Executing Agency (Client): The Ministry of Energy of Georgia
Ministry of Energy Of Georgia
Tbilisi 0105, Sanapiro str. N2
Tel: (+995 32) 235 78 27
E-Mail: mail@energy.gov.ge
Project Description:
Georgia has a substantial potential for renewable energy investment, particularly in hydro sector. Despite this potential, in the recent years the level of investments in the renewable energy project in Georgia has been below expectations.
In 2010, in order to support investments in renewable energy sector the European Bank for Reconstruction and Development (EBRD or the Bank) together with the European Investment Bank (EIB) and Kreditanstalt für Wiederaufbau (kfW) co-financed the construction of a new high voltage line to connect Georgia to the Turkish system, the Black Sea Transmission system, the missing physical infrastructure link to necessary for electricity trade in between Georgia, connected to the former Soviet Union electricity network and Turkey connected to European network.
As part of the project preparation, the financiers together with the Government of Georgia, the Georgian State Electrosystem (GSE) and the Georgian National Energy Regulatory Commission (GNERC) have reviewed the existing regulatory and operational framework in order to identify any impediments to the successful operation of the interconnection between Georgia and Turkey and other electricity systems in the Caucasus. Recommendations were also made to the Georgian authorities on number of matters, including fair and transparent access to the interconnector.
As part of the financing documents for the Black Sea Transmission project, the Georgian authorities undertook to implement proposed recommendations and agreed with the financiers on a set of measures listed in an Action Plan. Georgian authorities already made substantial progress in implementation of the measures listed in the Action Plan and in order to provide further support to development of renewable energy and ensure market access in a manner that is cost effective, in line with EU competitive market principles, and harmonized with the Turkish power market, authorities are committed to designing and implementing a cross border electricity trading platform (the Platform). The platform will be instrumental in properly allocating risks amongst market participants and assist in providing dependable cross border transmission capacity rights.
Assignment Description:
The Client now intends to retain a consulting company (the Consultant) to support the Georgian authorities in design and implementation of the electricity trading platform in line with EU competitive market principles, and harmonized with the Turkish power market (the Assignment).
The selected Consultant is expected to provide the following services:
Phase 1: Support to the authorities in design of the electricity trading platform
The Consultant shall:
- Perform a review of the available reports on the subject matter sponsored by other donors,
- Review and prepare summary of best practice examples from countries that have successfully implemented an electricity trading platform;
- Review existing regulatory framework in Georgia and Turkey to ensure the proposed platform’s compatibility with both countries’ regulation;
- Coordinate with all stakeholders (authorities, private sector, donor community);
- Propose design of the electricity trading platform based on international best practice which is compatible for Georgia.
The Platform in particular should allow planning and bidding collection processing in order to establish the Merit Order and setting the Market Clearing Price (MCP) as well as System Marginal Price (SMP) respectively. Based on the factual data the platform should provide calculation of deviations with consequent billing and invoicing. The Platform should be able to perform calculation in the automatic mode with constant cycle and time interval of 30 minutes and allow simulation of different trading models in order to make the most suitable choice of trading practices fitting peculiarity of the power sector of Georgia.
Phase 2: Support to the authorities in implementation of the electricity trading platform
Based on the finding of the Phase 1 the Consultant shall propose implementation plan of the Platform that would allow deployment of the Platform in Georgia. It is understood that implementation of the Platform will extend over several years and some of the proposed measures will not be ready for immediate implementation.
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 and has an estimated overall duration of 12 months.
Cost Estimate for the Assignment: EUR 175,000 (exclusive of VAT). Subject to availability of funding, the performance of the selected Consultant and the specific needs of the Client the Assignment may be extended beyond the current scope.
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 from the EBRD Shareholder Special Fund. Selection and contracting is subject to the availability of funding.
Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with preferably previous project experience in electricity regulatory and legal matters, with particular knowledge of applicable regulation in the electricity transmission sector. Knowledge of former CIS countries in particular will be a plus.
The Consultant’s expert team is expected to include key experts as follows:
a Key Expert No 1 (Team Leader) with preferably 10 years of previous professional experience in similar assignments in the sector.
b Key Expert No 2 (Regulatory Expert) with preferably 10 years of previous professional experience in the sector.
c Key Expert No 3 (Technical Expert) with preferably 10 years of previous professional experience in the sector.
d Key Expert No 4 (Legal Expert) with proven project experience in regulation and energy laws.
e Key Experts No 5 (Pool of Local Experts).
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 25 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 via email (pdf) to the Client’s contact person, to reach the Client not later than the closing date. One additional copy shall reach the Bank’s contact person by the same due date. The expression of interest shall be one file (pdf). The Client reserves the right to reject applications of firms submitting more than one file. Only if any limitation on the permissible file size is exceeded, the Consultant may split the expression of interest into further files.
The Client Contact Person:
Giorgi Shukakidze, Deputy Head of Energy Division
Ministry of Energy of Georgia
Tel: (+995 32) 235 78 27
Email: g.shukakidze@energy.gov.ge
http://www.menr.gov.ge
The EBRD Contact Person:
Larissa Gosling
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 6338
E-mail: goslingl@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 shortlist selection criteria are as follows:
(a) Firm’s previous project experience in in electricity regulatory and legal matters, demonstrable knowledge of applicable regulation in the electricity transmission sector (40%)
(b) Firm’s previous project experience in similar assignments in former CIS countries (20%)
(c) CVs of Key Experts No 1 – 5 (40%).
