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Ukraine: Ivano-Frankivsk District Heating: Project Manager and Contracts Supervisor

 | Published May 29, 2015  -  Deadline June 18, 2015
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Executing Agency (Client): Ivano-Frankivsk Teplokomunenergo The Client Contact Person: Vasyl Rushchak Director State Local Enterprise "Ivano-Frankivskteplokomunenergo" 59a, Khmelnytckogo Street 76007 Ivano-Frankivsk Ukraine Tel: +380 342 263511 Fax: +380 342 263511 Email: plan@tke.if.ua Email: olena2003@yandex.ua (main) The EBRD Contact Person: Marina Matushina Advisor, Technical Cooperation European Bank for Reconstruction and Development One Exchange Square London EC2A 2JN Tel: + 44 20 7338 6577 Fax: +44 20 7338 7451 E-mail: matushim@ebrd.com Project Description: In 2009 State Local Enterprise "Ivano-Frankivskteplokomunenergo" (the “Company” or the “Client”) received a loan from the European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) and an investment grant from the Government of Sweden through the Swedish International Development cooperation Agency (“SIDA”) to support the rehabilitation and modernisation of the municipal district heating infrastructure (the “Project”). The Project is a high priority for the city of Ivano-Frankivsk (“Ivano-Frankivsk” or the “City”) in terms of the development of municipal structured financing with an international financial institution. Recent increases in gas prices in Ukraine create strong demand for energy-saving investments. The implementation of the Project started in the Q2 2010 but it has been delayed, partly due to litigation over an important production site of the Company, A third party, the power distribution company JSC “Prykarapattiaoblenergo” (“Oblenergo”) claimed that the site was not owned by the City but rather by Oblenergo, questioning the Company’s operations at the site. Following a protracted litigation process between the City and Oblenergo, Oblenergo took ownership of the boiler house and established its own district heating operation, thus reducing the Company’s service area. This directly affected the Project as the SIDA grant was to finance investments in the area no longer serviced by the Company. While the implementation of the Project was effectively put on hold, the Company has continued to invest in the rehabilitation and upgrading of the City district heating system with its own resources. This investment included inter alia the installation of 3 new biofuel boilers with a total capacity of 2.7 MWh, the replacement of 10.2 km of obsolete main pipelines with new pre-insulated pipelines and the installation of metering. The Company has also been implementing a Corporate Development Programme prepared with support from a TC-funded international consultant, achieving some of the transition targets such as demonstration of successful restructuring (opex optimisation), shift to biomass, installation of demand side measures and metering. At the request of the City and the Company, the Bank extended the last availability date till 9 February 2013 to allow for additional time to resolve the ownership dispute, however no disbursement has been made to date as the Project Priority Investment Programme (“PIP”) had to be revised reflecting the change in geographical area that the Company now covers. Given this material change, the Project scope has been reconfigured in 2014 to focus on the Company’s remaining service area. Pursuant to the Bank’s requirements, the Company has set up a Project Implementation Unit (the “PIU”) and a Tender Evaluation Committee (the “Evaluation Committee”) staffed with local personnel. The PIU’s activity is aimed at co-ordination of all activities under the Project and cooperation between the representatives of the Company on the Project sites and the contractor as well as at improvement of the project management mechanisms. The original Project implementation and procurement support contract included all aspects of implementation, including preparation of the design, technical specifications, bidding documents, assistance in holding a tender, tender evaluation and contract finalisation, including administration of the contract implementation as well as setting up a disbursement system. Given the long delays with the Project and the change of Project area, it has been decided that all tasks related to design, technical specification, tendering, evaluation and contract award pertaining to the boiler houses located at Troleybusna, Medichna and Viyskovykh Veteraniv Streetsas well as individual heating sub-stations will be implemented under the original contract. Assignment Description: All remaining tasks related to (i) design, technical specification, tendering, evaluation and contract award pertaining to the other two boiler houses located at Doroshenka and Dovha St. and rehabilitation of pipelines as well as (ii) support of the Company in administration and supervision of all the contracts will be carried out under this assignment. The contracts below are expected to be procured as per the Procurement Plan. Supply and installation of a 4 MW biomass boiler at the Troleybusna boiler house; Modernization of 2 boiler houses located at Medichna St. and Viyskovykh Veteraniv St. with installation of new small-size gas fired boilers and 1 biomass boiler; Modernization of 2 boiler houses located at Doroshenka St. and Dovha St. with installation of medium sized gas fired boilers; Supply and installation of 148 individual heating sub-stations with heat-exchangers in the areas of Doroshenka, Troleybusna and Nadviryanska – Khokevicha districts; Rehabilitation of pipelines. The overall objective of the assignment is to facilitate the timely and effective implementation of the Project by: Preparation of tender documentation pertaining to two boiler houses located at Doroshenka and Dovha Street. and rehabilitation of pipelines in close cooperation with the PIU as well as assistance in subsequent tendering, evaluation and contract award related to these components. Providing Project management support to the Company and to the PIU in order to co-ordinate, administer, manage, monitor, and evaluate all the aspects of the Project with the main focus on financial and contract administration. Ensuring timely receipt of disbursements to pay under all the contracts contained in the updated procurement plan including assistance in opening and operation of letters of credit, if required; Ensuring that all reports required by the EBRD for the implementation of the Project and/or under the corresponding amended Loan and Grant Agreements are submitted on schedule; Preparing an integrated time schedule for progress meetings with various parties; attending meetings together with the PIU to support the Company’s overall programme, receiving responses and comments on reports, and discussing the Project related issues on a regular basis with the PIU and other key stakeholders; distributing minutes of meetings, including follow-up actions required to ensure the progress of the Project. 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 2 years. Maximum Cost estimate for the Assignment: EUR 285,000.00 (exclusive of VAT). 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: Sida-EBRD Ukraine Energy Efficiency and Environment Consultant Cooperation Fund (SWUK). Selection and contracting are 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 previous project experience related to district heating projects, including without limitation experience in developing district heating projects, the financial and technical issues of the sector, investment and operating costs and practices, and the relevant regional and European Union environmental laws and standards. The Consultant should have project experience in the former CIS countries, preferably in Ukraine. I The Consultant’s expert team is expected to include the following key experts (with short-term support as required in other disciplines): Key Expert 1: Project Manager; Key Expert 2: Resident Project Manager(s)/District Heating Engineer; Key Expert 3: Procurement/ Contract Management Specialist (FIDIC Engineer); Key Expert 4:Finance/Disbursement Specialist; Key Expert 5: Designer(s); Key Expert 6: Engineer(s). All experts should preferably have 5 years’ experience of the activity which they are proposed for including without limitation: experience gained in countries with climatic conditions similar to the Project sites; experience in design of district heating and energy efficiency projects, knowledge of FIDIC and/or World Bank/EBRD Supply and Installation contractual arrangements; experience in (i) planning and design activities; (ii) assistance with planning and design activities; (iii) project management; (iv) project management assistance; (v) engineering; and (vi) procurement of goods, works and services; good knowledge of procedures and rules of procurement of international financial institutions, such as the World Bank, ADB or EBRD; good knowledge of requirements of the Ukrainian legislation concerning construction, financial, accounting and disbursement issues would be an advantage. Submission Requirements: In order to determine the capability and experience of consultants seeking to be selected, the information submitted should include the following: 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 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 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 Failure to provide the duly completed and signed Consultant Declaration may result in the applicant being disqualified from the selection process. The expression of interest should not exceed 20 pages (excluding CVs and Consultant Declaration and Contact Sheet). One original and 2 copies of the expression of interest, each original/copy in two languages: (i) English and (ii) Ukrainian or Russian, shall be submitted to the Client in an envelope marked “EXPRESSION OF INTEREST for Ivano-Frankivsk District Heating – Project Manager and Contracts Supervisor”, to reach the Client not later than the time and date indicated as the deadline for submission above. In addition, one copy of the expression of interest should be submitted electronically to the Client to: olena2003@yandex.ua. Furthermore, the expression of interest shall be submitted electronically to the EBRD’s contact person by the same time and date. Important 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. Shortlisting criteria and respective weightings are: Firm’s experience related to district heating projects, including without limitation experience in developing district heating projects, the financial and technical issues of the sector, investment and operating costs and practices, and the relevant Regional and European Union environmental laws and standards - 35% Firm’s experience in the former CIS countries, preferably in Ukraine - 15% CVs of key experts - 50%.

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