ETHIOPIA: Tulu Moye Geothermal launches call for tenders on phase I of its project

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ÉTHIOPIE : Tulu Moye Geothermal lance un appel d’offres pour la phase I de son projet©Peter Gudella/Shutterstock

Tulu Moye Geothermal Operations has just launched a bidding process to select a partner to carry out the first phase of the Tulu Moye geothermal project in the Ethiopian Rift Valley, through a procurement, engineering and construction (PECC) contract.

The Tulu Moye geothermal project in the Rift Valley in southwestern Ethiopia is taking a new step forward. Tulu Moye Geothermal Operations, the ad hoc company created to manage the project, has recently issued a call for tenders for the procurement, provision of engineering and construction services for the completion of Phase I of the 50 MW capacity project.

Applicants have until April 24, 2019 to apply. The successful bidder will be responsible for drilling about ten production wells, as well as two injection wells. It will then build a steam collection and injection system, followed by the installation of a water-cooled condensing steam plant. Finally, it is planned to build a switchyard and a 230 kV transmission line to connect the plant to the grid from Koka-Wakena substation, some 30 km from Addis Ababa, the Ethiopian capital.

A $260 million investment

The company selected for the first phase of the Tulu Moye geothermal project will also have the opportunity to negotiate a contract for the maintenance and operation of the future plant. Its construction will require a $260 million investment. These funds will come from loans (70%) contracted with partners, supplemented by Tulu Moye Geothermal Operations’ own funds. It is worth noting that the project company is owned by TM Geothermal Operations Ltd (TMGO), which is in turn owned by Meridiam Infrastructure Africa Fund (an investment fund owned by the French company Meridiam and Reykjavik Geothermal, editor’s note) and the Icelandic company Reykjavik Geothermal (RG).

The Tulu Moye geothermal project will produce 520 MW of electricity, after a $2 billion investment over an eight-year period. The first phase of this call for tenders will be put into commercial service in December 2021. Phase II of the project (50 MW), will start before the financial closure of the first phase planned for 2020. The other two phases will produce 320 MW. The overall production from the facility will be sold to Ethiopian Electric Power, which provides public electricity service in Ethiopia, under the power purchase agreement (PPA) signed in 2017.

Jean Marie Takouleu

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