Historique

The objective of the project is to promote sustainable production and utilization of upgraded biomass fuels in heating applications in Georgia, to meet the country’s thermal energy needs in a sustainable and efficient way, thereby reducing dependence on fossil fuels and avoiding GHG emissions.

To achieve this objective, a comprehensive strategy is proposed, including promotion of demand and supply of biomass and demonstration activities such as the launch of a pilot plant for making upgraded fuels from biomass waste, one that can be replicated throughout the country, as well as establishment of a two-component Investment Grant Mechanism to deliver pilot biomass supply- and demand-side projects.

Affordable financing is essential to both sides of the biomass market – biomass fuel producers/suppliers and bioenergy end users. As it was mentioned by several stakeholders during the initial stage of the project, the rates prevailing in the Georgian financial market make commercial bank loans prohibitively expensive, particularly for capital-intensive and high-risk (perceived) investments in biomass energy production and utilization. Detailed and reliable information regarding bank financing should be obtained and analyzed.

There are a number of facilities in Georgia (e.g. KfW’s Renewable Energy Fund, EBRD’s Energy Efficiency Credit Line, Tbilisi Municipal Development Fund and others) that could be valuable sources of much-needed finance for bioenergy projects in the country. However, these facilities have not been specifically designed for supporting biomass investments and will require certain degree of learning and fine-tuning before they can engage in lending to bioenergy projects.

Collaboration with the relevant stakeholders (e.g. international organizations, foundations, Ministry of Energy, Ministry of Finance) is needed to explore and substantiate a dedicated biomass funding. Alternative funding options, e.g. ENRB’s EE credit line or Tbilisi Municipal Development Fund, will be explored as well.

Access to finance is important issue during implementation stage but it may be more important during post project period. Unavailability of funds may interrupt further development of biomass production and utilization.

Devoirs et responsabilités

Objective of the consultancy is to analyze the existing financial instruments and facilities, identify and propose necessary adjustments to improve access to finance for biomass projects. Prepare guidelines and recommendations for applying to available funding sources for any current or possible stakeholder.

Scope of Work

Short and general review of available funding sources and types of financing they provide:

  • Banks and other financial organizations;
  • International and local foundations;
  • International and local private companies.

List and evaluation of funding sources (including all above mentioned organizations), that may provide financing for project participants and partners for:

  • Business for biomass fuel production;
  • Municipal and other public organizations for biomass fuel utilization.

Detailed review and evaluation of requirements of the above mentioned funding sources. Conditions of applying for funding for:

  • Business for biomass fuel production;
  • Municipal and other public organizations for biomass fuel utilization.

Detailed recommendations to ease obtaining of funds for:

  • Business for biomass fuel production;
  • Municipal and other public organizations for biomass fuel utilization.

Provide recommendations on what steps (including legislation improvements) should be taken by stakeholders (e.g. Government, UNDP etc.) to increase accessibility to funds for business, public organizations, CSOs.

Deliverables:

  • Detailed work plan and schedule for the assignment;
  • Detailed list of funding sources available in Georgia that might finance biomass production and utilization projects; their requirements and existing procedures;
  • Recommendation for the typical organizations (Business entity, NGO, municipal or public organization) regarding preferable or possible ways of financing;
  • Guidelines how to apply for the funding to increase probability of success. Guidelines should be created for all kind of available funding sources;
  • Action plan to increase accessibility to funds;
  • Final report containing deliverables 2-5 and conclusions.

All deliverable should be prepared in Georgian and English languages.

Evaluation Criteria

Selection of offerors will be based on the cumulative analysis method, i.e. technical (70 points) and financial (30 points). Technical evaluation consists of desk review (50 points) and interview (20 points).

Offeror that do not meet Minimum Qualification Criteria will be automatically rejected, while the rest will form up the long list. The offerors who obtain minimum 30 points as a result of the desk review will be invited for an interview.

Offerors who surpass min 70% threshold for the maximum obtainable scores (i.e. 49 points) under technical evaluation will be requested to submit the financial proposal.

Financial Proposal

The financial proposal shall specify a total lump sum amount, and payment terms around specific and measurable deliverables (i.e. whether payments fall in installments or upon completion of the entire contract). Payments will be based upon output, i.e. upon delivery of the services specified in the TOR.  The financial proposal will include a breakdown of this lump sum amount.

Payment Schedule and Timeline

Acceptance of deliverables by UNDP Georgia will be made after quality certification of the deliverables by the project manager and by UNDP CO as per the below schedule:

  • Detailed work plan and schedule for the assignment (20% of the total amount) – one week;
  • Detailed list of funding sources available in Georgia that might finance biomass production and utilization projects; their requirements and existing procedures; Recommendation for the typical organizations (Business entity, NGO, municipal or public organization) regarding preferable or possible ways of financing (40% of the total amount) – 2 months;
  • Guidelines how to apply for the funding to increase probability of success. Guidelines should be created for all kind of available funding sources;  Action plan to increase accessibility to funds; Final report containing deliverables 2-5 and conclusions (40% of the total amount) – 3 months.

Compétences

Core Competencies:

  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
  • Highest standards of integrity, discretion and loyalty.

Functional Competencies:

  • Strong communication and analytical skills;
  • Demonstrated skills in drafting reports;
  • Ability to work under pressure with several tasks and various deadlines;
  • Excellent writing, presentation/public speaking skills;
  • A pro-active approach to problem-solving;
  • Computer literacy.

Qualifications et expériences requises

Education:

  • Bachelor’s Degree in Finance, Economics, Business Administration or in a related field (Minimum Qualification Criterion:15 points).

Experience:

  • At least 5 years of experience working on issues related to Finance, Investments, Economics, Project Development (Minimum Qualification Criterion: 5 years - 10 points; more than 5 years - additional 5 points);
  • Experience in developing of the business plans for profit and non-profit entities (15 points);
  • Experience of working in/for international organizations or government agencies (5 points).

Languages:

  • Fluency in Georgian and English languages.