Review of Regulatory Framework for Private Sector Participation In the Egyptian Electricity Market (Merchant Projects)

Location:

Egypt

TCRS Number:

11751

Business sector:

Energy

Notice type:

Public

Status:

Approved

PSD disclosed:

31 Jul 2019

Project Description

The European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) is committed to building deep and liquid energy markets in its Countries of Operations, including through the strengthening of independent regulation, the implementation of market-supporting regulatory frameworks, and the entrenchment of market-based behaviour.

A programme of gradual yet deep electricity market reform was initiated in Egypt with Law 87/2015; targeting transition from a traditional, vertically integrated, regulated state monopoly model to that of a fully competitive market. The Law envisages the gradual liberalisation of the electricity sector with extensive private sector participation, including through the establishment of a deregulated segment in which eligible private consumers will be able to choose directly their own retail suppliers. At the same time, Egypt possesses significant renewable potential and is committed to capturing the full value of this indigenous resource base, to the benefit of the Egyptian energy system and consumers. 

The Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) has requested support from the EBRD on the review of the pertinent regulatory framework and recommendations for efficient electricity market opening, in line with the provisions of Electricity Law 87/2015 and international best practices. Copy from TCRS Record: “Rationale” and “TC Services”.

Within this context, the Bank wishes to engage a consultant (the “Consultant”) to work with EgyptERA, EBRD and potentially other local energy sector stakeholders, with the following objectives:

• Phase 1: Advise on the different aspects of private sector participation in the electricity market:

o Define the key parameters for successful private sector participation in electricity market (merchant power generation projects (IPPs)), taking into account both relevant international experience as well as the Egyptian market needs in order to achieve consumer satisfaction, support the system’s sustainability, and be fully in line with the provisions of Electricity Law 87/2015.
o Identify specific regulatory areas and propose options on specific aspects of private sector participation in merchant projects that will be suitable for the Egyptian Electricity Market (IPP licenses, use of transmission and distribution networks, contractual settlements, etc.).
o Support EgyptERA with the establishment of key methodologies, drafting of key regulations and contracts that will govern private sector participation as merchant projects in the Egyptian electricity market.

• Phase 2: Provide implementation support for private-to-private merchant generation projects to be developed in the first phase of Egyptian electricity market opening. 
 

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

Email: eSelection@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

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