Public procurement notice: Contract Award Notice
Published: 2019-09-30
Buyer: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Country: DE
Contract type: Services
Procedure: Open procedure
CPV classification: 75211200
Estimated value: 747984 EUR
Award criteria: The most economic tender

Technical requirements: 81241580-Access to Finance for Up-Scaling Renewable Energy and Energy Efficiency in Buildings and Industries in Nigeria
The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in collaboration with the Federal Ministry of Power, Works and Housing is implementing the Nigerian Energy Support Programme, aimed at enabling and fostering investments in the market for renewable energy (RE) and energy efficiency (EE), and improving access to electricity in Nigeria.
In Nigeria, the challenge to cope with high amounts and double-digits interest rates on credit facilities needed for up-front investments in EE and RE are enormous. These challenges clearly illustrate that tailor-made financing mechanisms are paramount for unlocking investments in EE and RE in Nigeria.
The assignment will therefore be implemented over a period of 568 expert days, with effect from the date the contract is signed until 30.11.2020.
The Nigerian Energy Support Programme (NESP) aims at enabling and fostering investments in the domestic market for renewable energy and energy efficiency, and improving access to electricity in Nigeria. The programme is co-funded by the European Union and the German Ministry for Economic Cooperation and Development (BMZ), and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in collaboration with the Federal Ministry of Power, Works and Housing (FMPWH).
Implementation of energy efficiency measures and renewable energy systems in buildings and industries require high upfront investments. In Nigeria, the challenge to cope with capital investments needed up-front in energy efficiency and renewable energy are enormous: Commercial debt finance in Nigeria comes with high double-digit interest rates. Concessional finance, on the other hand, is often denominated in hard currency, thus increasing foreign exchange risks of local project developers.
These challenges clearly illustrate that tailor-made financing mechanisms are paramount in order to unlock investments in energy efficiency and renewable energy in Nigeria.
During the first phase, NESP supported Nigerian Stakeholders to develop and adopt regulatory frameworks that promote the adoption of energy efficiency and renewable energy in industries and buildings.
Now, in the second phase, NESP is looking for a multi-disciplinary team of international consultants who will support the FMPWH, Federal Ministry of Industry, Trade and Investment, Federal Ministry of Finance, Financial Institutions, and Private Sector Stakeholders in the development of financing mechanisms for renewable energy and energy efficiency projects, specifically targeting the building and industrial sectors. The activities must support market development through (1) creating conducive framework conditions and (2) de-risking strategies.
— survey of existing public and private financing institutions and schemes in developing countries and emerging economies specifically in the area of energy efficiency and renewable energy in building and industries,
— developing financing schemes for renewable energy and energy efficiency projects in buildings and industries,
— developing mechanisms on how to ensure de-risking at project level, and to mitigate risk at country level.
Work package 4: training support to financial institutions in building up new business lines for financing renewable energy and energy efficiency projects, and to make use of internationally-provided climate finance instruments
Work package 5: training support to RE and EE developers/consultants on developing projects fit for funding under the developed financing schemes.
A Technical Assistance Facility would be created and developers would be invited to submit their projects. Each developer would then be entitled to some days of support from the consultants to work on financial models for specific RE and EE projects. Additionally, the same technical facility could as well match-make developers and financiers — e.g. through workshops or an online market place.


Winner: Castalia LLC
Award value: 747984
Number of bids: 5