Attachment_A_Pre-BidConferenceMinutes-2015-11-28.pdf

Pre-Proposal Conference on Kandahar Solar Programme November 23, 2015

Commencement – Alexis McGinness (USAID), Contracting Officer

General Welcome and Opening Remarks

Welcome Address – Ahmad Shah Sahil (DABS), Chief Financial Officer

General thank you and welcome to guests and speakers

Number of participants is a testament to the importance of the project

Introduced Da Afghanistan Breshna Sherkat (DABS) as the power utility of Afghanistan, 100% owned by the Government of Afghanistan, in charge of operating and managing electric power generation, imports, transmission, and distribution throughout Afghanistan on a commercial basis.

Consumer base has increased significantly over the past decade, has resulted in vulnerabilities of DABS

Rate of electrification in Afghanistan is about 33%, electricity is largely from hydro and from neighboring countries, DABS plans to increase it to 65% over the next 5 years, requires additional 2000 MW of power.

Power sector development is supported by the leading multilateral and donor agencies.

Afghanistan currently has two major power grids, North East Power System (NEPS) and South East Power System (SEPS).

DABS has started work to connect the two power girds by constructing 220 KV Arghandi – Ghazni transmission line. Numerous other generation, transmission and distribution projects are in various stages of implementation. Examples include:

o CASA 1000 Project –will improve the power systems of the participating countries by transferring surplus seasonal energy from the Central Asian countries to energy deficit countries in South Asia from May to September.

o Turkmenistan – Afghanistan Interconnector (500/220/110 KV) to facilitate import of additional 300 MW from Turkmenistan.

o Extension of 220 KV Double circuit line from Kunduz to Taluqan.

o Construction of Double Circuit Line from Chimtala to Kabul.

o Shebergan Gas based Power Project.

o Salma Dam Multipurpose Power Project o Kajaki Hydro Power Project Unit 2 (18.5 MW).

Afghanistan has recently initiated a Renewable Power Development Program to develop solar and wind generation. Includes a 1 MW Solar Power Project at Bamiyan and a 10 MW Solar PV Power Project at Kandahar. Developer for this project will be selected through an international competitive bidding process.

This landmark project will be used as a model for future renewable energy projects.

DABS is going through a transformation: capacity building in corporate management, commercialization and IT implementation, using international best practices.

DABS has created an investor friendly environment, and invites international companies to participate in the bid of Kandahar solar power project.

Address – H.E. Ali Ahmad Osmani (MOEW), Minister of Energy and Water

Emphasized the role the private sector can play in the energy development of Afghanistan.

Overall of MOEW goals in the energy sector o Energy sector – sustainable development isn’t a priority in Afghanistan, but is important for the development of the region and for energy security o Increase and improve energy infrastructure, give people access to sustainable power all over the country o Provide power access to all people across the country o Generate electricity from Afghanistan’s own energy resources o With the support of donors and private sector, the energy sector has rapidly developed in the past decade o Still, almost 80 percent of electricity is imported from neighboring countries

Possibilities of energy generation are not limited in Afghanistan, has solar, wind, hydro, gas and other resources to feed the region, encourage industry, and develop the region’s economy o Afghanistan can use its own resources to create electricity for home and business o Afghanistan’s leadership has decided to privatize the energy sector

Local and international investment in the energy sector can bring change to lives of millions of people

MOEW gives priority to developing their own energy resources, and developing energy infrastructure

Any steps that Afghanistan takes will benefit their neighbors and the region, directly and indirectly, through economic growth

Role of private sector in energy sector cannot be overemphasized, with private sector investment in generation and production of energy, in demand and supply aspects of energy sector, will ensure energy security for Afghanistan o Public-Private Partnership (PPP) in the energy sector will ensure success, not just the Kandahar Solar project, but also other USAID supported projects

Stability and economic growth will be created through energy sector improvement

Address – Wahid Waissi (MOFA), Director General for Economic Cooperation

Many projects are designed and planned, much regional communication, but Afghanistan is now moving to implementation phase, and this is the important phase

General Welcome and Thank you

Two months ago, there were six regional cooperative conferences (RECCA IV) to discuss regional activity and planning, most of the activities and projects undertaken by the GoA have a regional nature, especially in terms of transit and trade o Discussed energy projects, roads projects and other projects

This project has been discussed over 8-9 years, and now getting into the implementation phase

The region is really changing, the Central Asian countries are looking to boost their economies, and to invest in transportation and energy in Afghanistan

Bi-lateral and mulit-lateral cooperation could be leveraged to engage the private sector in Afghanistan, developers require assurances that these projects will succeed

Criteria for projects o Bankable, similar to the one today o Easy for investors to understand o Risk management, confidence that the project will succeed

GoA working to improve PPPs, Kandahar has many opportunities and a lot of potential o There are huge opportunities for electric connectivity between Kandahar and

Jalalabad o Solar is also a big opportunity in Kandahar

Address – Amanullah Ghalib (MOEW), Director Renewable Energy

The Kandahar Solar Project is the first Power Purchase Agreement (PPA) project for the Afghanistan Energy Sector

Overview o 100 MW Renewable Energy Package o Aims to provide sustainable power supply at affordable price for Economic Growth and Improved Living Standards o Power Sector Master Plan has been drafted for the next 20 years of grid expansion and generation planning o Energy Services Law is trying to bring regulations to encourage investment in the Afghanistan Energy Sector o Gas sector plan is in the formulation stages, for electricity, transport, heating/cooking o Development of coordination bodies

Where we are o 80 percent of energy comes from four countries, Turkmenistan, Iran, Uzbekistan, Tajikistan o Afghanistan aims to encourage development of internal resource for electricity generation o Diesel generators provide much of the electricity that flows through transmission lines in Afghanistan, not sustainable o Solar = 0.01% generation, Afghanistan’s infrastructure and government are ready to support solar projects and solar generation

What we are planning o Potential renewable energy sources include hydro, wind, solar, bio-mass, geothermal o All of these represent real opportunities for renewable energy in Afghanistan o Aim to privatize the Energy Sector, similar to the Transportation Sector

Policies and the way forward o In order to do all of this work, Afghanistan needs legislation, regulations and policies o Aim is to bring Private-Public partnership to Afghanistan, which will change the whole energy structure

What we offer o Long Term Land Lease o 25 % Incentive or Private Public Partnership o Tax Incentive o Security o PPA o Right to Buy o Attractive Tariff

Address – Jeremiah Carew (USAID), Infrastructure Division Chief

General Welcome to DABS, Tt, GoA representatives, interested parties

Energy Sector Evolution o 2002 – 5% of population connected to the power grid, today, it is over 30% o Growth and capacity of DABS was formed in 2008, customer growth from 2003-2014 is 400% o USAID has been a strong partner to Afghanistan, examples include:

Kajaki (2003-present) Along with other donors, the Northeast Power NEPS Shebergan and Afghan Natural Gas, will reduce Afghanistan’s dependence on imported power Establishing DABS as a state-controlled corporation, transforming it into a viable agency Tarakhil Power Plant o Since 2012 – engaged with DABS on PTEC Objectives: Connect NEPS – SEPS, deepen commercial focus of DABS, encourage development of solar generation o USAID’s Power Sector Goals in Afghanistan – increase power to Southern Afghanistan, make DABS a modern, sustainable enterprise, capable of operating technically and managerially o This project – significant expectation that this project will be a model that can be replicated (Solar, PPAs/IPPs)

Welcomed feedback from participants

Session II Introduction, Alexis McGinness

Emphasized that the conference was an oral presentation, and therefore, anything in writing has precedence, amendment is the binding authority

If you do have questions, put them in the question box, and we will answer during Q&A

Presentation, Overview of Afghanistan and Kandahar Solar Project – Ahmad Shah Sahil

Energy overview of Afghanistan o DABS – Power utility of Afghanistan, owed by GoA, established in 2008 o DABS is an independent and autonomous utility, 100% owned by DABS o DABS is responsible for power generation, distribution and transmission in all 34 provinces of Afghanistan, goal is to provide safe, reliable power at reasonable rates

Power Sector Overview o 10% power is diesel/gas, 8% hydro, 2% renewable energy, 80% power imports

DABS – Customer Growth o 2003-2014 customers grew by 400%, increased access to power but also increased responsibilities and challenges of DABS

Loss Reduction o DABS is continuously working to reduce losses, DABS has reduced Transmission and Distribution losses by ½, aiming to provide more energy and improve sustainability and viability of DABS’ operations o Still working on further loss reduction

DABS future growth o Installation of third turbine generator in the Kajaki Hydro Power Plant o Installation of a 10 MW solar power plant in Kandahar

Incentivized by USAID but funded by private investors Contractors will bid down the price of power using a reverse auction This project will reduce reliance on diesel generation in Kandahar o Rehabilitation of Duranta Hydro Plant (DABS funded) o Development of gas generation at Shaberghan Gas Fields

Funded through Public-Private Partnership (Ministry of Mines and Petroleum) 50 MW power plant using private investment capital and finance from the IFC

Kandahar Solar Program o GoA approved USAID proposal for 10MW Hybrid Solar PV Power Plant in Kandahar o Kandahar is a high demand growth area, with a mix of residential, commercial and industrial consumers o DABS, will act as a single buyer, providing ready market access o Proposed program is the first attempt for a renewable energy project of such large capacity, through IPP, in Afghanistan o PPA (Power Purchase Agreement ) with DABS addressing appropriate measures for protection of developer interests with DABS o Land of 85 acres already identified for project o Several industrial parks and new industries planned to be setup in adjoining areas

Solar Power Potential Afghanistan o Subtropical belt, receives abundant sunshine throughout daylight o 300 sunny days in a year in Kandahar

Existing solar installations in Afghanistan o Afghanistan has numerous small solar power installations aggregating to a total generation capacity of 13 MW.

o Installations are largely roof top stand-alone installations feeding power to government buildings, schools, hospitals and villages.

o Largest solar installation is in the Bamyan province with aggregate capacity of 1 MW.

Key Project Priorities and Benefits o Improved living conditions of people of Kandahar o Meeting the increasing demand of power due to industrialization o Cost effective option against existing diesel based generation o Scale up opportunities solar and other renewable energy

Presentation, RFP Requirements and Technical Elements – Jeremiah Carew and Michael Hajny (Tetra Tech), Energy Program Lead

Presentation is directed at Section C of the Solicitation (Technical Section)

Overview of Transaction o Two basic timelines, one is the US Government Construction portion of the transaction, and one is the PPA o Current deadline for proposal submissions is Dec 29 o Proposals are reviewed in Jan-Feb 2016 o There is a reverse auction for qualified bidders in anticipate to take place in February

2016, selection of the contractor is based on the lowest bid o There is a vetting requirement for offerors, and then the contract is awarded, simultaneously the PPA is signed, USAID anticipates that it is signed/awarded in March of 2016 o There is a 12 month Period of Performance (POP) after Notice to Proceed (NTP) to construct the solar installation o Viability funding is awarded in 2M increments based on successful commissioning of 2MW of power o Operations and Maintenance of the site is covered by the PPA

Project Site o Site is just east of Kandahar o Area is well suited to solar generation, and is relatively flat o Area is 35.03 Hectare o There is an access road that is off of the highway going towards the site

Equipment Requirements o RFP is looking for “commercially available and accepted Solar PV power generation technology, which is successfully operational and meets the meteorological conditions of the site.” (SOW, C.3.2, pg 13) They are not looking for the most cutting edge technology, but rather technology that is functional, and fits standards and best practices.

o There is a 22/110kV substation in Kandahar East, but that will happen in the future. It will not be completed in the lifetime of this Kandahar Solar project.

Interconnection Requirements o Metering panel must be provided at the 20 kV feeder of the SPV Power Plant.

Metering is mentioned in the RFP. Engineers will have to design system based on 16km line to the feeder entrance site. Construction of the line is DABS’ responsibility.

o 15 minutes of energy storage such as battery or capacitor banks is mentioned in the RFP. Battery (mentioned in the RFP) was part of original design, but after internal discussion, USAID is seriously considering removing this requirement, decision will be made via published amendment on 12/6/15.

o DABS will make the necessary arrangements for the construction and connection of 20kV dedicated overhead line at Breshna Kot substation (104 calendar day timeline).

o Variety of protective measures, taking into account reliability and quality of power supply at Breshna Kot substation

Miscellaneous o Commissioning- multiples of 2MW, witnessed by DABS and USAID, anticipate additional specifications. Not dependent on the construction of the transmission line.

o Quality Control (QC) – will hold the contractor to their submitted design, plant must be operated as intended for 15 years o Project Personnel – should be evident in the solicitation, no surprises in that section.

o Safety – site safety, conforming to US standards is required.

o Security –security plan and security staffing is required.

Presentation, Solicitation and Selection – Alexis McGinness

FAR, AIDAR, USAID policies (EDS) control how USAID is able to structure the solicitation and award

Overview of Contractual aspects of solicitation o Issued on 10/15/15, first set of questions received 11/16/15 o AMD 3 responded to many questions received, USAID anticipates providing additional responses to questions o Additional comments and questions re PPA – deadline December 6, 2015 o Finalized version of PPA issued 12/15/15, possible an iteration before then o Proposal deadline is 12/29/15 at 3pm Kabul time, very strict due date o Qualified bidders will be informed that they are qualified to bid during the reverse auction (anticipated at end of February 2016) o Bidders were instructed to monitor the FBO website for updated information

Expected Contract o Activity Description - Install, operate, and maintain a 10MWp Solar photovoltaic (PV) system in Kandahar province of Afghanistan and supply the power generated to DABS under a fifteen (15) year power purchase agreement (PPA) o Payments are made in five milestones, based on installation of capacity of the plant, total contribution by USAID is $10 Million USD o Payments are dependent on commissioning at point of connection o POP: 12 months o Eligibility – Geographic 935

Proposal process and submission expectations for technical proposal o Pre-Proposal Conference o Proposals Received o Evaluation of Technical Acceptability o Responsibility Determination Evaluated o Confirmation of Offeror’s Willingness to Enter into PPA with DABS o Notice to Qualified Bidders o Reverse Auction Conducted o USAID Vetting Conducted on Apparent Successful Offer o USAID Contract and execution of PPA and Ancillary documents

Section C Non-Technical Considerations o AMD 3 does clarify performance and payment bonds, asking for 10% of contract price Requires a performance bond and a payment bond, each at $500,000 USD o Security – contractor is responsible for taking appropriate actions for security and for all security costs o Gender, cultural and Aesthetic Considerations – promoting gender integration through all programs, encourage gender integration conducted at all levels of implementation, hope that plant takes into consideration the cultural climate of Afghanistan o Technical Submission Sections Section C outlines technical element requirements Section L provides instructions for proposal, what USAID is looking for, if these components are not included, the proposal can be rejected, following these instructions is very important

Evaluation criteria is provided in the solicitation Source selection method is “technical acceptable, lowest price”

First it must meet minimum standards in terms of technical proposal o Section M.3(a): Qualifications and Experience

General Qualifications

Legal Entity, business activities include generation and supply of renewable energy power

State willingness to enter into the PPA Specialized experience

Describe offeror’s experience in last 5 years, at least two turnkey solar power projects

At least two (2) turnkey solar power projects of at least five megawatts (5 MW) or higher feeding into power grid, of which at least one of these projects must be under a Power Purchase Agreement (where the Offeror owns and operates the system, selling power to power utility) and one project is in satisfactory continuous operation for the last one or more years from the date of submission of the proposal.

Financial Capability

Offeror must demonstrate minimum of $10M USD working capital to finance construction

Positive net worth over past 3 years

No pending litigation that could result in losses of 30% of offeror’s net worth

Section L states that evidence must be provided (letter of credit, guarantee from a bank, loan commitment) and audited/certified financial records for past 3 years, each member of a JV must demonstrate net worth

Also requires an affirmative statement on the pending litigation requirement o Join venture/teaming arrangement Solicitation will be amended (General Qualification), 6 pages to describe JV program Experience = assumes that it is likely that only one of the consortium members will have satisfied one element of specialized experience requirements

USAID will look at consortium as a whole o Personnel Qualifications

Offeror must demonstrate that a Program Manager and Chief Engineer to satisfy requirements of section c

Also a dedicated field team, make sure proposal provides evidence that qualifications are satisfied, how a PM and Chief assigned, and how plant team will be established and maintained o Management Capacity Offeror’s management plan must articulate the approach for managing personnel and equipment, within POP, with quality control o Instructions tell the bidders what USAID is looking for, focus on sections L and M to be sure that all requirements are satisfied o M. 3(b) – System Design and Equipment Specifications

System Description

Evaluating whether or not offeror provides detailed design description, key equipment and manufacturers

Must demonstrate that the proposed PV system is capable of producing 10 MW and satisfies the requirements set in Section C

System Operation and Maintenance – approach to operate and maintain the plan, successfully produce and deliver the required power and services to DABS in accordance with the PPA o M. 3(c) Past Performance Need to respond to the criteria:

Quality of product or service

Cost control

Schedule

Business relations

Management of Key Personnel

Small Business Concerns Past performance is not held against offerors, rated against acceptable/unacceptable based on performance record

In addition to satisfying the minimum requirements of Section M.3, Offerors must also satisfy the other requirements of the RFP in order to be deemed a Qualified Bidder to participate in the Reverse Auction, which includes:

o Determination of Responsibility Pursuant to FAR 19.6 o Submission of completed Section K & Certification Regarding Trafficking in Persons

Compliance Plan o Submission of Draft Branding & Marking Plan o Submission of Vetting Information Forms

Step Two: Reverse Auction – utilized to determine lowest price o USAID will notify qualified bidders, alert date and time o Rates will be proposed per KW/H

Successful offeror will be:

o Qualified bidder o Proposes lowest tariff rate o Satisfies US vetting requirements o Terms and Conditions of the Solicitation

Any conflict between verbal presentation, writing gets precedence

Presentation, Power Purchase Agreement, financial and legal aspects - DABS with KPMG, Finnacle and RIAALAW – Saurabh Gupta (KPMG), Manager; Arindam Ghosh (Phoenix), Consultant; Nadir Altaf (RIAALAW), Partner; Shubhomoy Ray (Finnacle), Managing Director and CEO

Introduction by DABS

Overview of Program structure and discussion on key project documents o Overall Program structure

Philosophy: tried to address issues faced by a potential investor, tried to remove barriers to investment

Afghanistan has a significant solar potential, need efforts to harness potential o Many other projects will be built on the success of this project o Responsibility of project company to install, operate and maintain 10MWp solar system o Energy Generated is sold to DABS, will be paid through the PPA tariff per/kWH o Land Lease agreement entails that small amount of rent is paid by the project developer o USAID provides the Viability Gap Funding, which is an incentive to install the solar system o Once the project is generating, the generated electricity will be sold to DABS through tariffs o This is a tripartite Escrow Agreement to be signed with DABS and Escrow Bank to provide security against payment default by DABs through an Escrow Account o Additionally, the Implementation Agreement provides demonstration of the commitment of the GoA

Key Project Documents o Construction Contract with USAID

The responsibility of the Contractor under this contract will be to design and install the 10MWp Solar PV system. The term of the contract will be 1 year o Power Purchase Agreement with DABS To supply power from the Solar PV system under the terms & conditions specified in the PPA and at the specified tariff (discovered in the auction process). The term of the PPA will be 15 years.

Contract Term – signed between DABS and Selected bidder, term is 15 years, after will be transferred to DABS free of cost

Tariff -- DABS will pay to the Seller, USD denominated and USD payable Tariff of US Cents equivalent to the tariff bid per kWh for the entire term of the PPA, being known as the Tariff under the PPA

Taxes and Duties – both DABS and the seller will be obligated to pay taxes and duties as applicable to them under the agreement, any change in tax that results in loss or profit to the seller will be reimbursed by DABS to the seller or vice versa

Liquidated Damages – under circumstances where the seller is unable to fulfill its obligations, DABS will recover compensation in the form of liquidated damages

Operating committee / procedures -- An operating committee having nominees from both parties will be constituted

Consents and Clearances – DABS will provide support in attaining necessary consents, clearances and licenses

Dispute resolution mechanism – settled through mutual discussion, in case of failure, this could be referred to an expert, if failure, the parties have the right to arbitrate or terminate the agreement

Force Majeure

Political Force Majeure Event - any act of war (whether declared or undeclared), invasion, armed conflict or act of foreign enemy, blockade, embargo, revolution, riot, insurrection, civil commotion, or act or campaign of terrorism or political sabotage or;

any strike, work-to-rule, go-slow, or analogous labor action that is politically motivated and is widespread or nationwide

A Change in Law- that results in either a material change in cost or revenue or any other requirement for construction and operation of facility

Termination Provisions

In case of inability of the parties to fulfill their obligations under the PPA beyond the time specified, termination provisions and related consequences/termination payment will get applicable.

In case a Force Majeure event results in material damage/modification to the seller’s facility, the seller will have to provide for restoration (based on an approved restoration cost estimate), provided the restoration amount is below a minimum 'Threshold Amount specified in the PPA.

In case the Restoration amount is above the Threshold Amount, the seller will have an option to either terminate or restore as per the PPA o Land Lease Agreement with DABS Grant of Lease

Land will be provided by DABS through a Land Lease Agreement (LLA) for the setting up of solar power plant

Developer to pay nominal lease rent

Land will be leased for the sole and exclusive purpose of designing, constructing, owning, operating and maintaining the solar PV plant at Kandahar

Payment and Taxes

The Lessee shall pay to the Lessor annual lease rent fixed for the entire term, with no variation upward and downward

The Lessee will not be liable to pay to the Lessor or any authority any additional rates, charges, taxes, duties, levies, cesses or other impositions in relation to the Lease of the Site

Other Key features

DABS to reasonably cooperate in the procurement of permits and approvals for construction and operation

All the force majeure clauses in the IA to be applicable in the same manner in the LLA

Consortium represents countries that are regionally similar to Afghanistan, support available to the government of Afghanistan

At the end of the term, the land will be transferred to seller with all rights, easements and privileges o Implementation Agreement Objective: Encourage private investment in the electric power sector in

Afghanistan and to provide assurances of support for the Seller’s efforts to develop the Facility in an efficient and timely manner

Provide assurances of support for the Seller’s efforts to develop the Facility in an efficient and timely manner

Covers risks of PPA contract, performance issues Scope (once approved by GoA) – government support in getting clearances/approvals Access to import for project equipment Foreign exchange and free transfer of funds and financial settlements Government will not expropriate / nationalize the project or will prevent changing laws that can affect performance of the project developer to operate the project

Projection against any change in any applicable Laws of Afghanistan Compensation under termination events

Seller Event of Default

GOA Event of Default

Force Majeure

Force Majeure not of a political nature o Escrow Agreement

Tripartite agreement to be signed, with DABS and Escrow Bank. To provide security against payment default by DABS through an Escrow Account

Intended to be captured separately from the PPA, should be done by government not by DABS

DABS and the Seller to appoint an Escrow Agent, which shall establish a Dollar Escrow Account in the name of DABS, enabling the Seller to recover the non-disputed invoice amount, as raised by it to DABS pursuant to the

PPA

DABS and the Seller to establish a Dollar Escrow Account in the name of DABs, enabling the Seller to recover the non-disputed invoice amount as released by it to DABS pursuant to the PPA

In case of a default, Seller can claim the unpaid amount against the Escrow Account.

Any drawdown would then be replenished by DABS within a defined period of time, provided, at any point of time the amount in the Dollar Escrow Account shall not be less than four (4) months of average invoice value of the estimated net energy of the Facility during the relevant year

[For Questions raised and Answers refer to RFP Amendment No. 05]

Presentation, Technical Aspects of Solar Site by DABS with Tractabel – Bhupendra Jain Addl (Tractabel), General Manager

Project Overview o Proposed capacity – 10MW o Type of System – Ground mounted, fixed structure, fixed tilt, connected solar PV power plant o Power evacuation voltage - 20 kV o Nearest Grid Substation – 110/20 kV Breshna Kot Substation o Location of Substation from Solar Plant - 18km o Expected Plant life - 25 years

Site o Topographic – very flat land, access road is already available but it has to be improved o Sun availability - more than 300 days a year, protected project

Performance o PR 80% o CUF 20%

Distribution System o Isolated system, not part of the grid, distribution system exists through the Breshna

Kot Substation, also connected to Kajaki Hydro plant o Dedicated overhead transmission line with ACSR conductor at suitable size o Proposed to connect to 110/20 kV Breshna Kot Substation at 20KV bus bar through

18km, 20kV cable o Substation capacity – 80 MVA

Point of Interconnection o ABT Metering panel will be provided at SPV PP end on 20 KV line for measurement of import and export of power o Protection panel for 20kv linen to be provided o 20 kV Overhead line to be connected at the structure in solar plant complex

Reverse Auction Presentation, Michael Welch (PowerAdvocate)

Order of Precedence o What is final is what is issued in writing o Only solicitation documents RFP are final, including amendments o If there are conflicts between verbal statements and written documents, written documents take precedence o If there are conflicts between this presentation and USAID solicitation documents, USAID solicitation documents take precedence

Features of PowerAdvocate o Transparency o Confidentiality

Never know the names of the bidders o Ease of Use

Just requires Java and Internet Explorer PowerAdvocate will work with all qualified bidders to make sure it works beforehand o Proven Effectiveness

60,000 solicitations Comfortable in the space

Proposal Submission and Evaluation o Prepare and submit technical proposal

Interested Offerors submit proposals detailing qualifications and experience, system production capability, and past performance o USAID/DABS determine technically acceptable proposals USAID and DABS identify which Offerors have submitted technically acceptable proposals Offerors determined to have a technically acceptable proposal are invited to participate in the Reverse Auction o Conduct Reverse Auction on PowerAdvocate online platform

Qualified Offerors receive an invitation to register on the PowerAdvocate online sourcing platform

Qualified bidders are able to log into the system and preview the auction setup prior to the actual Reverse Auction

Qualified bidders participate in a Reverse Auction to determine the lowest priced technically acceptable offer o Vetting, Finalize and Award Contract Vetting pursuant to RFP Section H.19 Per the RFP, the Government intends to evaluate proposals and award a contract without discussions with Offerors However, the Government reserves the right to conduct discussions if deemed necessary by the Contracting Officer

Reverse Auction o Bidders will be logging into online system, predetermined day and time, opportunity to submit bids in online platform o Bid price information is entered by approved, registered offerors who participate in a reverse auction on the specified website at the specified time o Offerors can see their bid prices and, depending on auction format, their rank (i.e., whether theirs is the leading bid or not), and/or other bidders’ anonymized prices o Bidders who enter an initial price may lower their own bid in an attempt to improve their bid relative to competitors o Offerors must lower their bid by at least as much as a “minimum bid decrement” o Offerors may enter a bid as long as the auction is in its initial auction period or if the auction has been extended by the auctioneer; offerors may not enter a bid after the event closes o Rank, winning bid, next lowest bid, anonymous

Auction Parameters o Opening Bid = 13.8 cents o Bid decrement = .1 cents o Qualified Bid = Bid lower than their previous bid but not lower than the lowest bid o Pre-bid rules = qualified bidders submit a bid prior to the start o Initial auction duration = 25-30 minutes o Extension rules = transparent, will be made clear up front, prevent “sniping”, Three-minute extension granted from the last bid if there is any qualified bid within two minutes of anticipated auction close; there can be an unlimited number of extensions if bidding activity continues or if the auctioneer extends the auction

Support Plan o Bidder Registration: Once list of qualified bidders is received, PA will work to register supplier contacts, make sure everything works, access to training environment o Training environment will allow bidders to practice in a sample auction environment, can practice by entering bids, watching other bids, sending messages o Reverse Auction will provide technical event-day support to buyers and bidders, offer proxy bidding support to bidders in an emergency

Expectations of the Reverse Auction Process o Website will require a login (for qualified offerors) o Offerors will be required to accept terms of use of site o Bidders must register in advance o There will be access to the training site o There will be a more formal set of instruction and training materials issued.

o Submit price in advance of auction starting.

o Making sure that people entering prices are qualified to do so, and that they understand the cost and implications o Participation is mandatory for qualified offerors.

Conclusion:

This was a good discussion, suggestions and comments have been heard. This is the conversation that has to happen, we are a development agency not specialized in solar, and we are trying to get the two sides closer together to get more than one investor bidding, and establish a blueprint to use to move forward.

A lot of people in Washington and Kabul are looking at this quite closely. Thank you for your frank comments and not worrying about hurting our feelings, looking forward to continuing the discussion.