Kazakhstan: Development and Implementation of Subsoil Use Standards

Location:

Kazakhstan

Business sector:

Sustainable Resources and Climate Change, Natural resources

Project number:

63486

Funding source:

Kazakhstan TC Acc

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

06 May 2016

Closing date:

31 May 2016   at  23:59   London

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The procurement Notice has been revised on 25 May 2016 - please see the text in bold highlighting the changes.

Assignment Description:

The Government of Kazakhstan (GoK) intends to adopt a new mining and petroleum sector legal framework to increase the contribution of both sectors to growth, improving governance and attracting more private investment. To implement this policy, the GoK intends to review the legal and regulatory framework in force governing the exploration, production, sale, and taxation of minerals and hydrocarbons. A working group (the "Working Group") led by the Ministry of Investments and Development was created and tasked with the review of the existing legal and regulatory framework and the coordination of the public consultation process.

The EBRD wish to engage a consulting company (the "Consultant") to support the GoK's Working Group in drafting and approval of the Subsoil Use Code of Kazakhstan, provide guidance and advice on certain international good practices to support the sustainable development of the petroleum and mining sectors, and to attract private sector’s investment while maximising benefits for Kazakhstan. Specifically, the expert advice is needed in relation to (a) implementation of Kazakhstani Code for the Public Reporting of Exploration Results relating to Mineral Resource and Mineral Reserve as required by the CRIRSCO International Committee and Code for the Public Reporting of Exploration results relating to Hydrocarbon Resources and Hydrocarbon Reserves as required by international SPE-PRMS standards (together the "Standards"); (b) providing technical support for training workshops on the implementation of the Standards for the key deposit types within Kazakhstan for both mining and hydrocarbon projects.

The Consultant will be responsible for the following tasks:

Phase 1

(a) Develop a draft Code for the Public Reporting of Exploration results relating to Hydrocarbon Resources and Reserves as required by the Standards.

(b) Develop a Road map for the transition from the currently used GKZ standards for reporting of exploration results, resources and reserves for the petroleum and mining sectors to the Standards including advice on establishment of required professional organisations and regulatory framework (the “Road Map”). Analysis of international experience (Norway, Canada, Russia, etc.) on transition to the Standards and role of the State (incl. state accounting of reserves, regulation practices) in the process and after full implementation.

(c) Provide advice on the technical and legal implications of the new Standards, alignment of the existing legislation with the new legal framework proposed, on closing of existing gaps and a road map for the implementation of the legal and regulatory changes necessary for the introduction of the Standards. The Consultant’s recommendations must be specific and shall include the proposed wording of all the amendments needed to the existing legislation and new regulations which shall be developed.

(d) Assist the GoK's Working Group in addressing comments from other government entities, industry, and the public at large, outline alternative approaches and good international practice.

Phase 2

(a) Develop guidelines for development of educational programs by specialised universities for training of Kazakhstani experts to prepare reports in accordance with the Standards.

(b) Develop methodology and present a set of “training of trainers” workshops for the key deposit types within Kazakhstan for both mining and hydrocarbon projects and how the new Standards apply to the subsequent representation of Resources and Reserves; the principal geological issues impacting the confidence in the quotation of such volumes and special exploration procedures required to achieve requisite international compliance.

(c) In accordance with best international practices advise on the content of the online platform with possibilities for remote training on use and application of the Standards, and online database of background information and resources.

Assignment Duration: The assignment is expected to start in Q3 2016, and will have duration of 21 months.

Cost Estimate for the Assignment: EUR 868,200; 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 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 through Kazakhstan – EBRD TC Account.


Eligibility:
There are no eligibility restrictions.

Consultant Profile: The consultant will be a firm or consortium and shall have relevant experience in the following areas:

- Advising governments on legal, regulatory, and institutional reforms of the petroleum and mining sectors, particularly in countries with exploration and mining activity and potential, as well as institutional and economic frameworks similar to Kazakhstan;

- Implementation of national reporting standards based on international standards for reporting on exploration results, resources and reserves;

- Exploration activities and procedures as well as the subsequent preparation, presentation and critical review of resource and reserve estimation, both for petroleum and mining in accordance with the major international standards;

- Providing resource and reserve estimation services and preparation of public reporting; and

- Working with the various international bodies that have produced the currently accepted resource and reserve reporting standards and oversee the implementation of these.

EBRD seeks a highly qualified and extensively experienced multi-disciplinary team comprising senior legal and technical experts.

The Consultant's team should include the following Key Experts:

- Team Leader

- preferably at least 15 years of experience in advising governments on regulatory and institutional reforms in the extractives sectors in particular in Kazakhstan and/or countries with similar prospectivity and similar institutional and economic frameworks as Kazakhstan

- fluent in English, and Russian and/or Kazakh (or translator/interpreter is provided by the Consultant)

- Project Administrator

- preferably at least 10 years of experience in mining and/or oil and gas industry in particular in Kazakhstan and/or countries with similar prospectivity and similar institutional and economic frameworks as Kazakhstan

- work experience with international organisations, developers of currently recognized standards for public reporting on exploration results, resources and reserves (e.g. CRIRSCO, JORC, SPE PRMS, etc.)

- fluent in English, and Russian and/or Kazakh
- Exploration Geologist
- preferably at least 15 years of experience in resource and reserve reporting in the mining sector in accordance with the major international standards (e.g. CRIRSCO, JORC, etc.). Additionally, must demonstrate experience in a) working with the various international bodies that have produced the currently accepted resource and reserve reporting standards, and b) overseeing the implementation thereof
- Petroleum Geologist
- preferably at least 15 years of experience in resource and reserve reporting in the oil & gas sector in accordance with the major international standards (e.g. PRMS, etc.). Additionally, must demonstrate experience in a) working with the various international bodies that have produced the currently accepted resource and reserve reporting standards, and b) overseeing the implementation thereof
- Mining Engineer/Economist
- preferably at least 10 years of experience in technical reporting, including Competent Person Reports (CPR) for stock exchange listings, financial analysis, risk assessment, strategy planning, etc.
- experience in providing resource and reserve reporting services to companies with mining assets in Kazakhstan
- Petroleum Engineer/Economist
- preferably at least 10 years of experience in technical reporting, including Competent Person Reports (CPR) (Expert's Report or Independent Resources Report) for stock exchange listings, financial analysis, risk assessment, strategy planning, etc.
- experience in providing resource and reserve reporting services to companies with oil & gas assets in Kazakhstan
- International Mining Legal/Policy Expert
- preferably at least 15 years of experience in providing mining law and policy advice
- experience in advising governments on regulatory and institutional reforms in the mining sector in particular in countries with similar prospectivity and similar institutional, economic and legal frameworks as Kazakhstan (civil law countries)
- International Petroleum Legal/Policy Expert
- preferably at least 15 years of experience in providing mining law and policy advice
- experience in advising governments on regulatory and institutional reforms in the oil & gas sector in particular in countries with similar prospectivity and similar institutional, economic and legal frameworks as Kazakhstan (civil law countries)
- Local Lawyer
- preferably at least 10 years of experience working in Kazakh law making sector
- good knowledge of Kazakh mining and oil & gas sector and relevant legislation


Submission Requirements: Interested consultants are hereby invited to submit expressions of interest.
In order to determine the qualifications and competence of consulting firms seeking to be shortlisted, the information submitted should include the following:

1. Company/group of firms' profile, organisation and staffing (max. 5 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 available to work on the Assignment;
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 the Consultant Declaration 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 should be submitted, in English, electronically through eSelection to reach the Bank not later than the closing date indicated above at 23:59 London time.

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)
Note:

1. Following this invitation for expressions of interest, a shortlist of qualified firms will be formally invited to submit proposals.

2. The evaluation criteria and weightings are:
a) Consultant's experience in advising governments on legal, regulatory, and institutional reforms of the petroleum and mining sectors, particularly in countries with exploration and mining activity and potential, as well as institutional and economic frameworks similar to Kazakhstan – 10%
b) Consultant's experience in implementation of national reporting standards based on international standards for reporting on exploration results, resources and reserves – 10%
c) Consultant's experience in exploration activities and procedures as well as the subsequent preparation, presentation and critical review of resource and reserve estimation, both for petroleum and mining in accordance with the major international standards – 10%
d) Consultant's experience of providing resource and reserve estimation services and preparation of public reporting in accordance with the Standards for companies with assets in Kazakhstan – 10%
e) Consultant's experience in working with the various international bodies that have produced the currently accepted resource and reserve reporting standards and oversee the implementation of these – 10%
f) Calibre of the Key Experts as requested above – 50%