Aktau Waste Management Project - Corporate Development Programme
Procurement ref: 38050
Sector: Municipal and environmental infrastructure
Project number: 44614
Funding sources: EBRD Shareholder Special Fund
Contract type: Consultancy Services
Notice type: Invitation for expressions of interest (CSU)
Issue date: 29 Nov 2012
Closing date: 7 Jan 2013
The European Bank for Reconstruction and Development (EBRD or the Bank) has developed a project together with the Akimat of Mangystau Oblast (the Oblast), the City of Aktau (the City or Aktau), and the State Communal Enterprise Koktem (the Company or Koktem) to improve the City’s solid waste management system which has suffered from many years of under investment (the Project).
The City (population about 178,000) is the country’s only seaport on the Caspian Sea and one of the fastest growing cities in Kazakhstan, being the centre of the oil and gas industry. The Oblast (population about 544,000) contributes about 6 per cent of Kazakhstan’s GDP and benefits from its endowment with oil reserves and growing processing industries (textiles, food, rubber and plastics, equipment and chemicals).
Koktem is a state-owned communal enterprise, owned by the Oblast. It was established in 2000 for the purpose of carrying out utility services in the housing sector in the City. From 2005 until 2012, the enterprise has been involved in the solid waste management through the cleaning of City streets, solid waste collection and transportation and landfill operations. By the end of 2011, the Company was providing waste collection and transportation services to about 84 per cent of the City residents and the majority of commercial and budgetary institutions located in the City and its vicinities. The remaining 16 per cent has been almost equally split between five small private waste collection companies, primarily focusing on households located in private residential areas plus several commercial entities on the basis of bilateral service contracts.
At the beginning of 2012, solid waste collection and transportation services in Aktau were separated from the landfill management with the aim to establish a competitive environment for the waste collection and transportation services in the City. As a result, only landfill operation and management became Koktem’s sole responsibility. Around 100,000 tonnes of solid waste are generated in Aktau per year.
The Company now wishes to engage a consultant (the Consultant) to develop and implement a Corporate Development Programme (CDP) (the Assignment).
The Priority Investment Program (PIP) will focus on the following four major components: (i) Construction of a modern integrated mechanical-biological treatment (MBT) facility (EUR 24.8 million equivalent) and supply of specialized equipment and machinery (3 weigh bridges; 3 wheel loaders; 3 container trucks, capacity 30m³; 14 containers for raw materials, capacity 10m³). The contract type for this component will be based on “design, build, supply and installation” principle; (ii) Construction of an adjacent 7.9 ha sanitary landfill (EUR 6.6 million equivalent) close to MBT; (iii) Supply of specialized machinery and equipment for the sanitary landfill (EUR 0.8 million equivalent) - 1 compactor, 1 excavator, 1 articulated truck/dumper, 1 tractor with equipment; and (iv) Closure of the existing dumpsite (EUR 0.4 million equivalent).
It is estimated that the construction of a modern integrated waste management facility will result in better environmental standards due to reduced landfilling (volume of waste sent for final disposal will be reduced by 50-55 per cent, which is in line with the national Environmental Code and the European Union (EU) waste management framework directive), lower CO2 and methane emissions (landfill gas emission will be reduced by 90-95 per cent) and increased re-use and recovery of valuable fractions from waste, following the introduction of a waste sorting facility. Furthermore, one of the essential benefits will be the generation of green electricity from biogas.
To achieve this objective, the Oblast authorities are making essential progress in transforming Koktem into a modern and efficiently managed company. The Company has already been undergoing significant reorganisation to streamline its operations and improve its institutional capacity. Koktem will remain in charge of the sanitary landfill operations as well as the MBT installation. The objective is to move from a currently subsidized system of the landfill management to full cost recovery, which will be strengthened through the revenue stream generated from the new MBT facility, including the sale of recyclables and green electricity, and the introduction of enforceable bilateral agreements between Koktem and all waste collectors and transporters, that will pay Koktem an appropriate gate fee for waste disposal.
Throughout the implementation of the project, Koktem will receive corporate development support, aimed at commercialising its operations and enhancing its financial and operational sustainability. The CDP will focus on areas such as institutional restructuring, strategic development and business planning, technical and operational management, gate fee setting and financial management. The Company will receive additional concessional financing from CTF, which will reduce the overall costs of the project and help the Company achieve its operational targets.
The Consultant shall assist the Company to improve its commercial standing, service and environmental and social performance by helping to identify and implement the necessary corporate, financial and operational improvements required to meet the related covenants included in the EBRD finance documents. This will be achieved via the following major institutional development actions: (i) Development and introduction of a Public Service Contract (PSC) between the City and Koktem; (ii) Development and introduction of the PSCs between the City and waste collection and transportation companies; (iii) Development and implementation of a Financial and Operational Performance Improvement Programme (FOPIP); (iv) Development and adoption of a Corporate Business Plan; (v) Development and introduction of a Management Information System; (vi) Development and adoption of a gate fee calculation methodology. The Consultant shall also assist the Company to develop a medium-term focused corporate development plan and to improve its corporate planning capacity to assist its ongoing transition towards a self-sustaining entity and commercial operations; and (vii) Transformation of the Company’s financial reporting system to International Financial Reporting Standards (IFRS).
The Consultant will also co-operate with the Akimats of the Oblast and the City to implement the covenants stipulated under the signed Project Support Agreement. Additionally, the Consultant shall assist the Company in the analysis of the baseline social situation of the vulnerable section of the population and the impact of the project on these groups, and in connection to this assess any impact of the project on the equality between men and women.
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 March 2013 and to have an estimated overall duration of 36 months.
Cost Estimate for the Assignment: EUR 295,000 (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: It is anticipated that the contract will be financed through the EBRD Shareholders Special Fund. Selection and contracting is 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 extensive international project experience in the solid waste sector and in implementing the key areas of this assignment.
It is expected that the Consultant’s team of key experts will at least consist of: (i) Team Leader/Solid Waste Management Operations Expert; (ii) Solid Waste Management Institutional and Regulatory Expert; (iii) Financial Expert; (iv) Economist; (v) Environmental and Social/Labour Experts; and (vi) Legal Expert. Some individuals may fulfil more than one role.
Submission Requirements: In order to determine the capability and experience of Consultants seeking to be selected, the information submitted should include the following:
(a) 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 Contact Sheet, the template for which is available from the following web-link:
The expression of interest shall not exceed 25 pages (excluding CVs and contact sheet).
One original and 2 copies of the expression of interest, in English and Russian, shall be submitted to the Client in an envelope marked EXPRESSION OF INTEREST for Aktau Waste Management Project - Project Implementation Support, Engineering Design and Contract Supervision, to reach the Client not later than 17:00 (Kazakh time) on the closing date for submissions. The EOIs should also be submitted by email to the Client and to the EBRD’s contact person by the same due date.
1. Following this invitation for expressions of interest, a shortlist of qualified firms will be formally invited to submit proposals. Consultant selection and contracting will be subject to availability of funding.
Executing Agency (Client):
State Communal Enterprise KOKTEM
27 mcr. District, City of Aktau, 130000
The Client Contact Person:
Mr Muhit Zhunbasov, Director
State Communal Enterprise KOKTEM
27 mcr. District, City of Aktau, 130000
Phone: + 7 3292 413 011
Fax: +7 3292 412 866
The EBRD Contact Person:
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 7750
Fax: +44 20 7338 7451
The above is a complete copy of the Original Procurement Notice.