Consultancy Services to Advise on the different aspects of private sector participation in the electricity market (Phase 1) and Provide implementation support for private-to-private merchant generation projects to be developed in the first phase of Egyptian electricity market opening (Phase 2)

Item Description:

The European Bank for Reconstruction and Development (EBRD or the Bank) is committed to building deep and liquid energy markets in its Countries of Operation, including through the strengthening of independent regulation, the implementation of market-supporting regulatory frameworks, and the entrenchment of market-based behaviour.

A programme of gradual yet deep electricity market reform was initiated in Egypt with Law 87/2015; targeting transition from a traditional, vertically integrated, regulated state monopoly model to that of a fully competitive market. The Law envisages the gradual liberalisation of the electricity sector with extensive private sector participation, including through the establishment of a deregulated segment in which eligible private consumers will be able to choose directly their own retail suppliers. At the same time, Egypt possesses significant renewable potential and is committed to capturing the full value of this indigenous resource base, to the benefit of the Egyptian energy system and consumers.

The Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) has requested support from the EBRD on the review of the pertinent regulatory framework for efficient participation of private sector in power generation projects (renewables and conventional), in line with the provisions of Electricity Law 87/2015 and international best practices.

Assignment Description:

EBRD intends to select and contract a consulting company (the Consultant) to undertake the following activities:

Phase 1: Advise on the different aspects of private sector participation in the electricity market:

i. Define the key parameters for successful private sector participation in electricity market (merchant power generation projects (IPP’s)), taking into account both relevant international experience as well as the Egyptian market needs in order to achieve consumer satisfaction, support the system’s sustainability, and be fully in line with the provisions of Electricity Law 87/2015.
ii. Identify specific regulatory areas and propose options on specific aspects of private sector participation in merchant projects that will be suitable for the Egyptian Electricity Market (IPP’s licenses, use of transmission and distribution networks, contractual settlements, etc.).
iii. Support EgyptERA with the establishment of key methodologies, drafting of key regulations and contracts that will govern private sector participation as merchant projects in the Egyptian electricity market.

Phase 2: Provide implementation support for private-to-private merchant generation projects to be developed in the first phase of Egyptian electricity market opening.

Full Terms of Reference for the Assignment can be found here: http://www.ebrd.com/documents/procurement/79853-tors.pdf .

Consultant Selection Procedure: Single stage open competitive selection. Interested firms or groups of firms are invited to submit a Technical and Financial Proposal.

Assignment Start Date and Duration: The Assignment is expected to start in October 2019 and has an estimated overall duration of 24 months.

Cost Estimate for the Assignment: EUR 475,000 ( exclusive of VAT).

Funding Source: It is anticipated that the contract will be financed by Technical Cooperation Funds.

Eligibility: There are no eligibility restrictions based on the consultant’s country of origin.

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

A) Economics/Policy expertise, with experience in:
a. electricity market design, in both mature and emerging jurisdictions
b. economic regulation of electricity networks – in particular, the structure of charges for accessing the networks and determining revenue requirements for networks.
B) Legal expertise, with experience in drafting legislation in the electricity sector – preferably licenses and contracts for entities operating in the electricity sector and drafting network codes;
C) Technical expertise on the operation of electricity networks, including the technical and administrative procedures in relation to the operation of the network.
D) Experience in the power sector of Egypt, including knowledge of the legislative and regulatory setting and familiarity with the network and grid code.

The Consultant’s expert team is expected to include the following key experts (the ‘Key Experts’):

1) Team Leader – expert in electricity sector policy and regulatory matters with:

• experience in project management, specifically in projects related to the power sector;
• proven experience in leading a team of experts and the ability to demonstrate adequate project management skills, managerial skills and team leading experience;
• fluency in English for coordination and report writing purposes;
• considerable experience:
  • in electricity sector liberalisation and the introduction of private-to-private arrangements in the electricity sector; and
  • in regulatory matters of the electricity sector, including balancing regimes and the integration of renewable energy in electricity markets and systems

2) Regulatory Export(s) – Expert in the economic regulation of electricity networks

3) Legal Expert(s) with:
a. experience in drafting energy sector legislation and regulations relating to electricity systems (generation licenses, template power purchase agreements, network codes); and
b. At least one of the legal experts (in case the proposal features more than one, otherwise just the single expert) should have both international and local (related to Egypt) expertise and experience, as well as be fluent in both English and Arabic;

4) Technical Expert(s) with experience on the operation of electricity networks, including the technical and administrative procedures in relation to the operation of the network.

Submission Requirements: The consultants are now invited to submit a completed Technical and Financial Proposal as per the standard templates and instructions available at this link. Interested Consultants should make themselves familiar with these Standard Templates, Standard Instructions and Conditions of Contract in preparation of their proposals.

1. The Technical Proposal shall be submitted in English electronically via eSelection not later than the Closing Date, as one single PDF file. The technical proposal should not exceed 25 pages excluding the Declaration Form and CVs (Form 1- TP 1 and Form 1 – TP 6).

2. The Financial Proposal (Form 2 – FP 1 and FP2) shall be submitted in English separately by email only to the Bank Contact Person. Consultants are reminded of the requirement to ensure the confidentiality of the Financial Proposals.
A Technical Proposal that contains elements of a financial proposal shall be declared non-responsive.
A Financial proposal submitted together with the technical proposals via e Selection shall be declared non-responsive.

Bank Contact Person:

Elena Kolodiy
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
e-mail: kolodiyo@ebrd.com

For the avoidance of doubt, technical proposals should be sent through eSelection and NOT to this email address. Financial proposals should be sent to this email address and NOT through eSelection.

Deadline to Submit Clarification Questions: Via e-mail to the Bank Contact Person not later than two weeks before the Closing Date.

Selection Method and Evaluation Criteria:
1. Technical Proposal Evaluation Criteria
(a) Firm’s previous project experience in similar assignments (30 %)
(b) Quality of the methodology proposed for the Assignment (30 %)
(c) CVs of the Key Experts (40 %).
The minimum technical score (St) required to pass is 75%.

2. Opening of Financial Proposals

After the technical evaluation is completed, only the submissions which score 75 or above of the total marks available for the technical criteria will be eligible to have their financial proposals opened.

3. Combined Technical and Financial Evaluation

The lowest evaluated Financial Proposal (Fm) is given the maximum financial score (Sf) of 100. The formula for determining the financial scores (Sf) of all other Proposals is calculated as follows:

Sf = 100 x Fm/ F, in which “Sf” is the financial score, “Fm” is the lowest evaluated Financial Proposal, and “F” the price of the Proposal under consideration.

Proposals are then ranked according to their combined technical (St) and financial (Sf) scores using the weights (T = 80; F = 20) T + F = 100 as follows: S = St x T% + Sf x F%.

Important Notes:
1. The proposal validity period is 120 days from the deadline date for the receipt of submissions. During this period, the Consultant shall maintain its original Proposal without any change, including the availability of the Experts, the proposed rates and the total price.

2. The selection will be made from the Proposals received in response to this notification only, on the basis of the submission requirements and selection criteria set out in this Procurement Notice. The highest-ranked Consultant will be selected and invited to negotiate the contract, subject to availability of funding.

3. Any updates of and clarifications on this procurement notice shall be announced as updates on this notice, without any other notification. In the event of changes consultants will need to download the updated versions. Consultants are required to periodically check the notice for updates. Failure to take the updates into account while preparing the Proposal may result in disqualification or penalties to the scores in the evaluation.

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