Minimum Subsidy Tender for Interconnected Mini-grids — Rural Electrification Agency of Nigeria

Specific Procurement Notice – Initial Selection Document (ISD)

Invitation for Initial Selection

Minimum Subsidy Tender (MST) for Utility Enabled Projects – Interconnected Mini-grids/ Embedded Generation/ Franchising

Employer: Rural Electrification Agency of Nigeria

Project: Distributed Access to Renewable Energy Scale-Up (DARES) project

Project title: Minimum Subsidy Tender (MST) for Utility Enabled Projects – Interconnected Mini-grids/ Embedded Generation/ Franchising

Country: Nigeria

Loan No. /Credit No. / Grant No.: P179687

ISD No: REA-NEP/GO/IS/185/2024

Issued on: 4 November 2024

• The Federal Government of Nigeria (FGN) has received financing from the World Bank toward the implementation of the DARES project and intends to apply part of the proceeds toward delivery of utility-enabled generation projects – interconnected mini-grids and embedded generation in over 100 underserved locations across Nigeria collaborating with the private sector via a public sector catalytic grant expected to crowd-in private investments for these projects. The initial phase of implementation will be focused on 40 project sites ( See details in Section VII) in the franchise areas of Seven (7) electricity distribution companies in Nigeria. Note to prospective bidders: These 40 sites will be grouped into lots during the Request for Proposals stage of the procurement process.

• The Rural Electrification Agency of Nigeria the project implementing agency of the FGN intends to initially select Applicants that will compete under a minimum subsidy tender process that is expected to produce the most competitive applicants that will sign a grant agreement with REA, raise private sector financing, and build these projects under a result based finance (RBF) framework that will deliver public sector grant to the applicant in two key milestones: (i) On connecting the constructed DER asset to the utility grid (ii) On achieving a pre-determined level of hours of supply and capacity utilization factor over a monitoring period of six months. This monitoring period is to begin not more than six months after commercial operations but can be initiated earlier by the applicant. It is expected that the Request for Proposals will be made in January 2025.

• Initial Selection will be conducted through the procedures as specified in the World Bank’s Procurement Regulations for IPF Borrowers (“Procurement Regulations”) dated September, 2023, fifth edition, and is open to all eligible Applicants as defined in the Procurement Regulations.

• Interested eligible Applicants may obtain further information from the Rural Electrification Agency of Nigeria – Nigeria Electrification Project (NEP) office at the address 26, Babatope Ajakaiye Crescent Jahi District, FCT Abuja Nigeria during office hours 0800 to 1700 hours or via REA website. A complete set of Initial Selection documents in English may be obtained by interested Applicants via the REA website or at the office address above.

• Applications for Initial Selection should be submitted via the Odyssey platform by 12pm WAT on 16th December 2024. Late applications may be rejected.

• By submitting applications in response to this ISD, Applicants are agreeing that they will not under any circumstances directly contact the distribution companies or the communities related to these projects. Any breach of this may result in disqualification from the procurement process.

Head, Nigeria Electrification Project – Rural Electrification Agency of Nigeria

Engr. Tunde Seriki – Procurement Specialist

26 Babatope Ajakaiye Crescent Jahi District Abuja – Nigeria

+2348033252544

[email protected]