On 16th of February 2016 Zambia’s Industrial Development Corporation Limited (IDC) formally issued a Request for Proposals (RFP) for a combined 100MW of solar PV power tender Round 1. The tender is organised within Scaling Solar Zambia program that is supported by World Bank (WB) and International Finance Corporation (IFC).
The IDC is looking to sigin contract for two utility scale solar PV powers plants, both 50 MW of capacity. The projects will be located in the Lusaka-South Multi-Facility Economic Zone.
The request of proposal was issued to selected companies that successfully went through the prequalification phase that took place in the second half of 2015. The 11 prequalified bidders are required to submit their final proposals within eight weeks by closing date of 08 April 2016. The bids will then be evaluated on the basis of their compliance with technical and commercial requirements as contained in the RFP. Two winning bidders will then be selected, one for each project. The winning bidders will be selected on the basis of the lowest electricity price (i.e. tariff) offered for each of the two projects. The winning bidders will be responsible for financing, construction, operation and maintece of their respective plants under 25-year Power Purchase Agreements (PPA). Plant construction is expected to commence in 2016. The Zambian Government, through the IDC will retain a minority shareholding in each project for later offering to the Zambian public.
Given large investors interest in the first round of the IDC’s tender, the second round of the auction will be commenced in late 2016.