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2019 08 USTDA MEM RFP Feasibility Study LNG Terminal DR

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REQUEST FOR PROPOSALS
FEASIBILITY STUDY FOR THE
LNG TERMINAL AND POWER PLANT PROJECT IN THE DOMINICAN REPUBLIC
Submission Deadline:
4:00 PM
LOCAL TIME (SANTO DOMINGO, DOMINICAN
REPUBLIC)
FEBRUARY 14, 2020
Submission Place:
Vilma I. Arbaje
Director of International Relations and Cooperation
Ministry of Energy and Mines
Ave. Tiradentes #53, esquina Heriberto Pieter, Bloque B, Ensanche Naco
Santo Domingo, Dominican Republic
Phone: + (809) 373-1800 ext. 2291
Email: [email protected]
Cc: [email protected]
SEALED PROPOSALS SHALL BE CLEARLY MARKED AND RECEIVED PRIOR TO THE
TIME AND DATE SPECIFIED ABOVE. PROPOSALS RECEIVED AFTER SAID TIME AND
DATE WILL NOT BE ACCEPTED OR CONSIDERED.
REQUEST FOR PROPOSALS
SECTION 1:
1.1
1.2
1.3
1.4
SECTION 2:
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
2.19
2.20
2.21
2.22
2.23
2.24
SECTION 3:
3.1
3.2
3.3
INTRODUCTION ...................................................................................4
BACKGROUND SUMMARY................................................................4
OBJECTIVE ............................................................................................5
PROPOSALS TO BE SUBMITTED ......................................................5
CONTRACT FUNDED BY USTDA ......................................................5
INSTRUCTIONS TO OFFERORS .........................................................6
PROJECT TITLE.....................................................................................6
DEFINITIONS .........................................................................................6
DEFINITIONAL MISSION REPORT ....................................................6
EXAMINATION OF DOCUMENTS .....................................................6
PROJECT FUNDING SOURCE .............................................................7
RESPONSIBILITY FOR COSTS ...........................................................7
TAXES .....................................................................................................7
CONFIDENTIALITY..............................................................................7
ECONOMY OF PROPOSALS ...............................................................7
OFFEROR CERTIFICATIONS ..............................................................7
CONDITIONS REQUIRED FOR PARTICIPATION ............................7
LANGUAGE OF PROPOSAL ................................................................8
PROPOSAL SUBMISSION REQUIREMENTS ....................................8
PACKAGING ..........................................................................................8
OFFEROR'S AUTHORIZED NEGOTIATOR .......................................9
AUTHORIZED SIGNATURE ................................................................9
EFFECTIVE PERIOD OF PROPOSAL .................................................9
EXCEPTIONS .........................................................................................9
OFFEROR QUALIFICATIONS .............................................................9
RIGHT TO REJECT PROPOSALS ........................................................9
PRIME CONTRACTOR RESPONSIBILITY ........................................9
AWARD ..................................................................................................10
COMPLETE SERVICES ........................................................................10
INVOICING AND PAYMENT ..............................................................10
PROPOSAL FORMAT AND CONTENT ..............................................11
EXECUTIVE SUMMARY .....................................................................11
U.S. FIRM INFORMATION...................................................................12
ORGANIZATIONAL STRUCTURE, MANAGEMENT, AND KEY
PERSONNEL ..........................................................................................13
3.4
TECHNICAL APPROACH AND WORK PLAN ..................................13
3.5
EXPERIENCE AND QUALIFICATIONS .............................................13
SECTION 4: AWARD CRITERIA ...............................................................................14
2
ANNEX 1
ANNEX 2
ANNEX 3
ANNEX 4
ANNEX 5
ANNEX 6
ANNEX 7
REQUEST FOR PROPOSALS ANNOUNCEMENT
PORTIONS OF BACKGROUND DEFINITIONAL MISSION REPORT
USTDA NATIONALITY REQUIREMENTS
USTDA GRANT AGREEMENT, INCLUDING MANDATORY CONTRACT
CLAUSES
TERMS OF REFERENCE (FROM USTDA GRANT AGREEMENT)
U.S. FIRM INFORMATION FORM
*RFP QUESTIONS
*QUESTIONS RAISED DURING THE COURSE
OF THIS RFP SOLICITATION THAT ARE NOT
ALREADY ADDRESSED BY THE RFP
DOCUMENT ITSELF ARE OUTLINED AND
ADDRESSED IN ANNEX 7
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Section 1:
INTRODUCTION
The U.S. Trade and Development Agency (“USTDA”) has provided a grant in the amount of
US$1,209,336 to the Dominican Republic’s Ministry of Energy and Mines (the “Grantee”) in
accordance with a grant agreement dated September 20, 2019 (the “Grant Agreement”). The
feasibility study (“Feasibility Study”) will assess the site selection and infrastructure requirements
for a liquified natural gas terminal, re-gasification facility, power plant, transmission line, and
supporting equipment and technologies (“Project”) in the Dominican Republic (“Host Country”).
The Grant Agreement is attached at Annex 4 for reference. The Grantee is soliciting technical
proposals from qualified U.S. firms to provide expert consulting services to perform the Feasibility
Study.
1.1
BACKGROUND SUMMARY
The Dominican Republic is experiencing increasing demands for additional electricity generation
capacity from both its commercial and industrial sectors. To accommodate the growing demand
for energy in the country, the Government of the Dominican Republic is seeking to diversify its
energy matrix and enhance its energy security.
This Feasibility Study will evaluate the development of a liquified natural gas (“LNG”) import
terminal and gas-fired power plant. This Project has the potential to provide upwards of 600
megawatts of electricity to help meet energy demand and sustain one of Latin America’s fastestgrowing economies.
Portions of a background Definitional Mission is provided for refence in Annex 2.
1.2
OBJECTIVE
The objective of the LNG Terminal and Power Plant Project Feasibility Study is to assess the site
selection and infrastructure requirements for a liquified natural gas (“LNG”) terminal,
regasification facility, power plant, transmission line, and supporting equipment and technologies
in the Dominican Republic. The Terms of Reference (“TOR”) for this Feasibility Study are
attached at Annex 5.
1.3
PROPOSALS TO BE SUBMITTED
Technical proposals are solicited from interested and qualified U.S. firms. The administrative and
technical requirements as detailed throughout the Request for Proposals (“RFP”) will apply.
Specific proposal format and content requirements are detailed in Section 3.
The amount for the contract has been established by a USTDA grant of US$1,209,336. The
USTDA grant of US$1,209,336 is a fixed amount. Accordingly, COST will not be a factor in
the evaluation and therefore, cost proposals should not be submitted. Upon detailed
evaluation of technical proposals, the Grantee shall select one firm for contract negotiations.
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1.4
CONTRACT FUNDED BY USTDA
In accordance with the terms and conditions of the Grant Agreement, USTDA has provided a grant
in the amount of US$1,209,336 to the Grantee. The funding provided under the Grant Agreement
shall be used to fund the costs of the contract between the Grantee and the U.S. firm selected by
the Grantee to perform the TOR. The contract must include certain USTDA Mandatory Contract
Clauses relating to nationality, taxes, payment, reporting, and other matters. The USTDA
nationality requirements and the USTDA Mandatory Contract Clauses are attached at Annexes 3
and 4, respectively, for reference.
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Section 2:
2.1
INSTRUCTIONS TO OFFERORS
PROJECT TITLE
The project is called “LNG Terminal and Power Plant Project.”
2.2
DEFINITIONS
Please note the following definitions of terms as used in this RFP.
The term "Request for Proposals" means this solicitation of a formal technical proposal,
including qualifications statement.
The term "Offeror" means the U.S. firm, including any and all subcontractors, which
responds to the RFP and submits a formal proposal and which may or may not be successful
in being awarded this procurement.
2.3
DEFINITIONAL MISSION REPORT
USTDA sponsored a Definitional Mission to address technical, financial, sociopolitical,
environmental, and other aspects of the proposed project. Portions of the report are attached at
Annex 2 for background information only. Please note that the TOR referenced in the report are
included in this RFP as Annex 5.
2.4
EXAMINATION OF DOCUMENTS
Offerors should carefully examine this RFP. It will be assumed that Offerors have done such
inspection and that through examinations, inquiries and investigation they have become
familiarized with local conditions and the nature of problems to be solved during the execution of
the Feasibility Study.
Offerors shall address all items as specified in this RFP. Failure to adhere to this format may
disqualify an Offeror from further consideration.
Submission of a proposal shall constitute evidence that the Offeror has made all the abovementioned examinations and investigations, and is free of any uncertainty with respect to
conditions which would affect the execution and completion of the Feasibility Study.
2.5
PROJECT FUNDING SOURCE
The Feasibility Study will be funded under a grant from USTDA. The total amount of the grant is
not to exceed US$1,209,336.
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2.6
RESPONSIBILITY FOR COSTS
Offeror shall be fully responsible for all costs incurred in the development and submission of the
proposal. Neither USTDA nor the Grantee assumes any obligation as a result of the issuance of
this RFP, the preparation or submission of a proposal by an Offeror, the evaluation of proposals,
final selection or negotiation of a contract.
2.7
TAXES
Offerors should submit proposals that note that in accordance with the USTDA Mandatory
Contract Clauses, USTDA grant funds shall not be used to pay any taxes, tariffs, duties, fees, or
other levies imposed under laws in effect in the Host Country.
2.8
CONFIDENTIALITY
The Grantee will preserve the confidentiality of any business proprietary or confidential
information submitted by the Offeror, which is clearly designated as such by the Offeror, to the
extent permitted by the laws of the Host Country.
2.9
ECONOMY OF PROPOSALS
Proposal documents should be prepared simply and economically, providing a comprehensive yet
concise description of the Offeror's capabilities to satisfy the requirements of the RFP. Emphasis
should be placed on completeness and clarity of content.
2.10
OFFEROR CERTIFICATIONS
The Offeror shall certify (a) that its proposal is genuine and is not made in the interest of, or on
behalf of, any undisclosed person, firm, or corporation, and is not submitted in conformity with,
and agreement of, any undisclosed group, association, organization, or corporation; (b) that it has
not directly or indirectly induced or solicited any other Offeror to put in a false proposal; (c) that
it has not solicited or induced any other person, firm, or corporation to refrain from submitting a
proposal; and (d) that it has not sought by collusion to obtain for itself any advantage over any
other Offeror or over the Grantee or USTDA or any employee thereof.
2.11
CONDITIONS REQUIRED FOR PARTICIPATION
Only U.S. firms are eligible to participate in this tender. However, U.S. firms may utilize
subcontractors from the Host Country for up to 20 percent of the amount of the USTDA grant for
specific services from the TOR identified in the subcontract. USTDA’s nationality requirements,
including definitions, are detailed in Annex 3.
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2.12
LANGUAGE OF PROPOSAL
All proposal documents shall be prepared and submitted in English and Spanish.
2.13
PROPOSAL SUBMISSION REQUIREMENTS
The Cover Letter in the proposal must be addressed to:
Vilma I. Arbaje
Director of International Relations and Cooperation
Ministry of Energy and Mines
Ave. Tiradentes #53, esquina Heriberto Pieter, Bloque B, Ensanche Naco
Santo Domingo, Dominican Republic
Phone: + (809) 373-1800 ext. 2291
Email: [email protected]
Cc: [email protected]
Offerors shall submit one (1) English and (1) Spanish version of the proposal, as well as an
electronic copy of both versions on a flash drive. Annex 6 does not need to be translated into
Spanish. The proposal must be received at the above address no later than 4:00 PM,
local time on February 14, 2020.
Proposals may be either sent by mail, overnight courier, or hand-delivered. Whether the proposal
is sent by mail, courier or hand-delivered, the Offeror shall be responsible for actual delivery of
the proposal to the above address before the deadline. Upon timely receipt of the proposal, the
Grantee will notify Offerors by e-mail. Any proposal received after the deadline will be returned
unopened. The Grantee will promptly notify any Offeror if its proposal was received late.
Upon timely receipt, all proposals become the property of the Grantee.
2.14
PACKAGING
Each copy of the proposal must be sealed to ensure confidentiality of the information. The
proposals should be individually wrapped and sealed, and labeled for content including the name
of the project and designation of "English" or "Spanish." The English and Spanish copies should
be collectively wrapped and sealed, and clearly labeled, including the contact name and the name
of the project.
Neither USTDA nor the Grantee will be responsible for premature opening of proposals not
properly wrapped, sealed and labeled.
2.15
OFFEROR’S AUTHORIZED NEGOTIATOR
The Offeror must provide the name, title, address, telephone number, e-mail address and fax
number of the Offeror’s authorized negotiator. The person cited shall be empowered to make
binding commitments for the Offeror and its subcontractors, if any.
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2.16
AUTHORIZED SIGNATURE
The proposal must contain the signature of a duly authorized officer or agent of the Offeror
empowered with the right to bind the Offeror.
2.17
EFFECTIVE PERIOD OF PROPOSAL
The proposal shall be binding upon the Offeror for NINETY (90) days after the proposal due date,
and Offeror may withdraw or modify this proposal at any time prior to the due date upon written
request, signed in the same manner and by the same person who signed the original proposal.
2.18
EXCEPTIONS
All Offerors agree by their response to this RFP announcement to abide by the procedures set forth
herein. No exceptions shall be permitted.
2.19
OFFEROR QUALIFICATIONS
As provided in Section 3, Offerors shall submit evidence that they have relevant past experience
and have previously delivered advisory, feasibility study and/or other services similar to those
required in the TOR, as applicable.
2.20
RIGHT TO REJECT PROPOSALS
The Grantee reserves the right to reject any and all proposals.
2.21
PRIME CONTRACTOR RESPONSIBILITY
Offerors have the option of subcontracting parts of the services they propose. The Offeror's
proposal must include a description of any anticipated subcontracting arrangements, including the
name, address, and qualifications of any subcontractors. USTDA nationality provisions apply to
the use of subcontractors and are set forth in detail in Annex 3. The successful Offeror shall cause
appropriate provisions of its contract, including all of the applicable USTDA Mandatory Contract
Clauses, to be inserted in any subcontract funded or partially funded by USTDA grant funds.
2.22
AWARD
The Grantee shall make an award resulting from this RFP to the best qualified Offeror, on the basis
of the evaluation factors set forth herein. The Grantee reserves the right to reject any and all
proposals received.
9
2.23
COMPLETE SERVICES
The successful Offeror shall be required to (a) provide local transportation, office space and
secretarial support required to perform the TOR if such support is not provided by the Grantee; (b)
provide and perform all necessary labor, supervision and services; and (c) in accordance with best
technical and business practice, and in accordance with the requirements, stipulations, provisions
and conditions of this RFP and the resultant contract, execute and complete the TOR to the
satisfaction of the Grantee and USTDA.
2.24
INVOICING AND PAYMENT
Deliverables under the contract shall be delivered on a schedule to be agreed upon in a contract
with the Grantee. The Contractor may submit invoices to the designated Grantee Project Director
in accordance with a schedule to be negotiated and included in the contract. After the Grantee’s
approval of each invoice, the Grantee will forward the invoice to USTDA. If all of the
requirements of USTDA’s Mandatory Contract Clauses are met, USTDA shall make its respective
disbursement of the grant funds directly to the U.S. firm in the United States. All payments by
USTDA under the Grant Agreement will be made in U.S. currency. Detailed provisions with
respect to invoicing and disbursement of grant funds are set forth in the USTDA Mandatory
Contract Clauses attached in Annex 4.
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Section 3:
PROPOSAL FORMAT AND CONTENT
To expedite proposal review and evaluation, and to assure that each proposal receives the same
orderly review, all proposals must follow the format described in this section.
Proposal sections and pages shall be appropriately numbered and the proposal shall include a Table
of Contents. Offerors are encouraged to submit concise and clear responses to the RFP. Proposals
shall contain all elements of information requested without exception. Instructions regarding the
required scope and content are given in this section. The Grantee reserves the right to include any
part of the selected proposal in the final contract.
The proposal shall consist of a technical proposal only. A cost proposal is NOT required because
the amount for the contract has been established by a USTDA grant of US$1,209,336, which is a
fixed amount.
Offerors shall submit one (1) English and (1) Spanish version of the proposal, as well as an
electronic copy of both versions on a flash drive. Annex 6 does not need to be translated into
Spanish. Proposals received by fax cannot be accepted.
Each proposal must include the following:
Transmittal Letter,
Cover/Title Page,
Table of Contents,
Executive Summary,
Firm Background Information,
Completed U.S. Firm Information Form,
Organizational Structure, Management Plan, and Key Personnel,
Technical Approach and Work Plan, and
Experience and Qualifications.
Detailed requirements and directions for the preparation of the proposal are presented below.
3.1
EXECUTIVE SUMMARY
An Executive Summary should be prepared describing the major elements of the proposal,
including any conclusions, assumptions, and general recommendations the Offeror desires to
make. Offerors are requested to make every effort to limit the length of the Executive Summary
to no more than five (5) pages.
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3.2
U.S. FIRM INFORMATION
A U.S. Firm Information Form in .pdf fillable format is attached at the end of this RFP in Annex
6. The Offeror must complete the U.S. Firm Information Form and include the completed U.S.
Firm Information Form with its proposal.
3.3
ORGANIZATIONAL STRUCTURE, MANAGEMENT, AND KEY PERSONNEL
Describe the Offeror's proposed project organizational structure. Discuss how the project will be
managed including the principal and key staff assignments for this Feasibility Study. Identify the
Project Manager who will be the individual responsible for this project. The Project Manager shall
have the responsibility and authority to act on behalf of the Offeror in all matters related to the
Feasibility Study.
Provide a listing of personnel (including subcontractors) to be engaged in the project, including
both U.S. and local subcontractors, with the following information for key staff: position in the
project; pertinent experience, curriculum vitae; other relevant information. If subcontractors are
to be used, the Offeror shall describe the organizational relationship, if any, between the Offeror
and the subcontractor.
A manpower schedule and the level of effort for the project period, by activities and tasks, as
detailed under the Technical Approach and Work Plan shall be submitted. A statement confirming
the availability of the proposed project manager and key staff over the duration of the project must
be included in the proposal.
3.4
TECHNICAL APPROACH AND WORK PLAN
Describe in detail the proposed Technical Approach and Work Plan (the “Work Plan”). Discuss
the Offeror’s methodology for completing the project requirements. Include a brief narrative of
the Offeror’s methodology for completing the tasks within each activity series. Begin with the
information gathering phase and continue through delivery and approval of all required reports.
Prepare a detailed schedule of performance that describes all activities and tasks within the Work
Plan, including periodic reporting or review points, incremental delivery dates, and other project
milestones.
Based on the Work Plan, and previous project experience, describe any support that the Offeror
will require from the Grantee. Detail the amount of staff time required by the Grantee or other
participating agencies and any work space or facilities needed to complete the Feasibility Study.
3.5
EXPERIENCE AND QUALIFICATIONS
Provide a discussion of the Offeror's experience and qualifications that are relevant to the
objectives and TOR for the Feasibility Study. If a subcontractor(s) is being used, similar
information must be provided for the prime and each subcontractor firm proposed for the project.
The Offeror shall provide information with respect to relevant experience and qualifications of key
12
staff proposed. The Offeror shall include letters of commitment from the individuals proposed
confirming their availability for contract performance.
As many as possible but not more than six (6) relevant and verifiable project references must be
provided for each of the Offeror and any subcontractor, including the following information:
Project name,
Name and address of client (indicate if joint venture),
Client contact person (name/ position/ current phone and fax numbers),
Period of Contract,
Description of services provided,
Dollar amount of Contract, and
Status and comments.
Offerors are strongly encouraged to include in their experience summary primarily those projects
that are similar to the Feasibility Study as described in this RFP.
13
Section 4:
AWARD CRITERIA
Individual proposals will be initially evaluated by a Procurement Selection Committee of
representatives from the Grantee. The Committee will then conduct a final evaluation and
completion of ranking of qualified Offerors. The Grantee will notify USTDA of the best qualified
Offeror, and upon receipt of USTDA’s no-objection letter, the Grantee shall promptly notify all
Offerors of the award and negotiate a contract with the best qualified Offeror. If a satisfactory
contract cannot be negotiated with the best qualified Offeror, negotiations will be formally
terminated. Negotiations may then be undertaken with the second most qualified Offeror and so
forth.
The selection of the Contractor will be based on the following criteria:
1. Proposed Technical Approach and Work Plan (50 points):
Offerors shall demonstrate a thorough understanding of all of the TOR tasks. Offerors
approach to executing the tasks should be in agreement with the generally accepted
engineering methods used in process plant design. The work plan should be detailed and
responsive to the requirements presented in the TOR and should provide a thorough
understanding of each aspect of the project and define specific steps the Offeror will take
to execute each task. The Offeror shall indicate how it will effectively communicate with
the Grantee team during the performance of the Feasibility Study.
2. Professional Qualifications and Relevant Project Experience (40 points):
Offerors shall propose a project team that will be fully qualified to execute the Feasibility
Study. The proposed staff should have strong qualifications in LNG terminal design, power
plant design, and feasibility studies. The Offeror team members shall provide evidence of
satisfactorily executing at least five (5) power plant projects and three (3) LNG terminal
projects within the past ten (10) years. The reference projects should be of similar size and
complexity to the proposed Project. Experience with combined LNG and power complexes
is a considerable advantage. Project details are required for each example.
The proposed team should include the following qualifications and experience:
• Project Manager with experience in the design and construction of LNG terminals.
• Senior Electrical Engineer/Power Engineer with a minimum of a BS in Electrical
Engineering or Mechanical Engineering with experience in the design and installation
of power plants and associated systems.
• Process Engineer with a minimum of a BS in Chemical Engineering with experience
in oil and gas projects.
• Electrical Engineer with a minimum of a BS in Electrical Engineering with
experience in transmission and distribution systems engineering.
• Mechanical Engineer with a minimum of a BS in Mechanical Engineering with
experience in cryogenic systems, piping, and/or rotating equipment engineering.
• Civil/Marine Engineer with a minimum of a BS in Civil Engineering with experience
in port design and construction.
• Environmental Engineer with a minimum of a BS in Environmental Engineering or
Environmental Sciences (or related field) with experience in environmental impact
assessment studies.
14
•
•
•
Cost Engineer with a minimum of a BS in an engineering discipline with experience in
cost estimating.
Business Analyst with a minimum of a BA in Business Administration, Economics, or
Accounting with experience in relevant industries.
Financial Analyst with a Master of Business Administration degree with experience in
project finance.
3. International and Host Country Experience (10 points):
Offerors shall provide international and host country project experience. The ideal Offeror
will have successfully completed at least one similar project in Latin America and have at
least one senior staff member with Spanish language fluency.
Proposals that do not include all requested information may be considered non-responsive.
Price will not be a factor in Contractor selection.
15
ANNEX 1
Vilma I. Arbaje
Director of International Relations and Cooperation
Ministry of Energy and Mines
Ave. Tiradentes #53, esquina Heriberto Pieter, Bloque B, Ensanche Naco
Santo Domingo, Dominican Republic
Phone: + (809) 373-1800 ext. 2291
Email: [email protected]
Cc: [email protected]
Solicitation Number: 2019-51016A
Dominican Republic: LNG Terminal and Power Plant Project Feasibility Study
POC: Anna Amaya, USTDA, 1101 Wilson Boulevard, Suite 1100, Arlington, VA 222093901, Tel: (703) 875-4357, Fax: (703) 775-4037, Email: [email protected]
The Grantee (Dominican Republic Ministry of Energy and Mines) invites submission of
qualifications and proposal data (collectively referred to as the "Proposal") from
interested U.S. firms that are qualified on the basis of experience and capability to
develop the LNG Terminal and Power Plant Project Feasibility Study.
The Government of the Dominican Republic (“GDR”) anticipates that the country will
require an installed capacity of 5.9 GW by 2025 to meet demand growth. To
accommodate this growth, GDO is seeking to shift its energy matrix towards natural gas,
coal, and renewables and away from its dependence on heavy fuel oil (“HFO”), which
has historically left the country vulnerable to fluctuations in price and electricity tariff
rates.
In 2013, GDR created the Ministry of Energy and Mines (“MEM”) to be the governing
entity and cabinet level ministry that would be in charge of energy sector policy, strategy,
and planning. Examples of some main functions performed by MEM include promoting
development and sustainability of the hydrocarbons sector; promoting energy efficiency
and energy savings; and creating and developing capacities at MEM to ensure continuous
improvement in management and effectively achieve MEM’s mission and vision.
GDR also recently introduced an electricity sector reform in 2014 known as the
Electricity Pact. This Pact aimed to improve the country’s energy security through
improved sector management and legal framework for renewable energy projects.
Through this Feasibility study, MEM seeks support to develop an LNG terminal, a 600
MW combined cycle gas-fired power plant, and a 75-mile transmission line on the
northwest coast of the country in the municipality of Pepillo Salcedo near the Port of
Manzanillo (“Project”). The U.S. Contractor would be tasked with reviewing site
suitability and working with the Grantee to evaluate a primary and secondary site for the
proposed LNG Terminal, a re-gasification facility, power plant, and supporting
infrastructure.
The objective of the LNG Terminal and Power Plant Project Feasibility Study is to assess
the site selection and infrastructure requirements for a liquified natural gas (“LNG”)
terminal, regasification facility, power plant, transmission line, and supporting equipment
and technologies in the Dominican Republic. The U.S. firm selected will be paid in U.S.
dollars from a $1,209,336 grant to the Grantee from the U.S. Trade and Development
Agency (“USTDA”).
A detailed Request for Proposals (RFP), which includes requirements for the Proposal,
the Terms of Reference, and portions of a background Definitional Mission report are
available from USTDA, at 1101 Wilson Boulevard, Suite 1100, Arlington, VA 222093901. To request the RFP in PDF format, please go to:
http://www.ustda.gov/business-opportunities/request-proposal-form.
Requests for a mailed hardcopy version of the RFP may also be faxed to the IRC,
USTDA at (703) 775-4037. In the fax, please include your firm’s name, contact person,
address, and telephone number. Some firms have found that RFP materials sent by U.S.
mail do not reach them in time for preparation of an adequate response. Firms that want
USTDA to use an overnight delivery service should include the name of the delivery
service and your firm's account number in the request for the RFP. Firms that want to
send a courier to USTDA to retrieve the RFP should allow one hour after faxing the
request to USTDA before scheduling a pick-up. Please note that no telephone requests for
the RFP will be honored. Please check your internal fax verification receipt. Because of
the large number of RFP requests, USTDA cannot respond to requests for fax
verification. Requests for RFPs received before 4:00 PM will be mailed the same day.
Requests received after 4:00 PM will be mailed the following day. Please check with
your courier and/or mail room before calling USTDA.
Only U.S. firms and individuals may bid on this USTDA financed activity. Interested
firms, their subcontractors and employees of all participants must qualify under USTDA's
nationality requirements as of the due date for submission of qualifications and proposals
and, if selected to carry out the USTDA-financed activity, must continue to meet such
requirements throughout the duration of the USTDA-financed activity. All goods and
services to be provided by the selected firm shall have their nationality, source and origin
in the U.S. or host country. The U.S. firm may use subcontractors from the host country
for up to 20 percent of the USTDA grant amount. Details of USTDA's nationality
requirements and mandatory contract clauses are also included in the RFP.
Interested U.S. firms should submit one (1) English and (1) Spanish version of the
proposal, as well as an electronic copy of both versions on a flash drive directly to the
Grantee by 4:00 PM, local time on February 14, 2020 at the above address. Evaluation
criteria for the Proposal are included in the RFP. Price will not be a factor in contractor
selection, and therefore, cost proposals should NOT be submitted. The Grantee reserves
the right to reject any and/or all Proposals. The Grantee also reserves the right to contract
with the selected firm for subsequent work related to the project. The Grantee is not
bound to pay for any costs associated with the preparation and submission of Proposals.
ANNEX 2
LAC Energy Project Preparation Advisory Assistance
Contract USTDA 14-D-0001-06
Order Number 1131-PL-18-FIE-51083
Dominican Republic – Ministerio de Energía y Minas LNG Terminal
May 1, 2019
Prepared by:
The Innovation Network, LLC
20 Benjamin Road
Lexington, MA 02421
(781) 862 – 5573
www.innovationnetconsult.com
This report was funded by the U.S. Trade and Development Agency (USTDA),
an agency of the U.S. Government. The opinions, findings, conclusions, or
recommendations expressed in this document are those of the author(s) and do not necessarily
represent the official position or policies of USTDA. USTDA makes no representation about,
nor does it accept responsibility for, the accuracy or completeness of the information contained
in this report.
Mailing and Delivery Address: 1101 Wilson Boulevard, Suite 1100, Arlington, VA 22209
Phone: 703–875–4357 • Fax: 703–875–4009 • Web site: www.ustda.gov
U.S. Trade and Development Agency
The U.S. Trade and Development Agency helps companies
create U.S. jobs through the export of U.S. goods and
services for priority development projects in emerging
economies.
USTDA links U.S. businesses to export
opportunities by funding project planning activities, pilot
projects, and reverse trade missions while creating
sustainable infrastructure and economic growth in partner
countries.
Mailing and Delivery Address: 1101 Wilson Boulevard, Suite 1100, Arlington, VA 22209
Phone: 703–875–4357 • Fax: 703–875–4009 • Web site: www.ustda.gov
B
Project Description
B.1
LNG Terminal and Power Plant Project Background
MEM is seeking to develop an LNG import terminal with storage and an adjacent combined cycle
power plant at Pepillo Salecedo, Monte Cristi Province on the extreme Northwest coast of the DR
near the border with Haiti. The initial proposal is a 600 MW combined cycle plant. The power
plant will be connected to the National Grid and require a new transmission line to go from Monte
Cristi to Santiago.
The LNG terminal will be supplied via an ocean-going carrier with a proposed on-shore receiving
terminal with storage and regasification. The terminal will be adjacent to a combined cycle power
plant, and the fuel will be transferred by a short pipeline between the two plants. The project will
require approximately 4,200 to 5,000 m3 of LNG per day, including losses due to parasitic load
and boil off. The LNG demand will result in about one delivery every 35 days. The LNG cost is
approximately $900,000 to $950,000 per day at $8.00 per MMBtu. Over a year, the project will
require about $270 million in LNG (at 80 percent power plant operating rate).
MEM will seek a developer-operator for the project and support them in obtaining the necessary
concession under favorable terms to allow the project to be viable. MEM wants to develop this
project to provide energy security to the country as the other LNG terminal operated by AES is
along the South Coast.
B.2
Proposed Project Site
The proposed project site is within the Monte Cristi Province adjacent to the town of Pepillo
Salcedo and adjacent to a National Park. This project site selection requires several studies and
analyses. They include bathymetry (marine topography), unloading considerations, maritime
traffic, offshore infrastructure development, environmental impact assessment, and social impacts.
Any of these issues could cause difficulty for the project. Our concerns about the site location are
mainly related to the community concerns about being so close to an LNG terminal and power
plant. Also, the adjacent National Park may become a siting issue as well, especially from
environmental groups. MEM assured us that the Government was in full support of the project.
The Puerto de Manzanillo at Pepillo Salcedo is owned by Corporación Portuaria del Atlántico who
may be able to provide the marine infrastructure for the project. This port exports refrigerated
cargo (mainly bananas) and imports clinker and coal. Depending upon the port activity, it could
also become a problem with the delivery of LNG as thee deliveries may close the port for 18 to 24
hours at a time. The Contractor will be asked to review the port options for LNG unloading. The
Port characteristics are sufficient for most LNG tankers:
•
•
Tide Variation: 0.50 M
Depth of the port: 48 feet
3
•
•
•
•
Mooring depth: 36 -30 -25 feet (this may need to be deepened for LNG tankers)
Input channel: 600 linear meters wide
Depth of inlet channel: 0 feet
Circle of maneuvers: 600 meters
Figure 1 shows approximate locations of the LNG terminal and power plant has indicated by the
MEM. Figure 2 shows a closer up satellite picture of the existing port.
Figure 1: Approximate locations of the LNG terminal and power plant
Figure 2: Puerto de Manzanillo at Pepillo Salcedo showing jetty and adjacent parcel
4
B.2
Regasification Technology
A typical regasification process is shown in Figure 3. LNG is unloaded from the tanker into the
LNG storage tanks. LNG is pumped from the storage tanks to the regasification units where the
temperature is increased, and the pressure is reduced to allow the LNG to increase in temperature.
The LNG is then introduced into the vaporizers where it is vaporized by exchange with sea water.
The natural gas is then introduced into the pipeline to the customers. Vapor from unloading is
captured and returned to the LNG vessel for recompression or injected into the re-condenser for
adding heat to the warming LNG.
Figure 3: Typical LNG Regasification Process
B.3
Combined Cycle Power Plant
MEM is seeking the construction of a 600 MW combined cycle power plant. A combined-cycle
power plant uses both a gas and a steam turbine together to produce up to 50 percent more
electricity from the same fuel than a traditional simple-cycle plant. The waste heat from the gas
turbine is routed to the nearby steam turbine, which generates extra power.
5
In Figure 4, GE describes the differences between simple cycle, single shaft and multi-shaft
combined cycle plants very succinctly. For a project of 600 MW, the contractor will have to decide
on a single gas turbine or multiple gas turbines. We expect that the contractor will recommend two
turbines instead of a single turbine due to the need to provide power during maintenance periods.
However, the final decision will be based on the requirements of the PPA. For example, in the case
of two turbines, GE offers the 7E and LMS 100 series turbines for example. These units are
manufactured in the U.S. and produce approximately 300 MW each in a 2x1 configuration. The
GE 7E.03 provides 287 MW at 53 percent efficiency. The LMS 100 offers similar power and
efficiency ratings. GE frame six series turbines also fit into this size category but are not
manufactured in the U.S.
Figure 4: Plant Configurations 1
1
https://www.ge.com/power/gas/power-plants
6
B.4
DR Power Grid2
Figure 5 shows the current power grid in the DR. The Monte Cristi Power plant would be
connected to the National Grid near Santiago, a distance of approximately 120 km. The connection
to the 138KV double circuit line is anticipated to be sufficient to support the estimated 600 MW
output of the power plant. The TOR includes an assessment of the potential to connect to the
power grid. There is a major highway corridor (Route 1) between the two locations which will
minimize the cost of implementing the transmission line. There is a 34.5 KV transmission line
already along the corridor, so the installation of the 138KV line appears to have limited land access
issues. The TOR includes a review of the complexity of the connection between the power plant
and the transmission line.
Figure 5: DR Power Grid Map
B.5
LNG Availability
While there are 25 countries today that supply LNG, this project is likely to be supplied from the
Atlantic Basin or Northwestern South America. With the significant expansion of LNG supply
from the U.S., we expect a substantial portion of the LNG will be U.S. sourced. We do expect the
2
https://www.geni.org/globalenergy/library/national_energy_grid/dominicanrepublic/domincanrepublicnationalelectricitygrid.shtml
7
project to purchase LNG on long term contract with some share of the LNG to be supplied by spot
cargos. Besides the U.S. Gulf Coast, other possible suppliers include Peru, Trinidad, and Nigeria.
We do expect the U.S. Gulf Coast will be the most economical source of LNG. Qatar Petroleum
is a possible supplier, but most likely through their U.S. Gulf Coast joint venture Golden Pass with
Exxon, and not the Ras Laffan complex. More details on LNG supply are in Section F of this
report.
B.7
DR Power Situation
Electric Power
The Dominican Republic had 3.7GW of installed power generating capacity in 2017. Oil and diesel
are the primary sources of electricity, accounting for 1.8GW. Small hydro, wind, solar and biomass
together account for 10% of the total. Although generation is open to private players, it remains
dominated by state-owned assets. Peak power demand jumped 87% over the past eight years, from
1,810MW in 2010 to 3,397MW in 2017, while generation grew 23% over the same period. 3
Existing and planned power generation capacity is shown in Table 1. 4
The Dominican Republic’s residential power prices are about $200 to $210/MWh.
The distribution segment is divided into three public companies: Edeeste, Edenort, and Edesur.
All state-owned companies are managed by the Corporación Dominicana de Empresas Eléctricas
Estatales (CDEEE also defined as the regulator in this report).
Table 1: Power Generation by Source
Power Generation by Source
Source
Hydro
Natural Gas
Coal
Oil
Biofuels
Wind
Solar
Total Supply
3
2016 GWh
1,898
3,827
2,433
10,109
32
807
308
21,430
http://global-climatescope.org/results/do#power-prices-and-lcoes
4
https://www.iea.org/statistics/?country=DOMINICANR&year=2016&category=Electricity&indicator=ElecGenBy
Fuel&mode=chart&dataTable=ELECTRICITYANDHEAT
8
The proposed electric sector reform known as the Electric Pact (Pacto Eléctrico) is intended to
increase the nation’s competitiveness and improve Dominicans’ standard of living. The Electric
Pact had not been approved, nor signed by the President yet. It will improve the management of
the power sector and provides a legal framework for renewable energy projects. It includes tax
incentives and power purchase commitments for clean and renewable energy.
9
C
Project Sponsor’s Capabilities and Commitment
The Proposed Grantee for the Project is the Ministerio de Energía y Minas (Ministry of Energy
and Mines) (MEM). MEM is a Ministry under the Presidency of the Dominican Republic, an
organization created by Law 100-13, in 2013, to be the Public Administration body in charge of
the formulation and administration of the national metallic and non-metallic energy and mining
policy. It is the governing body of the system, the formulation, adoption, monitoring, evaluation
and control of policies, strategies, general plans, programs, projects and services related to the
energy sector and its energy subsectors electricity, renewable energy, nuclear energy, natural gas,
and mining.
The main functions performed by the Ministry of Energy and Mines are:
• Promote the development and sustainability of the hydrocarbon sector.
• Promote Efficiency and energy saving.
• Develop and maintain a critical energy infrastructure safely and adequately.
• Regulate and promote the production and promotion of the development of renewable
energy and alternatives.
• Regulate, develop, and promote nuclear energy applications for civilian use.
• Regulate, control, and promote the growth of the mining sector and its contribution to the
development of the country, to achieve responsible, transparent, and safe mining.
• Create and develop the capacities for the sustainable improvement of the institutional
management, to effectively achieve the mission and vision of the Ministry of Energy and
Mines.
MEM has decided it needs to undertake the initial efforts to develop an LNG import capability in
the North of the DR to provide for a second source of gas for the country. The plan is to identify
a suitable entity to execute the development, construction, and management of the LNG terminal
and associated power plant. The Project will provide an adequate energy solution for the North of
the DR. Security of gas supply is a critical driver for this project. The plan involves replacing
some existing diesel generation capacity and baseload capability during dry seasons when water
levels are reduced, and hydro generation is less.
MEM will seek a developer under a tendering program after the completion of this feasibility
study. The outcome of the feasibility study will be an independent assessment of the viability of
the project as well as preparation of the tendering documents for the LNG and power project.
MEM has tendered other power projects in the past, and the senior staff of the Ministry believes
this is an appropriate option at this point to develop the Project.
We expect the MEM will have full access to all requirements of the Contractor and will be fully
capable of acting as a Grantee for this Project.
10
D
Implementation Financing
D.1
Financing
They will be seeking a developer to execute the project and to define the financing plan.
D.2
Project Cost
The Project has three principal parts.
1. LNG terminal including jetty, offshore infrastructure, and storage
2. Power Plant, including the generation package and offsites, and
3. 120 km transmission line.
An initial estimate of capital costs is shown in Table 2. Land acquisition costs and the owner’s
development costs are not included.
Table 2: Project Cost Estimate
Item
LNG Terminal
Power Plant
Transmission Line
Total
Capital Cost ($ million)
$350
$480
$60
$890
Projects of this scale require a developer with a strong track record and considerable financial
resources. We expect that the developer will be an international energy firm or power plant
developer. It is also possible that the development will be split into two projects with two distinct
owners. We expect the investment to be from strategic investors and not a project developer as
MEM is seeking a developer/owner/operator model. So it is likely that an IPP would be the most
promising development model.
We have developed a simple income statement for the Project shown in Table 3. The assumptions
are as follows:
• Total Invested Capital - $1.068 Billion (20% added to CAPEX above for owners costs and
contingency)
• Power Tariff - $0.135/kWh fixed for 10 years (we have not assumed an increase for
simplicity)
• Operating rate – 80%
• Fuel cost to the power plant - $8.00/MMBtu
• Technology – Combined Cycle based on GE 7E Series at 6439 Btu/kWh HV
• O&M Cost – $0.02/kWh
• SG&A Cost – 2.5% of Total investment
• Interest Expense - 15 year based on 70% of total investment
11
•
•
Depreciation – 20-year straight line on capital expenditures
Tax Holiday – 10 years
Under this scenario, the project will be cashflow positive and generate $460 million in net earnings
over ten years. We assume that this scenario will be acceptable to the regulator since the power
costs in the DR are nearly double to the consumer. The LNG terminal will earn about
$1.20/MMBtu and the power plant approximately $0.011/kWh. This is viable to provide sufficient
return to equity investors
12
Table 3: DR Power Plant Income Statement
DR Power Plant Income Statement
Design Capacity
CAPEX
Investment
Power Tariff
Sales Volume
Sales Revenue
Fuel Cost
O&M Cost
SG&A
D&A
Interest Expense
Total Expenses
Income Taxes
Net Income
Add Back Depreciation
Net Cash Flow
IRR
NPV 12
600 MW Gas Fired Power Plant w/LNG Terminal
890 MM$
1068 MM$
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
$/ kWh
0.135
0.135
0.135
0.135
0.135
0.135
0.135
0.135
0.135
0.135
kWh
4204800000 4204800000 4204800000 4204800000 4204800000 4204800000 4204800000 4204800000 4204800000 4204800000
MM$
567.6
567.6
567.6
567.6
567.6
567.6
567.6
567.6
567.6
567.6
MM$
271.0
276.4
281.9
287.6
293.3
299.2
305.2
311.3
317.5
323.9
MM$
84.1
85.8
87.5
89.2
91.0
92.8
94.7
96.6
98.5
100.5
MM$
17.0
17.0
17.0
17.0
17.0
17.0
17.0
17.0
17.0
17.0
MM$
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
MM$
71.2
71.2
71.2
71.2
71.2
71.2
71.2
71.2
71.2
71.2
487.9
495.0
502.2
509.6
517.1
524.8
532.7
540.7
548.8
557.1
MM$
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
MM$
79.8
72.7
65.4
58.1
50.5
42.8
35.0
27.0
18.8
10.5
MM$
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
55.0
MM$
124.3
117.2
109.9
102.6
95.0
87.3
79.5
71.5
63.3
219.0%
$417
13
E
U.S. Export Potential
E.1
Project Investment
LNG Terminal
The plan for the MEM LNG terminal and power plant calls for an onshore terminal. There is an
existing jetty at the Puerto de Manzanillo. We have assumed that it can be used by the project for
LNG delivery. An LNG pipeline would have to be built from the jetty to the storage area.
Additional offshore work and possibly extending the jetty may be required. Our model for LNG
terminals estimates the total investment cost of an LNG import terminal is about $250 to $300 per
annual metric ton for an onshore terminal. (Land cost is extra). This cost is similar to the IGU
number of $285 per metric ton projected for this year. CAPEX costs are generally about 80 percent
of the total investment cost. We are estimating the LNG terminal capital costs to be about $350
million.
Power Plant
We have assumed for the project demand of 600 MW; the contractor will have to decide on a
single gas turbine or multiple gas turbines. We expect that the contractor will recommend two
turbines instead of a single turbine due to the need to provide power during maintenance periods.
For example, in the case of two turbines, GE offers the 7E and LMS 100 series turbines for
example. These units are manufactured in the U.S. and produce approximately 300 MW each in
a 2x1 configuration. The GE 7E.03 provides 287 MW at 53 percent efficiency. The LMS 100
offers similar power and efficiency ratings. GE frame six series turbines also fit into this size
category. However, they are not manufactured in the U.S. We are assuming 7E turbines for this
example. We have used the latest EIA estimates of $771 per kW (2016 data) for combined cycle
power plants which we round to $800 per kW to account for inflation, offshore costs and reductions
due to discounting in the industry.
E.2
U.S. Export Potential
LNG Terminal
We have separated the LNG terminal and the power plant export potential as these projects could
be developed separately with separate EPC firms and even different developers. For a terminal
suitable to supply a 600 MW combined cycle power plant, it will require approximately 4,000 to
5,000 m3 per day, requiring at a minimum two storage tanks of 160,000 m3.
The plant will require a receiving jetty, unloading equipment, cryogenic pumps, turbines, and full
electrical and instrumentation systems. It will require regasification equipment since it will supply
14
natural gas across the fence line to the power plant. It will also include all utilities, and offsites
(buildings, water treatment, road system, security, service vessels)
LNG is stored in cryogenic tanks capable of withstanding temperatures of -160°C to maintain the
gas in liquid form. The outer walls of the storage tanks are made of pre-stressed reinforced
concrete. They are insulated to limit evaporation. Even with high-quality insulation, a small
amount of heat still penetrates the LNG tanks. This heat causes slight evaporation of the product.
The resulting boil-off gas is captured and fed back into the storage using a compressor and
condensing system.
There are several vaporizer methods for LNG regasification with the optimum process based on
site location, climatic conditions, and throughput. New terminals emphasize energy efficiency and
emissions. We have based our cost estimate on an open rack vaporizer design which uses seawater
to heat the LNG.
For the LNG terminal, we are estimating the total capital cost of $350 million with a U.S. content
of between $61 and $ 137 million, with a likely amount of about $100 million, or about 29% of
the project cost.
Our analysis of potential U.S. companies that could supply goods and services to the LNG import
project are shown in Table 5. There are several U.S. EPC companies with experience and expertise
with LNG import and regasification projects including, Fluor, Foster Wheeler, Mustang
Engineering, Bechtel, and KBR. Also, there are U.S. firms with experience in cryogenic
technologies for unloading arms, pumps, LNG storage, and cryogenic instruments, controls, and
metering. U.S. firms have specialized expertise with port spill control and plant fire protection.
Table 4: Possible U.S. Suppliers for the LNG Import Terminal
Goods and Services
Engineering, Procurement,
Construction
Unloading Systems,
Cryogenic Load Arms
LNG Storage
Controls/Sensors/Level
Controls/Metering
LNG Transfer Pumps
Vaporization Units
Boil-Off Gas Recycle
Gas Compressors
Utilities/Offsites
Fire Protection
Seawater In/Out
U.S. Suppliers
Fluor, Foster Wheeler, Mustang Engineering, Bechtel, KBR
FMC, Emco Wheaton, Chart
McDermott, Corban Energy, Bechtel, Chart
Honeywell, Emerson, RKI Instruments, FMC
Cryogenic Industries, Nikkiso, Cryodynamics (Ebara Int. Mfg.)
Kopetz Manufacturing, Cryogenic Industries, Foster Wheeler
Cryogenic Industries, Cryostar, Black & Veatch
GE, Cat (Solar), Pratt & Whitney
GE, Pratt & Whitney, CAT (Solar), Combustion Associates, Inc.
Total Safety, API Group, Honeywell, Keystone Fire Protection,
The Hiller Companies
Foster Wheeler, Mustang, Fluor, Bechtel, KBR
15
Jetty Construction
Port Spill Control
SCADA Systems
Gas Dryers/Desiccants
Foster Wheeler, Mustang, Fluor, Bechtel, KBR
SpillZone, Spillfreak, Polychemical Marine
Honeywell, GE Fanuc, Wonderwall, Rockwell Automation
Trantex Treating, Croft, Tryer Process Equipment, Spartan
Energy
Power plant and transmission line
There is a high likelihood of this study resulting in significant U.S. exports for the power portion
of the project. The selected gas turbines will depend upon the turbine costs, projected operating
rates, and expected turn down situation.
We are estimating U.S. exports of $276 million for the project based on the 600 MW nameplate
capacity project.
We have estimated the transmission line cost to be about $60 million. For such a line, we expect
minimal U.S. content. We are predicting that only the conductor and insulators could be U.S.
sourced. We are estimating U.S. content to be about 20 percent of the transmission line cost.
Transmission Towers and Cross Arms: Transmission towers for the Project are likely to use lattice
steel towers. If unipoles are selected, U.S or Latin American sources will compete. Cross arms are
part of the transmission tower assembly and are likely to be supplied by the transmission tower
manufacturer. In this case, steel cross arms are likely to be used. The same is true for unipole
mounts.
Tower Foundations: Foundations primarily consist of concrete foundations and steel rebar, where
applicable based on design. The components are low cost and low technology, and abundantly
available.
Insulators: Polymer insulators, a more technically and qualitatively advanced class of insulators
are more durable and are increasingly being used.
Line Conductor: the U.S. has an established base for manufacturing transmission line conductors.
E.3
Potential for U.S. LNG Sales
The LNG regasification facility will require about 0.9 million MT of LNG per year and the U.S.
will likely be a source. Assuming 80 percent of the requirements come from the U.S. and a U.S.
gas price of $3.00 MM/Btu. The annual value of LNG exports will be $154.8 million per year. The
price estimate is for the export price (Henry Hub plus pipeline charge to the liquefaction terminal
plus liquefaction) but does not include the transport or regasification charge. Our estimate is based
on a delivered price of $8.00 per MMBtu delivered price of natural gas to the power plant fence
line. We estimate total gas sales to the power plant at $271 million.
16
In the U.S., project developers are rushing to install liquefaction terminals to participate in the
LNG export market. At the end of 2018, U.S. liquefaction capacity was 32.2 million MT from
three sites. As shown in Table 7, U.S. capacity shows a dramatic increase to 67.4 million MT over
the next two years as projects under construction are completed. Nearly 200 million MT of
capacity are planned for a 2020-2025 startup.
Table 5: U.S. LNG Export Capacity million Metric Tons (MT)
5
Project
Owners
Kenai LNG
Sabine Pass T1-5
Sabine Pass T-6
Cove Point LNG
Cameron LNG T1-3
Conoco Phillips
Cheniere, Blackstone
Cheniere
Dominion
Sempra, Mitsubishi/NYK
Mitsui, ENGIE
Freeport LNG, Osaka Gas, Chubu
Electric
Freeport LNG, IFM Investments
Freeport LNG,
Southern, Kinder Morgan
Cheniere
Cheniere
LNG Ltd.
Lake Charles LNG Export Co.
Venture Global Partners
Farwood LNG
ExxonMobil, Qatar Petroleum,
ConocoPhilips
Freeport LNG T1
Freeport LNG T2-3
Freeport LNG T-4
Elba Island
Corpus Christi T1-2
Corpus Christi T3
Magnolia LNG
Lake Charles
Calcasieu Pass LNG
Delfin FLNG
Golden Pass LNG
Capacity Added/Base
FERC Approved Cumulative Capacity (million MT)
Other U.S Projects in Planning
Projected Total U.S. Capacity (mid-2020s)
5
2018
Base
2019
Startup
2020
Planned
2021 or
later
Planned
1.5
23.8
4.5
6.9
11.7
4.9
4.9
4.9
5.1
2.5
9.6
4.8
7.2
15
10.8
10.8
14
32.2
32.2
33.6
65.8
9.7
75.5
67.4
142.9
118.5
261.4
Data for FERC Approved Projects (EIA), Others Oil and Gas Journal
17
ANNEX 3
U.S. TRADE AND DEVELOPMENT AGENCY
Arlington, VA 22209-3901
NATIONALITY, SOURCE, AND ORIGIN REQUIREMENTS
[As of January 17, 2014]
The purpose of USTDA's nationality, source, and origin requirements is to ensure the
maximum practicable participation of American contractors, technology, equipment and
materials in the prefeasibility, feasibility, and implementation stages of a project.
USTDA STANDARD RULE (GRANT AGREEMENT STANDARD LANGUAGE):
Except as USTDA may otherwise agree, the following provisions shall govern the delivery of
goods and professional services funded by USTDA under the Grant Agreement:
(a) the Contractor must be a U.S. firm;
(b) the Contractor may use U.S. subcontractors without limitation;
(c) employees of U.S. Contractor or U.S. subcontractor firms shall be U.S. citizens, non-U.S.
citizens lawfully admitted for permanent residence in the United States or non-U.S. citizens
lawfully admitted to work in the United States, except as provided pursuant to subpart (d)
below;
(d) up to twenty percent (20%) of the USTDA Grant amount may be used to pay for services
performed by (i) Host Country subcontractors, and/or (ii) Host Country nationals who are
employees of the Contractor;
(e) a Host Country subcontractor may only be used for specific services from the Terms of
Reference identified in the subcontract;
(f) subcontractors from countries other than the United States or Host Country may not be
used;
(g) goods purchased for performance of the Study and associated delivery services (e.g.,
international transportation and insurance) must have their nationality, source and origin in the
United States; and
(h) goods and services incidental to Study support (e.g., local lodging, food, and transportation)
in Host Country are not subject to the above restrictions.
NATIONALITY:
1) Application
A U.S. firm that submits a proposal must meet USTDA’s nationality requirements as of the
date of submission of the proposal and, if selected, must continue to meet such requirements
throughout the duration of the USTDA-funded activity. These nationality provisions apply
to all portions of the Terms of Reference that are funded with the USTDA grant.
2) Definitions
A "U.S. firm" is a privately owned firm that is incorporated in the U.S., with its principal
place of business in the U.S., and which is either (a) more than 50% owned by U.S. citizens
and/or non-U.S. citizens lawfully admitted for permanent residence in the United States, or
(b) has been incorporated in the U.S. for more than three (3) years prior to the issuance date
of the request for proposals; has performed similar services in the U.S. for that three (3) year
period; employs U.S. citizens in more than half of its permanent full-time positions in the
U.S.; and has the existing capability in the U.S. to perform the work in question.
A partnership that is organized in the U.S., has its principal place of business in the U.S., and
is more than 50% owned by U.S. citizens and/or permanent residents, qualifies as a “U.S.
firm”.
A nonprofit organization, such as an educational institution, foundation, or association, also
qualifies as a “U.S. firm” if it is incorporated in the U.S. and managed by a governing body,
a majority of whose members are U.S. citizens and/or permanent residents.
SOURCE AND ORIGIN:
Definitions
“Source” means the country from which shipment is made.
"Origin” means the place of production, through manufacturing, assembly or otherwise.
Questions regarding these nationality, source and origin requirements may be addressed to
the USTDA Office of General Counsel.
Version 01.17.2014
ANNEX 4
GRANT AGREEMENT
This Grant Agreement is entered into between the Government of the United States of America,
acting through the U.S. Trade and Development Agency ("USTDA"), and the Government of the
Dominican Republic, acting through the Ministry of Energy and Mines (the "Grantee"). USTDA
and the Grantee are each referred to herein as a "Party", and collectively as the "Parties". USTDA
agrees to provide the Grantee, subject to the terms and conditions of this Grant Agreement, one
million two hundred nine thousand three hundred and thirty-six United States Dollars
(US$1 ,209,336) ("Grant Funds") to fund the cost of services required in connection with the
preparation of a feasibility study (the "Study") related to the proposed LNG Terminal and Power
Plant Project (the "Project") in the Dominican Republic (the "Host Country").
1. USTDA Grant Funding
The Grant Funds to be provided by USTDA under this Grant Agreement shall be used to fund the
costs of a contract between the Grantee and the U.S. firm to be selected by the Grantee (the
"Contractor") (the "Contract"), under which the Contractor will perform the Study. In no event
will the amounts contributed by USTDA for the Study exceed the amount of the Grant Funds.
Payment to the Contractor will be made directly by USTDA on behalf of the Grantee with the
Grant Funds provided under this Grant Agreement.
2. Terms of Reference
The terms of reference for the Study (the "Terms of Reference") are attached as Annex I to this
Grant Agreement. The Study will assess the site selection and infrastrucuture requirements for a
liquified natural gas terminal, regasification terminal, power plant, and transmission line in the
Dominican Republic. The Grantee shall include these Terms of Reference for the Study as Annex
I to the Contract.
The Grantee acknowledges and understands that the Contractor's performance of the Study must
comply with the entirety of the Terms of Reference, and any modification of the Terms of
Reference set forth in Annex I to the Contract or deviation from their terms must be approved in
writing by USTDA in accordance with the procedures for amendments or other modifications
under the Contract. The Grantee acknowledges and understands that any performance by the
Contractor of work not included in, or not in compliance with, the Terms of Reference, or any
failure by the Contractor to perform any work set forth under the Terms of Reference (in
compliance with those terms), will be ineligible for approval or payment, absent an amendment or
other modification in accordance with such procedures. Consequently, the Grantee shall not
approve any Contractor work performed under the Contract that does not comply with or that
otherwise is not in accordance with the Terms of Reference. The Grantee acknowledges and
understands that any failure to obtain prior written approval for any modifications or deviations
from the Terms of Reference may result in forfeiture by the Contractor of payment for work
performed that is not in compliance with the Terms of Reference and/or a significant delay in
payment of the final invoice.
3. Standards of Conduct
USTDA and the Grantee recognize the existence of standards of conduct for public officials and
commercial entities in their respective countries. Therefore, USTDA and the Grantee shall fully
comply with all United States and Host Country laws relating to corruption or bribery, and shall
not directly or indirectly provide, offer or promise to provide money or anything of value to any
public official in violation of any United States or Host Country laws relating to corruption or
bribery.
4. Grantee Responsibilities
The Grantee shall use its best efforts to (a) promptly reply to notices and other communications,
requests for information and requests for approvals of Invoices or other documents submitted to it
by the Contractor or USTDA, (b) provide reasonable support for the Contractor, such as local
transportation, office space and secretarial support, and (c) promptly notify USTDA in the event
that the Grantee (i) no longer seeks to pursue the Project or complete the Study and/or (ii) would
like to terminate this Grant Agreement.
5. Contract Matters and USTDA's Rights as Financier
(A) Grantee Competitive Selection Procedures
Selection of the Contractor shall be carried out by the Grantee according to its established
procedures for the competitive selection of contractors, with advance notice of the procurement
published online through Federal Business Opportunities (www.fedbizopps.gov). Upon request,
the Grantee shall submit these contracting procedures and related documents to USTDA for
information and/or acceptance.
(B)
USTDA's Right to Object to Contractor Selection
The Grantee shall notify USTDA at the address of record set forth in Article 15 below upon
selection of the Contractor to perform the Study. USTDA shall then review the Grantee's selection
of Contractor, and if USTDA does not object to Grantee's selection, USTDA shall so notify the
Grantee by issuing a "no objection" letter. Upon receipt of USTDA's "no objection" letter, the
Grantee shall (i) notify in writing the selected Contractor that its proposal has been accepted by
the Grantee, and (ii) notify in writing the U.S. firms that submitted unsuccessful proposals to
perform the Study that they were not selected. The Grantee shall then use commercially reasonable
efforts to negotiate a Contract with the Contractor for the performance of the Study.
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(C)
USTDA's Right to Approve Contract Between Grantee and Contractor
(1)
Contract
USTDA will provide to the Grantee an electronic copy of USTDA's standard contract form, and
the Grantee shall, in conjunction with the Contractor, utilize this standard contract form as the
basis for drafting the Contract. Once the Contract has been negotiated between the Grantee and
the Contractor, the Grantee shall transmit to USTDA (or shall request that the Contractor transmit
to USTDA on the Grantee's behalf) a final negotiated draft version of the Contract in an editable
electronic format for USTDA review at the email address set forth in Article 15 below. USTDA
shall advise the Grantee and the Contractor as to whether the draft Contract is ready for execution,
on the understanding that USTDA's approval may be contingent upon certain modifications being
made to the Contract.
(2)
Amendments and Assignments of the Contract
The Grantee understands and acknowledges that no amendment or other modification to the
Contract (or any annex to the Contract) shall be valid unless formally agreed upon in a written
instrument signed by the Grantee and the Contractor and approved by USTDA in a signed approval
letter. The Grantee or the Contractor may submit any proposed amendment or other modification
to the Contract, including any proposed amendment or other modification to any Contract annex,
or any proposed assignment of the Contract, to USTDA for review and comment at the address set
forth in Article 15 below.
(D) USTDA Not a Party to the Contract
The Parties understand and agree that USTDA as a financing entity reserves to itself certain rights
under the Contract, including, but not limited to: (i) the right to approve the terms of the Contract
and any amendments to .the Contract, including assignments, the selection of the Contractor and
all Subcontractors, the Terms of Reference, the Final Report, and any and all documents related to
the Contract or any Subcontract funded under this Grant Agreement, (ii) the right to require the
parties to the Contract to suspend performance of the Terms of Reference upon reasonable prior
written notice to such parties, and upon Contractor's receipt of such written notice, any further
work performed in connection with the Terms of Reference will be at the Contractor's risk, (iii)
the right to suspend disbursements of Grant Funds under Clause 3 of the Contract upon reasonable
prior written notice to the parties to the Contract, and (iv) the right to demand, upon written notice
to the Contractor, a refund from the Contractor of an appropriate amount of any Grant Funds that
have been previously disbursed to the Contractor under Clause 3 -0f the Contract in the event that
(a) the Contractor or any Subcontractor fails to comply in all material respects with the Terms of
Reference or the terms and conditions of the Contract (including the Mandatory Contract Clauses
attached to the Contract), or (b) the Contract [and/or the Study is terminated], and the amount of
Grant Funds disbursed to the Contractor prior to such termination exceeds the value of the work
performed under the Contract in accordance with its terms.
The Parties further understand and agree that USTDA, in reserving any or all of the foregoing
rights, has acted solely as a financing entity to ensure the proper use of United States Government
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funds, and that any decision by USTDA to exercise or refrain from exercising these rights will be
made as a financier in the course of funding the Study and will not be construed as making USTDA
a party to the Contract. The Parties understand and agree that USTDA may, from time to time,
exercise the foregoing rights, or discuss matters related to these rights and the Project with the
parties to the Contract or to any Subcontract, jointly or separately, without thereby incurring any
responsibility or liability to such parties. Any approval or failure to approve by USTDA will not
bar the Grantee or USTDA from asserting any right that it might have against the Contractor, or
relieve the Contractor of any liability which the Contractor might otherwise have to the Grantee
orUSTDA.
(E)
Grant Agreement Controlling
Regardless of USTDA approval, the rights and obligations of any party to the Contract or any
Subcontract thereunder must be consistent with this Grant Agreement (including Annex I and
Annex II). In the event of any inconsistency between this Grant Agreement and the Contract or
any Subcontract funded by this Grant Agreement, this Grant Agreement shall control.
(F)
Subcontractors and Subcontracts
For purposes of this Grant Agreement, (a) the term "Subcontractor" means an individual,
corporation, partnership or other legal entity having a contract, purchase order or other agreement
with the Contractor or with any other Subcontractor for performance of any part of the Study, and
(b) the term "Subcontract" means any such contract, purchase order or other agreement with a
Subcontractor.
6. Disbursement Procedures
(A) USTDA Approval of Contract Required
USTDA will make disbursements of Grant Funds directly to the Contractor only after USTDA
approves the Grantee's Contract with the Contractor.
(B)
Contractor Invoice Requirements
For purposes of this Grant Agreement, the term "Invoice" means any invoice submitted (or to be
submitted) to USTDA by either the Grantee or the Contractor for payment of Grant Funds. The
Grantee shall not approve any Invoice submitted to it by the Contractor unless such Invoice, and
all work performed by the Contractor (or any Subcontractor) in connection with such-Invoice,
complies with the Terms of Reference and the Mandatory Contract Clauses. Following review
and approval by the Grantee of any Invoices submitted by the Contractor under the Contract, the
Grantee may request disbursement of funds by USTDA to the Contractor for performance of the
Study by submitting such approved Invoices in accordance with the procedures set forth in the
Mandatory Contract Clauses.
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7. Effective Date
The effective date of this Grant Agreement (the "Effective Date") shall be the date of signature by
both Parties or, if the Parties sign on different dates, the date of the last signature. In the event that
only one signature is dated, such date shall constitute the Effective Date.
8. Study Schedule
(A) Study Completion Date
The Parties' estimated completion date for the Study is set forth in Clause K(l) of the Mandatory
Contract Clauses.
(B)
Time Limitation on Disbursement ofUSTDA Grant Funds
Except as USTDA may otherwise agree, (i) no Grant Funds may be disbursed under this Grant
Agreement for goods and services which are provided prior to the Effective Date, and (ii) no Grant
Funds may be disbursed other than during the period set forth in Clause K(2) of the Mandatory
Contract Clauses.
9. USTDA Mandatory Contract Clauses
The Contract to be funded under this Grant Agreement shall include the USTDA Mandatory
Contract Clauses set forth in Annex II to this Grant Agreement (the "Mandatory Contract
Clauses"). The Grantee shall use commercially reasonable efforts to ensure that the Contractor
complies with the Mandatory Contract Clauses in all material respects and shall promptly notify
USTDA of any breach of the Mandatory Contract Clauses on the part of the Contractor of which
the Grantee becomes aware.
10. Nationality, Source and Origin
For purposes of this Grant Agreement, the term "U.S. Firm" means:
(i)
a privately owned firm or partnership that is formed, incorporated or organized in the
U.S., with its principal place of business in the U.S., and which is:
(a) more than fifty percent (50%) owned by U.S. citizens and/or non-U.S. citizens
lawfully admitted for permanent residence in the United States; or
(b) satisfies each of the following criteria:
(I)
(II)
(III)
has been incorporated or organized in the U.S. for more than three (3) years
prior to the issuance date of the request for proposals;
has performed similar services in the U.S. for that three (3) year period;
employs U.S. citizens in more than half of its permanent full-time positions
in the U.S.; and
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(IV)
(ii)
has the existing capability in the U.S. to perform the work in question; or
a nonprofit organization that is incorporated in the U.S. and managed by a governing
body, a majority of whose members are U.S. citizens and/or non-U.S. citizens lawfully
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admitted for permanent residence in the United States.
In addition, the term "Source" means the country from which a shipment is made, and the term
"Origin" means (x) the place of production of a good, whether through manufacturing, assembly
or otherwise, or (y) the place from which delivery of a service is administered, as applicable.
Except as USTDA may otherwise agree, the following provisions shall govern the delivery of
goods and professional services funded by Grant Funds under this Grant Agreement:
(A) the Contractor and all Subcontractors that are legal entities must be U.S. Firms;
(B) all natural persons who deliver any part of the Study as the Contractor, as a Subcontractor,
or as an employee of the Contractor or any Subcontractor, in each case, must be (i) U.S. citizens,
(ii) non-U.S. citizens lawfully admitted for permanent residence in the United States, or (iii) nonU.S. citizens lawfully admitted to work in the United States;
(C) notwithstanding the provisions of Articles 1O(A) and lO(B), up to twenty percent (20%) of
the Grant Funds may be used to pay for work performed in connection with the Study by (i)
Subcontractors that are organized as legal entities under the laws of the Host Country, and/or (ii)
natural persons working as a Subcontractor, or as employees of the Contractor or any
Subcontractor, in each case, who are citizens of the Host Country;
(D) a Host Country Subcontractor may only be used for specific services from the Terms of
Reference identified in the Subcontract;
(E) no part of the Grant Funds disbursed in connection with the performance of the Study may
be used to pay (i) any legal entity that is incorporated or organized under the laws of a jurisdiction
other than one of the United States or the Host Country, or (ii) a natural person who is a citizen of
a country other than the United States (except as expressly provided in Article lO(B)) or the Host
Country; and
(F) goods purchased for the performance of the Study and associated delivery services (e.g.,
international transportation and insurance) must have their nationality, Source and Origin in the
United States; provided, however, that goods and services incidental to Study support (e.g., local
lodging, food and transportation) in the Host Country are not subject to the foregoing restrictions.
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11. Taxes
Grant Funds provided under this Grant Agreement shall not be used to pay any taxes, tariffs, duties,
fees or other levies imposed under laws in effect in the Host Country, except for taxes of a de
minimis nature imposed on local lodging, food, transportation or airport arrivals or departures. The
Grantee may not seek reimbursement from USTDA for any such taxes, tariffs, duties, fees or other
levies.
12. USTDA Project Evaluation
The Parties shall cooperate to ensure that the purposes of this Grant Agreement are accomplished.
For five (5) years following receipt by USTDA of the Final Report (the "Evaluation Period"), the
Grantee agrees to respond to any reasonable inquiries from USTDA about the status of the Project.
Inquiries will include, but will not be limited to, (a) whether the Final Report recommendations
have been or will be used to implement the Project, (b) the anticipated Project implementation
timeline, (c) the likely sources of financing for the Project, and (d) the sources of procurements
supporting implementation of the Project. In addition, the Grantee agrees to notify USTDA any
time the Grantee selects a new primary contact person for the Project during the Evaluation Period.
13. Grantee Recordkeeping and Audit
The Grantee agrees to maintain books, records and other documents relating to the Study, the
Contract and this Grant Agreement adequate to demonstrate implementation of its responsibilities
under this Grant Agreement and the Contract, including the selection of the Contractor and
Subcontractors, receipt and approval of Contract deliv.erables and approval or disapproval of
Invoices for payment by USTDA. Such books, records and other documents shall be .separately
maintained for a period of three (3) years after the date of the final disbursement by USTDA. The
Grantee shall afford USTDA or its authorized representatives the opportunity at reasonable times
to review such books, records and other documents relating to the Study, the Contract and this
Grant Agreement.
14. Represenhttion of Parties
For all purposes relevant to this Grant Agreement, the Government of the United States of America
will be represented by the U.S. Ambassador to the Host Country or USTDA, and the Grantee will
be represented by its Minister of Energy and Mines at the address of record set forth in Article 15
below. The Parties may, by written notice to the other Party, designate additional representatives
for all purposes under this Grant Agreement.
15. Addresses of Record for Parties
Any notice, request, document or other communication submitted by either Party to the other under
this Grant Agreement shall be in writing or sent through an electronic medium that produces a
tangible record of the transmission, such as a facsimile or email message, and will be deemed duly
given or sent when delivered to such Party at the following address of record, as applicable:
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(A) For the Grantee:
To:
Title:
Address:
Phone:
Fax:
Email:
(B)
Vilma I. Arbaje
Director of International Relations and
Cooperation
Ministry of Energy and Mines
Ave. Tiradentes #53, esquina Heriberto
Pieter, Bloque B, Ensanche Naco
Santo Domingo
DOMINICAN REPUBLIC
+ (809) 373-1800 ext. 2291
+ (809) 373-1800
[email protected]
ForUSTDA:
To:
Address:
Phone:
Fax:
Email:
U.S. Trade and Development Agency
1101 Wilson Boulevard, Suite 1100
Arlington, VA 22209-2275
USA
(703) 875-4357
(703) 997-2392
[email protected]
All such communications shall be in the English language, unless the Parties otherwise agree in
writing. In addition, the Grantee shall provide the Commercial or Economic Section of the U.S.
Embassy in the Host Country with a copy of each notice, request, document or other
communication sent to USTDA.
Any communication relating to this Grant Agreement shall include the following fiscal data:
Appropriation No.:
Activity No.:
Reservation No.:
Grant No.:
11 19/20 1001
2019-51016A
2019238
1131PL19GH51238
16. Implementation Letters
To assist the Grantee and the Contractor in the implementation of the Study, USTDA may, from
time to time, issue implementation letters that will provide additional information about matters
covered by this Grant Agreement or correct immaterial errors. Without limiting the generality of
the foregoing, USTDA may issue implementation letters, among other reasons, to: (a) extend the
estimated completion date set forth in Clause K(l) in Annex II, (b) extend the availability period
of Grant Funds set forth in Clause K(2) in Annex II, (c) change the fiscal data set forth in Article
15, (d) change a Party's address of record or point of contact, (e) make immaterial changes to the
Terms of Reference, and (t) correct scrivener's errors. The Parties may also use jointly agreed
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upon implementation letters to confirm, clarify and/or record their mutual understanding of matters
covered by this Grant Agreement.
17. Amendments and Assignments of this Grant Agreement
Either Party may submit to the other Party at any time a proposed amendment to this Grant
Agreement (including Annex I and Annex II). Any proposed amendment to this Grant Agreement
will be effective only if it has been signed by both Parties. Any proposed assignment of this Grant
Agreement must be approved by both Parties in writing in order to be effective.
18. Termination
(A)
Termination Events
Either Party may terminate this Grant Agreement at any time by giving the other Party prior written
notice thereof. Notwithstanding the foregoing provision, if the U.S. Office of Foreign Assets
Control determines that either of the Grantee or the government of the Host Country has acted in
violation of any sanctions laws or executive orders established by the United States Government,
this Grant Agreement will terminate immediately without need for further action or notice on the
part of either Party.
(B)
Effect of Termination
The termination of this Grant Agreement will end any obligations of the Parties to provide financial
or other resources for the Study (including, without limitation, any obligation of USTDA to
provide the Grant Funds), except for payments that may be made by USTDA to the Contractor
pursuant to Clause H of the Mandatory Contract Clauses set forth in Annex II to this Grant
Agreement. This Article and Articles 5, 11, 12, 13, and 20 of this Grant Agreement shall survive
termination of this Grant Agreement.
19. Waiver
No provision of this Grant Agreement may be modified, waived or discharged unless such
modification, waiver or discharge is agreed to in writing and signed by each Party. No waiver by
either Party of any breach of, or of compliance with, any condition or provision of this Grant
Agreement by the other Party will be considered a waiver of any other condition or provision or a
waiver of the same condition or provision at another time. No delay in exercising any right or
remedy accruing to either Party in connection with this Grant Agreement shall be construed as a
waiyer of such right or remedy.
20. U.S. Technology and Equipment
By funding the Study, USTDA seeks to promote the Project objectives of the Host Country through
the use of U.S. technology, goods and services. In recognition of this purpose, the Grantee agrees
that it will allow U.S. suppliers to compete in the procurement of technology, goods and services
needed for Project implementation.
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21. Governing Law
This Grant Agreement is governed by, and construed in accordance with, the applicable laws of
the United States of America. In the absence of applicable federal law, the laws of the State of
New York shall apply.
22. Counterparts; Language
This Grant Agreement may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same Grant Agreement. Counterparts may
be delivered via email or other transmission method and any counterpart so delivered shall be
deemed to be valid and effective for all purposes. This Grant Agreement may be executed in two
or more languages, but in the event of any conflict or inconsistency between the English language
version of this Grant Agreement and any other version, the English language version of this Grant
Agreement will control.
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IN WITNESS WHEREOF, by signing below, each of the signatories hereby certifies that it is a
duly authorized representative of the applicable Party, and the Parties, each acting through its duly
authorized representative, have caused this Grant Agreement to be signed in their names and
delivered as of the date written below.
For the Government of the
United States of America:
By:
Thomas R. Har jy
Director (Acting), U.S. Trade and
Development Agency
Annex I-Terms of Reference
Annex II - USTDA Mandatory Contract Clauses
For the Government of the
By:
Anto111
Minister of Energy and Mines
Annex I
Terms of Reference
These terms of reference ("Terms of Reference") in this Annex I set forth the terms, conditions,
provisions and specifications for the performance of the feasibility study ("Study") for the benefit
of the Ministry of Energy and Mines (the "Client").
(the
"Contractor") shall perform the Study in accordance with these Terms of Reference pursuant to
this Contract between the Contractor and the Client, of which Contract this Annex I is a part.
The Contractor's performance of the Study must comply with the entirety of these Terms of
Reference, and any modification of or deviation from these Terms of Reference must be approved
in writing by USTDA in accordance with the procedures for amendments or other modifications
under this Contract. The Contractor acknowledges and agrees that (i) any performance by the
Contractor of work not included in, or not in compliance with, these Terms of Reference, or any
failure by the Contractor to perform any work set forth under these Terms of Reference (in
compliance with those terms), will be ineligible for approval or payment, absent an amendment or
other modification in accordance with such procedures, and (ii) failure to obtain prior written
approval from USTDA for any modifications or deviations from these Terms of Reference may
result in forfeiture of payment for work performed that is not in compliance with these Terms of
Reference and/or a significant delay in payment of the final invoice.
Study Obj
tive
The objective of the Study is to assist the Client in assessing site selection and the infrastructure
requirements for a liquified natural gas ("LNG") terminal, regasification terminal, power plant,
transmission line, and related equipment in the province of Monte Cristi, near the municipality of
Pepillo Salcedo. The Study will allow the Client to evaluate the technical, economic, and financial
feasibility of the Project.
General Considerations
The Contractor shall undertake a quality control review process, including a technical and editorial
review, of all deliverables and documents submitted to the Client to ensure readability, accuracy,
and consistency. All deliverables and documents shall be submitted in draft form to the Client for
review and comment prior to finalization. The deliverables specified in these Terms of Reference
shall serve to keep the Client informed about the Contractor's work on the Study and to ensure
that the Contractor's work is performed satisfactorily, in accordance with applicable Contract
provisions and the terms and conditions of the USTDA Grant Agreement (per Clause G of Annex
II of the Grant Agreement). All deliverables shall be submitted in English, unless otherwise
indicated.
Annex 1-1
Phase I
Task 1:
Kick-Off Meeting, Document Request, and Work Plan Development
No later than one month after Contract approval, the Contractor shall travel to the Dominican
Republic to meet with the Client and other stakeholders (as identified by the Client) to kick-off the
Study and visit potential Project sites and their surrounding areas. The Contractor shall develop
and deliver a draft work plan for the Study to the Client no less than one week prior to the kickoff meeting. The work plan shall include the schedule of tasks and key resources to be deployed,
as well as a communications plan. The work plan shall also include a document list that the
Contractor requires from the Client.
The objectives of the kick-off meeting are to:
a)
b)
c)
d)
e)
f)
Confirm the Client's objectives for the Study and for Project implementation;
Review the timing of key milestones for Study and Project development;
Review the tasks to be performed by the Contractor;
Identify the key Client representatives with whom the Contractor shall work;
Identify information that can be made available to the Contractor to complete the Study;
Review specific tasks requiring Client assistance, including providing details of the
existing and planned power plant projects, power generation needs, existing power
purchase agreements, and preliminary site studies. The Client shall provide to the
Contractor any preliminary studies of the proposed Project sites that it has collected,
including site descriptions, site conditions, aerial photos, descriptions of neighboring
activities, coastal and/or river conditions, and environmental conditions. Also, the Client
shall assist the Contractor in meeting with key Dominican government officials to access
critical Project-related data. This government-held data may include nautical traffic
studies, bathymetry studies, adjoining property ownership records, environmental reports,
and similar government-held information;
g) Agree on the preferred means of communicating throughout the Study;
h) Agree on the format of monthly reports and other forms of Study-related deliverables and
communications, as well as the deliverable receipt and deliverable acceptance certificates
required by the Client (separate and apart from the invoice certifications required under
Clause G of Annex II of the Grant Agreement); and
i) Agree on a final work plan for the Study.
Deliverable #1 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 1.
Task 2:
LNG Market Analysis, LNG Supply, Transport Capacity, and Commercial
Terms
Subtask 2.1 Document Review
The Contractor shall conduct detailed research on the global LNG market, with the focus on
sources of supply, new and future LNG export terminal projects, current and future demand,
Annex 1-2
competing LNG regasification terminal projects (including the existing LNG terminal on the south
coast of the Dominican Republic), and new vessel constructions and retirements. The Contractor
shall also research the regional LNG market. On the supply side, the Contractor shall review in
detail the developments in the Atlantic Basin LNG market, focusing on the Caribbean and Latin
America, United States, West Africa, and the Middle East. This review shall include:
a) Overview of LNG pricing in the region and globally;
b) An overview of the logistics and transportation infrastructure for sourcing LNG;
c) Identification of existing and expected future supply of LNG globally, especially new
export terminals projects, and contractual agreements (as available); and
d) New LNG supply ventures, including LNG terminals, bunkering projects, and emerging
trading companies focusing on the Atlantic Basin.
Subia k 2.2 Electricil yMarlcet As ·essmenl
The Contractor shall conduct a detailed analysis on the Host Country electricity market, with a
focus on sources of supply, new and future power generation projects, demand forecast, competing
power generation projects (including existing power plants), and power plant constructions and
retirements. In addition, the Contractor shall research the demand market, including the
distribution companies ("DISCOS") and the non-regulated market (comprised of large users 1
megawatt and above).
The Contractor shall obtain demand growth estimates from the Client and other Dominican
government and utility sources. The Client shall support the Contractor in the collection of relevant
data. The Contractor shall also research the status of the fuel oil and diesel generation units and
the potential for them to be converted to gas, taking into account the location, age, and size of the
generating units to define the likely and possible generating units that could be converted to gas.
The Contractor shall review their findings with the Client, and based on demand growth,
conversions, and non-power opportunities, the Contractor shall prepare a gas demand forecast
through 2030.
The Contractor shall forecast the LNG volumes needed to support the Project's power plant buildout. Based on that forecast, the Contractor shall prepare a preliminary plan for LNG delivery and
storage requirements.
Subtask 2. 3 LNG Mttrkel Assessment
The Contractor shall prepare an LNG supply and demand forecast that focuses on the new and
emerging suppliers, as well as the global and regional demand for LNG. The supply forecast shall
be based on announced and planned future projects, and shall outline the rationale for the forecast
and the planned future projects. The demand forecast shall incorporate all announced and
anticipated future projects. The Contractor shall incorporate optimistic, pessimistic, and base cases
in their forecast and outline the rationale for each case. The Contractor shall analyze the
competitive LNG market and LNG suppliers to determine LNG supply capacity and availability
from each LNG supply project.
Annex 1-3
For likely Atlantic Basin supply sources, the Contractor shall collect specifications on the LNG
supply, including gross heating value, composition, and contaminants. The Contractor shall seek
information from suppliers and trading companies as appropriate.
Subtask 2. 4 LNG Price Forecast
The Contractor shall prepare an LNG price forecast three years out on a quarterly basis, based on
macroeconomic trends and the supply and demand forecasts. The Contractor shall incorporate
supply growth estimates in the price forecast, as well as new market entrants on the demand side.
The Contractor shall also incorporate new projects and projected project development delays in
the supply growth estimates. The Contractor shall also research regional pricing and the LNG price
index that would apply in the Caribbean market. The Contractor shall also estimate the impact of
longer-term, large-scale projects on LNG availability and shall indicate where there may be
periods of supply shortage, based on the market assessment.
The Contractor shall collect information regarding LNG freight and shipping insurance costs for
the delivery of LNG to the Dominican Republic, as well as LNG prices offered by various potential
suppliers.
Subtask 2. 5 LNG Transport Capacity
The Contractor shall evaluate the option for LNG bunkering in the region and determine how that
option may impact the Project' s LNG terminal component. The Contractor shall analyze the global
LNG tanker fleet to identify the class of vessels that would be capable of supplying the Project
initially and throughout the power plant build-out. The Contractor shall outline specific technical
issues that may hinder access for various types of vessels that could supply the LNG terminal.
Subtask 2. 6 Commercial Terms
The Contractor shall meet with at least 10 LNG suppliers, including international oil companies,
national oil companies, LNG terminal operators, and LNG brokers and traders from the United
States, the Caribbean, and elsewhere to define the market interest in supplying LNG to the Project.
The Contractor shall define the commercial opportunties with the possible suppliers as it relates to
long-term contract commitments, selling strategy (spot versus long-term), and storage and tolling
options. The Contractor shall request draft contract terms from the interested suppliers. The
Contractor shall also prepare an assessment of the supply options for the Project during the
commissioning phases and after completion of the power plant build-out, as well as for existing
power plants in the Dominican Republic.
Subtask 2. 7 Arbitrage, Storage, and Pri ·e Risk Mitigation Measures
Based on the discussions with the potential suppliers, the Contractor shall prepare a briefing
document for the Client outlining the potential to utilize U.S. gas storage capabilities for price
arbitrage and other measures to reduce price risk during periods of high LNG prices. The briefing
document shall also outline the options for long-term stor~ge of gas in the United States for
hedging during periods of price spikes.
Annex I-4
Deliverable #2 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 2.
Task 3:
Technical Site Scoping Comparison and Site Assessment
The Contractor shall assess the viability of the primary Project site at Monte Cristi. The Project
site footprint shall incorporate the proposed LNG terminal, regasification terminal, power plant,
and supporting infrastructure. The Client shall provide the Contractor with existing Project-related
studies, data, and industry contacts. The Contractor shall collect and review the relevant Host
Country national, provincial, and municipal requirements for design standards and technical
specifications related to the Project.
The Contractor shall prepare a design parameters memo. The memo shall outline the key design
parameters for a new LNG terminal, including metocean, environmental factors, operability,
access, safety, and security. The Contractor shall visit the Project site to review specific site issues.
The Contractor shall address the following technical issues:
1. Assessment of the suitability of the Project site for an LNG terminal (including
onshore/offshore storage and regasification units), considering the following factors:
a. Marine environment and operations;
b. Land and coastline availability and suitability for development;
c. Berth and terminal concept;
d. Port infrastructure and operations;
e. Connectivity to regasification terminal and storage units;
f. Potential for overland pipe conveyance corridors from the LNG terminal to gas
distribution infrastructure or directly to the power plant; and
g. Environmental concerns.
2. Evaluation of the requirements to connect the LNG terminal via gas pipeline to existing
major fuel-fired power plants:
a. Topography;
b. Possible pipeline routes;
c. Rights of way;
d. Land acquisition issues; and
e. Capacity, characteristics, and volumetric analysis of the existing or planned gas
grid distribution infrastructure (based on available information) to determine its
ability to receive and transport new natural gas volumes.
3. Access to customers: market assessment to integrate with the current and future power
plants.
4. Existing supporting infrastructure and maintenance services: assessment of the needs for
supporting infrastructure to support the LNG terminal and pipeline (e.g., sources of fresh
water, utility services, road access, maintenance services, and labor).
5. Community support: assessment and mitigation of any local community concerns.
Annex 1-5
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The Contractor shall prepare a preliminary evaluation of the Project site and shall assess the
following:
1. Total capital expenditure ("CAPEX") to complete the Project (at this stage, these
assessments should be done at a planning level);
2. Schedule risk assessment: evaluation of the overall implementation timeline risks for the
proposed Project site, including the anticipated length of time to secure necessary permits,
design, and construction at each location involved in the Project. The Contractor shall
address the following issues that may cause delays:
a. Land acquisition;
b. Environmental permitting;
c. Near-shore development, including harbor or breakwater development, dredging,
moorings, floating storage regasification units ("FSRUs"), and offshore pipelines;
and
d. Pipeline construction.
3. Operational expenditure ("OPEX") for the life of the Project;
4. Annual LNG sales;
5. Environmental and social impacts;
6. The Project site's long-term suitability to meet phased capacity expansion targets; and
7. Host Country government and community support for the Project site.
If at any time during this task, the Contractor determines there is a significant issue with the
primary Project site that would prevent or seriously impact the Project, the Contractor shall submit
its concerns in writing to the Client and USTDA. If after reviewing the concerns, the Client and
USTDA determine the issues to be valid, USTDA will issue an implementation letter, and the
Contractor shall repeat Task 3 for the back-up Project site. The back-up Project site shall only be
assessed if the primary Project site is not viable.
Deuverable #3 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 3.
Upon completion of Tasks 1, 2, and 3, the Client will assess the results of Phase I in consultation
with the Contractor and USTDA and will determine if completing Phase II of the Study is
warranted. Upon receipt and review of the Client's determination, USTDA will issue an
implementation letter confirming the Client's decision, it being understood that USTDA reserves
the right to terminate the Study if USTDA determines that it is not appropriate or desirable to
proceed to Phase II. If Phase II is eliminated from the Study, then Tasks 4, 5, 6, 7, 8, 9, 10, 11, 12,
and 13 would be eliminated from the Terms of Reference, and the Contractor would proceed to
complete Task 14, which would be performed in reference to the work completed in Phase I of the
Study.
7
Annexl-6
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1
Phase II
Task 4:
Detailed Site Investigation
Subtask 4. l Svslems lnlegration
The Contractor and the Client shall define, at a minimum, the proposed locations for the LNG
terminal, LNG storage area, power plant area (adjacent to the LNG terminal), major roads, utility
corridors, and other major building areas. The Contractor shall define the connection requirements
between the LNG storage terminal and the power plant or pipeline, including specific technical
requirements, such as pump stations, pipe sizes, gas delivery pressure, the possible range of gas
compositions, and backflow. The gas demand requirements of the power plant (including volumes,
pressures, and moisture requirements) shall be considered as the base case scenario for the
Project's financial model to be developed in Task 7.
, ubtc1s/, 4. 2 ?reliminarv ile Plan
The Contractor shall develop a preliminary site plan in block diagrams formatted to scale. The
Contractor shall ensure the site plan includes, at a minimum, the proposed locations for the LNG
terminal, LNG storage area, power plant area (adjacent to the LNG terminal), major roads, utility
corridors, and other major buildings. The Contractor shall review the site plan with the Client and
shall incorporate the Client's comments.
Subtask 4.3 Preliminary Techn ical Analysis and .AtJeeting, with Rele1 ant Authorities
The Client shall provide the Contractor with all existing studies, data, and industry contacts that
the Client has developed in researching the Project. The Contractor shall review this information,
and other relevant publicly available information, including the geotechnical aspects, topography,
hydro-meteorology of the Project site, adjoining landholdings, and nautical traffic leading to the
Project site. The Contractor shall collect relevant documentation on prior land uses at the Project
site, neighboring land uses, and maritime traffic. The Contractor is responsible for collecting any
additional information not provided by the Client that is required to complete the preliminary
technical analysis.
The Contractor shall meet with Dominican government agencies and local authorities responsible
for construction, nautical channels, and environmental protection at the Project site. The
Contractor shall seek relevant site information, regulatory guidance, and permission to conduct
studies at the selected Project site. The Client shall confirm the list of relevant authorities for the
Contractor to meet with and shall provide letters of introduction as appropriate. The relevant
Dominican government agencies and local authorities include the following, among others:
a-. Comisi6n Nacional de Energia
b.
c.
d.
e.
Superintendencia de Electricidad
Corporaci6n Dominicana de Empresas Electricas Estatales
Empresa Distribuidora de Electricidad del Norte
Empresa Distribuidora de Electricidad del Sur
Annex I-7
f
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f. Empresa Distribuidora de Electricidad del Este
g. Empresa de Transmisi6n Electrica Dominicana
h. Empresa de Generaci6n Hidraulica Dominicana
1.
Ministerio de Hacienda
J. Ministerio de Medio Ambiente y Recursos Naturales
k. Ministerio de Industria y Comercio y Mypimes
1. Ministerio de Economia Planificaci6n y Desarrollo
m. Ministerio de Defensa
n. Armada de Republica Dominicana
o. Cuerpo de Bomberos de Republica Dominicana
p. Liga Municipal Dominicana
q. Ayuntamiento de Castafiuelas
r. Ayuntamiento de Palo Verde (Distrito Municipal)
s. Ayuntamiento de Guayaban
t. Ayuntamiento de Hatilfo Palma (Distrito Municipal)
u. Ayuntamiento de Villa Elisa (Distrito Municipal)
v. Ayuntamiento de Cana Chapet6n (Distrito Municipal)
w. Ayuntamiento de Las Matas de Santa Cruz
x. Ayuntamiento de Pepillo Salcedo (Manzanillo)
y. Ayuntamiento de Santa Maria (Distrito Municipal)
z. Ayuntamiento de San Fernando de Montecristi
aa. Ayuntamiento de Villa Vasquez
In addition, the Contractor shall collect and review Host Country and international safety,
transportation, and storage guidelines for LNG terminals and LNG storage facilities, which may
include a review of a broad scope of existing reports and data related to specific safety guidelines
for LNG terminal siting and operations. The Contractor shall review the following documents and
guidelines regarding LNG terminal development:
•
•
•
•
•
•
•
•
•
•
•
•
NFPA 59A - Standard for the Production, Handling, and Storage of Liquefied Natural Gas
(2013 edition);
EN 1473:2007 - Installation and Equipment for LNG - Design of Onshore Installations;
Seveso III Directive EU Directive 2012/18/EU;
USCG - Guidance Related to Waterfront LNG Facilities - Including Information on
assessing the Suitability of Waterways for LNG Marine Traffic;
Guide to Contingency Planning for Marine Terminals Handling Liquefied Gases in BulkSIGTTO;
Guidance on performing a risk assessment in the design of onshore LNG installations
including the ship/shore interface- ISO draft 116901;
LNG Operations in Port Areas - SIGTTO;
BS EN 13645:2002 - Installations and equipment for LNG - Design of onshore
installations;
U.S. 33 CFR Part 127 - Waterfront Facilities Handling LNG and LHG;
Port Marine Safety Code of the UK, Merchant Shipping Acts;
Site Selection and Design for LNG Ports and Jetties (IP No. 14)- SIGTTO; and
LNG Overview - U.S. Federal Energy Regulatory Commission.
Annex I-8
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Based on the above documents and guidelines, the Contractor shall assess the following issues:
•
•
•
•
Safety distance from LNG terminal and LNG pipelines to adjacent buildings, industrial
zones, and local residential areas;
Safety distance from unloading arm at the jetty for loading/unloading operations;
Safety distance between moored LNG carriers and between moored carriers and a passing
ship; and
Safety distance of LNG carriers and other cargo vessels when moving in the channel.
With respect to Host Country legislation and regulations related to LNG, the Contractor shall
review the following laws and regulations, at a minimum:
•
•
•
•
•
•
•
•
Ley No. 112-00, Tributaria de Hidrocarburos, de fecha 19 del mes de noviembre del afio
2000;
Ley No. 7128 sobre Tanques de Combustibles, de fecha 9 de junio del afio 1948;
Decreto No. 307-01 que aprueba el Reglamento para la Aplicaci6n de la Ley Tributaria de
Hidrocarburos, No. 112-00, de fecha 2 del mes de marzo del afio 2001;
Decreto No. 264-07, que declara de interes nacional el uso del gas natural, para su interes
social, econ6mico y medio ambiental, de fecha 22 del mes de mayo del aiio 2007;
Resoluci6n No. 01-08 de fecha 3 de enero del afio 2008, emitida por el MIC, que expide el
Reglamento que establece los Procedimientos para el Otorgamiento de Licencias para las
Actividades Relacionadas con la Comercializaci6n de Gas Natural;
Resoluci6n No. 121-07, de fecha 16 de agosto del aiio 2007, emitida por el MIC, establece
el Reglamento que regula el Decreto No. 264-07, en lo concemiente al uso del Gas Natural
Vehicular, cuyo objeto es promover y desarrollar su uso, regular el expendio de GNV, los
Talleres y los Equipos de Conversion Vehicular a GNV;
Resoluci6n No. 33-08, de fecha 28 de marzo del afio 2008, emitida por el MIC, establece
las tarifas a pagar por las servicios de otorgamiento de Licencias relacionadas con el
desarrollo de las actividades de comercializaci6n del Gas Natural; and
Pending Host Country legislation regulating the LNG and electrical generation sectors.
The Contractor shall also collect specific vessel class details to define the requirements for LNG
transfer from ship-to-shore and the requirements for moorings and cargo transfer mechanism
height. Vessel design changes (length, width, and draft) shall be accounted for in this effort. The
Contractor shall evalaute future trends in vessel design and LNG cargo and transfer equipment.
For Subtasks 4.4, 4.5, and 4.6, the Contractor shall propose survey scope, methods, quantities (e.g.,
number of sample locations, boreholes, measurement sites, grid-scale), standards to be applied,
.and schedule for executing the field assessments. Before commencing each assessment, the
Contractor shall submit to the Client its specific plans for the assessments, which shall include the
following:
a)
b)
c)
d)
The scope of the assessment;
Quantities (e.g., number of sample locations, boreholes, measurement sites, grid scale.);
Specific sample locations;
Field and laboratory assessment methods;
Annex 1-9
e)
f)
g)
h)
i)
j)
k)
1)
Field and laboratory equipment;
Measurement methods and criteria;
Assessment staff;
Quality control measures;
Safety measures;
Required permits;
Environmental management plan; and
Restoration plan.
The Contractor shall obtain approval from the Client prior to initiating the field assessments. The
Contractor shall ensure that the survey and assessment methods defined for Subtasks 4.4, 4.5, and
4.6 be conducted in compliance with national and local building codes relating to quality control
and maintenance of construction works, including but not limited to:
a) Establish and approve the construction survey objectives and execution plan;
b) Manage the quality of the construction survey; and
c) Inspect, grant acceptance, and approval of the technical construction survey results.
In addition, the Client shall provide the Contractor with the relevant regulations and
recommendations regarding the standards that should be included in all assessments.
Subtask 4.4 Geotechnical Assessment
The Contractor shall undertake a geotechnical assessment to provide the guidance necessary to
complete the basic design for the LNG terminal, power plant, and storage facility. The geotechnical
assessment shall be of sufficient scope and scale to define the layout optimization and land area
required for the LNG terminal, power plant, and storage facilities. The geotechnical assessment
shall include:
a) A review and analysis of available documents obtained either from the Client or
commercial sources, on-site geology, engineering geology and earthquakes, aerial
photographic maps, and satellite images of the Project site and surrounding area;
b) Subsurface characterization through soil borings: the Contractor shall utilize national and
international building standards for defining the number and depth of borings at the Project
site, which shall be mutually agreed to by the Contractor and Client; and
c) Laboratory and field tests of boring samples and boreholes.
The Contractor shall prepare a geotechnical assessment report, which shall include the following:
a) Analysis and assessment of the physio-mechanical properties of the foundation soil, which
shall describe the uniformity of the subsurface conditions supporting the required process
units, building foundations, and heavy pavement sections;
b) Recommendations of specific foundation concepts best suited for the Project site,
including, but not limited to, foundation types (such as spread footings or pile foundation),
soil improvement requirements, and any backfill zones;
Annex 1-10
c) Identification and assessment of the site geotechnical risks and recommended mitigation
measures; and
d) Definition of the possible earthquake risk, including micro-seismic earthquake risks and
proposed risk mitigation measures for seismic hazards related to the design of on-shore and
marine structures and the potential for subsurface liquefaction during seismic events.
ubtask 4.5 Topographic and Bathymelric. un evs
The Contractor shall conduct topographic and bathymetric surveys at the proposed onshore and
offshore parameters of the Project site (extending outward from the site property lines) to support
the definition of the proposed shipping channel and surrounding areas to support the study and
design of the LNG terminal, storage facility, berthing, and expected shipping lane. The technical
requirements for the survey work shall comply with the current Host Country regulations, codes,
and standards, which shall be provid~d by the Client.
The Contractor shall ensure that the surveys include the following:
a) Collection and analysis of Client-provided and publicly available topographic and geodetic
data, and cadastral maps of the site and relevant surrounding areas. The Contractor shall
coordinate with the Client and local experts (such as local contractors and others who have
done previous topographical and bathymetric studies of the site and shipping channel). The
site topographic maps shall be of sufficient detail to allow for site planning and review.
b) Establish a geodetic control point network for mapping, topographic survey, and other
survey activities. The accuracy of the horizontal control point shall be equivalent to a firstorder traverse point. The network shall be connected to class IV triangulation points by
using a suitable GPS device and with a static measurement method.
c) The class IV leveling shall be used to measure the elevation of first-order traverse points.
The vertical control network shall be connected to at least two state class III elevation
points available in the area.
d) The topographical mapping shall be at a scale of 1: 1000 with a contour lines interval of 0.5
meters. The mapping boundary shall cover the onshore and riverbed areas for the LNG
terminal, storage facility, berthing, and expected shipping channel.
e) The engineering geodetic survey supporting the engineering geological assessment and
hydrographic survey shall include positioning and geodetic connecting excavations
(boreholes), geophysical, flood trace points and other points, and measurement of hydraulic
sections.
The Contractor shall prepare a topological and bathymetric survey report, which shall provide a
complete and detailed description of works performed, data processed, calculations, and results
achieved.
Subtask 4. 6 Hydro-Jvleteorological Assessment
The Contractor shall conduct a hydro-meteorological assessment at the Project site to support the
study and design of the LNG terminal, storage facility, berthing, and the expected shipping lane.
The hydro-meteorological assessment shall include the following:
Annex I-11
't2--
a) Based on data collected from the Client and publicly-available sources, the Contractor shall
update and analyze hydro-meteorological data available for the Project site, in sufficient
detail to define hydro-meteorological characteristics and flooding potential;
b) The Contractor shall measure to verify the prior data and update (as appropriate) the
hydrographic cross-sections and add additional ones. Utilizing the prior data and newly
collected data, the Contractor shall assess the rate of sedimentation at the areas of interest
to the Project;
c) The Contractor shall conduct a tidal survey to ensure vessel access and ship channel
requirements at the Project site, including the capture of any seasonal variations.
d) The Contractor shall calculate hydro-meteorological parameters and sediment factors
related to the port construction and expected shipping lane; and
e) The Contractor shall asses the ship channel dredging requirements.
The Contractor shall prepare the hydro-meteorological assessment report, which shall provide a
complete and detailed description of works performed, data processed, calculations completed,
and results achieved. The report shall also include site flood potential, tidal variations on the
shoreline, sediment rates, and ship channel dredging requirements.
Deliverable #4 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 4. The
Contractor shall also prepare and submit the following drawings:
1. The general layout of the LNG terminal at the Project site;
2. The natural topography of the LNG terminal and port at the Project site;
3. Arrangement plan of the geotechnical assessment boreholes;
4. Comparison of alternatives for the siting of the LNG terminal and storage facility; and
5. Geological section, photos of drilling cores, seabed cross-section, and profile.
Task 5:
Basic Design of LNG Terminal
Subtask 5.1 Basic Design
The Contractor shall compare technical options for the LNG terminal, including onshore and
offshore-based terminals, and shall propose the best option for LNG terminal and storage facility
for approval by the Client. The Contractor shall develop the basic design of the LNG terminal and
storage facility. The Contractor shall ensure that the designs meet the Project objectives of
providing sufficient capability to supply natural gas to the power plant, abide by national
requirements and building codes, include design parameters to synchronize operation with the
power plant, and meet safety and productivity standards for LNG terminals as described in the
various guidance documents reviewed in Subtask 4.3. The basic design shall comprise definitions
and descriptions of major equipment and drawings for the following:
f/
a) The technologies and equipment to be used for the LNG terminal, LNG storage, supporting
infrastructure and civil works, port infrastructure, port civil works, and service vessels;
Annexl-12
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b) The major plant unit locations, process flowsheet, layout of the process and supporting
infrastructure, and direction of the process flow;
c) Calculation and selection of LNG receiving jetty and navigation channel with applicable
standards;
d) Calculation of the quantitative risk assessment to define the safety distances;
e) Conceptual pipeline network sketch and preliminary calculations;
f) Major equipment list, including sizes and types;
g) Updated site plan, plant layout, and elevation drawing showing relative sizes and main
structures;
h) Plan for connection of utility infrastructure inside and outside the LNG terminal;
i) Fire and explosion prevention and firefighting plan and guidelines;
j) Design basis, calculations, and material and energy balances;
k) Applied standards and technical regulations for preparing the basic design; and
1) Construction solutions and plans.
Subtask 5.2 upporling Information
The Contractor shall prepare the following supporting information:
a) Human resources plan, including LNG terminal management organization chart and
staffing plan;
b) Port operations plan, including definition ofrecommended LNG tanker delivery schedule,
service vessel needs, and safety plan for deliveries;
c) Process safety risk assessment, including risk identification, assessment of risk impact, and
risk mitigation measures;
d) The LNG loss rate in transportation, storage, and regasification; and
e) Incident statistics that have occurred at LNG terminals around the world.
Deliverable #5 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 5.
Task 6:
Power Plant Technical Analysis, Power Purchase Agreement and Project
Impact on the Dominican Republic's Generation Expansion Plan
Subtask 6.1 Power Plant Technical AnaLvsis
The Contractor shall review the requirements for the power plant, as defined in the market
assessment. The Contractor shall evaluate potential technologies for the power plant, primarily
focused on load characteristics, efficiency, capital and operating costs, and environmental
characteristics, and shall recommend the optimal technology and plant configuration option to the
Client. To conduct this evaluation, the Contractor shall develop a simplified evaluation model for
comparing different technology options using the levelized cost of electricity as an evaluation
criterion. After approval of the recommended technology and configuration option by the Client,
the Contractor shall develop a preliminary design package for the power plant. The preliminary
design package shall be based on the latest natural gas electricity generation technology. The
Annex I-13
preliminary design shall include, at a minimum, the conceptual design of the power plant, gas
supply lines, and substations.
The preliminary design of the power plant shall include conceptual specifications for the
following:
•
•
•
•
•
•
•
Listing of the power plant's major equipment and systems, including basic technical
characteristics and overall description of the power plant and gas and interconnecting
transmission facilities;
The power plant's conceptual heat and material balances, including efficiency and fuel
consumption;
The power plant conceptual plot plan, including a general arrangement of the principal
equipment;
The power plant conceptual main electrical one-line diagram;
Conceptual electrical one-line diagram showing modification/expansion of the substation
used as a connection point;
Conceptual drawings showing the interconnection gas pipeline and interconnection
transmission line routing on the area maps; and
The plant narrative (also referred to as the "design basis document").
The plant narrative for the power plant shall contain the following sections:
a. Executive summary
b. System layouts with desirable configuration and alternatives, comparative advantages, and
disadvantages
c. Civil works
d. Mechanical systems
e. Electrical systems
f. Control and instrumentation systems
g. Water systems
h. Fuel systems
1.
Effluent management systems
J. Utilities and infrastructure
k. Power evacuation system
I. Hookups and interconnections
m. Safety and environmental aspects
n. Statutory requirements and clearances
o. Stand-alone cost estim ates (CAPEX and OPEX)
p. Proj ect imp! mentation sch edule
q. Workforce requirement
r. Gas pipe connection to adjacent LNG terminal
ubtask 6.2 Power Plant Equipment om,nercial Terms
The Contractor shall meet with major U.S. power plant suppliers to define their potential interest
in the Project. The Contractor shall describe the commercial situation with the potential suppliers
Annex I-14
as it relates to long-term contract commitments, selling strategy (financing options), new
technologies (hybrid), and interest in the Project. The Contractor shall seek draft contract terms
from the interested suppliers. Given the number of options available to meet the generation
requirements, the Contractor shall define the most appropriate power plant size to meet the
baseload generation objectives of the power plant, recognizing seasonal variations in load demand.
Based on the size of the generator, the Contractor shall seek commercial terms from at least three
internationally known suppliers for gas power plants compatible with the Project.
Subtask 6. 3 Power Purchase Agreement
ommercial Terms
The Contractor shall prepare and present to the Client for approval a draft power purchase
agreement based upon international best practices and intended to set forth the terms of, and to
serve as a basis between the power plant and DISCOS concerning the sale of electricity. The draft
power purchase agreement shall contain the following provisions:
1. Contract and service terms
2. Energy, capacity, and any other products included in the transaction
3. Testing for capacity and energy deliverability
4. Commencement of services (the initial delivery date)
5. Operational constraints
6. Delivery point
7. Electricity interconnection and transmission services
8. Gas interconnection
9. Compensation scheme (price of energy and capacity)
10. Billing and payment
11. Default events
12. Remedies of default events
13. Force majeure
14. Metering at the delivery point
15. Compliance with law, environmental risk, and indemnity
16. Credit requirements (as of the initial delivery date)
17. Confidentiality agreement
18. Dispute resolution
Subtask 6.4 Load Flow Analvsis
The Contractor shall conduct a load flow study to determine if all interconnection equipment
(principally cables, overhead lines, and power transformers) remain within their steady state
thermal limits and that the voltage regulation across the network remains within thermal equipment
ratings. The steady state load flow analysis shall take into account the existing Host Country power
grid and the proposed power plant. This analysis shall include power system stability conditions
and N+ 1 network reliability contingencies.
Annexl-15
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The Contractor shall:
•
•
•
•
•
•
•
•
•
Request and review relevant transmission infrastructure conditions and capability data,
including Host Country power production, substation inventory and capability, and cable
transmission specifications and condition reports. The Contractor shall collect this
information from the Client and from the regional electricity producers. The Client shall
ensure this information is received by the Contractor in a suitable electronic format.
Review the transmission system power system simulator for engineering ("PSS/E") models
and update them based on current data and future case scenarios.
Perform power flow calculations to determine the transfer capability in steady state and
single outage (N+ 1 reliability) conditions.
Recommend ways to increase the transfer capability and voltage regulation in case of
weaknesses in the system infrastructure.
Assess the transmission system capability and identify potential weaknesses in the system
when interconnecting the proposed power plant.
If any overloads are found, the Contractor shall make recommendations for either
upgrading the transmission network or curtailing generation.
Analyze the impact that the proposed network upgrade to support the new power plant
could have on the network performance in steady state.
Analyze network security to determine strategies to maintain acceptable operating
conditions in steady state, such as voltage regulation and thermal ratings under system
intact condition, as well as during N+ 1 reliability contingencies.
Recommend a schedule for the transmission upgrades, based on the proposed power plant.
ubta ·k 6. 5 Fault Analysis
The Contractor shall perform a fault analysis and shall calculate the short-circuit current for every
transmission bus in the system. The fault analysis study will help verify any bus fault currents that
would exceed the current circuit breaker ratings on the future system, on the high-voltage C'HV")
side only. The fault analysis shall be performed for the existing system and the system with the
proposed generation and transmission additions.
The Contractor shall review the sequence impedance data in the PSS/E model and update it
accordingly. The Contractor shall calculate three phase and line-to-ground fault currents at every
HV transmission bus.
The Contractor shall prepare a steady state load flow and fault analysis report that includes the
following sections:
a)
b)
c)
d)
e)
f)
f
Objective
Assumptions
Load flow analysis on the existing and proposed network
Fault analysis on the existing and proposed network
Recommendation for system upgrades
Analysis of how the power plant would impact the steady-state stability of the Host
Country grid
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g) All of the PSS/E models used in this task
Subtask 6. 6: Grid Connection Cost Estimate
The Contractor shall prepare an order-of-magnitude cost estimate(± 25%) for the recommended
changes to the grid system. The estimates shall include major equipment cost estimates based on
prior studies and vendor quotes (as needed). Costs shall be based on U.S. design, U.S. equipment,
and related labor costs. Supporting infrastructure, controls, and other equipment shall be estimated
based on a percentage of equipment cost or costs determined by prior studies. For transmission
line estimates, the Contractor shall base the estimate on a standard per kilometer rate multiplied
by the various line lengths. The Contractor shall add up the costs for each recommendation and
then total the costs for the entire grid upgrade.
The Contractor shall prepare a switching single-line diagram for each type of substation. The
single-line diagram shall depict major equipment only (control, protection relays, and schemes
will not be shown on the single-line diagrams).
The cost estimates shall be based on grid connection costs as it relates to:
•
•
•
Network upgrades;
Additional substations; and
Interconnections of the power facilities to the grid.
Subtask 6. 7:
Proiect Impact on the Dominican Republic Electrical Interconnected System
Generation Exp msion Plan
The Contractor shall review all information available provided by the Client on the Dominican
Republic Generation Expansion Plan and the Client's analysis of the Host Country grid and the
impacts of the power plant on the grid . .The Contractor shall develop a strategy to incorporate the
Project into the existing expansion plan with a new projection to 2030 that includes the impact of
the Project on the system. The software used to develop the plan shall be of the latest generation
available and shall take into consideration the variability of natural resources available for
renewable energy.
The Contractor shall prepare a report of the impact of the power plant on the Host Country grid.
This report shall take into account the stability and capability of the grid to interconnect with the
power plant, the interconnection location, the impact of competing projects in the north of the Host
Country, the regulatory requirements for 25 percent renewable energy by 2025, the expected cost
of the Project, and the levelized cost of energy. The Contractor shall address each of these issues
and incorporate specific project, social, and economic considerations in justifying the power plant.
The Contractor shall also include recommendations on the power plant business model, including
fuel switching scenarios, whether dual fuel capability should be considered, impacts of fuel price
sensitivities, expected operating rate, need for spinning reserve, and provide a rational justification
for the implementation of the power plant project within the Dominican Republic context.
Annex I-17
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To assist the Contractor with the report, the Client shall provide the Contractor with the NonConventional Renewable Energy 2030 Strategy and shall assist them in meeting with experts
within the Client and the power distribution sector who can assist them in obtaining the necessary
information on the Dominican Republic power situation and expansion plans. The Client shall
provide, or provide access to, all information needed by the Contractor to assess how to incorporate
the power plant project into the Dominican Republic power expansion plans.
Deliverable #6 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 6.
Task 7:
Project Economics and Financing Plan
ubtask 7.1 Project Economics and Financial Model
The Contractor shall develop an estimate of total investment cost for the LNG terminal, storage
facilities, regasification terminal, power plant, pipelines, port, and ancillary support areas. The
estimate shall include all equipment and services required for the engineering, procurement,
construction, and startup of the Project. Total investment cost includes loss of value compensation,
support, and relocation costs (if any); construction costs; equipment costs; project management
costs; construction consultancy costs; other costs; and contingency costs (for unplanned
construction work, unexpected construction issues, and cost escalation).
The Contractor shall develop and recommend the most appropriate financial model for the
implementation and operation of the LNG terminal and power plant. The Contractor shall provide
an estimate of start-up and annual costs, an estimate of the LNG volumes and storage capacity
required to make the LNG terminal a viable project, and an estimate of the volume of electricity
sales through the spot market and/or power purchase agreements. The Contractor shall ensure that
the financial model considers costs for an LNG terminal and power plant of varying sizes,
equipment configurations, and capacity/storage considerations, which shall provide a range of
investment options for the Client.
The Contractor shall perform a life-cycle cost analysis ("LCCA") of the Project, including all
capital costs, installation costs, decommissioning costs, and forecasted annual operations and
maintenance costs. Such costs shall include, but are not limited to, warranties, operation,
maintenance, acquisition, installation, refurbishment, and disposal costs that could be encountered
throughout the life of the Project. The analyses shall cover a 25-year timeframe and shall include
net present value, payback period, and internal rate of return by applying varying sensitivities to
major costs to develop best-case and worst-case scenarios.
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Subtask 7.2 Financing Plan
The Contractor shall prepare a financing plan for the Project that recommends and justifies the
optimal financial structure and mechanisms, policies for incentives, and Dominican Republic
government support for Project implementation. The Contractor shall also prepare a Project
financing prospectus for interested investors that contains all material information necessary to
market the Project to interested investors and financiers.
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The Contractor shall meet with the Client to define investment options, investment risk analysis,
and prepare a summary presentation for use with financing entities and equity investors that shall
set forth the ownership structure, including joint ventures and strategic development partners.
The Contractor shall assess which public and private financing organizations (such as the World
Bank, Inter-American Development Bank, Export-Import Bank of the United States, and Overseas
Private Investment Corporation) are interested in providing financing for Project implementation.
This assessment shall include a financing plan and a financing strategy, including several
approaches to securing financing for the Project, based on discussions with the Client, potential
lenders, and potential equity providers.
The Contractor shall outline the rationale for the financing plan and financing strategy, and shall
take into account a number of relevant factors including, but not limited to: (i) various debt/equity
ratios; (ii) various interest rates and loan terms; (iii) various insurance rates; and (iv) various
depreciation schedules. The Contractor shall also provide a recommendation for the most effective
financing sources for the Project. The Contractor shall prepare a timeline and recommend a
schedule for financing activities.
Deliverable #7 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 7.
Task 8:
Regulatory and Legal Review
The Contractor shall review all Host Country laws, regulations, and standards impacting the
Project and shall define specific regulatory-related tasks the ' Client will need to undertake to
implement the Project. The Contractor shall also review relevant building codes and other
regulations that may impact the Project.
Deliverable #8 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 8.
Task 9:
Preliminary Environmental and Social Impact Assessment
Subtask 9.1 Preliminary Environ.mental and ocial Impact Assessrnen.t
The Contractor shall conduct a review of the Project's environmental and social impact and
compliance with the Equator Principles and with Host Country national, provincial, and local
environmental laws. The Contractor review shall identify potential positive and negative
environmental impacts, discuss the extent to which negative impacts can be mitigated, and develop
plans for a full environmental impact assessment in anticipation of the Project moving forward to
the implementation stage. The Contractor shall identify the required Host Country national and
provincial government environmental approvals required for Project implementation.
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The Contractor shall focus on the following:
a) Project origin, Project owners, required Project approvals, and the methodology for the
preliminary environmental and social impact assessment.
b) Evaluation of technology and equipment selected for the Project, and any Project-related
activities that could cause an impact on the environment.
c) Assessment of the current status of the natural and socioeconomic environment at the
Project site, shipping channel, and adjacent areas.
d) Assessment and forecast of waste sources, and the Project's impact on the environment
and community health.
e) Assessment, forecast, and determination of measures for managing Project risks posed to
the environment and community health.
f) Waste disposal measures for maritime-related Project construction and operation,
including for dredging residues and maritime vessel wastes.
g) Measures for minimizing the impact of the Project on the environment and community
health.
h) Results of public consultation and public comment from affected groups, including
neighboring businesses, farms, local non-governmental organizations, local municipalities,
and provincial authorities.
i) Environmental management and supervision programs.
j) A budget estimate for the construction of environmental protection facilities and measures
to be taken to minimize the environmental impact.
k) Alternative measures to mitigate environmental impacts related to Project development.
'ubtask 9. 2
limate Resiliency Asse · ment
The Contractor shall assess the anticipated climate-related impacts on the Project, including on the
Project's technical, commercial, and environmental viability. The Contractor shall conduct the
climate resiliency assessment based on publicly available information. At a minimum, the
Contractor shall analyze the following potential climate-related impacts on the Project's viability:
•
•
•
•
Increased variability of rainfall and wind;
Sea-level rise, storm surges, and ocean acidification;
Increased frequency of extreme weather events; and
Increased temperature.
Based on this assessment, the Contractor shall provide recommendations of items the Client should
include in the Project design and implementation to mitigate climate-related risks.
~
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Deliverable #9 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 9.
Task 10:
Development Impact Assessment
The Contractor shall assess the economic development impacts associated with Project
implementation and shall detail the methodology for measuring those impacts. The development
Annex I-20
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impacts considered shall be relevant to the Project (i.e., reasonably expected to flow from its
implementation as outlined in the Study) and the Contractor shall prepare a plan for monitoring
these impacts during the useful life of the Project. The Contractor shall focus on the following
development impact indicator:
Sector
Category
Indicator
Description
Energy and
Power
Infrastructure
Development
and Efficiency
Gains
New Energy
Capacity
If implemented, the Project
would generate up to 600
megawatts of electricity in
the Dominican Republic
Anticipated
Outcome
Up to 600
megawatts
Deliverable #10 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 10.
Task 11:
U.S. Sources of Supply
The Contractor shall identify a list of potential U.S. companies that could provide the goods and
services required to implement the Project. The list shall include (i) the possible U.S. sources of
supply and/or services for the Project; (ii) a detailed description of relevant products, solutions,
and/or services to be provided; and (iii) contact information for the party or parties responsible for
marketing/sales in the Dominican Republic. The business name, point of contact, address,
telephone ,number, and e-mail address shall be included for each identified party. The Contractor
shall engage in discussions with relevant potential U.S. suppliers or service providers and analyze
their interest in the Project. The Contractor shall notify the Client of which potential suppliers or
service providers are interested in the Project. The Contractor shall estimate the value of potential
export sales for each identified potential supplier to the Project, by product or service.
The Contractor shall provide U.S. sources of supply for the LNG terminal, storage facility, power
plant, vessels, LNG supplies, and supporting infrastructure. The Contractor shall evaluate LNG
supply options for the various phases of the Project and the overall LNG supply for 10 years after
the initial commissioning of the LNG terminal.
Deliverable #11 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 11.
Task 12:
Implementation and Construction Plan
The Contractor shall prepare an implementation plan, including a constructability analysis for the
Project's LNG terminal, storage facilities, and power plant. The Contractor shall identify key
Project implementation factors, such as resource use requirements, land use requirements,
selection of equipment and technology, use oflabor, technical infrastructure, product consumption,
implementation duration, site preparation, and environmental protection. The Contractor shall also
identify other Project implementation factors, such as land acquisition, construction safety, fire
safety and prevention, and other topics considered in such a Project.
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The implementation and construction plan shall include, but not be limited to:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
1)
m)
n)
o)
p)
q)
Site construction requirements, including labor requirements, equipment, and schedule;
The scope of the construction, including site, marine, and process systems;
Technical definition and specification of the major equipment;
The general layout for each of the Project phases;
Proposed sources of materials and equipment;
Plan to transport materials and equipment to the construction site;
Main construction methods and specialized equipment;
Infrastructure for construction (such as roads, power supply, and water supply);
Environmental protection requirements during construction;
High-level procurement plan strategy (preferably life-cycle costing/best value
procurement), including recommended equipment selection guidelines for the Project;
Estimate workforce requirements by skills category for operations;
Estimates of construction requirements (e.g., excavation, leveling, concrete, steel
structures);
Training and education plans for operations and maintenance personnel;
Master schedule of events synchronized with power plant development and commissioning
schedule prepared in consultation with the Client (if applicable);
Master construction schedule for each major process and infrastructure unit, including
milestones;
Project management plan, organization, and process; and
Construction risk analysis.
The Contractor shall also prepare a set of recommendations regarding the Project development
structure. The Contractor shall prepare a strengths, weaknesses, opportunities, and threats analysis
of each possible development option for the Project, whether as a combined Project or separated
into Project components. The Project development options assessed shall include the following:
•
•
•
•
•
Engineering, procurement, and construction;
Build, operate, and transfer;
Build, own, operate, and transfer;
Independent power producer, and
Other options for private sector development or for the transfer of ownership to the
government (if recommended).
DeLiv rab le #12 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 12.
Task 13:
Preparation of Request for Proposal Package
The Contractor shall prepare and present to the Client for approval a draft request for proposals
("RFP") for a Project developer, based on international best practices. The RFP package is
intended to set forth the terms of, and to serve as a basis of, the agreement between the power plant
developer and the Client, as well as with the DISCOS for a long-term commitment for the purchase
of electricity. The RFP package shall contain the following items, at a minimum:
Annex I-22
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a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
1)
m)
n)
o)
Description of the Dominican Republic electricity market;
General description and technical specifications of the LNG terminal;
General description and technical specifications of the power plant;
Project schedule and commercial date;
Draft public-private partnership or build, operate, and transfer agreement;
Power purchase agreement;
Sovereign guarantee;
RFP schedule;
Evaluation committee;
Questions and answers;
RFP addenda and annexes;
General bid submittal requirements;
Bid submission format and deadline;
Selection criteria; and
Any other relevant information needed to prepare the bid documents, including the bid
scoring methodology.
Deliverable #13 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 13.
Task 14:
Final Report and Presentation
The Contractor shall prepare and deliver to the Client and USTDA a substantive and
comprehensive final report of all work performed under these Terms of Reference (the "Final
Report"), which must conform to the requirements under Clause I of the Mandatory Contract
Clauses (as defined in Annex II). The Contractor shall organize the Final Report into chapters and
sections with clear labels corresponding to each of the above tasks and sub-tasks of these Terms
of Reference, and the Contractor shall include in the Final Report all deliverables and documents
that have been provided to the Client under these Terms of Reference. The Contractor shall
incorporate into the Final Report (i) all of the findings, recommendations and conclusions of the
Study under these Terms of Reference, and (ii) all other documents and/or reports provided
pursuant to the tasks noted above, in each case clearly organized and labeled according to each
task and sub-task under these Terms of Reference. The Contractor shall also include an executive
summary to the Final Report as a whole, and provide a summary for each task under the Terms of
Reference.
Before completing and delivering the Final Report to the Client or USTDA, the Contractor shall
(a) prepare a draft Final Report in accordance with the instructions in the above paragraph, (b)
travel to the Dominican Republic to present the complete findings of the Study to the Client, and
(c) provide the draft Final Report to the Client for review and discussion.
Once the Client has provided comments and revisions to the draft Final Report, the Contractor
shall make the necessary changes and modifications to the draft Final Report, it being understood
that the Contractor shall not make any changes or modifications that are inconsistent with any of
these Terms of Reference.
Annex I-23
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Annex II
USTDA Mandatory Contract Clauses
A. Grant Agreement; Subcontracts; USTDA Mandatory Contract Clauses Controlling
The Contract Parties acknowledge that this Contract is funded in whole or in part by the U.S. Trade
and Development Agency ("USTDA") under the Grant Agreement between the Government of
the United States of America, acting through USTDA, and the Government of the Dominican
Republic, acting through the Ministry of Energy and Mines (the "Client"), dated as of
_ _ _ _ _ __ _ ___ (the "Grant Agreement"). Terms used but not defined in this
Contract shall have the meanings as set forth in the Grant Agreement. The Client has selected
_ _ _ __ _ _ _ __ _ (the "Contractor") to perform a feasibility study (the "Study")
related to the proposed LNG Terminal and Power Plant Project (the ''Project") in the Dominican
Republic (the "Host Country"). Each of the Client and the Contractor is referred to herein as a
"Contract Party", and collectively as the "Contract Parties".
All work performed under this Contract must be performed either by the Contractor or otherwise
pursuant to a written Subcontract. All Subcontracts entered into by the Contractor that are funded
or partially funded with Grant Funds shall include these USTDA Mandatory Contract Clauses
(these "Mandatory Contract Clauses"), except for Clauses B(l), G, H, I and S. The Contractor
shall provide USTDA with a copy of each Subcontract that it enters into, along with an English
translation of any such Subcontract that is executed in a language other than English, which
translation must be certified by the Contractor as being complete and accurate. For purposes of
this Contract, (a) the term "Subcontractor" means an individual, corporation, partnership or other
legal entity having a contract, purchase order or other written agreement with the Contractor or
with any other Subcontractor for performance of any part of the Study, and (b) the term
"Subcontract" means any such contract, purchase order or other written agreement with a
Subcontractor.
In addition, (i) in the event of any inconsistency between the terms and provisions of the Grant
Agreement and those of this Contract or any Subcontract hereunder, the Grant Agreement shall be
controlling, and (ii) in the event of any inconsistency between the terms and provisions of these
Mandatory Contract Clauses and any other terms and provisions of this Contract or any
Subcontract hereunder, these Mandatory Contract Clauses shall be controlling.
B. USTDA as Financier
(1)
USTDA Approval of Contract
USTDA will not authorize the disbursement of Grant Funds until this Contract conforms to
modifications required by USTDA during the Contract review process and this Contract has been
formally approved by USTDA. To perform this review in a timely fashion, USTDA must receive
from either the Client or the Contractor an English language version of a final negotiated draft
Annex II-1
version of the Contract (in an editable electronic format) sent to the email address listed in Clause
M below, or to such other email address as specified by USTDA.
(2)
USTDA Not a Party to This Contract
The Contract Parties understand and agree that USTDA as a financing entity reserves to itself
certain rights under this Contract, including, but not limited to: (a) the right to approve the terms
of this Contract and amendments to this Contract, including assignments, the selection of the
Contractor and all Subcontractors, the Terms of Reference, the Final Report, and any and all
documents related to this Contract or any Subcontract funded under the Grant Agreement, (b) the
right to require the Contract Parties to suspend performance of the Terms of Reference upon
reasonable prior written notice to the Contract Parties, and any further work performed in
connection with the Terms of Reference following the Contractor's receipt of such written notice
will be at the Contractor's risk, (c) the right to suspend disbursements of Grant Funds under Clause
3 for cause upon reasonable prior written notice to the Contract Parties, and (d) the right to demand,
upon written notice to the Contractor, a refund from the Contractor of an appropriate amount of
any Grant Funds that have been previously disbursed to the Contractor under Clause 3 of this
Contract in the event that (i) the Contractor or any Subcontractor fails to comply in all material
respects with the Terms of Reference or the terms and conditions of this Contract (including these
Mandatory Contract Clauses), or (ii) this Contract [and/or the Study is terminated, and the amount
of Grant Funds disbursed to the Contractor prior to such termination exceeds the value of the work
performed under this Contract in accordance with its terms. The Contract Parties shall comply
with all written notices, instructions and requests issued by USTDA in connection with USTDA's
exercise of its rights under this Clause B(2).
The Contract Parties further understand and agree that USTDA, in reserving any or all of the
foregoing rights, has acted solely as a financing entity to ensure the proper use of United States
Government funds, and that any decision by USTDA to exercise or refrain from exercising these
rights will be made as a financier in the course of funding the Study and will not be construed as
making USTDA a party to this Contract. The Contract Parties understand and agree that USTDA
may, from time to time, exercise the foregoing rights, or discuss matters related to these rights and
the Project with the Contract Parties or the parties to any Subcontract, jointly or separately, and in
consideration of USTDA's role as financier, the Contract Parties further agree that USTDA's
rights may be exercised without thereby incurring any responsibility or liability, in contract, tort
or otherwise, to the Contract Parties or the parties to any Subcontract. Any approval or failure to
approve by USTDA will not bar the Client or USTDA from asserting any right that it might have
against the Contractor, or relieve the Contractor of any liability which the Contractor might
otherwise have to the Client or USTDA.
(3)
Implementation Letters
To assist the Client and the Contractor in the implementation of the Study, USTDA may, from
time to time, issue implementation letters that will provide additional information about matters
covered by this Contract or correct immaterial errors. Without limiting the generality of the
foregoing, USTDA may issue implementation letters, among other reasons, to: (a) extend the
estimated completion date set forth in Clause K(l), (b) extend the availability period of Grant
Annex II-2
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Funds set forth in Clause K(2), (c) change the fiscal data set forth in Clause M, (d) change a Party's
address of record or point of contact, (e) make immaterial changes to the Terms of Reference, and
(f) correct scrivener's errors. Subject to the provisions of Clause J, the Contract Parties and
USTDA may also use jointly agreed upon implementation letters to confirm, clarify and/or record
their mutual understanding of matters covered by this Contract, including without limitation,
modifications to the personnel specified in Annex III of this Contract.
C. Nationality, Source and Origin
For purposes of this Grant Agreement, the term "U.S. Firm" means:
(i)
a privately owned firm or partnership that is formed, incorporated or organized in the
U.S., with its principal place of business in the U.S., and which is:
(a) more than fifty percent (50%) owned by U.S. citizens and/or non-U.S. citizens
lawfully admitted for permanent residence in the United States; or
(b) satisfies each of the following criteria:
(I)
(II)
(III)
(IV)
(ii)
has been incorporated or organized in the U.S. for more than three (3) years
prior to the issuance date of the request for proposals;
has performed similar services in the U.S. for that three (3) year period;
employs U.S. citizens in more than half of its permanent full-time positions
in the U.S.; and
has the existing capability in the U.S. to perform the work in question; or
a nonprofit organization that is incorporated in the U.S. and managed by a governing
body, a majority of whose members are U.S. citizens and/or non-U.S. citizens lawfully
admitted for permanent residence in the United States.
In addition, the term "Source" means the country from which a shipment is made, and the term
"Origin" means (x) the place of production of a good, whether through manufacturing, assembly
or otherwise, or (y) the place from which delivery of a service is administered, as applicable.
Except as USTDA may otherwise agree, the following provisions shall govern the delivery of
goods and professional services funded by Grant Funds under the Grant Agreement:
(1)
the Contractor and all Subcontractors that are legal entities must be U.S. Firms;
(2) all natural persons who perform any part of the Study as the Contractor, as a Subcontractor,
or as an employee of the Contractor or any Subcontractor, in each case, must be (a) U.S. citizens,
(b) non-U.S. citizens lawfully admitted for permanent residence in the United States, or (c) nonU.S. citizens lawfully admitted to work in the United States;
(3) notwithstanding the provisions of Clauses C( 1) and C(2), up to twenty percent (20%) of the
Grant Funds may be used to pay for work performed in connection with the Study by (a)
Annex II-3
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Subcontractors that are organized as legal entities under the laws of the Host Country, and/or (b)
natural persons working as a Subcontractor, or as employees of the Contractor or any
Subcontractor, in each case, who are citizens of the Host Country;
(4) a Host Country Subcontractor may only be used for specific services from the Terms of
Reference identified in the Subcontract;
(5) no part of the Grant Funds disbursed in connection with the performance of the Study may
be used to pay (a) any legal entity that is incorporated or organized under the laws of a jurisdiction
other than one of the United States or the Host Country, or (b) a natural person who is a citizen of
a country other than the United States (except as expressly provided in Clause C(2)) or the Host
Country; and
(6) goods purchased for the performance of the Study and associated delivery services (e.g.,
international transportation and insurance) must have their nationality, Source and Origin in the
United States; provided, however, that goods and services incidental to Study support (e.g., local
lodging, food and transportation) in the Host Country are not subject to the foregoing restrictions.
D. Contractor Recordkeeping and Audit
The Contractor and Subcontractors funded under the Grant Agreement shall maintain, in
accordance with generally accepted accounting procedures, books, records and other documents
(including without limitation all bank statements, and receipts or proofs of purchase for all goods
and services acquired in connection with the Study) sufficient in form, content and level of detail
to reflect properly all transactions under or in connection with this Contract. These books, records
and other documents shall clearly identify and track the use and expenditure of Grant Funds
separately from other funding sources. Such books, records and documents must be maintained
during the period of performance of work commencing on the Effective Date, and continuing until
the date that is three (3) years following the final disbursement of Grant Funds by USTDA. The
Contractor and its Subcontractors shall (i) afford USTDA or its authorized representatives the
opportunity at reasonable times for inspection and audit of such books, records and other
documentation, and (ii) in the event of an audit of such books, records and other documentation,
reasonably cooperate with, and promptly respond to information requests from, any USTDAappointed auditors.
E. U.S. Carriers
(1)
Air
Transportation by air of persons or property funded under the Grant Agreement shall be on U.S.
flag carriers in accordance with the Fly America Act, 49 U .S.C. § 40118, to the extent service by
such carriers is available, as provided under applicable U.S. Government regulations.
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(2)
Marine
Transportation by sea of property funded under the Grant Agreement shall be on U.S. carriers in
accordance with U.S. cargo preference laws, including (without limitation) the Cargo Preference
Act of 1954, 46 U.S.C. § 55305.
F. Workman's Compensation Insurance
The Contractor shall provide adequate workman's compensation insurance coverage for work
performed under this Contract.
G. Disbursement Procedures
(1)
USTDA Approval of Contract
Disbursement of Grant Funds will be made only after USTDA approval of this Contract. Any
work performed by the Contractor or arty Subcontractor in connection with the Study prior to
USTDA's approval of the Contract will be at the Contractor's risk.
(2)
Payment Schedule Requirements
A payment schedule for disbursement of Grant Funds to the Contractor is included in this Contract
under Clause 3. Such payment schedule must conform to the following USTDA requirements:
(a) no more than twenty percent (20%) of the total Grant Funds amount may be used as a
mobilization payment; (b) all other payments, with the exception of the final payment, must be
based upon completion of one or more tasks under the Terms of Reference as set forth in Clause
3; and (c) the final payment must be no less than fifteen percent (15%) of the total Grant Funds
amount, payable upon approval by USTDA of a Final Report that has been (i) prepared and
submitted in accordance with the requirements set forth in Clause I below, and (ii) approved in
writing by the Client in the manner provided for by Clause G(4)(b)(iii) below.
(3)
Invoice Approval Procedures
The Contractor shall submit Invoices meeting the requirements set forth in Clause G(4) to the
Client for approval. The Client shall not approve any Invoice submitted to it by the Contractor
unless such Invoice, and all work performed by the Contractor (or any Subcontractor) in
connection with such Invoice, complies with the Terms of Reference and these Mandatory
Contract Clauses.
(4)
Invoice Requirements
For purposes of this Contract, the term "Invoice" means any invoice submitted (or to be submitted)
to USTDA by either the Client or the Contractor for payment of Grant Funds. USTDA will make
all disbursements of Grant Funds directly to the Contractor. The Contractor must provide USTDA
with an ACH Vendor Enrollment Form (available from USTDA) with the first Invoice. Either the
Annex II-5
Client or the Contractor may request disbursement of Grant Funds by USTDA to the Contractor
for performance of the Terms of Reference by submitting the following to USTDA:
(a) Contractor's Invoice
The Invoice from the Contractor shall include reference to the applicable performance milestone
listed in th~ Contract payment schedule, the requested payment amount, and an appropriate
certification to USTDA by the Contractor, as follows:
(i)
For a mobilization payment (if any):
"As a condition for this mobilization payment, the Contractor certifies to
USTDA that it will perform all work in accordance with the terms of its
Contract with the Client. To the extent that the Contractor does not comply
with the terms and conditions of the Contract, including the USTDA
Mandatory Contract Clauses contained therein, it will, upon USTDA's
request, make an appropriate refund to USTDA."
(ii)
For Contract performance milestone payments:
"The Contractor ce1iifies to USTDA that it has performed the work
described in this invoice in accordance with the terms of its Contract with
the Client and is entitled to payment thereunder. To the extent the
Contractor has not complied with the terms and conditions of the Contract,
including the USTDA Mandatory Contract Clauses contained therein, it
will, upon USTDA's request, make an appropriate refund to USTDA."
(iii) For final payment:
"The Contractor certifies to USTDA that it has performed the work
described in this invoice in accordance with the terms of its Contract with
the Client and is entitled to payment thereunder. Specifically, the
Contractor has submitted the Final Report to the Client, as required by the
Contract,. and received the Client's approval of the Final Report. To the
extent the Contractor has not complied with the terms and conditions of the
Contract, including the USTDA Mandatory Contract Clauses contained
therein, it will, upon USTDA's request, make an appropriate refund to
USTDA."
(b) Client's Approval of the Contractor's Invoice
(i) The Invoice for a mobilization payment must be approved in writing by the Client on the
Invoice or separately.
(ii) For Contract performance milestone payments, the following certification to USTDA by the
Client must be provided on the Invoice or separately:
AnnexII-6
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"The Client certifies to USTDA that the services for which disbursement is
requested by the Contractor have been performed satisfactorily, in
accordance with applicable Contract provisions, including the USTDA
Mandatory Contract Clauses contained therein, and the terms and
conditions of the USTDA Grant Agreement."
(iii) For final payment, the following certification to USTDA by the Client must be provided on
the Invoice or separately:
"The Client certifies to USTDA that the services for which disbursement is
requested by the Contractor have been performed satisfactorily, in
accordance with applicable Contract provisions, including the USTDA
Mandatory Contract Clauses contained therein, and the terms and
conditions of the USTDA ·Grant Agreement. The Final Repmi submitted
by the Contractor has been reviewed and approved by the Client."
(c) USTDA Address for Invoices
Invoices shall be submitted to the attention of the Finance Department by email to
[email protected]
(5)
Payment Disclaimer
The Contract Parties understand and agree that payment by USTDA of an Invoice does not
constitute (a) acceptance or approval by USTDA, whether express or implied, of (i) any materials,
documents, reports or other deliverables prepared or delivered by the Contractor or any
Subcontractor, or (ii) any work performed under the Terms of Reference or otherwise by the
Contractor or any Subcontractor, in each case, in connection with the Study, or (b) confirmation
or agreement by USTDA, whether express or implied, as to whether ariy work performed by the
Contractor or any Subcontractor in connection with the Study has been performed in accordance
with the terms and conditions of this Contract, including the Terms of Reference or these
Mandatory Contract Clauses.
H. Termination
(1)
Effect of Termination
In the event that this Contract [and/or the Study] is terminated prior to completion of all tasks
under the Terms of Reference, the Contractor will be eligible for payment for the value of the work
performed pursuant to the terms of this Contract; provided, however, that such eligibility is subject
to (a) compliance by the Contractor with the terms and conditions of this Contract (including the
Terms of Reference and these Mandatory Contract Clauses), and (b) USTDA approval. Likewise,
in the event of such termination, USTDA may be entitled to receive a refund of Grant Funds from
the Contractor pursuant to Clause B(2)( d)(ii).
Annexll-7
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(2)
Survivability
Clauses A, B, D, G, H, N, Q, R and S of these Mandatory Contract Clauses shall survive the
termination of this Contract.
I. USTDA Final Report
( 1)
Definition
"Final Report" shall mean the Final Report described in the attached Annex I Terms of Reference
or, if no such "Final Report" is described therein, "Final Report" shall mean a substantive and
comprehensive report of all work performed by the Contractor and any Subcontractors in
accordance with the attached Annex I Terms of Reference, including any documents delivered to
the Client.
(2)
Final Report Submission Requirements
The Contractor shall provide the following documents and materials to USTDA collectively as
one single submission:
(a) One (1) CD-ROM containing a complete electronic copy of the Final Report for USTDA's
records. This version of the Final Report shall have been approved by the Client in writing and
must be in the English language. It is the responsibility of the Contractor to ensure that confidential
information, if any, contained in this version of the Final Report be clearly marked. USTDA will
maintain the confidentiality of such information in accordance with applicable law. The electronic
files on the CD-ROM shall be submitted in a commonly accessible read-only format (such as .pdf
format), and the CD-ROM shall be clearly labeled in accordance with the requirements of Clause
I(3)(c) below.
(b) One (1) CD-ROM containing an electronic copy of the Final Report suitable for public
distribution (the "Public Version"). The Public Version shall have been approved by the Client in
writing and must be in the English language. As the Public Version will be available for public
distribution, it must not contain any confidential information. It is the responsibility of the
Contractor to ensure that no confidential information is contained on the Public Version of the CDROM. If the report in Clause I(2)(a) above contains no confidential information, it may be used
as the Public Version. In any event, the Public Version must be informative and contain sufficient
Project detail to be useful to prospective U.S. equipment and service providers. The electronic
files on the CD-ROM shall be submitted in a commonly accessible read-only format (such as .pdf
format), and the CD-ROM shall be clearly labeled in accordance with the requirements of Clause
I(3)(c) below.
(c) A cross-walk document (the "Cross-walk"), delivered separately from the Final Report, that
references the evidence of the completion of each requirement under each task and each sub-task
in the Terms of Reference within the Final Report, presented in a table format. The Cross-walk
must pe organized chronologically by task and sub-task from the Terms of Reference, and for each
such task the Cross-walk must provide (i) the language of the requirement set forth in the Terms
Annex II-8 /
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of Reference (in sentence, bullet or subtask form), and (ii) the associated page number(s) on which
the evidence establishing the completion of such requirement is included within the version of the
Final Report delivered to USTDA under Clause I(2)(a).
and
(d) The Contractor's final Invoice, prepared and submitted in accordance with Clause G.
(3)
Final Report Presentation
All Final Reports submitted to USTDA must be paginated and include the following:
(a) The front cover of every Final Report shall contain the name of the Client, the name of the
Contractor who prepared the report, a report title, USTDA's logo, and USTDA's address. If the
complete version of the Final Report contains confidential information, the Contractor shall be
responsible for labeling the front cover of that version of the Final Report with the term
"Confidential Version". The Contractor shall be responsible for labeling the front cover of the
Public Version of the Final Report with the term "Public Version". The front cover of every Final
Report shall also contain the following disclaimer:
"This report was funded by the U.S. Trade and Development Agency
(USTDA), an agency of the U.S. Government. The opinions, findings,
conclusions or recommendations expressed in this document are those of
the author( s) and do not necessarily represent the official position or policies
of USTDA. USTDA makes no representation about, nor does it accept
responsibility for, the accuracy or completeness of the information
contained in this report."
(b) The inside front cover of every Final Report shall contain (i) USTDA's logo, USTDA's
address, and USTDA's mission statement, and (ii) a written statement from the Contractor
affirming that the Client, USTDA, and the Commercial and/or Economic Section(s) of the U.S.
Embassy in the Host Country shall have irrevocable, perpetual, transferrable, worldwide, royaltyfree, non-exclusive rights to use and distribute the Final Report.
(c) The Contractor shall affix to the top side of each CD-ROM containing any version of the Final
Report a label identifying the Host Country, the USTDA Activity Number set forth among the
fiscal data in Clause M, the name of the Client, the name of the Contractor who prepared the Final
Report and a report title. In the case of each CD-ROM containing a confidential or non-public
version of the Final Report, the Contractor shall include the term "Confidential Version" on such
label. In the case of each CD-ROM containing the Public Version of the Final Report, the
Contractor shall include the term "Public Version" on such label, along with the following
language:
"The Contractor certifies to USTDA that this CD-ROM contains the Public
Version of the Final Report and that all contents are suitable for public
distribution."
Annex II-9 (
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(d) The Contractor and any Subcontractors that perform work pursuant to the Grant Agreement
must be clearly identified in the Final Report. Business name, point of contact, address, telephone
and email address shall be included for the Contractor and each Subcontractor.
(e) The Final Report, while aiming at optimum specifications and characteristics for the Project,
shall identify the availability of prospective U.S. sources of supply. Business name, point of
contact, address, telephone and email address shall be included for each prospective commercial
source.
(f) The Final Report shall be accompanied by a letter or other notation by the Client which states
that the Client approves the Final Report. A certification to USTDA by the Client to this effect
provided on or with the Invoice for final payment will meet this requirement.
(4)
Final Report Disclaimer
The Contract Parties understand and agree that acceptance by USTDA of the Final Report does
not constitute (a) approval, validation or endorsement by USTDA, whether, express or implied, of
(i) the Final Report or any of its contents, or (ii) the quality, characteristics or nature of any work
performed under the Terms of Reference or otherwise by the Contractor or any Subcontractor in
connection with the Study, or (b) confirmation or agreement by USTDA, whether express or
implied, as to whether any work performed by the Contractor or any Subcontractor in connection
with the Study has been performed in accordance with the terms and conditions of this Contract,
including the Terms of Reference and these Mandatory Contract Clauses.
J. Modifications
All changes, amendments, assignments or other modifications to this Contract, including the
Annexes to this Contract, will be made effective only by written instrument signed by the Contract
Parties and approved in writing by USTDA. Either Contract Party may submit to USTDA, as the
address set forth in Clause M, a final negotiated draft version (in an editable electronic format) of
any proposed change, amendment, assignment or other modification to this Contract for USTDA
review. USTDA will advise the Contract Parties as to whether the draft Contract is ready for
execution, on the understanding that USTDA's approval may be contingent upon certain
modifications being made to such draft.
K. Study Schedule
(1)
Study Completion Date
The Contract Parties' estimated completion date for the Study is _ __ __ _ __ _
(2)
Time Limitation on Disbursement ofUSTDA Grant Funds
Except as USTDA may otherwise agree, (a) no Grant Funds may be disbursed under this Contract
for goods and services which are provided prior to the Effective Date of the Grant Agreement, and
Annex 11-10
(b) no Grant Funds may be disbursed more than four (4) years after the Effective Date of the Grant
Agreement.
L. Business Practices; Conflicts of Interest
( 1)
Business Practices
The Contract Parties recognize the existence of standards of conduct for public officials and
commercial entities in their respective countries. Therefore, the Contract Parties shall fully comply
with all United States and Host Country laws relating to corruption or bribery, and shall not directly
or indirectly provide, offer or promise to provide money or anything of value to any public official
in violation of any United States or Host Country laws relating to corruption or bribery. For
example, the Contractor and its Subcontractors shall fully comply with the requirements of the
U.S. Foreign Corrupt Practices Act, as amended (15 U.S.C. §§ 78dd-l et seq.). Each Contract
Party agrees that it shall require that any Subcontractor, agent or representative hired to represent
it in connection with the Study will comply with this Clause Land all laws which apply to activities
and obligations of that Contract Party, including, but not limited to, those laws and obligations
referenced above.
(2)
Conflicts of Interest
(a) Except as otherwise agreed in writing by USTDA, no Contract Party, or any employee,
executive, director, officer or other staff member of a Contract Party, may either directly or
indirectly engage in any activity or maintain any relationship (any such activity or relationship, a
"Conflict of Interest") which might adversely affect the Study or the rights of USTDA, including
but not limited to (i) ownership of a material interest in the other Contract Party, any supplier,
contractor, distributor, Subcontractor, customer or other entity involved in the performance of the
Study, (ii) acceptance of any material payment, service, loan, gift, trip, entertainment, or other
favor from the other Contract Party, a supplier, contractor, distributor, Subcontractor, customer or
other entity involved in the performance of the Study, (iii) any employee, executive, director,
officer or other staff member of one Contract Party holding a position as an employee, executive,
director, officer or other staff member of the other Contract Party or any supplier, contractor,
distributor, Subcontractor, customer or other entity involved in the performance of the Study, and
(iv) any condition or circumstance that would reasonably be expected to (A) cause one or more of
the Contract Parties to be unable or potentially unable to render impartial assistance or advice, (B)
impair the objectivity of the Contractor or any Subcontractor in performing the Study, or (C) create
an unfair competitive advantage for any entity wherein either Contract Party has a material interest.
(b) Neither the Client nor the employees, executives, directors, officers or other staff members of
the Client may receive payment from the Grant Funds.
(c) Any Contract Party shall promptly notify USTDA of any Conflict of Interest of which it
becomes aware.
Annex 11-11
f
M. USTDA Address and Fiscal Data
Any communication with USTDA regarding this Contract shall be sent to the following contact
information and include the fiscal data listed below:
To:
Address:
Phone:
Fax:
Email:
U.S. Trade and Development Agency
1101 Wilson Boulevard, Suite 1100
Arlington, VA 22209-2275
USA
(703) 875-4357
(703) 997-2392
[email protected]
Fiscal Data:
Appropriation No.:
Activity No.:
Reservation No.:
Grant No.:
1119/20 1001
2019-51016A
2019238
1131PL19GH51238
N. Taxes
Grant Funds provided under the Grant Agreement shall not be used to pay any taxes, tariffs, duties,
fees or other levies imposed under laws in effect in the Host Country, except for taxes of a de
minimis nature imposed on local lodging, food, transportation or airport arrivals or departures.
Neither the Client nor the Contractor may seek reimbursement from USTDA for any such taxes,
tariffs, duties, fees or other levies, other than such taxes of a de minimis nature referenced above
to the extent that the amounts of such de minimis taxes are included on expense receipts maintained
by the Contractor in accordance with Clause D.
0. Export Licensing
The Contractor and all Subcontractors are responsible for compliance with U.S. export licensing
requirements, if applicable, in the performance of all work in connection with the Terms of
Reference.
P. Change of Control
Each Contract Party shall provide USTDA with written notice of any anticipated change of control
or ownership of such Contract Party, whether direct or indirect, prior to the effective date of such
change, which notice must identify (i) the persons or legal entities that are gaining control or
ownership over such Contract Party, and (ii) the persons or legal entities that are losing control or
ownership over such Contract Party.
Annex II-12
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Q. Liability
This Contract may include a clause that limits the liability of the Contract Parties, provided that
such a clause does not (i) disclaim liability for damages that are natural, probable and reasonably
foreseeable as a result of a breach of this Contract, or (ii) limit the total amount of damages
recoverable to an amount less than the total amount disbursed to the Contractor pursuant to this
Contract. If any clause set forth in this Contract is inconsistent with either or both of these
limitations, such clause will be invalid and unenforceable to the extent of the inconsistency.
R. Arbitration
If the Contract Parties submit any dispute arising under this Contract for arbitration, the scope of
any such arbitration shall be limited to the Contract Parties' rights and/or obligations under this
Contract and may not extend to any right or obligation of USTDA. The arbitrator(s) shall not
arbitrate issues directly affecting the rights or obligations of USTDA.
S. Reporting Requirements
The Contractor shall advise USTDA as to the status of the Project at least one (1) time per year for
a period of two (2) years after completion of the Study. In addition, if at any time the Contractor
receives follow-on work from the Client, the Contractor shall so notify USTDA and shall designate
the Contractor's point of contact related to such follow-on work, including such person's name,
title, address, telephone number and email address. Since this information may be made publicly
available by USTDA, any information which is confidential must be designated as such by the
Contractor and provided separately to USTDA. USTDA will maintain the confidentiality of such
information in accordance with applicable law.
Annex 11-13
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ANNEX 5
Annex I
Terms of Reference
These terms of reference ("Terms of Reference") in this Annex I set forth the terms, conditions,
provisions and specifications for the performance of the feasibility study ("Study") for the benefit
of the Ministry of Energy and Mines (the "Client").
(the
"Contractor") shall perform the Study in accordance with these Terms of Reference pursuant to
this Contract between the Contractor and the Client, of which Contract this Annex I is a part.
The Contractor's performance of the Study must comply with the entirety of these Terms of
Reference, and any modification of or deviation from these Terms of Reference must be approved
in writing by USTDA in accordance with the procedures for amendments or other modifications
under this Contract. The Contractor acknowledges and agrees that (i) any performance by the
Contractor of work not included in, or not in compliance with, these Terms of Reference, or any
failure by the Contractor to perform any work set forth under these Terms of Reference (in
compliance with those terms), will be ineligible for approval or payment, absent an amendment or
other modification in accordance with such procedures, and (ii) failure to obtain prior written
approval from USTDA for any modifications or deviations from these Terms of Reference may
result in forfeiture of payment for work performed that is not in compliance with these Terms of
Reference and/or a significant delay in payment of the final invoice.
Study Obj
tive
The objective of the Study is to assist the Client in assessing site selection and the infrastructure
requirements for a liquified natural gas ("LNG") terminal, regasification terminal, power plant,
transmission line, and related equipment in the province of Monte Cristi, near the municipality of
Pepillo Salcedo. The Study will allow the Client to evaluate the technical, economic, and financial
feasibility of the Project.
General Considerations
The Contractor shall undertake a quality control review process, including a technical and editorial
review, of all deliverables and documents submitted to the Client to ensure readability, accuracy,
and consistency. All deliverables and documents shall be submitted in draft form to the Client for
review and comment prior to finalization. The deliverables specified in these Terms of Reference
shall serve to keep the Client informed about the Contractor's work on the Study and to ensure
that the Contractor's work is performed satisfactorily, in accordance with applicable Contract
provisions and the terms and conditions of the USTDA Grant Agreement (per Clause G of Annex
II of the Grant Agreement). All deliverables shall be submitted in English, unless otherwise
indicated.
Annex 1-1
Phase I
Task 1:
Kick-Off Meeting, Document Request, and Work Plan Development
No later than one month after Contract approval, the Contractor shall travel to the Dominican
Republic to meet with the Client and other stakeholders (as identified by the Client) to kick-off the
Study and visit potential Project sites and their surrounding areas. The Contractor shall develop
and deliver a draft work plan for the Study to the Client no less than one week prior to the kickoff meeting. The work plan shall include the schedule of tasks and key resources to be deployed,
as well as a communications plan. The work plan shall also include a document list that the
Contractor requires from the Client.
The objectives of the kick-off meeting are to:
a)
b)
c)
d)
e)
f)
Confirm the Client's objectives for the Study and for Project implementation;
Review the timing of key milestones for Study and Project development;
Review the tasks to be performed by the Contractor;
Identify the key Client representatives with whom the Contractor shall work;
Identify information that can be made available to the Contractor to complete the Study;
Review specific tasks requiring Client assistance, including providing details of the
existing and planned power plant projects, power generation needs, existing power
purchase agreements, and preliminary site studies. The Client shall provide to the
Contractor any preliminary studies of the proposed Project sites that it has collected,
including site descriptions, site conditions, aerial photos, descriptions of neighboring
activities, coastal and/or river conditions, and environmental conditions. Also, the Client
shall assist the Contractor in meeting with key Dominican government officials to access
critical Project-related data. This government-held data may include nautical traffic
studies, bathymetry studies, adjoining property ownership records, environmental reports,
and similar government-held information;
g) Agree on the preferred means of communicating throughout the Study;
h) Agree on the format of monthly reports and other forms of Study-related deliverables and
communications, as well as the deliverable receipt and deliverable acceptance certificates
required by the Client (separate and apart from the invoice certifications required under
Clause G of Annex II of the Grant Agreement); and
i) Agree on a final work plan for the Study.
Deliverable #1 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 1.
Task 2:
LNG Market Analysis, LNG Supply, Transport Capacity, and Commercial
Terms
Subtask 2.1 Document Review
The Contractor shall conduct detailed research on the global LNG market, with the focus on
sources of supply, new and future LNG export terminal projects, current and future demand,
Annex 1-2
competing LNG regasification terminal projects (including the existing LNG terminal on the south
coast of the Dominican Republic), and new vessel constructions and retirements. The Contractor
shall also research the regional LNG market. On the supply side, the Contractor shall review in
detail the developments in the Atlantic Basin LNG market, focusing on the Caribbean and Latin
America, United States, West Africa, and the Middle East. This review shall include:
a) Overview of LNG pricing in the region and globally;
b) An overview of the logistics and transportation infrastructure for sourcing LNG;
c) Identification of existing and expected future supply of LNG globally, especially new
export terminals projects, and contractual agreements (as available); and
d) New LNG supply ventures, including LNG terminals, bunkering projects, and emerging
trading companies focusing on the Atlantic Basin.
Subia k 2.2 Electricil yMarlcet As ·essmenl
The Contractor shall conduct a detailed analysis on the Host Country electricity market, with a
focus on sources of supply, new and future power generation projects, demand forecast, competing
power generation projects (including existing power plants), and power plant constructions and
retirements. In addition, the Contractor shall research the demand market, including the
distribution companies ("DISCOS") and the non-regulated market (comprised of large users 1
megawatt and above).
The Contractor shall obtain demand growth estimates from the Client and other Dominican
government and utility sources. The Client shall support the Contractor in the collection of relevant
data. The Contractor shall also research the status of the fuel oil and diesel generation units and
the potential for them to be converted to gas, taking into account the location, age, and size of the
generating units to define the likely and possible generating units that could be converted to gas.
The Contractor shall review their findings with the Client, and based on demand growth,
conversions, and non-power opportunities, the Contractor shall prepare a gas demand forecast
through 2030.
The Contractor shall forecast the LNG volumes needed to support the Project's power plant buildout. Based on that forecast, the Contractor shall prepare a preliminary plan for LNG delivery and
storage requirements.
Subtask 2. 3 LNG Mttrkel Assessment
The Contractor shall prepare an LNG supply and demand forecast that focuses on the new and
emerging suppliers, as well as the global and regional demand for LNG. The supply forecast shall
be based on announced and planned future projects, and shall outline the rationale for the forecast
and the planned future projects. The demand forecast shall incorporate all announced and
anticipated future projects. The Contractor shall incorporate optimistic, pessimistic, and base cases
in their forecast and outline the rationale for each case. The Contractor shall analyze the
competitive LNG market and LNG suppliers to determine LNG supply capacity and availability
from each LNG supply project.
Annex 1-3
For likely Atlantic Basin supply sources, the Contractor shall collect specifications on the LNG
supply, including gross heating value, composition, and contaminants. The Contractor shall seek
information from suppliers and trading companies as appropriate.
Subtask 2. 4 LNG Price Forecast
The Contractor shall prepare an LNG price forecast three years out on a quarterly basis, based on
macroeconomic trends and the supply and demand forecasts. The Contractor shall incorporate
supply growth estimates in the price forecast, as well as new market entrants on the demand side.
The Contractor shall also incorporate new projects and projected project development delays in
the supply growth estimates. The Contractor shall also research regional pricing and the LNG price
index that would apply in the Caribbean market. The Contractor shall also estimate the impact of
longer-term, large-scale projects on LNG availability and shall indicate where there may be
periods of supply shortage, based on the market assessment.
The Contractor shall collect information regarding LNG freight and shipping insurance costs for
the delivery of LNG to the Dominican Republic, as well as LNG prices offered by various potential
suppliers.
Subtask 2. 5 LNG Transport Capacity
The Contractor shall evaluate the option for LNG bunkering in the region and determine how that
option may impact the Project' s LNG terminal component. The Contractor shall analyze the global
LNG tanker fleet to identify the class of vessels that would be capable of supplying the Project
initially and throughout the power plant build-out. The Contractor shall outline specific technical
issues that may hinder access for various types of vessels that could supply the LNG terminal.
Subtask 2. 6 Commercial Terms
The Contractor shall meet with at least 10 LNG suppliers, including international oil companies,
national oil companies, LNG terminal operators, and LNG brokers and traders from the United
States, the Caribbean, and elsewhere to define the market interest in supplying LNG to the Project.
The Contractor shall define the commercial opportunties with the possible suppliers as it relates to
long-term contract commitments, selling strategy (spot versus long-term), and storage and tolling
options. The Contractor shall request draft contract terms from the interested suppliers. The
Contractor shall also prepare an assessment of the supply options for the Project during the
commissioning phases and after completion of the power plant build-out, as well as for existing
power plants in the Dominican Republic.
Subtask 2. 7 Arbitrage, Storage, and Pri ·e Risk Mitigation Measures
Based on the discussions with the potential suppliers, the Contractor shall prepare a briefing
document for the Client outlining the potential to utilize U.S. gas storage capabilities for price
arbitrage and other measures to reduce price risk during periods of high LNG prices. The briefing
document shall also outline the options for long-term stor~ge of gas in the United States for
hedging during periods of price spikes.
Annex I-4
Deliverable #2 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 2.
Task 3:
Technical Site Scoping Comparison and Site Assessment
The Contractor shall assess the viability of the primary Project site at Monte Cristi. The Project
site footprint shall incorporate the proposed LNG terminal, regasification terminal, power plant,
and supporting infrastructure. The Client shall provide the Contractor with existing Project-related
studies, data, and industry contacts. The Contractor shall collect and review the relevant Host
Country national, provincial, and municipal requirements for design standards and technical
specifications related to the Project.
The Contractor shall prepare a design parameters memo. The memo shall outline the key design
parameters for a new LNG terminal, including metocean, environmental factors, operability,
access, safety, and security. The Contractor shall visit the Project site to review specific site issues.
The Contractor shall address the following technical issues:
1. Assessment of the suitability of the Project site for an LNG terminal (including
onshore/offshore storage and regasification units), considering the following factors:
a. Marine environment and operations;
b. Land and coastline availability and suitability for development;
c. Berth and terminal concept;
d. Port infrastructure and operations;
e. Connectivity to regasification terminal and storage units;
f. Potential for overland pipe conveyance corridors from the LNG terminal to gas
distribution infrastructure or directly to the power plant; and
g. Environmental concerns.
2. Evaluation of the requirements to connect the LNG terminal via gas pipeline to existing
major fuel-fired power plants:
a. Topography;
b. Possible pipeline routes;
c. Rights of way;
d. Land acquisition issues; and
e. Capacity, characteristics, and volumetric analysis of the existing or planned gas
grid distribution infrastructure (based on available information) to determine its
ability to receive and transport new natural gas volumes.
3. Access to customers: market assessment to integrate with the current and future power
plants.
4. Existing supporting infrastructure and maintenance services: assessment of the needs for
supporting infrastructure to support the LNG terminal and pipeline (e.g., sources of fresh
water, utility services, road access, maintenance services, and labor).
5. Community support: assessment and mitigation of any local community concerns.
Annex 1-5
/;
The Contractor shall prepare a preliminary evaluation of the Project site and shall assess the
following:
1. Total capital expenditure ("CAPEX") to complete the Project (at this stage, these
assessments should be done at a planning level);
2. Schedule risk assessment: evaluation of the overall implementation timeline risks for the
proposed Project site, including the anticipated length of time to secure necessary permits,
design, and construction at each location involved in the Project. The Contractor shall
address the following issues that may cause delays:
a. Land acquisition;
b. Environmental permitting;
c. Near-shore development, including harbor or breakwater development, dredging,
moorings, floating storage regasification units ("FSRUs"), and offshore pipelines;
and
d. Pipeline construction.
3. Operational expenditure ("OPEX") for the life of the Project;
4. Annual LNG sales;
5. Environmental and social impacts;
6. The Project site's long-term suitability to meet phased capacity expansion targets; and
7. Host Country government and community support for the Project site.
If at any time during this task, the Contractor determines there is a significant issue with the
primary Project site that would prevent or seriously impact the Project, the Contractor shall submit
its concerns in writing to the Client and USTDA. If after reviewing the concerns, the Client and
USTDA determine the issues to be valid, USTDA will issue an implementation letter, and the
Contractor shall repeat Task 3 for the back-up Project site. The back-up Project site shall only be
assessed if the primary Project site is not viable.
Deuverable #3 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 3.
Upon completion of Tasks 1, 2, and 3, the Client will assess the results of Phase I in consultation
with the Contractor and USTDA and will determine if completing Phase II of the Study is
warranted. Upon receipt and review of the Client's determination, USTDA will issue an
implementation letter confirming the Client's decision, it being understood that USTDA reserves
the right to terminate the Study if USTDA determines that it is not appropriate or desirable to
proceed to Phase II. If Phase II is eliminated from the Study, then Tasks 4, 5, 6, 7, 8, 9, 10, 11, 12,
and 13 would be eliminated from the Terms of Reference, and the Contractor would proceed to
complete Task 14, which would be performed in reference to the work completed in Phase I of the
Study.
7
Annexl-6
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1
Phase II
Task 4:
Detailed Site Investigation
Subtask 4. l Svslems lnlegration
The Contractor and the Client shall define, at a minimum, the proposed locations for the LNG
terminal, LNG storage area, power plant area (adjacent to the LNG terminal), major roads, utility
corridors, and other major building areas. The Contractor shall define the connection requirements
between the LNG storage terminal and the power plant or pipeline, including specific technical
requirements, such as pump stations, pipe sizes, gas delivery pressure, the possible range of gas
compositions, and backflow. The gas demand requirements of the power plant (including volumes,
pressures, and moisture requirements) shall be considered as the base case scenario for the
Project's financial model to be developed in Task 7.
, ubtc1s/, 4. 2 ?reliminarv ile Plan
The Contractor shall develop a preliminary site plan in block diagrams formatted to scale. The
Contractor shall ensure the site plan includes, at a minimum, the proposed locations for the LNG
terminal, LNG storage area, power plant area (adjacent to the LNG terminal), major roads, utility
corridors, and other major buildings. The Contractor shall review the site plan with the Client and
shall incorporate the Client's comments.
Subtask 4.3 Preliminary Techn ical Analysis and .AtJeeting, with Rele1 ant Authorities
The Client shall provide the Contractor with all existing studies, data, and industry contacts that
the Client has developed in researching the Project. The Contractor shall review this information,
and other relevant publicly available information, including the geotechnical aspects, topography,
hydro-meteorology of the Project site, adjoining landholdings, and nautical traffic leading to the
Project site. The Contractor shall collect relevant documentation on prior land uses at the Project
site, neighboring land uses, and maritime traffic. The Contractor is responsible for collecting any
additional information not provided by the Client that is required to complete the preliminary
technical analysis.
The Contractor shall meet with Dominican government agencies and local authorities responsible
for construction, nautical channels, and environmental protection at the Project site. The
Contractor shall seek relevant site information, regulatory guidance, and permission to conduct
studies at the selected Project site. The Client shall confirm the list of relevant authorities for the
Contractor to meet with and shall provide letters of introduction as appropriate. The relevant
Dominican government agencies and local authorities include the following, among others:
a-. Comisi6n Nacional de Energia
b.
c.
d.
e.
Superintendencia de Electricidad
Corporaci6n Dominicana de Empresas Electricas Estatales
Empresa Distribuidora de Electricidad del Norte
Empresa Distribuidora de Electricidad del Sur
Annex I-7
f
<
f. Empresa Distribuidora de Electricidad del Este
g. Empresa de Transmisi6n Electrica Dominicana
h. Empresa de Generaci6n Hidraulica Dominicana
1.
Ministerio de Hacienda
J. Ministerio de Medio Ambiente y Recursos Naturales
k. Ministerio de Industria y Comercio y Mypimes
1. Ministerio de Economia Planificaci6n y Desarrollo
m. Ministerio de Defensa
n. Armada de Republica Dominicana
o. Cuerpo de Bomberos de Republica Dominicana
p. Liga Municipal Dominicana
q. Ayuntamiento de Castafiuelas
r. Ayuntamiento de Palo Verde (Distrito Municipal)
s. Ayuntamiento de Guayaban
t. Ayuntamiento de Hatilfo Palma (Distrito Municipal)
u. Ayuntamiento de Villa Elisa (Distrito Municipal)
v. Ayuntamiento de Cana Chapet6n (Distrito Municipal)
w. Ayuntamiento de Las Matas de Santa Cruz
x. Ayuntamiento de Pepillo Salcedo (Manzanillo)
y. Ayuntamiento de Santa Maria (Distrito Municipal)
z. Ayuntamiento de San Fernando de Montecristi
aa. Ayuntamiento de Villa Vasquez
In addition, the Contractor shall collect and review Host Country and international safety,
transportation, and storage guidelines for LNG terminals and LNG storage facilities, which may
include a review of a broad scope of existing reports and data related to specific safety guidelines
for LNG terminal siting and operations. The Contractor shall review the following documents and
guidelines regarding LNG terminal development:
•
•
•
•
•
•
•
•
•
•
•
•
NFPA 59A - Standard for the Production, Handling, and Storage of Liquefied Natural Gas
(2013 edition);
EN 1473:2007 - Installation and Equipment for LNG - Design of Onshore Installations;
Seveso III Directive EU Directive 2012/18/EU;
USCG - Guidance Related to Waterfront LNG Facilities - Including Information on
assessing the Suitability of Waterways for LNG Marine Traffic;
Guide to Contingency Planning for Marine Terminals Handling Liquefied Gases in BulkSIGTTO;
Guidance on performing a risk assessment in the design of onshore LNG installations
including the ship/shore interface- ISO draft 116901;
LNG Operations in Port Areas - SIGTTO;
BS EN 13645:2002 - Installations and equipment for LNG - Design of onshore
installations;
U.S. 33 CFR Part 127 - Waterfront Facilities Handling LNG and LHG;
Port Marine Safety Code of the UK, Merchant Shipping Acts;
Site Selection and Design for LNG Ports and Jetties (IP No. 14)- SIGTTO; and
LNG Overview - U.S. Federal Energy Regulatory Commission.
Annex I-8
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Based on the above documents and guidelines, the Contractor shall assess the following issues:
•
•
•
•
Safety distance from LNG terminal and LNG pipelines to adjacent buildings, industrial
zones, and local residential areas;
Safety distance from unloading arm at the jetty for loading/unloading operations;
Safety distance between moored LNG carriers and between moored carriers and a passing
ship; and
Safety distance of LNG carriers and other cargo vessels when moving in the channel.
With respect to Host Country legislation and regulations related to LNG, the Contractor shall
review the following laws and regulations, at a minimum:
•
•
•
•
•
•
•
•
Ley No. 112-00, Tributaria de Hidrocarburos, de fecha 19 del mes de noviembre del afio
2000;
Ley No. 7128 sobre Tanques de Combustibles, de fecha 9 de junio del afio 1948;
Decreto No. 307-01 que aprueba el Reglamento para la Aplicaci6n de la Ley Tributaria de
Hidrocarburos, No. 112-00, de fecha 2 del mes de marzo del afio 2001;
Decreto No. 264-07, que declara de interes nacional el uso del gas natural, para su interes
social, econ6mico y medio ambiental, de fecha 22 del mes de mayo del aiio 2007;
Resoluci6n No. 01-08 de fecha 3 de enero del afio 2008, emitida por el MIC, que expide el
Reglamento que establece los Procedimientos para el Otorgamiento de Licencias para las
Actividades Relacionadas con la Comercializaci6n de Gas Natural;
Resoluci6n No. 121-07, de fecha 16 de agosto del aiio 2007, emitida por el MIC, establece
el Reglamento que regula el Decreto No. 264-07, en lo concemiente al uso del Gas Natural
Vehicular, cuyo objeto es promover y desarrollar su uso, regular el expendio de GNV, los
Talleres y los Equipos de Conversion Vehicular a GNV;
Resoluci6n No. 33-08, de fecha 28 de marzo del afio 2008, emitida por el MIC, establece
las tarifas a pagar por las servicios de otorgamiento de Licencias relacionadas con el
desarrollo de las actividades de comercializaci6n del Gas Natural; and
Pending Host Country legislation regulating the LNG and electrical generation sectors.
The Contractor shall also collect specific vessel class details to define the requirements for LNG
transfer from ship-to-shore and the requirements for moorings and cargo transfer mechanism
height. Vessel design changes (length, width, and draft) shall be accounted for in this effort. The
Contractor shall evalaute future trends in vessel design and LNG cargo and transfer equipment.
For Subtasks 4.4, 4.5, and 4.6, the Contractor shall propose survey scope, methods, quantities (e.g.,
number of sample locations, boreholes, measurement sites, grid-scale), standards to be applied,
.and schedule for executing the field assessments. Before commencing each assessment, the
Contractor shall submit to the Client its specific plans for the assessments, which shall include the
following:
a)
b)
c)
d)
The scope of the assessment;
Quantities (e.g., number of sample locations, boreholes, measurement sites, grid scale.);
Specific sample locations;
Field and laboratory assessment methods;
Annex 1-9
e)
f)
g)
h)
i)
j)
k)
1)
Field and laboratory equipment;
Measurement methods and criteria;
Assessment staff;
Quality control measures;
Safety measures;
Required permits;
Environmental management plan; and
Restoration plan.
The Contractor shall obtain approval from the Client prior to initiating the field assessments. The
Contractor shall ensure that the survey and assessment methods defined for Subtasks 4.4, 4.5, and
4.6 be conducted in compliance with national and local building codes relating to quality control
and maintenance of construction works, including but not limited to:
a) Establish and approve the construction survey objectives and execution plan;
b) Manage the quality of the construction survey; and
c) Inspect, grant acceptance, and approval of the technical construction survey results.
In addition, the Client shall provide the Contractor with the relevant regulations and
recommendations regarding the standards that should be included in all assessments.
Subtask 4.4 Geotechnical Assessment
The Contractor shall undertake a geotechnical assessment to provide the guidance necessary to
complete the basic design for the LNG terminal, power plant, and storage facility. The geotechnical
assessment shall be of sufficient scope and scale to define the layout optimization and land area
required for the LNG terminal, power plant, and storage facilities. The geotechnical assessment
shall include:
a) A review and analysis of available documents obtained either from the Client or
commercial sources, on-site geology, engineering geology and earthquakes, aerial
photographic maps, and satellite images of the Project site and surrounding area;
b) Subsurface characterization through soil borings: the Contractor shall utilize national and
international building standards for defining the number and depth of borings at the Project
site, which shall be mutually agreed to by the Contractor and Client; and
c) Laboratory and field tests of boring samples and boreholes.
The Contractor shall prepare a geotechnical assessment report, which shall include the following:
a) Analysis and assessment of the physio-mechanical properties of the foundation soil, which
shall describe the uniformity of the subsurface conditions supporting the required process
units, building foundations, and heavy pavement sections;
b) Recommendations of specific foundation concepts best suited for the Project site,
including, but not limited to, foundation types (such as spread footings or pile foundation),
soil improvement requirements, and any backfill zones;
Annex 1-10
c) Identification and assessment of the site geotechnical risks and recommended mitigation
measures; and
d) Definition of the possible earthquake risk, including micro-seismic earthquake risks and
proposed risk mitigation measures for seismic hazards related to the design of on-shore and
marine structures and the potential for subsurface liquefaction during seismic events.
ubtask 4.5 Topographic and Bathymelric. un evs
The Contractor shall conduct topographic and bathymetric surveys at the proposed onshore and
offshore parameters of the Project site (extending outward from the site property lines) to support
the definition of the proposed shipping channel and surrounding areas to support the study and
design of the LNG terminal, storage facility, berthing, and expected shipping lane. The technical
requirements for the survey work shall comply with the current Host Country regulations, codes,
and standards, which shall be provid~d by the Client.
The Contractor shall ensure that the surveys include the following:
a) Collection and analysis of Client-provided and publicly available topographic and geodetic
data, and cadastral maps of the site and relevant surrounding areas. The Contractor shall
coordinate with the Client and local experts (such as local contractors and others who have
done previous topographical and bathymetric studies of the site and shipping channel). The
site topographic maps shall be of sufficient detail to allow for site planning and review.
b) Establish a geodetic control point network for mapping, topographic survey, and other
survey activities. The accuracy of the horizontal control point shall be equivalent to a firstorder traverse point. The network shall be connected to class IV triangulation points by
using a suitable GPS device and with a static measurement method.
c) The class IV leveling shall be used to measure the elevation of first-order traverse points.
The vertical control network shall be connected to at least two state class III elevation
points available in the area.
d) The topographical mapping shall be at a scale of 1: 1000 with a contour lines interval of 0.5
meters. The mapping boundary shall cover the onshore and riverbed areas for the LNG
terminal, storage facility, berthing, and expected shipping channel.
e) The engineering geodetic survey supporting the engineering geological assessment and
hydrographic survey shall include positioning and geodetic connecting excavations
(boreholes), geophysical, flood trace points and other points, and measurement of hydraulic
sections.
The Contractor shall prepare a topological and bathymetric survey report, which shall provide a
complete and detailed description of works performed, data processed, calculations, and results
achieved.
Subtask 4. 6 Hydro-Jvleteorological Assessment
The Contractor shall conduct a hydro-meteorological assessment at the Project site to support the
study and design of the LNG terminal, storage facility, berthing, and the expected shipping lane.
The hydro-meteorological assessment shall include the following:
Annex I-11
't2--
a) Based on data collected from the Client and publicly-available sources, the Contractor shall
update and analyze hydro-meteorological data available for the Project site, in sufficient
detail to define hydro-meteorological characteristics and flooding potential;
b) The Contractor shall measure to verify the prior data and update (as appropriate) the
hydrographic cross-sections and add additional ones. Utilizing the prior data and newly
collected data, the Contractor shall assess the rate of sedimentation at the areas of interest
to the Project;
c) The Contractor shall conduct a tidal survey to ensure vessel access and ship channel
requirements at the Project site, including the capture of any seasonal variations.
d) The Contractor shall calculate hydro-meteorological parameters and sediment factors
related to the port construction and expected shipping lane; and
e) The Contractor shall asses the ship channel dredging requirements.
The Contractor shall prepare the hydro-meteorological assessment report, which shall provide a
complete and detailed description of works performed, data processed, calculations completed,
and results achieved. The report shall also include site flood potential, tidal variations on the
shoreline, sediment rates, and ship channel dredging requirements.
Deliverable #4 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 4. The
Contractor shall also prepare and submit the following drawings:
1. The general layout of the LNG terminal at the Project site;
2. The natural topography of the LNG terminal and port at the Project site;
3. Arrangement plan of the geotechnical assessment boreholes;
4. Comparison of alternatives for the siting of the LNG terminal and storage facility; and
5. Geological section, photos of drilling cores, seabed cross-section, and profile.
Task 5:
Basic Design of LNG Terminal
Subtask 5.1 Basic Design
The Contractor shall compare technical options for the LNG terminal, including onshore and
offshore-based terminals, and shall propose the best option for LNG terminal and storage facility
for approval by the Client. The Contractor shall develop the basic design of the LNG terminal and
storage facility. The Contractor shall ensure that the designs meet the Project objectives of
providing sufficient capability to supply natural gas to the power plant, abide by national
requirements and building codes, include design parameters to synchronize operation with the
power plant, and meet safety and productivity standards for LNG terminals as described in the
various guidance documents reviewed in Subtask 4.3. The basic design shall comprise definitions
and descriptions of major equipment and drawings for the following:
f/
a) The technologies and equipment to be used for the LNG terminal, LNG storage, supporting
infrastructure and civil works, port infrastructure, port civil works, and service vessels;
Annexl-12
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b) The major plant unit locations, process flowsheet, layout of the process and supporting
infrastructure, and direction of the process flow;
c) Calculation and selection of LNG receiving jetty and navigation channel with applicable
standards;
d) Calculation of the quantitative risk assessment to define the safety distances;
e) Conceptual pipeline network sketch and preliminary calculations;
f) Major equipment list, including sizes and types;
g) Updated site plan, plant layout, and elevation drawing showing relative sizes and main
structures;
h) Plan for connection of utility infrastructure inside and outside the LNG terminal;
i) Fire and explosion prevention and firefighting plan and guidelines;
j) Design basis, calculations, and material and energy balances;
k) Applied standards and technical regulations for preparing the basic design; and
1) Construction solutions and plans.
Subtask 5.2 upporling Information
The Contractor shall prepare the following supporting information:
a) Human resources plan, including LNG terminal management organization chart and
staffing plan;
b) Port operations plan, including definition ofrecommended LNG tanker delivery schedule,
service vessel needs, and safety plan for deliveries;
c) Process safety risk assessment, including risk identification, assessment of risk impact, and
risk mitigation measures;
d) The LNG loss rate in transportation, storage, and regasification; and
e) Incident statistics that have occurred at LNG terminals around the world.
Deliverable #5 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 5.
Task 6:
Power Plant Technical Analysis, Power Purchase Agreement and Project
Impact on the Dominican Republic's Generation Expansion Plan
Subtask 6.1 Power Plant Technical AnaLvsis
The Contractor shall review the requirements for the power plant, as defined in the market
assessment. The Contractor shall evaluate potential technologies for the power plant, primarily
focused on load characteristics, efficiency, capital and operating costs, and environmental
characteristics, and shall recommend the optimal technology and plant configuration option to the
Client. To conduct this evaluation, the Contractor shall develop a simplified evaluation model for
comparing different technology options using the levelized cost of electricity as an evaluation
criterion. After approval of the recommended technology and configuration option by the Client,
the Contractor shall develop a preliminary design package for the power plant. The preliminary
design package shall be based on the latest natural gas electricity generation technology. The
Annex I-13
preliminary design shall include, at a minimum, the conceptual design of the power plant, gas
supply lines, and substations.
The preliminary design of the power plant shall include conceptual specifications for the
following:
•
•
•
•
•
•
•
Listing of the power plant's major equipment and systems, including basic technical
characteristics and overall description of the power plant and gas and interconnecting
transmission facilities;
The power plant's conceptual heat and material balances, including efficiency and fuel
consumption;
The power plant conceptual plot plan, including a general arrangement of the principal
equipment;
The power plant conceptual main electrical one-line diagram;
Conceptual electrical one-line diagram showing modification/expansion of the substation
used as a connection point;
Conceptual drawings showing the interconnection gas pipeline and interconnection
transmission line routing on the area maps; and
The plant narrative (also referred to as the "design basis document").
The plant narrative for the power plant shall contain the following sections:
a. Executive summary
b. System layouts with desirable configuration and alternatives, comparative advantages, and
disadvantages
c. Civil works
d. Mechanical systems
e. Electrical systems
f. Control and instrumentation systems
g. Water systems
h. Fuel systems
1.
Effluent management systems
J. Utilities and infrastructure
k. Power evacuation system
I. Hookups and interconnections
m. Safety and environmental aspects
n. Statutory requirements and clearances
o. Stand-alone cost estim ates (CAPEX and OPEX)
p. Proj ect imp! mentation sch edule
q. Workforce requirement
r. Gas pipe connection to adjacent LNG terminal
ubtask 6.2 Power Plant Equipment om,nercial Terms
The Contractor shall meet with major U.S. power plant suppliers to define their potential interest
in the Project. The Contractor shall describe the commercial situation with the potential suppliers
Annex I-14
as it relates to long-term contract commitments, selling strategy (financing options), new
technologies (hybrid), and interest in the Project. The Contractor shall seek draft contract terms
from the interested suppliers. Given the number of options available to meet the generation
requirements, the Contractor shall define the most appropriate power plant size to meet the
baseload generation objectives of the power plant, recognizing seasonal variations in load demand.
Based on the size of the generator, the Contractor shall seek commercial terms from at least three
internationally known suppliers for gas power plants compatible with the Project.
Subtask 6. 3 Power Purchase Agreement
ommercial Terms
The Contractor shall prepare and present to the Client for approval a draft power purchase
agreement based upon international best practices and intended to set forth the terms of, and to
serve as a basis between the power plant and DISCOS concerning the sale of electricity. The draft
power purchase agreement shall contain the following provisions:
1. Contract and service terms
2. Energy, capacity, and any other products included in the transaction
3. Testing for capacity and energy deliverability
4. Commencement of services (the initial delivery date)
5. Operational constraints
6. Delivery point
7. Electricity interconnection and transmission services
8. Gas interconnection
9. Compensation scheme (price of energy and capacity)
10. Billing and payment
11. Default events
12. Remedies of default events
13. Force majeure
14. Metering at the delivery point
15. Compliance with law, environmental risk, and indemnity
16. Credit requirements (as of the initial delivery date)
17. Confidentiality agreement
18. Dispute resolution
Subtask 6.4 Load Flow Analvsis
The Contractor shall conduct a load flow study to determine if all interconnection equipment
(principally cables, overhead lines, and power transformers) remain within their steady state
thermal limits and that the voltage regulation across the network remains within thermal equipment
ratings. The steady state load flow analysis shall take into account the existing Host Country power
grid and the proposed power plant. This analysis shall include power system stability conditions
and N+ 1 network reliability contingencies.
Annexl-15
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The Contractor shall:
•
•
•
•
•
•
•
•
•
Request and review relevant transmission infrastructure conditions and capability data,
including Host Country power production, substation inventory and capability, and cable
transmission specifications and condition reports. The Contractor shall collect this
information from the Client and from the regional electricity producers. The Client shall
ensure this information is received by the Contractor in a suitable electronic format.
Review the transmission system power system simulator for engineering ("PSS/E") models
and update them based on current data and future case scenarios.
Perform power flow calculations to determine the transfer capability in steady state and
single outage (N+ 1 reliability) conditions.
Recommend ways to increase the transfer capability and voltage regulation in case of
weaknesses in the system infrastructure.
Assess the transmission system capability and identify potential weaknesses in the system
when interconnecting the proposed power plant.
If any overloads are found, the Contractor shall make recommendations for either
upgrading the transmission network or curtailing generation.
Analyze the impact that the proposed network upgrade to support the new power plant
could have on the network performance in steady state.
Analyze network security to determine strategies to maintain acceptable operating
conditions in steady state, such as voltage regulation and thermal ratings under system
intact condition, as well as during N+ 1 reliability contingencies.
Recommend a schedule for the transmission upgrades, based on the proposed power plant.
ubta ·k 6. 5 Fault Analysis
The Contractor shall perform a fault analysis and shall calculate the short-circuit current for every
transmission bus in the system. The fault analysis study will help verify any bus fault currents that
would exceed the current circuit breaker ratings on the future system, on the high-voltage C'HV")
side only. The fault analysis shall be performed for the existing system and the system with the
proposed generation and transmission additions.
The Contractor shall review the sequence impedance data in the PSS/E model and update it
accordingly. The Contractor shall calculate three phase and line-to-ground fault currents at every
HV transmission bus.
The Contractor shall prepare a steady state load flow and fault analysis report that includes the
following sections:
a)
b)
c)
d)
e)
f)
f
Objective
Assumptions
Load flow analysis on the existing and proposed network
Fault analysis on the existing and proposed network
Recommendation for system upgrades
Analysis of how the power plant would impact the steady-state stability of the Host
Country grid
Annexl-16
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g) All of the PSS/E models used in this task
Subtask 6. 6: Grid Connection Cost Estimate
The Contractor shall prepare an order-of-magnitude cost estimate(± 25%) for the recommended
changes to the grid system. The estimates shall include major equipment cost estimates based on
prior studies and vendor quotes (as needed). Costs shall be based on U.S. design, U.S. equipment,
and related labor costs. Supporting infrastructure, controls, and other equipment shall be estimated
based on a percentage of equipment cost or costs determined by prior studies. For transmission
line estimates, the Contractor shall base the estimate on a standard per kilometer rate multiplied
by the various line lengths. The Contractor shall add up the costs for each recommendation and
then total the costs for the entire grid upgrade.
The Contractor shall prepare a switching single-line diagram for each type of substation. The
single-line diagram shall depict major equipment only (control, protection relays, and schemes
will not be shown on the single-line diagrams).
The cost estimates shall be based on grid connection costs as it relates to:
•
•
•
Network upgrades;
Additional substations; and
Interconnections of the power facilities to the grid.
Subtask 6. 7:
Proiect Impact on the Dominican Republic Electrical Interconnected System
Generation Exp msion Plan
The Contractor shall review all information available provided by the Client on the Dominican
Republic Generation Expansion Plan and the Client's analysis of the Host Country grid and the
impacts of the power plant on the grid . .The Contractor shall develop a strategy to incorporate the
Project into the existing expansion plan with a new projection to 2030 that includes the impact of
the Project on the system. The software used to develop the plan shall be of the latest generation
available and shall take into consideration the variability of natural resources available for
renewable energy.
The Contractor shall prepare a report of the impact of the power plant on the Host Country grid.
This report shall take into account the stability and capability of the grid to interconnect with the
power plant, the interconnection location, the impact of competing projects in the north of the Host
Country, the regulatory requirements for 25 percent renewable energy by 2025, the expected cost
of the Project, and the levelized cost of energy. The Contractor shall address each of these issues
and incorporate specific project, social, and economic considerations in justifying the power plant.
The Contractor shall also include recommendations on the power plant business model, including
fuel switching scenarios, whether dual fuel capability should be considered, impacts of fuel price
sensitivities, expected operating rate, need for spinning reserve, and provide a rational justification
for the implementation of the power plant project within the Dominican Republic context.
Annex I-17
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To assist the Contractor with the report, the Client shall provide the Contractor with the NonConventional Renewable Energy 2030 Strategy and shall assist them in meeting with experts
within the Client and the power distribution sector who can assist them in obtaining the necessary
information on the Dominican Republic power situation and expansion plans. The Client shall
provide, or provide access to, all information needed by the Contractor to assess how to incorporate
the power plant project into the Dominican Republic power expansion plans.
Deliverable #6 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 6.
Task 7:
Project Economics and Financing Plan
ubtask 7.1 Project Economics and Financial Model
The Contractor shall develop an estimate of total investment cost for the LNG terminal, storage
facilities, regasification terminal, power plant, pipelines, port, and ancillary support areas. The
estimate shall include all equipment and services required for the engineering, procurement,
construction, and startup of the Project. Total investment cost includes loss of value compensation,
support, and relocation costs (if any); construction costs; equipment costs; project management
costs; construction consultancy costs; other costs; and contingency costs (for unplanned
construction work, unexpected construction issues, and cost escalation).
The Contractor shall develop and recommend the most appropriate financial model for the
implementation and operation of the LNG terminal and power plant. The Contractor shall provide
an estimate of start-up and annual costs, an estimate of the LNG volumes and storage capacity
required to make the LNG terminal a viable project, and an estimate of the volume of electricity
sales through the spot market and/or power purchase agreements. The Contractor shall ensure that
the financial model considers costs for an LNG terminal and power plant of varying sizes,
equipment configurations, and capacity/storage considerations, which shall provide a range of
investment options for the Client.
The Contractor shall perform a life-cycle cost analysis ("LCCA") of the Project, including all
capital costs, installation costs, decommissioning costs, and forecasted annual operations and
maintenance costs. Such costs shall include, but are not limited to, warranties, operation,
maintenance, acquisition, installation, refurbishment, and disposal costs that could be encountered
throughout the life of the Project. The analyses shall cover a 25-year timeframe and shall include
net present value, payback period, and internal rate of return by applying varying sensitivities to
major costs to develop best-case and worst-case scenarios.
f
I
Subtask 7.2 Financing Plan
The Contractor shall prepare a financing plan for the Project that recommends and justifies the
optimal financial structure and mechanisms, policies for incentives, and Dominican Republic
government support for Project implementation. The Contractor shall also prepare a Project
financing prospectus for interested investors that contains all material information necessary to
market the Project to interested investors and financiers.
Annexl-18
~
The Contractor shall meet with the Client to define investment options, investment risk analysis,
and prepare a summary presentation for use with financing entities and equity investors that shall
set forth the ownership structure, including joint ventures and strategic development partners.
The Contractor shall assess which public and private financing organizations (such as the World
Bank, Inter-American Development Bank, Export-Import Bank of the United States, and Overseas
Private Investment Corporation) are interested in providing financing for Project implementation.
This assessment shall include a financing plan and a financing strategy, including several
approaches to securing financing for the Project, based on discussions with the Client, potential
lenders, and potential equity providers.
The Contractor shall outline the rationale for the financing plan and financing strategy, and shall
take into account a number of relevant factors including, but not limited to: (i) various debt/equity
ratios; (ii) various interest rates and loan terms; (iii) various insurance rates; and (iv) various
depreciation schedules. The Contractor shall also provide a recommendation for the most effective
financing sources for the Project. The Contractor shall prepare a timeline and recommend a
schedule for financing activities.
Deliverable #7 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 7.
Task 8:
Regulatory and Legal Review
The Contractor shall review all Host Country laws, regulations, and standards impacting the
Project and shall define specific regulatory-related tasks the ' Client will need to undertake to
implement the Project. The Contractor shall also review relevant building codes and other
regulations that may impact the Project.
Deliverable #8 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 8.
Task 9:
Preliminary Environmental and Social Impact Assessment
Subtask 9.1 Preliminary Environ.mental and ocial Impact Assessrnen.t
The Contractor shall conduct a review of the Project's environmental and social impact and
compliance with the Equator Principles and with Host Country national, provincial, and local
environmental laws. The Contractor review shall identify potential positive and negative
environmental impacts, discuss the extent to which negative impacts can be mitigated, and develop
plans for a full environmental impact assessment in anticipation of the Project moving forward to
the implementation stage. The Contractor shall identify the required Host Country national and
provincial government environmental approvals required for Project implementation.
Annexl-19
~
The Contractor shall focus on the following:
a) Project origin, Project owners, required Project approvals, and the methodology for the
preliminary environmental and social impact assessment.
b) Evaluation of technology and equipment selected for the Project, and any Project-related
activities that could cause an impact on the environment.
c) Assessment of the current status of the natural and socioeconomic environment at the
Project site, shipping channel, and adjacent areas.
d) Assessment and forecast of waste sources, and the Project's impact on the environment
and community health.
e) Assessment, forecast, and determination of measures for managing Project risks posed to
the environment and community health.
f) Waste disposal measures for maritime-related Project construction and operation,
including for dredging residues and maritime vessel wastes.
g) Measures for minimizing the impact of the Project on the environment and community
health.
h) Results of public consultation and public comment from affected groups, including
neighboring businesses, farms, local non-governmental organizations, local municipalities,
and provincial authorities.
i) Environmental management and supervision programs.
j) A budget estimate for the construction of environmental protection facilities and measures
to be taken to minimize the environmental impact.
k) Alternative measures to mitigate environmental impacts related to Project development.
'ubtask 9. 2
limate Resiliency Asse · ment
The Contractor shall assess the anticipated climate-related impacts on the Project, including on the
Project's technical, commercial, and environmental viability. The Contractor shall conduct the
climate resiliency assessment based on publicly available information. At a minimum, the
Contractor shall analyze the following potential climate-related impacts on the Project's viability:
•
•
•
•
Increased variability of rainfall and wind;
Sea-level rise, storm surges, and ocean acidification;
Increased frequency of extreme weather events; and
Increased temperature.
Based on this assessment, the Contractor shall provide recommendations of items the Client should
include in the Project design and implementation to mitigate climate-related risks.
~
;·
Deliverable #9 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 9.
Task 10:
Development Impact Assessment
The Contractor shall assess the economic development impacts associated with Project
implementation and shall detail the methodology for measuring those impacts. The development
Annex I-20
f2.-
impacts considered shall be relevant to the Project (i.e., reasonably expected to flow from its
implementation as outlined in the Study) and the Contractor shall prepare a plan for monitoring
these impacts during the useful life of the Project. The Contractor shall focus on the following
development impact indicator:
Sector
Category
Indicator
Description
Energy and
Power
Infrastructure
Development
and Efficiency
Gains
New Energy
Capacity
If implemented, the Project
would generate up to 600
megawatts of electricity in
the Dominican Republic
Anticipated
Outcome
Up to 600
megawatts
Deliverable #10 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 10.
Task 11:
U.S. Sources of Supply
The Contractor shall identify a list of potential U.S. companies that could provide the goods and
services required to implement the Project. The list shall include (i) the possible U.S. sources of
supply and/or services for the Project; (ii) a detailed description of relevant products, solutions,
and/or services to be provided; and (iii) contact information for the party or parties responsible for
marketing/sales in the Dominican Republic. The business name, point of contact, address,
telephone ,number, and e-mail address shall be included for each identified party. The Contractor
shall engage in discussions with relevant potential U.S. suppliers or service providers and analyze
their interest in the Project. The Contractor shall notify the Client of which potential suppliers or
service providers are interested in the Project. The Contractor shall estimate the value of potential
export sales for each identified potential supplier to the Project, by product or service.
The Contractor shall provide U.S. sources of supply for the LNG terminal, storage facility, power
plant, vessels, LNG supplies, and supporting infrastructure. The Contractor shall evaluate LNG
supply options for the various phases of the Project and the overall LNG supply for 10 years after
the initial commissioning of the LNG terminal.
Deliverable #11 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 11.
Task 12:
Implementation and Construction Plan
The Contractor shall prepare an implementation plan, including a constructability analysis for the
Project's LNG terminal, storage facilities, and power plant. The Contractor shall identify key
Project implementation factors, such as resource use requirements, land use requirements,
selection of equipment and technology, use oflabor, technical infrastructure, product consumption,
implementation duration, site preparation, and environmental protection. The Contractor shall also
identify other Project implementation factors, such as land acquisition, construction safety, fire
safety and prevention, and other topics considered in such a Project.
Annexl-21
~
The implementation and construction plan shall include, but not be limited to:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
1)
m)
n)
o)
p)
q)
Site construction requirements, including labor requirements, equipment, and schedule;
The scope of the construction, including site, marine, and process systems;
Technical definition and specification of the major equipment;
The general layout for each of the Project phases;
Proposed sources of materials and equipment;
Plan to transport materials and equipment to the construction site;
Main construction methods and specialized equipment;
Infrastructure for construction (such as roads, power supply, and water supply);
Environmental protection requirements during construction;
High-level procurement plan strategy (preferably life-cycle costing/best value
procurement), including recommended equipment selection guidelines for the Project;
Estimate workforce requirements by skills category for operations;
Estimates of construction requirements (e.g., excavation, leveling, concrete, steel
structures);
Training and education plans for operations and maintenance personnel;
Master schedule of events synchronized with power plant development and commissioning
schedule prepared in consultation with the Client (if applicable);
Master construction schedule for each major process and infrastructure unit, including
milestones;
Project management plan, organization, and process; and
Construction risk analysis.
The Contractor shall also prepare a set of recommendations regarding the Project development
structure. The Contractor shall prepare a strengths, weaknesses, opportunities, and threats analysis
of each possible development option for the Project, whether as a combined Project or separated
into Project components. The Project development options assessed shall include the following:
•
•
•
•
•
Engineering, procurement, and construction;
Build, operate, and transfer;
Build, own, operate, and transfer;
Independent power producer, and
Other options for private sector development or for the transfer of ownership to the
government (if recommended).
DeLiv rab le #12 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 12.
Task 13:
Preparation of Request for Proposal Package
The Contractor shall prepare and present to the Client for approval a draft request for proposals
("RFP") for a Project developer, based on international best practices. The RFP package is
intended to set forth the terms of, and to serve as a basis of, the agreement between the power plant
developer and the Client, as well as with the DISCOS for a long-term commitment for the purchase
of electricity. The RFP package shall contain the following items, at a minimum:
Annex I-22
fZ__,
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
1)
m)
n)
o)
Description of the Dominican Republic electricity market;
General description and technical specifications of the LNG terminal;
General description and technical specifications of the power plant;
Project schedule and commercial date;
Draft public-private partnership or build, operate, and transfer agreement;
Power purchase agreement;
Sovereign guarantee;
RFP schedule;
Evaluation committee;
Questions and answers;
RFP addenda and annexes;
General bid submittal requirements;
Bid submission format and deadline;
Selection criteria; and
Any other relevant information needed to prepare the bid documents, including the bid
scoring methodology.
Deliverable #13 - The Contractor shall prepare and deliver to the Client a detailed written report
describing all work performed (including all reports, deliverables, and findings) for Task 13.
Task 14:
Final Report and Presentation
The Contractor shall prepare and deliver to the Client and USTDA a substantive and
comprehensive final report of all work performed under these Terms of Reference (the "Final
Report"), which must conform to the requirements under Clause I of the Mandatory Contract
Clauses (as defined in Annex II). The Contractor shall organize the Final Report into chapters and
sections with clear labels corresponding to each of the above tasks and sub-tasks of these Terms
of Reference, and the Contractor shall include in the Final Report all deliverables and documents
that have been provided to the Client under these Terms of Reference. The Contractor shall
incorporate into the Final Report (i) all of the findings, recommendations and conclusions of the
Study under these Terms of Reference, and (ii) all other documents and/or reports provided
pursuant to the tasks noted above, in each case clearly organized and labeled according to each
task and sub-task under these Terms of Reference. The Contractor shall also include an executive
summary to the Final Report as a whole, and provide a summary for each task under the Terms of
Reference.
Before completing and delivering the Final Report to the Client or USTDA, the Contractor shall
(a) prepare a draft Final Report in accordance with the instructions in the above paragraph, (b)
travel to the Dominican Republic to present the complete findings of the Study to the Client, and
(c) provide the draft Final Report to the Client for review and discussion.
Once the Client has provided comments and revisions to the draft Final Report, the Contractor
shall make the necessary changes and modifications to the draft Final Report, it being understood
that the Contractor shall not make any changes or modifications that are inconsistent with any of
these Terms of Reference.
Annex I-23
I/
ANNEX 6
USTDA-Funded Feasibility Study, Technical Assistance, or Training Grant
U.S. Firm Information Form
This form is designed to enable the U.S. Trade and Development Agency ("USTDA") to obtain information about entities and individuals proposed for participation in
USTDA-funded activities. Information in this form is used to conduct screening of entities and individuals to ensure compliance with legislative and executive branch
prohibitions on providing support or resources to, or engaging in transactions with, certain individuals or entities with which USTDA must comply.
USTDA Activity Number [To be completed by USTDA ] 2019-51016A
Activity Type [To be completed by USTDA ]
Feasibility Study
Technical
Assistance
✔
Activity Title [To be completed by USTDA ]
Other (specify)
LNG Terminal and Power Plant Project Feasibility Study
1. Full Legal Name of U.S. Firm
2. Business Address
3a. Telephone
3b. Website
4. Year Established (include any predecessor company(ies) and year(s)
established). Please attach additional pages as necessary.
5. Type of Business Entity (e.g., corporation, LLC, Partnership, Sole
Proprietor, Other)
Insert Type of Entity
6. Type of Ownership
Publicly Traded Company (i.e., offers securities for sale to the general public through a U.S. stock
exchange and is subject to SEC reporting requirements)
Private Company
Other (specify)
7. If U.S. Firm is not a publicly traded company and
has owners (e.g., shareholder, partner, trustee),
provide a list of such owners and the percentage of
their ownership. Please complete an Attachment A
for each owner whose ownership percentage is 10%
or more. Please ensure that the sum of the
percentages listed equals 100%. If the U.S. firm is a
publicly traded company, please do not complete this
section.
Name of Owner
Percentage (%) Ownership
8. If U.S. Firm is a subsidiary, please provide the
name of the U.S. Firm's parent entity(ies) and the
percentage of their ownership. Please complete an
Attachment A for any parent identified here. Please
ensure that the sum of the percentages listed equals
100%.
Name of U.S. Firm Parent Entity
Percentage (%) Ownership
9. Is the U.S. Firm proposing to subcontract some of
Yes
the proposed work to another firm?
No
10. Please list the legal names of the proposed
subcontractors (if applicable). An Attachment B is
required for each proposed subcontractor.
Project Manager
Surname
11. Name
Given Name
12. Business Address
13. Telephone
14. Email
Negotiation Prerequisites
15. Disclose any current or anticipated commitments which may impact the ability
of the U.S. Firm or its subcontractors to complete the Activity as proposed and
reflect such impact within the project schedule.
16. Identify any specific information which is needed from the Grantee before
commencing negotiations.
U.S. Firm may attach additional sheets, as necessary.
Annex 6 - 1
Page 1 of 3
TO BE COMPLETED BY PRIVATE AND OTHER U.S. FIRMS ONLY
(Not Applicable for U.S. Publicly Traded Company)
17. Provide a list of the U.S. Firm's directors and principal officers. Please provide full names, including surname and given name.
Title
(e.g., Director, President, Chief Executive Officer,
Vice President(s), Secretary, Treasurer, or other
applicable title)
*Please place an asterisk (*) next to the names of those
directors and prinicpal officers who will be involved in the
USTDA-funded activity.
Name
Surname
Given Name
Annex 6 - 2
Page 2 of 3
Middle Name
U.S. Firm's Representations
U.S. Firm shall certify the following (or provide any explanation as to why any representation cannot be made):
A.
Corporation
LLC
Partnership
Sole Proprietor
Other:
U.S. Firm is a [check one]
Insert Type of Entity
duly organized, validly existing and in good standing under the laws of the State of:
18. Insert U.S. State
The U.S. Firm has all the requisite corporate power and authority to conduct its business as presently conducted, to submit this
proposal, and if selected, to execute and deliver a contract to the Grantee for the performance of the USTDA Activity. The U.S.
Firm is not debarred, suspended, or to the best of its knowledge or belief, proposed for debarment or ineligible for the award of
contracts by any federal or state governmental agency or authority.
The U.S. Firm has included herewith, a copy of its Articles of Incorporation (or equivalent charter or document issued by a
designated authority in accordance with applicable laws that provides information and authentication regarding the legal status
of an entity) and a Certificate of Good Standing (or equivalent document) issued within one (1) month of the date of signature
by the State of:
19. Insert U.S. State
.
The U.S. Firm commits to notify USTDA and the Grantee if it becomes aware of any change in its status in the state in which it is
incorporated. USTDA retains the right to request an updated certificate of good standing at any time. (U.S. publicly traded
companies need not include Articles of Incorporation or Certificate of Good Standing.)
Neither the U.S. Firm nor any of its directors and principal officers have, within the ten-year period preceding the submission of
these representations, been convicted of or had a civil judgment rendered against them for: commission of fraud or a criminal
offense in connection with obtaining, attempting to obtain, or performing a federal, state, or local government contract or
subcontract; violation of federal or state antitrust statutes relating to the submission of offers; or commission of embezzlement,
theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, violating state or federal
criminal tax laws, or receiving stolen property.
Neither the U.S. Firm, nor any of its directors and principal officers, is presently indicted for, or otherwise criminally or civilly
charged with, commission of any of the offenses enumerated in paragraph C above.
There are no federal or state tax liens pending against the assets, property, or business of the U.S. Firm. The U.S. Firm has not,
within the three-year period preceding the submission of these representations, been notified of any delinquent federal or state
taxes in an amount that exceeds US$3,000 for which the liability remains unsatisfied. Taxes are considered delinquent if (a) the
tax liability has been fully determined, with no pending administrative or judicial appeals; and (b) a taxpayer has failed to pay
the tax liability when full payment is due and required.
The U.S. Firm has not commenced a voluntary case or other proceeding seeking liquidation, reorganization, or other relief with
respect to itself of its debts under any bankruptcy, insolvency, or other similar law. The U.S. Firm has not had filed against it an
involuntary petition under any bankruptcy, insolvency, or any similar law.
The U.S. Firm certifies that it complies with the USTDA Nationality, Source, and Origin Requirements and shall continue to
comply with such requirements throughout the duration of the USTDA-funded activity. The U.S. Firm acknowledges that the
USTDA Nationality, Source, and Origin Requirements apply to the delivery of goods and professional services funded by USTDA,
including, but not limited to the use of subcontractors. The U.S. Firm commits to notify USTDA and the Grantee if it becomes
aware of any change which might affect the U.S. Firm’s ability to meet the USTDA Nationality, Source, and Origin Requirements.
B.
C.
D.
E.
F.
G.
Check to certify:
The U.S. Firm shall notify USTDA if any of the representations are no longer true, correct, and complete.
U.S. Firm certifies that the information provided in this form is true, correct, and complete. U.S. Firm understands and agrees that the U.S. Government may rely
on the accuracy of this information in processing a request to participate in a USTDA-funded activity. If at any time USTDA has reason to believe that any person or
entity has willfully and knowingly provided incorrect information or made false statements, USTDA may take action under applicable law. The undersigned
represents and warrants that he/she has the requisite power and authority to sign on behalf of the U.S. Firm.
20. Name
23. Signature
21. Title
22. Full Legal Name of U.S. Firm
24. Date
If U.S. Firm is Private or Other, please attach a copy of the U.S. Firm's Articles of Incorporation (or equivalent document)
and Certificate of Good Standing (or equivalent document).
Annex 6 - 3
Page 3 of 3
ATTACHMENT A
USTDA-Funded Feasibility Study, Technical Assistance, or Training Grant
U.S. Firm Ownership Information Form
Owner(s) and Parent Entity(ies)
This form shall be completed for each owner that owns 10% or more of the U.S. Firm, as well as any parent entity of the U.S. Firm ("Owner").
An additional copy of this form shall be completed for each owner identified in this form that owns 10% or more in the Owner, as well as any
parent of the Owner identified in this form.
USTDA Activity Number [To be completed by USTDA ] 2019-51016A
Activity Title [To be completed by USTDA ]
LNG Terminal and Power Plant Project Feasibility Study
TO BE COMPLETED FOR ENTITIES AND INDIVIDUAL OWNERS
1. Full Legal Name of U.S. Firm
2. Full Legal Name of Owner
3. Business Address of Owner
4. Telephone number
TO BE COMPLETED FOR ENTITIES ONLY
5. Year Established (include any predecessor company(ies) and year(s)
established). Please attach additional pages as necessary.
6. Country of Owner's Principal Place of Business
U.S. Publicly Traded Company (i.e., offers securities for sale to the general public through a U.S. stock
7. Type of Ownership
exchange and is subject to SEC reporting requirements)
Private Company
Other (specify)
8. If Owner has owners (e.g., shareholder, partner,
trustee), provide a list of such owners and the
percentage of their ownership. Please complete an
additional Attachment A for each owner whose
ownership percentage is 10% or more. Please
ensure that the sum of percentages listed equals
100%. If the Owner is a U.S. publicly traded
company, please do not complete this section.
Name of owner
Percentage (%) Ownership
9. If Owner is a subsidiary, please provide the name
of the Owner's parent entity(ies) and the percentage
of their ownership. Please complete an additional
Attachment A for each parent entity identified here.
Please ensure that the sum of percentages listed
equals 100%.
Name of Parent Entity
Percentage (%) Ownership
Please attach additional sheets, as necessary.
Annex 6 - 4
Page 1 of 2
TO BE COMPLETED BY PRIVATE AND OTHER U.S. FIRMS ONLY
(Not Applicable for U.S. Publicly Traded Company)
10. Provide a list of all of the Owner's directors and principal officers. Please provide full names, including surname and given name.
Title
(e.g., Director, President, Chief Executive Officer,
Vice President(s), Secretary, Treasurer, or other
applicable title)
*Please place an asterisk (*) next to the names of those
directors and prinicpal officers who will be involved in the
USTDA-funded activity.
Name
Surname
Given Name
Annex 6 - 5
Page 2 of 2
Middle Name
ATTACHMENT B
USTDA-Funded Feasibility Study, Technical Assistance, or Training Grant
Subcontractor Information Form
This form is designed to enable the U.S. Trade and Development Agency ("USTDA") to obtain information about entities and individuals proposed for participation in
USTDA-funded activities. Information in this form is used to conduct screening of entities and individuals to ensure compliance with legislative and executive branch
prohibitions on providing support or resources to, or engaging in transactions with, certain individuals or entities with which USTDA must comply.
USTDA Activity Number [To be completed by USTDA ] 2019-51016A
Activity Title [To be completed by USTDA ]
LNG Terminal and Power Plant Project Feasibility Study
1. Full Legal Name of Prime Contractor U.S. Firm ("U.S. Firm")
2. Full Legal Name of Subcontractor
3. Business Address of Subcontractor
4a. Telephone Number
4b. Website
5. Year Established (include any predecessor company(ies) and year(s)
established). Please attach additional pages as necessary.
Subcontractor Point of Contact
6. Name
Surname
Given Name
7. Address
8. Telephone
9. Email
Subcontractor may attach additional sheets, as necessary.
Annex 6 - 6
Page 1 of 2
Subcontractor's Representations
The Subcontractor shall provide the following (or provide any explanation as to why any representation cannot be made), made as of the date of these
representations:
A.
Subcontractor is a [check one]
Corporation
LLC
Partnership
Sole Proprietor
Other (specify)
duly organized, validly existing and in good standing under the laws of:
10.
The Subcontractor has all the requisite corporate power and authority to conduct its business as presently conducted, to participate in this
USTDA-funded activity, and if the U.S. Firm is selected, to execute and deliver a subcontract to the U.S. Firm for the performance of the USTDAfunded activity. The Subcontractor is not debarred, suspended, or to the best of its knowledge or belief, proposed for debarment or ineligible
for the award of contracts by any federal or state governmental agency or authority.
Insert U.S. State or Country
B.
Neither the Subcontractor nor any of its directors and principal officers have, within the ten-year period preceding the submission of these
representations, been convicted of or had a judgment rendered against them for: commission of fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a federal, state, or local government contract or subcontract; violation of federal or state
antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of
records, making false statements, tax evasion, violating federal or state criminal tax laws, or receiving stolen property.
C.
Neither the Subcontractor, nor any of its directors and principal officers, is presently indicted for, or otherwise criminally or civilly charged with,
commission of any of the offenses enumerated in paragraph B above.
D.
There are no federal or state tax liens pending against the assets, property, or business of the Subcontractor. The Subcontractor has not, within
the three-year period preceding the submission of these representations, been notified of any delinquent federal or state taxes in an amount
that exceeds US$3,000 for which the liability remains unsatisfied. Taxes are considered delinquent if (a) the tax liability has been fully
determined, with no pending administrative or judicial appeals; and (b) a taxpayer has failed to pay the tax liability when full payment is due
and required.
E.
The Subcontractor has not commenced a voluntary case or other proceeding seeking liquidation, reorganization, or other relief with respect to
itself of its debts under any bankruptcy, insolvency, or other similar law. The Subcontractor has not had filed against it an involuntary petition
under any bankruptcy, insolvency, or any similar law.
The selected Subcontractor shall notify the U.S. Firm, Grantee, and USTDA if any of the representations
included in its proposal are no longer true, correct, and complete.
The Subcontractor certifies that the information provided in this form is true, correct, and complete. The Subcontractor understands and agrees that the U.S. Government may
rely on the accuracy of this information in processing a request to participate in a USTDA-funded activity. If at any time USTDA has reason to believe that any person or entity
has willfully and knowingly provided incorrect information or made false statements, USTDA may take action under applicable law. The undersigned represents and warrants
that he/she has the requisite power and authority to sign on behalf of the Subcontractor.
14. Signature
11. Name
12. Title
15. Date
13. Full Legal Name of Subcontractor
Annex 6 - 7
Page 2 of 2
ANNEX 7
Questions Raised During This RFP Solicitation
1. Can USTDA provide a contract example for review?
You can find our template contract here: https://ustda.gov/program/propose-project.
2. Do proposals need to be submitted in English and Spanish?
Yes, all proposals should be submitted in English and Spanish.
3. Please confirm that the Contractor needs to provide evidence of satisfactorily
executing at least 5 power plant and 3 LNG terminal projects.
Per the Award Criteria, the Contractor must provide evidence of satisfactorily
executing at least 5 power plant projects and 3 LNG terminal projects.
4. Please clarify which is the “back-up project site” referenced in Task 3 of the
Terms of Reference.
The back-up project site will only be assessed if the primary project site is not viable.
No further information is available at this time.
5. Please clarify what portion of the budget corresponds to Phase I and Phase II of
the Feasibility Study.
If the contract is terminated at the end of Phase I, USTDA will evaluate the value of
the work completed during Phase I.
6. What is the timeline to complete the Feasibility Study?
The timeline to complete the Study will be agreed upon between the Grantee and
selected Contractor.
7. Does the Contractor need to meet with all government agencies listed in Subtask
4.3 of the Terms of Reference?
The Grantee will confirm the list of relevant authorities for the Contractor to meet
with.
8. Would USTDA consider allowing the use of experts based in countries other
than the United States or the Host Country to work on this project?
This is not allowed. Please see USTDA’s Nationality Requirements (Annex 3 of the
RFP) for further details.
9. We kindly request that the scope of Task 3 is expanded to also include assessing
LNG terminal configuration options to identify a technically viable option that
results in the least levelized cost of electricity. Configuration options would
include onshore as well as floating solutions. If a floating solution is a better
choice than an onshore solution, the scope of the site studies would likely be
considerably different than an onshore solution. We note that Task 5 includes an
analysis of technical options, but this is normally done before the detailed site
studies are performed.
Task 3 is a preliminary/conceptual assessment of the site's viability for the LNG
terminal and power plant. Tasks 4 and 5 are the more detailed feasibility study effort.
It is expected that Task 4 and 5 will be done in parallel.
10. In reference to Subtask 4.4., the RFP asks for soil borings, laboratory tests and
results. At the port site under consideration in this RFP, such soil borings may
be required at three sites: at LNG pier, LNG storage tank and Power plant site.
Has USTDA taken into consideration the cost of soil borings?
Little information is available at the present time as to the geotechnical situation. The
Contractor is expected to perform preliminary, but sufficient soil borings effort to
determine the suitability of the onshore site for the industrial installations. USTDA
expects that sufficient onshore drill rigs are available in the Dominican Republic.
Offshore drilling is not required at this time. The Contractor should note that an
existing jetty is in place, but not of sufficient length for large LNG carriers. The
Contractor is not expected to perform a detailed study to support the detailed design
phase of the project. Detailed site geotechnical assessments and offshore drilling
would done later as part of the subsequent FEED study.
11. Is site sampling required as part of the Preliminary Environmental and Social
Impact Assessment (Subtask 9.1)?
This is a preliminary Environmental and Social Impact Assessment and does not
require sampling and modeling.
12. Does the Contractor need to carry out a new topographic and bathymetric
survey of the site or can client-provided and publicly available data and maps be
used (Subtask 4.5)?
As stated in the Terms of Reference, the Contractor shall conduct topographic and
bathymetric surveys at the proposed onshore and offshore parameters of the Project
site. However, if a suitable study is available to provide sufficient and recent
information, then in agreement with the Grantee, this task can be revisited. We are
not aware of suitable studies currently available.
13. Task 4 (Subtask 4.4 - 4.6) describes geotechnical, survey, and environmental
work. We wish to have the desktop nature and data requirements clarified for
these subtasks.
The expectation is the Offeror shall be able to execute the survey effort with limited
drilling on site. The Offeror should be able to define a workplan that meets the
objectives of a feasibility study and provides sufficient information to develop a
conceptual/preliminary design and a study level cost estimate. Detailed survey work
is expected to be part of the subsequent FEED study effort.
14. Task 6 (Subtask 6.4 - 6.6) describes analysis of the High Voltage Transmission
and distribution grid in the DR involving the impact of the proposed power
plant within the existing set of generation resources and sources of
demand. This study is assumed to be a static analysis using data made available
from local authorities in the DR. Based on the indicated budget, it is assumed
that the terms of reference are referring to a desktop study conducted with
existing data that would be provided by local authorities in the DR. Any
requirement for gathering physical site data or collecting and analyzing samples
would be beyond the anticipated scope. Any requirement for dynamic system
transient stability would be beyond the anticipated scope. Any analysis
conducted would be a high level load-flow analysis under a limited number of
static conditions. Please clarify these Subtasks.
The static assumption is correct. The Offeror shall meet with the regional
transmission companies to obtain the necessary information.
15. Task 8 is interpreted as a very high level analysis, the goal of which would be to
identify key areas where local laws and regulations may differ from
international norms, thus impacting development of the project. Could you
please clarify this task?
The level of effort for the regulatory review is typical of a feasibility level study.
16. Task 12 refers to a Master Construction Schedule, which is assumed would take
the form of a simplified Gantt chart or similar construction scheduling tool.
Several of the items listed in items a through q would only be addressed from a
high level or indicative estimate perspective providing general guidelines. Could
you please clarify this task?
The contractor should assume the level of detail is sufficient for a feasibility study
only. Generally, indicative estimates are sufficient, but the actual level of effort shall
be proposed by the Offeror.
17. Based on what is written in the proposal currently there is broad range for
interpretation. Is there a clarifications process in place?
Clarifications shall be based on the agreement of the workplan details between the
Offer and the Grantee. The Offer should consider this is a study level feasibility study
which will result in requirements for further work to meet bankability requirements
by typical financial institutions.
18. It is stated that all proposal documents shall be submitted in English and
Spanish, except for Annex 6. Please confirm that the methodology, curriculum
vitae, and references must be submitted in English and Spanish.
That is correct. Per the RFP instructions, all proposal documents shall be prepared
and submitted in English and Spanish.
19. Could you please confirm the required/mandatory parts of the proposal?
Please refer to Section 3 of the RFP for detailed proposal requirements and directions.
20. Does the U.S. Firm Information Form in Annex 6 need to be filled for
subcontractors or just the main bidder (offeror)?
The U.S. Firm Information Form needs to be filled out for the Offeror, all parent
entities (Attachment A) and for subcontractors (Attachment B).
21. Can the final report be submitted only in English?
As stated in the Terms of Reference, all deliverables shall be submitted in English,
unless otherwise indicated.
22. It is requested the Offeror evaluate the connection between the LNG Terminal
and existing power plants. We kindly ask you to provide the number of power
plants to be potentially connected and their locations.
The Grantee is interested in maximizing the volume of LNG handled by the terminal.
As this task is part of the conceptual analysis, the Offeror is recommended to consider
the largest power plants that can be easily converted to gas firing or those with dual
firing capability already. This is likely to be only at most 3 or 4 plants. Taking into
consideration the relative remoteness of the proposed terminal, the Offer should
expect only one or two power plants will be accessible. A corridor adjacent to the
main highway is of interest to the Grantee as a possible path for such a pipeline. The
Offer is reminded this is a high-level conceptual analysis task.
Per the Grantee, the number of power plants to be potentially connected to the LNG
terminal will depend on the Expansion Plan that will be developed as part of the
feasibility study. As a reference point for the location of generation centers at the
national level, you can go to this portal: http://mapas.cne.gob.do/ and look at
“Generadoras Actuales SENI.”
23. Will the firm selected for this feasibility study be precluded from future
potential work related to the project?
Per the Grantee, the selected firm and the consultants who work on the feasibility
study will be precluded from participating in future potential work related to the
project.
24. Could you kindly clarify if the Contractor must have any business or
professional registration in in the Host Country to undertake this scope of work?
Per the Grantee, Host Country registration is not needed to perform the work on this
feasibility study.
25. Kindly let Offerors know if any site studies have been performed to date.
Per the Grantee, we are unaware of any site studies that would serve as input for the
work to be done.
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