Infrastructure Regulation and Tariff Policy Development: Pilot Projects - Implementation of electricity distribution pilot project - TCRS 556



Business sector:


Funding source:

EBRD Shareholder Special Fund

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

18 Dec 2015

Closing date:

15 Jan 2016   at  23:59   London

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Project Description:

The Government of Kazakhstan has been committed to a broad economic reform program. The European Bank of Reconstruction and Development (the “EBRD” or the “Bank”) plays an important role in facilitating and implementing the reforms by providing technical assistance. The Government of Kazakhstan addressed the EBRD with the request to provide technical assistance on reforming the tariff policy and regulatory framework for natural monopolies and dominants in infrastructure sector. The Bank approved the corresponding technical cooperation project (the “Tariff TC”) with the objectives to provide assistance to the authorities of Kazakhstan in reforming the existing system of tariff regulation for natural monopolies and dominants in infrastructure sectors, adopting a modern and transparent framework for regulation, as well as strengthening the institutional powers and means to implement and administer such framework. As of October 2015, the Bank has completed Phase 1 of the Tariff TC by providing the Government of Kazakhstan with recommendations on improving the tariff policy and regulatory framework. The consultants and the Bank developed a long term tariffing policy for the Government of Kazakhstan; reviewed the legal framework for tariff regulation; proposed a legal action plan in order to enact/implement the recommendations; and presented precise and concrete recommendations for the strengthening of the institutional base and the revision of policies, laws and implementation practices/methodologies, together with implementation action plans for the key aspects of those recommendations.

The Government of Kazakhstan has agreed with these recommendations and requested their actual implementation on the basis of the pilot projects in the areas of district heating, airport, seaport, electricity distribution and water, which will constitute Phase 2 of the Tariff TC. The pilot company (the “Pilot Company”) for the pilot project in the electricity distribution sector will be identified and confirmed by the Government and EBRD prior to commencement of the assignment.

Assignment Description:

The Bank is now seeking to engage a consultant (the “Consultant”) to provide undertake the following tasks:

Task 1: Prepare Regulated Asset Base (RAB) valuation methodology and implement it;

Task 2: Prepare WACC methodology and implement it;

Task 3: Eliminate normatives, determine appropriate costs (fixed and variable costs) and implement new cost methodology;

Task 4: Assist in planning of costs;

Task 5: Prepare investment program review and approval methodology. Define investment program criteria. Implement new investment program guidelines;

Task 6: Calculate tariffs based on investment program and proposed methodologies;

Task 7: Determine and calculate key efficiency, reliability and quality indicators for the pilot company;

Task 8: Development of activity based costing methodology and assisting in its implementation;

Task 9: Prepare strategic/business plan of pilot company (including principles for future investments);

Task 10: Determine subsidies for final consumer in the sector;

Task 11: Prepare program for the implementation of metering devices for pilot company in the sector;

Task 12: Review and provide comments to methodologies prepared by other consultants (if required);

Task 13: Assessment of pilot projects’ results;

Task 14: Development, preparation, support and assistance in approval of legislative amendments.

The Consultant will work closely with the legal consultant and the general consultant who will be organizing consulting work across the pilot projects in all of the above referenced sectors, monitoring the work of sector consultants and implementation of pilot projects, supporting regulator and pilot companies in implementation, ensuring information exchange and flow among various stakeholders during the whole project, and ensuring that work and recommendations of sector consultants are consistent across sectors and are in line with recommendations made in Phase 1.

Assignment Duration: The duration of the assignment is expected to be up to 18 months. However, the Consultant is expected to provide support and consultations via e-mail, telephone and video calls to the Government and EBRD until the final stage of passing and adopting proposed amendments to the legislation.

Status of the selection process: Interested firms or group of firms are hereby invited to submit expressions of interest.

Maximum Budget Available for the Assignment: EUR 500,000.00 (exclusive of VAT). The budget for the assignment may be extended subject to the operational needs of the Bank, satisfactory performance of the consultant and availability of funding.

The amounts above are all 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: The assignment will be financed by the EBRD Shareholder Special Fund.

Eligibility: There are no eligibility restrictions.

Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with extensive experience in developing, managing and implementing policy reforms in the Bank’s countries of operations (“CoO”), preferably in the electricity distribution sector. It is expected that the assignment will be led by an appropriately qualified team leader, accompanied by supporting experts. Based on the fields of expertise and the tasks mentioned above, the team of the consultant should consist of at least the following international and local key experts:

- Key expert 1: Team leader: a senior manager with extensive supervisory experience and knowledge sufficient to manage and deliver positive overall results of the assignment, results of Pilot Company, results to the Government of Kazakhstan and EBRD, overall coordination among various consultants, stakeholders and clients;

- Key expert(s) 2: One or two senior sector experts with overall sector knowledge and practical experience in reforming tariff systems;

- Key expert(s) 3: Local experts with practical experience in the sector in Kazakhstan, with good knowledge of technical processes, operations, finance and regulation;

- Key expert 4: Tariff regulation specialist with the relevant practical experience in tariff regulation agencies;

- Key expert 5: Accounting specialist with experience and knowledge sufficient to deliver quality of accounting data and cost determination (fixed versus variable), as well as create accounting databases;

- Key expert 6: Organizational/institutional specialist responsible for every day communication and various details.

The Team leader and majority of the Consultant’s key experts should be fluent in both English and Russian.

The Consultant’s key experts should be available to spend the majority of the time working on the assignment in Astana and in the city where the pilot company is located.

It is preferable that the Consultant has a local presence in Astana with video-/teleconferencing capacity.

Submission Requirements: Interested firms or groups of firms are hereby invited to submit expressions of interest.

In order to determine the capability and experience of consultants seeking to be shortlisted, 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) 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:

Failure to provide the duly completed and signed Consultant Declaration may result in the applicant being disqualified from the selection process.

The expression of interest shall not exceed 20 pages (excluding CVs, Consultant Declaration and contact sheet).

The complete expression of interest (including CVs, completed Consultant Declaration and Contact Sheet) should be submitted in English electronically through eSelection to reach the Bank not later than the closing date and time specified above. The expression of interest should be one file (searchable .pdf or Word, not exceeding 4MB) to be uploaded in eSelection. The EBRD reserves the right to reject applications from 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. DO NOT send expressions of interest to the EBRD’s contact person.

EBRD Contact Person:

Marina Matushina

Advisor, Technical Cooperation

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

Tel: +44 20 7338 6577


Important Note: Following this Invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals. Consultant selection and contracting will be subject to availability of funding.

Shortlisting criteria and respective weightings are:

1. Firm’s specific experience and capability related to the assignment, including experience in developing, managing and implementing policy reforms in the Bank’s countries of operations, preferably in the electricity distribution sector


2. Qualifications and competence of key experts (as described in section Consultant Profile above)


3. Local presence, including local presence of key experts during the assignment duration and their Russian language capabilities, as well as firm's local presence with video-/teleconferencing capabilities in Astana