Project ID: 113416; Loan No.7927-0 Web viewFor the use of this Report the word ... I.1 BACKGROUND: The Suez Gulf/Samalaut 500 kV OHTL Project will connect the future wind Farms at

EG-Wind Power Development ProjectSuez Gulf/Samalaut 500 kV OHTL & TA

MINISTRY OF ELECTRICITY AND ENERGYEGYPTIAN ELECTRICITY HOLDING COMPANY

EGYPTIAN ELECTRICITY TRANSMISSION COMPANY

EG-Wind Power Development ProjectProject ID: 113416; Loan No.7927-0

Update for Procurement Plan

For

Suez Gulf/Samalaut 500 kV OHTL&

Technical Assistance for Wind Power Commercialization Program

Prepared by: Electric Power Systems Engineering Company (EPS)

July 2011

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TABLE OF CONTENTS

CHAPTER I: RATIONAL TO UPDATE THE PROCUREMENT PLAN…………….4

CHAPTER II: UPDATE FOR PROCURMENT PLAN ……………………………….6

CHAPTER III: RELATED PROJECTS………………………………………………..11

CHAPTER IV: COORDINATION BETWEEN IMPLEMENTATION PLANS……..14

CHAPTER V: CONCLUSION AND RECOMMENDATIONS……………………...14

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ABBREVIATIONS AND ACRONYMS

BOO Build Own OperateCTF Clean Technology Fund EEHC Egyptian Electricity Holding CompanyEETC Egyptian Electricity Transmission CompanyEDPs European development PartnersEPS Engineering Power SystemsEOI Expression of InterestIBRD International Bank for Reconstruction DevelopmentIPP Independent Power Producers kV Kilo VoltMOEE Ministry of Electricity and EnergyMW Mega WattNREA New and Renewable Energy AuthorityOHTL Over Head Transmission LinePPA Power Purchase AgreementPQ PrequalificationRFP Request for ProposalSS SubstationTA Technical AssistanceTL Transmission LineWB World BankWPDP Wind Power Development Project

For the use of this Report the word Project means “Suez Gulf/Samalaut 500 kV OHTL”

CHAPTER I

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RATIONAL TO UPDATE THE PROCUREMENT PLAN

I.1 BACKGROUND:

The Suez Gulf/Samalaut 500 kV OHTL Project will connect the future wind Farms at Suez Gulf and Gabal El-Zait to the National Unified Power Grid. The Project is financed through WB-IBRD (MUS$ 70) and CTF (MUS$ 148.25). The Technical Assistances (TA) for the "Development of the Wind Power Commercialization Program" and "Support Management of Wind Power Integration in Egyptian Power Market" are financed through CTF (MUS$ 1.5)

A Manual has been prepared in July 2010 for the Procurement activities of the Project and TA. This Manual included:- Description for the Project- Implementation Arrangement and Organization Charts - Procurement Arrangements and Procurement Strategy- Special Provisions in the Project Implementation- Planned Procurement Cycle (Procurement Time Plan) for the Project and TA- Decision Making Process Flow Chart

The Manual stated that the Procurement Plan will be updated at least every six months or as required to reflect the actual project implementation needs and improvements in institutional capacity.

The planning for the implementation of the Project was prepared in coordination with the planning for implementation of other related project listed below:(i) Construction of Suez Gulf 500/220 kV GIS substation financed through EDPs(ii) Extension of Samalaut 500/220 kV GIS substation financed through EDPs. (iii) Interconnection of Gabal El Zait substation and Suez Gulf substation to the 220 kV network

financed through EETC own resources.(iv) Wind Power Generation Projects

.Procurement Strategy included a Prequalification (PQ) Stage for the Project and EOI Stage for the TA. These stages were extended because of different reasons. Through these stages clear identification for procurement requirements has been gained (e.g number of applicants, their capabilities and experience and challenges related to the project). Also through these stages identification of the progress of the other related projects has been gained.

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Therefore; an update for the Procurement Time Plan for Suez Gulf/ Samalaut 500 kV OHTL and the TA has been prepared in this Report and a coordination with the implementation plan for the related projects is considered.

Note: All other items of the initial Manual remain unchanged these include: Description for the Project, Implementation Arrangement and Organization Charts, Procurement Arrangements and Procurement Strategy, Special Provisions in the Project Implementation and Decision Making Process Flow Chart.

I.2 INITIAL PROCUREMENT TIME PLAN:

A) For Suez Gulf/Samalaut 500 kV OHTL From To

1- Prequalification Stage: 23 May 2010 25 October 20102- Bidding Stage: 1 November 2010 19 October 20113- Contracting Stage: 20 October 2011 15 December 20114- Construction Stage February 2012 February 2014

B) For TA:

B1) TA for the Development of Wind Power Program From To

1- Selection of Consultant: 4 August 2009 15 September 20102- Preparation of RFP 15 September 2010 1 June 20113- Bidding for Developers: 1 September 2011 February 2013

B2) TA for Development of Guidelines for Integration of Large Scale Wind Farms From To

1- EOI Stage: 15 September 2010 15 February 20112- RFP till contracting: 15 March 2011 25 October 20113- Completion: 1 November 2011 1 September 2012

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CHAPTER IIUPDATE FOR PROCUREMENT TIME PLAN

This Chapter includes an update for Procurement Time Plan for the Project and TA

II.1 UPDATED PROCUREMENT TIME PLAN FOR SUEZ GULF/SAMALAUT 500 KV OHTL

II.1.1 Prequalification Stage (Completed):No. Activity Initial Time Plan Updated Time Plan

From To From To1 Prepare PQ Document 23 May 10 06 Jun10 23 May 10 11 Jun 102 EETC review 06 Jun 10 12 Jun 10 12 Jun 10 28 Jun 103 Incorporate EETC comments 13 Jun 10 16 Jun10 29 Jun 10 01 Jul 104 WB review 17 Jun 10 20 Jun 10 17 Jun 10 28 Jun 105 Incorporate WB comments 21 Jun 10 20 Jul 10 29 Jun 10 20 Jul 106 PQ submission 21 Jul 10 09 Sep 10 24 Jul 10 21 Sep 107 PQ Evaluation 11 Sep 10 10 Oct 10 22 Sep 10 31 Oct 108 EETC approval 11 Oct 10 17 Oct 10 01 Nov 10 30 Nov 109 WB approval 18 Oct 10 25 Oct 10 01 Dec 10 15 Jun 11

II.1.2 Bidding Stage:No. Activity Initial Time Plan Updated Time Plan

From To From To10 Preparation of Bid Documents 01 Nov 10 15 Jan 11 01 Nov 10 15 Feb 1111 EETC review and comments 16 Jan 11 25 Jan 11 16 Feb 11 25 Jun 1112 Incorporate EETC comments 26 Jan 11 01 Feb 11 26 Jun 11 01 Jul 1113 WB Review and comments 2 Feb 11 15 Feb 11 21 Jun 11 05 Aug 1114 Incorporate WB Comments 16 Feb 11 9 Mar 11 06 Aug 11 27 Aug1115 Package assembly, issuing Bids 10 Mar 11 16 Mar 11 28 Aug 11 04 Sep 1116 Bidding Period 17 Mar 11 9 Jun 11 05 Sep 11 30 Nov 1117 Evaluation, Envelop (A)

Identify clarifications required 09 Jun 11 09 Jul 11 01 Dec 11 01 Jan 12

18 EETC approval to obtain clarifications

10 Jul 11 20 Jul 11 02 Jan 12 10 Jan 12

19 Notify Bidders and obtain clarifications

21 Jul 11 30 Jul 11 11 Jan 12 30 Jan 12

20 Evaluate and issue envelope A evaluation report

31 Jul 11 09 Aug 11 31 Jan 12 09 Feb 12

21 EETC approval to open 10 Aug 11 17 Aug 11 10 Feb 12 17 Feb 12

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envelope B22 WB approval to open envelope

B18 Aug 11 31 Aug 11 18 Feb 12 04 Mar 12

23 Opening of envelope (B), evaluation and final recommendations

01 Sep 11 14 Sep 11 05 Mar 12 20 Mar 12

24 EETC Committee approval 15 Sep 11 28 Sep 11 21 Mar 12 05 Apr 1225 Issue Bid's Evaluation and Report29 Sep 11 05 Oct 11 06 Apr 12 15 Apr1226 WB Clearance 06 Oct 11 19 Oct 11 16 Apr 12 30 Apr 12

II.1.3 Contracting Stage:No. Activity Initial Time Plan Updated Time Plan

From To From To27 Contract Negotiation 20 Oct 11 09 Nov 11 30 Apr 12 21 May 1228 WB Clearance 10 Nov 11 23 Nov 11 21 May 12 04 Jun 1229 EETC Board approval 24 Nov 11 07 Dec 11 05 Jun 12 20 Jun 1230 Coordinate Contract execution 08 Dec 11 15 Dec 11 21 Jun 12 30 Jun 1231 Contract Award 15 Dec 11 15 Dec 11 30 Jun 12 30 Jun 12

II.1.4 Construction Stage:No. Activity Initial Time Plan Updated Time Plan32 Start Date Feb 12 Jul 1233 Complete Date Feb 14 Jul 14

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I.2 UPDATED PROCUREMENT TIME PLAN FOR TECHNICAL ASSISTANCES (TA):

II.2.1 TA for the Development of Wind Power Program

II.2.1.1 Selection of Consultant (Completed):No. Activity Initial Time Plan Updated Time

PlanFrom To From To

1 Selection of Consultant 04 Aug 09

15 Sept 10

4 Aug 09

9 May 11

2 Contract Signature 15 Sep 10

15 Sept 10

9 May 11

9 May 11

II.2.1.2 Procurement for DevelopersNo. Activity Initial Time Plan Updated Time

PlanFrom To From To

Stage I: Preparation and Issue of Bids 1 Draft Inception Report 15

Sept 10

15 Oct

10

10 May 11

27 Jun 11

2 Final Inception Report 28 Jun 11

15 Aug 11

3 Draft RFP for developers 16 Oct 10

16 Dec

10

16 Aug 11

12 Sep 11

4 Steering committee approval 17 Dec 10

13 Jan 11

13 Sep 11

22 Oct 11

5 RFP for developers published 14 Jan 11

15 Feb

23 Oct 11

20 Nov 11

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116 Question from bidders 16

Feb 11

15 Mar 11

21 Nov 11

24 Dec 11

7 Reply to bidders 16 Mar 11

04 Apr

11

25 Dec

11

15 Jan 12

8 Pre-bid meeting 01 May 11

01 May 11

10 Feb 12

10 Feb 12

9 Consolidated RFP & PPA final

02 May 11

01 Jun 11

11 Feb 12

01 Apr 12

End of Stage I 01 Jun 11

01 Jun 11

01 May 12

01 May 12

Stage II: Receive Bids, Evaluation, Contracting10Bids from developers due 01

Sep 11

01 Sep 11

11 Jul 12

11 Jul 12

11Evaluation of bids finalized 02 Sep 11

01 Nov 11

12 Jul 12

Sep 12

12Selected bidder announced Nov 11 Sep 1213Negotiation starts Dec 11 Sep 1214Execution of agreements Feb 12 Dec 1215Financial closure achieved Feb 13 Sep 13

End of Stage II

Construction time for the 250 mW wind power BOO project is estimated 18 monthPlanned Completion date: March 2015

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II.2.2 TA for Development of Guidelines for the integration of large scale wind farms into the Egyptian Power Market

No. Activity Initial Time Plan Updated Time Plan

From To From To1 Call and submitting of

EOI15 Sep 10

01 Oct

10

8 Mar

11

11 Apr 11

2 Short Listing & WB clearance

02 Oct 10

07 Dec

10

12 Apr

11

Aug 11

3 Preparation of RFP 08 Dec 10

23 Dec

10

Sep 11

4 WB No Objection on RFP 24 Dec 10

15 Feb 11

Sep 11

5 Submission of RFP to Firms 16 Feb 11

15 Mar 11

Sep 11

6 Submission of Proposals 16 Mar 11

20 May 11

Nov 11

7 Opening of Technical Proposals

20 May 11

20 May 11

Nov 11

8 Technical Evaluation 21 May 11

25 Jul 11

Jan 12

9 WB No Objection 26 Jul 11

31 Aug 11

Feb12

10 Opening of Financial 30 30 Mar 12

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Proposals Sep 11

Sep 11

11WB No Objection 01 Oct 11

07 Oct

11

Apr 12

12EETC approval 08 Oct 11

25 Oct

11

May 12

13Award Notification 01 Nov 11

01 Nov 11

Jun 12

14Contract Negotiation 02 Nov 11

01 Dec

11

Jul 12

15WB No Objection 02 Dec 11

20 Dec

11

Aug 12

16Contract Signature 25 Jan 12

25 Jan 12

Sep 12

17Contract Start Date 01 Mar 12

01 Mar 12

Oct 12

18Contract end Date 01 Sep 12

01 Sep 12

Apr 13

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CHAPTER IIIRELATED PROJECTS

III.1 RELATED PROJECTS:

Other Projects related to Suez Gulf/Samalaut 500 kV OHTL are listed below:1. Construction of Suez Gulf 500/220 kV GIS substation.2. Extension of Samalaut 500/220 kV GIS substation. 3. Interconnection of Gabal El Zait substation and Suez Gulf substation to the 220 kV

network (In/out of Zafarana/Hurgada 220 kV TL).4. Wind Power Generation Projects at El Zait and Suez Gulf sites.

Figure III.1 illustartes the interconnection scheme of the Suez Gulf 500 kV OHTL and its related projects.

III.2 IMPLEMENTATION PLANS AND STATUS OF RELATED PROJECTS:

III.2.1: Construction of Suez Gulf 500/220 kV GIS substation

The Suez Gulf GIS 500/220 kV 1x500 MVA substation is required to evacuate the wind power planned to be produced in Suez Gulf and Gabal El Zait Wind Farms and transmit this power to the 500 and 220 kV grids through the Suez Gulf/Samalaut 500 kV OHTL and In/Out of the under construction Zafarana II/Hurgada 220 kV TL as well as the new double circuit 220 kV TL.

The implementation for the substation will be through three Packages (Package A “Substation”, Package B “Transformers” and Package C “Telecommunication Systems”. Financed by European Development Partners (EDPs).

Planned Time Schedule:1. Specification Preparation for Packages A&B May/Jun 20112. Issue Bidding Documents for Packages A&B Aug/Sep 20113. Specification Preparation for Packages C Feb 2012 4. Issue Bidding for Package C May 20125. Contracting for Packages A&B May/Jun 20126. Contracting for Package C Feb 20137. Planned Construction Time Schedule:

For Package A 20 Month, for Package B 21 Month and for Package C 10 Month.

8. Completion of the Substation Dec 2013

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III.2.2: Extension of Samalaut 500/220 kV GIS Substation

The extension of the existing Samalaut 500 kV substation with one 375 MVA-500/220 kV transformer with its bays and two 500 kV feeder bays are required as part of the transmission infrastructure development for wind power development to evacuate about 3000 MW of wind power generated in the Gulf of Suez and Gabel El-Zait areas by year 2015 to center of loads in Egypt. The project will also reinforce the extra high voltage 500 kV network in the area between Middle Egypt zone and Canal zone (Red Sea Coast) and will improve the voltage level and system stability in the 500 kV and 220 kV grids.

Planned Time Schedule:1. Specification Preparation for Packages A&B Jun/Jul 20112. Issue Bidding Documents for Packages A&B Jul/Aug 20113. Contracting for Packages A&B May/Jun 20124. Planned Construction Time Schedule:

For Package A 12 Months, for Package B 13 Months, Completion of the Substation Jun 2013

Packages A, B will be financed by the EDPs, planned to be completed by Mid 2013.

III.2.3: Construction of Gabal El Zait/Suez Gulf double circuit 220 kV OHTL - 50 km Financed through EETC own resources and the schedule is under consideration.

III.2.4 Plan for Wind Power Generation Projects Development:- At El Zait 220 kV site:

460 MW will be constructed by the New and Renewable Energy Authority (NREA) financed by different financing agencies (EC, KFW, EIB, JICA, NREA) scheduled mid 2014

200 MW will be constructed with the participation of private sector scheduled end 2014

- At Suez Gulf 220 kV site: 380 MW will be constructed by NREA financed by different financing agencies (EU,

KFW, Spain, NREA) scheduled mid 2014 250 MW will be constructed with the participation of private sector under BOO

scheme scheduled Mar 2015- At Suez Gulf 500 kV site:

400 MW will be constructed with the participation of private scheduled mid 2014 500 MW will be constructed with the participation of private sector scheduled mid

2015

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500 MW will be constructed with the participation of private sector scheduled mid 2016

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W

W

Soukhna

Zafarana I-220 kV

To Suez Gulf ( Boot)

Zafarana II-220 kV

200 MW (end 14) 460 MW ( mid 14)

El-Zait -220 kV

Hurghada220 kV

305 MWexist

Suez Gulf 220 kV

380 MW (mid 14) +250 MW (BOO-Mar 15)

W

240 MWexist

Figure III.1: Interconnection Scheme of Suez Gulf/Samalaut 500 kV OHTL and its related Projects

Samalaut S/S 500/220 kVext. 375 MVA(Dec. 13)

Samalaut220 kV

Suez Gulf S/S 500/220 kV1x500 MVA(Dec 13)

Suez Gulf 500 kV

Samalaut500 kV

280 km

W 400 MW (mid 14) +1000 MW (BOO-15/16)


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CHAPTER IVCOORDINATION BETWEEN IMPLEMENTATION PLANS

Project Completion Date

1- Suez Gulf/Samalaut 500 kV OHTL July 20142- Suez Gulf 500/220 kV SS December 20133- Extension of Samalaut 500/220 kV SS December 20134- Wind Farm 250 MW BOO project March 20155- Other Wind generation Projects from mid 2014 till mid 2016

CHAPTER VCONCLUSION AND RECOMMENDATIONS

According to the current status and the planning for the Suez Gulf/Samalaut 500 kV OHTL and the planning of other related projects it is expected that the extension of Samalaut 500 kV Substation and the construction of the Suez Gulf Substation will preceed the completion of the TL by 6 month, the 250 MW wind power generation will be completed 9 month after the TL and the other wind farm projects (total of 2440 MW) will be completed consequently withing two years starting with the completion of the transmission line.

In conclusion the progress of the Suez Gulf/Samalaut 500 kV OHTL matches with the progress of all other related projects.

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