olkaria ppp investor conference 140mw ppp geothermal ... · olkaria ppp investor conference 140mw...
Post on 13-Oct-2020
3 Views
Preview:
TRANSCRIPT
Olkaria PPP Investor Conference140MW PPP Geothermal Project27th November, 2019
Request for Qualifications Stage
PRESENTATION BY: REBECCA MAINO
MANAGING DIRECTOR & CEO, KenGen
Contents
Larger HeadlineGoes HerePellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Proin pharetra nonummy pede. Mauris et orci
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa
2
1. Sector Institutional Framework
2. Introduction to KenGen
3. Project Overview
4. Procurement process
5. Schedule
KENYA POWER SECTOR INSTITUTIONAL FRAMEWORK
TRANSMISSION
REGULATION
POLICY / GUIDANCE
DISTRIBUTION
IPPs
GENERATION / EXPLORATION
National Installed Capacity: 2,898MW
~62%installed
share
4
NATIONAL INSTALLED CAPACITY & GENERATION MIX
28.51%Hydro
29.29%Geo
27.88%Thermal
0.97%Cogentn
1.76%Solar
11.60%Wind
Installed Capacity (MW) October 2019
Hydro32.55%
Geothermal43.79%
Thermal11.29%
Cogeneration0.00%
Solar0.52%
Wind10.37%
Imports1.48%
Generation Mix 2018/19
Hydro Geothermal Thermal Cogeneration Solar Wind Total
826.2MW 848.7MW 808.1MW 28.0MW 50.9MW 336.1MW 2,898.0
Includes Off-grids
5
INSTALLED CAPACITY – KEY PLAYERS
KenGen 62%
REREC2%
IPPs36%
KenGen REREC IPPS Total-MW
1795.6MW 50.0MW 1052.4MW 2898.0MW
6
KenGen: Overview- who we are
OUR
STRENGTH:
• We are now in our 65th Anniversary
• 70% Govt. (30% public: 6.594 bln shares issued)
• Our Motto: ENERGY FOR THE NATION.
1,795 MW (~75% sales market share)
Mission: …to efficiently generate competitively priced
electric energy…
Vision: … to be the market leader in the provision of
reliable, safe, quality and competitively priced electric
energy…
Values: … Team Spirit; Integrity; Professionalism &
Safety
Skilled Staff: ~2,500
7
KenGen: Overview- Our Installed Capacity
50%
46%
33% 39%
15% 14%
690MW
818MW
100%
2018
Wind
2019
Hydro
2% 1%
Geothermal
Diesel & Gas
KenGen Energy Mix
with Olkaria V
new addition
253MW
25.5MW
8
2014
1,2451,187 1,213
1,6301,617 1,631
2018
1,009
2013
2019
2010
1,6312011
2012
2015
2016
2017
1,796
1,187
2009
1,409
+165.4 MW expected
later this year (Olkaria
V)MW
KenGen: Overview-Our Consistent growth
9
KenGen: Overview-our Asset Base-Kes Billion
103
151 161 163189
250
343367 377 379
2014
2010
2009
2013
2016
2018
2011
2012
2015
2017
+266%
16%
Balance Sheet as at 31st Dec. 2018
10
GOOD-TO-GREAT JOURNEY
Good
Company
Great
Company
Time
10 years+ (> 2025)
Horizon III
Explore expansion
opportunities
• Drive expansion
beyond Kenya
• Establish a strong
African footprint
• Leader in technology
and innovation
Horizon I
2008-12
Horizon II
2016-25
Stabilise power
situation in Kenya
• Delivered 325+MW
• Increased RoE to
12.5%
• Drilled 150+
geothermal wells
Revamped plan
Create sustainable
power growth in Kenya
• Deliver 2,500MW
• Create value for our
shareholders
• Lower tariffs
• Diversify business
• Build capabilities
for our future
Base Plan
2013-15
Delivered
375+MW
~900MW 1631M
W
Scaling up!
11
KenGen: ISO CERTIFIED COMPANY
Good-to-Great
PIBO / Rights Issue
Pilot Wellheads
Innovative Finance
Geothermal Spa
280MW plant
Energy Park
(planned)
83MW of early
generation; prudent
geothermal
reservoir
management and
sustainability
SPV / PPP; profit
retention; reducing
reliance on
Government
support
Big Four agenda
driver;
competitively
priced electricity,
steam, water, etc.
to industries /
manufacturers
2 conventional
plants each with
twin 70MW units;
largest single
geothermal project
globally
Largest in
Africa; prime
tourist
attraction
KShs. 25B Public
Infrastructure Bond (2009);
KShs. 26B Rights Issue (2016)
GOOD-TO-GREAT JOURNEY
12
DRILLING PERFORMANCE- WE DO THIS VERY WELL
13
GEOTHERMAL – ……AND DEVELOPMENT AND OPERATION TOO!
OUR GEOTHERMAL GROWTH PATH
14
GEOTHERMAL – ……WE KEEP IMPROVING
OUR GEOTHERMAL EXPERTISE
CENTRE OF EXCELLENCE
POWER PLANT OPERATIONS &
MAINTENANCE SERVICES
WELL TESTING SERVICES
DEEP DRILLING SERVICES
GEOTECHNICAL SERVICES
• Ethiopia, • Djibouti
• Rwanda • Sudan
15
3653
1948
1868
1347
1005
951
944
849
755
549
0 500 1000 1500 2000 2500 3000 3500 4000
United States
Indonesia
Philiphines
Turkey
New zealand
Mexico
Italy
Kenya
Iceland
Japan
GEOTHERMAL – AND WE ARE ON THE GLOBAL MAP
16
THE OLKARIA PPP PROJECT
17
GEOTHERMAL POTENTIAL - KENYA
Oo
2oS
38oE36oE
North Island
L. Turkana
Central Island
South Island
Barrier Volcano
Emuruangogolak
Silale
Paka KKKKKKEEEEEENNNNNNYYYYYYAAAAAA
Nyambeni
Mt. Kenya
Mozambiquemetamorphic
belt
Longonot
Nairobi
Olorgesaille
Shombole
ChyuluOl'Doinyo Lengai
0 50 100 150
Kilometers
Basalt-Trachyte-Rhyolite centers
Nephelinitic centers
Alkaline centers
Lakes
Rift Faults
Kilimanjaro
TANZANIA
Cenozoicvolcanics
Mesozoicsediments
Suswa
Olkaria
Eburru
Menengai
Ol'Esakut
UGANDA
Huri
Korosi
Kisumu
ETHIOPIA4oN
38oE
Mt. Elgon
L. Magadi
Homa Hills
Geothermal Prospects
Geothermal Fields
L. Naivasha
Arus-Bogoria
L. Baringo
Namarunu
Rift Region Potential (MW)Central Rift
Menengai 1,600MW
Eburru 250MW
Arus Bogoria 400MW
2,250MW
South Rift
Olkaria 2,000MW
Longonot 750MW
Suswa 600MW
Lake Magadi 100MW
3,450MW
North Rift
Lake Baringo 200MW
Korosi 450MW
Paka 500MW
Silali 1,200MW
Emuruangogolak 650MW
Namarunu 400MW
Barrier 450MW
3,850MW
Nyanza
Homa hills 100MW
Akira 350MW
450MW
Total Potential 10,000MW
18
OLKARIA PPP PROJECT OVERVIEW
Olkaria Geothermal Field
• The Olkaria geothermal field is in Naivasha,
approximately 120 km northwest of Nairobi
• The entire Olkaria volcanic field covers an area of
approximately 240 km2 and is situated at an
elevation ranging between 1,900 and 2,200 masl.
• The project wells have been pre-drilled to support
the target plant capacity plus a buffer
Olkaria PPP Project Site
• The project area is in the northeastern sector of
the Olkaria geothermal field
• The power plant location is next to the existing
Olkaria II power station
• Grid connection via a ~3.75km line to the Olkaria 1
AU
• The land required for the Project is leased by
KenGen from the Kenya Wildlife Service and will
be made available to the Project Company via
sub-lease
19
OUR PPP JOURNEY
2012
Project approved as a National Priority Project for development as PPP
2015
Procurement of the Transaction Advisors
2019 April
Approval of the Project Feasibility Study
November
2019 Commencement of the Procurement for a developer –Issue of the RFQ
Our Advisors
20
OLKARIA PPP PROJECT
Opportunity to enter a growing electricity market in one of the fastest growing economies in Sub-
Saharan Africa1
Strong development partner in KenGen (25% equity investment)2
Build-Own-Operate-Transfer (BOOT) opportunity 3
Location adjacent to proven geothermal resource and available interconnection4
KenGen Providing Project site, equity, and long term steam supply5
Long-term PPA providing stable revenue stream6
Positive social and environmental impact7
Opportunity to enter a dynamic and growing energy sector with a greenfield
renewable power project supported by a proven geothermal resource and strong project partner
2121
Olkaria Project Overview
First PPP project developed by KenGen under the PPP Act 2013
KenGen owns and operates 5 geothermal plants and 14 wellhead units with a total combined capacity of about 685MW. Construction of a 70MW unit is in progress
Size
PPP type
Procurement
Offtaker
PPA duration
~140 MW
Build, Own, Operate, Transfer (BOOT)
Step 1 Request for QualificationStep 2 Request for Proposal
Kenya Power
25 years, and transfer to KenGen at peppercorn at the end of the PPA term
Steam Supplier KenGen (25 years)
Location 120 km northwest of Nairobi
COD date ~3 years from financial close
OwnershipSpecial Purpose Vehicle (SPV)-25% shareholding by KenGen
22
Design, Finance, Construction, Operation and Maintenance of
140MW Geothermal Power Project
Design, Finance, Construction, Operation and Maintenance of above
ground steam gathering system(O&M contracted to KenGen)
Design, Finance, Construction, Operation and Maintenance of about
3.75km transmission line from the Project to Olkaria I Unit 4&5
substation and the associated infrastructure(Transferred to
KP/KETRACO upon commissioning)
Purchase of steam from KenGen via a 25 steam sale agreement
Sale of electricity to the Kenya Power via a 25 year Power Purchase
Agreement
Transfer of the plant back to KenGen after 25 years at peppercorn
The Olkaria PPP Project Description
22
2323
PPP PROJECT COMPONENTS/SHARE OF RESPONSIBILITY
BETWEEN KenGen-PRIVATE SECTOR
Power Plant Interconnection SAGS Wells & wells Civil
Works
Finance SPV SPV SPV KenGen
Construct SPV SPV SPV KenGen
Operate SPV KPLC/KETRACO KenGen KenGen
24
PPP Contract Structure: Steam Supply Agreement + PPA
24
SPV
Lenders
Sponsors
Shareholder’s Agreements
Loan Agreements
Project & Steam Supply Agreement
Power Purchase Agreement
Structure is consistent with previous IPPs and market expectations.
Tra
nsf
er to
Ke
nG
en
a
t e
nd
of
PP
A
SPV scope does not include steamfield assets.
25
FLUID RECOVERY/RESERVOIR SUSTAINABILITY CHALLENGE
•We need to ensure sustainability of the reservoir by
maximizing the geothermal fluid recovery and re-
injection rate
•Current fluid recovery rate is between 40%-65% using
evaporative wet cooling towers
•100% fluid recovery is desired around
•We believe it is possible, and the solutions
many
Can the private
sector come up
with solutions
please?
26
PROCUREMENT SCHEDULE
• Prospective bidders will be qualified through the RFQ process
• Investors Conference to be held on November 27, 2019
• RFQ submission deadline: January 22, 2020
• Deadline for bidder clarification questions: [January 7, 2020]
Phase 1: Request for Qualification
• Firms / consortia qualified through the RFQ process will be invited to submit
proposals pursuant to a Request for Proposals to be issued by KenGen
• A mandatory pre-bid conference and site visit will be held approximately 6 weeks
after issuance of the RFP to qualified bidders
• Qualified bidders shall be given an opportunity to send written questions or
clarification requests to KenGen up until a deadline that will be no later than 30
Days prior to the bid submission deadline set forth in the RFP.
Phase 2: Request for Proposal
27
ESTIMATED TENDER PROCESS SCHEDULE
Procurement Process Stage Estimated Date
RFQ Announcement November 2019
RFQ Issuance November 2019
RFQ Submission Deadline December 2019
Qualified Bidder Announcement January 2019
RFP Issuance February 2019
Pre-Bid Conference March 2020
RFP Proposal Deadline June 2020
Selection of Preferred Bidder August 2020
Finalization of Project Agreements November 2020
28
THANK YOU!
top related