Client: Geothermal Development Company
POWER is providing tendering and contractual support to Kenya’s Geothermal Development Company (GDC) for its first well head generation project as part of the development of the Menengai geothermal field for the production of electricity. The support is intended to provide the new agency with sufficient skills in tendering and contracting through technology transfers to allow it to successfully continue the well head generation program without assistance as it develops Menengai over the next two decades. POWER’s support included:
- Tender evaluations of the first well head generation project from potential Build-Own-Transfer (BOT) contractors. POWER provided technical review of the generation technologies proposed by the tenderers to determine their suitability for the well head application.
- Risk management training to identify the issues raised through the tendering process and the developing the methodologies for mitigating these open items which may create liabilities for the GDC. POWER conducted a three-day seminar with the GDC’s staff in Nakuru, Kenya, on ways to improve the company’s tendering processes and tendering documents and, in doing so, to reduce its contractual risks within this program.
- POWER is providing transactional support to assist the GDC in the contract negotiations of the first well head generation BOT contract. POWER acted as GDC’s representative in the negotiations with the country’s selected contractor for the first well head project.
The GDC is charged with maximizing the country’s use of its geothermal resources along the East African Rift for the production of electricity. A new agency under the Ministry of Energy, the GDC is undergoing internal structural organization with assistance from POWER as it begins development of the country’s geothermal resources. The GDC has targeted increasing its electrical production through geothermal resources by 5,000 MW by 2030.