Clarifications2018-07-26T11:03:49+00:00

Clarifications for EoI (pre-qualification) stage

Topic Inquiry Clarification
1) Early contracting

Is the cost associated with the procurement, negotiation and contracting with a potential contractor (in particular for big items, such as drilling and civil work) eligible, if this cost is occurred after 1st cut-off date (deadline of EoI)?

Often there is a lot of cost associated with the procurement process prior to signing. We understand that cost associated with the execution of work under the contract is only eligible after the 2nd cut-off date (deadline of RfA). But what about the cost (e.g. legal, engineering, project management etc.) associated with the tendering and contracting which is allowed to be signed after the 1st cut-off date?

The GRMF conditions for early contracting are quite strict regarding the eligibility of costs incurred prior to the submission deadline of the full application.

1) It is determined that “costs from contracts signed after the 1st cut-off date will be eligible”. This definition does not include any in-kind contributions (such as project management costs) which at this point in time are not eligible. In case service providers are required for the procurement process of contracts signed after the 1st cut-off date but before the 2nd cut-off date these costs also would be non-eligible because these service providers would start activities prior to the 2nd cut-off date.

2) For the 2nd cut-off date it is determined that “any activity (and related costs)” that shall be eligible can only start after this date. The opener “and related costs” also includes in-kind contributions starting from this point in time which are eligible under the GRMF.

2) Re-submission of a previously awarded application In case of significant changes within the underlying studies, the strategy, the work plan and therefore of the costs for the project since the last application that was positively evaluated (more than 70 points) in a previous application round, can we send a new application for the 5th application round (AR 5), in order to include directly the new information instead of submitting further justifications for the changes in the previous application? No. It was decided by the RGCU that applications of previous application rounds (AR 1 to AR 4) cannot be re-submitted with new content for the same project in AR 5. Instead, developers with significant changes in the project (since the award letter) should submit comprehensive and detailed explanations for the changes in the projects. Furthermore, the developer must submit an updated work plan. It must be highlighted that the developer can include additional ESIA costs in the cost estimate that have been omitted in the initial application, but no other amendments / further costs can be added to the cost estimate.
3) Delivery of EoI documents May you advice us on the fastest means of sending EoI documents. We have DHL Services, is it advisable? In general, it is clearly the developer’s responsibility to ensure a complete submission of the EoI documents in time and according to the Request for EoI regulation (5th Edition, 2017), i.e. on or before 16:00 H Ethiopian Time on 12th December 2017.

Regarding the service provider for the delivery, the RGCU has already received various submissions by DHL in previous application rounds. However, the RGCU cannot make any recommendations and it is the developer’s responsibility to ensure the submission of the documents as stated above.

4) Conducting 2-meter field survey studies This 2-meter survey would be conducted at both a detailed and reconnaissance scale. In the area of the known thermal springs, sampling would occur at a loose 100-meter spacing, sufficient to delineate structure and stratigraphic controls to the springs. 2-meter surveys have also been used extensively to find thermal waters in areas without any surface geothermal expression. Since thermal water can travel laterally along the hydrologic gradient without making it to the surface, a reconnaissance sampling program would also be implemented in accessible areas within the concession area at an approximate 0.7 km spacing.

The GRMF facility supports surface studies to determine the optimal sites for exploration wells at geothermal prospects that have already been studied on a reconnaissance scale. A clear focus area or concept for the study within the concession has to be derived from earlier studies. Reconnaissance scale studies are therefore not eligible for funding. A soil study with a specific focus area which would help in identifying promising drilling sites is eligible for GRMF funding. The eligible and non-eligible activities are addressed in the Developer Manual, section 7.

5) Resource preliminary plan Developing a complex project like a geothermal power project and/or direct use, involving efforts from multiple entities at different phases and over several years, requires project planning, communication, and management to provide a roadmap that can guide the execution of the project to enhance the likelihood of a successful completion. The purpose of a Preliminary Resource Plan is to identify initial potential business models for developing power plant(s) and/or direct use applications.  Given the findings in Phase 1 & 2, the Preliminary Resource Plan will provide a recommended framework for which model(s) will be most likely pursued for project execution and help forge its initial strategy.  The plan will include next steps for the development of the geothermal concession. The GRMF facility supports project management costs needed for the project period. A preliminary resource plan to identify initial potential business model for developing power plant(s) and or direct use application sounds like a step which should rather be included in a drilling programme than in a surface study application. A drilling programme or a continuation premium may incorporate a feasibility study that has the explicit aim of securing financing for subsequent confirmation wells. As such, it is expected that a feasibility study would combine exploration drilling results and reservoir engineering together with market, regulatory and technical considerations. The eligible and non-eligible activities are addressed in the Developer Manual, section 7.
6) Submission of EoI forms & appendices When filling the submission form annex 3, should the information be inserted only in the space provided? The applicant should include all requested information in the space provided and fill the check boxes where necessary. It must be pointed out that the number of pages is not limited, and there therefore the text can be submitted on multiple pages, in case the space provided is not sufficient. In any case, all the requested information for the EoI must be submitted. Only the information that is included in the EoI forms and in the respective appendices can be considered for evaluation.
7) Submission of EoI forms & appendices For the appendices of annex 3, e.g. the templates like CV format, should they be dublicated then submitted separately? There are more CVs that do not fit in the space provided. Yes. For each  person of the key personnel one CV must be submitted. The Appendix 4 B (Key Personnel – CV Format) is a template for the CV and can be multiplied as required.