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Kazakhstan: Kostanay Water Project - Feasibility Study



Business sector:

Municipal and environmental infrastructure

Funding source:

Not Yet Determined

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

22 May 2015

Closing date:

22 Jun 2015   at  23:59   London

Access eSelection

Please note that the description of key experts under Consultant Profile has been updated as follows:
Resource Efficiency Expert, experienced in introduction of modern energy efficient technologies and effective management technics in water and waste water treatment.

Assignment Description:
The Akimat of Kostanay Oblast (the "Oblast Akimat") has approached the European Bank for Reconstruction and Development (the "Bank" or "EBRD") with a request to assess the possibility of financing the modernisation and upgrade of the water supply and wastewater infrastructure in the City of Kostanay (pop. 220,000) (the "Project").

The State Communal Enterprise "Kostanay Su" (the "Company") is a potable water supply, distribution and wastewater treatment company 100 per cent owned by the state, the Akimat of the city of Kostanay (the "City Akimat") in the Republic of Kazakhstan.

The Company was established in 1957 and since then was reorganised several times, last time in 1999. Currently, the Company maintains 505.32 km of the water supply pipeline and 369.14 km of the sewage network. The overall Company’s depreciation ratio is about 70 per cent causing a high level of technical losses. Currently, the water supply metering coverage is 88.8 per cent.

The Project’s priority investment programme (the "PIP") is estimated at around KZT 3.4 billion (EUR 13.9 million) where the Bank is planning to provide a senior loan of up to KZT 2 billion (EUR 8.4 million). The City and the Oblast Akimats, supported by the Government of Kazakhstan ("GoK"), are expected to co-finance the Project with the capital grant of around KZT 1 billion (EUR 4.2 million). The final amount of the PIP will be finalised as a result of the Project’s feasibility study findings, however the preliminary assessment suggests the following investment components to be part of the PIP: (i) modernisation of the wastewater pumping stations; (ii) modernisation of the water intake facilities, (iii) partial rehabilitation of the water and wastewater networks, and (iv) procurement and installation of individual and bulk water meters and associated equipment.

The Bank wishes to engage a consultancy firm (the "Consultant") to prepare a comprehensive feasibility study (the "FS") to determine the PIP developed from a long-term investment strategy, and evaluate its benefits, including assessing its environmental and social feasibility (the "Assignment").

The overall objective of the Assignment is to prepare a Project Feasibility Study which the Bank can use to appraise the Project and take a decision on the prospective financing. The feasibility study shall be in line with international requirements for such studies.

Specifically, the Consultant’s tasks under the Assignment shall include, inter alia:

Task 1: Baseline study: this task involves the review of the present management practices of the Company and status of the water and wastewater services in the City to identify and assess any risks that are associated with the Company and their existing operations. This review shall allow the Bank to better understand the present situation in institutional, legal and financial, as well as technical and environmental and social terms. The Study shall also identify respective needs and concerns of different disadvantaged groups and/or those with less voice, such as women, to be addressed in the design, implementation, and monitoring and evaluation of the project.

Task 2: Technical assessment: this task includes technical assessment of the water supply services and water supply system, water treatment, wastewater services and wastewater system, wastewater treatment, sludge management and disposal.

Task 3: Long-term investment strategy: the objective of this task is to outline a long-term investment strategy which would lead to least cost improvement of water and wastewater services within existing financial constraints, taking into account the anticipated impacts of climate change.

Task 4: Priority investment programme (PIP): this task envisages to outline the strategic priority investment programme. The Consultant shall present, justify and develop in more technical detail the PIP for the period of 3 years, i.e. the period of 2016-2018.

Task 5: Financial analysis: this task envisages the Consultant to conduct its own financial analysis to obtain new data or verify the existing data, whenever necessary. This should focus on the recent trends in revenue growth, profitability, working capital, financing and investing activities.

Task 6: Environmental and social assessment: this task requires the Consultant to: conduct Environmental and Social Assessment and Environmental and Social Audit; develop Environmental and Social Action Plan (ESAP) and Stakeholder Engagement Plan (SEP); prepare Non-Technical Summary (NTS)

Status of Selection Process: Interested firms or groups of firms are hereby invited to submit expressions of interest.

Assignment Start Date and Duration: The Assignment is expected to start in July 2015 and last for up to 16 weeks. Subject to availability of funding, the performance of the selected Consultant and the specific needs of the Bank the Assignment may be extended beyond the current scope.

Maximum Budget available for the Assignment: EUR 251,000; 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 special status of the Bank 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: It is expected that the contract will be financed through the EBRD’s donor funded Technical Cooperation Funds Programme.

Eligibility: There are no eligibility restrictions.

Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with previous project experience related to:
- Conducting feasibility studies, specifically institutional and legal framework aspects, environmental and social requirements; local financial management standards, professional standards of technical knowledge preferably in the water and wastewater sector.
- Conducting water and wastewater sector assignments in the region, preferably for International Finance Institutions (IFIs) or similar.

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 and consist of the following key experts:
• Project Manager/ Team Leader with a university degree or equivalent qualification preferably, not less than15 years professional experience in the field of water supply and wastewater management, with comprehensive experience of similar assignments in in Eastern Europe or the CIS, as well as in institutional and commercial management of water/wastewater companies. He/she should demonstrate management and administration experience, including experience with procedures of IFIs. The large number of different tasks and the complexity of administrational procedures require a permanent presence of the Project Manager in the Country during the project period of intensive work on preparation of the FS.
• Financial specialists with knowledge of the public financing and modelling.
• Technical specialists and water and wastewater engineers.
• Environmental and Social experts with experience in Environmental & Social Impact Assessments and Environmental & Social due diligence, health & safety, stakeholder engagement, public consultation and disclosure in the local context, gender and inclusion expertise, and/or resettlement expertise, in water/wastewater sector with experience of similar assignments and with recent track record in the region.
• Climate change expert with experience in evaluation in climate change.
• Institutional expert with experience of similar assignments.
Resource Efficiency Expert, experienced in introduction of modern energy efficient technologies and effective management technics in water and waste water treatment.
• Local experts with good communication skills and evidenced technical knowledge of water supply and wastewater.

The Consultant shall engage Russian speaking staff on their team or arrange for translation/interpreting when necessary.

Submission Requirements: In order to determine the capability and experience of Consultants seeking to be selected for this Assignment, the information submitted should include the following:

1. Company/group of firms’ profile, organisation and staffing (max. 2-4 pages).

2. Details of previous project experience or similar 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 (if different from duration) , main activities, objectives.

3. 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.

4. Completed Consultant Declaration Form and Contact Sheet, the template for which is available from the following web-link:

The above information should not exceed 25 pages excluding CVs and contact sheet.

The complete expression of interest (including CVs, Consultant Declaration and Contact Sheet) should be submitted, in English, electronically through e-Selection, to reach the Bank not later than the closing date and time. The expression of interest shall be one file (pdf). The EBRD reserves the right to reject applications of firms submitting more than one file. Only if the permissible file size is exceeded (4MB), the Consultant may split the expression of interest into further files.

EBRD Contact Person:
Sarah Platt-Smyth
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
United Kingdom
Tel: + 44 20 7338 8518
E-mail: (submissions should be sent through eSelection and NOT to this email address.

Important Notes:
1. Selection and contracting will normally be made from responses to this notification. The consultant will be selected from a shortlist, subject to availability of funding.
2. The evaluation criteria are as follows:
1. Firm demonstrates preferably 10 years experience in developing feasibility studies for IFIs and a good knowledge of IFI procedures and rules on public procurement and disbursement policies.– 10.0
2. Firm demonstrates deep knowledge of the water/wastewater sector, with international experience of not less than 10 years, specifically institutional and legal framework aspects, environmental and social requirements; local financial management standards, professional standards of technical knowledge internationally as well as in the region.– 30.0
3. CV’s of key experts.– 60.0

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