RFAs: Agriculture Crop Residue Pelletisation Project in the Terai Region of Nepal

ICIMOD has partnered with the Punjab State Council for Science and Technology (PSCST) as the technology partner to implement the project “Reducing air pollution by creative use of pelletisation” in Indo Gangetic plains. The activity is funded by the United States Department of State (USDOS).

ICIMOD will be contributing partial financing and the necessary technical support to the selected Applicant(s) as seed funding to ease the procurement, installation, and commissioning of the required pelleting plant.

Objective

• To identify a competent industrial partner capable of establishing a sustainable agricultural crop residue/paddy straw pelletisation facility, producing agriculture crop residue pellets for end users.

Scope

• The purpose of this RFP is to invite the applications from potential manufacturing industries intending to initiate biomass pellet production using ACR as feedstock in collaboration with ICIMOD as the industrial partner, having the knowledge and skills of industrial production and market development. Thus, the scope of work for Applicant(s) includes but is not limited to:
  • Pelletisation facility:
    • Applicant(s) should be capable of setting up an entire pelleting plant for agriculture crop residue, mostly paddy straw, with a minimum production capacity of 500 kg pellets per hour and ensure its sustainable production. Applicant(s) should strictly adhere to the pellet’s minimum technical specifications as stated in the RFP document.
  • Managing the resources:
    • Applicant(s) should assure the full functionality and operation of the pellet plant with available, competent, and sufficient human resources, and well-trained operators and maintenance staff.
  • End-use:
    • Pellets produced by the Applicant(s) must adhere to the defined specifications and be used by industries or enterprises (SMEs/MSMEs) to substitute 100% fossil fuel usage or in co-firing substituting the coal/fossil fuel partially.
  • Partnership commitment:
    • Applicant(s) should commit to at least 3 years’ partnership with ICIMOD for the pellet production and supply to diverse types of industries and enterprises.

Funding Information

• ICIMOD shall be contributing partial financing and the necessary technical support to the selected Applicants(s) as seed funding to ease the procurement, installation, and commissioning of the required pelleting plant. Details of the technical and financial support provided shall be underlined in the contract.
• The Applicants(s) should provide the financial quote with the breakdown of all the costs and include the tax in the budget:
  • Breakdown of other costs, unit, quantity, rate.

Eligibility Criteria

• Interested Applicant(s) must meet the following criteria to be eligible for consideration:
  • Must be a registered company or firm with a proven record in industrial operation and manufacturing practices.
  • Must demonstrate financial stability and capacity for the investment needed for the installation and commissioning of the pellet plant which meets the required minimum production quantity and standards.
  • Must be willing to abide by ICIMOD’s production target and end-use guidelines for at least 3 years
  • Must provide a manufacturing and end-use plan for the agricultural crop residue/paddy straw pellets.
  • Must provide a detailed timeline (from procurement to commissioning) including the subactivities to be undertaken, including the areas where Applicant(s) require the technical assistance of ICIMOD.
  • Must have a sufficiently skilled workforce capable of commissioning and operating the pellet plant to produce agricultural crop residue/paddy straw pellets. The workforce should be willing to implement knowledge and follow instructions shared during capacity building on pellet production and organising the production floor. The workforce should be GESI friendly and inclusive as much as possible.
  • Must demonstrate financial stability and the capability to maintain an inventory of the minimum required spare parts required for uninterrupted agricultural crop residue pellet production.
  • Must agree on the payment modality of ICIMOD, while receiving the seed funding.

Submission Requirements 

• Interested Applicant(s) are requested to submit their RFP, including the following details:
  • A cover letter expressing interest in providing specific services to ICIMOD.
  • Company profile: Including company background and years of experience in the manufacturing/production sector.
  • Technical proposal: Detailed description of the pellet plant, including technical specifications, materials, features, and compliance with the required standards as mentioned in the annex.
  • Financial proposal: Costs for the pellet plant with detailed breakdown of costs for supply, installation, commissioning, capacity building for employees, and the terms of payment to the pellet plant supplier.
  • Available land: Proof of availability of the sufficient land area for pellet manufacturing.
  • Project timeline: Estimated time required for installation and commercial commissioning of the pellet plant.
  • Organisation profile: Applicant(s) are requested to provide detailed information of their organisation, describing the nature of their existing business, field of expertise, certifications, and accreditation.
  • Company Registration and VAT certification
  • Tax clearance of FY 2079/80 or 2080/81 (if applicable).

For more information, visit ICIMOD.