Kyzylorda Electricity Distribution Project - Consultant for the Corporate Development Program

Procurement ref: 45971

Country:Kazakhstan

Business sector:Power and energy

Funding source:EBRD Shareholder Special Fund

Contract type:Consultancy Services

Notice type:Invitation for expressions of interest (CSU)

Issue date:03 Jul 2015

Closing date:31 Jul 2015   at  15:00   Kyzylorda

Kyzylorda Electricity Distribution Project -  Consultant for the Corporate Development Program

Notice has been updated on 23 July 2015 as follows: 

• Deadline for submission of the Expressions of Interest is hereby extended until Wednesday, 12 August 2015.
• The EOI should be submitted in both English and Russian languages. Please refer to the revised Submission Requirements section.

The Notice was amended on 20 July 2015 to include the following clarification:

It’s currently expected that the implementation of the Corporate Development Plan and the Financial and Operational Performance Improvement Programme will take approximately 36 months.  While the principal structures, systems, processes and documents are expected to be defined and developed within the first year of the Services, the Consultant will be required to provide support to the Client for the key stages during the entire 3 year period to ensure efficient and effective implementation of the programme.   The exact timetable for provision of all deliverables as well as the key implementation milestones will be agreed with the Consultant during the inception stage.  For the avoidance of doubt, it will not be necessary for the Consultant to maintain full-time presence in the Kyzylorda over the entire period of 3 years.

Executing Agency (Client):
JSC Kyzylorda Regional Electricity Company
Sultan Beybarys str,
Kyzylorda
Kazakhstan

The Client Contact Person:
Nurlybek Tulegenov,
Chairman of the Management Board
JSC Kyzylorda Regional Electricity Company
Tel: +7 /724-2/ 90 22 05
email: tulegenov_n@krek.kz

The EBRD Contact Person:
Yvonne Wilkinson
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 7123
Fax: +44 20 7338 7451
E-mail: WilkinsY@ebrd.com

Project Description:

The Joint Stock Company Kyzylorda Regional Electricity Company ("KREC” or the “Client”) has requested the European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) to provide technical assistance to implement the Kyzylorda Electricity Distribution Project.

The EBRD is providing finance to rehabilitate and modernise the low and medium voltage distribution networks in the Kyzylorda Oblast (the “Project”), including the installation of modern electricity meters and automatic control systems, strengthening the capacity and efficiency of transformers, and distribution lines aimed at reducing distribution network losses and increase in energy efficiency.  The expected technical and commercial losses reduction will have significant reduction of related carbon emissions as the power generation sector of Kazakhstan is of high carbon intensity.

The Project consists of the following components:

• Rehabilitation of the 0.4-110 kV low and medium voltage network, including lines and substations, which were originally constructed about forty years ago. Consequently it is a high priority to improve the quality and reliability of electricity supply to the end consumers.

• Installation of new Critical Infrastructure Protection (“CIP”) intended to adequately protect and secure electrical substations.

• Installation of new network meters and automated system of electricity accounting and control system (“ASKUE”) as well as a number of new “smart meters” for consumers, and related hardware and software systems. International experience shows that rehabilitating distribution networks and improving metering arrangements is one of the fastest and most cost-effective methods of reducing losses and improving collection rates.  These measures in turn stimulate energy efficiency levels. Further improvement in bill collection (presently at around 80%) will also be permitted due to firm implementation of payment discipline and remote disconnection features.

Assignment Description:

The Bank’s investments will be procured in accordance with EBRD Procurement Policies and Rules for Public Sector Projects. The Company and the Kyzylorda Oblast Akimat require a firm or group of firms (the “Consultant”) to assist the Company to improve the Company’s commercial standing, service and environmental and social performance (the “Assignment”). The Consultant will identify and implement the necessary corporate, financial and operational improvements required to meet the related covenants included in the EBRD finance documents. This will be achieved via the following major institutional development actions:

•   Development and implementation of a Financial and Operational Performance Improvement Programme (“FOPIP”) in close co-operation with the Company. The FOPIP will focus on ensuring that the Company meets the covenants set forth in the financing documentation with EBRD. It is expected that the FOPIP will include both corporate development actions and financial and operational improvements:
   o Control over assets and service agreement;
   o Organisation related to the current corporate status, management   structure, internal and external reporting lines, decision making bodies, and staff employed;
  o Management Information Systems;
  o Financial Performance Improvements;
  o Accounting, Budgeting and Cash Management;
  o Revenue Collection Procedures;
  o Operational Efficiency;
  o Environmental and social issues management; and
  o Public and customer relations.

•   In close co-operation with the Company, development and adoption of a medium-term Corporate Development Plan for the Company and to improve its corporate planning capacity to assist its ongoing transition towards a self-sustaining entity and commercial operations, as well as implementing the Environmental and Social Action Plan developed for the Company. The Consultant will assist the Company to develop procedures and systems to build a corporate planning process into the existing budget and business planning processes. The Consultant will also identify other areas of management, finance and operations that should be considered in future corporate development plans, depending upon the progress made by the Company.

•  In close co-operation with the Company, development and introduction of a Management Information System.

•  Develop a methodology, standards and monitoring systems for annual publication of energy use and key energy efficiency indicators on the Company web site.

The Consultant will co-operate closely with the Company and with the Kyzylorda Oblast Akimat to implement the covenants stipulated under the signed Project Support Agreement.

The expected outcome of the Assignment is that the Company effectively implements the set of recommendations and/or targets or standards agreed in the FOPIP, corporate development plan and PSA and meets the related covenants included in the EBRD finance documents.

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 November 2015 and has an estimated overall duration of 36 months.

Cost Estimate for the Assignment: EUR 300,000.00 (exclusive of VAT). Subject to availability of funding, the excellent performance of the selected Consultant and the specific needs of the Client the Assignment may be extended beyond the current scope and time line.

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 funded by the EBRD Shareholder Special Fund. Selection and contracting is subject to the availability of funding

Eligibility: There are no eligibility restrictions.

Consultant Profile: The Consultant should have preferably 10 years of practical experience in developing similar assignments and a good knowledge of International Financial Institutions’ procedures and rules. In addition, the Consultant should have deep knowledge of electricity distribution sector with international experience of not less than 10 years.

The Consultant must set out clear communication lines with the beneficiaries, so that they are able to draw on the support of the Consultant as required. It is envisaged that this will be best supplied through a combination of long-term and short-term expertise.

The Consultant Team would likely comprise the following expertise and some individuals may fulfil more than one role:

• Team Leader / Electricity Network Operations Expert with preferably:

• 10 years relevant professional experience working on similar assignments in the electricity distribution sector in Central Asia and/or other EBRD countries of operation;
• proven experience of leading a team of experts; and
• excellent knowledge of English and Russian language for coordination and report writing purposes

• Electricity Institutional and Regulatory Expert with preferably:

• 10 years relevant professional experience in the electricity distribution sector; and
• knowledge of Russian and English languages;

• Financial/Accounting Expert with preferably:

• 10 years of relevant professional experience;
• with knowledge of the public financing, IFRS and modelling; and
• knowledge of Russian and English languages;

• IT/MIS Expert with preferably:

• 10 years of relevant professional experience; and
• knowledge of Russian and English languages; 

• Environmental and HSE Management Systems Expert with preferably:

• 10 years of relevant professional experience, including experience in ESIAs and E&S due diligence, health& safety, gender and inclusion expertise in electricity distribution; and
• knowledge of Russian and English languages;

• Local Legal Expert with relevant experience in the areas of natural monopolies regulation and knowledge of Kazakhstan tariff legislation;
• Local Experts with good communication skills and evidenced technical knowledge of electricity distribution.

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

(a) brief overview of the firm/group of firms including company profile, organisation and staffing;

(b) details of similar experience of firm or group of firms and related 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, assignment budget, percentage carried out by consultant in case of association of firms or subcontracting, main activities, objectives;

(c) 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.

(d) 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 20 pages (excluding CVs Consultant Declaration and Contact Sheet).

The complete expression of interest (including CVs, Consultant Declaration and Contact Sheet) should be submitted, in English  and Russian languages via email (pdf) to the Client’s contact person, to reach the Client not later than the closing date.

The expression of interest will be submitted as one file attachment (pdf) not exceeding 4MB. Consultant’s Declaration Sheet may be submitted as a separate file. Marketing materials and brochures are not required and will be disregarded. The Client reserves the right to reject applications of firms submitting more than one file.

One additional copy shall reach the Bank’s contact person by the same due date.

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.

2. The shortlist criteria are as follows:

(a) Firm’s previous project experience (including international) in developing similar assignments, including specific experience in electricity distribution sector – 30%

(b) Firm’s experience in procedures and rules of International Financial Institutions (or similar) preferably in the region 20%

 (c) CV of Team Leader with preferably 10 years’ experience in electricity distribution similar assignments in Central Asia and/or other EBRD’s countries of operation – 30%

(d) CVs of other experts – 20%.