Feasibility Study and Development of New Business Model for Solar District Heating... Tender

Procurement Summary

Country : South Korea

Summary : Feasibility Study and Development of New Business Model for Solar District Heating Pilot Project

Deadline : 29 Feb 2024

Other Information

Notice Type : Tender

TOT Ref.No.: 96368809

Document Ref. No. :

Competition : ICB

Financier : Other Funding Agencies

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Tenders are invited for Feasibility Study and Development of New Business Model for Solar District Heating Pilot Project in Sainshand, Dornogovi province of Mongolia.

SCOPE OF WORK:
In order to meet the objectives above, the Consulting Firm shall undertake the following main tasks:
a) Full Technical Feasibility Study and technical design of the pilot project;
b) Definition of the Project by reviewing all available technologies in the market and propose the most applicable one to the site with significant justification compared with other technologies;
c) Long-term investment strategy and tariff plan to create sustainable business environment;
d) Financial analysis and preparation of the financial model;
e) Environmental and social safeguard assessment;

The detailed expectations of the above tasks shall include, but not limited to:

a) Provide an overview of SDH systems, requirements, technological options, and various tradeoffs in terms of cost, time, quality, etc.
b) Review all available technologies in the market and recommend the International Electrotechnical Commission (IEC) complied technology for the project;
c) Assess the feasibility of an SDH plant to complement existing coal-fired heat only boiler in Sainshand and determine the optimal technical design including technology, size, storage, also determine the potential financial mechanism applicable to support the project using any source of investments. The feasibility assessment shall consider the following parameters:
i) Solar irradiation (PVsyst analysis and production estimation using Solargis);
ii) Pipe heat loss and end-user receiving temperature calculation using both possibilities by using current infrastructure, then including potential expansion and upgrade expected on the project;
iii) Estimated solar and heat output to determine the exact amount of its usage expected for the number of households, number of people, etc.,
iv) Storage size and type of technology mostly applicable for the chosen province center and other potential provinces which can apply similar method of financing to implement such SDH project
v) Cost estimation and financing mechanism that is most applicable to create project-s bankability status without harming the currently applicable end-user bills dramatically.
d) Provide a detailed description of the recommended SDH system from generation to end-users by preparing comparison scheme taking business-as-usual (BAU) coal heat only boiler model into account to present main advantages and improvements of integration from new system.
e) Draft detailed design specifications and technical requirements and standards
f) Carry out preliminary land area identification and land survey to access the soil condition and load bearing capacity and recommend the kind of foundation and storage required for the solar panels considering the maximized life expectance of the plant. This part of the study shall detail the project layout and land usage;
g) Describe any additional requirements for effective design and operation including water availability and water filtering requirements, distribution network requirements, any complementary investments to existing infrastructure to optimize use of the current system and newly proposed SDH, etc.
h) Conduct financial analysis and prepare financial model, including:
i) Calculation of detailed financial indicators such as the net present value (NPV) and financial rate of return (IRR);
ii) Propose required tariffs (end-user tariff, production tariff etc., ) for heat and hot water to sustain the proposed investments model;
iii) Propose investment plan (i.e. grant mechanism, government subsidy, senior loan etc., ) to demonstrate the most applicable financial options
iv) Sensitivity analysis for the most impacting variables (components from CAPEX, operation and maintenance costs)
v) Assess and confirm the anticipated investment cost (CAPEX), its relevant breakdown year by year in the form of waterfall analysis, same applies to operating costs (OPEX), the cost of training specialists to work on the project, as well as relevant insurance, tax and any other expenses related to the plant operation over the project lifespan;
vi) Assess and confirm the anticipated revenue relevant to the hot water production estimates and heat generations over the project lifespan;
vii) Assess and analyze the budget and prepare financial forecast including an economic cost-benefit analysis (“CBA”) of the project to confirm the viability of the project from both technical and economic aspect in the context of Mongolia and similar projects in similar weather conditions;
viii) Provide editable Excel version of the financial model with user manual to GGGI to illustrate the calculation methodology understandable to all stakeholders;
i) Assess project-s implementation and other major risks and recommend mitigation / elimination actions, where possible;
j) Draft and develop implementation strategy to expand the project awareness to all local end-users in collaboration with the heat distribution company;
k) Analyze and review the opportunity for public sector participation, if any, e.g. implementation of the project by public entity under Engineering, Procurement, Construction (EPC) arrangement, including the involvement of both public and private sector for the operation and maintenance part of the project;
l) Provide technical datasheet of the proposed main equipment, and its specification that meet the local requirements for integration with the existing system and delivery heating requirements in the climate conditions
m) Provide and prepare a study report to the international standard set by the IFC in relation to the financing of international projects of this nature;
n) Evaluate the environmental, health, safety and social aspects of the Project components, and carry out a preliminary Environmental and Social Assessment and project area screening of the selected site against MAF Facility environmental and social safeguard requirements, to identify its environmental and social risks, impacts and benefits, and to structure the Project to comply with Mongolian Law. The Consulting Firm shall agree on the template for the ESS Assessment with GGGI, which must be aligned with the MAF templates and practical to feed into the overall design of the project
o) Prepare detailed summary of the feasibility study in the form of ppt to aid feedback and discussion with stakeholders.

HOW TO OBTAIN THE DOCUMENTS:
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Documents

 Tender Notice