The Federal Government of Nigeria (FGN) has applied for a credit from the International Development Association (IDA) and intends to apply part of the proceeds of this Credit to payments for proposed consulting services to prepare the Outline Business Case (OBC) for extension and densification of the water distribution system for Abuja water supply (the Kuje Water Supply PPP project), in line with FGN’s National Policy on Public Private Partnerships (PPP).
The Federal Capital Territory Water Board (FCT WB), in collaboration with the Infrastructure Concession Regulatory Commission (ICRC), would like to assess the strategic fit, achievability, value for money and affordability for the procurement of concessionaires to finance, construct, operate and maintain this new infrastructure. Consultants recruited for the OBC stage work will be eligible to bid for any prospective downstream Transaction Advisory work, in accordance with IDA procurement guidelines.
Procurement of the OBC consultants will follow both the National Policy on PPP, published by the ICRC, and the World Bank’s Guidelines. This Policy requires, as part of the project preparation stage, that an Outline Business Case be prepared and submitted to the Government’s Economic Management Team.
The proposed consultant’s assignment will cover 4 specific sub-areas of the Abuja water supply service area with an estimated population of 1,000,000 people. Subsequent investments in these sub-areas are estimated at about US$20 million.
Scope of Work
The main objective of this consultancy is to establish the technical, economic, and financial viability of the identified project(s) as PPP projects, through the generation of an Outline Business Case. The OBC will represent a key input of the PPP project preparation phase.
Among the tasks involved in the generation of the Outline Business Case are:
Definition of project concept ;
Technical scope ;
Review the Design reports ;
Review / Design the water supply scheme;
Review / Design the trunk line;
Prepare cost estimation for the project;
Preliminary assessment of social and environmental impacts of the project;
Project water sales and revenue forecasting;
Development of a preliminary financial model to carry out the initial PPP screening to determine which projects can support a tariff and which cannot, and ultimately suitability for PPP execution;
Costs and optimal value-for-money methods of delivery, and include, at a minimum;
Cost of Year Expenditure
–Annual routine maintenance (where relevant)
–Periodic major maintenance by annual drawdown amount;
–Security and Safety
–Other ancillary operating costs
Tariff Revenue income based on proposed tariff structure (or tariff structure options)
Other sources of funds;
The economic and financial conclusions drawn from the financial model;
PPP Options analysis;
SUBMISSION OF EXPRESSION OF INTEREST (EOI)
The Federal Capital Territory Water Board (FCT WB) and ICRC now invites eligible Corporate Firms and Joint Ventures to indicate their interest in providing the above-mentioned services. The skills and experience required of the Consultants should include inter alia, experience with respect to:
Potable water supply project preparation and planning, including for projects similar in size and scope to the Kuje Water Project;
PPP project preparation and structuring using international best practices, including advisory on a minimum of four OBC/PPP projects over the past five years;
Utility tariffs, preferably in the water sector, including assignments in price forecasting and modelling in Sub-Saharan Africa in the last three years;
Financial and economic analysis, including substantial project finance modelling experience; and
Experience with projects in the water sector in emerging markets
Familiarity with relevant national water policies, and regulations and laws for PPP and in particular those of the Infrastructure Concession Regulatory Commission (ICRC).
Profile of firm/consortium including ownership structure key permanent staff and role of each corporate entity with full contact details of lead firm.
Copies of unabridged financial reports for the last 3yrs
The Consultant will be selected in accordance with the procedures set out in the World Bank´s Guidelines: Selection and Employment of Consultants by World Bank Borrowers, January 1997 (Revised September 1997, January 1999, May 2002, May 2004, October 2006 and May 2010).
Expressions of Interest shall be in English including the unabridged financial report and must be submitted in six (6) copies in a sealed envelope clearly marked “EXPRESSIONS OF INTEREST FOR OBC CONSULTANT FOR KUJE WATER SUPPLY PPP PROJECT”. A CD-ROM version should also be included
Interested applicants may obtain further information at the address above from 8.00 am to 4.00 pm, Monday through Friday (except public holidays).
Only short-listed Consultants will be contacted.
Expression of interest through email or fax will not be entertained.
The expressions of interests should be addressed and delivered not later than 4.00pm on March 2, 2011 to the address below: