SIPP Applications

Independent Power Producer (IPP) Framework General Procurement Processes

Stages Parties Action Reference
Annual power Generation Single Buyer (SB) The SB develops and publishes the Power Generation Procurement Plan at the beginning of each annual cycle. Annual Generation Procurement Plan

IPP Framework Solicited Procurement Processes

Stages Parties Action Reference
SIPP Prefeasibility Government of Malawi (GoM) GoM undertake prefeasibility studies
Full Prefeasibility Government of Malawi (GoM) GoM performs full feasibility study, completing all tasks possible at this stage
Request for Expression 0f Interest (EOIs) (RFI) Single Buyer (SB) The Single Buyer develops an RFI and RfT and advertises RFI Annexure A
EOIs prepared IPP Candidate IPPs submit EOIs Annexure A
SIPP Initial Assessment SB Initial due diligence and evaluation carried out by SB on SIPPs and prequalified SIPP shortlist developed Annexure C
Request for Tender (RfT) SB SB releases RfT to prequalified SIPPs Annexure B
Environmental Project Brief IPP IPP undertakes and submits Environmental Project Brief Annexure F
Environmental Project Brief Director of Environmental Affairs (DEA) Environmental Project Brief reviewed by Director of Environmental Affairs (DEA) and Technical Committee on the Environment Annexure F
Transmission Connection Electricity Supply Corporation of Malawi (ESCOM) Tx IPP applied for transmission connection and ESCOM transmission (Tx) evaluates the application and responds Annexure H
Regulatory Assessment IPP/Malawi Energy Regulatory Authority (MERA) IPP submits licence application and applies for interim licence or notice of any shortcomings. MERA provides IPP with indicative requirements for a licence to be awarded. Annexure L
Due diligence SB SB updates due diligence while short-listed bidders complete RfT requirements. Annexure C
Tender IPP RfT submitted by IPPs Annexure B
Tender Evaluation SB SB carries out full tender evaluation Annexure B
Preferred SIPPs selected SB SB selected preferred bidder/s and reserve bidder and notifies all bidders of next steps
Transmission Connection Agreed SB/ESCOM Tx The SB agrees to the terms of ESCOM Tx‟s transmission connection offer Annexure H
Negotiations on PPA IPP/SB The IPP and the SB negotiate the specific terms of the PPA Annexure I
Negotiations on IA IPP/MoF The IPP and the MoF negotiate the specific terms of the IA Annexure J
Land Lease contract IPP/MLHUD IPP requiring a land lease applies for and signs a land lease with the Ministry of Land, Housing and Urban Development (MLHUD) Annexure K
Generation Licence IPP/MERA MERA provides IPP with a conditional generation licence which becomes effective upon satisfaction of conditions precedent Annexure L
Environmental Impact Assessment (EIA) IPP IPP undertakes EIA Annexure F
EIA Reviewed DEA Review by Director of Environmental Affairs (DEA) and Technical Committee on the Environment Annexure F
Financial Close and Project Agreements Effective IPP IPP secures financing for project and Project Agreements become effective Figure 3 Summarised IPP Framework Solicitation

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