Engage a Firm (Consultant) to Assist the Bank Tender - 42327532

Procurement Summary

Country: United Kingdom

Summary: Engage a Firm (Consultant) to Assist the Bank at the Time of Conducting the Economic Assessment

Deadline: 15 May 2020

Posting Date: 20 Apr 2020

Other Information

Notice Type: Tender

TOT Ref.No.: 42327532

Document Ref. No.:

Competition: ICB

Financier: Other Funding Agencies

Purchaser Ownership: -

Tender Value: Refer Document

CPV Classification

71356200 - Technical assistance services

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Tender Details

Request for proposals are invited for Engage a Firm (Consultant) to Assist the Bank at the Time of Conducting the Economic Assessment
Economic Assessment of four EBRD projects.
Economic assessment of four EBRD projects - Tender A
Location:
Regional
Business sector:
Other
Project number:
82878
Funding source:
Bank Funded
Contract type:
Consultancy Services
Notice type:
Invitation for expressions of interest (CSU)
Issue date:
17 Apr 2020
Closing date:
15 May 2020 at 17:00 London
Access eSelection
Single Stage Open Competitive Selection - Request for Proposals
Project Description:
The European Bank for Reconstruction and Development (“EBRD” or the “Bank”) has recently reviewed its concept of transition and what constitutes a well-functioning market economy. The EBRD has defined 6 qualities of transition which its investments and policy dialogue should promote. These are: competitive, well-governed, green, inclusive, resilient and integrated.
To support the assessment of transition impact and action on climate change, the EBRD has decided to undertake an economic assessment of prospective projects which would entail high greenhouse gas (GHG) emissions. The economic assessment is a complement to other tools that are routinely applied by the Bank to assess its portfolio, such as sound banking principles, environmental and social due diligence, proof of additionality, etc.
The economic assessment will be guided by a methodology published by the EBRD in January 2019 titled “Methodology for the economic assessment of ERBD projects with high greenhouse gas emissions”.[1] It will, amongst other things, put an economic value to the carbon emission externality, value local pollution emissions impacts, reliability and flexibility of electricity supply, and other economic distortions as applicable in each case.
For the above purpose, the Bank seeks to engage a firm (the “Consultant”) to assist the Bank at the time of conducting the economic assessment in four investments in its Countries of Operation. The details of the four projects will be shared after contracting, but are likely to focus on energy and industrial projects.
Assignment Description:
The overall objective of the assignment is to assist the Bank in the assessment of the economic merits of four projects that entail high GHG emissions. The projects will be defined by the EBRD and the specific circumstances of the project will need to be taken into account to develop the analysis
The Consultant will conduct the economic analysis of four projects using the methodology as approved by the Bank. The analysis should take into account relevant environmental and non-environmental factors.
As per the methodology, the following factors will be taken into account in the analysis:

• Identification of the boundaries of the project (if different from the financial case).

• A brief market assessment: describe the current operating environment for the project.

• Identification of at least three plausible counterfactuals and potential project alternatives.

• Quantitative assessment of greenhouse gas, local emissions and other environmental externalities if relevant both for the project and for the alternative scenarios.

• Relevant adjustments to financial and market values, where market distortions mean prices need to be adjusted to reflect opportunity costs in the project and its counterfactuals (e.g. energy subsidies, labour market distortions, trade distortions).

• Qualitative assessment of significant factors impacting the economics of the project, where it is not possible to quantify these factors.

• Sensitivity checks around key variables, e.g. social discount rate and shadow price of carbon prices.
To inform the assessment of aligning financial flows with the Paris Agreement, the Consultant will also provide an assessment of the extent to which the projects identified is consistent with the aims of the Paris Agreement and long run decarbonisation. The consultant should propose a high level approach to undertake this assessment, which could include some or all of the following approaches (quantitatively included in the economic assessment if possible):

• Benchmark of the project against similar projects elsewhere in terms of its environmental impact (e.g. benchmark with the EU ETS)

• The extent to which the project is consistent with the long-run trajectory of emissions in that sector (e.g. assessed against any available low-carbon sector pathways, understanding the potential role of breakthrough technologies, and using insights from the Energy Transitions Commission).

• The extent to which the project leads to lock-in of GHG emissions, and technological solutions can mitigate the impact (e.g. The lock in effect compared in line with the Paris agreement and the path to implementation (rapid, slow, BAU) acknowledging that this will again depend on the extent of potential breakthrough technologies and broader decarbonisation efforts in other sectors). It should also consider the risk that the asset may be stranded.
In general, all significant economic, environmental and social should at least be identified. The Consultant should then indicate the ones that have been incorporated quantitatively into the economic assessment - and those unquantifiable externalities which may require qualitative description to contextualise the results.
The full description of scope of tasks and activities is available in the Terms of Reference, available through:

http://www.ebrd.com/documents/oce/dwdtoreconcomic-assessment-tender-a.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 May 2020 and has an estimated overall duration of 12 months.
Cost Estimate for the Assignment: EUR 120, 000 (exclusive of VAT) for the economic assessment. Subject to availability of funding, the performance of the selected Consultant and the specific needs of the Bank, the Assignment may be extended beyond the current scope.
Funding Source: It is anticipated that the contract will be financed by Bank funds. Selection and contracting are subject to the availability of funding
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:

project management and developing and performing cost-benefit and cost-effective analyses in both the public and private sector, particularly with specialisation in economic assessment of investments in sectors with significant levels of GHG emissions, preferably in EBRD-s countries of operation or similar regions.
The Consultant`s expert team is expected to include the following key experts (the `Key Experts`):
Key Expert 1, Project Manager with:

· Preferably 15 years- or more experience in project management;

· International experience in developing and performing cost-benefit and cost-effectiveness analyses for both the public and private sectors, with specialisation in economic assessment of investments in sectors with significant levels of GHG emissions;

· Leading and implementing similar projects in the region or similar to EBRD-s countries of operations; including experience with procedures of international financing agencies (preferably EBRD procedures);

· Fluent spoken and written English is essential
Key Expert 2, Financial/Economic Expert, with:

· Master-s degree or equivalent in economics, finance, engineering

· Preferably 5 years- experience in financial and economic analysis

· Experience in economic assessment of projects in EBRD countries of operation or similar regions; Relevant project experience in the project country will be considered an advantage;

· Practical and technical experience in developing and performing cost-benefit and cost-effectiveness analyses using shadow carbon prices;

· Fluent spoken and written English is essential;
Key Expert No 3 - Industrial Expert (as required), with:

· Master-s degree or equivalent in economics, finance, engineering, or banking

· Preferably 10 years- or more experience of manufacturing and industry

· Experience in economic assessment of manufacturing and industrial projects in the region or similar to EBRD-s countries of operations; Relevant project experience in the project country will be considered an advantage;

· Fluent spoken and written English is essential;
Key Expert No 4 - Energy Expert (as required), with:

· Master-s degree or equivalent in economics, finance, engineering, or banking

· Preferably 10 years- or more experience in the energy sector

· Experience in economic assessment of energy projects in EBRD countries of operations or similar regions. Relevant project experience in the project country will be considered an advantage

· Fluent spoken and written English is essential;
Submission Requirements: The consultants are now invited to submit a completed Technical and Financial Proposal as per the standard templates and instructions available at:http://www.ebrd.com/documents/procurement/single-stage-package.docx
Interested Consultants should make themselves familiar with these Standard Templates, Standard Instructions and Conditions of Contract in preparation of their proposals.
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).
The Financial Proposal (Form 2 - FP 1 and FP2) shall be submitted in English separately by email only to the following e-ma

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