Egypt: Technology and Policy Scoping for a Low-Carbon Egyptian Cement Industry

Location:

Egypt

Business sector:

Sustainable Resources and Climate Change

Funding source:

Southern and Eastern Mediterranean Multi-Donor Account

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

27 Mar 2015

Closing date:

25 Apr 2015   at  00:59   London

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Assignment Description:

The Egyptian cement market has seen substantial growth over the last ten years, reaching c. 50 million tonnes in 2013. The market comprises more than 20 players, both multinational and domestic firms, with total nominal capacity of around 70 million tons per annum (2014). Cement production is a highly carbon and energy-intensive activity, with a substantial environmental impact.

Over the past two years, Egypt has been facing an increasing energy crisis, with fuel shortages (especially natural gas supply) heavily affecting the cement sector, among other industries. In face of this significant challenge, the Government of Egypt (the “Government”) in May 2014 issued a temporary permission for cement plants to use coal/pet-coke as part of their energy mix to partially mitigate the impact of the disruptions in energy production. This will exacerbate the environmental impact of cement production in Egypt by potentially leading to significant increases in greenhouse gas (GHG) and local pollutant emissions from cement plant.

At the same time, the cement sector as a whole is diverse, with companies ranging from large multinational to small locally owned producers. There appears to be a significant variation in the ability to comply with environmental safeguards and actual compliance, which further exacerbates the pollution challenges. The development also needs to be seen in an international climate policy context.

The European Bank for Reconstruction and Development (the “EBRD” or the “Bank”), intends to support the Government under its Sustainable Resource Initiative (‘SRI’). The Bank wishes to engage a consultant (the “Consultant”) for mitigating the impact of the new regulations by outlining an alternative, realistic low-carbon path for the Egyptian cement industry, based on the application of international best practices and a full analysis of the environmental and economic impact of the changes in regulations.

Main Objectives

The key aim of this Assignment is to identify both the policy and technology actions needed to achieve a sustainable low-carbon future of the Egyptian cement industry, thus reducing or mitigating the impact of the new regulations. Furthermore this Assignment would also be developed in an international climate policy and industrial competitiveness context. Specifically, the objectives of this Assignment are to support the government in implementing and developing:

a) Establishing a technology roadmap for a sustainable low-carbon future of the Egyptian cement industry with a particular view to mitigate as far as possible the recent change in fuel regulations, aiming to move as close as possible towards these changes becoming GHG neutral at sector level through a combination of introducing technologies allowing for alternative low-/no-carbon fuels and increased levels of enforcement of regulatory compliance.
b) A full and documented stakeholder engagement through consultation with relevant stakeholders following the finalisation of the draft (technical) report aimed to solicit a broad spectrum of views from industry, civil society and other stakeholders on findings of the report.
c) Following on from the technical report and the stakeholder engagement consultation, the production of a barrier analysis for a sustainable low-carbon future of the Egyptian cement industry that identifies all the legislative, regulatory, and economic barriers to Egypt’s cement industry moving onto a low-carbon development path, including providing recommendations to overcome these barriers. To define the technology options required to implement the transition to a low-carbon future through the design of a low carbon production process at three (existing) reference plants, out of which two at least are private sector plants.

Assignment Duration: The Assignment is expected to start in May 2015 and has an estimated overall duration of 12 months.

Cost Estimate for the Assignment: EUR 300,000; exclusive of VAT.

The consultant must determine whether any VAT would be chargeable on the services and the basis for that 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 purhcased 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: EBRD SEMED Multi-Donor Account (MDA). The MDA is supported by Australia, Finland, France, Germany, Italy, Netherlands, Norway, Sweden, Taipei China and UK. Please note selection and contracting will be 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 with previous project experience related to:

1. international project advisory work in the field of energy, resource and energy efficiency related to the cement industry;
2. working with public administrations in providing key policy recommendations in the sectors as described above.

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

• Project Manager with international experience and expertise in the cement industry;
• International finance expert with proven experience in development and implementation of cement industry investment projects;
• International engineering expert with proven experience in development and implementation of cement industry investment projects;
• International Green House Gas (GHG) baseline and Monitoring Reporting Verification (MRV) expert
• International policy expert with proven experience in development and implementation of cement industry policies;
• International carbon market and tax policy expert
• Senior local finance expert with experience in cement industry projects in Egypt.
• Senior local engineer experience in cement industry projects in Egypt.
• Senior local environmental, climate and energy policy/regulatory expert with experience in cement industry policies in Egypt.

SubSubmission Requirements:

In order to determine the capability and experience of Consultants seeking to be selected for this Assignment, 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 be available to work on the Assignment;
4. 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.

The above information should not exceed 10 pages excluding CVs and Consultant Declaration and Contact Sheet.

The complete Expression of Interest (including CVs and Contact Sheet) shall be one file (pdf or Word), not exceeding 4MB, to be uploaded to eSelection. The EBRD reserves the right to reject applications of 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.

Expressions of Interest shall be submitted, in English, electronically through e-Selection, to reach the Bank not later than the closing date.

Bank Contact Persons:

Agnieszka Kozolwska
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 7488
E-mail: KOZLOWSA@EBRD.COM
(submissions should be sent through eSelection and NOT to this email address)

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. Consultants must state in the contact sheet whether partners are participating as 'consortium members' or 'sub-contractors' and should take note of the EBRD's Procurement Policies and Rules and in particular paragraph 5.5 (b) on page 24, see http://www.ebrd.com/pages/workingwithus/procurement/project/policies.shtml
3. The evaluation criteria are as follows:

a) Consultant’s previous experience in international project advisory work in the field of energy, resource and energy efficiency related to the cement industry and working with public administrations in providing key policy recommendations. 40
b) Consultant’s previous project experience related to Egypt 25
c) CV’s of key experts with previous professional experience as described in section Consultant Profile 35