UKRAINE: Facilitating FDI in Ukraine's Inland Grain Storage Infrastructure

Location:

Ukraine

Business sector:

Agribusiness

Project number:

64040

Funding source:

Korean Technical assistance and Cooperation Fund

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

01 Aug 2016

Closing date:

12 Aug 2016   at  23:59   London

Access eSelection

Update: This procurement notice, initially published on 13 July 2016, has been re-published on 1st August 2016 (due to a technical issue with the eSelection system). The deadline to submit an Expression of Interest is extended until 12 August 2016 23:59 pm (London time).


Project Description

Ukraine is the world’s third largest global exporter of total grains as of 2015, with grains being one of Ukraine’s main export commodities. Ukraine’s total grain exports have been increasing throughout the last 5 years, while agribusiness is the main pillar of the economy. For this growth to continue, it is necessary for the sector to improve its existing grain storage infrastructure.

The existing inland grain infrastructure in Ukraine is increasingly outdated and obsolete, and constitutes a significant bottleneck to increased production and exports of grain produced. Further investments are needed to ensure that grain is handled at maximum capacity with minimum losses and according to international best practice. This need is echoed by investors and Ukraine’s government, while private sector companies have confirmed their readiness to invest in inland grain infrastructure.

The European Bank for Reconstruction and Development (the EBRD or the Bank), aims to facilitate the development of Ukraine’s grain storage infrastructure, by providing a technical analysis and evaluation of inland grain storage capacities. This will be accomplished through an analysis and evaluation of the logistics and infrastructure in select regions, as well as through the provision of recommendations on future investment opportunities. The EBRD has a key role to play in increasing market development and transparency by leveraging its links with the private sector in Ukraine.


Assignment Description

The Bank now intends to engage a consulting company (the Consultant) to provide a technical analysis of select grain storage facilities (the Assignment).

The Assignment will contribute to the development of grain production and exports, through a technical analysis and evaluation of grain storage facilities in select regions of Ukraine, providing insight into the existing bottlenecks as well as expansion potential.

A technical analysis of select grain storage facilities will provide information for further investment opportunities.

The Assignment will involve the following components:


A. Grain storage desk review
to analyse available data on Ukraine’s grain market and provide necessary information for potential investors to better target future activities. This will cover:

- Logistics, infrastructure and services related to existing inland grain storage facilities in select regions in Ukraine;

- Grain storage capacity of existing inland grain storage facilities;

- Evaluation of available performance indicators of select inland grain storage facilities and opportunities for investment;

- Analysis of major foreign/domestic players in the inland grain storage facilities;

- Current trends and grain storage development potential per region;

- Proposed list of 8-10 grain facilities with a high investment potential.


B. Technical evaluation of specific grain storage facilities
(8-10 facilities, as proposed under A.) through desk research and site visits, to cover:

- Site history, current operations and risks;

- Site location and neighbourhood;

- Site description and specifics (general area and built up area, configuration, geological and hydrological conditions);

- On-site buildings, structures and their condition (incl. railways, roads/parking, power/gas/water supply and storm water/sewage networks);

- Process facilities and their designed capacities (incl. road/rail intake, labs, flat/silo storage, cleaning/drying units, loading);

- Permitted limits of these utilities (power/gas/water supply and storm water/sewage networks);

- Development possibilities of the site and correlated risks of investments.


C. Specific recommendations for investments in evaluated locations
, to include:

- Recommendations for any other necessary analysis, including engineering, environmental or any other technical analysis that would be required to further inform private investments.

- A note on general investment attractiveness of specific regions and locations, highlighting the areas where foreign direct investment (FDI) would be most needed. This note will be shared with local stakeholders including the Ukrainian Grain Association.


Status of Selection Process:
Interested firms or groups of firms are hereby invited to submit expressions of interest (EoI).


Assignment Start Date and Duration:
The Assignment is expected to start in August / September 2016 and has an estimated overall duration of 12 months.


Cost Estimate for the Assignment:
EUR 100,000 (exclusive of VAT). No extension is envisaged to this Assignment.

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:
It is expected that the Assignment will be funded by the Republic of Korea. Please note that selection and contracting will be subject to the availability of funding.


Eligibility:
There are no eligibility restrictions.


Consultant Profile:
The Consultant will be a firm or a group of firms preferably with previous project experience related to:

· Ukraine's agriculture sector with particular expertise in both conducting technical evaluations of the grain sector and grain storage facilities, as well as current trends in grain infrastructure development and investments in Ukraine.

· Previous experience in working with the EBRD and/or other international financial institutions, including providing recommendations for the areas where potential FDI would be needed, will be considered an advantage.

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

a. Key Expert No 1 (Team Leader) with:

o Preferably 10 years of previous professional experience in conducting technical evaluations of the grain sector and grain storage facilities

b. Key Experts No 2-4 (Grain logistics and infrastructure experts) with:

o Analytical/research background in Ukraine’s grain market;

o Preferably 5-7 years of previous professional experience in developing grain infrastructure, storage facilities in Ukraine and in highlighting potential investment opportunities related to specific grain storage facilities as well as providing information to potential investors; and

o Written and oral fluency in English. Fluency in Ukrainian will be considered an advantage.


Submission Requirements
. In order to determine the capability and experience of Consultants seeking to be shortlisted for this Assignment, the information submitted should include the following:

· Company/group of firms’ profile, organisation and staffing (max. 2-4 pages).

· Details of previous project experience or similar assignments particularly 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.

· 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.

· 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 10 pages excluding CVs and contact sheet.

The complete expression of interest (including CVs, Consultant Declaration and Contact Sheet) should be submitted, in English electronically through e-Selection, to reach the Bank not later than the closing date. The expression of interest shall be one file (pdf). The EBRD reserves the right to reject applications of firms submitting more than one file. Only if the permissible file size is exceeded (4MB), the Consultant may split the expression of interest into further files.


Bank Contact Person:

Julie Michel (Ms)

Associate Advisor

Technical Co-operation

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

Tel: + 44 20 7338 7556

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


Notes:

1. The selection will normally be made from responses to this notification only. Consultants will not be asked to submit a proposal. The highest-ranked Consultant will be selected from a shortlist and be invited to negotiate the contract, subject to availability of funding.


2. The shortlist criteria are:

- Firm’s previous project experience in Ukraine's agriculture sector with particular expertise in both conducting technical evaluations of the grain sector and grain storage facilities, as well as current trends in grain infrastructure development and investments in Ukraine (60%)

- CVs of Key Experts No 1 (15%)

- CVs of Key Experts No 2-4 (25%)