Please find the GRMF HEAT Background Documents here.
The objective of the Facility is to encourage public and private investors as well as public and private partnerships to develop geothermal prospects for direct use in Eastern Africa by providing grants for Surface Studies to determine the optimal location of exploration wells at the most promising geothermal prospects including the preparation of a feasibility study.
Eligible activities for the Facility comprise the following:
- Surface Studies to locate optimal sites for exploration wells at geothermal prospects, which have previously been studied to some extent. Eligible surface studies include shallow temperature gradient wells (see Annex 4), provided that they are drilled on non-permanent well pads, geophysical surveys (e.g. seismic, gravity and resistivity surveys) and supplementary geological, hydrogeological and/or geochemical surveys. In addition, a surface study programme may include infrastructure upgrades required for conducting surface studies (e.g. for providing access), if applicable. Surface studies shall include a feasibility study regarding the exploitation of the resource and the available market for direct use applications. Surface studies shall also include an integrated resource report interpreting and summarising the results of the surface studies in terms of a temperature gradient map of the resource area as well as a conceptual model of the resource and identification of high priority drill sites and targets at depth.
- For public entities, external costs for preparation of Expression of Interest (EoI) and full application (own cost are not eligible). Please be aware that these costs will only be covered in case of a successful application and signing of a grant contract.
- Infrastructure costs required for surface exploration (e.g. access roads, water supply) are covered by an infrastructure grant, which can be applied for in conjunction with the surface study.
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 disbursements will be based on actual costs up to the limits stated above upon reaching of agreed milestones.
The GRMF will provide grants to Developers through a competitive, transparent and rigorous two-stage Application processes. This encompasses a pre-application (Expression of Interest) as well as a full application phase.
The first stage of the Application procedure is an open prequalification process inviting potential Applicants to submit their Expressions of Interest (EoI) within a specified period. It is allowed to provide multiple EoI for eligible activities on different sites. Companies whose surface studies were funded in one Application round can apply for exploration drilling programmes in one of the next Application rounds. EoI that score over a certain threshold (70%), successfully pass the pre-qualification and will be short-listed. Short-listed Applicants will be invited to participate in a mandatory pre-bidding workshop and to submit an Application.
The pre-bidding workshop will be held for short-listed Applicants after evaluation of the EoI. The aim is to ensure high-quality Applications by clearly explaining the Application, evaluation and procurement processes. For drilling Applications, mandatory training in the use of a GRMF custome-designed financial model is also integrated into the pre-bidding workshop.
In the second stage, Applications from short-listed Applicants will be accepted within a a specified period. Applications that score over a certain threshold (70%) will be eligible to enter into contract negotiations with the African Union Commission. The actual number of awards will be limited to available funding.
In the case of a successful negotiation, the Grant Agreements will be concluded between the African Union Commission and the Applicants. The Grant Agreements set requirements for the following monitoring and reporting phase for the surface studies and the reservoir confirmation drilling and testing projects as well as specifications on the disbursement of grants.