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Chernivtsi District Heating Project – Project Implementation Support

Procurement ref:

50235

Location:

Ukraine

Business sector:

Municipal and environmental infrastructure

Funding source:

Sida-EBRD Ukraine Energy Efficiency and Environment Consultant Cooperation Fund

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

11 Mar 2016

Closing date:

01 Apr 2016   at  12:00   Chernivtski

Executing Agency (Client):

Municipal Communal Enterprise «Chernivtsiteplokomunenergo»
19A, Maksymovycha street, Chernivtsi city, 58018, Ukraine

Project Description:

The district heating company “Chernivtsiteplokomunenergo” (the “Company” or “CTE”), a municipal utility wholly owned by the City of Chernivtsi (“Chernivtsi” or the “City”) has approached the European Bank for Reconstruction and Development (“EBRD” or the “Bank”) requesting a loan to support its energy efficiency priority investment programme (“PIP”) in the DH infrastructure.

Chernivtsi, with a population of 264,000, is the regional centre of the Chernivtsi oblast in the western part of Ukraine, close to the Romanian border. The Company is the only distributor of DH services in the City, with the total employee headcount of ca. 500 people, supplying heat to approximately 593 residential apartment buildings in the City. The Company generates heat in 89 boiler houses and distributes heat through 99,3 km of distribution networks.  The boiler houses are using natural gas.

The PIP will focus on increasing energy efficiency, reducing fuel, electricity and water consumption and other maintenance and operating costs, improving the reliability and quality of district heating services. The PIP will be implemented over a period of three years. It is expected that the PIP, as structured, will reduce the operating costs for the Company and will save up to 8890 thousand m3 of natural gas, 5400 MWh of electricity, and 5800 m3 of water each year, as well as increase the quality of heat and hot water services to the consumers. The PIP will include, inter alia:

  • Installation of Individual Heating Substations;
  • Installation of a bio-fuel boiler with a net capacity of 10.0MW;
  • Rehabilitation and modernization of large boiler houses;
  • Rehabilitation and/or replacement of small boiler houses;
  • Rehabilitation and replacement of DH networks;
  • Installation of dispatching and monitoring system.
  • Heat meters  installation;
  • Repair works at selected boiler houses boiler houses;
  • Rehabilitation and replacement of DH networks.

The PIP will directly benefit 24 per cent of the City population connected to the district heating system while indirectly benefiting all of the connected households. The Individual Heat Substation (“IHSs”) component of the project covers installation of 268 units in residential buildings connected to the system. The IHSs districts will serve as an example of complete district heating system loop operated with modern technology such as pre-insulated pipes, frequency converters and automatic heating substations, which ultimately increases quality of provided services to the end-consumers.

The Project addresses urgent investments aiming at improving energy efficiency as well as the Company’s quality of district heating service provision, and also reducing losses incurred in the distribution networks. The introduction of IHSs represents the first step on the customer demand side to transfer control of heating from the supplier to the end-users.

For the purposes of Project implementation, a Project Implementation Unit (“PIU”) is being established to operate within the Company, to be staffed by local personnel. The PIU’s activity is aimed at the co-ordination of all activities under the Project and cooperation with the representatives of the Company on the project sites and the contractor, as well as at improvement of the project management mechanisms. 

Assignment Description:

The Client now intends to retain a consulting company (the Consultant) to provide project implementation support to the Project Implementation Unit (the Assignment).

The overall objective of the assignment is to facilitate the timely and effective implementation of the Project by:

  • rendering assistance to the Company in implementation of the Project, including all aspects of procurement, contract administration, engineering supervision and disbursement;
  • providing timely recommendations and reporting to the Company in the contract administration process;
  • assist with the administration of the goods, works and supply and installation contracts and advising the Company with respect to all aspects which, in the Consultant’s professional judgment, may jeopardize the Project’s successful implementation and/or constitute violation of the contract conditions;
  • if requested, the Consultant will be obliged to help the Company to provide the Bank with data, advice and information in relation to the contracts which shall be impartial and take due regard of the best industry practices; and
  • provide technical support in the implementation of the Project to EBRD Environmental and Social performance requirements including internal capacity building to assist in the timely delivery of the Project Environmental and Social Action Plan.

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 36 months.

Cost Estimate for the Assignment: EUR 500,000 (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 nationality eligibility restrictions.

Consultant Profile: Corporate services are required. The Consultant shall be responsible for mobilisation of qualified engineers, technicians and other professional staff with the proven experience in the administrative management, procurement and administration of similar works and acquiring the equipment for the projects in comparable climatic and geological conditions.

It is anticipated that the Consultant’s team shall include the key experts as described below 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:

  • Project Manager;
  • Heating Engineers;
  • IFI Procurement and Contract Specialist;
  • Financial Expert;
  • Environmental and Social Specialist;
  • Local engineers.

All experts shall have approximately 5 or more years experience of the activity, which they are proposed for in a similar position including:

  • have project management experience gained in countries with climatic conditions similar to the project sites;
  • have construction and supply experience gained in countries with climatic conditions similar to the project sites;
  • have experience in district heating projects, knowledge and practical experience of FIDIC and/or World Bank/EBRD Works and Supply and Installation (Design and Build) contractual arrangements;
  • have experience in (i) planning; (ii) project management; (iii) engineering; (iv) procurement of goods, works and services: (v) financial management of projects; (vi) supervision and (vii) environmental and social matters;
  • have a good knowledge and practical experience of procedures and rules of procurement of international financial institutions, such as the World Bank, ADB or EBRD;
  • knowledge of requirements of Ukrainian legislation concerning design, construction and works supervision issues would be an advantage; and
  • Russian/Ukrainian speaking site staff will be required.

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).

One electronic copy of the expression of interest, in English and Ukrainian, should be submitted to the Client by email, marked “EXPESSION OF INTEREST for Chernivtsi District Heating Project – Project Implementation Support”, to reach Client not later than at 12:00 (midday) on 1 April 2016 (Ukrainian time). One further electronic copy should be submitted to the EBRD’s contact person by the same due date.

The Client Contact Person:
Melenchuk Oleksandr, director
Municipal Communal Enterprise «Chernivtsiteplokomunenergo»
19A, Maksymovycha street, Chernivtsi city, 58018, Ukraine
Email: chernivtsitke@gmail.com
Tel: +380372241135
Fax: +380372241135

The EBRD Contact Person:
Larissa Gosling
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 6338
Fax: +44 20 7338 7451
E-mail: goslingl@ebrd.com

Important Notes:

1. Following this invitation for expressions 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.

2. The shortlist criteria are as follows:

(a) Firm’s previous project experience in to the administrative management, procurement and administration of similar works and acquiring the equipment for district heating projects similar in scope, nature and complexity (35%)

(b) Firm’s previous project experience in Ukraine (15%)

(c) CV of Key Experts (Project Manager, Engineers, IFI experts, Financial Expert, Environmental and Social Expert, Local Engineers) (50%)

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