UNDP Jobs - 57582- International Consultant on Establishment of the B

International Consultant on Establishment of the Biomass Financial Support Mechanism

Location :

Home-based

Type of Contract :

Individual Contract

Starting Date :

03-Aug-2015

Application Deadline :

15-Jul-15 (Midnight New York, USA)

Post Level :

International Consultant

Duration of Initial Contract :

3 August 2015 – 29 February 2016

Languages Required :

English

Expected Duration of Assignment :

45 working days

UNDP is committed to achieving workforce diversity in terms of gender, nationality and culture. Individuals from minority groups, indigenous groups and persons with disabilities are equally encouraged to apply. All applications will be treated with the strictest confidence. UNDP does not tolerate sexual exploitation and abuse, any kind of harassment, including sexual harassment, and discrimination. All selected candidates will, therefore, undergo rigorous reference and background checks.

Background

The aim of the UNDP GEF Development and Commercialization of Bioenergy Technologies in the Municipal Sector in Ukraine project is to reduce GHG emissions by creating a favorable legal, regulatory and market environment and building institutional, administrative and technical capacities to promote the utilization of the country’s extensive agricultural biomass potential for municipal heat and hot water services.

The objective of this project, which started in November 2014 is to accelerate sustainable agricultural biomass utilization for municipal heat and hot water services in Ukraine by leveraging over $ 22 million in private sector investment over its four-year implementation period. This, in turn, is expected to generate direct global benefits of 63,577 tons of CO2 over the same period and 19,143 tons CO2/yr thereafter in avoided greenhouse gas (GHG) emissions. When one looks at the 20 year lifetime of the boilers earmarked for development during the project period, these boilers will have generated 1,618,834 MWhTH, with a combined amount of CO2 reduced of 361,000 tons, equivalent to $13 of GEF funds per tCO2. The project aims to achieve this target by introducing a conducive regulatory framework and by establishing a financial support mechanism that together will facilitate private sector participation in utilizing agricultural biomass to supply municipal heat and hot water services and assist the Government in closing private sector funded investments in municipal biomass. It is envisaged that this project will enable Ukraine to substantially move closer to its target of having some 7% of the country’s annual primary energy requirements for heating and hot water services supplied by biomass by 2030, as outlined in the “Energy Strategy of Ukraine to 2030”.

The use of biomass as an energy source can have numerous benefits personally, locally, nationally and globally. However, its productive use remains very limited in Ukraine where biomass represents only 0.5% of the total primary energy supply. The aim here is to assist the Government of Ukraine in addressing the various barriers with a view to having some 7% of the country’s annual primary energy supply for heating and hot water services supplied by agricultural biomass by 2030, and with a view to reducing gas imports.

The dynamics of heat and hot water tariffs and fuel prices in Ukraine suggests that utilization of agricultural biomass for municipal heat and hot water services is a financially viable proposition making sense to switch from mostly imported natural gas to agricultural biomass. For this to happen, a conducive environment for the private sector investors to enter this market should be created and barriers need to be overcome.

To address the existing barriers the project, inter alia, envisages establishment and strengthening of a Financial Support Mechanism under component 3 that would enable financial incentivization of investment in agricultural biomass projects, as such projects are typically more expensive than those involving the traditional methods of energy generation, and they are in some cases also considered to be riskier investments due to technology or resource uncertainties. Originally, the project document envisaged a financial support mechanism (FSM) being established within DerzhZem bank. However, Government reforms in 2014 in Ukraine mean that this is no longer possible and that a new partner needs to be chosen by UNDP to establish and implement the financial support mechanism.

The details of the original financial support mechanism can be found in the UNDP project document (attached) and given the current situation adaptive management now needs to be taken on the project in order to re-design the financial support mechanism with a new partner.

The operating procedures of UNDP means that UNDP cannot directly manage a financial support mechanism. However, UNDP can partner with a financial institution to jointly manage and implement such a mechanism. Therefore, UNDP now seeks to identify a new partner for the financial support mechanism component of the project. This work will involve reviewing international best practice on financial support mechanisms for renewable energy, including in Ukraine, identifying and selecting a partner to develop and launch the FSM, and preparing relevant documents such as a draft MoU between UNDP and the FSM partner and a draft tender/ToR for launching the first joint tender under the FSM in early 2016.

Objective of the assignment

The objective of the assignment is to support component 3 of the project by taking a lead role to identify a partner or partner(s) to design and then launch and implement a sustainable financing mechanism (SFM) which can be launched either by a Ukrainian bank or banks or by an international financial institution (IFI) or international financial institutions (IFIs) in Ukraine with the goal of launching this mechanism and having it operational by the end of 2015 or in early 2016.

The scope of the assignment includes the following tasks:

Analysis of the various options for the various financial support mechanisms for biomass projects implemented in various countries, including (Report 1 – Part A);
Preferred option will have been selected for the financial support mechanism and the way that the mechanism will work will be described in detail (Report 1 – Part B);
Based upon this one option a partner will be selected for the Financial Support Mechanism (FSM) and a short report will be prepared justifying the selection of this partner and as part of this selection operational rules and guidelines will be developed that are acceptable to both UNDP and the selected partner (Report 2);
A draft Memorandum of Understanding (MoU) will have been prepared between UNDP and the selected partner for the financial support mechanism and draft ToR for launching the first tender under the financial support mechanism (FSM) (Report 3 and Report 4).

Duties and Responsibilities

The project Component 3 is achieved through a series of activities aimed at developing the Biomass Financial Support Mechanism and making available agricultural biomass projects development (incl. feasibility study) and financing through the selected financial institution(s) (bank).

The International Consultant under this assignment will be required to deal with setting up a biomass Financial Support Mechanism. The following tasks and activities are envisaged under the assignment:

Preparation of Detailed Workplan for the assignment. Estimated Number of Man Days: 1. Comments: Within 1 week of the start of the assignment;
Analysis of various financial support schemes for biomass energy in various countries, including in Ukraine (Report 1 – Part A). Estimated Number of Man Days: 15. Comments: Within 6 weeks of the start of the assignment (includes at least one five day mission in Kyiv);
Preparation and recommendations for the preferred option for the operation of the financial support mechanism (Report 1 – Part B). Estimated Number of Man Days: 5. Comments: Within 12 weeks of the start of the assignment;
Detailed discussions with commercial banks and IFIs, and other possible partners, on a possible partnership to implement the financial support mechanism. Estimated Number of Man Days: 5. Comments: Within 4 months of the start of the assignment (includes at least one 5 day mission in Kiev);
Selection of the Partner to run the financial support mechanism and draft of operational rules and guidelines for the FSM (Report 2). Estimated Number of Man Days: 6. Comments: Within 5 months of the start of the assignment;
Draft Memorandum of Understanding between UNDP and the selected partner (Report 3). Estimated Number of Man Days: 7. Comments: Before the end of the assignment (includes at least one five day mission in Kiev);
Draft ToR for launching the first tender under the financial support mechanism (FSM) (Report 4). Estimated Number of Man Days: 6. Comments: Before the end of the assignment.

Total Number of Days: 45.

Task 1 - Detailed Workplan (preparatory):

The detailed workplan will highlight the tasks that the international consultant aims to complete and the planned due dates for each deliverable through the end of each assignment.

Task 2 - Analysis of the effectiveness of other FSMs to support renewable energy in Ukraine and in other countries (preparatory, organizational, report writing):

Ukraine:

Collect, review and analyse available project information, project document, as well as existing loan mechanisms within Ukrainian banks, and IFI existing practices in financing biomass/renewables/EE projects in Ukraine with the goal of assessing their effectiveness and their sustainability. The analysis should examine the results of these lending programmes including an in depth analysis of what worked and what did not work including providing details of the various loan programmes available in Ukraine to finance biomass energy, their terms and conditions, and their track record of success, default etc.

International:

Analysis of lessons learned and international best practices related to financial support mechanisms in other countries around the world with the main aim of highlighting lessons learned and international best practices;
Provide an overview of the most common financial support mechanisms that have been or are available for agricultural biomass energy technologies around the world and examples (primarily from Europe) are used in order to highlight how such schemes work in practice.

Practical:

Provide analysis of the available international sources for loan financing that can be potentially utilized for the development and implementation of municipal biomass projects within the project framework focusing on existing mechanisms that area already in place that could be enhanced to support bioenergy for municipal heat supply projects;
Types of financial support mechanisms to be analysed include, inter alia, soft loans, revolving funds, investment funds, loan guarantees, performance grants as well as other possible;
Task 2 will involve meetings in Kiev with relevant IFIs and commercial banks to discuss their experience with supporting biomass projects in Ukraine.

Task 3 - Detailed Description of Financial Support Mechanism (substantive and advisory support, report writing):

Propose and provide detailed description of the Biomass Financial Support Mechanism to be established in Ukraine to finance investments in municipal biomass during the project lifetime and beyond which includes a justification of the preferred option and why this is the preferred option for a financial support mechanism. The justification will explain why the selected option has the greatest chance to demonstrate a replicable model that catalyzes additional investment in bioenergy in Ukraine.

Task 4 - Consultations with Key Stakeholders (consultations and stakeholder inputs):

Hold consultations (one full working week – 5 business days) with the key project stakeholders (UNDP CO, Ministry of Agrarian Policy and Food of Ukraine and commercial banks and IFIs (World Bank, EBRD, NEFCO, EIB etc …) regarding their interest in jointly establishing the proposed Biomass Financial Support Mechanism and working with UNDP in this regard to jointly manage and run the mechanism;
The consultations will seek endorsement by the Ministry of Agrarian Policy of the proposed approach.

Task 5 - Support for establishing of the Biomass Financial Support Mechanism (substantive and advisory support, report writing):

Draft the Biomass Financial Support Mechanism Regulation and Operational Guidelines, upon consultations and endorsement by relevant stakeholders (UNDP CO, Ministry of Agrarian Policy and Food of Ukraine, selected Financial Institution(s)/Bank(s) and other relevant players) – to be added to the project document as a revised Annex;
Provide guidance and inputs to the Information Booklet and to the Biomass Guide about the Biomass Financial Support Mechanism to be further presented in a workshop to announce the establishment of the Biomass Financial Support Mechanism, explain procedures and conditions;
Provide methodological support and guidance in setting up Management and Accountability Arrangements for the Biomass Financial Support Mechanism;
Incorporate all of the above tasks in Report 1 – Part B on Recommendations for the preferred option for the operation of the financial support mechanism including operational modalities.

Task 6 - Development of Draft MoU between UNDP and selected Partner for FSM (substantive, report writing):

Provide guidance and templates to the financial institution/bank and the PMU in regard to the working agreements aimed to operationalize the Biomass Financial Support Mechanism and utilize the investment grant allocated within the project either to co-finance feasibility studies/business plans to be financed only for project which support the FSM;
Develop a draft Memorandum of Understanding between UNDP and the selected partner (Report 3) to run and implement the FSM. The draft should form a basis to be reviewed and finalized by UNDP legal experts and by legal experts of the selected partner for the FSM. The goal will be to have the MoU agreed and signed by the end of 2015;
Revise and update the Report 1 – Part B on the operational modalities of the FSM, as required, following detailed discussions with the FSM partner;
Revise and finalize Report 3 following comments and inputs from UNDP and FSM partner.

Task 7 - Development of detailed ToR for first joint tender under the FSM (substantive, report writing):

This task will involve developing the draft detailed ToR (Report 4) for the first tender to be launched by UNDP and the FSM partner calling for bioenergy project proposals to be financed by the FSM. The detailed ToR should be prepared closely in partnership with the FSM and with UNDP CO and UNDP PMU. The joint tender ToR should be cleared by both UNDP and the FSM partner;
Revised and finalize the ToR following inputs from both UNDP and the FSM partner.

Important note:

The scope limitation should not be a reason for non-performance under the assignment, or failure to support the establishment of the Biomass Financial Support Mechanism within the project framework. The scope of the assignment shall not in any way restrict the methodology / procedures / tasks or data the Consultant may wish to apply / use / perform or describe to produce the deliverables due under this assignment.

Deliverables

All deliverables should be fully completed within 7 months of the start of the assignment as follows:

Task 1 and Task 2 (35% of the total payment amount): within 3 months of start of assignment;
Task 3, Task 4 and Task 5 (35% of the total payment amount): within 5 months of start of assignment;
Task 6 and Task 7 (30% of the total payment amount): within 7 months of start of assignment.

Schedule of the assignment

The International Consultant on establishment of the Biomass Financial Support Mechanism will be selected and appointed in accordance with the provision of the UNDP Individual contract modality.

The effort estimate is 45 working days during 7 calendar months (August 2015 – February 2016), including at least 15 working days in Ukraine.

The International Consultant shall report directly to the Project Manager in regard to activities and tasks to be carried out and for the contract management and payment.

The contract will be based on a total lump sum. The payment for services provided by the International Consultant will be made according to deliverables completed, and approved by the UNDP. The international consultant will also be responsible for including all related travel costs for 3 missions to Ukraine. All envisaged travel costs must be included in the financial proposal. This includes all travel to Kyiv from wherever the consultant is based. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the IC wish to travel on a higher class he/she should do so using their own resources. In the case of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and Individual Consultant, prior to travel and will be reimbursed.

Administrative arrangements

The contractor will have to arrange his/her workplace, logistics, equipment and local travel required for the task.

Competencies

Demonstrates integrity by modeling the UN’s values and ethical standards;
Promotes the vision, mission, and strategic goals of UNDP;
Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
Treats all people fairly without favoritism;
Fulfills all obligations to gender sensitivity and zero tolerance for sexual harassment.

Required Skills and Experience

Education:

Advanced University degree in the fields of Economics, Finances, Banking and/or Engineering or relevant related fields.

Experience:

At least 10 years of relevant working experience in the field of renewable energy (including experience with biomass);
At least 7 years of experience working in the banking/financial sector globally in any country (including Ukraine or other country) of which some of this experience relates to project financing related to the energy sector and renewable energy in particular;
Proven experience in the development of renewable project support schemes/mechanisms, including regulations, procedures and management arrangements; advisory support to biomass project development and financing would be an asset;
Excellent analytical, leadership, negotiation and writing skills.

Language:

Excellent English writing and communication skills, knowledge of Russian/Ukrainian is an asset;
Fluency in Russian or Ukrainian.

Preferred requirements:

Experience working in Ukraine in the sphere of renewable energy;
Experience working in Ukraine in the sphere of biomass energy;
Experience working in the banking sector in Ukraine.

Documents to be included in when submitting the proposals

Interested individual consultants must submit the following documents/information in English language to demonstrate their qualifications:

Required:

Cover letter with the short description of proposed approach/methodology. In the cover letter please explain why you are applying for the assignment, why you think you have the relevant skills and experience and please describe the proposed approach/methodology you would use if selected. Please also indicate when you could start if selected and please try to keep the cover letter to no more than 2 pages;
Personal CV, including information about past experience in similar projects / assignments and contact details for referees. In your personal CV please include your relevant work experience and educational background and include the length of time related to various positions you held or assignments you have undertaken. Please include at least 3 references on your CV;
Financial proposal. The financial proposal shall specify a total lump sum amount in United States dollars and payment terms around specific and measurable deliverables as provided in this Terms of Reference. Payments will be in three installments and based upon output, i.e. upon delivery of the services specified in the TOR and upon these services being accepted by UNDP. In order to assist the requesting unit in the comparison of financial proposals, the financial proposal will include a breakdown of this lump sum amount (including travel, per diems, and number of anticipated working days). All envisaged travel costs must be included in the financial proposal. This includes all travel to join duty station/repatriation travel. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the IC wish to travel on a higher class he/she should do so using their own resources. In the case of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and Individual Consultant, prior to travel and will be reimbursed;
Duly accomplished Letter of Confirmation of Interest and Submission of Financial Proposal using the template provided by UNDP.

Evaluation criteria:

Educational background (Advanced University degree in Economics, Finances, Banking and/or Engineering or relevant related fields ) – 10 points max (Master’s degree – 5 points; PhD – 10 points);
At least 10 years of relevant working experience in the field of renewable energy (including experience with biomass) – 20 points max (more than 15 years – 20 points; 12-14 – 15 points; 10-11 – 10 points);
At least 7 years’ experience working in the banking/financial sector globally in any country (including Ukraine or other country) of which some of this experience relates to project financing related to the energy sector and renewable energy in particular – 10 points max (more points if the experience is biomass related. More than 15 years – 8 points, 10-15 years – 6 points, 7-9 years – 4 points, +2 points if the experience is specifically biomass related);
Proven experience in the development of renewable project support schemes/mechanisms, including regulations, procedures and management arrangements; advisory support to biomass project development and financing would be an asset - 10 points max;
Excellent analytical, leadership, negotiation and writing skills (including assessment of the cover letter and proposed approach/methodology as outlined in the cover letter) – 10 points max (10 points for excellent cover letter, 8 points for good cover letter, 6 points for average written cover letter, and 4 points for poorly written cover letter);
Language skills (English + Russian + Ukrainian) – 10 points max (4 points for speaking all three languages, 3 for speaking 2/3 languages, and 2 points for speaking English only with +6 points automatically for those applicants who write strongly in English).

Maximum available technical score – 70 points.

Evaluation method

Cumulative analysis

The contract award shall be made to the incumbent whose offer has been evaluated and determined as:

Responsive/compliant/acceptable; and
Having received the cumulative highest score (up to a maximum of 100 points) out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.

Technical Criteria weight: 70%

Financial Criteria weight: 30%

Only candidates obtaining a minimum 70% from the maximum available technical score (49/70 points) will be considered for the Financial Evaluation. The maximum score following both the technical evaluation and the financial evaluation is 70+30 points = 100 points.

The maximum number of points assigned to the financial proposal is allocated to the lowest price proposal and will equal to 30 for the lowest technically qualified proposals.

All other price proposals will be evaluated and assigned points, as per the formula below:

30 points [max points available for financial part] x [lowest of all evaluated offered prices among responsive offers] / [evaluated price].

The proposal obtaining the overall cumulatively highest score after adding the score of the technical proposal and the financial proposal will be considered as the most compliant offer and will be awarded a contract following a validation interview and reference checks, as required.

UNDP reserves the right to conduct interviews with more than one candidate, as required.