Kazakhstan: Pavlodar Tram Project - Public Transport Strategy

Country:Kazakhstan

Business sector:Municipal and environmental infrastructure

Funding source:EBRD Shareholder Special Fund

Contract type:Consultancy Services

Notice type:Invitation for expressions of interest (CSU)

Issue date:24 Jun 2015

Closing date:23 Jul 2015   at  16:00   Pavlodar

Executing Agency (Client):

Pavlodar Tram Management Company

The Client Contact Person:

Krisa Alexander, President

JSC “Tramvainoe Upravlenie Goroda Pavlodara”

140000, Industrial zone Severnaya, 258

City of Pavlodar, the Republic of Kazakhstan

The EBRD Contact Person:

Sophie Medert, Advisor, Technical Cooperation Team

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

Tel: + 44 20 7338 7371

E-mail: mederts@ebrd.com

Project Description:

The European Bank for Reconstruction and Development (the EBRD” or the “Bank”) has extended a senior loan of up to KZT 2.5 billion (EUR 10 million equivalent) to the Pavlodar Tram Management Company (the “Client”), who is fully owned by the Pavlodar Oblast Akimat (the “Oblast Akimat”). The proceeds of the Loan will be used for i) procurement of up to 25 new units of modern energy efficient trams; (ii) rehabilitation of the tram infrastructure including catenary and junctions; and (iii) balance sheet restructuring (the “Project”). The loan will be split into 2 tranches. The Project also includes co-financing of up to USD 13.5 million from the Oblast Akimat and/or the Government of Kazakhstan (the “GOK”) under the Enhanced Partnership Framework Arrangements (the “EPFA”).

According to the Law on Transport, the Ministry of Transport and Communication (the “Ministry”) is the state body that carries out governance in the area of transport. The Ministry is in charge of drafting and implementing normative legal acts, national standards and
technical rules regulating transport, defining the concessionary fares, the social groups who benefit from them and the implementation conditions and safety and security of transport. However, compensation for transportation of concessionary passengers on urban services is the liability of individual cities.

The Department of the Municipal Utilities, Public Transport and Automobile Roads of the City (the "Department") has the responsibility of strategic planning, investment, provision and regulation in the public transport sector in the City. In the case of Pavlodar, the Department is the policy maker in the public transport sector.

Regular public transport service is provided with two modes in Pavlodar: road-based buses and minibuses, and rail-based trams. There is one tram operator: the Company, and 9 bus operators, including one public bus company owned by the Oblast Akimat rendering services on social regional routes.

Assignment Descriptions:

The legal framework of the Republic of Kazakhstan (“RK”) for transport, provided in the Law on Transport as of 21.09.1994, No.156, envisages an option to provide subsidies by the Government of the RK to transport operators in order to compensate for the provision of services that are not profitable under existing regulated tariffs on socially important routes.

According to the approved methodology a city has to approve a list of socially important routes. Then an operator rendering services on such route can apply for compensational subsidy by providing his actual cost of service (profit is not eligible) and actual fare revenue collected during previous calendar year. Based on the information provided, the
city makes an allocation in the next year budget. After compensational subsidy is budgeted, the operator has to send monthly or quarterly reports on actual cost and fare revenue collected on the particular route. The difference will then have to be compensated. In practice this loss-compensation mechanism does not work due to number of reasons.

The Client now intends to retain a consulting company (the  "Consultant”) to revise the public transport strategy for Pavlodar (the “Assignment”).

The objective of the Assignment is to assist the City of Pavlodar in the preparation of a comprehensive Public Transport Strategy and the Consultant shall perform the following tasks  as described below:

TASK 1. Analysis of the Regulatory Framework and Public Transport Market. The Consultant will carry out a comprehensive
analysis of regulatory framework and public transport market in the City of Pavlodar including assessment of overall cost of public transport services being rendered in the City.

TASK 2. Vision for the City’s Future Public Transport System. The Consultant will set the measurable (in terms of values and time) Key Ratios for City’s public transport system.

Task 3. New Integrated Route Plan. The Consultant will review all available information and studies on City’s route network, including valid at the date Master Plan, City’s main development trends and plans.

TASK 4. New tendering documentation for bus routes. In order to implement new route scheme the Consultant will prepare a new bus route tender document package in line with local law. The package will include a Public Service Contract template. The template PSC
should include a methodology for fare revenue sharing and calculation of City’s subsidies in case of introduction of an AFC system.

TASK 5. Pre-feasibility study for an integrated ticketing system. The Consultant will carry out a pre-feasibility study for introduction of an automated fare collection system on public transport services in  Pavlodar.

TASK 6. Detailed action plan for selected strategy scenario. The Consultant will prepare a detailed action plan for the selected PT Strategy scenario. The action plan should: (i) distribute goals and measures to a relevant stakeholders, (ii) detailed description of the
goal and measure; (iii) resources required, as well as source for resources, (iv) timeframe for each goal and measure; (v) relationship to a particular strategic goal.

TASK 7. Investment plan and financial model. The Consultant will prepare an investment plan and financial model for public transport system of Pavlodar for the selected scenario of the Strategy. The financial model will forecast financial flows of the PT system as well as their impact to the City. Is should allow identifying the tax flow to the local and government budgets, as well as compensations and compensational subsidies required on annual basis.

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

Assignment Start Date and Duration: The Assignment is expected to start in Q3 2015 and has an estimated overall duration of 24 months.

Cost Estimate for the Assignment: EUR 450,000.00 (exclusive of VAT). Subject to availability of funding, the performance of the selected Consultant and the specific needs of the Client the  Assignment may be extended beyond the current scope.

The Consultant must determine whether any indirect taxes/VAT are chargeable on the proposed services and state the basis for such. If any indirect taxes/VAT are payable, the Client will have to pay indirect taxes/VAT element to the services directly to the Consultant unless otherwise agreed.

Funding Source: It is anticipated that the contract will be financed by the EBRD Shareholder Special Fund. 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 preferably previous project experience related to:

• the urban public bus sector, preferably in the region;
• procurement procedures and rules of International Financial Institutions, such as the World Bank or EBRD or similar.

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

• Key Expert 1: Project Manager with experience in urban transport projects, preferably including development of urban transport strategies and experience in managing projects of the similar scope and complexity and knowledge of IFI’s (or similar) policies, procedures and standards.

• Key Expert 2: Local Lawyer with good knowledge of the local
  legislation, experience in the urban transport sector and good knowledge of the IFI (or similar) requirements.

• Key Expert 3: Transport Economist with experience in urban transport sector and good knowledge of the IFI (or similar) requirements.

• Key Expert 4: Transport Planner with experience in urban transport planning.

• Key Expert 5: Automated Fare Collection Specialist with experience in urban transport ticketing systems.

• Key Expert 6: Financial Expert preferably with experience in urban transport projects and good knowledge of IFI financial, accounting and disbursement requirements.

Submission Requirements: In order to determine the capability and
experience of Consultants seeking to be shortlisted, 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 expression of interest shall not exceed 25 pages (excluding CVs Consultant Declaration and Contact Sheet).

One original and one copy of the expression of interest (hardcopy), in English and in Russian, should be submitted to the Client in an envelope marked “EXPRESSION OF INTEREST for Kazakhstan: Pavlodar Tram Project - Public Transport Strategy; TCS ID: 45970”, to reach Client not later than 23 July 2015 at 16:00 (Pavlodar time). One further electronic copy should be submitted to the EBRD’s contact person by email by the same due date and time.

Important Notes:

1. Following this invitation for expressions of interest, a shortlist of qualified firms will be formally invited to submit proposals. Consultant selection and contracting will be subject to availability of funding.

1. The shortlist criteria are as follows:

1. Firm’s previous project experience in the urban public bus sector, preferably in the region (40%)

1. Firm’s previous experience with procurement procedures and rules of International Financial Institutions, such as the World
   Bank or EBRD or similar (30%)

1. CV of Key Experts (30%)

1. There are two other assignments currently procured by the Client related to this assignment:

• Pavlodar Tram Project: Project Implementation Support, TCS ID 45968

• Pavlodar Tram Project: Corporate Development Programme, TCS ID: 45959

Whilst Consultants are allowed to bid for all three assignments at the same time, they will only be eligible for one contract award.