Water and Wastewater Framework Facility: Nookat Water Sub-project - Feasibility Study

Country:Kyrgyz Republic

Business sector:Municipal and environmental infrastructure

Project number:70138

Funding source:EBSF - EBRD Shareholder Special Fund

Contract type:Consultancy Services

Notice type:Invitation for expressions of interest (CSU)

Issue date:04 Aug 2017

Closing date:11 Sep 2017   at  23:59   London

Project Description:

The Nookat Water Company (the Company or the Client) has requested the European Bank for Reconstruction and Development (the EBRD or the Bank) to provide technical assistance for preparation of Feasibility Study for the Nookat Water Sub-Project (the Project).

Assignment Description:

The Bank wishes to commission a suitably qualified consultant (the Consultant) to prepare a comprehensive Feasibility Study to determine a priority investment programme (the PIP) developed from a long-term investment strategy, as well as to undertake an environmental and social and gender assessment of the project, including a qualitative and quantitative assessment of the physical environmental benefits of the project (the Assignment).

The overall objective of the Assignment is to prepare an Feasibility Study for the Client, which the Bank can use to appraise the Project and take a decision on the prospective financing.

The selected Consultant is expected to provide the following services:

• Technical and financial feasibility assessment of the proposed investments, including whether it is the most effective least-cost investment programme. Justify and refine the proposed investment based on the long-term investment programme. Where relevant the Consultant shall coordinate activities with other consultancy firms of other IFIs working on water projects in the City.
• Evaluation of the capacity of the Company and the Nookat City (the City) to undertake big investment programmes, this will include the evaluation of the financial situation of the Company and the city as well as relevant outcomes to date, and the sustainability of current/previous investments by other IFIs.
• Financial analysis of the Company, including IFRS restatement and audit of the Company's financials for years 2015, 2016, 2017 and preparation of key assumptions for the EBRD financial model. The assumptions shall be fully consistent with the proposed PIP, strategic development plan and be based on prudent assumptions on the Company’s revenues and expenditures. The Consultant will deliver the actual figures and inputs/assumptions that will cover a period of 18 years (from 2015 to 2033).
• Financial analysis of the budgets of the City and Company.
• Determination of an efficient implementation strategy for the PIP.
• Calculation of the Bank’s standard measuring indicators and Sustainable Resource Initiative (“SRI”) impact indicators (EBRD guidelines in an Annex to TOR will be provided).
• Carry out the Environmental and Social Assessment (E&S Due Diligence – ESDD), including a gender assessment, of the proposed project to identify its environmental, social and gender risks, impacts and benefits and to structure the Project to comply with the Bank’s Environmental and Social Policy (ESP) and Procurement Policies and Rules (PRs).
• Economic Inclusion Assessment; (i) a quantitative assessment of improved water and wastewater connections in underserved areas and the link to improved economic opportunities of the local population in those areas (e.g. through related health effects and/or time savings), (ii) this should include a specific assessment of the gender impact that the improved provision of water and wastewater connections will have on the economic opportunities for women (compared to men).
• To the extent possible, the Feasibility Study should:
• take into account the potential impacts of climate change on the project in order to build in resilience to climate change related risks;

• assess the resource efficiency opportunities (including energy and water efficiency and waste minimisation potential and the impact on GHG emissions) on the project.

The Feasibility Study will provide an overview of the Company's procedures and technical, operational, environmental, social, and financial performance, and should form the basis for agreeing on the Company's restructuring objectives in the loan document (e.g. reduction in water losses, improvements in tariff collections, standards of treatment, etc.).

In order to meet the objectives above, the Consultant shall undertake the following tasks:

1. Baseline Study;
2. Technical Assessment;
3. Long term investment strategy;
4. Priority Investment Programme (PIP);
5. Financial analysis;
6. Environmental and social assessment including gender assessment (ESA);
7. Economic Inclusion Assessment;
8. Resource Efficiency Assessment.

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 Q3 2017 and has an estimated overall duration of four months.

Cost Estimate for the Assignment: USD 175,000 (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 expected that the Assignment will be funded by the Shareholder Special Fund.

Eligibility: There are no eligibility restrictions.

Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with previous project experience related to:

- Not less than 10 years of practical experience in developing feasibility studies / due diligences for IFIs and a good knowledge of IFI procedures and rules on public procurement and disbursement policies

- Demonstration of in-depth knowledge of the water/wastewater sector, with international experience of not less than 10 years, specifically institutional and legal framework aspects, environmental and social requirements; gender and water, local financial management standards, professional standards of technical knowledge internationally as well as in the region.

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

• Water and Wastewater Engineer (Project Manager/Team Leader) with a university degree or equivalent qualification with a minimum of 15 years professional experience in the field of water supply and wastewater management, with comprehensive experience of similar assignments in Central Asia, as well as in institutional and commercial management of water/wastewater Company. He/she should demonstrate management and administration experience, including experience with procedures of international financing agencies (preferably EBRD procedures). The large number of different tasks and the complexity of administrational procedures require a permanent presence of the Project Manager in the Country during the project period of intensive work on preparation of the due diligence.
• Financial specialists with knowledge of the public financing and modelling.
• Technical specialists and water and wastewater engineers. with a university degree or equivalent qualification in engineering with a minimum of 7 years professional technical experience in engineering and design in the field of water supply and wastewater management, with comprehensive experience of similar assignments in Central Asia.
• Environmental and Social experts with experience in ESIAs and E&S due diligence, health & safety, stakeholder engagement, public consultation and disclosure in the local context, and/or resettlement expertise, in water/wastewater sector with experience of similar assignments and with recent track record in the region.
• Gender and inclusion expertise in water/wastewater sector with experience of similar assignments and with a recent track record in the region.
• Climate change expert with experience in evaluation in climate change.
• Institutional expert with experience of similar assignments.
• Resource efficiency expert with experience in water and waste water treatment.
• Legal expert with relevant experience in the areas of natural monopolies regulation and knowledge of Kyrgyz Republic tariff legislation.
• Local experts with good communication skills and evidenced technical knowledge of water supply and wastewater.

The Consultant shall engage Russian and/or Kyrgyz speaking staff on their team or arrange for translation/interpreting when necessary. All experts must be independent and free from conflicts of interest in the responsibilities accorded to them.

Submission Requirements: In order to determine the capability and experience of Consultants seeking to be selected 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 Consultant Declaration Form and Contact Sheet.

The complete expression of interest (including CVs, Consultant Declaration and Contact Sheet) should be submitted, in English and Russian 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:

Elena Kolodiy

Technical Co-operation

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

Tel: + 44 20 7338 6765

e-mail: kolodiyo@ebrd.com (submissions should be sent through eSelection and NOT to this email address)

Notes:

1. The selection will normally be made from responses to this notification only. Consultants will not be asked to submit a proposal. The highest-ranked Consultant will be selected from a shortlist and be invited to negotiate the contract, subject to availability of funding.
2. The shortlist criteria are:
3. Firm’s experience in developing feasibility studies for IFIs and knowledge of IFI procedures and rules on public procurement and disbursement policies – 20%
4. Firm’s experience in water/wastewater sector, specifically in institutional and legal framework aspects, environmental and social requirements; local financial management standards, professional standards of technical knowledge internationally as well as in the region – 30%
5. Qualifications and competence of the key experts – 50%