Jordan’s National Electric Power Company (Nepco) has opened financial bids to build the country’s next independent power project (IPP).

Bids were invited from international developers to build an IPP from scratch (IPP3) and from the operators of Jordan’s existing IPPs to extend the projects in a separate tender (IPP4).

Each of the bidders for IPP3 was asked to submit bids under four sub-proposals. This included a proposal for the base bid at 350MW and an alternative bid at 600MW and proposals for the use of liquid fuel, as well as a combination of liquid fuel and gas for each capacity.

Saudi Arabia’s Acwa Power in partnership with Germany’s Man Diesel & Turbo submitted the following bids (all figures in JD a kWh):

• 350MW using liquid fuel: 0.134055 ($0.18)
• 350MW using liquid fuel and gas: 0.132431
• 600MW using liquid fuel: 0.135826
• 600MW using liquid fuel and gas: 0.133508

South Korea’s Korea Electric Power Company (Kepco) with Japan’s Mitsubishi Corporation submitted the following bids:

• 350MW using liquid fuel: 0.130466
• 350MW using liquid fuel and gas: 0.122090
• 600MW using liquid fuel: 0.131209
• 600MW using liquid fuel and gas: 0.124154

Saudi Oger with a South Korean team of Korea East-West Power Company and STX also submitted a bid, but according to a source at Nepco, the bid will be returned as it was not deemed compliant at the technical evaluation stage.

The following groups were prequalified in December 2010, but did not bid (MEED 10:12:11):

• AES (US)
• Malakoff International (Malaysia)/Jordan Dubai Capital (local)/Consolidated Contractors Company (Athens-based)
• Sithe Global Power Ventures (US)

Bids for IPP4, the IPP expansion proposal, were submitted by the local Central Electricity Generating Company (Cegco) and the US’ AES, the operators of Jordan’s existing IPPs.

AES submitted the following bid:

• 350MW using liquid fuel: 0.140841
• 600MW using liquid fuel and gas: 0.132506

Doubts have been cast over AES’ commitment to the project since revealing its intention to exit the region following the Arab uprisings (MEED 24:2:11).

Cegco – which is owned by Enara, the Jordanian government and the Social Security Corporation – submitted the following bid:

• 350MW using liquid fuel: 0.142054
• 600MW using liquid fuel and gas: 0.141805

Nepco will assess proposals submitted in both the IPP3 and IPP4 tenders and will select one proposal and award a build-own-operate (BOO) contract. The desired commercial operation date for the plant is 2013-14.

The selected developer will be responsible for sourcing heavy fuel oil (HFO) of the quality suitable for the equipment proposed. Responsibility for liquid fuel procurement (HFO or distillate) will be determined at a later stage of the tender process. Nepco intends to supply the natural gas for the project, but is not committed to doing so.

Nepco, which operates most of Jordan’s power network, will also buy the output of the plant for a period of 25 years. US-based firm K&M Engineering & Consulting is Nepco’s adviser on the project.