KenGen seeks advisory for sale of certified emissions reduction
by Babalwa BunganeKenya Electricity Generating Company (KenGen) has participated in reduction of emissions from the atmosphere through the Clean Development Mechanism (CDM) under Kyoto Protocol.
KenGen has six registered CDM projects under the mechanism with potential emission reduction of 1.5 million tCO2e annually. The projects are;
i. Optimisation of Kiambere Hydro Power Project
ii. Redevelopment of Tana Hydro Power Station Project
iii. 5.1MW Grid Connected Wind Electricity Generation at Ngong Hills, Kenya
iv. Olkaria II Geothermal Expansion Project
v. Olkaria IV Geothermal Project
vi. Olkaria I Units 4&5 Geothermal Project
KenGen intends to engage a transaction advisor for the sale of certified emission reductions (CERs) from the CDM projects comprising of hydropower, wind and geothermal sources that have been implemented and verified in accordance with the United Nations Framework Convention on Climate Change (UNFCCC) guidelines.
The deadline for submissions is 29 September 2020 at 10h00 East African time.
The objective of this Expression of Interest is to contract a transaction advisor with extensive experience in the trade of certified emissions reductions (CERs), verified emissions reductions (VERs) and/or voluntary carbon units (VCUs) with the purpose of undertaking market sounding and advising KenGen on the best sale strategy, marketing techniques, appropriate sale duration, the most viable quantities of sale and map out potential markets internationally.
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Emissions reduction advisory: scope of work
The scope of consultancy shall cover provision of advisory services on sale of KenGen’s issued CERs arising from its wind, hydropower and geothermal CDM projects. It shall include, but not limited to the following tasks:
- Undertaking market sounding for sale of KenGen’s CDM issued CERs from its six registered projects;
- Determination of the best marketing and sale strategy;
- Establishing guidelines/ terms of sale of the CERs;
- Mapping out potential markets internationally and advising on the best option to enable KenGen to pursue in sale of its CDM issued CERs.
The firms prequalified to offer advisory services will be invited to respond to a detailed request for proposal outlining the expected consultancy and sale process for the available CERs.
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Eligibility criteria
The Expression of Interest must be accompanied by the consultant’s qualifications, professional capabilities and details of past experience in the area of commercial carbon transactions.
Such information shall include brochures, description of similar assignments, provision of completion certificates and/or referrals, experience in similar assignments and availability of appropriate skills among staff with their most recent profiles showing their experience, qualifications, capabilities and referees.
The consultant shall bid for the assignment individually or in association with other firms or consultants.
The interested firms shall provide the following specific information as well as any other relevant information:
- Name of firm(s) that will participate in undertaking the advisory services and their role in offering the service, as well as name(s) and position(s) of authorised representatives.
- Firms that bid jointly shall submit consortium agreements between the parties, with the roles of each party clearly defined.
- Expertise in commercial carbon transactions with submission of evidence of previous professional experience in commercial carbon credits transaction structuring for international, state and private sector parties. Such evidences shall be in form of completion certificates or referral letters.
- The firm shall demonstrate at least 10 years’ experience in trading of CER’s/VERS/VCUs from renewable energy or similar projects. References of at least five projects done by the firm of consultants in the last 10 years shall be provided.
- The lead consultant of the firm should possess at least have 5 years’ experience in commercial carbon transactions and must have transacted at least 50,000 CERs/VERs/VCUs.
- The personnel to handle the assignment shall be qualified and competent to undertake the task. They shall be supported by relevant education and/or experience in the field of carbon trade with evidence(s) such as signed and certified Curriculum Vitae and copies of academic and professional certificates.
- The firm of consultant shall be a member of internationally recognised emission trading association. This shall be backup by provision of membership certificate.
- Description of management/organisation structure, list of key staff relevant to the assignment, inclusive of staff who will monitor and give backup services.
- Evidence of incorporation and other statutory registrations in country of domicile.
- Current tax compliance certificate from the country of origin (Where Applicable).
Any request for clarification must be sent in writing by paper mail, facsimile, or electronic mail to:
Supply Chain Director
Kenya Electricity Generating Company PLC,
Stima Plaza III, Kolobot Road, Parklands,
P.O. Box 47936 – 00100,
Nairobi, Kenya.
Tel: +254-20-3666427/+254 – 20 – 3666421
Email: tenders@kengen.co.ke CC: jwere@kengen.co.ke
Submissions
Three (3) copies of the pre-qualification application shall be submitted – ONE (1) “ORIGINAL”, so marked, and TWO (2) endorsed copies each marked “COPY” in separate sealed envelopes plus one(1) readable soft copy. Each envelope shall be clearly marked KGNREG-06-2020- EXPRESSION OF INTEREST (EOI) FOR PROCUREMENT OF CONSULTANCY SERVICES FOR TRANSACTION ADVISORY SERVICES FOR SALE OF CERTIFIED EMISSION REDUCTIONS to the following address:
Company Secretary & Legal Affairs Director,
Kenya Electricity Generating Company PLC,
KenGen RBS Building, 10th Floor next to Stima Plaza III,
Kolobot Road, Parklands
P. O. Box 47936 – 00100,
Nairobi, Kenya.
Tel: + 254 20 3666708;
Fax: +254 20 248848
The deadline for submissions is 29 September 2020 at 10h00 East African time.
More details about this request, visit KenGen.