Energy Sector Regulatory Development Programme - Strengthening the Capacity of the Energy Regulator

Location:

Bulgaria

Business sector:

Sustainable Resources and Climate Change

Project number:

45951

Funding source:

Not Yet Determined

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

05 Dec 2014

Closing date:

12 Jan 2015   at  23:59   London

Access eSelection

THE DEADLINE DATE FOR SUBMISSION OF EXPRESSIONS OF INTEREST HAS BEEN EXTENDED UNTIL 12 JANUARY 2015.

It is anticipated that the assignment will be financed by the Ministry of Energy (“MoE”) or the “Ministry” under the EU Operational Programme “Technical Assistance”.

Assignment Description: The Government of Bulgaria (the “Government”) has committed to improving the performance of the Bulgarian energy sector and strengthening the capacity of the sector regulator, the State Energy and Water Regulatory Commission (“SEWRC” or the “Regulator”). The energy sector is characterised by system inefficiencies: overproduction of electricity, overstressed and inefficient transmission and distribution functions, unexploited export potential and tariffs that do not cover the sector costs. The country has failed short of implementing the market liberalisation required under the EU Third Energy Liberalisation Package.

Recent public protests have also unveiled the issue of affordability by a number of end users. The Government has placed high on the political agenda the energy market regulatory reform recognising its crucial role for the economic development of the country and political stability. In pursuance of its strategic objectives, the Government has adopted a number of measures aimed at stabilisation of the energy system including setting out the Energy Board and adoption of rules for implementing a real balancing energy market in the country.

The Ministry of Energy (“MoE”) has requested the European Bank for Reconstruction and Development (“EBRD” or the “Bank”) to provide technical cooperation support to MoE and SEWRC aimed at a) performing a benchmarking study on sector cost structure and performance against international competition, b) identifying the gaps and inefficiencies in the energy sector policy, laws and regulations and developing recommendations for addressing these gaps; c) review of recent good practices from other countries on renewable energy regulation and developing recommendations for reform appropriate for the sector’s economic, financial and regulatory environment; d) building capacity within the Regulator to effectively address sector inefficiencies through a combination of working at SEWRC’s premises to assist staff in their day-to-day activities, on-the-job-training, and other programmes, and e) supporting the practical implementation of the EU Third Energy Liberalisation Package (the “Energy Regulatory Programme” or the “Project”). EBRD has agreed to provide such technical assistance to support MoE and SEWRC in this respect and will select, engage and manage a consulting firm (the “Consultant”) on their behalf to assist with the implementation of this Energy Regulatory Programme (the “Assignment”).

The Consultant shall perform the following main tasks under the Assignment:

(i) Conduct a documentary review of all relevant sector laws, regulations, studies and reports relating to the energy sector (incl. electricity, gas, heat) in Bulgaria.;
(ii) Following the Consultant’s initial review, an inception country visit will be undertaken to meet all relevant sector stakeholders and validate the review conclusions (“the inception meeting”) when the Assignment will be formally launched;
(iii) Conduct a cost baseline analysis of the key players in the market across the value chain which will be used to compare performance against international competition. The analysis shall also identify the key value levers and set the basis for preparing specific improvement measures and recommendations;
(iv) Prepare a Gap Analysis and Identification of Specific Training Needs Report (the “Gap Analysis”) which will identify EU best regulatory practices in implementing the Third Energy Liberalisation Package which could be introduced in Bulgaria;
(v) Prepare a review of recent good practices from other European countries on regulating renewable energy operators, pricing mechanisms and addressing system problems and develop recommendations for improving the current legal/regulatory environment;
(vi) Conduct a training programme with relevant staff at MoE and National Energy Company (“NEK”) which will focus on the practical and legal aspects of improving the functions of the Regulator as identified by the Gap Analysis and the country’s obligations arising directly from the Third Liberalisation Package and community law in the energy sector;
(vii) Provide direct assistance with day-to-day activities of the Regulator to build capacity and know-how transfer; and
(viii) Based on the conclusions from the Gap Analysis, benchmarking study, discussions with SEWRC and other sector stakeholders propose specific revisions to the legal and regulatory framework as well as to the functions, operating means and organisational structure of SEWRC.

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 March 2015 and has an estimated overall duration of 14 months. Subject to availability of funding, the performance of the selected Consultant and the specific needs of the Bank the Assignment may be extended beyond the current scope.

Cost Estimate for the Assignment: EUR 1,200,000.00 (exclusive of VAT).
The Consultant must determine whether any indirect taxes/VAT are chargeable on the proposed services and state the basis for such determination without taking into consideration the Bank’s special status as an IFI and state this to the Bank in their response to the Invitation for Expressions of Interest. To the extent that a consultant incurs input VAT on goods and services purchased in connection with the provision of services (e.g. VAT on airline ticket) which is not otherwise recoverable by the consultant from the local tax authority, the gross cost to the consultant of such expenses shall be treated as a reimbursable expense.

Funding Source: It is anticipated that the assignment will be financed by the Minstry of Energy (“MoE”) under the EU Operational Programme “Technical Assistance”.

Eligibility: There are no eligibility restrictions.

Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with previous project experience related to:

- Energy sector policy, regulation, economics and engineering with experience working on EU and international best practices for energy sector regulation and market operation; experience working in power and energy in transition countries
- Project Planning, restructuring and optimisation
- Relevant project experience in Bulgaria would be considered an advantage

The Consultant‘s expert team is expected to include key experts as follows:

• Team Leader with substantive energy sector regulatory experience and extensive experience working on EU and international best practices for the energy sector regulation and market operation (preferably more than 15 years) as well as significant experience working in transition countries.
• Senior international economic expert with substantive experience (preferably more than 15 years) in conducting cost analysis, benchmarking of energy operators, tariff review and methodology, project planning, restructuring and optimisation; previous experience working in transition countries is desired
• Senior international legal/regulatory expert with substantive experience (preferably more than 15 years) developing and drafting policy, laws and regulatory texts implementing EU and international best practices for the power and energy sector (including renewable energy); previous working experience in transition countries is desired
• Power and energy engineer expert preferably with more than 10 years of relevant sector experience, including benchmarking, project planning, restructuring and optimisation; previous working experience in transition countries is desired
• Local experts with extensive policy and legal drafting skills, regulatory experience, experience in conducting cost analyses, experience in benchmarking, and experience in project planning, restructuring and optimisation.

The Consultant should ensure that the appropriately qualified experts are available, as required, for each of the tasks outlined above. It is expected that the assignment will be led by an appropriately qualified project manager with relevant sector experience accompanied by both key and supporting experts. It is expected that the team will include a resident team leader who will spend the majority of his time on this Assignment working in Bulgaria.

The Consultant shall be responsible for translating any documents provided in Bulgarian language for the purpose of this Assignment.

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 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, 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 and contact sheet).

The complete Expression of Interest (including CVs, Contact Declaration Form and Contact Sheet) shall be submitted in English, electronically through e-selection (do not send expressions of interest to the EBRD’s contact person), to reach the Bank not later than the specified closing date by 23:59 hours (UK time). The Expression of Interest shall be one file (searchable .pdf or Word, not exceeding 4MB) to be uploaded to eSelection. The EBRD reserves the right to reject applications from firms submitting more than one file. Only if the permissible file size is exceeded, the Consultant may split the Expression of Interest into further files.

Important Notes:
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.
• The EBRD will conclude a contract with the selected Consultant, subject to the availability of funding and successful contract negotiations
• Shortlisting criteria plus weights are: (a) Consultant’s previous project experience in the development of similar energy sector regulatory programmes (conducting cost analysis, benchmarking of energy operators, tariff review and methodology, project planning, restructuring and optimisation) in Central and Eastern Europe countries – 30%; (b) Consultant’s previous project policy, legal and regulatory drafting experience related to the EU legislation and good European practices for power and energy sector regulation and market operation – 30%; (c)CVs of key experts, including local experts. – 40%

EBRD Contact Person:
Vivianne Headlam
Advisor, Technical Cooperation Team
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: +44(0) 207 338 6885; Fax: +44 (0) 207 338 7451
e-mail: lewishev@ebrd.com