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TERMS OF REFERENCE<br />

GOVERNMENT OF JAMAICA<br />

PETROLEUM CORPORATION OF JAMAICA’S<br />

CENTRE OF EXCELLENCE FOR RENEWABLE ENERGY<br />

TOR # MEMPCJ201006037RE<br />

Country:<br />

Jamaica<br />

Project Name:<br />

Energy Security and Efficiency Enhancement Project<br />

Loan #: P112780<br />

Title <strong>of</strong> Consulting Service:<br />

Hydropower Feasibility Studies for Five (5) Selected Sites in Jamaica<br />

PETROLEUM CORPORATION OF JAMAICA<br />

CENTRE OF EXCELLENCE FOR RENEWABLE ENERGY<br />

36 Trafalgar Road, Kingston 10<br />

July 2011<br />

1


Table <strong>of</strong> Contents<br />

1 BACKGROUND ......................................................................................................... 4<br />

2 COUNTRY BACKGROUND ..................................................................................... 4<br />

2.1 THE IMPLEMENTING AGENCY ........................................................................ 4<br />

2.2 JAMAICA’S ECONOMY & POWER SECTOR .................................................... 6<br />

2.3 THE COUNTRY’S ENERGY MIX ........................................................................ 6<br />

2.4 CARBON EMISSIONS CONSIDERATIONS ....................................................... 8<br />

2.5 JAMAICA’S HYDROPOWER DEVELOPMENT OPPORTUNITIES ................. 8<br />

3 SCOPE OF THE CONSULTING ASSIGNMENT................................................... 11<br />

3.1 GENERAL .......................................................................................................... 11<br />

3.2 MAIN OBJECTIVE OF THE STUDIES 11<br />

3.3 PHASE I: SCOPE OF THE CONSULTING ASSIGNMENT ............................. 13<br />

3.4 PHASE II: SCOPE OF THE CONSULTING ASSIGNMENTI........................... 14<br />

3.5 PHASE I KEY ACTIVITIES................................................................................ 15<br />

3.6 PHASE II KEY ACTIVITIES .............................................................................. 17<br />

4 CONSULTING TEAM ............................................................................................. 19<br />

4.1 GENERAL .......................................................................................................... 19<br />

4.2 INDICATIVE EXPERTISE REQUIRED ............................................................ 19<br />

5 DURATION .................................................................................................................. 23<br />

6 FACILITIES AND ARRANGEMENTS .................................................................. 23<br />

7 DELIVERABLES ..................................................................................................... 24<br />

2


ABBREVIATIONS AND ACRONYMS<br />

CERE<br />

GoJ<br />

IBRD<br />

IDPs<br />

JPS<br />

MEM<br />

OUR<br />

PCJ<br />

PPP<br />

RE<br />

RFP<br />

TA<br />

TOR<br />

WB<br />

Centre <strong>of</strong> Excellence for Renewable Energy<br />

Government <strong>of</strong> Jamaica<br />

International Bank for Reconstruction and Development<br />

International Development Partners<br />

Jamaica Public Service<br />

Ministry <strong>of</strong> Energy and Mining<br />

Office <strong>of</strong> Utilities Regulation<br />

<strong>Petroleum</strong> Corporation <strong>of</strong> Jamaica<br />

Public Private Partnership<br />

Renewable Energy<br />

Request for Proposal<br />

Technical Assistance<br />

Terms <strong>of</strong> Reference<br />

World Bank<br />

3


TERMS OF REFERENCE<br />

For<br />

Hydropower Feasibility Studies for Five (5) Selected Sites in Jamaica<br />

1 BACKGROUND<br />

The International Bank for Reconstruction and Development (IBRD, the World Bank)<br />

has committed support through the Jamaica’s Energy Security and Efficiency<br />

Enhancement (ESEE) Project (“The Project”) (P112780) to:<br />

<br />

<br />

<br />

Increase energy efficiency and security,<br />

Contribute to reduced energy costs, and<br />

Improve economic competitiveness.<br />

The ESEE Project shall support the implementation <strong>of</strong> the National Energy Policy by:<br />

a. Promoting private sec<strong>tor</strong> investment in the energy sec<strong>tor</strong> through updating the<br />

regula<strong>tor</strong>y framework, preparing investment decisions;<br />

b. Increasing the contribution <strong>of</strong> renewable energies in electricity generation;<br />

c. Improving energy efficiency in key areas;<br />

d. Effecting diversification through the development <strong>of</strong> the gas strategy; and<br />

e. Strengthening institutions and capacities in energy policy and strategy<br />

formulation, investment planning and the implementation <strong>of</strong> sec<strong>tor</strong> regulations.<br />

The Jamaica Energy Security and Efficiency Enhancement Project shall support the<br />

completion <strong>of</strong> feasibility studies for small scale hydropower projects initially at five (5)<br />

river sites islandwide.<br />

2 COUNTRY BACKGROUND<br />

2.1 THE IMPLEMENTING AGENCY<br />

The <strong>Petroleum</strong> Corporation <strong>of</strong> Jamaica (PCJ) is the implementing agency <strong>of</strong> the Ministry<br />

<strong>of</strong> Energy and Mining (MEM) that is charged with the responsibility <strong>of</strong> managing the<br />

country’s energy needs. Jamaica’s National Energy Policy (2009-2030) was adopted in<br />

November 2009 to support Jamaica’s Long Term National Development Plan “Vision<br />

4


2030”. The National Energy Policy (2009 – 2030) promotes “(vi) an energy sec<strong>tor</strong> that is<br />

environmentally sustainable, with significantly increased use <strong>of</strong> economically viable<br />

renewable energy sources, while fully protecting the environment, as well as (viii) the<br />

responsible and efficient use <strong>of</strong> this vital commodity”.<br />

Jamaica’s National Energy Policy (2009 – 2030) has established a goal <strong>of</strong> 12.5%<br />

renewable energy by 2015. The MEM is the focal point for the breakthrough <strong>of</strong><br />

renewable energies, with primary responsibility for policies, and regulations that will<br />

impact Government <strong>of</strong> Jamaica (GoJ) Ministries and Agencies.<br />

The PCJ is a statu<strong>tor</strong>y body created by the <strong>Petroleum</strong> Act <strong>of</strong> 1979. The Act was further<br />

amended in 2005 based on the Extension <strong>of</strong> Function Order. The <strong>Petroleum</strong> Act gives<br />

the PCJ the “exclusive rights to:<br />

(a) Develop and manage petroleum resources either alone or in<br />

association with third party contrac<strong>tor</strong>s;<br />

(b) Enter into agreement and arrangements (such as production sharing<br />

agreements) with contrac<strong>tor</strong>s to undertake the exploration,<br />

development and management <strong>of</strong> petroleum resources;<br />

(c) Either alone or in association with contrac<strong>tor</strong>s, to acquire, construct<br />

and operate refining or processing facilities, marketing facilities,<br />

pipeline facilities, tankers, trucks and other facilities for s<strong>tor</strong>age or<br />

distribution <strong>of</strong> petroleum or petroleum products; and<br />

(d) Either alone or in association with contrac<strong>tor</strong>s, to sell and otherwise<br />

deal in petroleum and petroleum products.”<br />

The Extension <strong>of</strong> Functions Order provides the PCJ with “the exclusive right to explore<br />

and develop in addition to petroleum, all renewable and other energy resources existing<br />

in Jamaica.” The PCJ established the Centre <strong>of</strong> Excellence for Renewable Energy<br />

(CERE) in November 2006 to ensure the diversification <strong>of</strong> Jamaica’s energy mix by<br />

securing renewable energy investments.<br />

5


2.2 JAMAICA’S ECONOMY & POWER SECTOR<br />

Jamaica is the largest English-speaking Caribbean island with a population <strong>of</strong> 2.82<br />

million. The population density is 656 people per square mile, and the average annual<br />

population growth rate is 0.7% per annum. The average life expectancy is 75 years old.<br />

The poverty headcount ratio is about 10%.<br />

Jamaica has an area <strong>of</strong> 10,990 square kilometres. The country’s per capita Gross National<br />

Income is US$4,870 (FY 2010). The unemployment rate at June 2009 was 11.4%. In<br />

February 2010, Jamaica and the International Monetary Fund (IMF) signed a stand-by<br />

facility agreement for US$1.27 billion to support structural reforms and dampen the<br />

effects <strong>of</strong> the global economic recession on the economy.<br />

Jamaica’s electricity sec<strong>tor</strong> is regulated by the Office <strong>of</strong> Utilities Regulation (OUR). The<br />

addition <strong>of</strong> generation services is subject to competition for capacity additions which are<br />

greater than 15 MW. The transmission and distribution services are provided through a<br />

monopoly license which is held by the Jamaica Public Service Company (JPS) Ltd. JPS<br />

is 80% owned by Marubeni Caribbean Holdings Inc. with the GoJ owning most <strong>of</strong> the<br />

remaining shares, and a small group <strong>of</strong> shareholder maintaining less than 1% stake.<br />

Independent power producers including Wigton Wind Farm Ltd provide about 36% <strong>of</strong><br />

the island’s generating needs. The bauxite companies and sugar sec<strong>tor</strong> own selfgeneration<br />

facilities. JPS serves about 590,000 customers and operates four power plants<br />

and eight (8) hydropower schemes. The nation’s peak demand is about 840 MW.<br />

2.3 THE COUNTRY’S ENERGY MIX<br />

Jamaica’s energy mix remains dependent on the use <strong>of</strong> imported fossil/petroleum fuels<br />

which account for 91% <strong>of</strong> the energy mix, while renewable resources account for 9%.<br />

Table 1.0 below indicates the petroleum import levels over the past five years, and the<br />

utilization by sec<strong>tor</strong>.<br />

6


Table 1. National <strong>Petroleum</strong> Consumption by Activity<br />

His<strong>tor</strong>y<br />

Base<br />

INPUTS 2005 2006 2007 2008 2009<br />

Total Fuel Imports (M 27.33 29.16 29.09 27.80 22.10<br />

BOE)<br />

For Electricity 6.55 6.39 6.65 6.27 6.66<br />

For Bauxite Industry 9.80 9.55 8.81 9.39 3.39<br />

For Road and Rail 6.25 6.37 6.08 5.84 5.90<br />

Transportation<br />

Other (shipping, aviation 4.73 6.85 7.55 6.30 6.15<br />

and other manufacturing)<br />

Growth -- 6.7% -0.2% -4.4% -20.5%<br />

Cost <strong>of</strong> Fuel Imports (M $1,397 $1,837 $2,007 $2,706 $1,350<br />

US$)<br />

Composite overall cost per $55.51 $59.77 $61.64 $97.34 $61.09<br />

barrel <strong>of</strong> crude<br />

Source: Ministry <strong>of</strong> Energy and Mining Oil Import Statistics 2009<br />

Jamaica’s renewable energy sources include renewable fuels and renewable electricity.<br />

Renewable fuels account for sixty seven percent (67%) <strong>of</strong> the total renewable energy<br />

share. The draft bi<strong>of</strong>uels policy is designed to address the legislative and regula<strong>tor</strong>y<br />

framework for this sec<strong>tor</strong>. The renewable electricity sec<strong>tor</strong> includes a mix <strong>of</strong> solar,<br />

wind, biomass and hydropower sources. The draft Renewable Energy Policy and<br />

Energy from Waste Policy are designed to address sustainable developments.<br />

Table 2. Renewable Energy Inputs (in Barrels <strong>of</strong> Oil Equivalents)<br />

Categories Sources 2005 2009<br />

Hydropower generation JPS 105,104 86,789<br />

Bagasse for fac<strong>tor</strong>ies & cogeneration SIRI, CERE 529,553 447,502<br />

Solar energy generation APS, Isratech 9,618 27,714<br />

7


Wind energy generation WWFL & JPS 34,532 36,804<br />

Fuel woods – includes local coal and<br />

charcoal use<br />

Bi<strong>of</strong>uels Use for Transport<br />

-Bioethanol & Biodiesel<br />

MEM 1,001,000 1,058,000<br />

Petrojam 0 204,437<br />

TOTAL (Boe) 1,679,807 1,861,246<br />

2.4 CARBON EMISSIONS CONSIDERATIONS<br />

The increase in climate change events has been linked to the effects <strong>of</strong> fossil fuel driven<br />

industrialization.<br />

The rise in global temperatures, combined with severe weather<br />

conditions, floods and droughts are forcing policy makers to consider reducing their<br />

carbon footprints. The Clean Development Mechanism (CDM) provides incentives to<br />

countries that take steps to reduce their emission levels, under the guidelines <strong>of</strong> the<br />

United Nations Framework Convention on Climate Change (UNFCCC).<br />

The Office <strong>of</strong> Disaster Preparedness and Emergency Management (ODPEM) has<br />

indicated that the impact <strong>of</strong> natural disasters on Jamaica over the past decade has resulted<br />

in total damage estimates <strong>of</strong> about J$87,481 Million (US$994 Million), an annual average<br />

<strong>of</strong> J$9,720 Million (US$110 Million). Most <strong>of</strong> these costs relate to hurricanes (e.g.<br />

Charley, Ivan, Dennis, Emily, Wilma and Dean), while other costs relate to severe rain<br />

s<strong>tor</strong>ms and flooding.<br />

The Ministry <strong>of</strong> Energy and Mining has drafted a Carbon Trading Policy which outlines<br />

the framework for project development. The PCJ has initiated a hydropower programme<br />

<strong>of</strong> activities for registration with the CDM Board, through the executing agency, MEM.<br />

2.5 JAMAICA’S HYDROPOWER DEVELOPMENT OPPORTUNITIES<br />

Jamaica has over one hundred (100) rivers, several <strong>of</strong> which are suitable for hydropower<br />

development. The energy from eight existing hydropower generating run-<strong>of</strong>-the-river<br />

plants, which are currently owned and operated by JPS, provides about 140,000 MWh <strong>of</strong><br />

8


ase load energy to the national electricity grid, representing approximately 87,000<br />

barrels <strong>of</strong> oil equivalent import savings. At US100 per barrel <strong>of</strong> oil, the estimated annual<br />

oil import cost savings is US$ 8.7 million.<br />

Hydropower currently accounts for about seventy percent (70%) <strong>of</strong> the total renewable<br />

energy inputs to the electricity generated; or 3.3% <strong>of</strong> total grid connected electricity.<br />

Other RE sources include: fuel woods, bagasse cogeneration in the sugar fac<strong>tor</strong>ies,<br />

ethanol in gasoline (E10), wind and solar energy resources. Jamaica’s total installed<br />

hydropower capacity is outlined in Table 3 below:<br />

Table 3. Installed Hydropower Capacity in Jamaica<br />

Location Year <strong>of</strong> Commission Capacity<br />

(MW)<br />

Upper White River 1945 3.8<br />

Lower White River 1952 4.9<br />

Roaring River 1949 3.8<br />

Rio Bueno A 1949 2.5<br />

Constant Spring 1989 0.8<br />

Maggoty Falls* 1966 6.3<br />

Rio Bueno 1989 1.1<br />

Rams Horn ** 1988 0.6<br />

Total 24.8<br />

*To be rehabilitated and commissioned.<br />

** Currently under review for rehabilitation- out <strong>of</strong> service<br />

9


Chart 1. Existing Hydropower Schemes Owned by JPS<br />

In February 2003, JPS completed a comprehensive rehabilitation <strong>of</strong> its hydropower<br />

plants, in partnership with the German Government through its development bank KfW<br />

at a cost <strong>of</strong> US$27 million. In 2009 the Constant Spring hydropower plant was<br />

rehabilitated and put back into service at a cost <strong>of</strong> US$1 million.<br />

The PCJ has updated hydropower studies for Laughlands, Great River and Back Rio<br />

Grande over the past two years (2008 – 2010) to indicate the energy and investment<br />

potentials. The schemes have capacity potentials ranging from 1 MW to 8 MW. The<br />

goal <strong>of</strong> PCJ’s hydropower development initiative is to stimulate productive uses <strong>of</strong><br />

hydroelectric power for poverty alleviation, environmental sustainability and economic<br />

growth. The objectives are to:<br />

Mobilize inves<strong>tor</strong>s with proven experience and financing capabilities,<br />

Create local employment and development opportunities in rural communities,<br />

Leverage the Clean Development Mechanism<br />

10


3 SCOPE OF THE CONSULTING ASSIGNMENT<br />

3.1 GENERAL<br />

The <strong>Petroleum</strong> Corporation <strong>of</strong> Jamaica (PCJ) has decided to conduct hydropower feasibility<br />

studies for five (5) additional rivers with a view to mobilizing private sec<strong>tor</strong> investments for<br />

those projects which are deemed cost-effective. Run <strong>of</strong> the river hydropower schemes are<br />

the favoured approach but other designs (including pumped water s<strong>tor</strong>age systems) may also<br />

be considered.<br />

The feasibility studies shall in particular assess the technical, social and environmental,<br />

economic and financial fac<strong>tor</strong>s.<br />

A Consulting Firm shall be selected to carry out studies for the following five sites whose<br />

general locations are shown in Chart 2:<br />

Table 4. Feasibility Study Sites<br />

River<br />

Mahogany Vale<br />

Negro<br />

Rio Cobre<br />

Martha Brae<br />

Morgan’s<br />

Parish<br />

St. Thomas<br />

St. Thomas<br />

St. Catherine<br />

Trelawny<br />

Westmoreland<br />

11


Chart 2. Location <strong>of</strong> Installed, Proposed and Potential Hydro Power Sites in<br />

Jamaica<br />

The consulting firm shall be selected using quality and cost based selection criteria<br />

following World Bank Procurement Guidelines.<br />

3.2 MAIN OBJECTIVE OF THE STUDIES<br />

The main objective <strong>of</strong> the hydropower feasibility studies is to ensure that technically,<br />

environmentally, socially and financially viable hydropower developments may be<br />

recommended for financing, private sec<strong>tor</strong> involvement and connection to the national grid.<br />

For each site the Consultant will be expected to recommend the appropriate investment<br />

(size, expected output, initial capital cost, interconnection to the grid, etc.), operational rules,<br />

organizational structures, revenue requirements, government incentives as appropriate<br />

,environmental and social management plans, to assess the economic and social benefits for<br />

Jamaica, and to carry out a financial analysis from the opera<strong>tor</strong>’s perspective and to propose<br />

measures to manage the various risks.<br />

The feasibility study for each hydro site shall be carried out in two (2) phases.<br />

12


Phase I main objective is to inform decision makers about the key parameters <strong>of</strong> the<br />

proposed project, including its initial capital cost, its technical, environmental and<br />

social impacts, economic and financial viability, and about relevant issues. To<br />

achieve this, the Consultant shall quickly conduct or update a pre-feasibility study by<br />

using data gathered during preliminary site investigation and tests if required in<br />

addition to other data from existing pre-feasibility/feasibility studies and his<strong>tor</strong>ical<br />

flow data. At the end <strong>of</strong> Phase I, the Consultant shall produce for each site a<br />

prefeasibility report establishing the expected output, costs, technical, economic and<br />

financial viability <strong>of</strong> each site or otherwise, the environmental and social impacts<br />

and the implementation and operational risks.<br />

<br />

In Phase II, the Consultant shall conduct a full scale feasibility study for each <strong>of</strong> the<br />

sites that have been selected based on the conclusions <strong>of</strong> the Phase I prefeasibility<br />

work. The full-scale feasibility studies shall include, but not exclusively: a detailed<br />

description <strong>of</strong> the facility (civil works, mechanical and electrical installations,<br />

interconnection requirements) and a description <strong>of</strong> the expected output (MWs,<br />

MWh/year with base case and high and low scenarios), detailed cost estimates for<br />

main component and for operation and maintenance <strong>of</strong> the facility; capital structure<br />

and financing arrangements, construction and drawdown schedules; revenue<br />

requirements, environmental and social impact assessment and corresponding<br />

management plans; requirements for permits and licences; suggested organizational<br />

arrangements, and risk analysis.<br />

Capacity building is also a key component <strong>of</strong> the ESEE Project and the Consultant shall<br />

develop and deliver activities which will enable knowledge transfer to PCJ’s CERE, MEM<br />

and students <strong>of</strong> tertiary institutions in Jamaica.<br />

3.3 PHASE I: SCOPE OF THE CONSULTANT ASSIGNMENT<br />

During Phase I. and for each <strong>of</strong> the sites listed in Table 4, the Consultant shall carry out<br />

the following assignment/tasks:<br />

13


Examine existing prefeasibility and feasibility studies and other data when<br />

available (The documentation available at CERE’s Library or data room is<br />

provided in Annex 1). Review the investments as previously proposed and revise<br />

the proposed configuration to reflect one that would be competitive, given the<br />

current electricity market and tariff structures.<br />

Conduct preliminary site investigations including hydrological, topographical,<br />

geological and geotechnical studies.<br />

Develop preliminary layouts <strong>of</strong> hydraulic structures, electro-mechanical and<br />

electrical equipment and do selection <strong>of</strong> the main project characteristics such as<br />

installed capacity, energy production, capacity fac<strong>tor</strong>, etc.<br />

Develop preliminary cost estimates based on major quantities and cost items.<br />

Identify potential socio and environmental impacts, and proposed solutions.<br />

Carry out/update the project economic and financial analysis at pre-feasibility<br />

level.<br />

Highlight the main risks facing the project, and possible mitigation measures.<br />

This information will be included in the Consultant’s pre-feasibility report for each<br />

site to be reviewed by PCJ, MEM and the World Bank.<br />

3.4 PHASE II: SCOPE OF THE CONSULTING ASSIGNMENT<br />

Following PCJ’s instruction to proceed with the feasibility study, the Consultant shall<br />

carry out the following Phase II activities:<br />

Continue site investigation works on the sites including major geotechnical<br />

investigations.<br />

Define all key structures and equipment in sufficient detail to obtain quantities for<br />

all items contributing more than about 10% <strong>of</strong> the cost <strong>of</strong> structures and<br />

equipment.<br />

Provide a detailed initial cost estimate for: (i) the initial capital costs including<br />

access roads, transmission interconnection(s) to the grid; (ii) the implementation<br />

<strong>of</strong> the environmental and social management plans; and for (iii) the operations<br />

and maintenance <strong>of</strong> the proposed facilities.<br />

14


Provide the base case estimate <strong>of</strong> the annual project output (firm and average<br />

capacity and energy) over the project life/duration <strong>of</strong> the Power Purchase<br />

Agreement (PPA) , and higher and lower bounds.<br />

Estimate the reduction <strong>of</strong> greenhouse gas reduction estimate throughout the life <strong>of</strong><br />

the project<br />

Carry-out an-environmental and social impact assessment and a mitigation plans in<br />

compliance with the ESEE Project Environmental Management Framework and the<br />

Involuntary Resettlement Policy Framework, survey community interest groups<br />

regarding their use <strong>of</strong> water use practices.<br />

Carry out a project economic analysis (Jamaica’s perspective) and a financial<br />

analysis (project owners’ perspective) including capital, operating and<br />

maintenance costs and revenue streams required for cost recovery and return, and<br />

financing plans. The analysis shall consider private sec<strong>tor</strong> arrangements for the<br />

construction and/or operation <strong>of</strong> the hydropower scheme through concessions under<br />

Design, Build, Operate and Own (DBOO). The Consultant shall recommend a<br />

capital structure required to finance and implement the new hydro facility. Local<br />

and overseas partnerships shall be considered.<br />

Determine the best organizational and institutional arrangements for hydropower<br />

management and ownership over the concession period.<br />

.Provide knowledge transfer to PCJ and MEM Staff and tertiary students from the<br />

University <strong>of</strong> the West Indies and the University <strong>of</strong> Technology as it relates to basic<br />

small hydro power design, environmental considerations and basic financial<br />

analyses.<br />

3.5 PHASE I KEY ACTIVITIES<br />

The following paragraphs highlight key activities and products expected from the<br />

Consultant. It is however the responsibility <strong>of</strong> the consultant to define and carry out all<br />

activities necessary to ensure quality and timely delivery <strong>of</strong> the studies.<br />

<br />

Task 1 - A hydrological report shall be prepared based on previous hydrological<br />

analyses and additional data relevant to the site shall be collected from the<br />

relevant government agencies. His<strong>tor</strong>ical flow data obtained from previous studies<br />

15


and the relevant government agencies shall be verified by on-site measurements<br />

over an agreed time period and via computer simulation modeling. These flow<br />

data shall also be considered in the power computation and the design <strong>of</strong><br />

hydraulic structures. Flood flow, low flow and flow duration curve shall be<br />

computed by using different hydrological models. Sediment samples from<br />

riverbed shall be collected and mineralogical and particle size distribution<br />

analyses shall be carried out to find the type and percentage <strong>of</strong> mineral content<br />

and particle size distribution <strong>of</strong> the sediment. The quantity <strong>of</strong> sediment shall be<br />

estimated on the basis <strong>of</strong> sediment sampling data, if available, or with indirect<br />

methods. The expected maximum possible sediment particle that could be<br />

transported by flood shall be recorded during the field visits. Each component <strong>of</strong><br />

the selected project alternative will be optimized under different flows.<br />

<br />

<br />

Task 2 – Preliminary layouts <strong>of</strong> hydraulic structures, electro-mechanical and<br />

electrical equipment shall be developed and the selection <strong>of</strong> the main project<br />

characteristics such as installed capacity, energy production, capacity fac<strong>tor</strong>, etc<br />

shall be made.<br />

Task 3 - Energy computation (on a monthly basis) for optimum plant capacity<br />

shall be carried out. All applicable deductions like environmental release <strong>of</strong> flow,<br />

estimated outage, internal energy consumptions, transmission losses etc. shall be<br />

deducted from the gross plant energy estimate. Annual energy sales shall be<br />

calculated considering prevailing energy rates at the project area.<br />

<br />

Task 4 - The major socio-environmental impacts <strong>of</strong> the hydropower development<br />

during the construction and the exploitation phases shall be identified (following<br />

the existing ESEE Environmental and Social Frameworks) and appropriate<br />

mitigating measures shall be proposed.<br />

<br />

Task 5 – A preliminary costing <strong>of</strong> the project shall be carried out based on major<br />

quantities and cost items and a preliminary economic analysis and financial<br />

analysis carried out to assess the economic and financial viability <strong>of</strong> the<br />

16


investment. The viability <strong>of</strong> the project shall be assessed based on criteria such as<br />

NPV, IRR, ROI and annual net cash flows or any other suitable financial analysis.<br />

3.6 PHASE II KEY ACTIVITIES<br />

Once the economic and financial viability <strong>of</strong> a site has been ascertained through the prefeasibility<br />

study and comments taken into account, and upon instruction from PCJ, the<br />

following additional tasks shall be carried out by the Consultant and the feasibility report<br />

will be prepared: The following paragraphs highlight key activities and products expected<br />

from the Consultant. It is however the responsibility <strong>of</strong> the Consultant to design and carry<br />

out all activities to ensure quality and timely delivery <strong>of</strong> the studies.<br />

<br />

Task 1 – A more detailed geotechnical study, which shall include drilling,<br />

sampling, labora<strong>tor</strong>y testing and factual reports, shall be prepared to determine the<br />

infrastructure requirements and related costs, based on the project layout. The<br />

project components <strong>of</strong> the selected option shall be designed with a degree <strong>of</strong><br />

accuracy expected at feasibility stage reflecting the design concept and improving<br />

the accuracy <strong>of</strong> the cost estimates. Hydraulic calculations and structural sizing<br />

shall be carried out. Design methodologies and design criteria shall be set while<br />

designing the project components. The components <strong>of</strong> the project shall also be<br />

described and specified in general <strong>terms</strong>. Civil, hydro-mechanical,<br />

electromechanical, mechanical, electrical components and other structures <strong>of</strong> the<br />

project shall be developed. A construction schedule shall be prepared by<br />

sequencing and scheduling <strong>of</strong> the project activities. Resources availability and<br />

critical activities shall be taken into consideration while sequencing and<br />

scheduling the project activities. Infrastructure requirements during construction<br />

and operation shall be considered. Such infrastructure requirements and facilities<br />

may include site camps, <strong>of</strong>fices, access roads, construction quarters, construction<br />

power, water supply and sanitation, communication, and transport.<br />

<br />

Task 2 - Alternative functional layout designs shall be considered to identify the<br />

most appropriate one. A schematic layout for each alternative shall be prepared<br />

17


and its technical and financial aspects compared and ranked. The most appropriate<br />

alternative shall be selected for the design <strong>of</strong> the project components.<br />

Topographical, financial, environmental, geo-technical and construction issues<br />

shall be considered during the selection <strong>of</strong> the project layout. In addition, key<br />

schematic drawings for all major components like headworks, water ways,<br />

forebay, desilting basin, penstock, powerhouse, electromechanical equipment,<br />

tailrace, powerhouse single line diagram, switchyard, transmission lines, project<br />

layout in appropriate scale shall be prepared and delivered to the Client.<br />

<br />

Task 3 – A socio-economic and environmental assessment during the construction<br />

and the exploitation phases shall be carried out using the existing ESEE<br />

Environmental and Social Frameworks. The physical, chemical, biological,<br />

cultural and socio-economic environment <strong>of</strong> the project affected area will be<br />

studied. This shall include a social and environmental management plan and a<br />

plan to moni<strong>tor</strong> the implementation <strong>of</strong> the mitigation measures. The project<br />

structuring will take into account possible community and local municipal<br />

government participation considering land rights allocation, local co-investment<br />

and labor contribution. Community participation is considered a key issue in order<br />

to incorporate local perception and sharing <strong>of</strong> costs and benefits for project<br />

construction and for long-term operation and maintenance.<br />

Task 4 – An Economic and Financial analysis shall be performed to determine:<br />

(a) the economic benefits <strong>of</strong> the construction and operation <strong>of</strong> the project for<br />

Jamaica; and (b) its financial soundness for the project sponsors/owners. The key<br />

assumptions used for the economic and financial analysis will be clearly spelled<br />

out (in particular the basis for the various unit costs) and justified. In addition, the<br />

economic and the financial analysis shall include sensitivity analysis around the<br />

key input parameters to assess the impact <strong>of</strong> key parameter variations on the<br />

economic and financial viability <strong>of</strong> the project.<br />

18


Task 5- An overall implementation plan which identifies the key steps, decisions and<br />

actions needed to implement the various recommendations <strong>of</strong> the study.<br />

Task 6 – The Consultant shall allow for capacity building and transfer <strong>of</strong> knowledge<br />

to PCJ, MEM staff and a group <strong>of</strong> 20 to 25 tertiary students from the University <strong>of</strong><br />

the West Indies (UWI) and the University <strong>of</strong> Technology (UTECH) by allowing<br />

these personnel to shadow all aspects <strong>of</strong> their on-site or <strong>of</strong>f sites activities so as to<br />

build effective hydropower development know how in three areas: hydropower<br />

scheme design, socio-environmental impact analysis and basic economic and<br />

financial analysis. The Consultants is required to answer pertinent questions from<br />

staff <strong>of</strong> the PCJ or MEM or from the tertiary students from UWI and UTECH: on<br />

hydro power feasibility studies; hydropower design; socio-environmental impact<br />

analysis and; hydropower project economic and financial analysis.<br />

4 CONSULTING TEAM<br />

4.1 GENERAL<br />

The successful candidate for this consultancy hereinafter referred to as “the Consultant”,<br />

will be a firm. Bids from individuals will not be considered. The assigned Consultant<br />

project team must possess expertise in mechanical, electrical, civil, structural,<br />

hydropower, topographical and geotechnical engineering, environmental and social<br />

impact assessments and management plans and in project economic and financial<br />

analysis. The team should have a proven track record <strong>of</strong> conducting feasibility studies for<br />

small hydropower projects.<br />

The Consultant may contract local companies to carry out certain components <strong>of</strong> the<br />

works, such as but not limited to geotechnical, and topographical work.<br />

4.2 INDICATIVE LIST OF EXPERTISE REQUIRED<br />

The following indicative list <strong>of</strong> experts is proposed: The consultant is fully responsible<br />

for the selection <strong>of</strong> the expertise required to satisfac<strong>tor</strong>ily carry out the contractual<br />

obligations.<br />

1. Team Leader experienced in small hydros implemented by private sec<strong>tor</strong> sponsors<br />

2. Hydrology Specialist<br />

3. Civil/Structural and Hydraulic Expert<br />

19


4. Electro-mechanical Engineer<br />

5. Environmental Specialist<br />

6. Social Specialist<br />

7. Economic and Financial Analyst (experienced in private sec<strong>tor</strong> investment)<br />

The Consultant must possess the expertise and skills required to conduct topographical<br />

studies, geotechnical analyses, socio-economic analyses, environmental analyses,<br />

civil/structural analyses and design. The Consultant must possess the expertise and skills<br />

to create, edit, format and update technical documents, in Standard English, in a concise<br />

and clear manner.<br />

Team Leader<br />

Education:<br />

The Team Leader shall have at least a Bachelor’s Degree (or equivalent) in an<br />

engineering or related field.<br />

Experience:<br />

At least 10 years <strong>of</strong> experience working in the renewable energy sec<strong>tor</strong>, <strong>of</strong> which<br />

at least 5 years spent in the field <strong>of</strong> hydropower energy.<br />

Thorough knowledge <strong>of</strong> project management best practices related to small<br />

hydropower feasibility studies.<br />

Experience with private sec<strong>tor</strong> developers, preferably in the field <strong>of</strong> renewable<br />

energy.<br />

Hydrology Specialist<br />

Education:<br />

The Hydrology Specialist shall have at least a Master’s Degree (or equivalent) in<br />

hydrology or related field.<br />

Experience:<br />

At least 6 years <strong>of</strong> experience working in the field <strong>of</strong> hydrology.<br />

Thorough knowledge <strong>of</strong> industry best practices related to the analysis <strong>of</strong><br />

hydrological data and the development <strong>of</strong> hydrological models <strong>of</strong> flows.<br />

20


Documented experience in doing project work for feasibility studies for<br />

hydropower plants.<br />

Civil/Structural and Hydraulic Expert<br />

Education:<br />

The Civil/Structural and Hydraulic Expert shall have at least a Master’s Degree (or<br />

equivalent) in hydropower, civil engineering or related field.<br />

Experience:<br />

At least 15 years <strong>of</strong> experience working in the renewable energy sec<strong>tor</strong>, <strong>of</strong> which<br />

at least 10 years spent in the field <strong>of</strong> hydropower energy.<br />

Thorough knowledge <strong>of</strong> best practices and technologies related to small<br />

hydropower project design, construction and operation.<br />

Documented experience in conducting small hydropower run <strong>of</strong> the river<br />

feasibility studies.<br />

Working experience in managing private sec<strong>tor</strong> projects in the field <strong>of</strong> electricity<br />

generation from hydropower would be considered a strong asset.<br />

Experience in conducting project work in Developing Countries would be an<br />

asset.<br />

Electro-mechanical Engineer<br />

Education:<br />

The Electro-mechanical Engineer shall have at least a Bachelor’s Degree (or equivalent)<br />

in electrical, mechanical engineering or related field.<br />

Experience:<br />

At least 6 years <strong>of</strong> experience working in renewable energy sec<strong>tor</strong>, <strong>of</strong> which at<br />

least 4 years spent in the field <strong>of</strong> hydropower energy.<br />

Thorough knowledge <strong>of</strong> industry best practices related to design and installation<br />

<strong>of</strong> mechanical and electrical equipment used in hydropower plants.<br />

Documented experience in doing project work for feasibility studies for<br />

hydropower plants.<br />

Experience in conducting project work in Developing Countries would be an asset<br />

21


Environmental Specialist and Social Specialist<br />

The Environmental Specialist and the Social Specialist shall have at least a Bachelor’s<br />

Degree (or equivalent) in environmental science and in Social sciences or in related<br />

fields.<br />

Experience:<br />

At least 6 years <strong>of</strong> relevant experience working in environmental and social<br />

impact assessments preferably in renewable energy.<br />

Thorough knowledge <strong>of</strong> industry best practices related to environmental and<br />

social impact assessments and in the design and implementation <strong>of</strong> environmental<br />

and social management plans and compensation mechanisms.<br />

Documented experience in doing project work for feasibility studies for<br />

hydropower plants.<br />

Experience in conducting project work in Developing Countries would be an asset<br />

Economic and Financial Analyst<br />

Education:<br />

The Economic and Financial Analyst shall have at least a Master’s Degree (or equivalent)<br />

in Economics, Finance and business management or related field.<br />

Experience:<br />

At least 6 years <strong>of</strong> experience working in project economic evaluation, and in the<br />

finance and business sec<strong>tor</strong>s, <strong>of</strong> which at least 4 years in the field <strong>of</strong> renewable<br />

energy.<br />

Thorough knowledge <strong>of</strong> finance and investment best practices related to the<br />

development <strong>of</strong> small hydropower projects.<br />

Documented experience in conducting economic and financial analyses for small<br />

hydropower developments.<br />

Experience in conducting project work in Developing Countries would be an<br />

asset.<br />

Project management work in Developing Countries would be an asset.<br />

22


5 DURATION<br />

Phase I <strong>of</strong> this assignment shall be completed within four (4) months. The maximum<br />

time allotted for the completion <strong>of</strong> all activities on all sites shall be eighteen (18) months.<br />

6 FACILITIES AND ARRANGEMENTS<br />

The PCJ shall provide temporary <strong>of</strong>fice space, inclusive <strong>of</strong> all necessary communications<br />

facilities for two persons from the Consultant’s team at the PCJ Resource Centre at 36<br />

Trafalgar Road in New Kingston for the duration <strong>of</strong> the contract. The PCJ’s project<br />

coordination <strong>of</strong>fice is the Centre <strong>of</strong> Excellence for Renewable Energy. The PCJ will<br />

coordinate support from other Government agencies, such as the Ministry <strong>of</strong> Energy and<br />

Mining, the Water Resources Authority (WRA), the National Environment and Planning<br />

Agency (NEPA), the National Land Agency (NLA) and the tertiary institutions. The<br />

assignment shall require travelling around the island. The PCJ will provide guides and<br />

organise support from the Water Resources Authority for field work. Consultants are<br />

expected to report to the Senior Research Officer – Renewable Electricity at PCJ’s Centre<br />

<strong>of</strong> Excellence for Renewable Energy.<br />

Consultants are expected to provide the requisite equipment for this assignment or to<br />

contract local consultants, with the capability to support the team’s work, for example,<br />

for topographical and geotechnical analyses. Consultants will be responsible for the cost<br />

<strong>of</strong> local and international travel and accommodations, investigations and surveys, local<br />

and international communications (i.e. telephone or fax) and costs associated with rental<br />

or freight <strong>of</strong> equipment.<br />

The Consultant shall have access to the PCJ’s Data room and Library containing the<br />

relevant documentation and presentations on past reports, studies and initiatives (See<br />

Annex 1). PDF copies <strong>of</strong> documents shall be emailed to the Consultant. PCJ shall<br />

provide personnel to assist with local meeting arrangements.<br />

23


7 DELIVERABLES<br />

The Consultant will submit to CERE, MEM and the World Bank the following reports<br />

(hard copy and in electronic format) in English (including an executive summary):<br />

Inception Report. The Inception Report shall be delivered one month after the<br />

contract start date. The Inception report shall include a detailed work plan consistent<br />

with the Consultant’s Contract and a description <strong>of</strong> issues and <strong>of</strong> possible solutions.<br />

Quarterly Reports to be delivered by the first week <strong>of</strong> the fourth month after the<br />

contract start date. The report shall include a description <strong>of</strong> all hydropower activities<br />

and outcomes. The quarterly reports shall present progress so far, status <strong>of</strong><br />

deliverables, the work-plan for the next quarter, issues and proposals.<br />

Draft Pre-Feasibility Report (for each site): Each report shall be produced and<br />

delivered for review and discussion with CERE and other relevant stakeholders (incl.<br />

MEM, World Bank, etc).<br />

Final Pre-Feasibility Report (for each site): Each final report shall take into<br />

account the Client’s and stakeholders’ comments. This shall include map(s),<br />

hydropower designs, socio-environmental assessments, field work reports, etc.<br />

Draft Feasibility Report (for each site): This report shall be produced and delivered<br />

for review and discussion with the Client and relevant stakeholders (incl. MEM,<br />

World Bank, etc).<br />

Final Feasibility Report (for each site): This final report shall take into account the<br />

Client’s and stakeholders’ comments. This shall include map(s), hydropower<br />

designs, socio-environmental assessments and management plans, field work reports,<br />

etc.<br />

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_____________________________________________________________________<br />

ANNEX 1 DOCUMENTATION AVAILABLE<br />

Hydro Energy Projects<br />

Morgan River<br />

Plant Capacity<br />

[MW]<br />

2.3<br />

(Limited information in library)<br />

Potential River Plants briefly described in document<br />

Title: Plan <strong>of</strong> Operation for the Minihydro Construction<br />

Program, October 1986<br />

Martha Brae River (Information Available)<br />

4.8<br />

Title: Mid and Western Jamaica Hydroelectric feasibility<br />

Study<br />

JPS Co Ltd, Mo<strong>tor</strong> Columbus and LAHMEYER International,<br />

December 1978<br />

Rio Cobre (Information Available)<br />

1<br />

Title: Small Scale Hydropower project. LAHMEYER<br />

INTERNATIOAL, November 1985<br />

Title: Rio Cobre Hydroelectric Project Updated Feasibility<br />

Study. HARZA Engineering Company International, April 1995<br />

Title: Mid and Western Jamaica Hydroelectric feasibility<br />

Study<br />

JPS Co Ltd, Mo<strong>tor</strong> Columbus and LAHMEYER International,<br />

December 1978<br />

Negro River (Information Available)<br />

1<br />

Title: Geology <strong>of</strong> the Yallahs and Negro River Intake Areas,<br />

D.G. Poulton, 1983<br />

Mahogany Vale* (Information Available)<br />

50<br />

* Not a complete study<br />

Title: Report on Comparative Study <strong>of</strong> Water supply Projects<br />

25


for Kingston and Surrounding Area. Vol. II (Plates), The Water<br />

Commission, Ministry <strong>of</strong> Public Utilities and Transport,<br />

Government <strong>of</strong> Jamaica, July 1977<br />

Hydro Potential<br />

59.1 MW<br />

26

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