Kyiv City Public Transport Project – Metro Loan - Financial And Operational Performance Improvement Programme

Procurement ref:




Business sector:

Municipal and environmental infrastructure

Funding source:

To be confirmed

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

29 May 2015

Closing date:

26 Jun 2015   at  14:00   Kyiv

CLARIFICATIONS ISSUED ON 5 JUNE 2015: (i) the Terms of Reference are available through the link provided below (ii) interested consultants are invited to propose their approach and methodology to the assignment; (iii) shortlisting criteria and respective weightings are revised (see Important Note 2)
Executing Agency (Client): Kyiv Metropolitan
Project Description: 
The City of Kyiv (the “City” or “Kyiv”) with the population of 2.8 million people is the capital of Ukraine and is a financial, commercial, political, scientific and cultural centre. The City is currently receiving financing from the European Bank for Reconstruction and Development (“EBRD” or the “Bank”) for the Kyiv City Public Transport project (the “Project”). The Project includes loans to three municipal public transport companies in aggregate amount of EUR 115 million, secured by the guarantee from the City: (i) EUR 60 million loan to KyivPastrans to procure new buses and trolleybuses; (ii) EUR 40 million loan to KyivMetro to procure new metro wagons and (iii) EUR 15 million loan to KyivDorservice to finance traffic management solutions in the City. The KyivMetro project is completed while KyivPastrans and KyivDorservice are in implementation stage.
Circa 1.078 million passengers per annum are carried by the public transport systems in the City. Metro services are the backbone of the public transport system carrying about 47 per cent of all public transport demand. Trams and trolleybuses carry 390 million passengers, while buses carry 179 million passengers. The public transportation network was planned with the objective of finding a balance between available budgets for essential mobility needs, and ensuring high capacity service on the core corridors. The system includes 3 metro lines, 20 tram routes, 38 trolleybus routes, and 140 bus and minibus routes. Most of the minibus routes are operated by private operators. There is currently no functional integrated electronic ticketing system in place.
The City coordinates transport service supply through licensing and tariff setting and monitors the provision of services through a Central Dispatching Service. Urban transportation services are the responsibility of the City’s Transport Department for Public Services. 
The Metro as well as tram and trolleybus services will remain an essential service for inhabitants with lower income and those eligible for concessionary fares. Kyiv Metro and Kyiv Pastrans are expected to retain their market share and the role as the backbone of the transport system, providing frequent and relatively higher capacity services at more affordable prices.
Kyiv Metropolitan, a public transport company wholly-owned by the City of Kyiv, (the “Company”) is responsible for the provision of underground services. The underground infrastructure includes 3 lines (67.6 km long) with 52 stations, 122 escalators, three depots and 824 metro wagons. The Company employs around 7,645 people.
The Kyiv City Council sets tariffs for public transport services (until last year with approval at the Ministry of Infrastructure level, a practice that has now been discontinued). The tariffs were increased 2 times starting from February 2015. A single flat-rate metro ticket costs UAH 4 (EUR 0.16) significantly below prices of either Warsaw (EUR 1.05) or Sofia (EUR 0.51). A single flat-rate tariff for public on the ground transportation has also been increased 2 times to UAH 3 (EUR 0.13) which is also significantly below the European levels. The concessionary passenger fares are funded from the State and Municipal budget (with delays and insufficiently). students are co-funded by the municipal budget covering 50 per cent of the full price.
The Company is currently developing a reorganisation plan focused on key service delivery indictors and efficiencies.  The Bank’s financing is focusing on renewal of the rolling stock but is conditioned upon the reorganisation plan being timely implemented and as part of the project, the Company will have to improve its corporate governance, maintain financial ratios and other covenants of the legal agreements.
Assignment Description: 
The Company wishes to engage a Consultant (the “Consultant”) to help develop and implement the reorganisation aimed at improving efficiency and financial sustainability of its operations.
The Consultant shall assist the Company in improving its commercial standing, service and environmental performance by helping to identify and implement the necessary corporate, financial and operational improvements required to meet the related covenants included in the EBRD finance documents and to implement the reorganisation. This will be achieved via the development and implementation of the FOPIP and of a detailed strategy to roll out the reorganisation. The Consultant shall also assist the Company in implementing the reorganisation and to develop short and medium-term focused corporate development plans and to improve their corporate planning capacity to assist their ongoing transition towards becoming self-sustaining entities and commercial operations.
The selected Consultant is expected to perform the following tasks:
  • assist the Company in identifying and implementing the necessary corporate, financial and operational improvements, including the Reorganisation, to meet the related covenants included in the EBRD finance documents. This will be achieved via the development and implementation of a Financial and Operational Performance Improvement Programme (“FOPIP”);
  • assist the Company in developing and implementing a short to medium term focused Corporate Development Plan (“CDP”) and corporate planning process, so it may continue its transition towards an entirely commercial operation;
  • propose amendments to the existing Public Service Contract (“PSC”) and assist the Company with negotiations and signing of the amended PSC with the City.
Terms of Reference for the Assignment are available from this link.
Status of Selection Process: Interested firms or group of firms are hereby invited to submit expressions of interest.
Assignment Start Date and Duration: The Assignment is expected to start in Q3 2015 and has an estimated overall duration of 12 months.
Maximum Budget available for the Assignment: EUR 200,000 (exclusive of VAT).
The Consultant must determine whether any indirect taxes/VAT are chargeable on the proposed services and state the basis for such. If any indirect taxes/VAT are payable, the Client will have to pay indirect taxes/VAT element to the services directly to the Consultant unless otherwise agreed.
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 preferably previous project experience in delivering financial and operational performance improvement programmes to transport companies responsible for provision of underground services.
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 project manager, accompanied by both key and supporting experts (the “Experts”). It is expected that the team will include a resident team leader, who will spend a significant portion of the Assignment working on site.
The Consultant’s team is expected to include the following disciplines:
  1. project management;
  2. financial and operational;
  3. public transport;
  4. management and business planning;
  5. environmental; and
  6. legal expertise with expert knowledge of Ukrainian legislation.
As the key to successful outcome of the assignment is participation of the Company staff in development of the work, the required Consultant’s presence in the field is 80%.
It is expected, that the Consultant team will include both foreign and local experts. The Consultant team will be able to efficiently operate in Ukrainian and English.  
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;
(b) details of similar experience of firm or group of firms and related assignments 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) proposed approach and methodology;
(d) 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.
(e) Completed Contact Sheet, the template for which is available from the following web-link:
The expression of interest shall not exceed 20 pages (excluding CVs and contact sheet).
One original and two copies, in English, and two copies of the expression of interest in Ukrainian, shall be submitted to the Client in an envelope marked “EXPRESSION OF INTEREST for Kyiv City Public Transport Project – Metro Loan - Financial And Operational Performance Improvement Programme”, to reach Client not later than TBC. The expression of interest should also be submitted electronically.
A copy of the expression of interest in English and Ukrainian should also be submitted electronically to the EBRD’s contact person by the same due date.
The Client Contact Person:
Maksim Demchenko, Director of the Department of Economy and Labour
Communal enterprise “Kyivskiy metropolitan”
03056, Kyiv, prospekt Peremohy, 35
Tel: +38 044 238 44 09
Fax: +38 044 238 50 17
The EBRD Contact Person:
Larissa Gosling
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 6338
Fax: +44 20 7338 7451
Important Notes:
1. 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.
2. Shortlisting criteria and respective weightings are:
    1. Firm’s experience in similar assignments in the urban transport sector  - 25%
    2. Firm’s experience of working in Ukraine and the region - 15%
    3. Proposed approach and methodology – 10%
    4. CVs of key experts with relevant experience as per the Consultant Profile Section:
    • Key Expert 1: Project Manager – 15%
    • Key Expert 2: Financial Expert – 15%
    • Key Expert 3: Public Transport Expert - 15%
    • Other Key Experts– 5%