Egypt: Ministry of Finance - PPP Unit Support

Procurement ref:

67753

Location:

Egypt

Business sector:

Municipal and environmental infrastructure

Funding source:

Middle East and Northern Africa (MENA) Transition Fund

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

25 Jan 2017

Closing date:

22 Feb 2017   at  15:00  

Executing Agency (Client):
Public Private Partnership Central Unit
Ministry of Finance Towers, Tower 2
Extension of Ramsis Street
Nasr City, Cairo, Egypt

Client Contact Person:
Mr Atter E. Hannoura, Director
PPP Central Unit
Ministry Of Finance – Egypt
Tel:+202 23421283
Fax:+202 23421303
Cell: (+20) 12 2316-9707
E-mail: atter@mof.gov.eg

The EBRD Contact Person:
Sophie Medert
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN, United Kingdom
Tel: + 44 20 7338 7371
Fax: +44 20 7338 7451
E-mail: MedertS@ebrd.com

Project Description: Municipal services in Egypt all face urgent demands for investment to provide better access and improved quality. Key challenges exist in upgrading and decentralising the municipal infrastructure sector. As a result, Egypt’s largest cities suffer from severe congestion and air pollution problems and large investment gaps exist in mass transit systems, bus operations and river transportation services. Low sanitation coverage, particular in rural areas, in combination with deficiencies in wastewater treatment, results in severe water quality problems. Insufficient managerial and financial autonomy, very low tariffs, lack of incentives to improve performance, and continued overstaffing also lead to a poor financial situation of most utility companies. In addition to that, the regulatory and legal organisation of the sector shows weaknesses hampering new investments and the efficient provision of services.

To tackle such problems, authorities have shown an increasing interest in pursuing partnerships with the private sector to fund infrastructure projects. In 2006, the Ministry of Finance created a Public-Private Partnership (PPP) Unit and adopted a PPP programme, aimed to allow for and promote the retraction of the government’s role in the economy and pave the way towards a market economy in which the private sector is an active participant.

Nevertheless, further challenges remain in the planning and implementation of PPP structures, especially in the municipal infrastructure sector. Best practice precedencies through the implementation of pilot projects have not yet been established, key impediments such as the public perception of PPPs as privatisation and the resistance to change pose further challenges to the agenda. Hence, the PPP Unit - responsible for establishing the national PPP policy framework for implementation, manage PPP transactions and provide technical and advisory support as well as ensure compliance with legislative framework - encounters significant obstacles and a high workload burden. 

The Egyptian Ministry of Finance has requested the European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) to support the PPP Unit in designing, structuring and implementing PPP projects in the municipal infrastructure sector, and develop an action plan to overcome obstacles and key impediments. This will notably include the coordination of the PPP programme and process across the involved Ministries, private sector, and financial market (the “assignment”).

Assignment Description: The PPP Unit is seeking the support of experts (the “Consultant”) to identify and prepare projects where PPPs can be fostered. These services would be mainly focussed on technical, financial, legal and social/environmental advice to support the PPP Unit in in the municipal infrastructure sector.

The objectives of supporting the PPP Unit are to: (i) set PPP methodologies and guidelines in line with the local legislation; and (ii) promote sub-sovereign financial solutions and proactively engage with both the PPP Unit and private sector participants to identify opportunities for future PPP investments as well as to assist the PPP Unit in designing, structuring and implementing sound projects.

The main outcome of the assignment is to support the PPP Unit to build sufficient and sustainable capacity in order to help achieve the aforementioned objectives.

The Consultant will operate within the PPP Unit (currently staffed with 9 people), deliver active support and work with relevant staff members of the PPP Unit to enable the transfer of skills and knowledge. Specifically, one of the roles of the Consultant is to assist the PPP Unit in developing and promoting PPP structures in the municipal infrastructure sector to achieve increased efficiencies, including operational and financial sustainability and an improved quality of service.

The selected Consultant is expected to provide the following services:

1. assist the PPP Unit in preparing and assessing technical, financial, legal and social/environmental due diligence
2. train key staff
3. assist the PPP Unit to launch and manage the Private Sector Participation tenders.

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 mid-2017 and has an estimated overall duration of 36 months. However due to the sensitive nature of the assignment, please note that the winning consultant will be contracted for the first 18 months and that an extension up to the remainder of 18 months will be subject to satisfactory service provisions and approval by the Client.

Cost Estimate for the Assignment: USD 2,270,000.00 for 36 months (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 MENA Transition Fund. 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, or a consortium of individuals, with preferably previous project experience related to:

• PPP project preparation in the MENA region;
• Municipal infrastructure investment projects – including working with governments

The expected team should be comprised of at least three key experts with the following experience/expertise, who will be supported by short term experts as needed:

1. Key Expert – Senior PPP Expert
 One of the main tasks for the Senior PPP Expert will be to provide assistance to Head of PPP Unit. This will include support in preparing standard PPP guidelines and methodologies, including project documents, contracts and PPP policies. In addition, the PPP expert will be responsible structuring and preparing concrete projects. The Expert will support and organise the technical parts of tender and contract documentation as well as technical training for key staff of the PPP Unit. Therefore,  the expert should have:
- Previous professional experience in multi-disciplined PPPs (preferably 8 years);
- Previous professional experience in compiling/structuring PPP policies and project documents / contracts (preferably 8 years);
- Previous professional experience in compiling/structuring tender documents (preferably 5 years);
- Previous professional experience in the MENA region.

2. Key Expert – Senior Financial Expert
 This expert will be responsible for the financial analysis and structuring of the municipal infrastructure PPP projects. This includes the set-up and/or detailed evaluation of financial models to ensure that the results are reliable, accurate, complete and consistent and that the projects make financial sense. The expert should have:
- Previous professional experience in financial modelling for international municipal infrastructure PPP projects (preferably 8 years);
- Excellent knowledge of requirements of local legislation concerning financial and accounting issues (preferably 5 years of previous professional experience);
- Previous professional experience in the MENA Region.

3. Key Expert – Legal Expert
 The Legal Expert will lead on legal matters and documentation of the transaction. This Expert will also define, prepare and organise the process of project tenders. The expert should have:
- Previous professional experience of preferably 8 + years of practice in PPP/concessions;
- Extensive legal and procurement expertise in privately financed large infrastructure projects;
- Extensive previous professional experience in Egypt.

Other Team Members: It is anticipated that the Consultant’s team shall include the following short-term support as required in other disciplines:
- Water and Urban Transport Experts;
- Financial Expertise;
- Technical Expertise;
- Legal Expertise, particularly in Egypt;
- Environmental, Health & Safety and Social experts;
- Procurement and Contracting Specialists.

The Consultant’s expert team should demonstrate access to the following skills and expertise:
- Design and project management experience gained in countries with conditions similar to Egypt;
- Construction and supply experience gained in countries with conditions similar to Egypt;
- experience in (i) planning and design activities; (ii) assistance with planning and design activities; (iii) project management; (iv) project management assistance and corporate development; (v) engineering; (vi) procurement of goods, works and services;
- a good knowledge of requirements of local legislation concerning procurement, concessions, construction, financial and accounting issues.

Submission Requirements: In order to determine the capability and experience of Consultants 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 electronic copy (via email and pdf) 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.

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/Consortium’s structure and demonstration of working of programmes of a similar scale in municipal infrastructure investment projects (20%);
(b) Firm’s previous project experience in PPP project preparation in the MENA region (35%);
(c) CV of Key Expert No 1, 2 and 3 (45%).

3. The lead consultant, its consortium members, sub-consultants and all experts involved in implementing the “Egypt: Advisory Services For PPP Tender Preparation” assignment will not be eligible to participate in this selection.