Kyzylorda Waste Management Project - Feasibility Study

Procurement ref:

46247

Location:

Kazakhstan

Business sector:

Municipal and environmental infrastructure

Project number:

47042

Funding source:

Finnish Ministry of Employment and the Economy Technical Cooperation Fund

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

17 Feb 2015

Closing date:

10 Mar 2015   at  17:00   Kyzylorda

20/02/2015 Clarification: Please note that the email address of the Client has been updated.
 
The Kyzylorda Oblast (“the Oblast”) requested the European Bank Reconstruction and Development (“EBRD” or the “Bank”) to provide financing to construct a modern integrated waste management facility in Kyzylorda (the “Project”), which will include a modern mechanical and biological solid waste treatment plant (the “MBT”) combining waste separation and recycling and generation of “green” energy via the process of anaerobic digestion and a new sanitary landfill for the remaining waste (the
“Facilities”).
 
Waste collection and disposal practice in Kyzylorda (the “City”) and the Oblast is broadly similar to the country-wide practices and is based on the “City – Landfill” scheme without waste trans-shipment to regional facilities and waste separation facilities. Almost all municipal waste is disposed of at poorly-managed landfills or city dumps, which lack applied basic sanitary and environmental protection measures. The technical standards for landfills are not in compliance with international standards and hazardous substances leach into the soil and groundwater as landfills lack proper lining and leachate collection/treatment systems.
 
Private sector involvement is limited - about 70 per cent of waste collection services in Kyzylorda and its vicinities are covered by a municipally owned company, in addition to the waste collection and transportation, also responsible for (i) street cleaning ii) planting of trees (iii) administration of parking zones, etc. In addition, there are more than ten smaller scale private companies rendering services mainly to the legal entities in the City. Recyclable waste (paper, plastic and glass) dominates in the morphological structure of waste accounting for about half of the total generated waste.
 
The EBRD contribution will be made as a loan to a Special Purpose Company (“SPC” or the “Company”), owner of the Facilities to be wholly owned by the Akimat of Kyzylorda Oblast. It is expected that EBRD finance will be complemented with a co-financing from the Clean Technology Fund (“CTF”) and from EBRD Climate Investment Funds (“CIF”) on concessional terms and with a contribution from the Government of Kazakhstan.
 
The Project will also involve closure of the existing landfill (dumpsite) in an ppropriate manner as a condition of the Bank’s involvement in the Project. It is expected that modern technologies will be used at the Facilities to maximise the efficiency of the waste processing. The establishment of such Facilities would allow Kyzylorda to move away from the current uneconomic practices that have resulted in the accumulation of environmentally hazardous and non-compliant landfills. Additionally, it will result in lower CO2 and methane emissions and will safeguard renewable and non-renewable resources. According to the preliminary estimates the total investment cost is around EUR 36 million. This estimate is based on a similar type of project in the region.
 
To assess the feasibility and prepare a bankable project, the Bank is seeking the assistance of consultants (the “Consultant”) to prepare a detailed feasibility study (the “Feasibility Study”) for the Project and to carry out an environmental and social due diligence (“ESDD”) in compliance with EBRD’s requirements for category A projects (the “assignment”).

In addition, the technical solutions to be applied have to based on the best available and reliable technology, including anaerobic digestion.
 
Specifically, the Consultant’s tasks under the assignment shall include, inter alia:
 
a. Preparation of the baseline study, which envisages the review of the present status of the waste management services in the City. This analysis shall allow the Bank to better understand the present situation in institutional, legal and financial, as well as technical and environmental terms;
 
b. Carry out an alternative analysis for site and design selection and verify the suitability of the selected technology as the best option for waste management,
separation, recycling and disposal. If the selected technology cannot be verified, propose an alternative option;
 
c. Review and analyse the current situation of the waste eatment/separation/landfilling in Kyzylorda in terms of condition of major equipment and facilities, recent past years performances, operation and maintenance (“O&M”) practices, capacity of the City to manage and address all relevant environmental and social risks and impacts, compliance with national laws and regulations and any liability issues, as well as waste management practices and recovery activities and their efficiency and quality;
 
d. Preparation of the detailed investments on the basis of waste measurement and
characterisation and recommendation of the most cost-effective waste management
technology solutions;

e. Advice with regarding the most suitable commercially available technologies for
efficient and environmentally and socially acceptable integrated waste management plant and to advise regarding the capabilities of the most prominent CIS and other manufacturers of equipment that can be used for the Facilities;
 
f. Carry out an ESDD for the Project in line with 2008 ESP & PRs, which includes the
preparation of the  environmental and social action plan (“ESAP”), resettlement action plan and/or livelihood restoration framework, a stakeholder engagement plan (“SEP”) commensurate with category A projects and a non-technical summary (NTS);

g. Preparation of the disclosure package for category A project in line with EBRD’s
Environmental Social Policy (“ESP”);

h. Preparation of remediation/closure design and implementation plan for closing of the existing dumpsite in Kyzylorda;
 
i. Estimationof the potential reductions in greenhouse gas (“GHG”) emissions arising from utilisation of biogas from existing and planned waste management sites;
 
j. Preparation of the financial projections for selected waste treatment facilities; the
projections shall be fully consistent with the proposed Project, strategic development plan and be based on prudent assumptions on the Company revenues and expenditures. Financial projections shall include annual balance sheets, income and cash flow statements as well as calculation of the estimated economic internal rate of return (EIRR) for the Project;

k. Preparation of the implementation arrangements including the need of technical supervision, to be envisaged for the successful implementation of the project. Determination of an efficient implementation strategy for the investments under the Project;
 
l.  Exploration of the possibilities and challenges related to a decentralised ownership and control of the new landfill and all related activities including collection (ideally outsourced), tariff setting, and electricity generation.

Assignment Start Date and Duration: The assignment is expected to start in the second quarter of 2015 and last for 9 months.

 
Maximum Budget available for the Assignment: EUR 295,000; 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 EBRD’s client will have to pay indirect taxes/VAT element to the services directly
to the Consultant unless otherwise agreed.

 
Funding Source:  Finnish Ministry of Employment and the Economy Technical Cooperation Fund.

 
Eligibility: Firms shall be registered in Finland. Its experts shall be either Finnish nationals or non-Finnish nationals who are permanent employees of the firm.  Up to a
maximum of 25% of the total contract amount may be used to finance services of
local experts who are nationals of Kazakhstan or consultancy firms registered
in Kazakhstan.

 
Consultant Profile: Corporate services are required. The Consultant should ensure that the appropriately qualified experts are available, as required, for each of the different tasks outlined above. It is expected that the assignment will be led by an appropriately qualified team leader/waste management engineer, accompanied by both key and supporting experts.
 
The Consultant should have experience in developing modern solid waste to energy
facility projects, improvement in waste management practices, solid waste value
recovery facilities, the financial and technical issues of the sector, investment and operating costs and practices, in accordance with the relevant Kazakh and European Union environmental laws and standards.

 
Based on the fields of expertise and the tasks mentioned above, it is proposed that
the team of the Consultant should consist at least of the following expatriate
and local experts:
  • Project Manager/Team Leader with a university degree or equivalent qualification with preferably a minimum of 15 years professional experience in the field of waste management, with comprehensive experience of similar assignments in Eastern Europe or the CIS, as well as in institutional and commercial management of waste management Company. He/she should demonstrate management and administration experience, including experience with procedures of international financing agencies. The large number of different tasks and the complexity of administrational procedures require a permanent presence of the Project Manager in the Country during the project period of intensive work on preparation of the Feasibility Study;
  • Financial specialists with knowledge of the public financing and modelling; Technical specialists and solid waste management engineers;Environmental and Social / RAP experts with recent track record in the region preferably a minimum 3 years of work on similar assignments);
  • Social and gender experts for stakeholder engagement and public consultation with recent track record in the region;
  • Climate change expert with extensive experience in evaluation in climate change;
  • Institutional expert with experience of similar assignments;
  • Legal expert with relevant experience in the areas of natural monopolies regulation and knowledge of Kazakhstan tariff legislation
  • Local experts with good communication skills and evidence technical knowledge of modern waste management practice.

The Consultant should integrate local professional skills/cooperate with local
consulting companies, in order to provide national experience.

The Consultant shall engage Russian speaking staff on their team or arrange for
translation/interpreting when necessary. All experts must be independent and
free from conflicts of interest in the responsibilities accorded to them.

Submission Requirements: Interested firms are hereby invited to submit expressions of interest.

In order to determine the capability and experience of consulting firms seeking to be shortlisted, the information submitted should be sent to the contact persons set out below and 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:

http://www.ebrd.com/pages/workingwithus/procurement/notices/csu/contact_sheet.doc

The expression of interest shall not exceed 25 pages (excluding CVs and contact sheet).

One expression of interest in Russian and one in English shall be submitted to the Client in an email entitled "Expression of Interest for Kyzylorda Waste Management Project – Feasibility Study”, to reach Client not later than 10 March 2015 at 17:00 (Kyzylorda time).

One further copy in English and one in Russian shall be submitted in an email to EBRD’s contact person by the same closing date and time.

In the event of any dispute, the English language version will prevail.

The complete expression of interest (including CVs, Consultant Declaration and Contact Sheet) must be submitted in one file (pdf or Word).

The Client Contact Person:
Ms Zhanat Samat, Chairman of the Board
“Baikonur” Social-Entrepreneurial Corporation” National Company” JSC
4"Bastau" Business Center
2 Zheltoksan Street
Kyzylorda
Kazakhstan
Tel : +7 (7242) 60 51 60
Fax: +7 (7242) 60 51 62
Email: kwm.spk@mail.ru

EBRD Contact Person:
Angela Levitsky
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
United Kingdom
Tel: + 44 20 7338 63 63
E-mail: LevitskA@ebrd.com
 
Important Notes:
  1. Selection and contracting will normally be made from responses to this notification. The consultant will be selected from a shortlist, subject to availability of funding
  2. The evaluation criteria are as follows:
Firm demonstrates (preferably with 10 years’ experience) excellent level of practical experience in developing feasibility studies for international financial institutions (“IFIs”)  and a good knowledge of IFI procedures and rules on public procurement and disbursement policies – 10%
Firm demonstrates (preferably with 10 years’ experience) deep knowledge of the solid waste sector, with excellent level of international experience, specifically institutional and legal framework aspects, local financial management standards, professional standards of technical knowledge internationally as well as in the region – 20%
Qualifications and competence of the consultant's team of experts and composition of the team to include the expertise as set out above under Consultant Profile – 60%
Previous experience of similar assignments in Kazakhstan and the CIS region and ability of consultant's team members to communicate in Russian – 10%