Background

The electricity sector of Kurdistan Region of Iraq (KRI) is currently under the jurisdiction of the Kurdistan Regional Government - Ministry of Electricity (KRG MoE). The Ministry operates as a vertically integrated (generation, transmission and distribution) electric utility with four distribution directorates in Erbil, Dohuk, Sulaymaniyah and Garmian. The MoE currently directly owns all transmission and distribution facilities, all the hydroelectric power plants and a few older and very small thermal generation peaking plants. Over the last decade, the KRI has successfully expanded power generation capacity through Independent Power Producers (IPP).

The electricity sector of KRI has suffered from decades of conflict and sanctions that have left its institutions weakened and have resulted in under-investment and chronic deterioration in infrastructure. Due to this, the power sector in KRI suffers from losses and leakages. Although accurate measurements are not available, MoE estimates that the level of energy losses in the KRI power sector is exceptionally high. Large portion of this losses is considered to be non-technical losses which mainly due to electricity theft and this has great impact on MoE revenue.  Additionally, another issue is the defaulters of electricity payments since there is no electricity law that can back KRG MoE to take legal action against those consumers. Currently KRG MoE is using Iraqi Federal Law of Collecting Governmental Debt issued in 1977 as a legal base for collecting electricity payment from consumers and in the mentioned law there is no provision to deal with electricity theft and persistent defaulters of the utility.

Recently KRG MoE has launched revenue protection program to reduce the non-technical energy losses in the distribution system through the introduction of smart metering system. World Bank has also recommended to KRG MoE to implement legal and administrative measures to mitigate electricity theft and electricity payment defaulters since Legal and administrative aspects are of prime importance therefore should be addressed prior to launching a revenue protection program[1].  Considering this KRG MOE is planning to develop an enabling legal, policy and regulatory framework for electricity sector to mitigate electricity theft and enforce collection of electricity charges to complement the implementation of the revenue protection program.  The framework will be based on clear roles and mandates with regard to policy, restructuring, licensing, public private partnerships and full privatization, generation (including renewable energy), distribution, market operations, electricity trading, end user tariffs, anti-theft measures and enforcement penalties, feed-in tariffs and energy efficiency. Additionally, this activity is in line with the first pillar of Electricity Strategy of KRG Economic Reform Roadmap “Develop an enabling legal, policy and regulatory framework for Electricity Sector of KRI”.

UNDP has been a partner to KRG-MOE since 2008 and has provided technical assistance to improve the electricity sector of KRI.  At this time, UNDP seeks to assist KRG-MOE in developing a legal and enforcement framework that can complement MoE’s revenue protection program.

The objective of this assignment is to support KRG MOE with: 

• Development of legal, regulatory, and institutional framework for modernization of the electricity sector; and the
• Formulation of an electricity anti-pilferage and anti-defaulter policy and corresponding implementation plan.

[1] Bhatia, Mikul, and Benitez, Liliana, Power On: Power Sector Reforms and Performance Improvements in KRI, World Bank (Energy and Extractives Practice), March 8, 2016.

UNICON Limited, KRG-IRAQ: Pathways for Distribution Strengthening, Loss Reduction and Revenue Enhancement in KRG, World Bank, Oct 2016.

Duties and Responsibilities

Scope of Work

The Specialist will work under the direction of the UNDP FFER-KRG Project manager and will work closely with KRG MoE to support with the;

The main duties and responsibilities include:

Conduct desk review of existing legal, regulatory framework, and institutional arrangement of KRG MoE. The specialist shall prepare an initial baseline report through desk review of relevant documents and studies including KRG Ministry of Electricity Law number 6  of 2006, KRG MOE Regulation and Conditions for Electricity Supply number 1 of 2018 and World Bank Reports1 that will serve as the basis for more in-depth consultations during the mission.  This report should set out the;

• Policy, legal, regulatory and institutional arrangements pertaining to electricity sector of KRI. FFER-KRG will provide required support to deliver all the relevant documentations to the specialist and translations as needed;
• Identify key challenges, vulnerabilities, emerging needs of the sector and decisions that KRG-MOE will need to make;
• Lay out several proposed institutional structures to unbundle the vertically integrated utility;
• Research and assess optimal relevance of comparable electricity legal and regulatory options and best practices globally and from relevant knowledge products;
• Build an electricity KRG legal, regulatory, institutional (LRI) policy options model based on research relevant best practices;
• Research and assess anti-pilferage mechanisms suitable for KRG including technical (smart meters, pre-paid smart cards, split meters and walk by meters, real time detection, etc.) and administrative measures (smart customer databases, easy payments, billing improvements, automation of billing and collections, customer relationship management), and provide for legal sanctions and enforcement; provide a Revenue Collection Improvement Options matrix.

• Conduct consultation meetings with KRG MoE officials and other stakeholders. The Specialist shall undertake a mission to KRI Erbil to consult with all the relevant KRG MoE officials, other stakeholders, and independent Power Producers. This will include detailed consultations with KRG MoE and KRG Ministry of Justice regarding proposed industry structure and LRI policy options to reach consensus on the optimal LRI options, and revenue collections improvement architecture; this consultative exercise should result in
  • Shared understanding of costs and benefits of the LRI options, trade-offs among stakeholders, and consensus regarding the optimal LRI option for KRG at this time;
  • Discussion of restructuring options from vertically integrated structure to unbundled corporate entities, costs and benefits and consensus on industry structure;
  • Sign-off on industry structure and LRI options by Ministries of Planning, Justice, and Energy and greenlight to consultant and UNDP to draft LRI framework as agreed;
  • Discussion and decision regarding optimal revenue collection architecture including technical and non-technical means that will be embedded in the new law and regulations.

• Develop draft Electricity Law, regulatory framework and Institutional arrangement. Based on the desk review finding and consultation meeting with KRG MoE and other stakeholders, the Specialist will work with KRG MOE Legal Department to formulate a proposed Electricity law, regulatory framework and institutional arrangement for KRI electricity sector. The proposed draft law and regulations should
  • Clarify and embed in law and regulations the new unbundled industry and institutional structure as agreed upon during consultations with MOE, provide for competition through transparent licensing procedures and market operations, as well as independent regulation and market supervision;
  • Provide for all relevant sources of energy including renewables, however the renewable energy does not yet play any significant role in KRG, with only 3 small privately developed solar PV sites totaling 500kW currently installed near Erbil City[1]
  • Allow for investments from private investors in a variety of public private partnership modalities, and align the provisions with Annex E of Public Procurement Regulation 2 of 2016, as well as with the proposed provisions of PPP Law[2] (if one is underway) so that investor confidence is strong in regard to prospective PPP transactions in the energy sector;
  • Formulate and embed in law and regulations anti-pilferage mechanisms both technical and non-technical supported by sanctions and their effective enforcement;
  • Consolidate existing practices, rules and regulations while clarifying which will be retired and when so that the new legal regime is clear to industry participants, consumers, and investors.

• Present proposed Electricity law, regulatory framework and institutional arrangement to relevant KRG MoE officials. During a subsequent mission, the Specialist shall conduct a day long workshop with key KRG MoE officials and private sector stakeholders to discuss and help reach consensus on the proposed Electricity Law, regulatory framework and institutional arrangements. 

• Finalization of draft Electricity Law, regulatory framework and Institutional arrangement. The Specialist shall, based on conclusion of the workshop, finalize the draft Electricity Law, regulatory framework and Institutional arrangement for KRI Electricity sector.

• Revising existing KRG MoE regulation (Regulation and Condition of Electricity Supply) and developing new regulations considering new draft Electricity law, regulatory framework and MoE institutional arrangements. Existing regulations were developed during mid-2000 and might be required to be amended to complement KRG MoE revenue protection program as well as newly developed draft Electricity law, regulatory framework and MoE institutional arrangements. The specialist shall review existing KRG MoE regulations and propose changes to enhance MoE revenue collection system including but not limited to, prepaid modality, imposing strict penalties on the persistent defaulters of the utility, and legal action against electricity theft. Additionally, the specialist shall develop required regulation for the feed-in tariffs and prepaid system.

• Present proposed new regulations and changes required to existing regulation to relevant KRG MoE officials. During a subsequent mission, the Specialist shall conduct detailed workshop with key KRG MoE officials to discuss and help reach consensus on the proposed changes and new draft regulation.  At this juncture, the Consultant shall work closely with the Ministry of Law and Justice to ensure alignment with Constitutional and legislative requirements and protocols to enable ease of tabling to Parliament.

• Finalization of  new and existing regulation. The Specialist shall, based on conclusion of the workshop, finalize the changes to the existing and new regulations.

• Conduct training to KRG MoE staffs on the new legislation, institutional arrangement and new regulations.  The Specialist shall develop required training material and deliver the trainings. The consultant is required to consult with KRG MoE for the level of training and participants and develop training plan to be agreed by KRG MoE.

1. Expected outputs and deliverables:

The International Electricity Law specialist is expected to provide services to the KRG MOLSA on the following areas, but not limited to;

1. Time and Method of payment

The price proposal should be an “all-inclusive” lump sum fixed rate.

1. The Daily fee must be “all-inclusive”; and
2. An IC Time Sheet must be submitted by the Specialist, duly approved by the FFER-KRG Project Manager, which shall serve as the basis for the payment of fees. 
3. The Specialist’ report and deliverables will be certified by the project manager. The Specialist will be paid based on the submitted deliverable as outlined in section 3 and submission of certification of payment.

1. Reporting:

The Specialist will report to FFER-KRG project manager. The specialist will be working at KRG MoE during the missions to Kurdistan Region of Iraq - Erbil.

1. Travel Plan:

1. Contract Duration:

The assignment will be for 120 WDs over 11 months period (60 WDs on filed and 60 WDs home base), starting from the date that work assigned to specialist officially by FFER-KRG Project Manager.   The consultant is expected to start in February 2019.

[1] These solar PV installations were financed by the International Organization of Migration (IOM) to supply two schools and a clinic.

[2] As part of a separate exercise also funded by the FFER-KRG, KRI is moving forward with the formulation of a new PPP Law and implementing regulations, which will be in parallel to this exercise, and it is expected that the proposed Electricity Law will be aligned with the proposed PPP Law.

Competencies

• Ability to lead strategic planning, results-based management and reporting;
• High analytical skills oriented towards problem-solve;
• Leadership and self-management;
• Focus on results and respond positively to feedback;
• Consistently approach work with energy and a positive attitude;
• Demonstrate openness for approaches to manage complexity;
• Team spirit and excellent interpersonal skills;
• Demonstrates integrity by modelling the UN's values and ethical standards;
• Promotes the vision, mission, and strategic goals of UNDP and the UN; and
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability

Required Skills and Experience

The Specialist will require the following qualifications, experience, competencies and language skills. Only applicants who meet these criteria will be short-listed and will be contacted.

A. Education and Professional Qualifications Required:

• An advanced degree (Phd or equivalent) in (Electricity) Energy Law, Public Administration or related field.

B. Experience Required:

• A minimum of 7 years of relevant experience in Public Administration or related areas
• Experience in developing legal, regulatory, and institutional framework
• Experience with international organizations;
• Excellent written and verbal communication skills. Ability to interact and communicate effectively and diplomatically with government staff; and
• Ability to engage in substantive technical discussion with all stakeholders

D. Languages Required:

• Fluent in English written and oral and Knowledge of Arabic/Kurdish is a distinct asset.

Price Proposal and Schedule of Payments

Daily Fee – The contractor shall propose a daily fee, which should be inclusive of his professional fee, local communication cost and insurance (inclusive of medical health insurance and evacuation). The number of working days for which the daily fee shall be payable under the contract is 120 working days.

Evaluation Method and Criteria

Individual consultants will be evaluated based on the following methodology:

1. Cumulative analysis

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

a) responsive/compliant/acceptable, and

b) Having received the highest score 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 of 49 points (70% of the total technical points) would be considered for the Financial Evaluation

Technical Criteria – Maximum 70 points

Technical Proposal (30 marks)

• Technical Approach & Methodology (20 marks) – Explain the understanding of the objectives of the assignment, approach to the services, methodology for carrying out the activities and obtaining the expected output, and the degree of detail of such output. The Applicant should also explain the methodologies proposed to adopt and highlight the compatibility of those methodologies with the proposed approach.
• Work Plan (10 marks) – The Applicant should propose the main activities of the assignment, their content and duration, phasing and interrelations, milestones (including interim approvals by the Client), and delivery dates. The proposed work plan should be consistent with the technical approach and methodology, showing understanding of the TOR and ability to translate them into a feasible working plan.

Qualification and Experience (40 marks) [evaluation of CV]:

• General Qualification (20 marks);
• Experience relevant to the assignment (20 marks);

Only candidates obtaining a minimum of 49 points (70% of the total technical points) would be considered for the Financial Evaluation.

Documents to be included when submitting the proposals:

Interested international  individual consultants must submit the following documents/information to demonstrate their qualifications in one single PDF document:

• Duly accomplished Confirmation of Interest and Submission of Financial Proposal Template using the template provided by UNDP (Annex II);
• Personal CV or P11, indicating all past experience from similar projects, as well as the contact details (email and telephone number) of the Candidate and at least three (3) professional references.

Technical proposal:

• Brief description of why the individual considers him/herself as the most suitable for the assignment;
• A methodology, on how they will approach and complete the assignment

Financial proposal, as per template provided in UNDP jobsite (Annex II); https://www.iq.undp.org/content/iraq/en/home/operations/jobs.html

Incomplete proposals may not be considered