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El salvador geothermal energy for sustainable and inclusive development
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General Procurement Notice For: El Salvador Geothermal Energy for Sustainable and Inclusive Development
The Government of the Republic of El Salvador has received a loan from the International Bank for Reconstruction and Development (IBRD), signed through the LEMPA RIVER HYDROELECTRIC EXECUTIVE COMMISSION (CEL) for an amount equivalent to ONE HUNDRED FIFTY MILLION UNITED STATES DOLLARS (USD$150,000,000.00), which will be executed by the project's executing entity LAGEO SA de CV, and the latter intends to use the funds to make the corresponding payments for the acquisition of goods and the contracting of works, non-consulting services and consulting services within the framework of this project.
The project will comprise the following components:
Component 1: Drilling campaign to confirm geothermal resources
This component will fund a drilling campaign to confirm the geothermal reservoir capacity of the Chinameca field and to ensure steam production for a power generation plant that will harness the geothermal resource's potential. The drilling campaign will significantly improve the understanding of the geothermal field and allow for better estimates of the maximum commercially viable power generation capacity of the Chinameca geothermal field. The component will also support technical assessments to confirm the total steam production capacity of the geothermal field.
Subcomponent 1.1 : Drilling Activities to Confirm Steam Production Capacity . This subcomponent will fund a drilling campaign of up to eight (8) standard-sized deep wells to enable the expansion of the Chinameca geothermal field. The wells will be used to confirm the extent of the geothermal reservoir and increase reinjection capacity. Five (5) of the wells are intended to confirm the extent of the production zones and increase steam production, while the remaining three (3) are for drilling the discharge zone of the geothermal system for reinjection purposes.
Subcomponent 1.2. Resource Assessments and Feasibility Study. This subcomponent will cover the preparation of the resource assessment and feasibility study for phase two, which involves the construction of the geothermal power plant and its associated facilities to be developed by LaGeo in the Chinameca field, within the framework of this project. A geothermal company will be contracted to conduct an independent review and evaluation of the drilling results, prepare an updated geothermal resource assessment, and carry out a feasibility study once a suitable number of production wells (2-3 wells) have been drilled within the framework of the project. This will provide information for the design of the geothermal power plant described in Component 2. At the end of the drilling campaign, using the results from all drilled wells, an updated resource assessment and feasibility study will be conducted to evaluate the technical and financial viability of expanding geothermal power generation in the Chinameca field.
Component 2: Investment in Geothermal Power Generation Capacity . This component will finance the construction of a new geothermal power plant in the Chinameca geothermal field with an estimated capacity of 20-25 MW, including steam separation equipment, the construction of conveyance systems, and connection to the electricity grid. This plant will utilize the new steam production obtained from the wells drilled under Component 1. This new plant will be located in the area adjacent to the plant that will be built during the first phase of field development by a private contractor under a contract with LaGeo. LaGeo will construct the plant through an Engineering-Procurement-Construction (EPC) contract, supervised by LaGeo's technical team. The construction of the separation systems and the conveyance system will be partially financed with counterpart funds from LaGeo. The same electrical substation and transmission network built by LaGeo will be used to connect the geothermal power plant for this project. Steam production will be supplied and managed by LaGeo, to ensure the sustainable use of resources.
Component 3 Social, Environmental, and Center of Excellence Programs: This component will support the implementation of social programs and investments to create local economic opportunities in communities near the project, environmental mitigation plans, and studies to support the creation of a geothermal center of excellence. The component will finance both studies and a processing facility that will allow the use of residual geothermal heat for agribusiness or other types of productive economic activities so that local communities can benefit from geothermal energy.
It will also support compliance with the mitigation and environmental and social management measures outlined in the Environmental and Social Impact Assessments (ESIAs), as well as support management plans, with the aim of meeting the World Bank's Environmental and Social Framework and national environmental permitting requirements. Additionally, the component will finance the studies necessary for establishing the Geothermal Center of Excellence. The capacity building and technical support provided under this component will have a gender focus, taking into account the needs of women farmers and entrepreneurs in the area, to help reduce gender gaps. To empower women and support the creation of new employment opportunities, the project aims to ensure that at least 25 percent of the beneficiaries are women.
Subcomponent 3.1 Productive Uses of Residual Geothermal Heat : This subcomponent will finance activities that facilitate the use of residual geothermal heat by local communities for productive initiatives. To achieve this objective, the subcomponent would finance: (i) A market assessment and feasibility study for potential direct use applications of geothermal resources in the Chinameca area, including identifying opportunities that could create jobs for women entrepreneurs or increase women's agricultural productivity; (ii) promotion and outreach activities to raise awareness of the potential applications of geothermal heat and training programs to develop the capacity of women and men in the project area, (iii) Environmental and Social Impact Assessment (ESIA) for a production and/or facility connected to the geothermal power plant and prepare and implement an Environmental and Social Management Program (ESMP) for the environmental and social risks and impacts associated with the productive uses of residual geothermal heat, (iv) the construction of a production and/or processing center connected to the power plant so that the local community can benefit from the residual geothermal heat at the output of the energy generation cycle, and increase the value of its production; and (v) training and technical assistance with the aim of increasing the sustainable productivity of the land through climate-smart agriculture (CSA) soil conservation practices.
project Id: P506109
procurement Method: N/a
submission Deadline Date/time:
language of Notice: Spanish; Castilian |