Lagos State Invites Application for Gas-Fired Independent Power Plants

Lagos State Government — Ministry of Energy and Mineral Resources (MEMR) & Office of Public-Private Partnerships (OPPP) calls for Expressions of Interest (EOI) for selecting preferred bidders to establish gas-fired power plants for the clean Lagos electricity market.

1.0 Background

Lagos State is Nigeria’s biggest city and Africa’s most populated urban area. With over 20 million residents, Lagos stands as the largest financial and economic center in Nigeria. Due to this vast population and rapid growth, Lagos faces several energy challenges. The national power grid struggles to provide enough energy to meet the State’s demand, which has created a large energy shortage.

Currently, Lagos needs more than 6 gigawatts (GW) of power, but at peak times, only less than 2 GW is available. To cover this shortage, Lagos State plans to set up four different hubs that will have gas-fired power plants. Each hub will generate power to help meet the State’s high demand. These power plants will be located near existing power distribution substations in the area. The Ministry of Energy and Mineral Resources (MEMR) and the Office of Public-Private Partnerships (OPPP), along with other development partners, will work on this project.

This project will support the Clean Lagos Electricity Market (CLEM), a power initiative that focuses on creating clean and reliable electricity. Each of the four hubs aims to produce at least 500 megawatts (MW) of power. Each company joining this project will be required to generate at least 100 MW at one of these hubs. Therefore, the MEMR and OPPP invite companies experienced in gas-fired power generation to submit their applications and show interest in this power project.

Project Scope

This project requires companies to arrange and source all financing for the plant(s). These finances will be based on a Power Purchase Agreement (PPA) with the Clean Lagos Electricity Market.

The work includes, but is not limited to:

• Engineering, Procurement, and Construction (EPC) of the plant(s).
• Testing and commissioning of the plant(s) to meet grid-specified performance standards.
• Operating and maintaining the plant(s) after commissioning.
• Sourcing and ensuring a consistent supply of fuel.
• Generating electricity of at least 100 MW at each designated site within the Clean Lagos Electricity Market.

2.0 Requirements for Interested Companies

Companies or groups of companies (consortiums) are welcome to apply. If applying as a consortium, companies must submit the information outlined in paragraph 3.2 and clearly designate one company as the Lead Company. This Lead Company will handle all communications with the Project Delivery Team and manage the consortium’s performance.

3.0 Pre-Qualification

To be considered for the project, companies must submit an Expression of Interest (EOI) containing the following information. All applicants are required to register with the Lagos State Public Procurement Agency at lagosppa.gov.ng before submitting their documents.

3.1 Legal Status and Profile

Applicants must provide:

• Full name, contact person, postal address, contact address, phone, and email of each company.
• A company profile showing details of management, including professional certifications, licenses, and CVs.
• Company registration documents, including the Certificate of Incorporation, certified copies of the Memorandum and Articles of Association, a CAC status report, details of directors, and share allotment (CAC 7 and CAC 2) or equivalent documents.
• Details of ownership structure, including names of shareholders and percentage shareholding.
• Proof of registration with the Lagos State Public Procurement Agency.
• Corporate Tax Clearance Certificate from the Federal Inland Revenue Service (FIRS) and personal income tax certificates for at least two directors from the Lagos State Internal Revenue Service (LIRS) for the years 2021, 2022, and 2023.
• Confirmation of annual filings with the Corporate Affairs Commission to show the company or consortium’s active status.
• An affidavit stating whether any officer or employee of LASG, MEMR, OPPP, or any of their agencies is a former or current director, shareholder, or has any financial interest in the applicant’s company/consortium. This affidavit should also confirm that all information provided in the bid is correct.
• Any foreign documents must be translated into English and certified by an official authority.

3.2 Relevant Experience

Applicants must have experience in Independent Power Projects within the past 10 years, totaling a capacity of at least 100 MW. One of these projects must have a capacity of at least 10 MW as an EPC. For other projects, applicants must have held at least one of these roles:

• Independent Power Producer.
• Engineering, Procurement, and Construction (EPC) Contractor.
• Operations & Management (O&M) Contractor.

Applicants must also provide proof of experience with:

• Structuring and closing Public-Private Partnership (PPP) transactions.
• Record of PPP Grid Connected Power Projects.
• Roles in at least three PPP Grid Connected Power or related transactions in emerging markets over the last 10 years, with one project completed in the last four years.
• A team with relevant skills and qualifications.
• Reference contact details for previous projects.
• Experience working in Nigeria or sub-Saharan Africa.

3.3 Financial Capability

Applicants must submit:

• The most recent three-year audited financial statements (2021, 2022, 2023) and management accounts for January to September 2024.
• Proof of PAYE remittance for Nigerian companies/consortiums.
• Proof of payment of a N250,000 Expression of Interest fee using Agency Code 75000, Revenue Code 33445 at a bank collecting revenue for LASG. Payment should be made through the company’s or consortium’s Payer ID provided by LIRS.
• Proof of financial capacity, showing access to resources or funding from a reliable bank.

Submission of Bids

All Expressions of Interest (EOI) should be submitted electronically on the Lagos State Public Procurement Agency’s e-procurement platform (lagosppa.gov.ng) by 17:00 West African Time (GMT+) on Friday, November 22, 2024. Applicants must register on the platform before submitting their bids.

Please note:

• Companies are responsible for all expenses involved in submitting their EOIs.
• This EOI invitation is only for pre-selection purposes. It is not a contract, nor is it a promise or commitment to proceed with companies that respond.
• Submitting an EOI does not entitle the applicant to make any claim against LASG/MEMR or OPPP.

This project aims to support Lagos in creating a reliable and sustainable power supply system. By working together with qualified partners, Lagos State hopes to tackle its energy shortage and meet the growing needs of its residents.

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