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Turkey - Coal Bed Methane Recovery and Utilization Feasibility Study

Solicitation Number: 2012-21004A
Agency: United States Trade and Development Agency
Office: USTDA
Location: USTDA
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Combined Synopsis/Solicitation
Added: Dec 28, 2011 4:02 pm
POC Robin Yavuz, USTDA
1000 Wilson Boulevard, Suite 1600
Arlington, VA 22209-3901
Tel: (703) 875-4357
Fax: (703) 875-4009
***Please do not contact contracts office***

Proposal Submission Place:
Yalcin Umurtak
Project Manager
Buyukdere Caddesi, Ucyol Mevkii No: 53
Republic of Turkey
Phone: +90 (533) 692-1033
Fax: +90 212 286 6562

The Grantee invites submission of qualifications and proposal data (collectively referred to as the "Proposal") from interested U.S. firms that are qualified on the basis of experience and capability to develop a feasibility study to evaluate the technical, financial, environmental, and other critical aspects of a combined coal bed methane (CBM) extraction and power generation project at the Grantee's coalfield. The primary objective of the Study is to provide the Grantee with recommendations for an optimum combined gas extraction and power generation project and a financing plan to implement the project. The Study will involve various aspects for the development of CBM, including drilling and extraction, gas processing and compression requirements, on-site power generation using a combined cycle gas turbine technology, and related infrastructure requirements for piping the gas and selling the electricity to the Turkish Grid.

Turkey's power consumption is currently at a rate of intensity that is more than twice that of the European Union average. In order to meet rising demand and reduce the country's energy security risk, the Government of Turkey is seeking to diversify its supply of energy. Turkey's current energy mix is heavily dependent on imported oil and natural gas. The demand for natural gas demand has grown ten-fold since 1990, and this rapid increase has increased Turkey's energy security risk, especially since 98 percent is imported from neighboring countries. Together, Turkey's high energy intensity and growing dependence on natural gas make steps toward resource diversification and heightened energy efficiency high-priority domestic policy goals.

Coalbed methane recovery and utilization presents an opportunity for Turkey to lessen its dependence on imported gas, while also providing an alternative means to produce cleaner energy from coal. Through a competitive international bidding process in 2005, the Grantee was awarded a coal mining and coalbed methane (CBM) exploration concession by the government-owned Turkish Hard Coal Enterprises (TTK). The concession area of the Grantee is 6,890 square kilometers. The concession documents state the dual rights of the Grantee to (i) coal mining and sales to the Turkish market and (ii) CBM production and sales to the Turkish natural gas grid, while also reserving the right to use part or all of the CBM to power a gas-fired power plant to be built in the area.

The Grantee is developing several projects aimed at the extraction of CBM and its conversion into energy including electric power. The firm set up a CBM Project Group at its Amasra location and started developing the proposed CBM Project in 2007. Many of the initial tasks of the project have been completed, and the Grantee has already invested more than $12 million in drilling CBM wells to ensure that there is substantial resource of CBM. Initial results from these activities indicate that the gas level is sufficient for CBM extraction and utilization for a power plant using one gas turbine-generator. Accordingly, the Grantee is interested in an independently prepared feasibility study evaluating the CBM extraction potential, designs for the power plant, and a sound economic and financial analysis that the firm can use for implementation financing and technology selection. The Study will involve various aspects for the development of CBM, including drilling and extraction, gas processing and compression requirements, on-site power generation using a combined cycle gas turbine technology, and related infrastructure requirements for piping the gas and selling the electricity to the Turkish Grid.

The Grantee is a private Turkish corporation established in 1973 and is part of a group of nine companies under the Hattat Holding, Inc. The Grantee has the staff and technical capacity to manage the CBM project along with its coal mining operations over the long term. Although CBM extraction is a relatively new concept in Turkey, the Grantee, deriving from its technical knowledge and experience of oil and natural gas exploration, is well-equipped to implement the project.

The U.S. firm selected will be paid in U.S. dollars from a US$449,960 grant to the Grantee from the U.S. Trade and Development Agency (USTDA).

A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background definitional mission/desk study report are available from USTDA, at 1000 Wilson Boulevard, Suite 1600, Arlington, VA 22209-3901. To request the RFP in PDF format, please go to:

Requests for a mailed hardcopy version of the RFP may also be faxed to the IRC, USTDA at 703-875-4009. In the fax, please include your firm's name, contact person, address, and telephone number. Some firms have found that RFP materials sent by U.S. mail do not reach them in time for preparation of an adequate response. Firms that want USTDA to use an overnight delivery service should include the name of the delivery service and your firm's account number in the request for the RFP. Firms that want to send a courier to USTDA to retrieve the RFP should allow one hour after faxing the request to USTDA before scheduling a pick-up. Please note that no telephone requests for the RFP will be honored. Please check your internal fax verification receipt. Because of the large number of RFP requests, USTDA cannot respond to requests for fax verification. Requests for RFPs received before 4:00 PM will be mailed the same day. Requests received after 4:00 PM will be mailed the following day. Please check with your courier and/or mail room before calling USTDA.

Only U.S. firms and individuals may bid on this USTDA financed activity. Interested firms, their subcontractors and employees of all participants must qualify under USTDA's nationality requirements as of the due date for submission of qualifications and proposals and, if selected to carry out the USTDA-financed activity, must continue to meet such requirements throughout the duration of the USTDA-financed activity. All goods and services to be provided by the selected firm shall have their nationality, source and origin in the U.S. or host country. The U.S. firm may use subcontractors from the host country for up to 20 percent of the USTDA grant amount. Details of USTDA's nationality requirements and mandatory contract clauses are also included in the RFP.

Interested U.S. firms should submit their Proposal in English directly to the Grantee by 4:00 PM, LOCAL TIME, JANUARY 31, 2012, at the above address. Evaluation criteria for the Proposal are included in the RFP. Price will not be a factor in contractor selection, and therefore, cost proposals should NOT be submitted. The Grantee reserves the right to reject any and/or all Proposals. The Grantee also reserves the right to contract with the selected firm for subsequent work related to the project. The Grantee is not bound to pay for any costs associated with the preparation and submission of Proposals.

1000 Wilson Boulevard, Suite 1600,
C/O US TDA 1000 Wilson Boulevard, Suite 1600
Arlington, Virginia 22209-3901
Robin Yavuz
Phone: 703-875-4357