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Infrastructure Regulation and Tariff Policy Development: Pilot Projects - Implementation of airport 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. European Bank for 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 recommendations are to introduce RAB based tariff methodology and mid-term tariffs with some flexibility to the airports to adjust key variable costs. 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 pilot projects which will constitute Phase 2 of the Tariff TC. The pilot projects will be undertaken in the following sectors: district heating, airport, seaport, electricity distribution, water. The pilot company (the “Pilot Company”) for the pilot project in the airport sector will be Astana airport.

Assignment description:

The Bank is now seeking to engage a consultant (the “Consultant”) in order to provide assistance with the pilot project in the airport sector as follows:

Task 1: Review phase: information collection, review of the Pilot Company’s regulated charges and actual costs, review of the Regulator approach to airport tariff setting;

Task 2: Development of the new regulatory framework: fine-tune of the airport sector specific tariff methodology and legislation, including elimination of the cost normatives;

Task 3: Practical implementation of the updated airport tariff framework;

Task 4: Detailed design of the new regulatory framework set up;

Task 5: Assessment of the Pilot Company’s performance results after 1 year in practice of the new tariffs, correction of any unclear or troubleshooting aspects of the airport tariff legislation;

Task 6: Draft Terms of Reference, implementation plans, action plans for any follow up tariff framework project (any additional pilot company).

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 this 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 of Kazakhstan and the 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 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 airport 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 the EBRD, overall coordination among various consultants, stakeholders and clients;

- Key expert (s) 2: Airports experts with extensive overall sector knowledge and practical experience, as well as and knowledge of airport finance;

- Key expert 3: Expert in airport tariff systems and in RAB implementation in airport sector;

- Key expert 4: Regulation specialist with the relevant experience with existing tariff regulation;

- Key expert 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.

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.

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 below.

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 airport 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


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