Expression of Interest (EoI) Stage

Please find the GRMF Background Documents here.

In this section you can download the pre-qualification documents for the 7th Application Round (22.06.2021).

Furthermore, we would like to draw your attention to Developer Manual, which has been updated for the 7th Application Round and can be downloaded here:

Developer Manual (V13)

The deadline for the submission of Expressions of Interest during the 7th GRMF Application Round was 31 August 2021 at 04:00 PM EAT.

The pre-qualification process comprises the following activities:

  • Potential Applicants of the Request for EoI will be informed by means of promotion activities (e.g. the pre-application workshop).
  • Request for EoI will be posted on the Facility webpage.
  • For inquiries for clarifications regarding the EoI, Applicants shall submit questions via e-mail to the following addresses: grmf@africa-union.org and grmf@roedl.com. The deadline for inquiries is 14 days before the closing date of the Pre-qualification. Inquiries received after the deadline will not be considered. Inquiries will be collected and answers will be published, without eligible entity’s or inquirer’s details, on the GRMF webpage.
  • The deadline for submission of pre-qualification documents may be extended by issuing an amendment or addendum. Also, the content of the Request for EoI might be changed by amendment.
  • One electronic copy (searchable PDF file) of the complete pre-qualification documents has to be submitted to:

The size of email attachments shall not exceed 10 MB. In case the attachments are larger than 10 MB, an upload link can be requested from grmf@roedl.com. However, to participate in the tender, an email containing the following signed and stamped scanned documents has to be sent to the email addresses above:

    • EoI – Cover Letter
    • EoI Appendix 1 – Declaration of Acceptance and Adherence to Procurement Standards
    • EoI Appendix 2 – Declaration of Non-Existence of Rejection Grounds

The originals of these documents will be requested at a later point in time.

  • Only complete EoI which are in line with the required submission form will be considered for evaluation.
  • Expressions of Interests will be evaluated according to a predefined methodology that will be specified in the Request for EoI.
  • Applicants will be provided with the feedback presumably within 12 weeks after the submission deadline for EoI.
  • Shortlisted Applicants will be invited to participate in the mandatory pre-bidding workshop and in the application stage.

GRMF 7th Application Round Kick-Off Webinar

On 22 June 2021 the kick-off of the 7th Application Round of the Geothermal Risk Mitigation Facility for East Africa (GRMF) took place in form of a webinar. The presentations from the webinar can be downloaded below.

Please click on the titles of the presentations to see a video recording of the kick-off webinar.

Agenda – Kick-Off Webinar (22nd June 2021)
Ethiopian Time (GMT+3)
02:00 pm – 02:15 pm Opening Remarks
02:15 pm – 02:30 pm GRMF – Overview & Status
02:30 pm – 02.45 pm Application Procedure
02:45 pm – 03:00 pm Q&A
03:00 pm – 03:15 pm Geotechnical Requirements
03:15 pm – 03:30 pm Q&A
03:30 pm – 03:45 pm E&S Requirements
03:45 pm – 04:00 pm Q&A
04:00 pm – 04:15 pm Procurement Regulations & Early Contracting
04:15 pm – 04:30 pm Q&A
04:30 pm Closing Remarks

Q&As on the Expression of Interest

No. Question Answer
1 Which countries are eligible for funding by the GRMF? The eligible countries are:

  • Burundi
  • Comoros
  • Democratic Republic of Congo
  • Djibouti
  • Eritrea
  • Ethiopia
  • Kenya
  • Rwanda
  • Tanzania
  • Somalia
  • Uganda
  • Zambia

For further information on the eligibility of your project, please consider the GRMF Developer Manual (V13)

2 Is there a list of Projects from previous rounds? You can find a map of all GRMF funded projects on the frontpage of the GRMF Homepage.
3 How can a country become eligible for funding by the Geothermal Risk Mitigation Facility? A representative of the respective country has to send an application to become eligible to the Director of the AUC’s Department for Infrastructure and Energy (AUC-IED). Any findings which show the presence of geothermal resources shall be included in the application.

The Director of the IED is the chairman of the GRMF Oversight Committee (OC). The OC ensures that the GRMF meets its overall objective and that the activities are consistent with its mandate as described in the GRMF Developer Manual. One of its tasks is the discussion and decision on major organizational issues, such as the addition of eligible countries.

4 Is there as limit to the funds available under the 7th Application Round? There is no general limit to the funds available under the 7th Application Round.

The financial support for each project is determined by the GRMF Developer Manual (V13) as follows:

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 and exploration drilling and testing programmes are as follows:

  • Infrastructure grants: up to 20% of approved eligible costs for infrastructure required for eligible surface studies and eligible drilling programmes (e.g. access roads, water supply).
  • Surface study grants: up to 80% of approved eligible costs (excluding infrastructure costs).
  • Drilling programme grants: up to 40% of eligible costs for the drilling and testing programme for well fluids (excluding infrastructure costs).
  • Contingent grant (Continuation Premium): up to 30% of the approved eligible costs of continuation activities or up to 30% of the developer’s share of the eligible costs incurred during the initial drilling and testing programme – whatever is lower – according to certain conditions as defined in chapter 18.

The disbursements will be based on actual costs up to the limits stated above upon reaching of agreed to milestones.

It is to be noted that collaboration between the Facility and other bilateral and multilateral facilities (e.g. NEPAD-IPPF, ARGeo and Development Banks) is strongly encouraged.

5 Which infrastructure cost are eligible for funding by the GRMF? Funds for infrastructure will only be granted on the condition that they are directly associated with an eligible surface study or drilling programme. Eligible costs for infrastructure comprise the following activities:

  • If applicable: access roads and/or access road maintenance
  • If applicable: water supply infrastructure (eligible is that part of the water supply system, which is required to operate a single rig)
  • If applicable: transport and crew accommodation
  • Eligible, reasonable and agreed contingencies

 

For more information, please refer to the GRMF Developer Manual (V13).

6 Will results and narratives of explorations separately from the official GRMF forms be accepted. They will be accepted as far as the GRMF forms contain a clear presentation of data and clear references (including page numbers) to documents provided in addition to the GRMF forms. At best, the completed GRMF application documents should give a clear picture of the project.
7 How can a service company play a role in supporting a private entity application without jeopardizing the GRMF procurement process? For information on the GRMF procurement regulations, please refer to the GRMF Developer Procurement Guidelines and the GRMF Conditions for Early Contracting.

It is to be noted that according to general GRMF rules, the time for commencement of services and sub-contracting shall be according to the agreed Time Schedule forming a part of the Grant Contract but no earlier than the effective date of the Grant Contract. It is required that surface studies commence within 6 months of signing the Grant Contract and that drilling commence within 12 months of signing the Grant Contract. On an exceptional basis, alternative commencement dates can be negotiated.

Though, the GRMF acknowledges that the application process for funding poses challenges for project developers in respect to timing of the signing of contracts, as well as regarding the commencing of GRMF eligible activities. Therefore, the herein described early contracting regulations allow two exceptions (cut-off dates) to the general GRMF rules. These are described in the following:

  1. 1st cut-off date on early contracting refers to the submission deadline of the Expression of Interest:
  • Costs from contracts signed with any third party before this date will not be eligible;
  • Costs from contracts signed after this date will be eligible.
  1. 2nd cut-off date on early contracting refers to the submission deadline of full Application:
  • Any activity (and therefore any related costs) that shall be eligible for support by GRMF (= eligible activity) can only start after this date.
  • Exception: Activities relating to the preparation of the Environmental & Social documentation that needs to be submitted with the full application may already start after the 1st cut-off date (for further exceptions related to the cut-off dates for E&S reporting please contact the GRMF management).

In case of a “direct DP application” according to section 9.5 of the GRMF Developer Manual, the reference for the two cut-off dates is different, because no official timeline for GRMF application rounds applies. Please see GRMF Conditions for Early Contracting.

8 Can the area to be studied and applied for GRMF support be expanded, if previous studies had not defined the resource boundaries yet? A previous study is always needed, which is then used to justify and to focus the GRMF funded studies.

Enough needs to be known, to have clear picture of where the research for the wells shall be undertaken. Resource boundaries shall be the objectives of later studies.

9 Can you apply for two area studies in one application? It has to be one application per research area.
10 Is there a template for the environmental and social risk screening report in preparation? There is not template for the environment and social risk screening report.

For a potential full application for a Surface Study, each developer will have to submit an Environmental and Social Risk Screening Report, containing overall identification of environmental and social risks of the planned activities, key environmental and social information on the area to be studied and an initial scoping of environmental and social issues, including any human rights risks as per GRMF Human Rights Guidance. The Report has to include the Developer’s work plan for the acquisition of environ-mental and social information and related activities during the surface study phase. The E&S Risk Screening Report is to include the environmental and social risk categorization of planned activities according to IFC standards.

For more information on the environmental and social safeguard requirements, please see the GRMF Developer Manual (V13).

11 Is fluid sampling of manifestations located outside of the licence area eligible where the manifestations are expected to be related to the geothermal system, but in accordance with the host country’s geothermal legislation the licence will be too small to incorporate these sites? For the surface studies applied for the applicant always needs to provide reasoning, based on previously conducted studies, that the results, or in this case sampling of this manifestation, could characterize the resource at their license area. The reasoning should be clearly explained, referenced and detailed in the application document. The relevance of a chemical sampling study in a neighbouring license area will only be confirmed when direct measurements on the applicants license area confirm the similarities and thus connection of the two areas. Applicant is therefore further kindly reminded that the ideal resource to be explored should be independent from others. So this desire might interfere with the above mentioned geoscientific considerations, which interpret that a surface manifestation on a given license area could characterize a resource located on the neighbouring license area. Within the GRMF application it is important to show with geoscientific reasoning and based on previously conducted studies, that there is an independent heat source expected within the license area applied for.
12 Can approved early contracting requests “rollover” from a previous Application Round or does another early contracting request need to be submitted? Please send a new request as part of your application. Please note the two cut-off dates for early contracting.

  1. 1st cut-off date on early contracting refers to the submission deadline of the Expression of Interest:
  • Costs from contracts signed with any third party before this date will not be eligible;
  • Costs from contracts signed after this date will be eligible.
  1. 2nd cut-off date on early contracting refers to the submission deadline of full Application:
  • Any activity (and therefore any related costs) that shall be eligible for support by GRMF (= eligible activity) can only start after this date.
  • Exception: Activities relating to the preparation of the Environmental & Social documentation that needs to be submitted with the full application may already start after the 1st cut-off date (for further exceptions related to the cut-off dates for E&S reporting please contact the GRMF management).

The rules and regulations for this so-called Early Contracting are summarized in Conditions for Early Contracting.

13 Can the recording of the presentations from the AR7 kick-off webinar please be provided to accompany the slides currently available for download. Please click on the titles of the presentations within the agenda above to see a video recording of the kick-off webinar.
14 Can you apply for grant funding if you do not yet have an exploration licence, but have submitted an application? Yes, this is possible. In this case, please mark the corresponding authorization in Annex 2 & 3 Submission Form for Expressions of Interest for the Seventh Application Round, as “in process of being approved” (checkbox).
15 Can you apply for grant funding if you have not yet submitted a licence application, but are preparing to do so? Yes, this is possible. However, please be aware that a license already applied for is of higher value within the evaluation process, than a license application being prepared. Please provide an estimated timeline for the license application process within the remarks section of Annex 2 & 3 Submission Form for Expressions of Interest for the Seventh Application Round.
16 Can you apply for drilling cost support at the same time as applying for surface study support.  Or do you have to conclude one phase of work before applying for the other? Please conclude the surface study before applying for the drilling programme. Comprehensive surface studies are a prerequisite to apply for a drilling grant.  GRMF provides a special treatment for developers that have successfully implemented a GRMF funded Surface Study with significant positive results: Developers with an approved integrated resource report as the final report of surface study are entitled to submit the application for their sub-sequent drilling programme at the same project site out of the official timeline for GRMF application rounds (“direct DP application”). By this, the evaluation and award process for drilling programme applications will be more flexible. More information on the direct applications for drilling programmes can be fund in chapter 11 of the GRMF Developer Manual (V13).
17 What is the projected (or estimated) timing for confirmation of award of a grant in this current round 7? Awarding letters for developers who qualified during the 7th GRMF Application Round will be sent out in QI 2022.
18 Are there likely to be additional funding rounds after the current round 7? The GRMF intends annual application rounds. However, it depends on the decision of the GRMF Oversight Committee (AUC & Donors). Further information on this will be published after the evaluation of the Expressions of Interest.