Lagos, the most populous city in Nigeria and across Africa, has over 20 million residents, making it the continent’s largest metropolitan area. As Nigeria’s financial center and economic hub, Lagos faces significant energy challenges, driven by rapid urbanization and increased economic activity. The energy demand in Lagos exceeds 6 gigawatts (GW), while current electricity supplied through existing distribution companies (discos) is less than 2 GW during peak times. This discrepancy has created an urgent need for sustainable energy alternatives beyond the national grid.
To bridge this gap, Lagos State has identified four hubs where gas-fired power plants can be established to meet the state’s energy demands. These new power plants will be situated near current discos’ substations within Lagos. The Lagos State Ministry of Energy and Mineral Resources (MEMR), in partnership with the Office of Public-Private Partnerships (OPPP) and various development partners, is inviting interested parties to express their interest in developing these power generation sites.
Each of the four hubs is expected to produce a minimum of 500 megawatts (MW) of electricity, with at least 100 MW generated by any participating firm in each hub. Qualified gas-fired Independent Power Producers (IPPs) and Power Solution Companies are invited to express their interest in creating power plants with at least 100 MW installed capacity for each hub within the Clean Lagos Electricity Market (CLEM).
Project Scope
The project scope includes, but is not limited to:
- Securing necessary financing for the power plants based on a Power Purchase Agreement (PPA) with CLEM
- Engineering, Procurement, and Construction (EPC) services for the power plants
- Commissioning and testing of the plants to ensure they meet grid performance standards
- Operating and maintaining the plants
- Securing a reliable fuel supply
- Generating at least 100 MW of electricity for each designated Clean Lagos Electricity Market hub
Requirements for Interested Parties
Interested bidders can be single companies or consortia with the required technical, financial, legal, and specialist expertise to carry out this project. If a consortium is submitting an EOI, it must include all required information in Paragraph 3.2 of the invitation and clearly designate a Lead Company. This Lead Company will be responsible for coordinating with the Project Delivery Team and managing the consortium’s performance.
Pre-Qualification Requirements
Prospective bidders should submit an Expression of Interest (EOI) with the following details to qualify for consideration:
Legal Status and Profile
- Provide the full name and contact information of each company involved, including postal address, contact address, phone, and email.
- Include a company profile with the management team’s professional certifications/licenses and CVs.
- Submit company registration documents, including the Certificate of Incorporation, copies of Memorandum and Articles of Association, CAC status report, director particulars, and share allotments (CAC 7 and CAC 2) or international equivalents.
- Outline the ownership structure, with shareholder names and their percentage of shareholdings.
- Present evidence of registration with the Lagos State Public Procurement Agency.
- Submit a Corporate Tax Clearance Certificate issued by the Federal Inland Revenue Service (FIRS), along with two personal tax certificates for at least two directors (for the past three years: 2021, 2022, and 2023) from the Lagos State Internal Revenue Service (LIRS).
- Show proof of filing up-to-date annual returns with the Corporate Affairs Commission, indicating active company status.
- Submit an affidavit disclosing any current or former affiliation of committee members with LASG, MEMR, OPPP, or related agencies.
- For foreign entities, all documents must be translated into English and certified by a competent authority.
Relevant Experience
- The bidder should have completed independent power projects in the last ten years with a combined capacity of at least 100 MW, including one project with a minimum single capacity of 10 MW through EPC.
- The bidder should have acted as an Independent Power Producer, EPC Contractor, or Operations & Management (O&M) contractor.
- Submit proof of relevant experience, including:
- Past experience with PPP transactions
- Record of successful PPP Grid Connected Power Project closures
- Descriptions of roles in at least three PPP Grid Connected Power or related transactions closed in emerging markets over the last ten years, with at least one closure in the past four years
- Appropriate skills and qualifications
- Contact information for a project referee
- Experience working in Nigeria or other sub-Saharan African countries
Financial Capability
- Provide audited financial statements for the last three years (2021, 2022, and 2023) along with recent management accounts (from January to September 2024).
- Submit evidence of PAYE remittance for Nigerian firms.
- Pay the EOI fee of N250,000 (two hundred and fifty thousand Naira) via Agency Code 75000, Revenue Code 33445, at any commercial bank authorized by the Lagos State Government (LASG). The payment should be made using the payer ID provided by LIRS.
- Submit proof of financial capability, such as availability of resources or access to funding from a reputable bank.
Submission of Bids
All EOIs must be submitted electronically on the Lagos State Public Procurement Agency’s e-procurement platform (lagosppa.gov.ng) by 17:00 West African Time (GMT+) on Friday, November 22, 2024. Registration on the platform is required for submission.
Please be aware that participants are responsible for covering all costs related to submitting their EOIs. This invitation is solely for shortlisting qualified candidates. It does not constitute a contract or any commitment to proceed with any particular party. Responding to the EOI does not entitle any party to any claims against LASG, MEMR, or OPPP.
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