Country:Kazakhstan

Business sector:Other

Project number:48648

Funding source:Kazakhstan TC Acc

Contract type:Consultancy Services

Notice type:Invitation for expressions of interest (CSU)

Issue date:23 Aug 2016

Closing date:22 Sep 2016 at  23:59 London

Project Description:

JSC National Company "Kazakhstan Temir Zholy" ("KTZ", "KTZ Group", the "Client") is a national railway operator in the Republic of Kazakhstan. KTZ is a vertically integrated holding company that manages railway infrastructure and operates freight and passenger train services. KTZ plays a key role in the Kazakh national transport sector, handling 47 per cent of rail freight in Kazakhstan. In addition, KTZ is the only company in Kazakhstan, which renders services of a trunk railway network to carriers and services associated with the use of the a trunk railway network for passage and traffic of trains (hereinafter referred to as TRN). KTZ has requested the European Bank for Reconstruction and Development (the EBRD or the Bank) to provide technical assistance to undertake an economic analysis of the adjustment of rates of the trunk railway network and develop an updated methodology for formation of rates for the services of the trunk railway network (the Project).

Assignment Description

The Bank now intends to engage a consulting company (the Consultant) with previous project experience in similar assignment in order to implement the Project (the Assignment).

The expected outcome of the Assignment is development of a new TRN services rates formation methodology and analysis of impact on TRN services as a result of changes in the rates according to the new methodology, and ultimately, formation of the optimum model of the TRN services rate regulation.

The selected Consultant is expected to provide the following services, which are envisaged to be achieved in five stages:

Stage I. Development of the TRN services rates formation methodology, including the rate list;

Stage II. Analysis of impact in TRN services as a result of changes in the rates according to the new methodology;

Stage III. Development of the action plan for implementation of recommendations for improvement of the TRN services rates formation and regulation system and implementation of the new TRN services rates formation methodology;

Stage IV. Evaluation of feasibility of implementation of pilot testing of the new TRN services rates formation methodology;

Stage V. Support of KTZ in the approval of the development results with concerned state authorities, the national chamber of entrepreneurs, KTZ and representatives of shippers for making decisions on rate regulation.

The results of Consultant’s work for each stage will be subject to discussion/consulting with the relevant state authorities, the national chamber of entrepreneurs, KTZ and large/ main shippers. The Consultant will proceed with next stage of assignment on receipt of instruction from EBRD.

It is expected that implementation of the assignment will include both study and interviews with KTZ management and relevant competent authorities in Astana, Kazakhstan, as well as the national chamber of entrepreneurs and main shippers of Kazakhstan.

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

Assignment Start Date and Duration: The Assignment is expected to start in Q4 2016 and has an estimated overall duration of eighteen months.

Cost Estimate for the Assignment: EUR 1,200,000.00 (exclusive of VAT).

The Consultant must determine whether any VAT would be chargeable on the services and the basis for that determination, without taking into consideration the special status of the Bank as an IFI and state this to the Bank in their response to the Invitation for Expressions of Interest. To the extent that a Consultant incurs input VAT on goods and services purchased in connection with the provision of services (e.g. VAT on airline ticket) which is not otherwise recoverable by the consultant from the local tax authority, the gross cost to the consultant of such expenses shall be treated as a reimbursable expense.

Funding Source: It is anticipated that the Assignment will be funded by the Kazakhstan TC 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 preferably with previous project experience related to (i) the development of the tariff regulations, reforms and tariff methodologies in the railway sector, encompassing trunk railway networks to carriers and services associated with the use of the a trunk railway network for passage and traffic of trains; (ii) implementing similar assignments in Kazakhstan or locations with comparable business environment.

The Consultant’s expert team is expected to include Key Experts as follows:

Key Expert 1 (Project Manager) – with preferably 10 years of previous professional experience in the railway tariff regulation and reforms, having experience in development of tariff methodologies for railway companies in developed and emerging markets, day-to-day coordination and implementation of the project (English speaking capability is a must, Russian is desirable but not mandatory);

Key Expert 2 (Railway sector tariff economist) – with preferably 10 years of previous professional experience in railway sector regulatory issues in Kazakhstan and internationally, having experience in (i) tariff reforms related to the railway sector, (ii) development of tariff methodologies for railway companies in developed and emerging markets, (iii) developing an optimal regulatory framework models to ensure long-term balance of interests of all market participants, eg. railway service providers and cargo shippers (English speaking capability is a must, Russian is desirable but not mandatory);

Key Expert 3 (Senior international expert) - with preferably 10 years of previous professional experience in (i) reforming railway sector tariff regulatory framework, (ii) in development of tariff methodologies for railway companies in developed and emerging markets, (iii) implementing various regulatory methodology models, including Regulated Asset Base, and demonstrable knowledge of railway sector issues in Kazakhstan (English speaking capability is a must, Russian is desirable but not mandatory);

 Key Expert 4 (Senior local expert) - with preferably 10 years of previous professional experience in (i) the railway sector tariff framework in Kazakhstan, (ii) implementing various regulatory methodology models, including Regulated Asset Base methodology (Russian and English speaking capability is a must);

Key Expert 5 (Railway sector legal expert) - with preferably 10 years of previous professional experience in tariff regulation and assisting with drafting of amendments to the legislation (Russian and English speaking capability is a must).

 Submission Requirements: In order to determine the capability and experience of Consultants seeking to be shortlisted for this Assignment, 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 above information should not exceed 25 pages excluding CVs and contact sheet.

The complete expression of interest (including CVs, Consultant Declaration and Contact Sheet) should be submitted, in English electronically through e-Selection, to reach the Bank not later than the closing date. The expression of interest shall be one file (pdf). The EBRD reserves the right to reject applications of firms submitting more than one file. Only if the permissible file size is exceeded (4MB), the Consultant may split the expression of interest into further files.

Bank Contact Person:
Maria Haugh

Technical Co-operation

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

Tel: + 44 20 7338 7185

e-mail: [email protected] (submissions should be sent through eSelection and NOT to this email address)

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:
(i) Firm's previous project experience in development of the tariff regulations, reforms and tariff methodologies in the railway sector, encompassing trunk railway networks to carriers and services associated with the use of the a trunk railway network for passage and traffic of trains - 25%

(ii) Firm's previous project experience in implementing similar assignments in Kazakhstan or locations with comparable business environment - 35%

(iii) CVs of Key Experts proposed in line with the procurement notice - 40%