Kokshetau Water Project - Feasibility Study

Procurement ref:

65115

Location:

Kazakhstan

Business sector:

Municipal and environmental infrastructure

Project number:

48111

Funding source:

Not Yet Determined

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

27 May 2016

Closing date:

17 Jun 2016   at  23:59   London

Access eSelection

Project Description:

The State Communal Enterprise “Kokshetau Su Arnasy” (the “Company”) wholly owned by the Kokshetau City Akimat (the “City Akimat”), approached the European Bank for Reconstruction and Development (the “Bank” or the “EBRD”) with a request to assess the possibility of financing modernisation of the water supply treatment plant (the “Project”).

Assignment Description:

The Bank wishes to engage a suitably qualified consultant (the “Consultant”) to prepare a comprehensive feasibility study (“FS”) to determine a Priority Investment Plan (“PIP”) developed from a long-term investment strategy, and evaluate its benefits, including assessing its environmental and social feasibility. A detailed PIP will be developed during the Project feasibility study based on the least cost analysis of the priority list and taking into account an EIRR calculation for the Project. Due to procurement concerns, the Consultants should assess the existing construction site’s status.

The overall objective of the assignment is to prepare a FS for the Company and the City Akimat, which the Bank can use to appraise the Project and take a decision on the prospective financing.

Specific objectives of the assignment shall include, inter alia:

  • Technical and financial feasibility assessment of the proposed investments including whether it is the most effective least cost investment programme.
  • Financial analysis of the Company and preparation of financial projections. The projections shall be fully consistent with the proposed PIP, strategic development plan and be based on prudent assumptions on the Company’s revenues and expenditures. The Consultant will prepare the financial forecasts and the Project financial model (using Microsoft Excel) that will cover a period of 15 years (from 2016 to 2030).
  • Financial analysis of the budgets of the Company, the City Akimat, and the Oblast Akimat and preparation of their financial projections.
  • Determination of an efficient implementation strategy for the PIP.
  • Calculation of the Bank’s standard measuring indicators and EBRD Sustainable Resources Initiative (“SRI”) impact indicators (Annex 3).
  • Once the Project/PIP has been confirmed, screen the Project against the EBRD’s Environmental and Social Policy (2014, “ESP”) and associated Performance Requirements (“PRs”) to propose, and agree with the EBRD, the project category (A or B) and confirm the environmental and social due diligence required.
  • If the Project is categorised as B (once agreed with the EBRD), carry out the Environmental and Social Assessment (Environmental and Social Due Diligence – ESDD) of the proposed project to identify its environmental and social risks, impacts and benefits and to structure the Project to comply with the Bank’s Environmental and Social Policy and Performance Requirements. If the Project is categorised as A, this terms of reference will be revised by the EBRD.
  • To the extent possible, the FS should:
    • take into account the potential impacts of climate change on the Project in order to build in resilience to climate change related risks;
    • assess the resource efficiency opportunities (including energy and water efficiency and waste minimisation potential and the impact on GHG emissions) on the Project.

The FS will provide an overview of the Company’s procedures and technical, operational, environmental, social, and financial performance, and should form the basis for agreeing on the Company’s restructuring objectives in the loan document (e.g. reduction in water losses, improvements in tariff collections, standards of treatment, etc.).

In order to meet the objectives above, the Consultant shall undertake the following tasks:

3.1: Baseline Study;

3.2: Technical Assessment;

3.3: Long term investment strategy;

3.4: Priority Investment Programme (“PIP”);

3.5: Financial analysis and projections;

3.6: Environmental and social assessment (“ESA”);

3.7: Resource Efficiency Assessment.

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

Assignment Start Date and Duration: The Assignment is expected to start in Q3 2016 and has an estimated overall duration of 4 months.

Cost Estimate for the Assignment: EUR 195,000 (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: It is anticipated that the contract will be financed through the EBRD’s donor funded Technical Cooperation Funds Programme. Selection and contracting is 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:

- Not less than 10 years of practical experience in conducting and developing feasibility studies for International Financial Institutions (IFIs) and a good knowledge of IFI procedures and rules on public procurement and disbursement policies.

- Demonstration of deep knowledge of the water/wastewater sector, with international experience of not less than 10 years, specifically institutional and legal framework aspects, environmental and social requirements; local financial management standards, professional standards of technical knowledge internationally as well as in the region.

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

a) Key Expert No 1 Project Manager/ Team Leader with preferably 15 years or more of previous professional experience in in the field of water supply and wastewater management, with comprehensive experience of similar assignments in Kazakhstan, as well as in institutional and commercial management of water/wastewater Company.

b) Key Experts No 2 - Financial specialists with relevant experience in public financing and modelling.

c) Key Experts No 3 - Technical specialist(s) with relevant experience in water supply and wastewater management.

d) Key Experts No 4 - Environmental and social specialist(s) with specific expertise water and wastewater projects. These experts must have a good knowledge and understanding of the EBRD environmental requirements, demonstrated experience of previous work with IFIs and with utilities in the Republic of Kazakhstan (or similar countries).

e) Key Expert No 5 – Climate change expert with experience in evaluation in climate change.

f) Key Expert No 6 - Institutional expert with experience in similar assignments.

g) Key Experts No7 - Resource efficiency expert with experience in water and waste water treatment.

h) Key Expert No 8 - Legal expert with relevant experience in the areas of natural monopolies regulation and knowledge of the Republic of Kazakhstan’s tariff legislation.

i) Key Experts No 9 (Pool of Additional Experts) consisting of local experts with good communication skills and evidenced technical knowledge of water supply and wastewater.

All Key Experts shall be fluent in written and spoken English. It is essential that the Consultant’s team contains some experts fluent in Russian

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 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.

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.

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 25 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:
Larissa Gosling, Technical Co-operation
European Bank for Reconstruction and Development
One Exchange Square, London EC2A 2JN
Tel: + 44 20 7338 6338
e-mail: GoslingL@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:

  • Consultancy firm's experience in developing feasibility studies for IFIs and a good knowledge of IFI procedures and rules on public procurement and disbursement policies – 20%
  • Consultancy firm's experience and expertise in the water/wastewater sector, with international experience of not less than 10 years, specifically institutional and legal framework aspects, environmental and social requirements; local financial management standards, professional standards of technical knowledge internationally as well as in the region – 30%
  • Qualifications and competence of the consultant's team of Key expert 1 – 15%
  • Qualifications and competence of Key experts 2 to 8 – 5 % each - 35%.