Process for Competitive Procurement

Step 1

The System Operator within the Transmission Company of Nigeria will generate an Annual Report highlighting the following;

  1. Requirements for new generation capacity
  2. Location of demand
  3. Type of demand (i.e. Base Load, Intermediate, and Peaking)
  4. Projected Transmission Network Capabilities and Constraints
  5. Projected Gas and other Fuel Supply Capabilities

Step 2

Nigerian Bulk Electricity Trading Plc (NBET) will then publish invitations for Expressions of Interest (EOI) in the Federal Government Tenders Journal, the World Bank procurement website and at least two Newspapers circulating within Nigeria.

Step 3

NBET shall review the submitted bids from    the    interested    parties   with expectations towards technical expertise, financial capability, and operating experience. NBET shall issue Request for Proposal (RFP) containing technical aspect and the commercial aspect to the shortlisted bidders after approval by the Nigerian Electricity Regulatory Commission (NERC).

Step 4

After NERC approves the Preferred and Reserve Bidders, NBET shall issue a Power Purchase Agreement to the Preferred Bidder for negotiations. During negotiations, the Preferred Bidders is expected to initiate a tender process for its Engineering, Procurement & Construction Contract in addition to its Long Term Service Agreement and its Operation and Maintenance Contract. In the event that negotiations are inconclusive with the preferred bidder, then the reserved bidder will be called upon.

Step 5

Where parties agree on the terms in the PPA, it will be executed pending review and    approval of the Environmental Impact Assessment Report by the Federal Ministry of Environment.

Process Flow