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PPP Tendering for a Solar Park in Aruba

ARUBA-Recently N.V. Electriciteits-maatschappij Aruba(“ELMAR”) put a contract for tendering for a project to build and operate a solar park. ELMAR, a company ultimately owned by the country of Aruba, is the exclusive distributor of electricity in Aruba. ELMAR presently purchases electricity  from Water en Energiebedrijf (W.E.B.) Aruba N.V., which produces electricity with fuel oil driven turbines and acquires up to 20% of the total output from a wind farm located on the east side of Aruba.

During the second Aruba Green Conference held in October 2011, the government of Aruba elaborated on the plan to shift to alternative energy. This plan includes building a second wind park and solar parks. The project being tendered, is the first solar park pursuant to this plan and is to be build on the parking area of the Aruba Airport, which is owned and operated by the Aruba Airport Authority N.V. According to the call for tendering published by ELMAR, the electricity to be generated from this solar park should not exceed 4 mega watt.

The contract to be entered with ELMAR is based on a public private partnership concept. The scope thereof is to design, build, finance, operate and maintain the solar park based on a power purchase agreement.

The tender procedure is laid down in the request for proposal (the “RFP”), which includes the procedures and planning requirements for the candidates. The RFP is obtained by paying a fee, signing a non-disclosure agreement and submitting proof of payment and signed non-disclosure agreement. The RFP is available from Monday to Friday from 7 November to 5 December 2011.

ELMAR will hold pre-bid meeting, to which the candidates will be invited. According to the call for tendering, in this meeting ELMAR will explain the project, the procedure, the RFP and the draft power purchase agreement. Furthermore, the candidates will have the opportunity to submit questions regarding the bidding from the date of issuance of the RFP until 7 calendar days after the pre-bid meeting is held. The bid must be submitted with ELMAR on 14 February 2012 at 09:45 A.M. Aruba time. ELMAR will select bid based on selection and award criteria as stated in the call for tendering.

For more information please contact David Wever, attorney at law at VanEps Kunneman VanDoorne.