Improve Access to LPG Tender, DR Congo - 52931877

Procurement Summary

Country : DR Congo

Summary : Improve Access to LPG

Deadline : 17 May 2021

Other Information

Notice Type : Tender

TOT Ref.No.: 52931877

Document Ref. No. : 1274600

Financier : World Bank (WB)

Purchaser Ownership : -

Tender Value : Refer Document

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Tender Details

Expression of Interest are invited for Improve Access to LPG in Democratic Republic of Congo

The main objective of the anticipated project is to improve access to cleaner cooking energy, which will, in turn,
reduce the negative health and environmental impacts that result from widespread use of solid fuels for cooking
in DRC. This will be done by building out LPG distribution capacity with the aim of increasing LPG penetration
in the Kinshasa region of the country. For the purpose of this Terms of Reference, the provinces covering
Kinshasa, Kongo-Central, Kwango, Kwilu, and Mai-Ndombe, shall be described as “Kinshasa and environs”.

The study will focus on delivering a Market and Project Level Assessment Study to evaluate the broader country and macro environment, and the specific project level success drivers and constraints with the aim of improving the penetration of LPG in DRC.

I. Market Level Assessment: This will assess the DRC LPG market at a broader country and macro level and will deepen IFCs and BB Energys understanding of the key drivers that affect the penetration of LPG, and by extension, clean cooking. The study will focus on the following: 1) The market outlook will explore growth drivers, consumption trends, impact of demographics, stakeholder mapping, and success cases; 2) The regulatory environment and government intervention review will evaluate the current and proposed regulatory framework for LPG and competing fuels, regulatory barriers to LPG growth, effectiveness of recent interventions in the sector, and role of subsidies; 3) Supply assessment will analyse infrastructure constraints, value chain bottlenecks, and LPG cylinder ownership models; 4) Demand assessment will examine the key demand drivers, potential impact of competing energy sources, switching costs, affordability, cylinder sizing, and payment models; 5) Economics and pricing will map out margin build up and price across the value chain and price benchmarks of competing energy sources.

II. Project Level Assessment: This will evaluate various aspects of the proposed BB Energy LPG distribution project, and will focus on the following: 1) The location will be evaluated, including infrastructure favourability, transportation connectedness, and other key location choice drivers; 2) Equipment and assets analysis will lay out indicative equipment specifications and technology options, and determine asset needs for the project; 3) Customer and distribution assessment will define the target customer segments, and analyse how to address those markets; 4) Construction and procurement evaluation will address the main considerations for terminal construction; 5) Project economic analysis will examine the optimal LPG pricing to increase penetration, lay out the indicative capital expenditure to develop the project, and evaluate historical profitability; 6) Rollout strategy plan will detail the sequencing of project activities and the critical success factors for the implementation of the base case configuration; 7) Main project risks assessment will outline the key political, market, credit, currency, security, operational and personnel risks.

Firms or consortia must demonstrate the following:
i) A minimum of 10 years of relevant work experience in the oil and gas or LPG sector, including new market entry strategy
ii) Demonstrated experience in carrying out high quality analytical work, including qualitative and quantitative analysis of data relating to energy access sector in emerging markets
iii) Demonstrated extensive experience of the Sub Saharan Africa context and environment, including in data collection and conducting market analysis. DRC experience would be advantageous.
iv) A deep understanding of LPG and solid fuels regulatory environments and their impacts on financial and operational risks
v) Detailed knowledge of LPG projects under development, their costs, performances, and current private sector landscape within Sub-Saharan Africa
vi) Relevant experience in international organizations and/or in the private sector.
vii) Good written and verbal communication skills in both English and French
viii) Ability to manage multiple priorities and demands
ix) Strong work ethics and appreciation of working in a diverse environment

Additionally, the firm is expected to mobilize the following key staff to carry out the assignment as necessary:
i) A Team Leader with 15 years experience in the oil and gas or LPG sector with significant previous engagements in Sub Saharan Africa
ii) Expert in Project Development with oil and gas or LPG experience in Sub-Saharan Africa
iii) E&S Specialist with at least 10 years experience in conducting similar studies and in assessing Environmental risks, in line with IFC Performance Standards, WBG Environment Health and Safety guidelines, capturing also the ecological and biodiversity components, and land legacy and resettlement issues

Documents

 Tender Notice