Introduction

Korporata Elektroenergjetike Shqiptare (“KESH” or the “Client”) of the Republic of Albania, is currently developing the project Temporary thermal electricity generation, in Vlora region.

The temporary thermal asset consist in two power barges with the total installed capacity of 110 MW and uses HFO as the main combustible for power generation.

KESH is interested in collecting the possible expressions of interest form market participant and also collecting possible necessary queries from interested parties for the supply of a quantity of HFO for the power barges, for a duration of 2 (two) years.  

Background on the Project and KESH

KESH is an Albanian state-owned enterprise, organized as a joint stock company registered in Albania which conducts activities in generation and trading of electricity in Albania and ancillary services in the region. KESH owns a network of hydroelectric power plants in the Drini Cascade, with a total installed capacity of 1,350 MW and an average generation of electricity of 4 TWh per annum.

KESH has contracted through a lease and O&M agreement, a temporary thermal generation asset, with an installed capacity of 110 MW located in the area of Vlora bay.

The Project is envisaged to contribute to the total installed capacity available to KESH sh.a., diversify company generation portfolio, facilitate management of the Drini Cascade by maximizing energy output for hydropower plants and reduce the hydrological risk.

The Client is pleased to invite expressions of interest (“EoI”) in respect of the Supply of HFO for the generation of electricity by the power barges for which KESH sh.a., will conduct a competitive process based on Albanian Public Procurement Law.

This call for EoI aims to collect form the market, the expression of interest by any party to participate in the future competitive process and also to collect any preliminary requirement, questions or queries from interested parties that may facilitate the competitive process. This expression of interest is not issued for purposes of shortlisting the interested parties but only for market scouting and queries from any interested parties. A request for proposals (“RFP”) will be issued to all interested parties as per Albanian Public Procurement law

Definitions and Interpretation

In this call for EoI, terms and expressions shall have the meaning attributed to them below, unless otherwise defined above or the context requires otherwise.

ApplicantMeans the entity applying to this call for expressions of interest.
Business DayMeans a day during which KESH sh.a. office and banks are open for general business in Albania.
DeadlineMeans 16 March 2023.
Interested  partiesMeans all the interested parties that exercise their activity in the supply of Oil products

Interested parties

The Client requires from this call for Expression of Interest, to collect the expected interest of traders for the supply of Oil for energy generation.

The client also expects from this call for EoI to gather from the interested parties, all possible queries or requests that may help the realisation of the future competitive tender process.

The Client will not conduct through this call for EoI any selection or prequalification process of the applicant that have expressed their interest.

Submission of Expression of Interest

Interested parties in response to this call should express their interest for future supply of the required oil and their queries by no later than 16 March  2023, sending by email a scanned copy of their expressed interest and queries in PDF to the below email:

The EoI response should include, as a minimum, the following information:

  • Name of the interested company.
  • Legal status of company (including jurisdiction of its incorporation and whether or not listed on a stock exchange).
  • Name and contact details (postal address, telephone number and email address) for the appropriate point of contact to whom all future correspondence on this process will be addressed.
  • Details of company experience in performing a comparable role on similar transactions.
  • Queries if they have.
  • Evidence of the position and rights of the representative of the interested company that has signed the EoI, if it may represent the company for such EoI.
  • Any other documents or reference foreseen as necessary from the applicant.

Response to queries

KESH sh.a., will respond to the queries of the interested parties within 3 (three) days.

All the queries and answers will be published on KESH sh.a., webpage www.www.kesh.al, without adding any information regarding the interested parties.

The Expressions of interest will be collected by KESH as a market studying and evaluation process to understand the interest of third parties.

No shortlisting, prequalification or any evaluation of the interested parties will be executed during this process of EoI.

A tender process will be organised and published as per Albanian Public Procurement law, after the collection of EoI. The tender process will be open to all the interested parties that have been or not, subject to  this EoI process.

In the link below the interested parties can find the provisions of Albanian Public Procurement Law.
https://www.app.gov.al/GetData/DownloadDoc?documentId=874a7502-bdd3-4e1f-9962-64c64340682c.

Clarification over the required product

KESH sh.a. is interested for the supplying of Heavy Fuel Oil, specifically Very Low Sulphur Fuel Oil, with 0.5% content of Sulphur, RME 180 cts, as per ISO 8217n, for a period of at maximum 2 (two) years. The product will be delivered to KESH in the storage facility that will be specified in the tender documents..

The supply of VLSFO on site will be on call from the supplied company. The minimal amount to be delivered from the contract will be 100,000 (one hundred thousand) Ton of VLSFO per year with a multiple delivery of the maximum of 25,000 thousand MT of VLSFO, within intervals of 60-90 Days. The supplying contract will be a CIF Contract, Albania.

KESH is also interested for VLSFO to be delivered to the generation asset storage on a daily basis for the period between May to July or August, for a certain quantity to be appointed by the supplied company.

All the specification over the product, quantities, price formation and other specification will be specified in the tender process that will be launched following this call for Expression of Interest.

Publishing of Information of the Applicants

KESH will not publish, for the sake of the tender process any information of parties that have expressed their interest through this call for EoI.

Notwithstanding, the Client is a state-owned enterprise and performs its activities based on Albanian Law provision regarding The Right for Information, by responding to this call for EoI all the Applicants, should consider that after the publication of the tender process results, all the data and information collected through this process can be processed as per Albanian Law, including the right for Information

https://www.idp.al/wp-content/uploads/2016/11/LAW_119-2014.pdf.

QuestionAnswers
How will the evaluation of the price of this product be carried out?  Comparative price evaluation of the product will be based on the mark-up value applied upon an international market price reference .
exempt from taxes for the supply of this type of product?KESH will apply for reimbursement of Excise Duty according to the provisions of Law No. 61/2012
How and where will this product be delivered? Are land deposits marine deposits?It is forseen that the supply will be made in two forms, at the place of use and in the deposits that KESH sh.a. will take into use. Detailed clarifications will be provided in the procurement documentation to be published
Is there special equipment that is needed to carry out the supply by truck to the storage?The specifications of the equipment for the connection to the deposit point will be presented in the tender documents that will be carried out.
What is the estimated time frame for payment of each supply?Payment terms will be announced in the tender documents to be published
1.1   Before the tender is issued, is it possible to create a platform to clear KESH from the KYC perspective as per international compliance guidelines?  Main information required will be: 
o   Full Legal Name with certificate of incorporation, article of incorporation, Shareholding structuresKorporata Elektroenergjitike Shqiptare sh.a. (KESH sh.a.)  Albanian Power Corporation jsc. (APC jsc.), Company ID number (NUIS) J61817005F. Please check in the National Business Center  https://qkb.gov.al/search/search-in-trade-register/search-for-subject/ 
Ultimate beneficial owner justified by relevant official supportive documentationAPC jsc, is a state owned company, with 100% of shares wned by the Republic of Albania represented by the Ministry of Infrastructure and energy (MIE).
Financial information including revenue, cost of sales, profit, current asset vs current liabilities, if available latest financial statements of KESHFinancial information may be served through a detailed inquiry form or KYC
Since this process usually takes time, we would request KESH to give the possibility to initiate it before the tender.KESH sh.a. agrees to provide all the necessary information, to all the parties interested in conducting a KYC process prior to tender procedure. The interested parties should contact KESh through email address info@www.kesh.al, by providing all the requests, forms and specificified documentation needed for the KYC clearance. Willingly, KESH sh.a. will start the tender procedure after any requested KYC clearance is conducted.
1.1   What kind of payment guarantee is KESH planning to issue in favour of the future potential suppliers to ensure payments of VLSFO?Payment guarantees will be appointed and specified in the tender documents
1.1   Can KESH issue Letter of Credit from international banks?KESH can issue LC only from local Banks. Please note that local banks in Albania may be affiliated or branches of international banks.
What currency will be used for payment?Currency will be US Dollars.
1.1   What payment terms is KESH looking for the supply of VLSFO?Payment terms  will be appointed and specified in the tender documents
1.1   Can we get the list of local and/or international banks working with Kesh?In this link you can find local banks which collaborate with KESH. https://www.bankofalbania.org/Supervision/Licensed_institutions/
The call for expression of interest refer to Heavy Fuel Oil and Very Low Sulfur Fuel Oil, which are two different products. We assumed Heavy Fuel Oil was used as generic term and Very Low Sulphur Fuel Oil is actually required by KESH. Could you please confirm our understanding?The required Oil to be supplied is Heavy Fuel Oil, with 0.5% content of Sulphur, RME 180 cts, as per ISO 8217 reference.
1.1   What are the possible delivery terms?Delivery terms to be appointed in the tender documents. Please refer to the fix and variable quantity as described in the Call for EoI.
What are the receiving facilities considered by KESH for this tender?As per Call for EoI, KESH requires two types of supply, one on site on daily basis and one on the storage facility as will be specified in the tender documents.
 What are the port restrictions for the deliveries of VLSFO?Port restriction will be announced in the tender document that will be published
What annual quantities and parcel size will be requiredAnnual quantities and parcel size will be appointed in the tender document.

See PDF VERSION OF QUERSTIONS-ANSWERS FILE

Download the document – REQUEST FOR EXPRESSIONS OF INTEREST FOR THE SUPPLY OF HEAVY FUEL OIL TO BE USED FOR ELECTRIITY GENERATION