Completion of AIP Activities in Lesotho, Mozambique and Namibia

The AIP provides capacity-building and late-stage transactiona l support services on clean and conventional energy projects to regional economic communities, host country governments, and private project developers in Sub-Saharan Africa. In Southern Africa, AIP has supported the Governments of Lesotho, Mozambique and Namibia on the procurement of clean energy to diversify their energy supply and improve energy security. The AIP task order consists of four activities. The purpose of the follow-on contract is to provide continued support to host-country counterparts for the completion of those activities. Specifically, Nexant will provide : (1) transaction advisory services for the Inhambane Wind Project in Mozambique; (2) transaction advisory services for the Letseng Wind Project in Lesotho; (3) application of the Renewable Energy Feed-in-Tariff to a model project in Namibia; and (4) application of the Renewable Energy Feed-in-Tariff to a model project in Mozambique. Status of each is discussed below. A. Inhambape Wind Project in Mozambique: Under the AIP task order, Nexant provided advisory services to Mozambique's Ministry of Energy (MOE) for conducting an internationally competitive tender to qualify, select and award the exclusive rights to a private sector company to develop, own and operate the country's first wind project, the 30 MW lnhambane Wind Project. Between 2011 and September 2014, Nexant completed advisory support for the stages of project implementation from issuance of the RFP through awarding the project to the winning bidder and negotiating the Cooperation Agreement (CA) between MOE and the developer. As the MOE did not have sufficient wind measurements necessary to meet bank-financing requirements, it agreed to allow the selected project developer, Tecneira, 12 months after the award date to conduct resource measurements. It is estimated such measurements will be completed in December 2014. The fol low-on contract will provide transaction advisory services to the MOE to complete negotiations with theproject developer, bringing the project to successful financial close. B. Letseng Wind Project in Lesotho: Under the AIP task order, Nexant provided advisory services to the Lesotho Electricity Corporation (LEC) in the negotiations between a private developer, PowerNet, and the Government of Lesotho for the 35 MW Letseng Wind Project. Since an Implementation Agreement was signed between PowerNet and the Government of Lesotho in October 2010, Nexant has advised LEC on the structuring the project, culminating in LEC signing Power Purchase Agreement (PPA) and Transmission Connection Agreement (TCA) term sheets. In2012, LEC gave the Developer a deadline of September 20, 2013 to reach financial close for the project. However, PowerNet was bought out by Aurecon and failed to meet the September 2013 financial close deadline. In February 2014, unclear about Aurecon's commitment to the project, LEC initiated discussions with USAID about options for moving forward, including potentially conducting a competitive tender for a new developer. However, in July 2014, after direct discussions with PowerNet/Aurecon in which they affirmed their commitment to the project, LEC has decided to continue negotiations with PowerNet/Aurecon. The follow-on contract willprovide transaction advisory services to the LEC to complete negotiations on key agreements and project structure with the developer in order, bringing the project to successful financial close. C. Renewable Energy Feed-in-Tariff (REFIT) in Namibia: Under the AIP task order, Nexant provided Namibia's Electricity Control Board (ECB) technical support to design a Renewable Energy Feed-in-Tariff (REFIT) program. Nexant completed the design of the program in July 2014. However, the Namibian Cabinet needs up to six months to promulgate the program. While the program is being reviewed, agencies that will be responsible for implementing the REFIT need transaction advisory assistance to build their capacity to process projects under the program. The follow-on contract will provide transacaon advisory services to the associated agencies in Namibia,Electricity Control Board (ECB) and the utility, NamPower, for each to process a modelproject under the REFIT program. D. Renewable Energy Feed-in-Tariff (REFIT) in Mozambique: Under the AIP task order, Nexant provided Mozambique's Ministry of Energy (MOE) technical and capacity building support to design and implement a Renewable Energy Feed-in-Tariff (REFIT) program. Nexant completed the design of the program, and the MOE submitted it to the Cabinet for adoption in 2013. However, Cabinet approval only took place in September 2014. As a result, implementation of the REFIT has shifted to post- September 2014. To ensure associated agencies in Mozambique - the Ministry of Energy (MOE) and the utility, Electricidade de Mofambique (EdM) -have the capacity to implement the REFIT, the follow-on contract will provide transaction advisory services to these institutions to assist them inprocessing a model project under the REFIT program. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION: AIDAR 706.302-70(b)(5) allows for an exception to full and open competition "when it would impair or otherwise have an adverse effect on programs conducted for thepurposes offoreign aid." This includes "an awardfor the continued provision of highly specialized services when award to another resource would result in substantial additional costs to the government or would result in unacceptable delays."