Feasibility study including the engineering and design

I.      Background.

The Government of DPRK articulated its national priorities for development assistance at a Prioritization Workshop for a UN Strategy for DPRK (2007-2009), held in mid January 2006. An outcome of the workshop has been the government resolves to collaborate with partners in the formulation and implementation of projects for sustainable energy resource management and utilization. Subsequently, the Sustainable Rural Energy Development (SRED) Programme and the Small Wind Energy Development and Promotion in Rural Areas (SWEDPRA) came about and the projects will seek to directly address three of the five priorities identified by the government as follows:

• Improved availability and utilization of energy
• Improved environmental management; and Increased food availability at national and household level.

The UNDP DPRK Country Office mandate during the current period involves implementation of SRED and SWEDPRA projects. The projects have been revised and approved by the government and Headquarters. Implementation of the projects is expected to start by October 2010.  

The energy projects are technology heavy as it involves civil and engineering design and works. For these tasks the services of a consulting firm is required to assist the project in determining the specification and features of the energy equipment, machinery and facilities. 

The consultancy exercise will adopt the following approaches and strategies:

• Stakeholder participation: starting with an assessment of energy services  and optimal energy mixes at the cooperative farm(s) level;
• Provision of qualitative information i.e. Identification of  opportunities - but also constraints and barriers- with participation of stakeholders - and recommendations ;
•  matching energy services requirements with energy resources available from both within (or in close proximity )  the boundaries of the selected cooperative farms; and
• Promoting synergy from related efforts by national and international institutions at the community level.
• use pilot/demonstration approaches ; and the collection of information on technical, financial, operational sustainability of the investment;
• focus on capacity development

The project will explore a combination of energy resources, technical improvements in production, efficiency improvements, emissions control and sustainable land-use practices. The aim is to enhance productivity and simultaneous reduction in unit costs, while allowing improvement of rural livelihoods, reducing food and energy vulnerability, and ultimately contributing to sustainable human development at all levels.

After the completion of the pilot demonstration projects the various components of the SRED programme will be evaluated so that ‘good-practices’ can documented for replication at the national level. Based on the lessons learned during the implementation phase, SRED will help the government of DPRK to formulate strategies and plans for scaling-up of sustainable rural energy development at the national level.

SRED has evaluated the engineering design, assess the technical feasibility and financial viability of the below renewable technology application demonstration projects: 

1) Small Hydropower Plants;

2) Gasifier Systems;

3) Solar Thermal Systems;

4) PV Systems;

5) Biogas Systems;

6) Biomass Direct Combustion Systems//High-efficient Coal Combustion.

20 projects were identified as possible rural Energy Demonstration Projects:

1. 3 Hydro Power Projects (HPPs)
2. 4 rice husk Gasification Power Projects (GPPs)
3. 4 Solar Hot Water Projects (SHWPs)
4. 1 Solar Water Pumping Project (SWPP)
5. 4 Biogas/Greenhouse Projects (BGPs)
6. 4 Energy Efficient Stove Projects (EESPs)

These 20 projects were selected due to specific criteria such as Demonstration, Environment, Operation and Maintenance, Financial, Replicability, Ownership and Technology Mix requirements.

Budget requirements for all 20 projects have exceeded the allocated funds for the equipment for technologies under Component 2: Implementation of Rural Energy Demonstration Projects. After considering the several options based on the selected criteria only 12 projects out of 20 projects remained for funding from Component 2: Implementation of Rural Energy Demonstration Projects. The rest 8 projects are requiring additional funding as target for SRED Resource Mobilization Strategy is the following second priority list. Hydro Power Project in Mopung Cooperative Farm was also moved into the second priority list (waiting for additional fund) because:

–           This project has highest investment cost compared to others;

–           Project is at early stage of development, and its completion is expected to be after 2012.

As part of the expecting new resource mobilization it was suggested by NCC to start developing project design for Hydro Power Project in Mopung Cooperative Farm.

II.        Scope of Work.

The foreign subcontractors will guide the project in determining the features and specification of equipment and machinery and the accompanying and design for the civil and engineering works to develop and implement the Hydro Power Project in Mopung Cooperative Farm. Under the overall guidance of the Project Manager and close coordination with the Project Director, the contractor will conduct the following tasks:

• Review all available information as well as “Assessment of Mopung HPP application and designing the demonstration project” prepared by Local consultants.
• Design of the Hydro Power Project in Mopung Cooperative Farm and it’s financially viability as demonstration project, inclusive of process flow design, material and energy balances, establishment of baseline data and design operating performance, and the design of productive use programs that will make use of the energy/electricity produced by installed Hydro Power Project in Mopung Cooperative Farm.
• Specification of the equipment, instrumentations and other miscellaneous components required for Hydro Power Project in Mopung Cooperative Farm application demonstration, including materials take-off and budgets for consideration and approval of UNDP/BDP.
• Provision of recommendations for the local and foreign purchase of necessary equipment and materials, and preparation of bidding documents for the supply of the required equipment, instrumentations and components.
• Basic and detailed engineering design (process, piping, piping and instrumentation, mechanical, electrical, and civil) for Hydro Power Project in Mopung Cooperative Farm demonstration project. Includes the preparation of TORs or Request for Proposals, Bidding Documents and Engineering Work Specifications for the installation of the Hydro Power Project in Mopung Cooperative Farm as demonstration project.