Friday, October 10, 2014

EOI - KENGEN - Feasibility study - CLOSE 04/11/14

Expression of interest for the provision of consultancy to undertake feasibility study on the establishment of Kengen Industrial Parks in Naivasha (KGN-REG-07-2014)
Kenya Electricity Generating Company Limited (“KenGen”) is the leading power generating company in Kenya with an installed capacity of 1252MW equivalent to about 72% of the national capacity. KenGen utilizes various primary sources of energy to generate electricity ranging from hydro, geothermal, thermal and wind. Hydro is the leading source, with an installed capacity of 819.9MW (65%), Geothermal 170.3MW (13.6%), Thermal 256.2MW (20.5%) and Wind 5.1MW (0.4%). KenGen plans to increase its installed capacity to 3000MW by 2018. KenGen is the largest geothermal power producer in Africa. Most of the capacity expansion will come from geothermal.

 KenGen wishes to undertake a feasibility study to evaluate the technical, financial and economic feasibility of setting up Industrial Parks at selected sites in Naivasha, Nakuru County.    Some of the sites may incorporate Export Processing Zones (EPZs). KenGen therefore intends to engage a single consultancy firm/consortium to undertake the task.


The consulting firm/consortium shall:

a)       Undertake a baseline survey, data review and assessment - review of EPZ policy, legislation and developments, Special Economic Zone (SEZ) policy and legislation as well as economic conditions relevant to investing in the said industrial parks in Kenya in general and in the Naivasha area in particular (Situation analysis).   
b)       Undertake Site investigations and profile the climatic, soils and topographical conditions of the selected region, infrastructural gaps and linkages, population and settlement, economic activity, environmental considerations and suitability for industrial park establishment.
c)       Develop a concept for prospective economic activities suited to the location and desirable for development of the region.
d)       Identify prospective investors by broad industrial sector classification and where possible by name, including identifying their requirements
e)       Based on  input from prospective investors and other factors, establish projected demand for land, buildings, amenities and facilities, and for utilities within the respective industrial park sites, where possible indicating the proposed sector specialization for a particular industrial park site and a customer value proposition pack for that industrial park,  based on its endowments and proposing (competitive) pricing for land, buildings, amenities, facilities and utilities in the industrial parks as well as available policy incentives.
f)        Develop a Conceptual plan for site development to include, among others:
        Formulation of planning objectives giving due consideration to how: o to maximize positive integration with the local economy; o to structure and create special compelling advantages for attracting investors;
o        to incorporate design features that ensure ease  of  entry, evacuation, import/export and that eligible EPZ and  industrial activities can occur in the most conducive circumstances 
        Specification of land area and land use requirements for factory buildings and administration offices, infrastructure facilities, storage and warehousing, parking etc.  and phased development of facilities to meet projected demand.
        Estimate the type and size of built up area of various types and their costs as well as the cost of construction of all related infrastructure and amenities.
        General identification of possible environmental issues and measures to be taken on board in addressing these issues
        Specification of option models for design and development stages, including phasing, scope and scale for phases with differing levels of private sector participation.
        Provide both economic and financial analyses as well as funding requirements and sources: o Economic analysis – estimate economic costs and benefits for the project in terms of rates of return on investment and net present value, with sensitivity analysis for at least 3 key variables
o        Financial analysis – estimate financial costs and benefits and evaluate financial viability using net present value and internal rates of return in constant prices with sensitivity analysis for at least 3 key variables
g)       Impact sensitivity analysis- indicate how this intervention will act to minimize negative impacts or maximize positive impacts among the surrounding communities.
 Identified areas of focus: - This will be a single contract covering all 5 identified, noncontiguous sites in Naivasha area.


3.1 Team skills and competencies

 The bidding firms/consortia should have and submit names of a consulting  team comprising of at least 3 members, being a lead consultant and 2 team members serving as A) economist/business analyst and B)  technical expert in  urban planning, engineering and  architecture.

                Required Academic Qualifications and Work experience of consultants:

 Lead Consultant: The lead consultant must have a Masters, or its equivalent, in the following areas, Development Economics or Strategic Management, Project Management, or Economics with project management background and must have at least 10 years post qualification experience.  Knowledge of marketing and financial analytical skills required.
 Other team members: The other team members should have a minimum of a
Bachelors degree in relevant disciplines (Business Administration, Finance, Economics, Project Management) and (Urban Planning, Architecture, Civil Engineering or Building Economics) plus a Bachelors degree in relevant area of study (Commerce, Business Administration, Finance, Economics, Project Management, Management) and (Urban Planning, Architecture, Environmental Engineering, Civil Engineering or Building Economics) as well as 5 years post qualification experience.

3.2  Qualification and Experience of the firm

 The consulting firm or consortium shall exhibit the required experience in conducting similar/relevant work that must comprise, but is not limited to, the following: i. Research and analysis techniques; ii. Preparation of similar feasibility studies in the past;
iii.      Specific proven knowledge of designing and developing an EPZ or an industrial park
iv.      Specific knowledge of and experience in  relevant industrial sectors
The consulting firm/consortium shall identify at least three similar projects successfully completed and provide references for each project.


Format for submission of Proposals: Applicants must submit the following information:
a)       Documents detailing that the party (ies) fulfils the minimum requirements in 3.1 and 3.2 above;
b)       Evidence of registration
c)       List of feasibility studies in Projects of similar nature, including a brief description of the project in the last 6 .years.
d)       List of feasibility studies in the Energy/Power Sector, including a brief description of the project in the last 6 years .
e)       At least one similar Projects that have been successful developed, including a brief description of the project
f)        Where the Applicant is a consortium, a list of the proposed members of the consortium and the proposed Leader of the consortium, including a consortium agreement or a memorandum of understanding


       The interested parties may request for clarifications on this Expression of Interest upto five (5) days before the EoI submission date. Any request for clarification must be sent in writing by paper mail, facsimile, or electronic mail to:
                Regulatory and Corporate Affairs Director
                Kenya Electricity Generating Company Limited,
                Stima Plaza III, Kolobot Road, Parklands,               P.O. Box 47936 – 00100,                  Nairobi, Kenya.
                Tel:  +254-20-3666427/+254 – 20 - 3666421
       Email: CC;


 The EoI (1 Original and 3 copies) and a soft copy in read only CD copy should be submitted in a sealed envelope by 1400 hours (Kenya time) on 4th November, 2014 10.00 the following address:
Interested and qualified firms may obtain further information from the office of the:
Company Secretary & Legal Affairs Director
Kenya Electricity Generating Company Limited
7th Floor, Stima Plaza Phase III
Kolobot Road, Parklands P.O Box 47936 – 00100


Tenders will be opened on 4th November 2014 10.30 a.m. in the presence of the candidates’ representatives who choose to attend at Stima Plaza III, Executive
Committee Room, 7th Floor