Support for installation of 1 MW biomass based project in Industry in Pakistan

Item Description:

The UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION (UNIDO) hereby invites you to submit a written proposal for a project of renewable energy technologies of installed capacity of a 1 MW biomass plant (thermal and/or electrical).

This Request for Proposal (RFP) is issued to receive proposals from interested potential biomass based power and/or heat generation (designed predominantly for on-site use) investment entities in small to medium scale industries where the developer/investor will provide counterpart funding to realize the project. Project could consist of a completely new biomass heat and/or power system or an upgrade of an existing system to a more efficient system
Proposal to be submitted must comply with the following overall criteria:
1. The total investment/capital cost of the new installation project should not be less than the cut-off amount of US$ 0.5 million. Out of this total capital cost, the component to be supported by UNIDO/GEF project grant must not exceed 10% of cut-off amount i.e. will not exceed US$ 50,000.00.
2. At least 70% of the annual energy generated from the project must be using biomass fuel. The project proponent will be required to provide proof of biomass availability on-site or in the case of external purchase binding biomass fuel purchase agreement(s).
3. GEF/UNIDO project support to the project will be based on incremental cost reasoning. The incremental costs have to be justified by the developer/investor and verified by UNIDO.
4. Incremental costs to be supported by the project could be a combination of services and equipment supply depending on the needs of the project.
5. The support from this project will focus on the actual implementation of the investment project, not feasibility studies.
6. The project should have minimum installed capacity of 1 MW (electrical) for both new and upgradation projects. Combined heat and power (CHP) applications and biomass gasification systems are welcome, where possible.
7. The project should be an industrial captive use project and may or may not supply surplus electricity to the national grid. If part of the electricity generated from the demonstration project is to be connected to the national grid or private consumers, the project developer/investor will make an undertaking to secure all the requisite agreement (s), permit (s) and approval (s) including Generation License, Distribution License (if required), Energy Purchase Agreement (EPA) within 6 months of being awarded the grant contract.
8. The developer/investor has to prove that the proposed demonstration project is commercially viable and must have high replication potential in Pakistan. Documented proof of the assessment of the replication potential of the project must be provided.
9. This call is open to private and public industrial concerns interested in investing in biomass based captive power and/or process heat.
10. Economic payback period for the project should be within 5-7 years or little above – factoring in the grant component.
11. The project design, the quality of equipment, construction or installation and the operation (maintenance) of the system must ensure a plant life time of at least 15 years.
12. The beneficiary should have the management and the technical capability to operate the project and should have a good economic basis to repay loans, provide the required security and the required counterpart funding.

Alex Eruwa – a.eruwa@unido.org, Tel: +43 01 26026
Email: a.eruwa@unido.org
First name: Alex
Surname: Eruwa
Telephone country code: Austria (+43)
Telephone number: 01 26026
Telephone extension: 3612

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