Market Assessment and Residential Sector Legal Reform

Location:

Georgia

Business sector:

Sustainable Resources and Climate Change

Project number:

46169

Funding source:

Not Yet Determined

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

03 Dec 2014

Closing date:

22 Dec 2014   at  23:59   London

Access eSelection

Assignment Description: Georgia is a highly intensive country with the residential sector responsible for 41% of the electricity demand and 25% of the heat demand. Consequently, Georgia has a substantial potential for improving national energy efficiency (EE) levels by introducing and implementing EU best practices in the residential sector and unlocking the financial opportunities. The lack of proper legal framework, however, is a key barrier for financing projects on EE of buildings in Georgia. In order to provide assistance for potential financing of such projects the EBRD is interested in looking at the legal and institutional framework of urban housing stock in Georgia and supporting the Government in developing the necessary legal and regulatory framework that would enable the investment for potential EE projects.

The Ministry of Economy and Sustainable Development of Georgia (the "Ministry") is committed to increasing the level of residential energy efficiency in the country, however it lacks the resources and expertise to successfully improve the energy efficiency standards and performance requirements for buildings and has requested technical assistance from the European Bank for Reconstruction and Development ("EBRD" or the "Bank") with carrying out an assessment of the current legal, regulatory and technical environment and the regulatory, financial and technical implications of the implementation of the EU EE in buildings standards and requirements in Georgia and drafting legal amendments to improve the Housing Codes (the "Assignment"). To this end the Bank intends to engage a consultant (the "Consultant") to assist the Ministry with carrying out a market assessment and residential legal reform in energy efficiency in its residential building sector.

The key objectives of the Assignment are as follows:
(i) assess the policy, legal, regulatory, financial, regulatory and technical implications from implementing EU EE standards and requirements in the building sector;
(ii) conduct a comparative analysis of the Georgian policy and legislation for buildings against international best practices and produce recommendations for improvement of the residential EE policy and regulatory framework;
(iii) support the Ministry in amending housing and condominium legislation to incorporate such recommendations, provided there is Government commitment.
By achieving these objectives the Assignment would facilitate private sector financing in residential refurbishments which would include significant investments in energy efficiency measures.

The Assignment shall be conducted in two phases:

Phase 1 will aim to produce a detailed analysis of the building sector in Georgia, including policy, legislative and institutional set-up, technical and economic considerations.

The Consultant shall assess the existing gaps hindering energy performance in the residential sector, based on a review of sector statistics and an overview of the housing policy, legal regime for housing associations, management and maintenance obligations in multi-storey apartment buildings, relevant institutions and their capacity and develop specific recommendations for addressing residential sector deficiencies.

Subject to the recommendations provided in Phase 1 and the Government's commitment to implement them, the Consultant will undertake Phase 2 of the Assignment which aims to support the Ministry with drafting amendments to the building and housing codes or related legislation in order to address sector deficiencies.

The Consultant shall carry out the following tasks:

Phase 1

- Conduct a statistical review of the residential sector.
- Conduct a detailed analysis of building related energy efficiency policy and legislation identifying the EU standards (as reflected in the EPBD 2010, Energy Labelling Directive 2010/30 and other EU legislation) that should be considered in developing Georgia’s policy and legislative framework on EE in the residential sector
- Conduct an institutional and financial analysis of the Georgia residential sector.
- Project the expected development of the building stock in Georgia in the next 10 years (2015-2025) and future energy demands based on existing construction practices.
- Conduct a stakeholder analysis providing a comprehensive description of roles and responsibilities of the key stakeholders involved under the proposed model(s) including government and regional authorities, housing associations, banks, utilities and residents etc. as well as a training and capacity assessment identifying the training needs for residents, management companies, commercial banks or other financial institutions etc.
- Provide recommendations and road map.
- Prepare a strategy for development of a residential energy efficiency programme taking into account the technical analysis, financial model(s) and barriers analysis.

Phase 2

Provided that the Recommendations developed under Phase 1 are accepted by the Ministry and request for further assistance is confirmed, the Consultant could carry out the following tasks (to be further confirmed/elaborated during Phase 1):

- Conduct a comparative analysis of housing policy, legislation and regulations.
- Draft amendments to the housing and condominium legislation.
- Work with legal and regulatory experts of the Ministry and advise them on legal, technical and institutional aspects of suggested legislative changes to housing legislation.
- Conduct capacity building and public awareness programmes targeted at municipalities and other local authorities and other relevant parties informing them of new rights and responsibilities envisaged under the new legal regime which may also include the organising of a site visit trip to an EU country to increase understanding of procedures among key Georgian decision makers (subject to availability of funding).

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 will be conducted in two phases. Phase 1 is expected to start in Q1 2015 and has an overall duration of 6 months and Phase 2 is expected to start after completion of Phase 1 and has an overall duration of 10 months. No extensions are currently envisaged.

Cost Estimate for the Assignment: Phase 1 – EUR 90,000.00 (exclusive of VAT) and Phase 2 - EUR 195,000.00 (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 respons e 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 this assignment will be financed through EBRD’s donor funded Technical Cooperation Funds Programme.

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 efficiency sector (at least 10 years)
- Extensive international and local policy, legal, economic/technical capacity and regulatory experience in residential EE, property, and housing legislation, municipal legislation and procurement

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

For Phase I

- International policy and legal expert (to act as Team Leader) with extensive policy and legal skills and experience (preferably 15 years) working with countries in Central and Eastern Europe in harmonising their legislation with the EU EPBD and improving their housing codes with specific experience in municipal projects, procurement, housing and condominium legislation.
- International Energy Efficiency Expert with extensive engineering experience (preferably at least 10 years) building energy auditing and certifications, HVAC/utilities design, and knowledge in compliance with best available energy performance practices and capital investment appraisal
- International Financial and Economic Expert with experience (preferably at least 10 years) working with countries in Central and Eastern Europe on improving their energy efficiency sector performance and experience in energy policy development and energy efficiency economics and preparation of financial models for residential EE financing.
- Local policy, economic and/or regulatory expert with preferably 10 years in working on energy/residential energy efficiency in Georgia and knowledge of the EU EE policy and legislation and previous working experience with municipal or other state authorities.

For Phase II

- International policy expert (to act as Team Leader) with extensive policy and legal skills and experience (preferably 15 years) working with countries in Central and Eastern Europe in harmonising their legislation with the EU EPBD and improving their housing codes with specific experience in municipal projects, procurement, housing legislation.
- International Legal Expert (preferably at least 10 years) with extensive policy and legal drafting skills in energy efficiency and with specific experience in housing and condominium legislation. Experience in developing condominium legislation would be considered an advantage
- International Financial/Economic Expert with experience (preferably at least 10 years) working with countries in Central and Eastern Europe on improving their energy efficiency sector performance in the residential sector.
- Local policy and legal expert with preferably 10 years working on energy or residential energy efficiency in Georgia, knowledge of the EU EE policy and legislation and previous working experience with municipal or other state authorities.
- Local legal and regulatory expert with preferably 7 years working on residential energy efficiency in Georgia and specific experience in housing and condominium legislation and procurement.

- Local capacity, including fluency in Georgian language, is required for both phases. The Consultant shall be responsible for translating any documents provided in Georgian language for the purpose of this Assignment. Strong spoken and written English skills with the editorial capacity to revise highly-technical documents with policy implications is required.

Provided that the Consultant’s team expertise is sufficient for one but not the two phases, EBRD may contract two different consultancy firms for the two phases.

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, 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. Do not send expressions of interest to the EBRD’s contact person.

Important Notes:
(1) Consultant 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 EBRD shall conclude a contract with the selected Consultant.
(3) Shortlisting criteria plus weights are:
(a) Consultant’s previous financial, economic and engineering project experience in building energy efficiency - 25%;
(b) Consultant’s previous experience in the development of residential and condominium sector policy and legal reform – 30%;
(c) Consultant’s previous project experience in Central and Eastern Europe countries – 15%;
d) CVs of key experts – 30%

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