Bids are invited by 3 July for an EPC contract for the design, financing, procurement, construction, testing and commissioning of the project, including civil works, the supply of electro-mechanical equipment and hydraulic steel works, and including all associated balance-of-plant and integration works, and to own, operate and maintain the additional unit. EEC will offer a concession of 20 to 30 years from the commercial operation date (or from effective date), sized to support bankability, with an extension option by mutual agreement.
The project will involve the addition of 10 MW to the existing 20 MW hydropower plant, which is located downstream of the Maguga dam on the Komati river in the Hhohho region of Eswatini. The bidder should anticipate that the optimal technical solution will be confirmed through detailed hydrology review, hydraulic transient analysis, geotechnical investigations, and interface studies with
existing civil structures, waterways, and electrical systems. The existing station, which was completed in 2006, was developed and is currently operated by the Komati Basin River Authority (KOBWA), a bi-national agency created by the governments of South Africa and Eswatini. The plant is generally used as a peaking station, and only produces base power when Maguga dam spills.
Construction of the additional unit has been impeded by financial challenges the utility has experienced in the recent past. To close the financing gap, EEC wishes to appoint an EPC contractor that will bring the whole financing of the project and enter into commercial agreements beneficial to both parties.
Bidders shall submit a clear and credible financing proposal demonstrating their ability to mobilize the capital required for the project. The financing proposal shall, at a minimum, include the following:
- Proposed financing structure, including the sources and uses of funds, indicative debt-equity composition, financing tenor, grace period, repayment profile, and pricing assumptions;
- Identification of proposed lenders, arrangers, export credit agencies, development finance institutions, insurers, or other funding parties, together with letters of interest, support, or evidence of financing discussions where available;
- Key conditions precedent to financing and the bidder’s plan and timeline for achieving financial close;
- A description of required security package, guarantees, sponsor support, step-in rights, escrow arrangements, and any government or off-taker support expected;
- Proposed payment structure under the EPC contract and its alignment with the financing plan; and,
- A financial model summary or equivalent demonstration of project affordability and bankability.
Bidders may propose one of the following commercial structures, noting that EEC reserves the right, following the RFP process and subsequent engagements with shortlisted bidders, to adopt one structure or a combination of structures:
- EPC + Finance: A lump-sum turnkey EPC arrangement combined with contractor-arranged financing, which may include export credit, commercial debt, development finance, or a combination thereof, made available to EEC and/or a project SPV;
- BOOT/IPP: A Build–Own–Operate–Transfer structure under which the developer finances, constructs, owns, operates, and maintains the Project for an agreed term under a long-term Power Purchase Agreement (PPA), with transfer to EEC or another designated entity at the end of the term, subject to applicable approvals; and,
- Operation & Maintenance Tariff: EEC retains ownership of the plant, while the developer is responsible for its operation and maintenance in return for an O&M tariff designed to recover operating and maintenance costs together with an agreed return or margin.
The objective of the project is to achieve the following milestones: (i) Select a qualified EPC contractor or EPC-led consortium capable of delivering the project on a turnkey basis; (ii) Secure a financing solution acceptable to the employer to fund the project, whether through arranger-supported debt, export credit, commercial lending, development finance participation, or another bankable structure; (iii) Ensure that the project is designed, constructed, tested, commissioned, and handed over in accordance with applicable technical, environmental, social, safety, and regulatory requirements; (iv) Achieve a competitive and affordable generation tariff that supports recovery of the project investment within an acceptable payback period while maintaining overall project bankability and value for money and (v) Achieve timely commercial operation with high plant availability, reliability, and performance.
The RFP is downloadable at www.esppra.co.sz or www.eec.co.sz. All documents submitted must be in English. All questions and/or requests for clarification must also be in English. RFPs may be e-mailed to bongani.chauke@eec.co.sz copied to thobeka.gama@eec.co.sz or hand delivered in a sealed envelope to the tender box at the EEC Head Office, Mhlambanyatsi Road, Mbabane, Eswatini, clearly marked as: “RFP 001 of 2026/27, Engineering Procurement Construction (EPC) contractor plus finance for an additional 10 MW hydropower generating unit at the existing Maguga Hydropower station”.
All enquiries relating to this RFP may be addressed to Bongani Chauke, Eswatini Electricity Company, Tel: +268 2409 4165; Email: bongani.chauke@eec.co.sz not later than seven days prior to the deadline of 30 June 2026.
