Announcement

REQUEST FOR EXPRESSIONS OF INTEREST
SELECTION OF INDIVIDUAL CONSULTANT
ECONOMIC AND FINANCIAL APPRAISAL OF THE
POTENTIAL GEOTHERMAL POWER PLANT
Ref: GT-CS-6/2012
REPUBLIC OF ARMENIA
ARMENIA GEOTHERMAL  PROJECT
PROJECT ID NO. P114409
GRANT  TF 093653
EXPRESSIONS OF INTEREST
This request for expressions of interest follows the General Procurement Notice for this project that appeared in UN DG Market Gateway on December 8, 2008.

The Republic of Armenia has received a Grant from the Global Environment Facility (GEF) toward the cost of the Armenia Geothermal Project, and intends to apply part of the proceeds for consultant services.

The selection shall be made on the basis of Individual Consultant (IC) method in accordance with the “ Guidelines: Selection and Employment of Consultants Under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” (January 2011).

The objective of the assignment is to conduct economic and financial appraisal of the potential geothermal power plant at Karkar site based on the findings of technical field scouting works, MT sounding study, 3D MT sounding survey as well as independent interpretation of results of MT and 3D MT study. The main tasks of the assignment include:

Task 1: Development of preliminary power plant concept:

·    Estimate of the temperature and other key parameters of the Karkar site.
·    Identification of the thermal cycle options based on the fluid parameters with maximum likelihood (enthalpy, well head pressure, well deliverability curve, minimum fluid separation pressure, etc.).
·    Estimate of the annual potential of the geothermal well(s).
·    Assessment of the total capital and O&M cost.

Task 2: Analysis of economic and financial viability of the project:
·    Assessment of economic viability of the project. The Consultant should estimate the levelized economic cost of the proposed geothermal power plant and determine how the estimated levelized cost compares with other base-load plant options for generation expansion in Armenia (including new nuclear and CCGTs). The economic assessment should be conducted taking into account the estimated average supply cost for the base-load type plants as discussed in the Armenia Energy Sector Issues Note (October 2011), prepared by the World Bank.
·    Assessment of financial viability of the project. The Consultant should assess the financial viability of the project based on the estimated financial costs and benefits. Financial analysis should be conducted assuming a base-case electricity tariff equal to the levelized economic cost, estimated under previous activity, and a base-case WACC assuming a public project with 100% debt financing.
·    Sensitivity analysis to estimate the impact of changes in key variables/inputs (including but not limited to well productivity, capital costs, tariffs) on the estimated economic and financial viability of the project.
·    Preparation of  justification whether exploratory drilling at the Karkar site is feasible given the results of economic and financial appraisal.

Qualification criteria:
-    At least Master’s Degree in engineering, energy, economics, finance or MBA;
-    At least 8 years of relevant international experience in economic and financial appraisal of energy projects, including feasibility studies, pre-feasibility studies, assessment of impact of energy sector investments, preparation of energy sector notes, investment planning, generation option studies.
-    Experience in Armenia energy sector, including experience in preparation of feasibility studies, energy sector notes, and other analytical pieces under international and bilateral donor-funded projects;
-    Fluency in spoken English and strong written English skills are mandatory.

The Armenia Renewable Resources and Energy Efficiency Fund now invites interested candidates to express their interest in providing the services by submitting CV in English and Cover Letter addressed to the director Ms.Tamara Babayan by email or the address below by May 11, 2012, 18:00 (GMT+4:00).

Interested candidates may obtain further information at the address below from 9:00-18:00 (GMT+4:00).

Armenia Renewable Resources and Energy Efficiency Fund
Address: Proshyan str. 1st Lane, House 32
Attention: Tamara Babayan
City Zip code: Yerevan, 0019,
Country: Republic of Armenia
Phone/Fax #: 37410 – 588011 
E-mail: g.zara@r2e2.am; info@r2e2.am
Web site: www.r2e2.am