The Authority for Public-Private Partnerships announces the qualified proponents for the Project of a new Generation Facility

This Authority for Public-Private Partnerships release was published using machine translation.

San Juan Puerto Rico. May 26, 2023. – The Atty. Fermín Fontanés Gómez, executive director of the Authority for Public-Private Partnerships (AAPP), reported today that six (6) bidders were qualified after the Request for Qualifications (RFQ) process that was carried out as part of the competitive bidding process called by the Public Administration for a new generation facility. The RFQ was published on March 1, 2023. This, in accordance with the Puerto Rico Public-Private Partnerships Law, Law No. 29-2009, as amended (Law 29); the Law to Transform the Electric System of Puerto Rico, Law No. 120-2018, as amended (Law 120); and the Regulations for the Tender, Evaluation, Selection, Negotiation and Award of Alliance Contracts and Sale Contracts for the Transformation of the Electric System under Law 120.

The Project contemplates that the Electric Power Authority (AEE) enters into a long-term contract with a private partner. The private partner will identify a suitable location, design, permit, finance, build, install, manage, operate and maintain the generation facility. This, with the interest of providing generation capacity with a view to improving the adequate sufficiency of resources on the island.

In compliance with Sections 4 and 5 of the RFQ, the members of the Alliance Committee had the responsibility of evaluating the Statement of Qualifications (SOQ) presented by the participants and selecting those best qualified with the financial capacities, technical and operational requirements for the Project. The RFQ attracted the interest of a total of eight (8) world-class participants, including companies and consortia. The following six (6) proponents were qualified:

1. CH4 Green Energy, LLC

Composed by:

to. CH4 Green Energy, LLC

b. Lindsayca, Inc.

2. Eco-Renewable, LLC

Composed by:

to. EcoRenewable, LLC

b. Peerless Oil and Chemicals, LLC

3. Haina Investment Co., Ltd.

4. InterEnergy Group Limited

Composed by:

to. InterEnergy Partners LP

b. Brookfield Global Transition Fund

5.Karpower International B.V.

6. Tropigas de Puerto Rico, Inc.

Composed by:

to. Tropigas de Puerto Rico, Inc.

b. Cratos Project Services PR LLC

c. Mitsubishi Americas Power Inc.

d. NAES Corporation

The Project responds to the order of the Puerto Rico Energy Bureau (NEPR) to PREPA to notify the Public Administration to initiate a competitive bidding process for the establishment of a public-private alliance for a generation facility.

The objectives of the Project are aligned with (i) the Integrated Resource Plan (PIR), (ii) the Order of August 2022 of the PREB that orders PREPA to notify the Public Administration to begin the bidding process for the Generation, and (iii) the Resource Adequacy Study of LUMA Energy LLC (Operator of the transmission and distribution system "T&D").

"Prepa's Integrated Resource Plan (PIR) establishes the importance of generation coming from alternative sources until reaching the goal proposed for the year 2050, as stipulated in the Puerto Rico Energy Public Policy Act (Act 17-2019 "This project brings us even closer to that goal. As we move forward in the transformation and modernization of Puerto Rico's energy system, this public-private partnership supports ongoing efforts to strengthen the reliability of power generation on the island." said Fermín Fontanés Gómez, executive director of the Public Administration.

The evaluation of all bidders by the members of the Alliance Committee used as a basis their compliance with Law 29 and Law 120, as well as with the requirements and procedures of the RFQ and criteria in the areas of financial capabilities and qualifications; and technical and operational skills and qualifications.

The AAPP expects to issue a Request for Proposals (RFP) in the coming weeks to invite the six (6) qualified proponents to submit specific proposals for the Project.