Assignment Description
In April 2011, the European Bank for Reconstruction and Development (the EBRD or the Bank) approved the Kyrgyz Republic Water and Wastewater Framework (the Framework) for the Osh, the Jalalabad, the Karabalta, the Kant, the Talas Water and Wastewater sub-projects.
The City of Balykchy (Balykchy or the City) has subsequently approached the Bank with a request to finance the rehabilitation of the water supply and selected wastewater improvements in the City (the Project). Water supply operations in the Kyrgyz Republic are characterised by severely deteriorated assets for water supply and wastewater collection; very limited wastewater treatment; high operations and maintenance costs due to the deteriorated state of the assets; unreliable water supply; outbreaks of water borne disease, especially during the summer; and low institutional capacity to manage operationally and financially sustainable water supply services.
There is potential for systemic inclusion impact in relation to the regional inclusion gap between the capital city region of Bishkek and the small town of Balykchy. In Balykchy household connection rates to water are significantly below those in the capital region and do not meet potable quality standards, resulting in a high prevalence of water borne diseases and related negative consequences on economic opportunities. The Project could create inclusion impact on three levels: a significant increase of water connections in relation to the total population in Balykchy; continuous 24 hour supply for all connected households; and an increase of the quality of water at the end-user point for all connected households. The systemic impact could stem from scale (based on the envisaged percentage increase of connections in relation to the total population), or the replicability of the model in similar areas outside of Bishkek.
The Bank is now looking to engage a consultant (the Consultant) to carry out a feasibility study (the Assignment) which should support the assessment of the potential inclusion element of the Project by providing a baseline against relevant indicators and by developing a methodology to monitor progress throughout the project delivery and evaluation phases.
The overall objectives of the Feasibility Study are:
- to identify and establish a baseline for assessing and monitoring potential inclusion impact in relation to increased number of water and waste water connections, improved frequency of water delivery, and improvements in water quality at household level; and related health and economic benefits;
- to identify key cost restructuring elements (e.g. labour restructuring, energy cost savings, maintenance per unit of output targets etc.) and recommend reasonable loan covenants and implementation timing in this area;
- to assess the possibilities for an affordable least-cost and cost effective bankable priority investment programme (PIP) for water and wastewater infrastructure - to rehabilitate and increase the efficiency of existing systems with strong social and environmental benefits and promoting climate resilience; and,
- to ensure that the PIP fully meets EBRD’s Performance Requirements (PRs).
More specifically, the Consultant shall undertake the following tasks to achieve the above objectives:
Task 1: Undertake a baseline study including an assessment of the current conditions of water and wastewater management; and the preparation of a technical, environmental, social, and operational audit of the Company’s current water supply and wastewater facilities and operations.
Task 2: Prepare Financial Analysis and Financial Modelling to assess whether the Company will have the financial capacity to fully support its operations and to finance the Project and to comment on the financial viability of the Project as well as required financial support from the City. The critical minimum capital grant amount required to implement the Priority Investment Plan (PIP) should be stated, as well as a scenario with an ideal grant size, should there be no constraints on grant provision. The financial viability of the Company and the Project must be demonstrated by means of financial projections for the 2015-2029 period for the Company.
Task 3: Develop a Long-Term Investment Programme (LTP) to outline an affordable, least cost strategic investment programme for the period 2015-2029, which addresses the priority needs of the municipal water and wastewater systems as identified in the Baseline Study. The objective of this task is, therefore, to outline a LTIP which sets the general direction and determines the basic policies and parameters which would lead to least cost improvement of water and wastewater services (including installation of meters, if feasible) within existing financial constraints.
The outline of a strategic plan shall begin with a review and, if necessary, revision of present service objectives, policies, planning criteria and design parameters, standards and specifications regarding technological processes, equipment and materials and their E&S performance.
Task 4: Propose and justify the PIP, which should meet the following criteria: (i) high priority evidenced by high economic IRR, (ii) reasonable and achievable amounts of grant for a suitable loan/grant ratio, and (iii) debt serviced by cash flows generated internally in the Company.
Task 5: Undertake environmental and social (E&S) due diligence including an E&S audit; an E&S action plan for mitigation of the E&S impacts of the Sub-Project, climate change adaptation needs as well as improving the current environmental and social management systems and operational performance towards compliance with the EBRD’s Performance Requirements; and, a Stakeholder Engagement Plan.
Status of Selection Process: Interested firms are hereby invited to submit Expressions of Interest.
Assignment Start Date and Duration: The assignment is expected to start in Q1 2015 and has an estimated duration of 6 months.
Cost Estimate for the Assignment: EUR 280,000; Exclusive of VAT.
The consultant must determine whether any VAT would be chargeable on the services and the basis for that determination, without taking into consideration the Bank's special status as an IFI and state this to the Bank in their response to the Invitation for Expressions of Interest. To the extent that a consultant incurs input VAT on goods and services purchased in connection with the provision of services (e.g. VAT on airline ticket) which is not otherwise recoverable by the consultant from the local tax authority, the gross cost to the consultant of such expenses shall be treated as a reimbursable expense.
Funding Source: Early Transition Countries Fund (ETCF)
Eligibility: There are no eligibility criteria
Consultant Profile: Corporate services are required. The Consultant should ensure that the appropriately qualified experts are available, as required, for each of the different tasks outlined above. It is expected that the Assignment will be led by an appropriately qualified team leader/water engineer, accompanied by both key and supporting experts. Based on the fields of expertise and the tasks mentioned above, it is proposed that the team of the Consultant should consist at least of the following expatriate and local experts:
- Project Manager/Team Leader with a university degree or equivalent qualification with a minimum of 15 years professional experience in the field of water supply, with comprehensive experience of similar assignments in Eastern Europe or the CIS, and sanitation as well as in institutional and commercial management of water utilities. He/she should demonstrate management and administration experience, including experience with procedures of international financing agencies (preferably EBRD procedures). The large number of different tasks and the complexity of administrational procedures require a permanent presence of the Project Manager and/or their local team leader in the Country during the six months of intensive work on preparation of the Feasibility Study.
- Technical specialists and water and wastewater engineers;
- Financial analysts with experience of due diligence of CIS companies and extensive financial modelling experience; and
- Environmental impact assessment and planning experts with at least 5 years of experience in water and sanitation sector and experience in addressing the EBRD’s environmental & social requirements in municipal infrastructure and other similar projects.
- Social impact assessment / RAP experts with recent track record in the region (minimum 3 years of work on similar assignments).
- Expert for stakeholder engagement and public consultation with recent track record in the region.
The Consultant should integrate local professional skills/cooperate with local consulting companies, in order to provide national experience. The Consultant shall engage Russian speaking staff on their team or arrange for translation/interpreting when necessary. All experts must be independent and free from conflicts of interest in the responsibilities accorded to them.
Submission Requirements: In order to determine the capability and experience of Consultants seeking to be selected, the information submitted should include the following:
(a) brief overview of the firm/group of firms including company profile, organisation and staffing (2-4 pages);
(b) details of similar experience (project references) of firm or group of firms and related assignments particularly undertaken in the previous five years, including information on contract value, contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided, assignment budget, percentage carried out by consultant in case of association of firms or subcontracting, main activities, objectives;
(c) CVs of key experts who could carry out the Assignment detailing qualifications, experience in similar assignments, particularly assignments undertaken in the previous five years, including information on contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided, assignment budget, main activities, objectives.
(d) Completed Consultant Declaration and Contact Sheet, the template for which is available from the following web-link:
http://www.ebrd.com/pages/workingwithus/procurement/notices/csu/contact_sheet.doc
The above information should not exceed 30 pages excluding CVs and contact sheet.
The complete expression of interest (including CVs and Contact Sheet) shall be one file (pdf or Word) to be uploaded to eSelection. The EBRD reserves the right to reject applications of firms submitting more than one file. Only if the permissible file size is exceeded, the Consultant may split the expression of interest into further files.
Expressions of Interest should be submitted, in English, electronically through e-Selection, to reach the Bank not later than the closing date mentioned above. Do not send expressions of interest to the EBRD's contact person.
EBRD Contact:
Nicola Di Pietro
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 6329
E-Mail: PietroN@ebrd.com
Notes:
Note1
The selection will normally be made from responses to this notification only. Consultants will not be asked to submit a proposal. The highest-ranked Consultant will be selected from a shortlist and be invited to negotiate the contract, subject to availability of funding.
Note 2
The evaluation criteria are as follows:
1) Firm's experience in feasibility studies in the water sector - 25%
2) Firm's relevant experience in similar assignments and working with IFIs in the EBRD’s countries of operation – 15%
3) CV of Project Manager/Team Leader with experience as per Procurement Notice - 25%
4) CVs of Technical specialists and water and wastewater engineers – 20%
5) CVs of other key experts as detailed in the procurement notice – 10%
6) Association with local firm(s) and/or local experts is considered an advantage – 5%
