Kyzylorda District Heating - Project Implementation Support, Engineering Design Services and Contract Supervision

Procurement ref:

415

Location:

Kazakhstan

Business sector:

Municipal and environmental infrastructure

Funding source:

EU Investment Fund for Kazakhstan

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

26 Jan 2015

Closing date:

04 Mar 2015   at  17:00   Kyzylorda

Executing Agency (Client): The State Communal Enterprise Kyzylordateploelektrotsentr, (the “Company”).
 
Background:
The European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) together with the State Communal Enterprise Kyzylordateploelektrotsentr (the “Company”) and the Akimat of the City of Kyzylorda (the “Akimat”) has developed a project (the “Project”) to upgrade the district heating (“DH”) system in the City of Kyzylorda (“Kyzylorda” or the “City”) in the Republic of Kazakhstan.
 
DH is a major component in Kazakhstan’s energy balance, particularly given the recent history of rapid demand growth due to rapid urbanisation in major metropolitan and industrial centres. DH remains the most cost-effective way of supplying heat to the majority of people in post-Soviet cities with lower-middle income urban residents in high-density apartment buildings as main beneficiaries.
 
Kazakhstan’s DH sector is characterised by a history of underinvestment over the last 20 years. This has resulted in a stock of ageing and inefficient assets with poor environmental performance that struggle to meet demand reliably. The centralised heat supply networks in Kazakhstan are depreciated by 80 per cent on average and are under particular strain.
 
The Company operates a combined heat and power plant (“CHP”), boiler houses and a district heating network in the City. Most of the electricity and heat generation facilities as well as network are significantly deteriorated. Due to limited financial sources, the Company’s investments into the DH system have been minimal and were aimed only to keep the current system’s operations from collapsing. Investment is mainly relying on the limited state budget allocations.
 
The Project will enable the Company to address the issues outlined above  and improve its DH services by financing priority investments for the rehabilitation and modernisation of its infrastructure through a Priority Investment Programme (“PIP”) comprising the following major components: implementation of SCADA system and installation of frequency regulators; rehabilitation  of networks; installation of individual heating sub-stations (“IHS”) and internal domestic hot water (“DHW”) installations; development of hydraulic model; replacement of turbo generators.
 
The investments will be procured in accordance with the EBRD Procurement Policies and Rules for Public Sector Projects. A Project Implementation Unit (“PIU”) will be formed in the Company, with representatives from the Akimat, which will manage all procurement, as well as installation, construction and implementation of the investments.
 
The Company intends to hire a consultant (hereinafter the “Consultant”) to support the Company to set up and oversee the PIU in all aspects of Project implementation. Such support will include preparation of design, technical specifications, tender documentation, assistance with tendering, tender evaluation and contract finalisation, administration and supervision of the contract implementation, as well as set up of the disbursement system.
 
Assignment Description
The overall objective of the assignment is to facilitate the timely and effective implementation of the Project by rendering assistance to the Company  in the implementation of the Project, including design, all aspects of procurement and disbursement and environmental and social (“E&S”) requirements.
Specific objectives of the assignment shall include, inter alia:
  • Review and make recommendations to the Project Procurement Plan, including updating of initial cost estimates and setting priorities between the Project components.
  • Review the existing designs and/or prepare missing designs for the heat production facilities and the heat transmission/distribution networks rehabilitation in accordance with Kazakh construction norms and requirements for procurement of works. Prepare “Reference/preliminary design” for Supply and Installation of turbo generators and equipment.
  • Assist the Company in developing tender documents (including, but not limited to, design, requirements and technical specifications, EHSS requirements for contractors), carrying out tender procedure, preparing evaluation report and contract, and submit the necessary documents to the Company and EBRD for their concurrence and “no-objection”.
  • Provide overall project management support to the Company to co-ordinate, manage, monitor and evaluate all aspects of the Project.
  • Ensure that the Company l arranges payments to the contractor, to whom payment has been certified, to ensure that all such payments are made in due time, and that appropriate control and record systems are in place to ensure compliance with financiers and the country reporting requirements [to be clarified].
  • Provide support to and  supervision of works and administration of contracts.
  • Support the arrangement of timely disbursements under the contracts.
 
Assignment Start Date and Duration: The assignment is expected to start in 1Q 2015 and have a duration of 36 months.
 
Maximum Budget available for the Assignment: EUR 650,000; 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:  EU Investment Fund for Kazakhstan
 
Eligibility: There are no eligibility restrictions
 
Consultant Profile:  Corporate services are required. The Consultant will be a firm or a group of firms with experience in municipal DH sector, in particular in:
  • design and management of DH projects, including DH rehabilitation and upgrade, installation of HIS, supervision of construction, supply and installation of equipment;
  • experience in implementation of similar projects in CIS, preferably in Kazakhstan;
The Key Experts will include:
  • Project Manager (Team Leader) with extensive experience in management of similar projects;
  • IFI Procurement/Contracts Specialist with good knowledge of procedures and rules of procurement of international financial institutions, such as the EBRD, World Bank or ADB, knowledge of FIDIC and/or World Bank/EBRD Supply and Installation contractual arrangements.
  • Legal expert with good knowledge of requirements of Kazakhstan legislation concerning contractual, construction, financial, accounting and disbursement issues;
  • IFI Financial and Disbursement Specialist with experience in financial and accounting issues/requirements related to the assignment on the local and international level;
  • International and Local DH Engineers with experience in  DH project engineering, including DH rehabilitation and upgrade, installation of HIS, supervision of construction, supply and installation of equipment;
  • International and Local DH Designers with experience in planning and design activities for similar projects;
  • Environmental and Social Experts with good knowledge and understanding of EBRD’s environmental and social requirements and past experience of assistance in their successful implementation;
  • Supervision Engineers with experience in engineering and related supervision of similar projects.
  • In addition, the Consultant will be expected to provide Office Manager/Translator/Secretary.
All experts shall be fluent in English. It is essential that the Consultant’s team contains key experts fluent in Russian.
 
Submission Requirements: In order to determine the capability and experience of Consultants to be shortlisted, the information submitted shall  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
 
Failure to provide the duly completed and signed Consultant Declaration may result in the applicant being disqualified from the selection process.
 
The expression of interest shall not exceed 25 pages (excluding CVs and contact sheet).
 
One original and 1 copy of the expression of interest, in English and Russian, shall be submitted to the Client in an envelope marked “EXPRESSION OF INTEREST for “Kyzylorda District Heating -  Project Implementation Support, Engineering Design Services and Contract Supervision”, to reach Client not later than 4 March 2015 at 17:00 (Kyzylorda time).
 
One  electronic copy of the expression of interest shall be submitted to the EBRD’s contact person by the same closing date and time.
 
The complete expression of interest (including CVs, Consultant Declaration and Contact Sheet) must be submitted in one file (pdf or Word). The EBRD and the Client reserve the right to reject the expressions of interest submitted in more than one file. Only if the permissible size is exceeded, the applicant 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. Shortlisting criteria and respective weightings are:
  • Firm’s experience in design and management of DH projects, including DH rehabilitation and upgrade, installation of HIS,  supervision of construction, supply and installation of equipment – 20%
  • Firm’s experience in implementation of similar projects in CIS, preferably in Kazakhstan –20%
  • Experience of key experts as per Section “Consultant Profile” – 60% (Project Manager (Team Leader) -20%; other key experts -350%; key experts’ fluency in Russian language – 5%)
 
The Client Contact Person: 
Name Mr. Askar Bekpaganbetov
Address: 1 Maral Ishana street, (Karatogay b/n), Kyzylorda, 120009, Kazakhstan
Phone: +7 7242 25 00 70
Fax: +7 7242 25 01 21
E-mail: gkpktezzakup@mail.ru
 
EBRD Contact:
Marina Matushina
Advisor
Technical Cooperation
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 6577 ; Fax: +44 20 7338 7451