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WELCOMES YOU FOR Pre-BID Meeting ON Agricultural Demand Side Management - RFP 22nd January 2009

2. Agenda. BESCOM's Approach

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WELCOMES YOU FOR Pre-BID Meeting ON Agricultural Demand Side Management - RFP 22nd January 2009

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    1. 1 WELCOMES YOU FOR Pre-BID Meeting ON Agricultural Demand Side Management - RFP 22nd January 2009

    2. 2

    3. 3 Contents of the RFP Volume –I RFP Document Draft Agreement between BESCOM and ESCO Draft Agreement between ESCO and Farmer Volume-II (on CD) Annex. A to H- regarding site study about feeders, land, irrigation, pump etc carried out by various agencies.

    4. 4 Contents of the RFP – Volume-II (on CD) Annexure A: Concept Note on Agricultural DSM (June, 2007) Annexure B: Financing Agricultural DSM Projects. (Aug, 2008) Annexure C: Map of Feeders 12 & 13 in Doddaballapura sub-division complied under the India DRUM Project (2006) Annexure D: Land use maps for Feeders 12 & 13 in Doddaballapura sub-division (July 2008) Annexure E: Pumpset Survey details for Feeders 12 & 13 in Doddaballapura sub-division (Updated 2008) Annexure F: Water Balance Study in parts of Doddaballapura Taluk, Bangalore Rural, Karnataka. (October 2008) Annexure G: Detailed Project Report: Irrigation Efficiency Improvements in the BESCOM Doddaballapur Subdivision Feeder Lines DF 12 and 13 Service Area. (2006) Annexure H: Farmers’ Education in Doddabballapura (2004-2008)

    5. 5 Salient Features of RFP

    6. 6 BESCOM’s Approach - Elements of the Deal BESCOM has obtained in principle agreement from KERC & the Government of Karnataka to proceed on a pilot program BESCOM intends to enter in agreement with an ESCO The preconditions are set at Doddaballapur HVDS installed. One Transformer for one pump in most cases. Metering on transformer is in progress & will be completed by 15th February 2009 NGO working with farmers for four years Detailed data available on pumps and pump efficiency ESCO implements efficient pumps as part of an Ag DSM program ESCO finances the investment required Provides ongoing O&M support to farmers and establishes a site office ESCO recoups investments through sharing of the energy served

    7. 7 Key Features of the RFP Default Escrow to be set up and maintained by BESCOM as payment security mechanism Carbon Credit – (that the ESCO is required to apply and register) ESCO shall be the sole beneficiary of the revenues Joint Measurement and Verification (M&V) protocol to be set up by BESCOM and ESCO

    8. 8 Obligations of BESCOM BESCOM shall be responsible for operation, maintenance and repair/replacement of power supply system to New High Efficiency Pump (NHEP). BESCOM had implemented HVDS with generally one transformer for one pump. Each pump to have a separate meter physically located on the Distribution Transformer (DT). BESCOM has installed switch capacitors on 11 KV systems. BESCOM will make payments on a monthly basis to the ESCO based on the share of energy savings derived from the competitive bidding process. Seek GOK support for implementation of proposed project; keep KERC informed and seek necessary KERC approvals, if any. BESCOM will be obliged to provide the necessary hours of supply to the Feeders as per policy of GOK.

    9. 9 Obligations of ESCO ESCO shall also be responsible for financing, implementing and operating the project. ESCO will be responsible for planning the New High Efficiency Pump (NHEP) procurement, installation, maintenance and repair/replacement during the contract. The ESCO will be responsible for dismantling the old pumps and ensuring its disposal in a manner that it can not be used as irrigation pumpset anywhere in India. The ESCO will be required to maintain a log of easily visible serial numbers and markings in the casting on the products. (For purposes of record and scrutiny against tampering of the IP set.)

    10. 10 Joint Obligations of BESCOM & ESCO Agreements to be signed between ESCO & BESCOM. BESCOM to facilitate signing of agreement between ESCO & farmers. ESCO, jointly with BESCOM, to implement a monitoring and verification (M&V) protocol for meter reading.

    11. 11 RFP Process

    12. 12 Application – Submission and Evaluation

    13. 13 Submission of Application PART – I Part (A) -- “Technical Bid” (includes Statement of Qualification detailing applicant’s technical competence) One original and two copies in hardcopy format (plus one electronic copy (DVD/CD) in Portable Document Format (PDF) format, in a separate, sealed package), organized in a manner as specified in the formats Processing Fee (of INR 500 as receipt of purchase from BESCOM to be attached with the submission Or in the event of downloading the document from the website submit a demand draft/pay order drawn on a scheduled bank, in favor of the “Bangalore Electricity Supply Company Limited”, payable at Bangalore.) Placed in a separate envelope clearly marked as “Processing Fee” on it, along with the Technical Bid.

    14. 14 (Cont.) Submission of Application PART –II Part (B) -- “Financial Bid” (includes: (a) Energy saving from the project; (b) The proportion in which saved energy at shall be shared with BESCOM One original and two copies in the formats should be delivered in a sealed envelope

    15. 15 Technical Bid Statement of Qualifications : Company Qualifications – corporate bona fides of ESCOs and their capability including - Registration Statement; description of its line(s) of business including a profile of the financial and operating highlights of each, and the years of operation in India. Proposed Approach – ESCO’s proposed approach; including its proposed project organization structure and team; use of innovative concepts, methodologies and/or technologies. It is preferred that the NHEP be the star-rated by Bureau of Energy Efficiency (BEE) or similar organization. Relevant Prior Experience – with other projects with characteristics that have a bearing on the proposed Ag DSM pilot project Proposed Changes – any additions or changes that the ESCO would like to forward.

    16. 16

    17. 17

    18. 18 Establishing “Responsiveness” of Applications Bid “Non-Responsive” if it is not -- Received by the due date and time specified in the RFP Includes insufficient information for it to be evaluated and/ or it does not comply with the specified formats Is not signed and / or sealed in the manner and to the extent indicated in this RFP Is not accompanied by the required processing fee. In case of being a response by a ‘Consortium’, the submission does not include a Memorandum of Understanding (MoU) / Agreement prepared on a stamp paper of requisite value with the other members of the Consortium clearly indicating the relationship with the Prime Bidder

    19. 19 Qualifying Requirements of the Bidders

    20. 20 Qualifying Requirement of Bidders Leading Irrigation Pump-set (IP Set) manufacturers/ suppliers, leading consultancy agencies, Energy Service Companies (ESCOs) and other similar businesses and entrepreneurs or consortium of ESCOS are invited to bid. Qualify criterion are in next slides

    21. 21 Qualifying Requirement of Bidders Criteria for ESCOs / Consortium of ESCOs include the following: Demonstrated project management experience Relevant experience in the electricity sector and/or in Ag DSM Relevant experience in energy auditing, DSM or performance contracting Recent representative experience on projects with similar technical and management characteristics Annual turnover criterion: For Pure-ESCO (Those companies who or their subsidiary/sister/group companies have no other business except energy services) – Rs. 50 Lakhs in each of the last three financial years. For Companies other than the Pure ESCO– Rs. 3 Crores in each of the last three financial years. In the event of bid by a consortium, this criterion is applicable for the Prime bidder only.

    22. 22 (Cont.) Qualifying Requirement of Bidders Criteria for ESCOs / Consortium of ESCOs include the following: Full time employees on permanent payroll: For Pure-ESCO (Those companies who or their subsidiary/ sister/group companies have no other business except ESCO services) - 10 employees. For Companies other than the Pure ESCO - 25 employees In the event of bid by a consortium, this criterion is applicable for the Prime bidder only. Profitable results for the last three (3) financial years. For a bid by a consortium, this criterion is applicable for the Prime bidder only.

    23. 23 RFP Bid Process and Award

    24. 24 RFP: Bid Process and Award of Contract Bidder to pay a non-refundable Processing Fee of Rs. 500. As receipt of purchase from BESCOM to be attached with the submission Or in the event of downloading the document from the website submit a demand draft/pay order drawn on a scheduled bank, in favor of the “Bangalore Electricity Supply Company Limited”, payable at Bangalore.

    25. 25 Proposed Calendar for the initiative

    26. 26 Proposed Calendar

    27. 27 You all are invited tomorrow for site visit at DODDABALLAPUR AEE Office, IB Circle near D-Cross S/s at 10:30 AM

    28. 28 Nodal Team – Key Personnel

    29. 29 Bangalore Electricity Supply Company (BESCOM)

    30. 30 WENEXA Team

    31. 31 Queries from Bidders

    32. 32 Queries from Bidders

    33. 33 Queries from Bidders

    34. 34 Questions / Comments / Clarifications

    35. 35 Thank You

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