Competitive Dialogue Tender Notice: 178/G/CD/2026/2027

Provision of operation and maintenance services of oxygen PSA plants in Rwanda Hospitals

1. INTRODUCTION
Medical oxygen is an essential medicine for which there are no alternatives. It is required to treat chronic and acute conditions and to conduct safe surgeries and oxygen is included on the World Health Organization (WHO) list of Essential Medicines. In Rwanda, it is designated by the Ministry of Health (MOH) of Rwanda as an essential inhalation medicine.

The public supply of medical oxygen should be sustained and reach all those in need. Due to Government of Rwanda (GOR) investments, 28 of 55 public health facilities currently have one or more oxygen production plants on site. Overall, these plants combined have a maximum oxygen production capacity of 20,300,000 L per day or approximately 406,000 cylinders (50L) per month.

Recent investments by the GOR and its partners have increased the oxygen production capacity of public hospitals and most of public health facilities are equipped with medical gas piping systems for easy and safe delivery of medical oxygen to the bedside. Although a remarkable progress, there are still some barriers to be addressed; in the production, and distribution including the PSA plants maintenance.

The GoR, through the Ministry of Health (MoH), Rwanda Biomedical Centre (RBC), Clinton Heath Access Initiative (CHAI) and Rwanda Medical Supply (RMS), intends to establish a Partnership under an Operate–Maintain–Replace (OMR) model to ensure sustainable, equitable, and reliable access to medical oxygen across public health facilities in Rwanda.

The partnership will leverage the existing national network of PSA oxygen plants distributed across public hospitals and associated health facilities. The selected contractor(s) shall assume responsibility for operation, maintenance, distribution, lifecycle management, and replacement of designated oxygen production assets while ownership of the assets remains with the GOR. This TOR provides a framework to guide the contractor(s) in the respective scopes of work to ensure continued and reliable access to oxygen.

The Competitive Dialogue process is being undertaken with selected supplier(s) to refine the final technical, operational, commercial, legal, and contractual structure before issuing the final tender and contract award..

2. Objective of the Competitive Dialogue

The objective of the Competitive Dialogue is to engage oxygen PSA plants’ suppliers in structured discussions to refine and optimize the proposed model and support the development of a bankable, sustainable, and performance-based procurement structure.

Specifically, the dialogue aims to:

• Validate the operational feasibility of the OMR model;
• Determine optimal lot configuration and hub allocation arrangements;
• Define efficient oxygen production and distribution models;
• Establish sustainable operation, maintenance and asset replacement mechanisms;
• Define measurable service levels and key performance indicators (KPIs);
• Establish surge preparedness and emergency response mechanisms;
• Ensure affordability, value for money, and long-term sustainability;
• Finalize the contractual and payment framework.

3. SCOPE OF PROCUREMENT

3.1 Operation of PSA Oxygen Plants

The operator shall:

• Operate designated PSA oxygen plants and associated infrastructure;
• Optimize PSA plants placement across the network
• Ensure continuous oxygen production in accordance with required purity and quality standards.;
• Manage plant staffing, operational scheduling, utilities coordination, and production planning;
• Plan the demand and supply of medical oxygen its designated areas
• Ensure compliance with all applicable health, environmental, and safety regulations.
• Operator shall have the minimum national oxygen reserve stock and filled backup cylinders

3.2 Maintenance and Asset Management

The operator shall:

• Conduct preventive, corrective, and emergency maintenance for all assigned equipment;
• Maintain PSA plants in accordance with manufacturer standards and specifications;
• Ensure availability of spare parts and consumables;
• Develop and implement lifecycle management plans for all assigned assets;
• Replace end-of-life equipment and major components in accordance with agreed contractual requirements;
• Maintain accurate maintenance logs and asset registers.
• The operator shall return all government-owned assets in good operating condition, subject to independent technical verification

3.3 Oxygen Distribution Services

The operator shall:

• Manage end-to-end oxygen distribution through the designated hub-and-spoke network;
• Invest in cylinders, filling equipment, and distribution fleet (All sizes of oxygen cylinders, trucks, trolleys,)
• Ensure timely refill and delivery of oxygen cylinders to all assigned health facilities up to primary health level facilities including ambulances.
• Optimize transport routes and delivery schedules;
• Maintain adequate cylinder tracking and inventory management systems;
• Ensure uninterrupted supply within the agreed service coverage area.

3.4 Quality Assurance and Regulatory Compliance

The operator shall:

• Ensure oxygen purity meets applicable medical standards;
• Maintain calibration and testing systems for quality verification for both PSAs and cylinders;
• Comply with Rwanda FDA, MoH, RBC, and other applicable regulatory requirements;
• Establish quality assurance protocols and incident reporting mechanisms.

3.5 Risk Mitigation for Emergency Preparedness 

• The contingency framework will include two levels of reserve oxygen stock. First, each PSA plant operator shall maintain a minimum reserve equivalent to 100 cylinders of oxygen at each lot.
• By design, the contractor will maintain a reasonable number of competing PSA plant operators to promote supply security, operational resilience, and market stability. No merger or monopoly arrangement shall be permitted under this framework, and no single oxygen PSA operator shall supply more than 35% of the national public-sector medical oxygen demand. 
• The contractor will also require mandatory performance bond arrangements throughout the contractual period. This mechanism will protect both the GOR and the PSA plant operators while promoting sustainable and reliable medical oxygen supply through a partnership model based on mutual accountability and shared benefits. 
• Operators shall maintain adequate stocks of preventive and corrective maintenance spare parts, as well as emergency cylinder filling and backup supply mechanisms. Considering the lifespan and replacement schedules of critical equipment and components, operators will be required to plan and execute maintenance and replacement activities proactively to avoid any interruption in medical oxygen supply. 
• While optimization is a primary objective, any relocation, consolidation, or repurposing of PSA plants shall be carefully assessed and justified based on the availability of adequate and reliable alternative sources of medical oxygen supply. No movement of PSA infrastructure shall occur without comprehensive contingency planning, formal risk assessment, and mutual agreement with the designated representative of the GoR. 

3.6 Financing

• Cover all needed CAPEX to run the network including but not cylinders, distribution trucks, relocating PSAs, replacing PSA, supply chain management tools
• Cover all operational costs needed to operate the production including but not limited to staffing, maintenance and repair of equipment, power supply, and other utilities, administrative and office costs.
• Revenue will be recovered from supplying oxygen to health facilities per cubic meter
• Oxygen will be delivered on standardized tariff per cubic meter delivered to health facility

4. Key Discussion Areas During Competitive Dialogue

The Competitive Dialogue process will focus on the following areas:

4.1 Technical and Operational Structure

• Hub allocation and lot structure;
• Management of co-located PSA facilities;
• Production optimization strategies;
• Fleet and cylinder management systems;
• Transition arrangements from current operational structures.

4.2 Commercial and Financial Structure

• Payment mechanisms;
• Output-based financing arrangements;
• Tariff structure and affordability considerations;
• Asset replacement financing mechanisms;
• Revenue sustainability and commercial viability.

4.3 Contractual and Risk Allocation

• Allocation of operational, maintenance, and demand risks;
• Force majeure and emergency response obligations;
• Performance guarantees and penalties;
• Contract duration and renewal provisions.

4.4 Performance Management

The dialogue shall define KPIs including but not limited to:

• Plant uptime;
• Asset condition score
• Oxygen purity compliance;
• Delivery lead times;
• Order fulfillment rates;
• Stock out days per facility
• Cylinder turnaround time
• Reporting compliance
• Safety incident rate
• Maintenance response times; Emergency response readiness
• Strategic stock level (days of cover)
• Spare part stock availability

5. Deliverables Expected from Bidders

Shortlisted bidders participating in the dialogue process shall be expected to provide:

• Initial technical and operational proposals;
• Proposed lot allocation and hub management approach;
• Proposed maintenance and lifecycle management strategy;
• Proposed distribution and logistics model;
• Proposed staffing and technical support arrangements;
• Preliminary commercial and financial model to the different cost centers;
• Risk allocation recommendations;
• Proposed service level agreements and KPIs;
• Emergency preparedness and business continuity plans;
• Recommendations for contract structure and implementation arrangements.

6. Eligibility requirements

Interested bidders are required to submit the following documents:

1. A letter addressed to Rwanda Medical Supply expressing the interest in participating in the oxygen PSA plant O&M PPP model
2. A signed technical proposal of PSA plant operation and maintenance approach
3. Valid company certificate of incorporation/Business registration certificate
4. Valid tax clearance certificate
5. At least 3 years experience in the operation and maintenance of PSA plants, proven by 2 good completion certificates or contracts, with a combined cost not less than 500,000,000 Frw
6. Requirements for Engineers: 2

• Bachelor’s degree in any of the following fields: Electrical Engineering, Electronics Engineering, Biomedical Engineering proven by a copy of the degree certificate
• At least 2 years’ experience in operation and maintenance of PSA plants
• Update curriculum vitae

1. Requirements for technicians: 4

• Diploma in any of the following fields: Electrical Engineering, Electronics Engineering, Biomedical Engineering proven by a copy of the degree certificate
• At least 1 years experience in operation and maintenance of PSA plants
• Update curriculum vitae

1. Local bidders are required to provide any PSA plant manufacturer authorization

7. Duration of the Contract

The anticipated contract duration shall be discussed during the Competitive Dialogue process and may include provisions for renewal based on performance and achievement of contractual obligations.

8. PPP Framework

• The framework will be overseen by a MOH designated multidisciplinary Performance Review Technical Working Group (TWG). The TWG will support the RMS designated Contract Manager in managing overall contract(s) performance, evaluating key performance indicators (KPIs), reviewing compliance with contractual obligations, including maintenance and asset replacement requirements, and providing technical recommendations on contractual decisions and corrective actions where necessary.
• The TWG will comprise representatives from the MOH, Rwanda Biomedical Centre (RBC), RMS, the Clinton Health Access Initiative (CHAI), and other development partners supporting the GOR in strengthening the national medical oxygen ecosystem. The TWG will support the proper transition, operational oversight, and asset management of the oxygen PSA plants throughout the PPP lifecycle.
• In collaboration with the host institutions and relevant government entities, the TWG will also follow up on the continuity of supply arrangements and ensure sustained access to essential utilities and infrastructure required for uninterrupted PSA plant operations, including electricity, water, and network connectivity. The TWG will serve as the technical coordination and oversight arm for the effective implementation of the PPP framework, from transition and operationalization through final contractual completion.
• Working closely with the designated Contract Manager, the TWG will support the establishment and effective implementation of standardized systems for oxygen measurement across production, storage, and distribution operations, as well as quality assurance, monitoring, reporting, and real-time operational oversight. The TWG will also promote and support data-driven performance management, transparency, accountability, and continuous quality improvement to ensure a sustainable, efficient, resilient, and uninterrupted national medical oxygen supply system.

9. Governing Framework

The Competitive Dialogue and subsequent procurement process shall be conducted in accordance with:

• Rwanda Medical supply procurement policy;
• Rwanda Medical Supply PPP regulatory framework;
• Applicable health sector regulations and policies;
• Any additional guidance issued by the Government of Rwanda.

10. PROCUREMENT PROCEDURE

The competitive dialogue procedure will follow these key steps:

Phase I.

1. Call for Initial Proposals: Interested bidders are invited to submit the proposals in response to this tender. The documents required at this stage are specified in section VI
2. Shortlisting of Bidders: Bidders will be shortlisted based on evaluation findings of initial proposals as described in section VI.

Phase II:

1. Dialogue Phase
   RMS will conduct structured dialogues with each of the shortlisted bidders. During this phase:
   • Technical specifications will be refined.
   • Confidentiality will be maintained for all bidder-specific information unless explicitly agreed otherwise.
   • Equal treatment of all bidders will be ensured.
2. Submission of Final Offers
   After the dialogue phase concludes and specifications are finalized, RMS will invite final offers from all shortlisted suppliers.
3. Evaluation and Contract Award

Final offers will be evaluated based on the established evaluation criteria. The contract will be awarded to the most economically and technically advantageous offer.

11. SUBMISSION GUIDELINES

Interested suppliers are invited to submit initial proposals by 30/9/2026 at 10:00am local time

Submissions must be made only electronically to our confidential email: tenders@rms.rw with the subject line: “Tender for oxygen PSA plant Operation”.

For questions and clarifications, please contact rms.procurement@rms.rw with a copy to cgatsinzi@rms.rw ,jmvnkurunziza@rms.rw, jczimurida@rms.rw and erugamba@rms.rw

Done at Kigali on ........../........../2026

Dr. Loko Abraham
Chief Executive Officer