||Are only registered companies eligible for GRMF HEAT? Can self-help groups, learning institutions, community based organizations and other similar entities participate?
||Public or private organisations as well as public private partnerships (eligible entities) are eligible to apply to the Facility.
The beneficiary’s legal status, legitimating the beneficiary to enter into a grant contract, will have to be confirmed by a reputable third-party lawyer from the beneficiary’s country of origin before signing a grant contract.
Please see GRMF HEAT Developer Manual Chapter 7 and 12 f) for more information.
||What is the payment schedule for the disbursements?
||Milestones / Grant disbursement schedule will be included in the grant contract. Achievement of milestones will trigger any grant disbursements. Relevant disbursement schedules shall be communicated during the RfA phase.
On achievement of milestones in the surface studies plan and according to the disbursement schedule included in the grant contract, the developer shall send the payment request and supporting information to the AUC address specified in the Request for Application (one original). Supporting information can be e.g. copies of receipts and/or invoices, reports on milestones reached or pictures of infrastructure established.
||Are the payments based on actual costs?
||The upper limits for financial support of the approved eligible costs at the time of proposal submission (as stated in the eligible activities), fixed in the form of a grant contract to winning Applicants for surface studies, are as follows:
- Infrastructure grants: up to 20% of approved eligible costs for infrastructure required for eligible surface studies (e.g. access roads, water supply).
- Surface study grants: up to 80% of approved eligible costs (excluding infrastructure costs).
The final grant volume will be based on actual costs up to the limits as set out in the Grant Contract.
||Is it possible to get a copy of the draft Grant Contract?
||A draft Grant Contract will be available for developers who received an awarding letter after the full-application phase.
||Is the grant contract negotiable?
||Grant amount and Grant Contract are not negotiable.
||How are the budgets for anticipated internal and external costs to be documented during the application phase and in the execution phase?
||Applications shall, as part of their full Application (not during the EoI phase) include a Cost Estimate containing a detailed breakdown of anticipated costs for surface studies which are eligible for support by the Facility.
Applications shall demonstrate that anticipated costs are reasonable and adequate and that they represent value for money, i.e. that costs and quality of all goods and services are at a minimum consistent with market norms and country standards, and preferably represent a discount compared to market norms and country standards. As such, Applications should include as attachments documentation such as quotations or estimates from different suppliers of services and goods as well as costs of previous projects in the region and internationally or any other justification of costs that substantiate the cost estimate.
During the financial evaluation, the cost estimates from the applicants will be checked for completeness and eligibility. Subsequently, the adequateness and reasonability of the cost estimates based on the justifications given will be determined. All contingencies stated will also be checked for eligibility and reasonableness. Any adjustments necessary as the basis for the grant level offered in the contract negotiation phase will be proposed. For the sake of clarity, if the cost estimates or contingencies are found to be higher than the actual estimate of the evaluation experts, the grant level will be adjusted to match the estimated costs of the GRMF experts.
After execution of the project, the actual cost will be confirmed in a financial report, containing and audited expenditure verification report (EVR), which will be a pre-condition for the final disbursement.
||Are risk contingencies and allowances allowed? How to deal with uncertainties related to early phase cost estimates?
||Reasonable and agreed contingencies are eligible for Infrastructure & Surface Studies. Please see Chapter 7.4 Eligible Costs of the GRMF HEAT Developer Manual.
||Is it possible to operate on a reimbursable model where certain budgets are uncertain?
||The grant amount will be based on anticipated costs and fixed within the Grant Contract.
||What is the process and what are the criteria for the technical evaluation of the application?
||Information on the full-application phase will be made available during the pre-bidding workshop.
For the Expression of Interest a description of the evaluation process can be found in Chapter 10 of the GRMF HEAT Developer Manual. A description of evaluation criteria can be found in Annex 1 of the GRMF HEAT Developer Manual.
||What are the environmental and social permits required for projects in Ethiopia?
||It is the Developer’s responsibility to carry out its operations at all times in compliance with all applicable national environmental, occupational health & safety, public health and safety, labour and social laws and regulations.
Unfortunately, the Regional Geothermal Coordination Unit (RGCU) cannot provide information on which specific permits must be obtained in the respective eligible countries.
||Please elaborate on the two-stage process for international competitive bidding for consulting services? Are for example pre-qualification documents / templates to be used?
||International Competitive Bidding by public advertisement is the preferred method of GRMF procurement. Public advertisement has to be made by international online tender publication.
The procedure for procuring consulting services usually comprises an international, public and unrestricted invitation to tender conducted in two stages, namely prequalification and competitive tendering. In the first stage of the procedure the general suitability of the bidders is examined; in the second stage a competition among the prequalified bidders is held to select the bidder who has submitted the best bid in terms of the quality of services offered and the price for those services. The deadlines for preparation of the prequalification documents and for preparation of the bids must take due account of the particular circumstances of the project, its size and complexity, and ensure sufficient and transparent competition. Deadlines shall be at least 30 calendar days for prequalification procedures and 45 calendar days for bids.
For more information, please see GRMF Developer Procurement Guidelines (Sixths Edition).
||Is it possible to add additional countries to the eligible list for this application round?
||As the Expression of Interest Phase already started, it is not possible to add additional eligible countries for this Application Round.
||Is it possible to add countries outside of East Africa to the eligible list (at any point in the future) if there is sufficient evidence of a geothermal resource suitable for a geothermal heat project?
||Countries can be added to the list of eligible countries for future Application Rounds. To do so, an official letter to the African Union Commission is required. Afterwards a decision will be taken by the GRMF Oversight Committee.
||In case a site has already been subject to of a complete surface study and on-site exploration has already begun, is it possible to directly proceed with the drilling phase?
||Currently we do not offer funding for Drilling Programmes related to direct use. However, pending the results of a first application round, the facility might be extended to also support drilling and testing of wells.
||Does the deadline stated under 4.4 of the Request for Application Document (16th March 2023, 4 pm East African Time) also apply to the originals of the following documents?
- EoI Cover Letter
- EoI Appendix 1 – Declaration of Acceptance and Adherence to Procurement Standards
- EoI Appendix 2 – Declaration of Non-Existence of Rejection Grounds
|Only the electronic versions and their receipt by email are relevant for the GRMF HEAT EoI deadline of 16 March 2023 at 4pm (EAT).
The originals can still be sent to the GRMF Project Manager after the deadline:
African Union Commission
Infrastructure and Energy Department
W21K19; P.O. Box 3243
Addis Ababa, Ethiopia