BACKGROUND

The LAKE TURKANA WIND POWER (“Company” or “LTWP”), of P.O. BOX 63716, NAIROBI – 00619, KENYA has initiated a tender process for the construction of a 428 km long 400 kV Double Circuit line in Kenya.

The tender process will be conducted in two stages. The first stage will entail the pre-qualification of bidders based on their compliance with and satisfaction of certain requirements contained in the Terms of Reference given in this advert. The second stage will include the submission of bids (comprising technical statements and financial bids) and, based on those bids, the determination of the winning bidder. The Company intends to award a contract according to FIDIC, Conditions of Contract for Plant and Design Build ("Yellow Book").

The Company hereby invites interested parties (high profile transmission line & substation contracting companies from different parts of the world) to submit expressions of interest (EoI) for purposes of prequalification. The objective of the Company is to create shortlists of qualified bidders for each of the lots described below.

1. GENERAL INFORMATION ABOUT THE PROJECT

1.1 LAKE TURKANA WIND POWER (LTWP) is a company incorporated in Kenya (East Africa) to develop energy sources from wind. After intensive studies, and viability assessment, the company has identified the Lake Turkana region as having great potential for wind power generation in Kenya. Lake Turkana is situated in the North Western part of Kenya, approximately 600 km from Nairobi, the capital city of Kenya.

1.2 Initially the Company proposes to install approximately 360 wind turbine generators each with an installed capacity of 850 kW. The generated power will be evacuated at 33 kV and then stepped up to 400 kV. There will be a 400 kV substation at Lake Turkana.

1.3 The Company proposes to construct a 400 kV Double Circuit (D/C) line having an approximate length of 428 km which will terminate at the 400 kV substation (S/S) planned near the town of Suswa, about 70 km North-West of Nairobi.

1.4 The power received at the 400 kV sub-station at Suswa will be transformed to 220 kV and released into the Extra High Voltage (EHV) network of the Kenya Power and Lighting Company (KPLC), the present national transmission and distribution company.

1.5 The topography and terrain of the area through which the line is expected to pass, comprises of plains and hills. The soil conditions are generally good. There may be some stretches of black cotton soil, submerged soil, volcanic soil etc.
However, most of the tower locations may encounter normal dry soil, hard rock and soft rock. There might be combinations of soil strata in the pits excavated for the tower foundations. The route of the line passes through an area having very little or no population. At present there are no major or minor accessible roads for transport up to Lake Turkana. The last major town towards Lake Turkana from Nairobi is Maralal, which is situated about 160 km from Lake Turkana (Road distance 235 km). The segment where the line will pass towards Lake Turkana is very windy and has a hostile terrain and weather. There are some reserved forests along the route. There are no major natural water resources along the route in the form of rivers or lakes. It may become necessary to make boreholes for sourcing the water for construction and human consumption.

2. TERMS OF REFERENCE

The scope of the delivery will consist of:

• 428 km long transmission line
• Substations at Lake Turkana and Suswa
• Substations at Rumuruti and Maralal
• Communication systems between Lake Turkana, Suswa and the KPLC control centre
• Detailed design, engineering, manufacturing, transportation, erection and commissioning of the above
• Arrangement of all permits required for importation (if necessary), transportation, erection, etc. of the structures.

The delivery will be split into three lots:

• Lot 1: "33 kV collecting grid", indicatively consisting of:
  • WT transformers
  • 33 kV OHL collecting network
  • 33 kV busbar
  • In-park communication links
  • Substation automation system
• Lot 2: Substations
• Substation Turkana 400 kV incl. 33/400 kV transformation
• Substation Suswa 400/220 kV
• SCADA systems in these substations
• Substation Maralal 400/33 kV
• Substation Rumuruti 400/220 kV
• Lot 3: Transmission lines
  • ~428 km transmission line 400 kV Turkana – Suswa
  • Connection to existing 220 kV line Nairobi N – Olkaria
  • Maralal ~5 km supply line 33 kV
  • Connection to projected 220 kV network near Rumuruti.

3. EOI FORMAT

The expression of interest should be structured in the following format:

4. CLARIFICATIONS

Potential bidders are advised to seek any clarification regarding this project by contacting:

John Kiruthu
Partner
KPMG East Africa/Kenya
Lonrho House 16^th Floor, Standard Street
P O Box 40612-00100
Nairobi, Kenya
Tel: + 254 20 2806305
Fax: + 254 20 2215695
Email: johnkiruthu@kpmg.co.ke;
         jbidali@kpmg.co.ke;
         info@ltwp.co.ke

5. EOI SUBMISION PROCEDURES

The EoI must be submitted so as to reach the undersigned on or before
5 May 2009 at the following address:

John Kiruthu
Partner
KPMG East Africa/Kenya
Lonrho House 16^th Floor, Standard Street
P O Box 40612-00100
Nairobi, Kenya
Tel: + 254 20 2806305
Fax: + 254 20 2215695
Email: johnkiruthu@kpmg.co.ke

The Company and it’s professional advisors will scrutinize the EoIs and inform the short listed parties about its further intentions. All information received from the bidders will be kept confidential to the extent permissible under the law and the regulations of the KPLC. Interested bidders are notified that no rights can be obtained from this EoI invitation or from submitting an EoI.

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