Project Description:
The European Bank for Reconstruction and Development (the “Bank” or “EBRD”) has approved a loan of EUR 14.5 million to the Public Utility Company Belgrade Waterworks and Sewerage (“the Company” or “the Client”) for the Belgrade Water Project (“the Project”.) The Project objectives are to finance priority water supply improvements in the City of Belgrade including extension and rehabilitation of the existing network and refurbishment of one of the water treatment plants within the central water treatment complex “Makis”.
The Company is the sole company providing potable water in Serbia’s capital. Its key responsibilities are the provision of water and wastewater services. It was established by the City in 1982. In 2016, the Company operated and managed the water distribution network, a system consisting of 3,735 km water mains with 217,254 connected customers (households and companies) and a wastewater network of 1,513 km of pipes serving 54,748 connected users.
The Company produced 187 million m3 of potable water in 2016, out of which 11.3 million m3 is for the Company’s own use (for the cleaning of water filters and maintenance of the water supply system) and the remainder is distributed for consumption. In the same year, water losses were 33.5 per cent, which is considered high when compared to European norms, around 7,4 per cent is due to illegal consumption and metering errors. The remainder is due to physical losses. At the end of 2016, the Company had 2,236 employees.
During the last decade, Belgrade has been experiencing water shortages in particular during the summer months. This problem has partially been overcome when the new Water Treatment Plant (WTP) at Makiš 2 (“Makiš 2”) became operational. Makiš 2 is a complementary facility adjacent to WTP Makiš 1 (“Makiš 1”), which is one of five water treatment facilities operated by the Company. Construction of Makiš 2, which was partially financed by EBRD in the amount of EUR 20 million, began in May 2008 and concluded in September 2014 after which the plant was officially commissioned in 2015.
Assignment Description:
Given the scope of the Project outlined above, the Company is seeking to engage a consultant (the “Consultant”) to assist in the preparation of a Financial and Operational Performance Improvement Programme (“FOPIP”) with the overall objective to improve the Company’s operational efficiency, environmental, social and financial management in order to strengthen the capacity to service debt while providing high quality water and sewerage services (the “Assignment”).
The overall objective of this assignment is to provide a range of support services, system development, expertise and training to the management and staff of the Company. This will lead to improved managerial and operational efficiency and strengthen their corporate position. The Consultant shall complete initial financial, legal and operational analysis and then focus on the development of detailed recommendations for achieving specific results, including a specific roadmap and benchmarks for improving operational efficiency and financial sustainability for the Company.
Specific tasks to be completed by the Consultant as part of the Assignment include, but are not limited to, the following:
- establishing indicators for measurable improvements (within a clearly defined timetable) in operational efficiency and levels of service (e.g. reducing unaccounted for water and sewage leakages);
- developing and implementing a FOPIP focusing on:
- increasing the revenue collection rates and reducing accounts receivable;
- developing a tariff formula and tariff policies, which will over time eliminate the cross-subsidy between consumer groups;
- developing the ability within the Company to make ongoing long-term (5 year) corporate development programmes, including capital budgets and tariff projections;
- capacity building and modernisation of the Company’s HR Department; and,
- improving inter-departmental and external communication, including provision of communication training.
c. reviewing the potential for private sector participation in the Company’s operations.
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 begin the first quarter of 2018 and has an estimated overall duration of 24 months.
Cost Estimate for the Assignment: EUR 290,000 (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 EBRD Shareholder Special Fund (“SSF”). Final 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 related to international water sector projects, development and implementation of a FOPIP or projects with similar objectives in public sector utilities and in the legal framework necessary for drafting and implementing a Public Service Agreement in countries with comparable conditions to Serbia.
The Consultant’s team is expected to include key experts as follows:
Key Expert No 1 Team Leader (with water and wastewater utility expertise) with preferably 10 years of previous professional international experience in water sector projects procured under financing arrangements with government agencies or international financial institutions.
Key Expert No 2 (Local Team Leader ) with preferably 10 years of previous professional experience in water sector projects procured under financing arrangements with government agencies or international financial institutions and well acquainted with Serbian laws and regulations.
Key Expert No 3 (Financial Expert) with preferably 10 years of previous professional experience in financial management of public utilities.
Key Experts No 4 (Supporting Experts) consisting of Legal Expert; Training/Corporate Development Experts and Environmental and Social Expert.
Submission Requirements: In order to determine the capability and experience of Consultants seeking to be selected, 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).
The complete expression of interest (including CVs, Consultant Declaration and Contact Sheet) should be submitted, in English and Serbian via email (pdf) to the Client’s contact person, to reach the Client not later than the closing date.
An electronic copy shall also reach the Bank’s contact person by the same due date.
The expression of interest will be submitted as a maximum of two files (pdf, not exceeding 4MB each), one in each language. The Executing Agency reserves the right to reject applications of firms submitting more than two files.
Executing Agency (Client): PUC „Belgrade Waterworks and Sewerage“
The Client Contact Person: Maja Medenica
Address: 28 Deligradska Str. 11000 Belgrade, Serbia
Email. maja.medenica@bvk.rs
Phone:+38164/813-11-84
The EBRD Contact Person:
Yvonne Wilkinson
European Bank for Reconstruction and Development
One Exchange Square, London EC2A 2JN
Tel: + 44 20 7338 7123
E-mail: wilkinsy@ebrd.com
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 evaluation criteria are as follows:
(a) Firm’s previous international experience in water sector projects (20%);
(b) Firm’s previous experience in development and implementation of a FOPIP in organisations comparable to the Client (20%);
(c) Firm’s previous experience in drafting and implementing Public Service Agreement in countries with comparable conditions to Serbia (20%);
(d) CV of Key Expert No 1 (20%);
(e) CVs of Key Experts No 2, No 3 and No 4 (20% in total, or 4% per CV ).
