Two Namibian firms qualify for Kudu gas project

Apr 26, 2005 02:00 AM

Two Namibian engineering firms have qualified as part of a consortia to participate in the Engineering, Procurement and Construction (EPC) tender for the Kudu Gas-to-Power Plant.
Once constructed, the Kudu gas-to-power would be the first power plant in Southern Africa that uses the combined cycle gas turbine (CCGT) technology.

Namibia power utility, NamPower invited tenders for the design, supply, manufacture, delivery, erection, test and commissioning of the 800 MW combined cycle gas turbine (CCGT) Kudu power station to be built near Oranjemund.
The announcement by the power utility followed after a competitive pre-qualification bid for the EPC contract, which closed in December 2004. Only 7 of the 12 bids for the pre-qualification tender complied with the qualification criteria to advance to the actual EPC tender.

Siemens Namibia together with Siemens South Africa submitted a pre-qualification bid with parent company Siemens AG. Another Namibian firm, Alstom (Namibia) submitted a bid together with Alstom South Africa with parent company Alstom (Switzerland) that partnered with other Alstom subsidiaries.
BVS Power Alliance, consisting of Black and Veatch and Saipem, submitted a joint tender and several liability tenders with original Gas Turbine Manufacturer. SNC-Lavalin International also submitted a joint several liability tender with General Electric International.

Fluor submitted a tender bid in joint several liability with Original Gas Turbine Manufacturer. Mitsubishi Heavy Industries (MHI) from Japan and General Electric International from the United States of America (USA) submitted individual tenders respectively.
Enquiry documents were issued to the pre-qualification EPC bidders on which the evaluations and qualifications of the companies and consortia were performed.

NamPower noted that the pre-qualification system was based on companies or consortia meeting the necessary financial, legal, technical, management expertise, project references, insurability, compliance, quality assurance and other technical requirements.
Consortia and companies that pre-qualified would be invited to submit tender bids for the Turnkey EPC contract for the completion of the detailed engineering, design, construct and commissioning of the entire plant including civil, electrical and mechanical works. NamPower further noted that it has impressed on the pre-qualified consortia the importance of local and regional subcontracting.

The power utility also urged local and regional companies that wish to participate in this project as suppliers or subcontractors to take advantage of the opportunity.
NamPower further urged the local and regional companies to establish contact with the pre-qualified consortia to ensure that a substantial portion of the investment that would be made in this project is directly pumped into the regional and local economies. The power utility is developing the 800 MW Kudu power station near Oranjemund in southwest Namibia as the majority shareholder inthe power station.

NamPower said that the combined cycle project will use natural gas from the Kudu gas field, located 170 km offshore. The plant would be connected to the Namibian and Southern Africa power grid. Power from the plant would be purchased under long-term power purchase agreements.
NamPower appointed a consortium of Ernst & Young and Saha International as financial advisors in 2004. It further appointed Leboeuf, Lamb, Greene & MacRae from the USA together with a local law firm Lorentz and Bone as legal advisors and ESB International as technical advisor for the project.

Source: Africa News
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