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RURAL ENEERGY AGENCY (REEA)

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M MINISTR RY OF ENERGY E AND MIINERALS S RUR RAL ENERGY AG GENCY (R REA)

TERMS OF REFERENCE E

CON NSULTA ANCY SERVICES TO CAR RRY OUT T PRE-FEASIBILLITY STUD DIES FO OR SMALLL HYDR ROPOWE ER PROJECTS

11thh January, 2012 2

RURAL ENE ERGY AGENCY (RE EA)

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Table e of Conttents 1.

2.

BA ACKGROUN ND .......................................................................................................... 3 SM MALL HYDR ROPOWER R PROJECT TS SELECTE ED ........................................................ 3 2.1 Zigi Site................................................................................................................ 3 2.2 Kwabululu u Site ...................................................................................................... 4 3. OB BJECTIVE ............................................................................................................... 4 General objective 3.1 o .................................................................................................. 4 Specific Objective O ................................................................................................. 4 3.2 4. ST TUDY APPR ROACH ................................................................................................... 4 5. SC COPE OF WORK W ...................................................................................................... 4 5.1 Phase I: Inception I ................................................................................................ 5 Phase II: Pre-feasibility Studies ............................................................................ 5 5.2 6. PERIOD OF PERFORMA P ANCE..................................................................................... 6 7. RE EPORTS .................................................................................................................. 6 7.1 Inception Report ................................................................................................... 6 7.2 Pre Feasib bility Study Report ................................................................................... 6 8. DE ELIVERABL LES......................................................................................................... 7 9. RE EA’S OBLIG GATIONS ............................................................................................... 7 10. CONSULTA C ANT QUALIIFICATION NS ........................................................................ 7 11. PROPOSAL P L PREPARA ATION REQ QUIREMEN NTS...................................................... 7

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RURAL ENEERGY AGENCY (REEA)

1.

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BACKGRO OUND The Rural Energy Agency A (REA) was established e d by the Act A of Parrliament No.8 of 2005 as an n autonom mous institu ution to ad dminister the Rural Energy Fund (REF F). The ma ain function n of REA iss to promo ote and faccilitate inve estment in modern n energy services s byy working with key partners and collab borators from the private p secctor, NGOss, CBOs and Governm ment agenccies. The A Agency, in partnerrship with project developers, d , identifiess modern energy projects, p provides training in projecct identifiication an nd preparation, te echnical assistance e, manage erial and financial assistancce in ord der to enhance e sustainability of ene ergy proje ects. In collaboratio on with ke ey service sector institutionss and ministries m r responsible e for rurral service es (e.g. health, education,, rural devvelopmentt, water, etc.), e the Agency promotes p m modern energy supply for productive use aiming g at reducing povertty and raissing the livelihood of communities in th he rural are eas.

The Agency has be een receiviing requessts for ava ailable feasibility rep ports of small hyd dropower projects from possiible develo opers and d financierrs. The available reports r are e either old d or of reco onnaissancce level. Th he Agency intends to update to pre-fea asibility lev vel of studyy to a num mber of ide entified po otentials which will assist devvelopers and a financiiers to carrry on to full f feasibillity and finally imp plementatio on projectss. REA therefore is seeking for the servicces of a competentt Consulta ant(s) wh ho shall carry c out the afore ementione ed prefeasibility studies.

These Terrms of Refe erence (TO OR) constittute the most m probab ble scope of o work for the perrformance of the study and ma ay not nece essarily be e neither co omplete nor comprehensive descriptio on of the required services. s T The bidde ers may apply their experien nces to am mend the study s appro oach and scope of sservices specified in these TO OR.

2.

SMALL HY YDROPOW WER PRO OJECTS SE ELECTED1 The proje ects selecte ed for pre e-feasibilityy level asssessment are 135 kW k Zigi project an nd 200 kW k Kwabu ululu project in Ussambara mountainss. Most identified sites have e either old d studies or were studied s to lower leve el. New developme ents especcially irriga ated agricu ulture at various v site es (if any)) might have chan nged potentials’ chara acteristics.

2.1

Zigi Site Zigi River is found in the Am mani Foresst Reserve e in the eastern e Usa ambara Mountainss. The intakke site is lo ocated at UTM U 37 04 460100; 94 436036 and d is 670 masl. Larg ge part of its catchme ent is Amani Forest which w is the major so ource of domestic water sup pply in Tan nga Municipal. There e is no ag gricultural activity

1

Techniccal Assessment for Potential Community-B Based Hydropo ower potential in Muheza, Korogwe K & Lusshoto Districts; Camco Adviso ory Services; January J 13th 2011 2 RURAL ENE ERGY AGENCY (RE EA)

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that may pose com mpeting water w use. Access is i from Muheza M ab bout 35 kilometress.

The site has h a grosss head off 84 m an nd propose ed design discharge of 350 litres per second s which will ressult in insta alled capaccity of 140 kW. 2.2

Kwabululu Site Kwabululu u site is located in Lushoto District about 25 km southe east of Lushoto. The T site iss close to Kwefingo Village an nd Dindila tea factorry. It is possible to o utilise avvailable grross head of 100 m and flow of 450 littres per second. This T will ge enerate 20 00 kW power. Howe ever, the arrangeme ent will require lon ng waterwa ay with po ower canal about 500 0 m and 20 00 m pensttock.

3.

OBJECTIV VE

3.1

General objective o The main objective is to study the tech hno-econom mic and environmen ntal and social aspects of the e two hyd dropower ssites. The objective of the envvisaged developme ent is to ssupply the Tanzanian n rural com mmunities with reliab ble and relatively affordable electric energy e from m renewable and in ndigenous energy sources. This T is in liine with th he Nationa al Energy Policy P 2003 3, to deve elop the indigenouss renewable energ gy resourrces, aime ed at, in nitially, re educing dependenccy on fuel wood and d imported d oil and, eventually e total subsstitution of these two t least favoured f e energy sou urces. Hyd dropower, in particular, will displace im mported oil.

3.2

Specific Objective O e Following increased demand for f renewa able energyy for both grid and off-grid based sup pply; REA intends i to upgrade reconnaisssance to pre-feasibility level of study of two mini m hydrop power pro ojects loca ated in Ta anga regio on. The projects are a intende ed to supp ply rural communitie c es within the projecct area.

There also o exists a possibility p t sell exce to ess power to t the grid d.

4.

STUDY APPROACH H The work is divided into two phases as fo ollows: • •

5.

Phase I: Incepttion studyy including g data co ollection and a desk studies reviewing reconn naissance level and d old prevvious pre-ffeasibility studies reportss, where avvailable.

Phase II: Prepara ation of pre e-feasibilityy study forr the two projects. p

SCOPE OF WORK

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RURAL ENEERGY AGENCY (REEA)

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Phase I: Inception n The Consu ultant will undertake u the tasks listed below, but nott be limited d to the following: i. Desk sttudies to review avaiilable inforrmation, da ata and ma aps. ii. Site vissit to assesss site cond ditions and d gather village/comm munity view ws. iii. Recommend a prrogramme for collecttion of additional data a such as surveys s and mapping, hydrology and geo m ology for engineering studie es and consum mer surveyys.

The Consu ultant will issue an Inception Report up pdating th he work pllan and schedule, informatio on to be co ollected, and a supporrt required d from REA A. The cost estim mate for preparing p the pre-fe easibility studies s can n be revissed, as needed, taking into accoun nt any additional a data collection or o field investigations required for completing the pre--feasibility studies.

REA c reserves th he right to o approve the t revised d cost estim mate and to t decide whether w to procee ed further with the pre-feasib bility workk. Should d REA decide to proceed, REA R will isssue a Change Orderr for the up pdated wo ork plan, scchedule and cost estimate. e

5.2

Phase II:: Pre-feas sibility Stu udies The Conssultant will undertak ke pre-fea asibility stu udies at the t two sites s to confirm the t techniical, finan ncial, environmental and soccial suitab bility of developing g these tw wo sites. The T Consu ultant will undertake e the taskks listed below, butt not be lim mited to the following g: i. Unde ertake add ditional data collection as agreed durin ng the In nception Phase e. ii. Estab blish energ gy needs and a supplyy and foreccast future e energy demand d for id dentified lo oad centre es. Estimate willingn ness and ability a to pay for house eholds, com mmercial and a public customerss. iii. Conduct a tech hnical asse essment off the two sites s to de etermine optimum hydro opower co onfiguration n and ene ergy generration to meet m curre ent and forecasted loads. If th here are power/ene ergy shorrtfalls, dettermine suitab ble alterna atives to supply s the e shortfallss at least cost. Thesse may includ de other renewable e resources, diesels and/or in nterconnecction to Tanesco grid. iv. Desig gn MV and LV distribu ution netw work giving priority to o location of o social servicces centre es such as a health and educcation faccilities. Takke into consideration the good practices p e emerging from f the REA R study on low cost electrificat e ion method ds. v. Invesstigate an nd propose Tanesco o grid co onnection possibilitie es and conne ection poin nts. vi. Prepa are engineering scchematics and elecctrical schematics ffor the proje ects, and esstimate pro oject cost.

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vii. Propo ose instituttional arrangement ffor the management and opera ation of the projects. p viii. Carryy out a fin nancial an nalysis for the proje ects and identify rissks and propo ose their mitigation n and/or managem ment. If the t projeccts are financially non n-viable, even e with h the RE EA Perform mance Grrant of 500/connecction, dete ermine add ditional grrant requirrements to o make US$5 these e small hyydropowerr projects financiallyy viable, given cusstomers willingness to pay. p ix. Conduct an Environme ental and Social Safeguard ds Screen ning in accorrdance witth the REA A’s Resetttlement Po olicy Frame ework (RP PF) and Envirronment an nd Social manageme m nt Framew work (ESMF F). x. Prepa are the scope s of work, sch hedule, and estima ate the cost c of undertaking a full f feasibility study, if i warrante ed. nclusion off prefeasibility study the Consu ultant shall prepare a report At the con with all fin ndings, outtlining the results witth reasonss for confirming the sites s for feasibility study. The final pre e-feasibilityy report will w be produced afte er draft report hass been reviewed by th he client and views in ncorporate ed.

6.

PERIOD OF O PERFO ORMANCE E The Incep ption Repo ort is due within two o (2) weeks of conttract awarrd. It is anticipated d that sub bmission of o draft pre efeasibility y study rep ports for the t two hydropowe er sites is due within n six (6) ca alendar mo onths from contract signing. s Depending g on the exxtent to wh hich new data d has to o be collected, the pe eriod of performan nce may be e longer.

7.

REPORTS S The reporrt format, binding and a the number of sets will be agreed d upon between the prosp pective co onsultant and REA A during negotiatio ons for consulting services. REA will prepare e comme ents and submits to the Consultantt(s) within 14/ days after a receip pt of the re eports. Aftter receipt of such commentss, The Con nsultant(s)) shall pre epare, with hin 14 dayys, a finall report incorporatting all reviisions deem med appro opriate.

7.1

Inception n Report The consu ultant will be b required to prepa are and submit Incep ption Repo ort after signing of the contra act to expla ain the app proach and d milestone es to coverr during the contra act period.

7.2

Pre-Feasibility Stu udy Reporrt At the con nclusion of prefeasibility study tthe Consultant(s) shall prepare e report with all fin ndings, outtlining the results witth reasonss for confirming the sites s for feasibility study. Th his report shall incllude a de escription of the ba asis for selecting the preferrred sites arrangem ment for advancing a to full feasibility

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status. The pre-feassibility repo ort will be produced after draftt report ha as been reviewed by b the clien nt and view ws incorpo orated.

8.

DELIVER RABLES The consu ultant shall submit incception an nd prefeasibility studyy reports fo or each project bo oth in hard d copy (2 copies), and a electro onic versio on (MS Wo ord and PDF forma ats). REA will prepa are comments and submits to the Con nsultant within 14 days afterr receipt of o the repo orts. After receipt off such com mments, The Consu ultant shall prepare, within 14 days, a final f reportt incorpora ating all revisions deemed d ap ppropriate.

9.

REA’S OB BLIGATIO ONS REA obliga ation will be b to: i. Asssist the Consultantt in the collection of pe ertinent avvailable info ormation, reports, r stu udies, survveys, data, statistics, etc.; and ii. Asssist in obta aining clea arances an nd permitss to enablle the Con nsultant enter into la ands owne ed by the e Governm ment or private parrties as neccessary to perform p th he Servicess.

10.

CONSULT TANT QUA ALIFICAT TIONS Expertise required for f undertaking this assignme ent will incclude at le east 10 years of relevant experience e in mini--hydro an nd micro-g grids desig gn and specificatio on, envirronmental and soccial safeg guards asspects, business b developme ent and prroject financing. This includes successfu ul achievem ment of financial closure c of transaction t n in area re elated to this t assignment. Kno owledge of the World Bank policies p and d procedurres for similar projectts and exp perience in Africa will be an added advantage e. The consultant c should have an advanced degree in engineerin ng.

11.

PROPOSA AL PREPA ARATION REQUIRE EMENTS A detailed work prog gramme sh hall be pre esented in the techniical offer showing s the scope of work to t be perfo ormed, scheduled duration of various activities with clear explication of those e on the crritical path h and milesstones durring the execution of the studies. s T The work plan shall be inco orporated in the Consulting g Agreemen nt.

The Consu ultant will have the opportunity o y to review w available e informatiion and data for the t two sites during g the prop posal prepa aration pe eriod, so that the scopes of work, sche edule and costs c can be b estimatted more accurately.

The estim mated cosst must include i prrocuring and/or a hirre all ma aterials, equipmentt and insttruments needed n fo or the exe ecution of the studiies and reimbursed d upon ap pproval of the client,, as well as a costs off travel and other reimbursables.

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A lump su um contracct will be awarded a su ubject to deliverabless accepted d by the client.

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