PNG Green Affordable Housing PPP Tender - 35538320

Procurement Summary

Country: Papua New Guinea

Summary: PNG Green Affordable Housing PPP

Deadline: 29 Aug 2019

Posting Date: 19 Aug 2019

Other Information

Notice Type: Tender

TOT Ref.No.: 35538320

Document Ref. No.: 1264074

Competition: ICB

Financier: World Bank (WB)

Purchaser Ownership: -

Tender Value: Refer Document

CPV Classification

70333000 - Housing services

Purchaser's Detail

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Tender Details

Expression of Interest are invited for PNG Green Affordable Housing PPP.
Funding Sources
The World Bank Group intends to finance the assignment/services under:
· BB - BANK BUDGET
· TF0A5339 - DFAT PNG Partnership II - BD fund
Individual/Firm
The consultant will be a firm.
Assignment Description
Project Background
Papua New Guinea (PNG) is facing a growing challenge to develop and provide adequate affordable housing. Employment opportunities and access to services in cities are driving factors for rapid rural to urban migration and thus increasing the demand for housing in urban areas. However, the housing market has failed to respond to growing demand, which has resulted in a substantial shortfall of housing.
According to the National Capital District Commission (NCDC) over 45 percent of the roughly 365, 000 residents of Port Moresby live in informal settlements without security of tenure or access to basic infrastructure, such as water, sanitation and power. Overcrowding in these informal settlements is leading to major social issues including crime, gender-based violence and social unrest. Poor quality construction means the residents are highly exposed to the risks of destructive climatic events, which are increasingly prevalent in PNG and the rest of the Pacific.
With rural-to-urban migration and high population growth rates, informal settlements are growing much faster than the rest of the city and are expected to shelter 56 percent of the population by 2030. To keep pace, about 3, 000 affordable dwellings need to be built every year over the next ten years, a number far greater than the current level of production, estimated at less than 50 formal housing units per year.
Although PNG is one of the least urbanized countries in the world and Port Moresby has significant amounts of unused land, much of this land is currently unavailable for housing because it is either under customary tenure or owned but unutilized by various Government agencies. The shortage of land has limited the supply of formal housing and pushed housing prices far out of reach of most households.
This project aims to create a market for affordable, green and climate resilient housing through a model pilot Public Private Partnership (PPP) which unlocks government land, leverages government and private sector contributions and demonstrates a model for large-scale affordable housing development to reduce the growth of the citys informal settlements.
NCDC has identified potential sites around Port Moresby for the implementation of its green affordable housing program, and has asked IFC to assist with structuring a PPP transaction, to attract a credible private developer with construction capabilities to develop a large-scale housing development.
Project Description
IFC will provide transaction advisory support to the NCDC for the selection of a developer to design, build, finance and maintain the green and climate resilient housing units for low-income and middle-income households in PNG.
The project will be structured as a mixed income housing project comprising a mix of single unit family dwellings and affordable flats constructed in G+2 (3 level) buildings, to encourage greater density, whilst culturally appropriate, with adequate amenity, connectivity and with due regard to the environment. Profits made on single-unit dwellings marketed to mid-higher income earners will be used to cross-subsidize the price of affordable G+2 flats for low-middle income earners. The government contribution is expected to come in the form of a combination of some or all of the following: (a) land; (b) trunk infrastructure; and (c) duty/tax concessions for the Project. The aim is that this contribution, along with project structuring and strong competition, will drive prices down to affordable levels.
As part of its transaction advisory support, IFC will undertake a demand assessment, and technical and commercial evaluation. IFC will assist in structuring a commercially viable model to select a private sector player to develop the project. IFC will undertake an affordability analysis and examine whether any enhancements are needed to available housing finance products to increase access to finance to low-income and middle-income households.
Consultant Profile
To support IFC with the engagement to advise the Government on this project, IFC is looking to engage a reputable technical consultancy firm (the Consultant) to provide technical advice and assistance for the implementation of this project. The Consultant should have the following expertise and competencies:
(i) In-depth knowledge of different construction technologies for affordable housing projects, in particular those which are relevant to a developing country market such as PNG.
(ii) Understanding of the requirements of the regulatory environment to support development of affordable housing.
(iii) Understanding of housing finance instruments designed for targeted beneficiaries.
(iv) Experience with advising on housing or real estate infrastructure projects developed under a PPP model. This would include but is not limited to: project site assessment for PPP suitability, demand and affordability assessment, design and preliminary project costing, transaction structuring, environmental and social assessment aspects (including gender), suggesting changes to public policy which would enhance the outcomes of the PPP, and assistance with providing input and preparation of technical matters for the contractual documents.
(v) Experience working on green and sustainable building projects will be preferred together with an understanding the structural design and building standards that comply with green building certifications such as EDGE.
(vi) Environmental and social expertise, related to IFC performance standards, and World Bank Group EHS and other relevant standards.
Qualification Criteria
· 1. Provide information showing that they are qualified in the field of the assignment. *
· 2. Provide information on the technical and managerial capabilities of the firm. *
· 3. Provide information on their core business and years in business. *
· 4. Provide information on the qualifications of key staff. *
* - Mandatory
Shortlisted consultants will be invited to respond to a Request for Proposal. Contract awards will be made in accordance with the World Bank Group Procurement Policies and Procedures.

Documents

 Tender Notice