A Step by Step Guide for NBET’s Competitive Power Procurement

guide 1

STEP 1

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

  • Requirements for new generation capacity
  • Location of demand
  • Type of demand (i.e. Base Load, Intermediate, and Peaking)
  • Projected Transmission Network Capabilities and Constraints
  • 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 the technical apect 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 Biddders 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.

 

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