need to be implemented in [7] PPL selected different locations. Attracting the private sector to the remote centers is likely to require an innovative approach.
IFC is looking to hire a legal consultant (the Consultant) to support IFC through the provision of legal services during due diligence, transaction structuring and implementation. This support relates to all legal aspects of the Project, including legal due diligence, preparation of tender documents, drafting the PPP agreement and/or other transaction documents, and conducting a fair and transparent tender process. Interested firms are encouraged to submit the Express of Interests (EOI) through the procurement portal

The World Bank Group now invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Consultants may associate to enhance their qualifications.

Publication Date: 09-Dec-2021

Expression of Interest Deadline: 30-Dec-2021

Documents

 Tender Notice