Elsie Garfield -2- September 24, 2007

THE WORLD BANK/IFC/M.I.G.A.

OFFICE MEMORANDUM

DATE: September 24, 2007

TO: Elsie Garfield (MNSSD)

FROM: Anna Bjerde (MNSSD)

EXTENSION: 33541

SUBJECT: EGYPT: Kureimat Solar Thermal Hybrid Power Project (TF No. 027796)

PDF Block C Completion Report

1. Please find the completion report for the above mentioned PDF Block C which was approved on January 23, 2001 with a funding of US$750,000. The grant has been closed and the Recipient has been informed.

2. The recipient has successfully completed all the activities funded under the PDF Block C, and all the agreed upon outputs are satisfactory. A brief summary of the outputs is captured in this memorandum.

3. The PDF Block C funds have been used to carry out the activities as per the grant agreement between the Bank and the recipient. The primary objective of the PDF Block C grant was to finance technical assistance to the New and Renewable Energy Authority (NREA) for the preparation of the project design, bidding documents and evaluation of bids for the Kureimat Solar Thermal Hybrid Power Project. The technical assistance was carried out by Fichtner Solar. The activities are listed in the table below.

Activities / Contract Amount / Actual Disbursement from PDF-C Grant / Counterpart Contribution
1) Preparation of the bidding documents for the proposed hybrid solar thermal power plant and assist in the pre-bid meetings. / 673,511 / 673,511
2) Assistance in the evaluation of proposals and preparation of evaluation report. / 76,489 / 76,489 / 63,511
3) Assistance in contract negotiation. / 51,607
Total / 750,000 / 750,000 / 115,117

4. I have reviewed the statement of expenditures and disbursements for the PDF Block C grant and found it to be an accurate representation of the activities and output for which the grant was given.

Distribution:

Messrs./Mmes. Khanna, Wedderburn, Monier-Illouz (ENV), ENVGC, Files

Andersen, Walters, Araujo, Mendonca, Kirchner, Chavapricha, Al-Harazi, Le, Tandon (MNSSD).


Attachment

Summary of Outputs for PDF Block C Grant (TF No. 027796)

A consulting firm, Fitchner, was hired to provide technical assistance to NREA on all three activities financed under the Grant. The status of each activity is provided below:

A) Preparation - Assist NREA in the preparation of bidding documents: The firm has successfully completed this activity. Specifically, the following tasks have been finalized:

(i)  Reviewed the contract agreements previously prepared including Power Purchase, Fuel Supply, Usufruct (land lease) agreement and the form of government guarantee.

(ii)  Jointly prepared with NREA the Request for Proposals including the information to bidders, technical requirements and financial conditions, instruction to bidders for preparation of the proposals, solicitation project time schedule and evaluation criteria on which the bids are to be judged; and

(iii)  Participated in the pre-bid meeting, answered questions submitted by the bidders and prepared the minutes of meeting.

B) Evaluation - Assist NREA in evaluating the proposals submitted by the bidders: This activity was completed in the spring of 2007 and the firm’s responsibilities included:

(i)  Worked jointly with NREA in Cairo in the evaluation of the pricing, technical, financing, legal and applicable aspects of the proposals to rank the bids accordingly; and

(ii)  Jointly prepared the evaluation report with NREA.

C) Negotiations: Assist NREA in contract negotiations with the selected bidder: This activity was completed in May-June 2007 and included negotiation of the size of the solar field from the original 30 MW to 20 MW.