APPLY: Lagos opens bid for establishment of gas power plants

The Lagos state ministry of energy and mineral resources, in collaboration with the office of public-private partnerships (PPPs), has called for the submission of bids to establish gas-fired power plants for the ‘clean Lagos electricity market’ (CLEM) initiative.

In a statement on Thursday, signed by Biodun Ogunleye, commissioner of energy and mineral resources, and Bukola Odoe, special adviser, PPP, the state said there is an urgent need for sustainable alternatives, as the national grid’s energy supply is inadequate for the country.

On Thursday, the national grid collapsed for the second time in 72 hours, leading to a nationwide blackout.

Lagos state said its energy requirement is over six gigawatts (GW) (6,000 megawatts) of electricity, while the current supply from existing distribution companies (DisCos) is under 2GW (2,000MW) at peak periods.

The state said it plans to site four hubs near the already existing DisCos’ sub-stations in Lag0s.

“The Lagos State Ministry of Energy and Mineral Resources (MEMR), in collaboration with the Office of Public-Private Partnerships (OPPP) and other developing partners, is pleased to announce its intention to allocate sites for the generation of grid-connected electricity for the Clean Lagos Electricity Market (CLEM),” the state government said.

“The minimum intended generation capacity of electricity for each of the four hubs shall be 500MW which one or more power-generating firms shall generate.

“The minimum expected generating capacity for participation in any of the four hubs for any firm shall not be less than 100MW.”

It said the project scope for ensuring energy efficiency includes financing, engineering, procurement, construction, commissioning, and testing to meet grid-specified performance criteria.

The state further requires that the preferred bidder operates and maintains the plant, ensures a constant supply of relevant fuel, and generates no less than 100MW for the allocated clean Lagos electricity market.

REQUIREMENTS FROM INTERESTED PARTIES

Lagos state requires that all bidders be either a single company or a consortium of companies with the necessary technical, financial, legal, and specialist expertise.

In the case of a consortium, Lagos state said the members must jointly submit the required information and identify a lead company, which will be responsible for liaising with the project delivery team and managing the consortium’s performance.

According to the statement, prospective bidders are to register electronically on the state’s public procurement agency e-procurement platform at lagosppa.gov.ng, through which required documents will be submitted.

Lagos state said the deadline for applications is 5pm, November 22, 2024.