Electricity Sector Regulatory Development Programme: Phase Two - Legislative Amendment, Establishment of Tariff Unit and Capacity Building (Component One)

Location:

Tajikistan

Business sector:

Power and energy

Project number:

48194

Funding source:

EBRD Shareholder Special Fund

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

18 Jan 2016

Closing date:

09 Feb 2016   at  23:59   London

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Assignment Description: The European Bank for Reconstruction and Development (“EBRD” or the “Bank”) considers supporting the Government of Tajikistan (the “Government”) in restructuring and developing the national electricity sector, including reorganisation of the legal and regulatory aspects of the electricity sector structure.

The implementation of the energy sector restructuring plan for 2011-2018 drawn up by the Government in cooperation with international financial institutions (IFIs) and bilateral donors is overseen by the Donor Coordination Committee (DCC) consisting of the key IFIs and donors. In 2014, under the umbrella of the DCC and working with the Ministry of Energy and Industry (the “Ministry”), the EBRD started a technical cooperation programme aimed at identifying the necessary changes, building capacity within the sector to effectively implement these changes and supporting the practical implementation of a modernised regulatory framework for the sector.

Phase One of the technical cooperation programme was completed in April 2015, and the consultant engaged by the EBRD presented to the Ministry its findings and the proposal for Phase Two, which would aim at implementing the recommendations of Phase One.

Within the umbrella of the DCC, and working with the Ministry, the EBRD now intends to implement Phase Two of the Regulatory Development Technical Cooperation Programme, which will consist of two Components: regulatory technical assistance and capacity building (Component One) and establishment of the independent regulator for electricity industry (Component Two).

The EBRD now intends to engage a consulting company (the “Consultant”) to carry out the activities specified under Component One (the “Assignment”).

The key objectives of the Assignment are as follows:

(i) to carry out an in-depth legal analysis of the legal framework governing electricity sector in Tajikistan and provide detailed suggestions on its amendment in order to establish and operate a tariff setting unit which can eventually transition to an independent regulator;

(ii) to deliver capacity building services to and support the relevant authorities in the context of relevant legislative developments and as regards the establishment of the tariff setting unit;

(iii) to provide legal drafting assistance regarding amending the existing and preparing new legal instruments, as may be necessary.

The Consultant will carry out the following tasks:

1. Conduct an in-depth analysis of all laws and regulations relating to the electricity sector in Tajikistan and provide detailed suggestions on all provisions of primary and secondary legislation which need to be amended (or, in the alternative, recommend any interim new legislation and regulations) for the establishment and operation of a tariff setting unit which can transition to an independent regulator.

2. Support the Ministry and other relevant agencies in presenting, explaining and achieving approval of amended or new legislation.

3. Provide capacity and institution building assistance to the Ministry with the establishment of the tariff setting unit, as a means of implementing the amended primary or secondary legislation

4. Provide training, to enhance the technical capacity of the members of the tariff setting unit; this includes training which will enable the members of the tariff setting unit to (i) calculate the electricity tariffs for retail, distribution and transmission (including consideration of introduction of locational incentives, balancing tariffs, and ancillary services) on the basis of a transparent tariff methodology; (ii) assist the Ministry in developing a scheme to protect low-income consumers in a manner that does not distort the market for energy; (iii) elaborate and set requirements for the reporting by the regulated companies of data necessary for the calculation of the tariffs; and (iv) elaborate and set requirements for the security and quality of supply standards for the industry

5. Help the Ministry with the drafting of (i) amendments to the existing legislation (or a new decree) and (ii) regulations necessary for the establishment and operation of the tariff setting unit until the independent regulator has been established, as well as (iii) technical rules (grid code and distribution rules).

Assignment Start Date and Duration: The Assignment is expected to start in Q2 of 2016 and has an estimated overall duration of 18 months. Subject to the availability of funding, Consultant’s performance and the specific needs of the Bank the Assignment may be extended beyond the current scope.

Cost Estimate for the Assignment: EUR 285,000 (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 special status of the Bank 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: This Assignment will be funded by the EBRD Shareholder Special Fund.

Eligibility: There are no eligibility restrictions.

Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with substantive experience in the energy sector, comprising experts with extensive policy and legal drafting skills, regulatory experience and strong sector specific engineering and economic/technical capacity.

The Consultant will have extensive - i.e. preferably more than 15 years - experience in working on international best practices for the electricity sector regulation and market operation as well as significant experience in emerging markets (including CIS countries and in particular in Central Asia).

English and Russian capacity is required for the project, with fluent English and Russian language skills of the individual lead/presenting consultant. Local Tajik capacity and language skills are required as well.

The Consultant may be expected to collaborate on this assignment with other EBRD external experts, as appropriate.

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

- International Policy/Economic Expert (to act as Team Leader) with extensive policy skills and experience (preferably at least 12 years) working with countries in the CIS countries and, specifically, in Central Asia and working on international best practices for electricity sector regulation and market operation; fluent Russian is required.

- International Regulatory Expert with experience (preferably at least 10 years) and extensive policy and legal drafting skills in electricity sector; experience in developing electricity legislation would be considered an advantage.

- International Tariff Expert with experience (preferably at least 10 years) working with countries in the CIS countries and specifically Central Asia on developing end-user utility costs.

- International Engineering/Technical Expert with experience (preferably at least 12 years) working with the CIS countries and specifically Central Asia on improving their electricity sector performance.

Local Legal and Engineering Experts with preferably at least 10 years of experience working on electricity matters in Tajikistan and/or neighbouring countries and previous working experience with state authorities.

Submission 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 experience of advising on energy policy and regulatory projects and in similar assignments undertaken in the previous five years, including their locations. Experience in the EBRD countries of operations is highly desirable.

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. The role of all proposed advisors must be clearly indicated in the proposal

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 above information should not exceed 20 pages excluding CVs and Consultant Declaration Form and Contact Sheet.

The complete expression of interest (including CVs, Contact Sheet and Consultant Declaration Form) shall be one file (pdf or Word) to be uploaded to eSelection. EBRD reserves the right to reject applications of firms submitting more than one file. Only if the permissible file size (4MB) 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 and time indicated above.

Bank Contact Person:

Elena Kolodiy

Technical Cooperation Team

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN, United Kingdom

Tel: + 44 20 7338 6765

e-mail: Kolodiyo@ebrd.com (submissions should be sent through eSelection and NOT to this email address)

Notes:

Following this Invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals.

2. The evaluation criteria are as follows:

(a) Firm's or group of firms' previous project experience in similar tasks as described in Section Consultant Profile - 30%;

(b) Firm's or group of firms' previous project experience in similar projects in electricity sector in emerging markets (including CIS countries and in particular in Central Asia) - 30%;

(c) CVs of the proposed key experts - 40%.