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Dear Sir / Madam:
We kindly request you to submit your Proposal for 2015/07/RFP – Study Tour to Czech Republic to Learn Experience in Small Hydro Power Development (Kyrgyzstan)
Please be guided by the form attached hereto as Annex 2, in preparing your Proposal.
Proposals may be submitted on or before 16:00 CET, 23 April, 2015 via courier mail to the address below:
UNDP Istanbul Regional Hub for Europe and the CIS
Key Plaza, Abide-i Hürriyet Cd. İstiklal Sk. No/11, Şişli, 34381, Istanbul, Turkey
Mr. Murat Akin, Procurement Manager
Proposal must be expressed in the English, and valid for a minimum period of 120 days.
In the course of preparing your Proposal, it shall remain your responsibility to ensure that it reaches the address above on or before the deadline. Proposals that are received by UNDP after the deadline indicated above, for whatever reason, shall not be considered for evaluation.
Services proposed shall be reviewed and evaluated based on completeness and compliance of the Proposal and responsiveness with the requirements of the RFP and all other annexes providing details of UNDP requirements.
The Proposal that complies with all of the requirements, meets all the evaluation criteria and offers the best value for money shall be selected and awarded the contract. Any offer that does not meet the requirements shall be rejected.
The objective of the project “Small hydro power (SHP) development in Kyrgyzstan”, implemented by UNDP with grant financing of GEF is to accelerate electricity generation in Kyrgyzstan by leveraging in private sector investment. This, in turn, is expected to generate global benefits of reducing CO2/yr tons thereafter in avoided greenhouse gas (GHG) emissions. The project will do this by introducing a competitive private power framework to supply the grid with SHP-generated electricity at market-determined prices, assist the Government in closing private sector funded SHP investments.
With a per capita GDP of US$ 600, the Kyrgyz Republic is among the poorest countries in the world, while at the same time it is among 30 most GHG intensive economies globally. Despite nearly universal 98% grid connection rate, since early 2000 inadequate access to electricity services has attained a chronic character in Kyrgyzstan, which has by now translated into the biggest energy crisis. The shortfall between demand and supply is exacerbated by high losses within the extensive, inefficient and obsolete distribution system, which in 2012 were estimated at 25% of total electricity distributed (or 4.9 billion kilowatt hours). Current power supply in many regions is characterized by frequent interruptions due to load shedding. Consequently, many households and enterprises were forced to switch to individual diesel and mazut (heavy oil)-fired generators to provide for back-up power when grid supply is not available. The Kyrgyz Republic views the expansion of generation capacity - primarily via the construction or expansion of large dams and fossil fuel-based plants in Bishkek and Osh - as central to its longer-term development prospects. However, in light of their large capital requirements and long gestation periods, these projects are very unlikely to materialize in short- or even medium-term. As an alternative, faster and climate-friendly solution to the acute energy crisis in Kyrgyzstan, this project will support the Government of Kyrgyzstan in harnessing its abundant small-hydro power potential based on the premises that smaller, more labor-intensive projects with lower capital requirements and shorter implementation periods represent a more economically and environmentally viable option. According to EBRD, by absolute indices of potential hydro resources and by concentration of potential hydro resources on the territory, Kyrgyzstan is ranked third among the CIS countries, after Russia and Tajikistan. The largest small hydropower potential is concentrated in northern, southern and eastern districts of the Republic. Its hydro potential electricity generation is estimated to total 163 TWh/yr, while only 73 TWh/yr is technically feasible and 48 TWh/yr economically exploitable. Roughly 162 MWh/yr is currently being exploited. During the Soviet era, Kyrgyzstan was assigned the role of providing hydro generation to the regional interconnected system. But the policy of the former USSR was to focus primarily on the construction and exploitation of large projects. As a result, many small plants (mainly up to 10 MW) that were in operation in the 1950s and 1960s were abandoned. At the moment, out of total 18,500 MW of installed hydro power capacity, only 32 MW constitute small hydro plants, all of them are more than 40 years old and in dire need of modernization.
According to the World Small Hydropower Development Report of 2013, the Czech Republic has already developed a major part of its small hydro potential. The report also refers to systematic growth in installed capacity of 2.5 MW/year that was observed in the last 10 years. In 2010, the Czech Republic had 1,452 small hydropower plants and a total installed capacity of 297 MW, generating 1,159 GWh per year.
The Czech Republic experience with small hydro-plants and similarly to KGZ, its operations were restricted during the socialist era as they were seen as competitors to the larger enterprises. Roughly 1/4 of the total hydro energy production is through small hydro plants (SHP) under 1MW and roughly 1/4 is through SHP between 1-10 MW. The Czech Republic has practical experience in installation of hydro plants and in attracting investors into SHP construction. So far it has greatly progressed opening up great potential and opportunities for the development of SHP. State programs such as National Renewable Energy Action Plan stimulating private investment through CzechInvest and support to Investment projects via ECO-ENERGY Programme was of great contribution to lure investments that resulted in eighteen projects in 2010 with the total amount of support over €11 million and the mean share of 35 per cent of the investment cost. Support mechanisms for small hydropower in the Czech Republic reflect economic aspects of the small hydro investment process and its significance for the grid.