Background

The leading humanitarian organization is committed to improving its environmental performance, climate compatibility, and resource efficiency by reducing its use of fossil fuels, purchasing green energy from reliable suppliers, and undertaking other sustainability initiatives.

The organization's compounds, premises, and offices generate greenhouse gas emissions amounting to an estimated 97,136 tons of CO2 annually. One major source of emissions is linked to the fact that they run diesel generators, particularly in large field compounds in ‘deep field’ Africa operations. Converting these compounds to solar energy could have both a positive carbon impact and a positive financial impact since solar energy is expected to be cheaper than existing diesel/fossil fuel generation in many geographies.

Purpose of the tender

The organization is currently targeting the implementation of a lease agreement in a set of sites: (1) in Kenya and (2) in Uganda. The ultimate objective is to move to a cleaner way of electrification by transitioning the majority of operations onto renewable energy. 

The key objectives in this procurement are to:

• Source clean energy for the facilities that do not have access to stable and/or renewable energy

• Source affordable energy ensuring that there is no additional cost burden with the transition of the energy system

• Source reliable energy, thus reducing the administrative burden on the staff in deep-field compounds

• Reduce the organization’s carbon footprint by reducing its dependence on fossil fuels in many of its locations

Scope and model

• The scope of AGT is to design, finance, engineer, procure, deliver, construct (EPC), install, operate and maintain, and keep the asset ownership of a hybrid solar infrastructure system with batteries and a diesel generator as a backup to ensure reliable energy supply 24/7

• AGT AG will take full end-to-end responsibility during the construction and full end-to-end responsibility during the lease period

• AGT will work with local subcontractors in the two countries who are responsible for e.g. site clearance, construction, electrical work, etc.

Contract model  

• The model will be a Build-Own-Operate model for three (3) sites located in Kenya (Kakuma) and Uganda (Adjumani and Yumbe). 

• The projects will be contracted with the organization with a long-term lease agreement for initial 10 years. 

• The organization will pay fixed monthly USD leasing rates per kWh over 10 years.

Benefits of the Project

• the organization as a trustworthy and prestigious partner

• Fixed leasing agreement for 10 years

• Fixed return (to be defined together)

• No local currency risk because the organization pays in USD

Timeline

• Target Condition Satisfaction Date: 6 February 2023

• Target Commercial Operations Date: 7 months from Effective Date

• Long Stop Commercial Operations Date: 6 December 2023

Until the Target Condition Satisfaction date, we need to provide the organization with certain documentation.

The Target Commercial Operations date is foresighted to be 6 September 2023 (7 months from 6 Feb). We shall ensure that all installations are done by then and that the systems are operating properly. Nevertheless, this is a target. 

The Long Stop Commercial Operation date remains to be 6 December 2023. In case the systems are not operating by 6 December 2023 the organization might cancel the contract and/or charge penalties.