Ukraine: UkrHydroEnergo Hydropower Rehabilitation Project - Lender's Engineer



Business sector:

Power and energy

Project number:


Funding source:

ECHR - Technical Assistance for Hydropower Rehabilitation Project in Ukraine

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

03 May 2019

Closing date:

30 May 2019   at  23:59   London

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Single Stage Open Competitive Selection – Request for Proposals

Project Description:

OJSC UkrHydroEnergo (“UHE” or the “Company”) is Ukraine's main hydropower generation company. Its generating units are the major contributors to the stability and quality of the national electricity network. The Company's nine hydropower plants (HPPs) on the Dnieper and the Dniester rivers meet around 7% of the total electricity demand in the country. In 1996, the Government of Ukraine launched a major rehabilitation program to refurbish all UHE’s HPPs (around 4,600 MW, 99 units) using the Company’s own funds and external financing.

UHE has signed two EUR 200m loans with the European Bank for Reconstruction and Development (“EBRD”) and the European Investment Bank (“EIB”) (or collectively the “Banks”), in 2011 and 2012 respectively to finance the EUR 400m phase of the rehabilitation program between 2013 and 2019 (the “Project”). The EBRD loan has been effective since 30 December 2012. The total project cost is estimated at EUR 614.6m.

The rehabilitation program is divided into several contracts (packages) and aims to:
- extend the lifetime of the units by at least 20 years;
- improve the environmental impact, reliability and operation costs of the power plants by installing new state-of-the-art generation equipment (turbine, generator) and transmission equipment (switchyard);
- optimise the use of the water resource by increasing the efficiency of the units by around 5% and their output by up to 10%;
- reinforce the safety of the power plant by rehabilitating the gates.

Assignment Description:

The Banks, represented by EBRD, will engage a qualified consultant to act as the Lender’s Engineer for the Project with a view of (i) monitoring the Project progress in line with the Project Implementation Plan prepared by the Client, (ii) ensuring the compliance with the Bank’s procurement and environmental policies and rules (the “Assignment”). In particular, the Consultant will carry out the following tasks:

– Provide technical and procurement support during procurement process until the signing of the contracts;
– Supervise and monitor progress of the implementation of specific contracts starting from the stage of equipment design and manufacturing until construction, installation and commissioning, including the implementation of the corporate Environmental and Social Action Plan and the Project’s Environmental and Social Action Plan that were agreed with the Company as part of the original loan agreement and project agreement;
– Report to the Banks on a quarterly basis;
– Review the operations, invoices as well as certificates of completion;
– Verify the completion of all conditions precedent to disbursement related to the environmental, social and technical aspects of the project implementation and agreements;
– Provide the advice required by the Banks in order that (i) the disbursements can be made in accordance with the loan agreement, (ii) the covenants in the Loan Agreement are fulfilled, (iii) the Project has been successfully completed in line with the objectives set in the Project implementation plan;
– Review the contractor’s procedures, invoices, schedule variances and quality assurance/control implementation during site visits;
– Alert the Banks to any emerging problems and assist the Banks in negotiating required corrective measures;
– Report on the completion of each package and the Project overall.

The expected outcome of the Assignment: The Project is completed successfully in line with the Project Implementation Plan and in compliance with EBRD’s procurement and environmental policies and rules.

Full Terms of Reference (TOR) of the Assignment can be found here .

Consultant Selection Procedure: Single stage open competitive selection. Interested firms or groups of firms are invited to submit a Technical and Financial Proposal.

Assignment Start Date and Duration: The Assignment is expected to start in June 2019 and has an estimated overall duration of 25 months.

Cost Estimate for the Assignment: EUR 557,000.00 (exclusive of VAT).

Funding Source: Selection and contracting are subject to the availability of funding. It is anticipated that the contract will be financed by the European Commission's Technical Assistance for Hydropower Rehabilitation Project in Ukraine Fund.

Eligibility: There are no eligibility restrictions based on the consultant's country of origin.

Consultant Profile: Corporate services are required. The Consultant will be a consulting engineering firm or a group of firms preferably with previous project experience in:

1. Technical and procurement supervision of similar HPP projects;
2. Working in countries with similar environmental and regulatory conditions, preferably in Eastern Europe;
3. Working with international financial institutions.

The following is the minimum experience and expertise shall be required for this Assignment:
• A Senior Engineer/Team Leader (Key Expert No 1) with an engineering degree, preferably with minimum 10 years’ experience in designing hydropower plants and dams, and with in-depth knowledge of power plant project schedule and management, good understanding of the financing requirements of EBRD/EIB or other international financial institutions;
• An Environmental and a Social Expert (Key Expert No 2) with an engineering degree, preferably with minimum 5 years’ experience of working in hydropower plants and dams, and with in-depth understanding of the requirements of EBRD or other international financial institutions; and
• A Local Engineer (Key Expert No 3) expert with an engineering degree, preferably with a minimum of 10 years of working experience with hydropower plants and spillway equipment design and procurement.
• A pool of Technical Experts (Non-Key Experts) to provide support from the back office with an engineering degree and preferably with a minimum of 5 years of relevant experience to cover design and procurement of (i) electrical equipment, (ii) electro-mechanical equipment, (iii) gates and hydro-mechanical equipment, (iv) other BOP equipment;

Submission Requirements: The consultants are now invited to submit a completed Technical and Financial Proposal as per the standard templates and instructions available at this link Interested Consultants should make themselves familiar with these Standard Templates, Standard Instructions and Conditions of Contract in preparation of their proposals.

1. The Technical Proposal shall be submitted in English electronically via eSelection not later than the Closing Date, as one single PDF file. The technical proposal should not exceed 25 pages excluding the Declaration Form and CVs (Form 1- TP 1 and Form 1 – TP 6).

2. The Financial Proposal (Form 2 – FP 1 and FP2) shall be submitted in English separately by email only to the Bank Contact Person. Consultants are reminded of the requirement to ensure the confidentiality of the Financial Proposals.
A Technical Proposal that contains elements of a financial proposal shall be declared non-responsive.
A Financial proposal submitted together with the technical proposals via e Selection shall be declared non-responsive.
Bank Contact Person:
Larissa Gosling
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
For the avoidance of doubt, technical proposals should be sent through eSelection and NOT to this email address. Financial proposals should be sent to this email address and NOT through eSelection.
Deadline to Submit Clarification Questions: Via e-mail to the Bank Contact Person by 16 May 2019.
Selection Method and Evaluation Criteria:

1. Technical Proposal Evaluation Criteria
(a) Firm's previous project experience as outlined under the Consultant Profile above (25%);
(b) Quality of the methodology proposed for the Assignment (25%);
(c) CVs of the Key Experts (35%);
(d) CVs of Non-Key Experts (15%).
The minimum technical score (St) required to pass is 80.

2. Opening of Financial Proposals

After the technical evaluation is completed, only the submissions which score 80 or above of the total marks available for the technical criteria will be eligible to have their financial proposals opened.

3. Combined Technical and Financial Evaluation

The lowest evaluated Financial Proposal (Fm) is given the maximum financial score (Sf) of 100. The formula for determining the financial scores (Sf) of all other Proposals is calculated as follows:

Sf = 100 x Fm/ F, in which “Sf” is the financial score, “Fm” is the lowest evaluated Financial Proposal, and “F” the price of the Proposal under consideration.

Proposals are then ranked according to their combined technical (St) and financial (Sf) scores using the weights (T = 80; F = 20) T + F = 100 as follows: S = St x T% + Sf x F%.

Important Notes:
1. The proposal validity period is 120 days from the deadline date for the receipt of submissions. During this period, the Consultant shall maintain its original Proposal without any change, including the availability of the Experts, the proposed rates and the total price.

2. The selection will be made from the Proposals received in response to this notification only, on the basis of the submission requirements and selection criteria set out in this Procurement Notice. The highest-ranked Consultant will be selected and invited to negotiate the contract, subject to availability of funding.

3. Any updates of and clarifications on this procurement notice shall be announced as updates on this notice, without any other notification. In the event of changes consultants will need to download the updated versions. Consultants are required to periodically check the notice for updates. Failure to take the updates into account while preparing the Proposal may result in disqualification or penalties to the scores in the evaluation.