Technical Assistance for Hydropower

Contract: Technical assistance in the evaluation of EPC and PPP tenders for the construction of four hydro-electric power plants

Background

Madagascar possesses the fifth highest potential in hydropower in Africa. But its energy production is highly dependent on fossil fuels. Because of the still very low electrification rate (in 2013 only approx. 12% of the population), electricity plays a very minor role in the country’s total energy consumption. Instead, coal is used for energy production because it is a relatively cheap and widely available fuel.

The government of Madagascar therefore presses for a sustainable restructuring and expansion of the electricity supply on the Island.

Project

In 2015, the Ministry of Energy and Hydrocarbons (MEH) launched a limited international construction tender procedure calling for the submission of tenders for the development and construction of hydro-electrical power plants in Sahofika, Antetezambato, Ambodiroka and Volobe. The basis for the implementation of each power plant will be either a public private partnership (PPP) or an EPCM contract (engineering, procurement, contract management). The tender documents allowed tenderers a multitude of options and variants, which made the evaluation of the documents very complex.

By calling in GAUFF Engineering, the MEH contracted the necessary expertise and experience, as well as the technical and economic know-how, for evaluating the tenders submitted. The focus was on the examination of the following topics:

  • Hydrology
  • Geotechnoloy
  • Hydraulics
  • Machinery equipment
  • Electrification
  • Tender price and financing

Within one month, GAUFF Engineering was able to complete the complex and extensive documentation and prepare a final report. On this basis, the MEG could enter into contract negotiations with the eligible tenderers. By August 2017, all preliminary contracts for the four hydro-electric power plants had been signed.

Services

  • Compliance verification of the tenders submitted
  • Verification of tenderers’ qualification
  • Evaluation of technical tenders and of the associated financing
  • Assistance in the selection of contractors for the four power plants