Partner selection is started for new cogeneration power plant projects
State-owned energy group Lietuvos Energija is starting the selection of partners interested in joint development of new cogeneration power plant projects in Vilnius and Kaunas. In the first stage of the selection, all legal persons compliant with published selection pre-qualification criteria can submit applications till 19 October.
All interested investors can take part in the partner selection procedure regardless of whether they participated in the market research conducted in June - July - a call is public and published online at www.kogen.lt.
“In order to ensure a transparent and non-discriminatory selection procedure, we will evaluate and compare all tenders of potential partners in accordance with a unified methodology, which will be made public. We have prepared the methodology given the results of the research completed in July, which revealed the possibilities available in the market and expectations of potential partners. Final winners of the procedure will be selected in an objective manner, having assessed tenders, which best meet project goals” - said Director General and Chairman of the Board of Directors of Lietuvos Energija, UAB Dr. Dalius Misiūnas.
The selection of partners of biofuel and waste-fired cogeneration power plant projects will take place in several stages. In order to evaluate the compliance of contest participants with qualification criteria, in the first stage participants will be asked to submit an application and documents evidencing their reliability (reputation, compliance with laws), financial capacity and other necessary documentation.
Participants in the selection procedure, which meet the criteria set, will be presented with legal and economic framework of projects proposed by Lietuvos Energija, assumptions for the preparation of tenders and other important information necessary for the preparation of tenders. The next stage will comprise the execution of a dialogue procedure, allowing potential partners to comment and make proposals on drafted assumptions. Upon the submission of tenders and the evaluation thereof, consultations with partners having submitted best tenders will be held, and finally a cooperation contract will be signed. The plan is to have partners having presented best tenders selected by the end of this year.
Summarized information about the course of procedures, questions and answers relevant to all participants planning to submit applications will be publicly available online at www.kogen.lt. After the first stage, relevant information will be presented to participants in the selection procedure, which meet the criteria set.
For an efficient implementation of cogeneration power plant projects, Lietuvos Energija entered into preliminary agreements with consulting companies Teisingi Energetikos Eprendimai, Cowi Lietuva, VPC and Sweco Lietuva. Services of the companies, such as territory planning, environmental assessment, technology audit, feasibility study and other services, will be used based on need, announcing an additional procedure for renewed competition between companies for each specific service; the total scope of the services shall not exceed LTL 5.8 million over a period of three years.
During the research conducted in the summer, 26 economic entities from 12 different countries expressed their interest in the development of new biofuel and waste-fired cogeneration power plants in Vilnius and Kaunas.
More information about projects:
The plan is to have modern waste and biofuel-fired power plants installed in Vilnius and Kaunas, which will produce heat and electricity ensuring 30 percent lower heat production prices for consumers of these cities as compared to 2013, also, will generate about 60 percent of heat demanded by these cities and ensure more than one tenth of electricity necessary for Lithuania per year (1.1 TWh).
The Government has declared the projects of new power plants as economic projects of national importance. The implementation of the projects will contribute to the implementation of goals and tasks of the National Energy Strategy and the National Heat Sector Development Programme - natural gas used in the production of heat and electricity will be replaced with local and renewable energy sources, thus increasing energy independence of Lithuania from the import of fossil fuel, i.e. natural gas.
The National Heat Sector Development Programme provides for the fact that a preliminary investment amount into the projects could total about EUR 138.4 million in Kaunas and EUR 328.4 million in Vilnius. Both technical parameters of power plants and the investment amount can change upon the selection of optimal solutions together with partners. The share of capital of potential partners in future special purpose companies can account for up to 49 percent.
