Karun 2

 Iran Water & Power Resources Development Company

International invitation for Pre-qualification of investors as to 

"Karun II Dam & H.P.P."(Third Announcement) 

Iran Water & Power Resources Development Co. (IWPC) intends to construct the Karun II Dam and Hydropower Plant Project through a Public-Private Partnership (PPP) on Build, Operate and Transfer (BOT) basis.  
To this end, interested applicants (legal entities, investors, banks, international financial institutions, etc.) are hereby invited to receive modification the pre-qualification documents no more than seven days after the date of this announcement and then submit their request in writing along with  the receipt of depositing 50,000,000 I.R.Rials (Fifty Million I.R.Rials) in account shaba no. IR900100004101051130231312, At the central Bank,Called "Paying out of income from state-owned companies of  Iran Water and Power Resources Development Co."(IWPCO), addressed No. 3, Bidar St., Elahiyeh Ave., Modarress Highway, Tehran Iran, Tel: +9821-27823009 and +9821-27823014, Fax: +9821-27823065.  
The Karun II Dam and Hydropower Plant Project is a 130 meter high double curvature concrete dam comprising, a main powerhouse with the installation capacity of 648 MW and a small environmental powerhouse with the installation capacity of 21 MW 

Iran Water & Power Resources Development Co. (IWPC), the “Investee”, engages in the development of Dams & Hydropower Plant Projects of Iran. This company is an investee with a mission and determined to have developed, operated and maintained Karun II Dam & Hydropower Plant Project (the “Project”) through a Public-Private Partnership (the “PPP”) on Build, Operate and Transfer (the “BOT”) basis. To this end, the Investee tends to select a qualified legal entity to which the Project is awarded. For more information about the Project, visit the IWPC’s Website at en.iwpco.ir/karun2.
The Investee is going to select the qualified applicants (investors) by having a prequalification assessment and drawing up a short list through a qualification process and as per the tendering process.
The selected applicant (investor), who can be a company registered under laws of the Islamic Republic of Iran or a company obliged to the registration prior to the enforcement of the Power Purchase Agreement (PPA), shall take responsibility for designing, engineering, financing, supporting, constructing, operating and maintaining the project in accordance with the long-term power purchase agreement concluded in the framework presented by the investee.

Scope of Work:

By and Large, the scope of work consists of financing, building, operating and transferring Karun 2 Dam & HPP which has the following specifications:
Karun II Dam & HPP Project will be constructed on the River Karun in between Karun III and Karun I (Shahid Abbasspour) Dams. It comprises a 130 m high double curvature concrete dam with the storage volume of 278 million cubic meters and a main powerhouse with the installation capacity of 648 MW (4 units). The main objective of this project is to make maximum use of Karun III Dam & HPP outflow in generating hydropower.
On the basis of the basic bill of quantities of 2017 pertaining to the construction of the project, the initial investment estimate is about 18000 billion Rials (451 842 000 Euros) that 25% is the minimum cash amount to be invested by the investor. This is a rough approximation and would not hold the investee responsible whatsoever. However, the real costs shall be estimated by the applicants at the financial proposal stage.

A Brief Description on the Qualification Process:

The process in which the applicant is qualified for preparing the short list is called the Qualification Process that is divided into 1- financial qualification 2- technical qualification.
Before preparing the application, the applicant shall pay totally 50,000,000 Rials (fifty million Rials) to the investee as the price for purchasing the RFQ documents. At the end of the qualification stage, the investee expects to announce a short list regarding the qualified investors taking into consideration the qualification who can take part in the tender (presentation of proposal).
Stage 1 (financial qualification) includes a process in which the investors (individuals/ consortiums), who have prepared their application based on this RFQ, are qualified from financial point of view.
Stage 2 (technical qualification) includes a process in which the investors selected after the financial qualification stage, who have prepared their application based on this RFQ, are qualified from technical point of view regarding both the construction and operation.

Qualification Schedule:

Submission Procedure of RFQ Documents

2-1- Former applicants: The applicants who have already purchased/ completed the documents
2-1-1- The applicants, who have already presented the documents, are not required to resubmit them. Nevertheless, it is obvious that they can submit any supplementary document, if any.
2-1-2- The applicants, who have already purchased the documents, are not required to repay for them. But they are required to get the related amendment published by the tenderer, and sign/ stamp it by their authorized representative (company or consortium members), and send it back to the investee (Karun 2 Dam & HPP Project Office) through a formal letter.
2-2- New applicants: The applicants who has recently intended to purchase and submit the RFQ documents:
2-2-1- The new applicants shall observe all terms and conditions stated in these documents (except for the provisions presented in items 2-1-1 and 2-1-2 corresponding to the applicants who have already submitted the documents to the investee (Karun 2 Dam & HPP Project Office).
After qualifying the requests, the investee would announce the short list of the applicants qualified for presenting their proposal. At the same time, the investee would also inform the applicants not short listed.
Only those applicants who are known as qualified with the minimum score of the criteria stated in Item 2-2-3 shall be qualified as per the criteria stated in Item 3. The request of companies/ consortiums not complying with these criteria would be rejected.

Qualification process in terms of priority is as following:

1. The applicant (company or consortium) shall necessarily be a legal person who has minimum the conditions stated in Item 2-2-3. Provided that the documents presented by the applicant are not approved by the investee, they would be omitted at this stage.
2. If the applicant fulfills the conditions of the first stage (the above item), he will enter the scoring stage (according to item 4-5).

Note: In case the applicant is a consortium, the aggregate fixed assets, net income and bank credit of those numbers of members, who are solely financially entitled, shall meet the minimum requirements specified in paragraph (a) of item 3-2-2.

Applicants Qualification:

3-2-2- The applicant who needs to be qualified in the qualitative assessment process, and ned to finally be "short listed" shall have the financial and technical capabilities specified below at the same time:

A) Financial Capability

1. The applicant need to have 2 (two) out of the 3 (three) following conditions so as indicate his "financial capability":
2. The minimum net value of the properties of the applicant at the end of the past financial year shall be 3600 billion I.R.Rials (Equivalence 90 369 000 Euros). {This amount shall be 20% (twenty percent) of the project initial cost estimate.
3. The applicant shall have a credit certified by the central credit office of a credible bank equal to minimum 6300 billion I.R.Rials (Equivalence 158 145 000 Euros). {This amount shall be 35% (thirty five percent) of the project initial cost estimate.
4. The applicant shall have the highest annual net income in one of the past 5 financial year equal to minimum 600 billion I.R.Rials (Equivalence 15 062 000 Euros). {This amount shall be 3% (three percent) of the project initial cost estimate.

{The exchange rate is based on the rate announced by the Central Bank of the Islamic Republic of Iran (C.B.I.) on Oct. 2/ 017 that is equal to 39.837 I.R.Rials}
In case the applicant is a consortium, the consortium members shall meet the aforementioned requirements on the condition that the share of each one not to be less than 26% (twenty six percent).
Note 1: If the applicant (the company or consortium) has at least 2 (two) out of the 3 (three) financial capabilities conditions, he will enter the financial scoring stage.
Note 2: If the applicant has at least 2 (two) out of the 3 (three) financial capabilities conditions, and receives a portion of the third stage scores according to the documents, this score will be added to the aggregate scores of the applicant in the financial part.
Note 3: The minimum score that applicants receive from the financial part shall not be less than 65% (sixty five percent) out of the 100% score of the financial capabilities part (65% minimum score, before applying and multiplying by 70% of Financial capabilities part)
B) Technical Capability:
In order to show the technical capacities and experiences "Technical Capability", the applicant shall have minimum one of the following conditions during the past 10 financial year prior to the submission deadline of the request.
1- Construction experience: The applicant shall have minimum 5 years of experience pertaining to the design and construction of the qualified hydropower or other projects to be evaluated according to the sub-item 3-2-1.
Note: The applicant shall have grade 1 certificate of design and build on water fields (dam construction branch) or grade 1 of the construction contractor on water fields (dam construction branch) together with a consultant with grade 1 in dam construction (as a consultant assigned to render consultancy services in the technical office). In case the applicant is a consortium, the score of this item for only the consortium members would be considered minimum 26%.
Or
2- Experience in the operation and maintenance: The applicant shall have minimum 5 years of experience in the operation and maintenance of similar projects evaluated as per what described in sub-item 3-2-1.
Note 1: In case the applicant is a consortium, he can appoint an experienced member with the operation and maintenance experience in similar projects with the score of minimum 10%.
Note 2: The applicant with the "operation and maintenance" experience shall have the qualification certificate approved by the investee.
Or
3- Management experience: The applicant shall have minimum 5 years of experience in the management of the financing projects with Public-Private Partnership (PPP) and similar ones as per what described in sub-item 3-2-3.
Note1: In case the applicant is a consortium, the score of this item for only the consortium leader would be considered minimum 26%.
Note 2: The minimum score that applicants receive from the technical capabilities part shall not necessarily be less than 50% (fifty percent) out of the 100% scores of the technical capabilities part (minimum score of 50%, before applying and multiplying by 30% score of the technical capabilities part)

Qualification Criterion and Parameters:

The applicant competency and capability are evaluated as following:

1. Financial Capability (maximum 70%)
2. Technical Capability (maximum 30%)

The credit of the qualified applicants shall be evaluated taking into consideration the total sum of their technical and financial scores. Then, the applicants shall be ranked according to their total score to prepare the short list of the qualified applicants for presenting the proposals. The applicants can be short listed if they obtained minimum 60% (sixty percent) of the final score.
The investee is allowed to select and invite maximum 6 applicants with the highest scores for participating in tender. However, the investee has the right to increase the number of the short listed applicants.

Investment Attraction for Karun 2 Dam and HPP Project:

1. Khuzestan Province is one of the main water right users of the river Karun. Besides, three hydropower plant projects with the total power generation capacity of 5500 MW are located downstream of Karun 2 Dam and HPP Project. So, water shall regularly be released downstream. Consequently, the project would have the minimum water supply risk.
2. Karun 2 Dam is going to be constructed on the river Karun that is the largest river of Iran.
3. The dam and power plant dam site is accessible easily.
4. The dam site is located in between Shahid Abbasspour (Karun 1) and Karun 3 dams.
5. Karun 4 and Karun 3 dams located upstream of and Karun 2 dam & HPP project provide Karun 2 with regulated water flow.
6. Karun 2 dam & HPP project has the minimum reservoir damage comparing to similar projects. There is no protected region around the reservoir.
7. Different components of Karun 2 dam, HPP, diversion tunnel, headrace tunnels, spillway, access road, etc. have smaller dimensions and higher power generation capacity than the dam projects of Iran with similar power generation capacities.
8. This project comprises a main powerhouse with the installation capacity of 648 MW (four 162 MW units) and a small environmental powerhouse with the installation capacity of 21 MW with total annual power generation of 2144 GWh.
9. It is intended to develop, operate and maintain Karun II Dam & Hydropower Plant Project through a Public-Private Partnership (the “PPP”) on Build, Operate and Transfer (the “BOT”) basis.
10. The Power Purchase Agreement (PPA) is going to be concluded with Tavanir Co.
11. The period foreseen for the project design and constructed in 7 years. The project financial period is 30 years. The guaranteed power purchase period is 20 years. After finishing the guaranteed power purchase period, the investor would be allowed to sell power to the internal consumers either via power market or by the national grid.
12. The BOT contract period including the construction period (7 years) is equal to 37 years which would not be changed by any increase or decrease in the construction period whatsoever.
13. Power purchase guarantee for the total capacity with governmental approval and obligation
14. Project contract permit and the product purchase guarantees to obtain loans from the banks and national development credit
15. Product purchase escalation rate on the basis of the index of the Central Bank of the Islamic Republic of Iran
16. Collaboration in obtaining foreign financing and loans of the development banks such as the World Bank, Islamic Development Bank, ECO Bank and any other international institutes
17. No objection has been obtained from legal authorities regarding some issues as environment, archeology, passive defense, etc.

Introduction and Summery Of Technical Report of Karun II Dam And Hydroelectric Power

1- Site Location and Access Roads
Karun II dam and its powerhouse are located in Khozestan province at Izeh city upstream of Sosan plain. Karun I and Karun III dams are located downstream and upstream of Karun II, respectively. The UTM coordinates of Karun II dam site are (402527, 3537376).
Karun II site and existing access roads in the territory are depicted in Fig. 1. At the present time the access road to the dam site is the existing Izeh-Sosan road. This road consists of 64 km of asphalt pavement road which passes through Sosan plain, Gelal, Bordzar and Galleh villages and followed by the second path which is 5 km long withouth pavement and can be only reached by double gear cars. This road contiues up to the site location (Photograph 2). It has to be born in mind that this part of the road should be widen and repaired in the future for the purpose of utilizing the road as an access road.
Access road study indicates that the best alternative is the same exsiting access road. The existing access road to dam site location is shown in Fig. 2.1. Site Location and Access Roads
Karun II dam and its powerhouse are located in Khozestan province at Izeh city upstream of Sosan plain. Karun I and Karun III dams are located downstream and upstream of Karun II, respectively. The UTM coordinates of Karun II dam site are (402527, 3537376).
Karun II site and existing access roads in the territory are depicted in Fig. 1. At the present time the access road to the dam site is the existing Izeh-Sosan road. This road consists of 64 km of asphalt pavement road which passes through Sosan plain, Gelal, Bordzar and Galleh villages and followed by the second path which is 5 km long withouth pavement and can be only reached by double gear cars. This road contiues up to the site location (Photograph 2). It has to be born in mind that this part of the road should be widen and repaired in the future for the purpose of utilizing the road as an access road.
Access road study indicates that the best alternative is the same exsiting access road. The existing access road to dam site location is shown in Fig. 2.

2- Design Specifications 
Layout plan of Karun II dam and its powerhouse in the reach between Karun I and Karun III is shown in Fig. 3. General specifications of the design are summurized as follows: 

- Hydrology Specifications 

- Reservoir Specifications 

- Reservoir Loss 

Dam Specifications 

- Spillway  

- Diversion System Specifications 

Low Level Outlet Specifications 

- Powerhouse Tunnels and Penstocks Specifications 

-  Main Power Plant Specifications 

Environmental Power Plant Specifications