BONNY UTILITY COMPANY- INVITATION FOR THE EXPRESSION OF INTEREST FOR PROVISION OF ELECTRIC POWER TO BONNY ISLAND, RIVER STATE

by

BUC
BONNY UTILITY COMPANY
INVITATION FOR THE EXPRESSION OF INTEREST FOR PROVISION OF ELECTRIC POWER TO BONNY ISLAND, RIVER STATE

INTRODUCTION

In 1998, the oil and gas companies operating on Bonny Island came together to sign a Memorandum of Understanding (MoU) with the Bonny Kingdom Development Committee (BKDC). This MoU established a framework for providing the Bonny Island community with essential utilities, including electricity and potable water. The companies executed several utility projects on the Island including upgrading the Bonny electricity distribution network and refurbishment of water treatment plants.

However, to properly effect the objectives of the MoU on a larger scale across Bonny Island, the Bonny Utility Company (BUC) was incorporated in 2007 to provide technical and management services for the maintenance and operation of utility systems on Bonny Island.

BUC Board of Directors oversees the operations of BUC and its projects within the Community. The Board is composed of representatives of LNNG, Bonny Kingdom Development Committee, Rivers State Ministry of Power, and Bonny Local Government Council. The daily operations of BUC and its projects are managed by a team led by a General Manager seconded from NLNG.

Over the years, Bonny Island has experienced steady economic and population growth, which has placed increasing pressure on BUC’s existing electricity infrastructure. As a result, frequent power outages and load shedding have become necessary to manage the ongoing electricity shortage. This challenge is expected to continue and likely worsen with the completion of the Bonny-Bodo Road project, which will lead to a further influx of people and economic activity, thereby increasing the demand for electricity on the Island.

BUC currently has an installed capacity to receive 20MW of electricity for distribution within the community. The company operates two major substations (33/11KV) to distribute power across Bonny Island. Current estimates indicate that an additional 30MW of power generation will be required to meet both the current demand and future growth projections up to 2040.

To meet the current and growing demand for reliable electricity on Bonny Island, BUC is inviting Independent Power Producers (IPPs) to generate electric power for supply to the communities. Companies with the necessary experience, as outlined below, are encouraged to express their interest in participating in the tender process for generating up to 60MW of power and supplying it to various consumer categories on the island at economically viable rates.

SCOPE

The scope of work shall include the following:

POWER GENERATION

  • The successful company is expected to complete an energy audit to estimate current and future power supply gap and to generate sufficient power for the entire community on the Island. This could be achieved in stages to match electricity demand growth in the community. The successful company is also expected to access and determine an optimal environmentally friendly technology to be deployed for power generation.
  • Bonny Island is currently not connected the national grid; however, the successful company may consider connecting to the national grid if considered commercially attractive without eroding reliability of power supply in the community.

TRANSMISSION AND DISTRIBUTION

  • BUC has two high voltage substations that receives 33/11KV for distribution to the Island community. The successful company will utilize the existing distribution network and expand the network as the need arises.
  • BUC also has over 70 medium voltage transformers that feeds existing customers. The successful company will take over the distribution transformers and expand the network as the need arises.

METERING

  • BUC currently has a pre-paid energy metering system for its individual customers. The successful company will leverage the existing metering infrastructure and may install its smart meters to properly manage the business from end to end.

SPECIALIZED MANPOWERED RESOURCES

  • BUC has component workforce that can be relied on. However, the successful company should be ready to provide specialist manpower to manage core technical roles in generation, transmission and distribution system.

COMMENCEMENT AND DURATION

Commencement date to take over and operate existing infrastructure should be from December 2025 or earlier and build and operate additional required infrastructure including building new power plant by 2028.

PRE-QUALIFICATION

Only companies considered to meet BUC’s pre-qualification requirements shall receive further correspondence from BUC, including receipt of invitations to tender for THE PROVISION OF ELECTRICITY TO THE COMMUNITY IN BONNY ISLAND.

To qualify for consideration, interested companies are required to respond to this invitation with the following information/documents for consideration. Failure to submit any of the under-listed documents may lead to disqualification.

  1. Confirmation of interest to participate in the pre-qualification exercise for the services state above.
  2. Certificate of Incorporation and Corporate Affairs Commission documents (forms CO2 and CO7 or their replacements).
  3. Vendor’s Health Safety & Environment Policy.
  4. Vendor’s Quality Management Policy and relevant certifications.
  5. Company Profile, organization, size, and structure including any parent, technical partnership, alliance, or joint venture of companies to whom they belong, together with.
  6. CV of the vendor’s management team.
  7. CV of key technical personnel within the organization available for the work.
  8. Evidence of relevant and applicable license issued by the Nigerian Electricity Regulatory Commission (NERC) or any successor regulatory body and any other relevant license and permits.
  9. Detailed list of relevant experience with evidence to demonstrate capability and experience in undertaking/completing power generation, distribution and management of power system related to the provision of the subject matter based on the requirements stated above within the last 5 to 10 years. Kindly indicate names of clients, location, and cost or capacity of power system provided.
  10. Detailed list of owned/leased equipment/machinery including evidence of certification proposed for the project.
  11. Financial audited accounts for the last three (3) years and evidence of capacity to fund the project if successful. Also, provide evidence of non-encumbrance and financial capacity to handle the power system for at least three (3) years.
  12. Tax clearance certificates for the last three (3) years.

SUBMISSION OF RESPONSES

Submission in response to the above requirements shall be completed strictly in accordance with the instructions provided in this publication.

Failure to submit any of the documents may result in disqualification.

Expression of interest document should be submitted via the EoI portal Email: bucloudfiles@gmail.com

Submission must be received by BUC not later than 18th April 2025.

Please note:

  • This is not an invitation to tender. The full tendering procedure will be provided to companies that are successful in the pre-qualification exercise which will be carried out in accordance with BUC’s relevant procedures.
  • This advertisement for the Expression of Interest and Pre-Qualification shall not be construed as a commitment by BUC, nor shall it entitle respondents to claim any indemnity to this advertisement.
  • This expression of Interest is a simple invitation for interested services and does not warrant any further feedback from BUC hereafter.
  • If you do not hear form BUC within 3 months of submission of this publication, it should be taken that your application was not successful.

Signed:
Management
BUC

This tender expires at 12:00pm on Friday April 18th, 2025