Management Services Contract for Electricité de Guinée (EDG)

REPUBLICOF GUINEA

Ministry of Energy & Hydraulics

INVITATION FOR EXPRESSIONS OF INTEREST

Management Services Contract for Electricit de Guine (EDG)

The Ministry of Energy and Hydraulics of Guinea (MEH) has been working closely with the World Bank Group and other development partners to invest in the areas of energy production, transmission and distribution. A 1.53 billion USD recovery plan for the sector has been developed. Projects worth 955 million USD are under development of which 853 million USD has already been committed for future projects in the sector. The Government of Guinea is committed to introducing private sector expertise and financing in the country's energy sector, which is a strategic priority of the Government. Forthis purpose, it has hired IFC, a member of the World Bank Group, as its lead advisor for structuring a private sector participation (PSP) transaction for the signing of a management contract for the state-owned electricity utility, Electricit de Guine (EDG). The objective is to gradually introduce greater private sector participation in the sector. The power system of Guinea consists of (i) an interconnected western network supplying the largest concentration of electricity consumers (including Conakry); (ii) a second relatively small interconnected network in the center of the country; and (iii) isolated centers scattered throughout the country. Guinea is known for having the largest hydropower potential in the West Africa region, with a capacity estimated at 6,000 MW. The Kalta hydropower plant with an installed capacity of 240 MW is under construction and scheduled to come online in late 2015.

The management services ("the Services") includes: (i) the implementation of a restructuring and recovery programof EDG and (ii) the improvement of its technical, commercial and financial performances over a period to be defined in the bid documents. Preference will be given to operators with a track-record of managementand investment in public utilities. Indeed, the Government of Guinea is interested to find a strategic partner willing to invest in EDG at a date to be mutually agreed. The private operator of EDG will be given fully delegated authority to run the utility as a vertically integrated electricity utility business and will be the solely authorized agent to administer its assets and implement its functions forthe duration of the contract. The services include implementation of key investment improvements through procurement of equipment and worksthat are separately financed by the government with support from donors. It is expected that the management services contract will be funded by the International Development Association (IDA).

The MEH now invites eligible firms that have the required qualifications and relevant experience to indicate their interest in providing the Services. Interested parties are invited to submit an expression of interest (EOI) in English or French detailing the following:

i. Short description of the company's activities and general power sector experience;

ii. Short description of the company's experience in the power business, in particular experience in managing, operating and investing in electricity distribution utilities;

iii. Copies of the two most recent audited financial statements; and

iv. Relevant reference projects of the company and its qualified personnel (individual CVs should not be submitted).

The EOIshould not exceed 50 pages, without taking into account audited financial statements. Bidders may associate with other firms to form a consortium to enhance their qualifications.

A Request for Proposal which sets out (i) the draft contract, (ii) the bid process and (iii) the bid evaluation criteria as well as (iv) instructions for bidders to submit their technical and financial proposals, willbe made available at a later stage.

Written Expressions of interest should be delivered to the address below (in person, or by mail, or by e-mail), with a copy to IFC, by April 29, 2014.

Minister of Energy & Hydraulics

Attn: Madame Kadiatou Bald Bah, Senior Advisor to Minister of Energy & Hydraulics

BP. 1217

Conakry, Guinea

Tel: (224) 30 45 25 89

E-mail: [email protected]

International FinanceCorporation (IFC)

Attn: Elan Cusiac-Barr, Senior Investment Officer

Rue Aim Cesaire X Impasse FN 18 Prolonge, Fann Rsidence, BP 3296

Dakar, Senegal

Tel: (221) 33 858 7100

E-mail: [email protected]