Specific procurement notice (SPN) – EPC2

Country: Malawi

Project Name: Mpatamanga Hydroelectric Power Project – Electro-Mechanical Works

Employer: MHPL (Mpatamanga Hydro Power Limited)

The Mpatamanga HydroPower Project (MHPP) is located on the Shire River, the largest river in Malawi and a tributary to the Zambezi River, situated in the southern region of Malawi within the Blantyre and the Neno Districts. The commissioning date for the development is currently scheduled for January 2030.

In brief, the development comprises two cascading generating stations that are near each other (6 km apart), with a combined installed capacity of 361 MW (i.e., 309 MW and 52 MW plants). It includes separate substations and two transmission lines. Water required for energy production is conveyed from the dammed upper reservoir to the main powerhouse via tunnels and accompanying underground surge chambers. The lower, smaller powerhouse utilizes only penstocks, where the generating station is positioned directly against the foot of the dam in a close-coupled configuration.

Development shareholders comprise a consortium of EDF and Scatec (55% of total combined ownership), serving as the Strategic Sponsors. This private group leads the development and implementation of the project under a Public-Private Partnership, alongside the Government of Malawi (30%) and IFC (15%). MHPL is the special purpose vehicle created by the Strategic Sponsors to implement this work and operate the plant for a predefined duration. MHPL is the Employer.

The source of funds comes from the Government of Malawi and the Employer. This amalgamation is in the process of arranging financing agreements with the International Development Association (IDA) from the World Bank Group and other key financing organizations.

This notice (SPN-EPC2) follows an earlier GPN (General Procurement Notice) publication released on 2023-11-09 and an online notification (via YouTube) presented on 2023-11-20 at the following link: https://www.youtube.com/watch?v=t_l9fDL8M4I&ab_channel=MpatamangaHydroPowerProject

This process will be open, as reiterated, to all eligible firms and individuals as defined in the Employer Initial Selection Documents.

In summary:

  • (a) Applicants are requested to participate in one (or more) of the three split contracts, namely a (i) civil (EPC1) package, (ii) electro-mechanical (EPC2) package, and/or (iii) transmission lines and substations (EPC3) package;
  • (b) The packages will, in general, align with the FIDIC form of contract, requiring the Contractor to Design, Manufacture, Install, Test, and Commission the works before acceptance and takeover by the Employer;
  • (c) MHPL now invites eligible Applicants for the Project to consider participating in the MHPP Initial Selection process for the MHPP-EPC2-Electro-Mechanical Works contract – the split contract packages are to be tendered in Q2-2024;
  • (d) The Employer intends to qualify and select between four (4) and five (5) contractors for EPC2;
  • (e) Minimum qualification requirements and evaluation criteria are stated in the Initial Selection documents, including eligibility aspects linked to financial capacity, strong CSR (Corporate Social Responsibility), and technical capability, among other key criteria;
  • (f) Initial Selection documents will be made available in electronic format for free in the Employer’s virtual data room (VDR);
  • (g) Applicants will be allowed to gain more information via the VDR, i.e., Initial Selection documents, by first sending an email to the following address: MHPP_EPC2_InitialSelection@MpatamangaHydro.com

The application submission date is listed in the Initial Selection documents and is currently scheduled for 26th January 2024. Only electronic submission of applications will be permitted. Late applications will not be accepted.