District Heating Regulatory Reform Support Program (DHRRSP): Transition from Cost-plus tariffs to Incentive-based Pricing: Development of Secondary Legislation, Transitional Methodology, Benchmarking District Heating Sector, and Capacity Building of the Commission for State Energy and Public Utilities Regulation

Project ID: P151321
Borrower/Bid No: DHRRSP-QCBS-01

REQUEST FOR EXPRESSIONS OF INTEREST
(CONSULTING SERVICES– FIRMS SELECTION)

Country: Ukraine
Project: District Heating Regulatory Reform Support Program (DHRRSP)
Loan No.: TF017571
Project ID No.: P151321
Assignment Title: Transition from Cost-plus tariffs to Incentive-based Pricing: Development of Secondary Legislation, Transitional Methodology (including piloting), Benchmarking District Heating Sector, and Capacity Building of the National Commission for State Energy and Public Utilities Regulation.
Reference No. (as per Procurement Plan): DHRRSP-QCBS-01.

Ukraine has received financing from the International Bank for Reconstruction and Development (hereinafter - IBRD), acting as Administrator of Grant Funds provided by the Swedish International Development Cooperation Agency (hereinafter - SIDA) toward the cost of Technical Assistance Project "District Heating Regulatory Reform Support Program" (hereinafter - Project), and it intends to apply part of the proceeds to eligible payments under the Project for which this request for Expression of Interest is issued.

The consulting services (hereinafter – the Services) include: (i) development of secondary legislation for transformation of district heating sector to facilitate imposition of economically justified tariffs within a long-term fully functional and investment-based system, including incentives for reduction of operating costs; (ii) elaboration of a benchmarking system for assessment and comparison of district heating companies as an instrument for continuous improvement of their efficiency and organization of the regulatory process; and (3) institutional capacity building of the National Commission for State Energy and Public Utilities Regulation (hereinafter - Utilities Regulator) via elaboration of recommendations for improvement of organizational structure of the Utilities Regulator and DH sector companies in terms of tariff-setting policies, and organization of experience-sharing exercises and study sessions.

The Utilities Regulator now invites eligible consulting firms (hereinafter – Consultants) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The shortlisting criteria are:

             Technical and managerial capabilities of the firm (assessment will be done by comparison with other interested Consultants):

o   availability and qualifications of core staff;
o   availability of relevant certificates, awards and appreciations of the firm;
o   availability and qualifications of managerial staff

             Core business and years in business:
o   at least 20 years of experience in economic and financial consultancy;
o   experience in public utility sector shall be considered an advantage.

             Administrative and financial strength (assessment will be done by comparison with other interested Consultants):
o   organizational structure;
o   summary of financial information over FY 2012-2014.

             Experience in undertaking assignments of similar nature and complexity (assessment will be done by comparison with other interested Consultants).

The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank's Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers, dated January 2011 and revised July 2014 (hereinafter – the Consultant Guidelines), setting forth the World Bank's policy on conflict of interest.

Consultants may associate with other firms in the form of a joint venture or a sub-consultancy to enhance their qualifications.

A Consultant will be selected in accordance with the Quality- and Cost-Based Selection method as set out in Section II of the Consultant Guidelines.

Further information can be obtained at the address below during office hours from 09:00 to 17:00 local time.

Expressions of Interest must be delivered in a written form in English or Ukrainian language to the address below (in person, or by mail, or by fax, or by e-mail) by August 21, 2015. Expressions of interest should be submitted with indication of the following subject: "Ukraine-DH Reform: DHRRSP-QCBS-01: Expression of Interest by [name of consultant]".

The National Commission for State Energy and Public Utilities Regulation

Attn: Mrs. Ludmyla Kravchenko, Deputy Head of Department for Strategic Planning and International Coordination; or
Mrs. Lilia Kuzmich, Chief Specialist of Department for Strategic Planning and International Coordination
Address: 19 Smolenska Street,
Floor/Room: 3rd floor, Room 307
City: Kyiv
Postal Code: 03057
Country: Ukraine
Telephone: +38 (044) 204 70 72
Facsimile: +38 (044) 204 70 72
E-mail: kravchenko@nerc.gov.ua or Kuzmich@nerc.gov.ua