Expression of Interest (EoI) for Private Partnership: TIGA 10MW Hydroelectricity Power Plant and 2X3MW Challawa Hydro-Electricity Power Plant at the Kano State Ministry of Works and Housing

Title: Expression of Interest (EoI) for Private Partnership: TIGA 10MW Hydroelectricity Power Plant and 2X3MW Challawa Hydro-Electricity Power Plant in Kano State

• The Kano State Government under the leadership of His Excellency the Executive Governor Alh. Abba Kabir Yusuf in its effort to enhance the supply of adequate and reliable supply of electricity to its citizens as well as reduce its over-reliance on the National Grid seeks to concession its Tiga and Challawa Power Plants to Private Sector operators.
• The Kano State Ministry of Works and Housing invites qualified interested firms and/or consortium of firms both Foreign/International and Local to express interest in concessioning the Tiga 10MW Power plant, and completing and operating the 2x3MW Challawa Hydroelectric Power Plant which is currently under construction to participate in the qualification process for the selection of a Private Sector Operator for each of the 2 plants through a Competitive Bidding process.
• The Kano State Government expects the selected Private Partner for Tiga Hydro to undertake the Operation, Maintenance and Management (O&M) of the Tiga Hydro Plant on the Terms and Conditions to be set out in the Concession Agreement. For the Challawa 2x3MW Plant which is currently at 45% completion the State Government expects the selected Private Partner to finance the completion of the project by providing the required funding necessary and ensure its completion on agreed schedule, and upon completion also undertake the Operation, Maintenance and Management (O&M) of the Challawa Hydro Plant on the Terms and Conditions to be set out in the Concession Agreement.
• Interested Parties should indicate their interest in either one or both projects by submitting separate proposals for each. Parties should submit their Technical and Financial Proposalsin Financing, Construction, Operation, Maintenance and Management (O&M), of the Tiga 10MW and Challawa 23MW hydro-Plants under International Competitive Bidding with a view to achieving the effective utilization of the Facilities.

• The Challawa Gorge Dam is located in Karaye local Government which is about 90 km southwest of Kano City. It is one of the biggest Dams in Kano State on the Challawa River, a tributary of the Kano River.
  
• The construction of the dam which was done between 1990-1992 was initiated by the Kano state Government and first handled by Water Resources and Engineering Construction Agency (WRECA), the State-owned engineering construction company, before it was subsequently handed over to the FGN who took over the funding and contracted the job to Julius Berger to complete.
• The Dam is 42 meters high and 7.8 km in length with a storage capacity of 904,000,000m'. The direct catchment area is 3857 km. It has Hydropower generation facilities with a potential to generate 6MW. Outside the hydro power potential Challawa Dam was build purposely built to support irrigation needs of the farming communities living within its catchment area and also boost water supply to metropolitan Kano.
• The Challawa Hydroelectricity Plant is one of the 2 power Hydro Power Plants initiated by the Kano State govemment essentially to cater for the power requirement of; the state water board with a view of ensuring adequate and hygienic supply of drinking water to the citizens, street lightening for enhanced security of lives and properties and State health institutions to ensure safe delivery of health services to its teeming population.
  
• The Challawa and Tiga Hydro Power Plant projects commenced in 2001 when the State government commissioned a study to determine the feasibility of establishing Hydroelectricity plants in Challawa and Tiga Dams.
• The Challawa Hydroelectric Plant is now about 45% completed It is expected that the Plant upon completion will have a capacity of about 6MW (2x3MW) during the rainy season and 2- 3MW during the dry season.

• The Tiga Dam is located in southern part of Kano State also precisely in Rano Local Government. It was constructed in 1972-1974 by the same WRECA purposely to improve food security through the development of irrigation. It is the biggest reservoir on the Kano River, the main tributary of the Hadeja River. Tiga has a catchment area of 6,641 kms, a maximum height of 42.24 meters and a storage of 1,845,000,000 m2
• Tiga like Challawa also aside the irrigation support it is also a major source of water supply to metropolitan Kano. Its Hydro power generation capacity is estimated to be 10 to 15 MW during the rainy season and 3 to 4 MW in the dry season.
• The Tiga Hydro Plant was completed and commissioned in 2023 but it is yet to reach its full potential arising from a number of operational constraints.

• To Improve the Generation capacity, ensure reliability of supply to end users,
  
• To propose additional reliable/alternativesource of Power that can enhance power supply from the facility including the installation of solar farm to compliment supply from the plant especially off season.
• To manage the Hydro-plant for improved efficiency and overall benefit of the citizens
• To ensure an adequate return on investment for both the State Government and the Private Operator by covering their prudent costs and ensuring that the resultant tariff is affordable to end users.

• To fund the Completion of the Challawa 2X3MW HEP to the level of Generation and Distribution envisioned.
• To Improve the existing Design vis-a-viz Generation and evacuation corridor and/ or propose reliable alternatives for enhanced benefit of the facility including through the installation of solar plant or other viable alternatives
  
• To complete the Hydro-plant for improved efficiency and benefit of the citizens.
• To ensure an adequate return on investment for both the State Government and the Private Operator by covering their prudent costs and ensuring that the resultant tariff is affordable to end users based on a Build, Operate and Transfer (BOT) model.

• Proven Track Record in the successful execution of at-least two (2) similar Projects in the last 7 Years as a Contractor
• Proven Track Record in the successful execution of at-least two (2) similar Projects as an Investor under the PPP (Sole) and/ or as Consortium
• Proven Track Record of operating as a concessionaire of an electricity power plant
• Proven track record of operation and maintenance of an electricity plant Operation and Maintenance
• Proven track record of power project financing f. Experience in Power Generation and Marketing

• Evidence of financial capacity to raise a minimum of 25 million USD for the Private Partnership
• Minimum Average Annual Turnover of 30 Billion Naira or its equivalent in the last 3 Years to be evidenced by Audited Financial Statement (Shall consider combined revenue of three years from all members if a consortium).
• Net worth of at-least 20 Billion Naira or its equivalent.

• Company Profile Evidenced with CV'S and Copies of relevant Professional qualifications and Regulatory Licenses of Key Staff with expertise in Power Projects with experience in Power Generation, Distribution, Financing and Management

• Evidence of Valid Registration /Certificate of incorporation of the Company/Investor in the country of Origin
• Evidence of Tax Clearance Certificates
• No bankruptcy or insolvency Proceedings or that No Director has been convicted in any Country for Criminal offence or Falsification of records
  
• All Documents to be submitted are to be Genuine and Up-to-Date.

• Ability to provide Employment to the Team Youth and Community Development in the State
• Proposal to include Health, Safety, Environmental Procedures and Plan

• Proven Track Record in the successful construction or rehabilitation of at least 2 Hydro Power Plants and any other on-grid and or embedded Power Generation Plant of at least 20 MW in the last 7 years as a Contractor
  
• Proven Track Record as a Concessionaire of an Electricity Generation Plant or Facility Management of an Electricity Generation Plant. c. Experience in Power Generation and Marketing

• Evidence of financial capacity to raise a minimum of USDS million for the Private Partnership
• Minimum Average Annual Turnover of 30 billion Naira in the last 3 Years to be evidenced by Audited Financial Statement
• Net worth of at least 15 Billion Naira

• Company Profile Evidenced with CVS and Copies of relevant Professional qualifications and Regulatory Licenses of Key Staff with expertise in Power Projects with experience in Power Generation, Distribution, Financing and Management

• Evidence of Valid Registration/Certificate of incorporation of the Company/Investor in the country of Origin
• Evidence of Tax Clearance Certificates
• No bankruptcy or insolvency Proceedings or that No Director has been convicted in any Country for Criminal offence or Falsification of records
  
• All Documents to be submitted are to be genuine and Up-to-Date

• Ability to provide employment opportunities to the teaming Youth in the state and support the communities where the projects are sited
  
• Proposal to include Health, Safety, Environmental Procedures and Plan.

• Technical Capability
• Financial Capability
• Key Professionals
• Scope/Project Understanding and Methodology
• Tariff proposal (model) for cost recovery
  
• Local Content, Transfer of Knowledge and compliance to Safety, Health, Social, Legal and Environmental.

• This Advertisement shall not be construed as a commitment on the Part of the Ministry
• The Ministry may verify any or all the claims made by the Companies and shall disqualify same if found to be false or mis-representation
• None compliance to any of the above instruction will lead to disqualification of the Company
• The Ministry reserve the Right to reject any Company at it sole discretion and at no cost whatsoever in line with section 28 of the Public Procurement Act, 2007 of the Federal Republic of Nigeria
• Interested Investors and Companies wishing to inspect the assets are expected to liaise with the Departments of Planning and Mechanical / Electrical, Ministry of Works and Housing for Site Visit and other details related to the PPP before submission of their Expression of Interest (EOI) through the following contact numbers +2348035894839 and +2348062526750.