coega presentation ccgt eoi session 14 … project overvi… · total r12.4 billion 7188 34648. ......
TRANSCRIPT
CONTENT
• Coega General Overview
• The Project
– Overview
– Technical Conceptual Study
– Commercial Aspects
• Other Considerations
• CDC Procurement Policy
• Questions
ORGANISATIONAL MANDATE
• Attraction of Investment (Local & Foreign)
• Enable Technology Transfer
• Human Capital Development
• Creation of Decent Work
• Economic Development
• Facilitate Enabling Infrastructure Investments
• Assist Government on Project Delivery
COEGA BUSINESS MODEL
ECONOMIC ZONE (+NMBSP)
EXTERNAL
SERVICES
COEGA DEVELOPMENT CORPORATION
Investment Promotion Operations Consultancy Services
Fa
cilit
ies
Infr
astr
uc
ture
Su
pp
ort
Se
rvic
es
Cu
sto
ms +
Lo
gis
tics
Finance
Glo
bal M
ark
ets
Pro
jec
t
De
ve
lop
me
nt
Investor Services
(OSISC)
Systems
ICT
Marketing
Research
Ne
go
tia
tio
ns
Infrastructure Development Human Capital
Audit
Human Resources, Legal, Office Management, Travel
Po
rtfo
lio
De
ve
lop
me
nt
Tra
inin
g a
nd
De
ve
lop
me
nt
Em
plo
yee
Re
lati
on
s
Re
cru
itm
en
t a
nd
Pla
ce
me
nt
SH
E
Infr
astr
uc
ture
D
eve
lop
me
nt
SM
ME
De
ve
lop
men
t
Infr
astr
uc
ture
P
lan
nin
gECONOMIC ZONE (+NMBSP)
EXTERNAL
SERVICES
COEGA DEVELOPMENT CORPORATION
Investment Promotion Operations Consultancy Services
Fa
cilit
ies
Infr
astr
uc
ture
Su
pp
ort
Se
rvic
es
Cu
sto
ms +
Lo
gis
tics
Finance
Glo
bal M
ark
ets
Pro
jec
t
De
ve
lop
me
nt
Investor Services
(OSISC)
Systems
ICT
Marketing
Research
Ne
go
tia
tio
ns
Infrastructure Development Human Capital
Audit
Human Resources, Legal, Office Management, Travel
Po
rtfo
lio
De
ve
lop
me
nt
Tra
inin
g a
nd
De
ve
lop
me
nt
Em
plo
yee
Re
lati
on
s
Re
cru
itm
en
t a
nd
Pla
ce
me
nt
SH
E
Infr
astr
uc
ture
D
eve
lop
me
nt
SM
ME
De
ve
lop
men
t
Infr
astr
uc
ture
P
lan
nin
g
Man
agem
ent
CHANNELS OF INTERVENTION
• Industrial Development Zone (IDZ)
• Nelson Mandela Bay Logistics Park (NMBLP)
• Physical Infrastructure Programme Management
• Strategic Advisory
• Human Capital Development (HCS)
• Economic Research
POLICY RELEVANCE OF COEGA
• Facilitate the creation of an industrial complex with clear
economic advantages;
• Provide the location for the establishment of strategic
investments;
• Take advantage of existing capacity that promotes
integration with local industry
• Increase value-added production; and
• Create employment and other economic and social
benefits in the region in which it is located
SIGNED INVESTORS
SECTOR VALUE DIRECT
EMPLOYMENT
INDIRECT
EMPLOYMENT
Chemicals R6 billion 800 1800
Logistics R85 million 417 21178
Auto components R694 million 616 1682
Alternative energy R1.5 billion 50 350
BPO R31 million 120 48
Downstream metals (Iron and
Steel)
R75 million 120 100
Food & Beverage Industries R4 billion 5015 9450
Manufacturing R50 million 50 40
Total R12.4 billion 7188 34648
CDC & THE CCGT PROJECT
• CDC facilitated in terms of attracting investment and
enabling IPP
• Consistent to policy of Government
• Worked with Departments of Mineral & Energy and now
Department of Energy
• Takes cognisance of changes in the energy sector
institutions and roles
PROJECT OVERVIEW
• Background
– Project was started by major entities
– Independent power production was a challenge and the entities withdrew from the process
– Project is relevant and has been accepted at National Gov. level
– CDC was involved early 2008 to do groundwork for an IPP
• Motivation
– Development of IDZ taking the future needs into account
– There is a need for a baseload power station in the EC
– Government imperative of opening the IPP market
– The project is in line with the Integrated Resource Plan
– Reduce SA’s carbon footprint
– Efficient technology
– Diversification of SA’s fuel sources
PROJECT OVERVIEW (2)
• Concept
– Up to 3200MWe envisaged
– Baseload Power Station
– LNG as the preferred fuel source
• Why Coega
– Transmission lines and substation availability
– Port of Ngqura with potential infrastructure and logistical facilities
– Large Industrial users in the IDZ
– Seawater cooling availability
– Grid stability with EC baseload
– Local power security
– Availability of land
• Pre-Feasibility Report– The Project
– Project Owner
– Value Proposition & Alignment of Objectives
– Economic Analysis
– Electricity Sector Analysis
– Natural Gas Sector Analysis
– Regulatory and Legal Framework
– Commercial Structures
– Target Strategic Partners
– Technical Study
– Financing Options
– Project Financial Viability
– Risk Mitigation
• Class II Cost Estimate (ROM 40%)
TECHNICAL CONCEPTUAL STUDY
16
TYPICAL DESIGN BASIS
• Site location is fixed (bordered by Zone 8 & 10)
• 3200 MWe Combined Cycle Power Plant (4 x 800 MWe)
• Fuel is Natural Gas (regasified on site from imported LNG)
• Some municipal effluent (water) available for re-use
18
Power Plant Site
FUEL SUPPLY
• 3200 MWe
• ~4 million tons LNG per year
(8.6 million m3 per year)
• Requires a ship every 5
days (135,000 m3 capacity)
• Onshore regasification
20
COOLING WATER SYSTEM
• Significant condenser cooling
requirements (approx 1 million m3 per
800MW per day)
• Cooling Options
– Open Cycle (once through cooling)
– Closed Cycle (wet cooling towers, dry
cooling)
• Solution will be influenced by
– Marine regulations (sea water intake, sea
water temperature rise)
– Site conditions (elevation, water availability,
water and ambient temperatures)
• EIA and detailed study needed to
determine optimal cooling solution 21
COMMERCIAL ASPECTS
• Conceptual Project’s Commercial Structure
GovernmentAuthorities
O&MContractor
EPC Contractors
BOT Law/Concession Agreement/Licences/ Permits/Other Approvals
Equity/Joint Venture Agreement
Financing/Security Documentation/Equity Bridge Loan
EPC Contract(s) O&M Agreement
ProjectCompany
ProjectSponsors
(Consortium Agreement)
ProjectLenders
Offtaker
Power Purchase Agreement (“PPA”)
Land Owner
Land Purchase/
Lease/Land Use Rights
Bank Performance Bond (O+M)
BankPerformance Bond (EPC)
Fuel Supply/Transportation AgreementsNote: There will also be direct agreements between the Project Lenders and various project parties.
Sub ContractorSub Contractor
Fuel Supplier/
Fuel Transporter
Water Supplier
GovernmentAuthorities
O&MContractor
EPC Contractors
BOT Law/Concession Agreement/Licences/ Permits/Other Approvals
Equity/Joint Venture Agreement
Financing/Security Documentation/Equity Bridge Loan
EPC Contract(s) O&M Agreement
ProjectCompany
ProjectSponsors
(Consortium Agreement)
ProjectLenders
Offtaker
Power Purchase Agreement (“PPA”)
Land Owner
Land Purchase/
Lease/Land Use Rights
Bank Performance Bond (O+M)
BankPerformance Bond (EPC)
Fuel Supply/Transportation AgreementsNote: There will also be direct agreements between the Project Lenders and various project parties.
Sub ContractorSub Contractor
Fuel Supplier/
Fuel Transporter
Water Supplier
COMMERCIAL ASPECTS (2)
• Development Phase
– CDC is looking for a potential IPP’s from an early stage
– CDC will continue to act as a facilitator until PPA signed
• Construction Phase & Operational Phase
– CDC may look at different forms of compensation in terms of its
landlord and facilitation role
– Capital structure is still to be determined
– Government through its entities may consider participating in the
shareholding of the company
– Further details will be highlighted in the RFP and finalised during
the negotiations
OTHER CONSIDERATIONS
• Regulatory environment
– Recent Government Announcement confirm proposed changes in
Institutional Arrangements and the Role of Eskom
– Detail to be clarified in 2010
– Imminent establishment of Independent Systems Operator
– Buying of Power
– Environmental licensing requirements
– Other licensing requirements
• The role of the CDC in the project
– To continue with the EIA
– To apply for licences
– To facilitate the PPA
– May facilitate for gas sourcing (if necessary)
STAKEHOLDERS ROLES
• Stakeholders and their roles
– Various entities that are stakeholders
– Assist with the Regulatory environment
– Ensure that the necessary support is received
– To continue with the relevant work to bring the project to fruition
BACKGROUND
• COEGA is implementing BB-BEE as per DTI requirements
(RFP Stage)
• Multinational and national Contractors, Service Providers
and Consultants – compliant with BB-BEE (RFP Stage)
• Encourage participation of SMME and Local (EC)
companies
• COEGA Procurement Policy and Procedures (website)
Element Weighting Primary Codes
Reference
Ownership 20 Points Code 100
Management Control 10 Points Code 200
Employment Equity 15 Points Code 300
Skills Development 15 Points Code 400
Preferential Procurement 20 Points Code 500
Enterprise Development 15 Points Code 600
Corporate Social Investment 5 Points Code 700
THE GENERIC SCORECARD
SOCIO-ECONOMIC IMPERATIVES
• TWO IMPORTANT REQUIREMENTS
• SMME Participation
– SMME participation is vital
– SMME Development Programme and Mentorship
• LOCAL (EC) Participation
– Participation of Local companies in each Project
– Source Local Companies
EVALUATION OF EOI
• Bids must be submitted in sealed envelope, 1 original & 2
copies
• To be deposited into CDC Tender Box,
• Bids received by Telegram, fax or email will not be
considered
• Prequalification will be based on Item 6.4 pg 16/22
EVALUATION OF RFP
• This will be done in two stages after further consultations
with the National Government Departments
• STAGE 1 - Request for Proposals
– Pre qualified companies will be issued RFP documents
– RFP documents will be expected to demonstrate Price, Technical
Expertise / Capacity and Empowerment (BB-BEE)
• STAGE 2 - Approval Process
– Preferred Company (ies) will be advised
– Unsuccessful companies will be advised
EOI TIMELINE
ACTION START DATE COMPLETION
DATE
1st Publication &
Advertisement
30 November 2009 01 February 2010
Release of Expression of
Interest Document
30 November 2009 22 January 2010
Non Disclosure Agreement 30 November 2009 22 January 2010
Non Compulsory
Presentation
14 December 2009 14 December 2009
Period for EOI Clarification 07 December 2009 29 January 2010
EOI Closing Date 01 February 2010
@12h00
CONCLUSIONS
• Closing Date &Time – Monday 01 February 2010 @ 12h00
• EOI must be submitted – COEGA Tender Box
• Communication will only be in writing between specified
dates
• All communication - [email protected]
• LATE submissions will not be accepted
• COEGA Web Site www.coega.com