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BD-#35359610-v4
BPC tender No.3969/19
TABLE OF CONTENTS
BD-#35359610-v4
BPC -Tender No 3969/19
PART I
GENERAL INSTRUCTIONS TO BIDDER
1. Introduction
1.1 Introduction
However the country needs to honour its commitment under the United Nations Framework
Convention on Climate Change (UNFCCC) as outlined below. The UNFCCC is an
international environmental treaty adopted in May 1992 and entered into force in March
1994, after a sufficient number of countries had ratified it. The UNFCCC objective is to
"stabilize gas concentrations in the atmosphere at a level that would prevent dangerous
anthropogenic interference with the climate system". Botswana signed the UNFCCC treaty
in June 1992 and ratified it in January 1994.
In pursuance of the UNFCCC climate change goals, many countries have signed the Paris
Agreement which deals with greenhouse gas emissions mitigation, adaptation and finance
starting in the year 2020. In the Paris Agreement, each country determines, plans and
regularly reports its own contribution it should make in order to mitigate global warming.
While there is no mechanism to force a country to set a specific target by a specific date,
each target should go beyond previously set targets.
Botswana issued its percentage of greenhouse gases for ratification as 0.02% which was
signed in April 2016, ratified in November 2016 and came into force in December 2016. In
pursuance of climate change goals, the Government of Botswana (GoB) through the
Botswana Power Corporation (BPC) is driving the development of solar energy projects. In
this regard, BPC floated two expressions of interest (EOIs) in June 2017, one for the
development of a 100MW Solar PV grid connected plant and the other for off grid solar PV
plants both projects being realised using an independent power producer (IPP) structure.
In addition to the above stated projects currently under procurement, GoB and BPC would
like to accelerate the development of renewable energy sources in the country and take
advantage of funding mechanisms such as the Green Climate Fund (GCF) which is
established to support low emission and resilient developments.
In line with the above, BPC has connections listed in Annex 1 to this Part 1 of this RFP for
the development of ten (10) grid connected solar PV plants (Accelerated Green Energy
Initiative - AGEI). The respective capacities of the solar PV plants (AGEI) are indicated in
the said Annex.
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Given the above, BPC is inviting proposals from bidders to tender for the development of
the solar PV power plants under the AGEI.
This initiative is in line with Botswana’s National Energy Policy goal of providing an
affordable, reliable and adequate supply of energy for sustainable development, as well as
improving access to and efficient use of energy resources.
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For the purposes of this Request for Proposal (this “RFP”), the following capitalised terms
shall have the following meanings (whether used in singular or in plural). Capitalised terms
used in this RFP but not specifically defined herein shall have the meanings provided for
such terms in the Power Purchase Agreement or other relevant Core Agreement.
“Applicable Grid Rules” means the current version of South Africa Grid Code for
Renewable Power Plants, as updated from time to time.
“Batswana Company” means (i) a company incorporated under the Laws which is not a
shelf company and (ii) which is majority owned by a company incorporated under the Laws
which is not itself a shelf company.
“BERA” means the Botswana Energy Regulatory Authority as established pursuant to the
Botswana Energy Regulatory Authority Act 2016.
“Bidder’s Model” means the financial model to be prepared and submitted by the Bidder
and described in more detail in Section 5.2.5 (Bidder’s Model) of this Part I of the RFP.
“BPC Tender Regulations” means the tender regulations issued by BPC from time to
time.
“COD” or “Commercial Operation Date” has the meaning as defined in the PPA.
“Company” means the counterparty to the PPA not being BPC as the Offtaker thereunder.
“Core Agreements” means the Power Purchase Agreement, the Connection Agreement
and, if required, the Lease Direct Agreement, copies of which are included in Part III of the
RFP.
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“Day” means the twenty four (24) hour period in Botswana beginning and ending at 00:00
hours.
“Deadline for Submission of Proposals” has the meaning set forth in Section 3.8
(Deadline for Submission of Proposals) of this Part I of the RFP.
“Development Costs” means the relevant element of the Total Project Costs incurred by
the Successful Bidder until Financial Closing.
“Development Security” means the bank guarantee(s) (and any replacement(s) thereof)
in favour of the Offtaker issued by a bank or banks licensed to do business in Botswana
holding a credit rating equal to or higher than the Minimum Credit Rating (as defined in the
PPA), in the form set out in Appendix 5 (Form of Development Security) of the PPA.
“Delivery Point(s)” means the substations identified in Annex 1 of the RFP and described
in more detail in the Network Study Report attached to the RFP.
“Energy Charge” has the meaning given to it in Section 1.1 of Appendix 8 (Calculation of
Payment) of the PPA.
“Energy Payment” means the payment due in respect of Net Electrical Energy to be
calculated and determined in accordance with the PPA.
“EPC Contract” means the lump sum, turnkey contract(s) to be entered into between the
Company and the EPC Contractor(s) for the works and services as provided for therein,
including the development, design, engineering, procurement, construction and
commissioning of the Plant.
“EPC Contractor” means the contractor(s) retained by the Company (as identified in the
Proposal or, in the event of any change(s) thereto, as otherwise approved by the Offtaker
pursuant to the PPA) to perform the obligations of the contractor under the EPC Contract.
“Financial Closing” means the amounts to fund the Total Project Costs in the aggregate
have been provided or committed and are available to be drawn by the Company, and
evidence thereof satisfactory to BPC has been provided by the Bidder to BPC.
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“Independent Solar Resource Assessment” means the solar resource assessment report
to be provided by the Bidder with its Proposal in accordance with Formsheet F (Technical
Approach & Methodology).
“IPP Licence” means the independent power producer licence to be obtained by the Bidder
in Botswana in accordance with the Law.
“kWp” means kilowatt peak and is the nominal peak power (in kW) under standard test
conditions.
“Late Proposal” has the meaning set forth in Section 3.9 (Late Proposal) of this Part I of
the RFP.
“Lease” means the agreement(s) to be entered into by the Company and the Lessor, the
form of which is subject to review and approval by BPC.
“Lessor” means the party (or parties) leasing the Site to the Company under the Lease.
“Letter of Commitment” means the letter referred to in Section 4.2 (Letter of Commitment)
of this Part I of the RFP.
“MWp” means megawatt peak and is the nominal peak power (in MW) under standard test
conditions.
“Notification” means the notification to each of the Bidders which have been shortlisted
as issued by BPC under Section 3.17.1 (Notification of Shortlisted Bidders) of this Part I of
the RFP.
“O&M Contract” means the contract(s) between the Company and the O&M Contractor(s)
for the works and services provided for therein including the management, operation,
maintenance and repair of the Plant.
“O&M Contractor” means the contractor(s) engaged by the Company (as set out in the
Proposal or, in the event of any change thereto, as otherwise approved by the Offtaker
pursuant to the PPA) under the O&M Contract.
“Opening of Proposals” means the date and time specified in Section 3.11 (Opening of
Proposals) of this Part I of the RFP.
“Operating Period” means the period from the Commercial Operation Date of a Plant until
the last Day of the Term of the PPA relating to such Plant.
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“Period of Validity” means the period as described in Section 3.10 (Period of Validity of
Proposal) of this Part I of the RFP.
“Plant” means the electricity generating facility using photovoltaic technology and
associated facilities and infrastructure, to be connected to the Grid at a Substation
Connection and to be built, owned and operated on a Site, and any part thereof, as context
may require.
“Power Purchase Agreement” or “PPA” means the power purchase agreement between
the Offtaker and the Company in respect of a Plant, the form of which is included in Part III
of the RFP.
“Project Agreements” means in relation to a Plant, the PPA, the Lease, the Lease Direct
Agreement, the EPC Contract(s), the O&M Contract(s) and the Connection Agreement
together with the agreements related thereto (such as guarantees, direct agreements,
collateral warranties and/or bonds).
“Proposal” means the proposal delivered by a Bidder in respect of a Project (and any
agreed amendments, variations or supplements thereto) all in response and in accordance
with this RFP.
“RFP” means this Request for Proposal and any additions or amendments thereto made
in accordance with this RFP.
“SAPP Rules” means those rules of the Southern Africa Power Pool related to system
security and emergencies in force from time to time.
“Scheduled Commercial Operation Date” means the date for the achievement of the
Commercial Operation Date in respect of a Plant as specified in Formsheet H(Project
Execution Plan) and in turn in Appendix 1 (Implementation Schedule) of the PPA (as may
from time to time be amended in accordance with the PPA).
“Shortlisted Bidders” means the Bidder(s) to whom BPC has issued a Notification
pursuant to Section 3.17.1 (Notification of Shortlisted Bidders) of this Part I of the RFP.
“Signature Date” means the date of signature of the relevant Power Purchase Agreement
by all parties thereto.
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“Specific Yield” means the total annual energy generated at the Delivery Point per kWp
installed, given in kWh/kWp, in respect of a Plant.
“Substation” has the meaning set out in the relevant Connection Agreement.
“Successful Bidder” has the meaning specified in Section 3.19 (Execution of Project
Agreements) of this Part I of the RFP.
“Total Project Costs” means all costs of a Project, as set out in Formsheet J (Total Project
Costs).
1.4 Confidentiality
The RFP and the information contained herein are confidential and the property of BPC.
The Bidder must not disclose the information contained herein to any third party without the
prior written consent of BPC other than to (i) its direct shareholders, directors, officers or
employees, or (ii) its legal, financial and/or technical advisers, in each case to the extent
necessary to prepare its Proposal in response to the RFP. In each case, prior to making
such disclosure, the Bidder shall obtain confidentiality undertakings from these third parties
on the same terms as the confidentiality obligations which the Bidder owes to BPC in
relation to the RFP.
1.5 Disclaimer
The information presented in the RFP is furnished solely for the purpose of assisting each
prospective Bidder in making its own evaluation of the Project and does not purport to be
all inclusive or to contain all the information that the Bidder may require. The Bidder shall
make its own investigations, projections and conclusions and consult their own advisers to
verify independently the information contained in the RFP and the Network Study Report,
and to obtain any additional information that they may require, prior to submitting a
Proposal. Neither BPC (nor the GoB) in or any of their respective advisers makes any
representation or warranty as to the completeness of the RFP or the Network Study Report
nor have they any liability for any representations (express or implied) contained in, or
omissions from, the RFP.
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The Bidder is free to propose the technology and design for a Plant considering and in any
event complying with international best practices, design and environmental conditions and
the provisions of the RFP.
Each Plant at a Site shall use ground mounted PV technology connected to central
inverter/transformer stations and shall be designed in such a way that the maximum power
output (active power) measured at the Delivery Point shall not exceed the relevant limit
thereon at any time.
Each Plant shall be designed, manufactured and configured in such a way that it will exhibit
high efficiency, availability and reliability with minimum energy generation costs, so that
such Plant shall be suitable in every respect for continuous operation at maximum power
output under the climatic conditions particular to its Site. The Bidder is free to propose the
technology and design for a Plant considering and in any event complying with international
best practices, design and environmental conditions and the provisions of the RFP.
Each Plant shall be optimized to offer electricity generation at least cost taking into
consideration the design, operational and all other requirements specified in the RFP, as
well as the Site conditions and Scheduled Commercial Operation Date for that Plant.
The Company will be required to transfer the Plant to the Offtaker at no cost at the end of
Term as provided for and in accordance with the requirements set out in the PPA.
Network Study
The network study report attached in Part III of this RFP (“Network Study Report”) is to be
reviewed by the Bidder. The report indicates the results of the grid integration studies in
respect of the Substation Connections.
The Bidder should consider and take account of the results of the Network Study Report in
preparation of its Proposal, in particular the impact(s) on the Grid resulting from the
connection of the Plant(s). Each Successful Bidder will be expected to perform full detailed
grid impact and grid code compliance studies in respect of the Plant(s) they are awarded,
for review by and approval of BPC.
The Bidder shall provide a proposal for connection of the Plant into existing substation(s).
Site conditions and all associated risks relating to the Sites will be the responsibility of the
Bidder. BPC neither gives nor shall give any warranty or undertaking in respect of the
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conditions of, at or otherwise affecting any Site. Bidders are advised to thoroughly review
their selected Site(s) and ensure that the Construction Contractor has taken into
consideration the prevailing Site conditions.
The central components of the regulatory framework in Botswana relevant to the Project
are:
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The Bidders shall at all times comply with the laws of Botswana, including (without
limitation) the Income Tax Act, the Value Added Tax Act and the Customs and Excise Duty
Act.
A Successful Bidder shall obtain all Permits and Licences applicable to the relevant Project
and Project Agreements under the Laws, including the IPP Licence.
The PPA, the form of which is set out in Part III of this RFP, will provide for the supply by
the Generator and the purchase by the Offtaker of electricity in accordance with the terms
thereof. The Bidder shall note that the Project structure is build-own-operate-transfer, and
as such the Generator is required to transfer the Plant (and all related rights, title, benefits
and interests) to the Offtaker on expiry of the term of the PPA, and no further cost.
The Term of the PPA shall commence on the date of execution thereof and shall expire on
that date being twenty five (25) years from the Commercial Operation Date for the relevant
Plant.
The Connection Agreement(s) will be between the Generator and BPC as the operator of
the Grid and will be entered into on or before the Closing Date.
The Bidder will be required to select and secure the Site(s) and provide evidence of having
secured the Site(s) as part of its Proposal. The Bidder shall demonstrate evidence of having
secured the Site(s) by having entered into duly executed and enforceable option
agreements, lease agreements and/or conditional lease agreements with the relevant
landowner(s)/lessor(s) and shall include details thereof in Formsheet E (Bidder’s Site
Selection).
If the Bidder is to secure the land for the Site(s) by entering into a lease agreement with the
relevant landowner/lessor, the Bidder shall procure that the landowner/lessor enters into a
Lease Direct Agreement with BPC in the form set out in Part III of this RFP.
The RFP establishes a single format to be followed by all Bidders submitting Proposals to
facilitate and ensure a uniform and impartial evaluation and ranking of each Proposal. The
Bidder shall submit its Proposal in accordance with the requirements of the RFP and shall
complete all data and formsheets and provide all information required in the order and
format as specified in the RFP (including as set out in section 3.4 below). Without limiting
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any of its other rights, BPC expressly reserves the right to reject any Proposal which does
not meet such requirements.
Any proposed deviation(s) from the requirements of the RFP or proposed modification(s) to
the Core Agreements shall be clearly indicated and explained by the Bidder. Deviations
and modifications are discouraged and BPC reserves the right to reject any Proposal which
is not substantially responsive in its sole discretion.
The Bidder may submit a Proposal for a Plant at any and all of the ten (10) Substation
Connections which are the subject of this RFP. If a Bidder wishes to submit a Proposal for
more than one Plant, it must submit a separate Proposal for each Plant. A Successful
Bidder may be awarded no more than three (3) Plants.
Subject to the above, BPC otherwise reserves the right to notify Shortlisted Bidders, select
Successful Bidders and enter into the contracts in respect of the Plant(s) which are the
subject of this RFP in full or in part at its sole discretion.
3.2 Language
The Proposal prepared by the Bidder and all correspondence and documents relating
thereto shall be in the English language.
Original – one (1) set of hard copy and soft copy in one (1) USB Drive; and
Copies – two (2) sets of hard copies and three (3) sets of soft copies in individual USB
Drives.
These shall be additional to and submitted, in the form described in this Section 3 (Bidding
Process & Form of Bids) of this Part I of the RFP at the following address:
BPC Tender3969/19
Botswana Power Corporation
Supply Chain Procurement Office
Plot 1222
Nkrumah Road
Gaborone
Botswana
Only the submission of printed Proposals (together with the above mentioned soft copies)
shall be acceptable. Neither telefax nor telex submittal will be accepted.
In case of any discrepancy between a soft copy and a hard copy of the Proposal submitted
by the Bidder, the hard copy of the Proposal shall prevail.
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The original Proposal submitted by the Bidder shall include the original of the Letter of
Commitment (the form of which is included in Formsheet C (Letter of Commitment), signed
by a person or persons duly authorised to bind the Bidder to the Proposal and any resulting
agreement(s). If the Proposal is submitted by two (2) or more entities as members of a
Bidder Consortium, a duly authorised person or persons of each such member shall sign
the Letter of Commitment. In each case, a power of attorney or if applicable other evidence
authorizing such persons to sign the Letter of Commitment shall be provided.
The Bidder shall seal the original Proposal and each copy thereof in boxes or containers,
clearly labelled indicating the name of the Bidder, the name of the Project, the name of the
selected Substation and the name of the Site.
The original of the Letter of Commitment shall be sealed in a separate envelope marked in
a similar manner as the boxes or containers above and shall be attached to the outside of
the box or container (described above) containing the Bidder’s original Proposal.
All Proposal documents shall be securely bound and shall become the property of BPC
upon submission. BPC shall not return the original or copies of the Proposal submitted by
the Bidder.
– Provision of audited financial statements for the financial year ended not more than
12 months before the date of submission of the Proposal
Project data in accordance with the Formsheets in Part II of the RFP in hard copy and soft
copy in MS Word format ,Excel or other format, as stated below:
– detailed technical information and description of the Project and the Plant including
scope and limits of the Project and all information as required by Formsheet F
(Technical Approach & Methodology) of Part II of the RFP (Formsheet F);
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– Independent Energy Yield Assessment report and original files (PV system, OND,
PAN, etc.).
Copy of the form of each of the PPA, Connection Agreement and/or Lease Direct
Agreement, if applicable, marked up to show proposed modifications (if any) in accordance
with Section 5.2.7 (Core Agreements) of this Part I of the RFP (Formsheet I).
Project cost estimates for the Plant (Formsheet J (Total Project Costs) of Part II of the RFP);
Financial data for the Project (Formsheet K (Financial Data) of Part II of the RFP);
Plan for the financing of the Project, consistent with the above (Formsheet N (Financing
Plan) of Part II of the RFP); and
Bidder’s Financial Model, consistent with the requirements of Section 5.2.5 (Financial
Model) of Part I of this RFP.
(6) Insurance
The details of the insurances to be put in place for the Project in accordance with Formsheet
L (Insurance Programme) of Part II of the RFP.
In line with the Citizen Economic Empowerment Policy and Economic Diversification Drive,
the Bidder is required to demonstrate compliance with the following local content
requirements (the “Local Content Requirements”) in its Proposal:
A. Local participation in the Company (pass/fail criteria) – the Bidder is required to offer
forty percent forty percent (40%) of the shares in the Company for sale to one or more
Batswana Entities by the fifth anniversary of the Commercial Operation Date (the “Local
Offer”). The terms of the Local Offer shall be set out by the Bidder in Formsheet M (Local
Content Proposal) of Part II (Proposal Formsheets), but shall include as a minimum:
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• an outline of the method proposed to determine the offer price, whether this is by
reference to a calculation of fair market value, or taking into account a required
equity return consistent with the Bidder’s Financial Model;
• an option for BPC to purchase the 40% at the offer price, if the Local Offer is
unsuccessful; and
• an undertaking that all issued share capital of the Company will comprise a single
class of shares
The PPA shall be updated following selection of the Successful Bidder, to include the Local
Offer. A failure to comply with Local Offer by the Company will then be a material breach of
the PPA.
The Company will be required to provide the Offtaker with regular updates regarding the
implementation of the Local Offer, including copies of marketing materials and other
information provided to prospective purchasers of the shares. Depending on the final
provisions of the Local Offer, the Successful Bidder may be required to enter into a separate
agreement with BPC, setting out the terms of the Local Offer.
B. Allocation of Project Costs to Batswana Entities (pass/fail criteria) – the Bidder is required
to ensure 40% of the cost of engineering, procurement and construction of the Plant are
awarded to Batswana Entities. This can be achieved through:
The Bidder shall provide a list of components and services that it considers can be sourced
locally, together with the associated local firms/suppliers and an allocation of the
percentage of the costs of construction of the Plant to each such component or service, as
set out in Formsheet M (Local Content) of Part II (Proposal Formsheets).
D Training and transfer of skills to Batswana Entities (scored criteria) – the Bidder is
required to propose a comprehensive training and skills transfer programme, that will
ensure Batswana Citizens employed by the Company or by contractors of the Company
(including the EPC Contractor and the O&M Contractor) benefit from such programme.
E Social responsibility investment (scored criteria) – the Bidder shall provide a plan for
investment on social responsibility projects with high social impact on local communities
such as sports centres, cultural centres, youth centres and learning and health facilities.
The Bidder shall set out its Local Content proposal in accordance with Formsheet M (Local
Content Proposal) of Part II (Proposal Formsheets) of the RFP, to address as a minimum
the Local Content Requirements, and shall provide sufficient detail in order to demonstrate
to BPC that the Bidder’s Local Content proposal is achievable within the time frames
required by this RFP and in accordance with its Proposal.
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Shelf companies or ad-hoc companies incorporated for the purpose of the EPC and/or O&M
of the Plant but not adequately staffed by Batswana Citizens to perform the relevant
activities locally in Botswana cannot be taken into consideration in respect of the Local
Content Requirements. No double counting shall be allowed.
The PPA shall be updated following selection of the Successful Bidder to include the Local
Content Requirements of the Successful Bidder.
The proposed Energy Charge and supporting values for payment calculations, including:
– the Bidder’s Model and supporting explanations and assumptions (as defined in
Section 5.2.5 (Bidder’s Model) of this Part I of the RFP);
If a Bidder has any doubt as to the meaning or intent of any sections of or requires additional
information in relation to this RFP, such Bidder may in writing request such clarification(s)
and/or information from BPC. BPC will not be held liable for the incorrect or inaccurate
interpretations of this RFP. All assumptions and exclusions must be clearly stated in the
Bidder’s Proposal.
Such written requests for clarification(s) and/or information shall be submitted by e-mail to
syanjibuk@bpc.bw no later than the relevant deadline for the submission of any such
request(s) as identified below.
BPC will endeavour to respond to each request for clarification or information within two (2)
weeks from the receipt of such a request.
In the interest of fairness, BPC will make all clarification(s) and information available to all
Bidders without identifying the Bidder requesting the clarification(s) and/or information.
At any time, but no later than ten (10) Days prior to the Deadline for Submission of
Proposals, BPC may amend or modify the RFP in any respect through the issuance of one
or more addenda (each an “Addendum”). All Addenda issued by BPC shall constitute part
of the RFP and shall not give rise to any right for a Bidder to claim any costs as result of or
in connection with such change.
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3.7 Timeline
Milestone Indicative Date
All Proposals must be received by BPC at the address specified in Section 3.3 (Form of
Submission) of this Part I of the RFP, by no later than 10:00hrs Botswana time on 27
March 2020 (the “Deadline for Submission of Proposals”). BPC may in its sole discretion
extend the Deadline for Submission of Proposals by issuing an Addendum to the RFP at
any time.
Any Proposal received after the Deadline for Submission of Proposals (a “Late Proposal”)
shall be returned unopened to the Bidder. A Late Proposal shall not be considered under
any circumstances, including circumstances beyond the Bidder’s control.
Each Proposal shall remain valid for a period of at least one hundred and eighty (180) Days,
commencing on the Deadline for Submission of Proposals, which period shall be specified
in the Letter of Commitment (the “Period of Validity”). A Proposal stated to be valid for a
shorter period than the Period of Validity shall be considered by BPC as substantially
nonresponsive. A Proposal may not be withdrawn during the Period of Validity.
BPC may request a Bidder to consent to an extension of the relevant Period of Validity.
Both the request for an extension and the response shall be in writing.
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All Proposals received by BPC shall remain sealed in BPC’s possession until after the
Deadline for Submission of Proposals.
BPC will open Envelope 1 of the Proposals submitted in accordance with Section 3.4.1 of
the RFP on 27 March 2020 at Supply Chain Procurement Office Plot 1222, Nkrumah Road,
Gaborone at approximately 10:00hrs Botswana time (“the Opening”). BPC will then open
Envelope 2 of those Proposals which have passed the evaluation stages 1 and 2, and
reached stage 3 of the evaluation procedure as provided for in Section 3.16 of the RFP.
Any attempt by a Bidder (or any agent or representative acting on its behalf) to influence
BPC and/or any of its advisers during clarification, determination of responsiveness,
evaluation and comparison of Proposals and/or in any decisions concerning the award of
the Project, may result in the rejection of such Bidder’s Proposal.
For the purpose of this section and the RFP, a ‘substantially responsive’ Proposal shall be
a Proposal that conforms to the terms, conditions and requirements of the RFP without
material deviation. A deviation to or reservation from the terms, conditions and/or
requirements of the RFP constitutes a material deviation if it affects the scope, quality,
and/or performance of the Project or any part thereof in any substantial way or limits in any
substantial way BPC’s or any other party’s rights or the Bidder’s obligations under any of
the Core Agreements..
Each Bidder shall bear all costs and expenses in relation to or otherwise associated with
the preparation and/ submission of its Proposal and agrees that BPC shall, under no
circumstances, be responsible or liable for any such costs, regardless of the conduct,
outcome or cancellation of the bidding, evaluation and/or selection process.
The Bidder shall be responsible for all costs associated with the provision of responses to
requests from BPC for information and/or preparation for and attendance at any Bidders’
conference, any site visit and/or meeting(s) requested by BPC.
BPC reserves the absolute right to accept or reject any Proposal or to annul or cancel the
bidding process and reject any and/or all Proposals at any time without any liability of BPC
to the Bidder or any other party and without any obligation to inform the Bidder of the
grounds for any such action. Each Bidder hereby waives all and any rights to claim any
such costs and/or losses arising as a result.
BPC shall not return the original or copies of any Proposal submitted by a Bidder.
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BPC may request additional information, clarification(s) and verification(s) with respect to
any of the content of or referred to in the Proposal. The Bidder is required to respond, in
writing, to any such request within five (5) Days of receipt of the request or such shorter or
longer period as may be specified in the request.
To assist in the evaluation and/or comparison of Proposals, BPC may also require the
Bidder to make a presentation in relation to its Proposal and attend meetings at the cost of
the Bidder to be held at BPC’s offices in Botswana.
During the evaluation process, no change with respect to a Proposal shall be offered or
permitted.
The Bidder shall submit a Proposal in two envelopes. Envelope 1 shall include the
information listed under Section 3.4.1 of the RFP and Envelope 2 shall include the
information listed under Section 3.4.2 of the RFP.
In order for BPC to evaluate the Bidder’s Proposal, the Bidder will have to demonstrate that
it meets the Compliance Requirements and Technical and Financial Qualification
Requirements below and provide such information in accordance with Formsheets B (Legal
Form and Organisation of the Bidder), C (Statement of Technical Qualifications) and D
(Statement of Financial Qualifications).
Only the Bidders that comply with the requirements set out in Stage 1A and Stage 1B below
shall proceed to the Stage 2 of evaluation and receive a score in accordance with their
technical proposal:
Additionally, if the Bidder (or in case of the consortium each entity within the consortium) intends to
rely on commitments from other affiliates to meet its financial obligations, such entities will be
required to submit audited financial statements for the financial years 2017, 2018, and 2019 (if
full year report for 2019 is not available, an interim financial statement for the first half of 2019
is required). The financial statements should include a balance sheet, consolidated income
statement and consolidated cash flow statements.
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(iii) Site Selection evidence documentation in accordance with the RFP - Formsheet E: Bidder’s
Site Selection
Only Bidders that satisfy the compliance stage will proceed to the next evaluation stage.
(i) Bidder’s track record - Bidder’s Development and Project Financing Experience
The Bidder or in case the Bidder is a Consortium, at least one (1) member within the consortium, is
required to demonstrate its development and project financing experience (including management
of design, procurement and construction, and arranging financing) as per the following:
The Bidder or in case the Bidder is a Consortium, at least one (1) member within the consortium is
required to provide evidence of having successfully developed (until financial close and operation)
an independent power project or similar with a capacity of 1MWac or more within the last three (3)
years connected to the national power grid in the country in which such project is located.
The evidence provided by the Bidder shall include information in relation to its role in the development
process (including financing) for each plant and the exact GPS location and capacity (size).
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(i) The Bidder or in case the Bidder is a Consortium, at least one (1) member within the consortium,
is required to demonstrate financial capability, by showing past experience in raising the funding
for the project or show capability to raise finance for the project, by confirming compliance with
the qualifications below:
• one or more private power generation projects in respect of which it has successfully raised
equity financing of at least US$0.375 million in the past five (5) years; and
• one or more private power generation project in respect of which it has successfully raised
debt financing of at least US$ 1.125 million in the past five (5) years.
OR
⮚ In showing proof of financial capability through internal sources, the Bidder must demonstrate
capability by showing financing via internal funds, money market funding, fixed deposits, etc. The
Bidder is required to show by:
o Submitting one (1) or more power generation plants for which it has successfully financed via
alternative funding routes (internal funds, money market funding etc.) of at least US$1.5 million in
the past five (5) years; or
o Financial documents to verify the funds the Bidder currently holds in cash balances and/or short-
term investments, and verification that the funds are sufficient to support the development of a
potential solar project with a total value of not less than US$1.5 million.
Score
Stage 2: Technical and Financial Evaluation Criteria Relevant Formsheets 100
points
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Formsheet I
Absence of deviations from Core Agreements
The Bidder to indicate, if applicable, any proposed Form of Proposed Deviations
deviations to the following Core Agreements:
10
• Power Purchase Agreement
• Connection Agreement
• Lease Direct Agreement (if applicable)
Score
Stage 2: Technical and Financial Evaluation Criteria Relevant Formsheets 100
points
Bidder Ranking
Proposals will be ranked based on tariff offered
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The Bidders that have proceeded to the final evaluation stage shall be ranked in accordance
to the price of the tariffs proposed (lowest tariff receiving the highest rank). BPC may notify
and invite for negotiations any Bidder whose proposal passes stages 1 and 2 and reaches
this stage 3 of the evaluation procedure.
BPC will issue a notification (the “Notification”) to one or more Bidders (each, a “Shortlisted
Bidder”) informing the relevant Bidder that it has been shortlisted. It is the intention of BPC
to keep the Proposals of each of the Shortlisted Bidders open for detailed discussions and
negotiations for each Plant until such time as BPC has executed the PPA for that Plant with
one of the Shortlisted Bidders and the Closing Date and Financial Closing have occurred.
Each Shortlisted Bidder shall acknowledge receipt of the Notification, in writing, within five
(5) Days from the date of the issuance thereof.
Following Notification to each Shortlisted Bidder, responsibility for negotiating the financing
terms, conditions and documentation remains with the Bidder.
Upon selection of and notification to the Shortlisted Bidder(s) in respect of each Plant, BPC
will promptly notify each Bidder which is not a Shortlisted Bidder for that Plant.
3.18 Negotiations
BPC will negotiate with a Shortlisted Bidder and may at the same time and/or subsequently
also choose to negotiate with all or any of the other Shortlisted Bidders.
BPC will issue a notification to the Shortlisted Bidder selected as a Successful Bidder for a
Project, informing the relevant Bidder that it has been selected as Successful Bidder and
for which Plants.
The Company shall execute the PPA and the other Project Agreements within four (4)
weeks of the date of notification of the Successful Bidder and representatives of the
Company or the Successful Bidder with valid powers of attorney shall attend BPC’s offices
for the purpose of executing such agreements.
The Successful Bidder (and the Company) shall be responsible for the preparation of a
complete set of the executed Project Agreements and related documents and their
submission to the Offtaker and any government authorities in the number agreed and/or
required by the Laws of Botswana.
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The Successful Bidder (and the Company) shall be responsible for any costs or expenses
incurred by it in or relating to negotiating, executing, translating and registering (to the
extent applicable) the Project Agreements and related documents, and in the preparation
of originals and copies thereof and for achieving the Closing Date. The Successful Bidder
agrees that BPC shall be under no obligation in any circumstances to reimburse the
Successful Bidder for any such costs or expenses.
Concurrently with the execution of the PPA, the Successful Bidder in respect of a Project
shall submit to BPC the Development Security in an amount of not less than ten per cent
(10%) of the engineering, procurement and construction costs of the relevant Project.
The Successful Bidder shall ensure that the Development Security shall be without recourse
to the Company or BPC at any time.
The Development Security shall remain valid for the period from the Signature Date of the
PPA until the earlier of (i) the date falling thirty (30) days after the Commercial Operation
Date, and (ii) ninety (90) days after the Long-Stop Closing Date.
The costs for issuing and maintaining the Development Security shall be borne by the
Successful Bidder and/or the Company.
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The Bidder is required to submit a Letter of Commitment in the form set out in Formsheet
A (Form of Letter of Commitment) of Part II of the RFP, with the information regarding the
Bidder’s organisation and (if applicable) all Bidder Consortium members in accordance with
Section 4.2 (Bidder and Company Requirements) of Part I of this RFP, including:
– powers of attorney authorising the persons who executed the Letter of Commitment
to bind the Bidder to the Proposal, which powers of attorney shall be notarised and
authenticated by the consular authorities of Botswana in accordance with the laws of
Botswana;
– completed Formsheet B (Legal Form and Organisation of the Bidder) of Part II of the
RFP.
Formsheet B (Legal Form and Organisation of the Bidder) of Part II of the RFP is to be
completed by the Bidder and submitted as a part of its Proposal.
The Bidder, and if applicable each member of the Bidder Consortium, shall be an entity duly
organised, existing and registered and in good standing under the laws of its country of
domicile.
As part of its Proposal, the Bidder must furnish evidence of its legal structure as a single
company or a consortium, joint venture or partnership (as the case may be) including
information with respect to (i) the legal relationship among the members and (ii) the role
and responsibility of each member, together with a certified copy of the complete
consortium, joint venture or partnership agreement, signed by all parties and with powers
of attorney authorising the execution of such agreement (which shall be authenticated in
accordance with the laws of Botswana).
Each Bidder Consortium must identify one member of that Bidder Consortium as the contact
member of the Bidder Consortium (“Contact Member”) to act as the main point of contact
and manager of the Bidder Consortium, which member shall have the authority to act on
behalf of Bidder Consortium in relation to this RFP and the Project and to act and receive
instructions on behalf of all Bidder Consortium members.
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Bidder’s track record The Bidder or in case the Bidder is a Consortium, at least one (1) member
within the consortium is required to demonstrate its development and
project financing experience (including management of design,
procurement and construction, and arranging financing must have
successfully developed until financial close and operation an
independent power project or similar with a capacity of 1MWac or more
within the last three (3) years connected to the national power grid in the
country in which such project is located.
EPC Contractor track The EPC Contractor must have constructed at least one solar PV plant
record with a capacity of 1MWac or more developed and commissioned within
the last three (3) years and connected to the national power grid in the
country in which such project is located.
O&M Contractor track The O&M Contractor must have operated and maintained at least one
record solar PV power plant with a capacity of 1MWac or more within the last
three (3) years connected to the national power grid in the country in
which such project is located.
The financial qualification The Bidder (or, in the case of a Bidder Consortium, one of the members
requirements to be met by of the consortium) shall include the following information in its Financial
the Bidder Qualification Statement:
• one or more private power generation projects in respect of
which it has successfully raised equity financing of at least US$
0.375 million in the past five (5) years which has reached COD;
and
• one or more private power generation project in respect of which
it has successfully raised debt financing of at least US$ 1.125
million in the past five (5) years which has reached COD.
OR
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The Bidder shall provide in its Proposal all technical information and data in accordance
with Formsheet F (Technical Approach & Methodology) of Part II of the RFP.
The Bidder shall guarantee, as part of its Proposal, the performance guarantee data
specified in Formsheet G (Performance Guarantee Data) of Part II of the RFP.
Each Plant shall be designed, installed, commissioned, tested and operated in accordance
with in the PPA, relevant national regulations and Laws and relevant international
standards, including those listed in the PPA.
The Project shall in addition comply with the following technical requirements:
● all equipment shall be new and unused and manufactured by reputable manufacturers
with experience in at least two projects of similar size, subject to any stricter
requirements set out in this RFP.
− with a design life of not less than twenty five (25) years;
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● all procedures and protocols shall be in compliance with ISO9001 and ISO14001 and
OHSAS 18001 as a minimum
In order to achieve its Commercial Operation Date, each Plant is required to be successfully
tested and put into commercial operation in accordance with the procedures set forth in
Appendix 6 of the PPA.
Each Plant is required to achieve the Commercial Operation Date by the relevant
Scheduled Commercial Operation Date.
If a Plant fails to achieve the Commercial Operation Date by the Scheduled Commercial
Operation Date therefor, liquidated damages for delay will be payable to the Offtaker in
respect of the period running from Scheduled Commercial Operation Date until the earlier
of (i) the Commercial Operation Date and (ii) the Long Stop Date in relation to such Plant,
all as provided for in and subject to the terms of the PPA.
It is the responsibility of the Successful Bidder and the Company to obtain all consents,
permits and licences necessary to construct, commission, test, operate and maintain the
Plant and to ensure that the relevant time(s) required for obtaining or the costs of such
consents, permits and/or licences are provided and/or allowed for in its Proposal. It is
emphasised that the responsibility for identifying and obtaining such necessary consents,
permits and licences rests solely with the Successful Bidder and the Company.
The Company shall comply with and satisfy the requirements of:
The Bidder shall comply with all good engineering practices in preparing for and carrying
out the design, procurement construction, commissioning and testing of each of the Plants
and other works required.
In the Proposal, the Bidder shall describe the organisation of the engineering works, site
works (including site component(s)) and inspection and testing programme and its
designated contractors and subcontractors.
BPC shall have access to each of the manufacturing and construction works on
prearranged visits to satisfy itself regarding the quality and anticipated performance of each
of the Plants.
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The EPC Contract shall be entered into between the Company and the EPC Contractor on
or before the Closing Date in a form approved by BPC.
Formsheet F (Technical Approach & Methodology) of Part II of the RFP lists the
documentation that, as a minimum, the EPC Contractor is required to submit to the
Company and to BPC for information and review during the engineering, design,
construction and testing phases.
The O&M Contract to be entered into between the Company and the O&M Contractor on
or before the Closing Date shall be in a form approved by BPC.
If the Company will be providing O&M services through in-house resources (‘In-house
O&M’), the Company is required to provide a comprehensive term sheet and O&M plan,
including details regarding maintenance, overhaul, specialist repair services, equipment
procurement and resourcing plan to be approved by BPC on or before the Closing Date.
The Company is required to comply with and procure that all its contractors, suppliers and
agents comply with the Laws relating to employment in force in Botswana and, for any
personnel who are not nationals from Botswana, the immigration Laws in force from time
to time in Botswana.
Without prejudice to the requirement to comply with the Laws of Botswana, the Company,
the EPC Contractor(s) and the O&M Contractor(s) are each required to use their respective
best efforts to employ Botswana nationals during the construction and/or operation of the
Plant.
The dispatch of each Plant shall be controlled by the Offtaker and governed by the PPA,
the Applicable Grid Rules and the SAPP Rules and the Bidder shall ensure that the Plant
is fully dispatchable within the technical limits for that Plant.
Maintenance and repair schedules shall be developed and agreed in advance by the
Company and the Offtaker and in any event to accord with the requirements of the PPA.
The Bidder must take into consideration that the Applicable Grid Rules must be adhered to
in carrying out the Project and in particular the general design, technical and operational
requirements that allow connection to the Grid.
In addition, the interconnection conditions as set out in the relevant Connection Agreement
set out specific requirements for the connection of a Plant to the Grid at the relevant Delivery
Point(s) located at the relevant Substation(s).
The Bidder must describe in its Proposal the detailed timeline for achieving the Closing
Date, as required in Formsheet H (Project Execution Plan).
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5.2.1 Insurance
The provision of insurance coverage during the construction and operation of the Plant shall
be the responsibility of the Successful Bidder and the Company and shall comply with the
following:
In Formsheet J (Total Project Costs) of Part II of the RFP, the Bidder is required to provide
a detailed breakdown of the Total Project Costs for the Project identifying the following
costs.
The construction costs detailed for the Plant shall include all costs relating to construction
and all costs of engineering, construction, testing and commissioning. The Bidder’s
Proposal shall ensure that the EPC Contract price is fixed and firm and is not subject to
provisions that allow for any adjustment after submission of the Proposal.
The Development Costs shall include all costs of internal and external advisory services,
independent due diligence costs, all costs associated with financing, title deeds, travel,
accommodation and other out of pocket expenses and any development fee incurred.
A breakdown of operating and maintenance costs for the Plant for the Operating Period for
both the services carried out by the O&M Contractor and by the Company itself or by other
third parties retained by the Company.
The Total Project Costs set out in Formsheet J (Total Project Costs) of Part II of the RFP
may be funded through a combination of equity, senior debt and/or any other commercial
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means, with evidence thereof to be provided as part of the Proposal, to the satisfaction of
BPC.
The Bidder shall ensure that the Energy Charge forming part of the Bidder’s Proposal is
firm and that the Bidder is fully responsible for delivering the requisite funding.
The Proposal shall include a statement, in the form of Formsheet N (Financing Plan)
detailing the Bidder’s and in due course the Company’s financial ability to complete the
Project.
The Bidder shall clearly demonstrate in its Proposal how the funding requirements of the
Project will be met, including:
● an overview of the funding structure and the rationale for the selection of the preferred
funding structure identifying and describing each applicable funding source;
● the legal identity of any parties proposed to provide funding, their roles, responsibility
and relationship with the Bidder;
● evidence of commitments from each of the funding source(s) to provide funding as and
when required, a description of the terms of the funding and the timing for drawdown
from each funding source.
The financing proposal submitted by the Bidder should be based on terms and conditions
which deliver best value for money and are at the same time deliverable without exposing
BPC to any financing risks during the term of the Project.
The Bidder’s financing assumptions shall be credible, market acceptable and deliverable.
BPC reserves the right as part of its evaluation to amend any assumption that BPC
considers to be not credible and/or not deliverable.
The Bidder is expected to accept full movement of interest rates and there will be no
adjustment to the Energy Payments or otherwise for changes in interest rates at or after
Financial Close.
The quantum, timing and sources of debt financing must be set out by the Bidder in the
relevant sections of Formsheet K (Financial Data) of Part II of the RFP.
5.2.4 Financiers
Following Notification to each Shortlisted Bidder as set forth in section 3.17.1 (Notification
of Shortlisted Bidders), responsibility for negotiating the financing terms, conditions and
documentation with the financiers (if any), remains with the Bidder.
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The Bidder shall include as part of its Proposal a fully functional copy of the financial model
(the “Bidder’s Model”) in a single Excel file format on a USB Drive. The Bidder’s Model must
be capable of re-performing all calculations required by the RFP and shall be:
● consistent with all technical information, and cost estimates stated in Formsheets
G (Performance Guarantee Data), J (Total Project Costs), K (Financial Data ), H(Project
Execution Plan) and N (Financing Plan) of Part II of the RFP;
● consistent with the terms, conditions and assumptions of the PPA; and
● consistent with the terms and conditions set out in the terms of funding provided to
comply with Section 5.2.3.2 above.
The Specific Yield assumptions used in the Bidder’s Model shall be credible and consistent
with the solar resource and specific yield assessment report in Formsheet G (Performance
Guarantee Data) of Part II of the RFP.
The Net Electrical Energy of the Plant in the Bidder’s Model shall be net of the auxiliary
power consumption.
The Bidder’s Model shall contain worksheets which contain all calculations required by
Formsheets J (Total Project Costs) and L (Financial Data) of Part II of the RFP.
The Bidder’s Model shall be structured so that the period from the day following the Closing
Date until the Scheduled Commercial Operation Date is forecast on a monthly basis. For
the period after the Commercial Operation Date, forecasts shall be made on an annual
basis.
The Bidder shall supply detailed operating instructions for the Bidder’s Model, setting out a
summary of the layout of the Bidder’s Model and describing the function and usage of any
features which are not self-explanatory, especially items such as calculation macros and
complex formulae. These operating instructions shall describe in detail the procedure for
resolving the Bidder’s Model when undergoing a change in assumptions and running the
sensitivities specified in the relevant section below.
Outputs
Financial projections for the Proposal must include, at a minimum, the following in addition
to what is required to be included in the “Formsheets” worksheet:
● balance sheet;
● a schedule of the Equity IRR over the project life (nominal and real).
These financial projections shall be presented on an annual basis with the exception of the
schedule of movements on financing which is to be provided on a semi-annual basis.
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Sensitivities
The Bidder’s Model shall allow for the following sensitivities to be tested, within reasonable
bounds:
● inflation;
● Specific Yield.
As part of the evaluation process, BPC may also be employing its own evaluation model.
The analysis required to be performed by the Bidder’s Model will be supplementary to that
conducted on any evaluation model conducted by BPC.
The Bidder’s Model shall confirm that the base case Equity IRR is calculated from the
Distributable Cash to Equity, inclusive of any development fee or similar.
The calculation of the Equity IRR shall clearly demonstrate the projected Equity IRR for
each Shareholder and shall be done using a monthly period up to the Scheduled
Commercial Operation Date for the relevant Plant taking account of any debt repayment for
the periods after each Scheduled Commercial Operation Date as set out in the relevant
sections of Formsheet K (Financial Data) of Part II of the RFP.
The terminal value assigned to the Project assets at the end of the Term of the PPA and
included in the Equity IRR calculation shall be zero.
Drafts of the Core Agreements are included in Part III of the RFP. The Bidder must include
in its Proposal either (i) a statement that it accepts the Core Agreements in their entirety as
part of the Proposal or (ii) or if it does not, mark-up(s) or rider(s) and, in each case, brief
commentary explaining the reason for the proposed revision (with the revised drafting as
relevant) to be submitted in Formsheet I (Proposed Deviations) of Part II of the RFP.
The Bidder will be evaluated on, amongst other things, the extent of its compliance with the
terms and conditions set forth in the Core Agreements. Any significant exception(s)
qualifications or deviations proposed to the Core Agreements may render a Proposal to be
substantially non-responsive.
For each Plant, on and from the Commercial Operation Date, the Energy Charge for Net
Energy Output supplied at the Delivery Point shall be calculated in accordance with
Appendix 8 (Calculation of Payment) of the PPA set out in Part III of the RFP.
The Bidder is required to calculate the Energy Charge for the Net Electrical Output based
on:
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● the payment calculation formula set forth in Appendix 8 (Calculation of Payment) of the
PPA;
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ANNEX 1
Substation
Location/GPS coordinates PV Plant Maximum
[ Latitude , Longitude] Rating AC [kW]
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PART II
PROPOSAL FORMSHEETS
Formsheet A Form of Letter of Commitment
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PART III
CORE AGREEMENTS AND PROJECT INFORMATION
1 Core Agreements
2 Project Information
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END.
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