Process for Competitive Procurement
Prior to the commencement of the competitive procurement exercise, Nigerian Bulk Electricity Trading Plc (NBET) will consult with the Distribution Companies on the tender design and the power procurement contracts in accordance with the Market Rules (MR)
On an annual basis the System Operator within the Transmission Company of Nigeria generates a report that highlights:
- a. Requirements for new generation capacity
- b. Location of demand
- c. Type of demand (i.e. Base Load, Mid-merit, and Peaking)
- d. Projected Transmission Network Capabilities and Constraints
- e. Projected Gas and other Fuel Supply Capabilities
Nigerian Bulk Electricity Trading Plc (NBET) will publish Expressions of Interest (EOI) in the Federal Government Tenders Journal, the World Bank procurement website and at least two Nigerian Newspapers.
NBET reviews the submitted bids focusing on the technical expertise, financial capability, and operating experience. NBET thereafter issues a NERC approved Request for Proposal (RFP) that addresses the technical and commercial aspects of the prospective projects.
Following the determination of the preferred and Reserved Bidder, NBET will seek approval from NERC to enter into a PPA. NBET shall issue a form Power Purchase Agreement to the Preferred Bidder. During negotiations, the Preferred Bidder will start a tender process for its Engineering, Procurement & Construction Contract, Long Term Service Agreement and its Operation and Maintenance. If negotiations are not concluded with the Preferred Bidder, the Reserved Bidder will be called upon.
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.
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