THE DEADLINE FOR SUBMISSION OF EXPRESSIONS OF INTEREST IS CHANGED TO 15 JANUARY 2016 23:59 GMT
The Government of Kazakhstan has been committed to a broad economic reform program. 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 Tariff TC by providing the Government of Kazakhstan with recommendations on improving the tariff policy and regulatory framework. Key recommendations includes: (i) the introduction of the RAB based tariff methodology; (ii) the elimination of cost norms; (iii) simplifying the procedures and improve governance; (iv) approval of mid-term tariffs with a set range with pre-determined variables and (v) capacity building both for KREM and companies. 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 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. The pilot company (the “Pilot Company”) in for the pilot project in the water sector (the “Pilot Company”) will be identified and confirmed by the Government of Kazakhstan and EBRD prior to commencement of the assignment.
The Bank is now seeking to engage a consultant (the “Consultant”) to provide assistance with the pilot project in the water sector as follows:
Task 1: Prepare Regulated Asset Base (RAB) valuation methodology and implement it;
Task 2: Prepare WACC methodology and implement it;
Task 3: Eliminate cost normatives, determine appropriate costs (fixed and variable costs) and implement new cost methodology;
Task 4: Prepare investment program review and approval methodology. Define investment program criteria. Implement new investment program guidelines;
Task 5: Calculate tariffs based on investment program and proposed methodologies;
Task 6: Determine and calculate key efficiency, reliability and quality indicators for the pilot company;
Task 7: Development of activity based costing methodology and assisting in its implementation;
Task 8: Prepare strategic/business plan for Pilot Company (including principles for future investments);
Task 9: Determine subsidies for final consumer in the sector;
Task 10: Prepare program for the implementation of metering devices for Pilot Company in the sector;
Task 11: Review and provide comments to methodologies prepared by other consultants (if required);
Task 12: Assessment of pilot project’s results. Monitoring of pilot project;
Task 13: Development, preparation, support and assistance in approval of legislative amendments.
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.
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.
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 operation (“CoO”), preferably in water 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 water sector in Kazakhstan and good knowledge of technical processes, operations, finance, and regulation;
- Key expert(s) 4: Tariff regulation specialist with relevant practical experience in tariff regulation agencies;
- Key expert(s) 5: Accounting specialist with knowledge and experience sufficient to deliver quality of accounting data and cost determination (fixed versus variable), as well as create accounting databases;
- Key expert(s) 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 Kazakhstan (Astana and the city where the pilot company will be located).
It is preferable that the Consultant has a local presence in Astana with video-/teleconferencing capacity.
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.
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:
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:
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What we provide
Operations and processes
Key themes and topics
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Support for SMEs
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