Name and Location
Kudu gas-to-power project, near Oranjemund, Namibia.

Client
Nambia Power Corporation (Nampower).

Project Description
The project involves the development of the Kudu gasfield, located off Namibia, which contains an estimated 1.3-trillion cubic feet of gas.

The gas produced will be delivered to an 800 MW combined-cycle gas-powered station, 25 km outside Oranjemund, through a 170-km-long pipeline.

The project will be connected to the Namibian and South African grids.

NamPower will buy power from the plant under long-term power purchase agreements for local and regional use.

Value
The project is estimated at $1-billion.

Duration
The 36-month construction phase is scheduled to start during the fourth quarter of 2014, with commissioning of the power station in the second half of 2017.

Latest Developments
NamPower has approved a shortlist of 15 international companies and consortiums that have applied to participate in the engineering, procurement and construction (EPC) tender for the design, supply, manufacture, delivery, erection, testing and commissioning of the 800 MW Kudu power station.

The power utility received 45 prequalification tender bids for the combined-cycle gas-turbine plant.

Two of the 15 shortlisted parties were consortiums comprising South African companies. Iberdrola Engineering and Construction is a consortium comprising partners from Spain and South Africa, while the SNC-Lavalin and General Electric consortium comprises Canadian and South African partners.

The other shortlisted companies that complied with the qualification criteria and that have advanced to the full EPC tender are GS Engineering and Construction, from Korea; Posco Engineering and Construction, from Korea; Hyundai Engineering and Construction, from Korea; Cobra Instalaciones y Servicios International, from Spain; Sumitomo Corporation and Mitsubishi Heavy Industries, from Japan; Technicas Reunidas, from Spain; Ansaldo Energia, from Italy; Siemens, from Germany; General Electric Company, from the US; Alstom, from Switzerland; Shanghai Electric Group, from China; Daewoo Engineering and Construction, from Korea; and Shaw Power International, from the United Arab Emirates.

NamPower will award the contract for the EPC tender in the second quarter of 2014.

Meanwhile, NamPower is also seeking investment partners for the Kudu project.

The potential strategic equity investor (SEI) for the much delayed 800 MW gas-to-power project will be selected through a competitive bidding process, which started on July 19, after NamPower issued tender prequalification questionnaires.

The company will evaluate prospective bidders’ financial and legal positions, technical and management expertise and project references, as well as their insurability, compliance and quality assurance, besides other requirements.

Enquiry documents are expected to be sent to the prequalified tenderers during the third quarter of 2013, with the SEI selection expected early during the fourth quarter.

The closing date for the SEI prequalification is midday August 9.

Key Contracts and Suppliers
Kudu Gas Field Upstream Developers (project development agreement); Ernst & Young, Strategic International Advisory, DLA Piper and ESB International (transaction advisors).

On Budget and on Time?
Not stated.

Contact Details for Project Information
NamPower, tel +264 61 205 2338, fax +264 61 205 9338 or email kudupower@nampower.com.na.