Executing Agency (Client):
Pavlodar Tram Management Company
The Client Contact Person:
Krisa Alexander, President
JSC “Tramvainoe Upravlenie Goroda Pavlodara”
140000, Indsustrial zone Severnaya, 258
City of Pavlodar, the Republic of Kazakhstan
The EBRD Contact Person:
Sophie Medert, Advisor, Technical Cooperation Team
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 7371
E-mail: mederts@ebrd.com
Project Description:
The European Bank for Reconstruction and Development (the "EBRD” or the “Bank”) has extended a senior loan of up to KZT 2.5 billion (EUR 10 million equivalent) to the Pavlodar Tram Management Company (the “Client” or the “Company”), who is fully owned by the Pavlodar Oblast Akimat (the “Oblast Akimat”). The proceeds of the Loan will be used for i) procurement of up to 25 new units of modern energy efficient trams; (ii) rehabilitation of the tram infrastructure including catenary and junctions; and (iii) balance sheet restructuring (the “Project”). The loan will be split into 2 tranches. The Project also includes co-financing of up to USD 13.5 million from the Oblast Akimat and/or the Government of Kazakhstan (the “GOK”) under the Enhanced Partnership Framework Arrangements (the “EPFA”).
Currently, public transport services in Pavlodar are supplied by independent operators that are either public or private firms. In all cases the transport operator must sign a contract with the Akimat of the City (“City Akimat”) or the bodies authorised by the City Akimat. Regular public transport services are provided with two modes in Pavlodar: road-based buses and minibuses, and rail-based trams. There is one tram operator: the Company, and 9 bus operators, including one public bus company owned by the Oblast Akimat rendering services on social regional routes.
The Project will enable the Company to address the service issues and improve its public transport services by financing priority investments for the rehabilitation and modernisation of its networks. The Project will result in increased energy efficiency, a reduction in losses, and improvements in environmental standards. This will stimulate the process of commercialisation of public transport operations in general, thus supporting the sector reforms and having a significant demonstration effect in the country.
Assignment Description:
The Company and the City now intend to retain a consulting company (the “Consultant”) to assist the Company to improve its commercial standing, service and environmental performance by supporting the identification and implementation where necessary establishment of the corporate, financial, operational and environmental management required meeting the related covenants included in the EBRD financing documents (the “Assignment”).
The main objective of this Assignment is to assist the Company to increase the institutional capacity of the Company, reform management of the fleet, including service planning, rolling stock repairs and maintenance, to switch company’s focus towards
client-oriented service provision and to create an effective, sustainable
company. Specifically, the Consultant is expected to implement the following tasks:
Task 1. Analysis of the Company’s operations and processes, i.e. the Consultant will review relevant legal framework and available reports and studies. The Consultant will document main economic and financial ratios and milestone for a period of five years and will comment of main factors that have influenced the sector and Company development. The Consultant will also provide forecast of how main rations and indicators, like salary, fuel and electricity price, inflation, unemployment, will develop in period of next 10 years.
Task 2. Assistance with preparation and signing of a Public Service Contract (“PSC”), as well as setting up the PSC supervision system, i.e. the Consultant will assist the Company in drafting, negotiating, signing and implementing the PSC.
Task 3. Development of a new organisational structure of the Company prioritising service provision quality and improving accountability of separate departments, i.e. the Consultant will prepare detailed organizational structure chart and will have properly sized and structured departments in terms of resources and reporting hierarchy. The Consultant will prepare a short explanation for scope of work of each department, justifying number of positions and quantifying resources required, including salaries, office space, equipment, IT, etc.
Task 4. Assessment of opportunities and possibilities for outsourcing of non-core activities, i.e. the Consultant will assess the
potential for outsourcing of non-core activities of the Company. The assessment should be supported and justified with a cost-benefit analysis, risk matrix and overview of the market for services selected for outsourcing.
Task 5. Preparation of a long-term business and marketing plan, including a financial model and long-term investment plan. Currently the Company has no Business Plan and planning is limited to the short term (maximum one year). The Consultant will assist the Company in preparing a comprehensive Business Plan by setting out the Company’s objectives, and how they will be achieved in a structured and timely manner.
Task 6. Enhancement of financial management and accounting system of the Company and introduction of Management Information System (MIS), i.e. The Consultant will prepare a detailed plan on improving the Company’s existing financial management processes. The Consultant will also help the Company to implement the financial management enhancement plan.
Task 7. Development of performance benchmarking system, the Consultant will develop a set of Company’s performance benchmarks. These benchmarks should have to be clearly described and measurable.
The Consultant will also co-operate with the City Akimat and, if necessary, the Oblast Akimat to implement the covenants stipulated under the signed PSA. Additionally, the Consultant shall assist the Company in the analysis of the baseline social situation of the vulnerable section of the population and the impact of the project on these groups, and in connection to this assess any impact of the project on the equality between men and women.
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 24 months.
Cost Estimate for the Assignment: EUR 200,000.00 (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 anticipated that the contract will be financed by the EBRD Shareholder Special Fund. Selection and contracting is subject to the availability of funding.
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 related to:
- Implementation of corporate development programme, preferably in the urban public bus sector;
- Implementing assignments in accordance with the procedures and rules of International Financial Institutions (or similar), such as the World Bank or EBRD preferably in the region.
The Consultant’s expert team is expected to include key experts as follows:
- Key Expert 1: Project Manager with experience in urban transport projects and experience in managing projects of the similar scope and complexity and knowledge of IFI’s (or similar) policies, procedures and standards.
- Key Expert 2: Financial Expert with experience in urban transport projects and preferably good knowledge of IFI (or similar) financial, accounting and disbursement requirements.
- Key Expert 3: Public Transport Operations and Economist with experience in urban transport sector.
- Key Expert 4: Tram Operations Engineer.
- Key Expert 5: Local Lawyer with good knowledge of the local legislation, experience in the urban transport sector and preferably good knowledge of IFI (or similar) requirements.
Submission Requirements: In order to determine the capability and experience of Consultants seeking to be shortlisted, 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:
http://www.ebrd.com/pages/workingwithus/procurement/notices/csu/contact_sheet.doc
The expression of interest shall not exceed 25 pages (excluding CVs and contact sheet).
One original and one copy of the expression of interest (hardcopy), in English and in Russian, should be submitted to the Client in an envelope marked “EXPRESSION OF INTEREST for Kazakhstan: Pavlodar Tram Project - Corporate Development Programme, TCS ID: 45959”, to reach Client not later than 23 July 2015 at 16:00 (Pavlodar time). One further electronic should be submitted to the EBRD’s contact person by email by the same due date.
Important Notes:
- 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.
- The shortlist criteria are as follows:
- Firm’s previous project experience in implementing corporate development programmes, preferably in the urban public bus sector (30%)
- Firm’s experience in procedures and rules of International Financial Institutions (or similar), such as the World Bank or EBRD preferably in the region (20%)
- CV of Key Experts (50%)
- There are two other assignments currently procured by the Client related to this assignment:
- Pavlodar Tram Project: Project Implementation Support, TCS ID 45968
- Pavlodar Tram Project - Public Transport Strategy, TCS ID: 45970
Whilst Consultants are allowed to bid for all three assignments at the same time, they will only be eligible for one contract award.
