Executing Agency (Client):
LVIV CITY COMMUNAL ENTERPRISE "LVIVVODOKANAL"
The Client Contact Person:
Dmytro Vankovych
Deputy Director of Economic Affairs
79017, Ukraine, Lviv, Lviv Region , office at 64 Zelena Street
Email: vanjkovych@lvk.lviv.ua
Tel: +38(032)45-34-39
Mobile:+38(050)317-45-12
Fax: +38(032)76-74-07
EBRD Contact Person:
James Yoo
Associate, Technical Cooperation Advisor
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
United Kingdom
E-mail: yooj@ebrd.com
Tel: + 44 20 7338 6369
Fax: +44 20 7338 7451
Project Description: Lviv Communal Enterprise “Lvivvodokanal” (the “Client”), a municipally owned water and wastewater utility in the City of Lviv, has approached the European Bank for Reconstruction and Development (“EBRD” or the “Bank”) to provide technical assistance for its energy efficiency priority investment programme (“PIP”) aimed at producing additional electricity and heat from biogas to be collected from sludge processed by the existing wastewater treatment plants (“WWTPs”) (the “Project”).
The overall objectives of the Project are (i) to achieve significant energy savings through use of biogas received as a result of sludge digestion process for combined production of electricity and heat; (ii) improve sustainability of the Company operations; (iii) achieve reductions in greenhouse gas emissions; (iv) reduce volume of sludge with corresponding positive effect on the environment; and (v) improve quality of wastewater going through Poland to the Baltic Sea basin.
Assignment Description: As part of the Project, The Client intends to engage a consulting company (the “Consultant”) to improve its corporate governance and financial and operational performance, maintain financial ratios and other covenants, and ensure that tariffs are reviewed periodically in order to ensure full cost recovery (the “Assignment”). The Company will also sign a Public Service Agreement with the City, which will clarify the responsibilities of the City, the Company and the customers regarding the provision of water supply and sewerage services. In fulfilment of its tasks, the Consultant will closely cooperate with other consultants (including auditors and PIU consultant) working with the Company throughout the duration of the assignment.
The overall objective of this Assignment is to improve the commercial standing of the Company and enable it to implement the Project, as well as ensure that the services are equitably provided to the end-consumers and are of a high quality. To this end the Consultant is expected to provide the following services:
- identify, discuss with the Company and with the City, and implement the necessary corporate, financial and operational improvements 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”);
- develop, negotiate with the City and adopt a Public Service Contract (“PSC”);
- assist the Company with regular water and wastewater tariff calculations and submissions to the Regulator; help the Company submit investment programmes adjustments to the Regulator;
- develop and implement a medium to long term Corporate Development Plan (“CDP”) and corporate planning process, so it may continue its transition towards an entirely commercial entity;
- analyse the impact of planned tariff increases on the end-consumers, with a particular focus on vulnerable groups, and develop guidelines for the municipality for the mitigation of any negative impacts;
- Prepare a training needs analysis in collaboration with the Client and design and deliver a training programme to improve the capacity of client staff in key areas; and
- Develop a Stakeholder Engagement Plan including a communication strategy tailored to different groups of end consumers.
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 Q2 2016 and has an estimated overall duration of 24 months.
Cost Estimate for the Assignment: EUR 230,000 (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 anticipated that the contract will be financed by the Sida-EBRD Ukraine Energy Efficiency and Environment Consultant Cooperation Fund (SWUK). 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 in corporate development programmes (including financial and operational development programmes) preferably in the municipal water and wastewater sector and in biogas projects similar in scope, nature and complexity in Ukraine and/or other CIS countries.
The budget for the Assignment is limited and although it is anticipated that the Consultant’s team shall include the following expertise with short-term support as required in other disciplines, the Consultant will need to provide the optimum work schedule for its staff to ensure sufficient resources are in place on site to manage the contracts. For this reason office backstopping should be kept to a minimum. The Consultant’s team should consist of at least the following key experts:
- Key Expert No 1: Team Leader/Water and Wastewater Expert with preferably 10 years of professional experience in the municipal water and wastewater sector for the design and management of corporate development programmes;
- Key Expert No 2: Water and Wastewater Institutional and Regulatory Expert with preferably 5 years professional experience in regulation preferably in the municipal water and wastewater projects and expertise in biogas;
- Key Expert No 3: Financial Specialist with preferably 5 years professional experience or more in finance, preparing and implementing FOPIPs and International Financial Reporting Standards (IFRS) reporting;
- Key Expert No 4: Environmental and Social Specialist with preferably 5 years professional experience or more in gender and expertise in environmental and social standards for municipal wastewater projects;
- Key Expert No 5: Legal Expert with preferably five years of relevant professional experience in Ukrainian legislation concerning financial and accounting issues;
- Key Expert No 6: Local Experts (including, inter alia, an expert with experience in local tariff regulation in the water and wastewater sector) with preferably 5 years of relevant professional experience and fluency in Ukrainian.
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 20 pages (excluding CVs Consultant Declaration and Contact Sheet).
An electronic copy of the expression of interest, in English and Ukrainian, should be submitted to the Client by email marked “EXPESSION OF INTEREST for Lviv Wastewater Biogas Project – Corporate Development Support Programme”, to reach Client not later than at 10:00 (Ukrainian time) on the above mentioned due date. One further electronic copy of the Expression of Interest should be submitted to the EBRD’s contact person by email and by the same due date.
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. The shortlist criteria are as follows:(a) Firm’s previous project experience in corporate development programmes (including financial and operational development programmes) in the municipal wastewater sector and in biogas projects similar in scope, nature and complexity (35%);
(b) Firm’s previous project experience in Ukraine and/or CIS countries (15%);
(c) CV of Key Experts (Project Manager, Institutional and Regulatory Expert, Financial expert, Environmental and Social Expert, Legal Expert) (50%).
