16.05.2014 Views

terms of reference tor # mempcj201006037re - Petroleum ...

terms of reference tor # mempcj201006037re - Petroleum ...

terms of reference tor # mempcj201006037re - Petroleum ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

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 />

24


_____________________________________________________________________<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

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!