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Thursday, June 12, 2014
The government of Uganda reported that four of the six shortlisted firms/consortia have submitted detailed proposals for the role of Lead Investor/Operator for the development of the 60,000 bpd oil refinery and related downstream infrastructure in the country. This comes following a bidders’ conference that was held during March.
The conference gave an opportunity to the prospective bidders to be briefed on the project and obtain clarifications regarding the Request for Proposal (RFP), visit the refinery project site being acquired by Government as well as some of the oil fields, and meet with the upstream oil companies to have a dialogue on crude supply arrangements for the refinery.
Fred Kabagambe-Kaliisa, Permanent Secretary of the Ministry of Energy & Mineral Development (MEMD), said: “The response to our RFP attests to the competitiveness of Uganda’s refinery project and the East African region’s business environment that provides an excellent investment destination. We expect that the bids submitted will be in line with Government of Uganda’s requirements for a credible, experienced and financially capable partner to work with Uganda to develop a refinery. ”
The four shortlisted firms/consortia that have submitted proposals are led by China Petroleum Pipeline Bureau (CPPB) from China; Marubeni Corp. from Japan; RT–Global Resources from Russia; and SK Group from South Korea.
An evaluation team comprising of representatives from the government, together with government’s Transaction Advisor, TaylorDeJongh, will undertake a detailed evaluation of the proposals during June. The evaluation process is expected to take one month and after which, results will be announced. Negotiations are expected to be concluded by Q4.
“The evaluation criteria will include, but not be limited to, the overall technical experience and financial capacity and the development, financial and commercial plans submitted by the bidders. One of the Government’s objectives is to select an investor that will develop a refinery to convert Uganda’s waxy crude oil into the desired petroleum products that meet set standards,” Robert Kasande, the Refinery Project Manager in MEMD added.
The technical evaluation will include, inter alia, an assessment of the project implementation plan, relevant experience, operational plan, and local content strategy. The bidders are also expected to detail their Health, Safety, Security and Environment protection strategy together with a financial plan, which should among other things, delineate the estimated capital costs of the project, how the investor will raise the required financing for the project, crude oil acquisition strategy and product sales plans.
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