Background

Background

The “Nationally Appropriate Mitigation Actions (NAMAs) for low-carbon end-use sectors in Azerbaijan” Project’s objective is to reduce the annual growth rate of GHG emissions from the energy end-use sectors. The project, which began in March 2015, targets 3 (three) energy end-use sectors, namely Buildings, Transport and Associated Gas Capture. The specific objective of project is to support State Oil Company of Azerbaijan Republic (SOCAR) in the implementation of its Climate Change Mitigation Strategy by promoting and upscaling green-house-gases (GHG) mitigation measures through a programmatic NAMA approach in the low carbon end-use sectors. SOCAR, being in the core business of oil & gas production, processing and distribution, is a major energy user and GHG emitter, and is the main stakeholder of project and implementing partner. The project also aims to improve the country’s institutional & policy framework, address appropriate mechanisms and result in activities to realise significant GHG emission reduction achievements in the long term.

The “Energy Efficient Buildings” component of the project is improving the energy utilization efficiency in buildings by promoting the energy conserving design of new buildings and enhancing the efficiency in the operation of existing buildings. The realization of this objective is facilitated through the demonstration of building energy efficiency technologies, systems, and practices. Significant physical progress has already been made on pilot activities in the form of energy audits and retrofits of several SOCAR buildings. In the next phase, using the results of completed buildings, a large-scale NAMA program will be developed and implemented within next two years which will replicate the results achieved from the design/implementation of pilot retrofits projects. The aim of the project is to: (1) implement activities that will demonstrate best-practices in green building technologies and design practices in building construction, (2) transfer new technologies to Azerbaijani building design and construction and (3) support SOCAR in becoming an important stakeholder in further up-scaling activities under national programs (e.g. State Programme on the Use of Alternative and Renewable Energy Sources) to better reflect the building energy efficiency component of existing and new building stock in Azerbaijan.

The annual emissions from SOCAR’s existing building stock offers a huge potential for undertaking energy efficiency improvements through retrofitting and installation of improved building technologies. The project aims to demonstrate EE technologies and measures in the existing and new buildings belonging to SOCAR, which owns usable floor space of residential, commercial/administration as well as social buildings of more than 400,000 square meters. SOCAR also develops and constructs buildings on behalf of other owners (mainly the public sector) and transfers to them upon completion and thus the benefits of applying EE technologies have the potential of being adopted by other entities in Azerbaijan. A significant amount of physical progress has been made on the buildings component since the project’s inception. Solar photo-voltaic (PV) systems and wind-turbines have been installed in Waste Management Building, Administration Buildings in Azerkimya and Eco-Park which are supplementing grid-supplied electricity with clean sources of energy. The use of energy-efficient building materials and insulations, glazed windows, and enhanced heating/cooling systems are helping to reduce energy consumption and thus mitigate GHG emissions which are the hallmark of several old buildings in SOCAR’s use.

Results of the Mid-Term Project Review

The Mid-Term Review of the project was undertaken in late 2017 which reviewed the progress of the project to date and made useful suggestions to be considered in the next phase of project. Specifically, it made the following observations and recommendations:

1. Taking into account the GHG reduction potential and costs of GHG reduction measures, as well as feasibility of overcoming identified barriers, feasible and affordable/realistic NAMA program for buildings should be developed with clearly stated targets;
2. Currently, SOCAR reconstructs just few buildings a year. Thus, the short-term replication potential within SOCAR’s existing buildings is rather limited. However, there is a large and most affordable replication potential primarily in newly constructed buildings, and to a lesser extent in reconstructed buildings, across all sectors in the country;
3. The next phase of the NAMA program/action plan should specify how to reach GHG reduction targets (size and type of individual GHG reduction measures) in the buildings sector. Given the large construction boom of residential and commercial buildings, especially in Baku, and, further, given that only a few commercial buildings have insulation at all, it is a unique opportunity for affordable energy efficiency improvements in them;
4. The lack of building insulation and energy-efficient practices is due to outdated regulations on energy performance in buildings and limited awareness. The incremental costs of energy efficiency implemented during building design and construction can be negligible compared to the total investment cost as demonstrated by the GEF-financed project in the Czech Republic which resulted in 50% energy savings in newly designed and constructed buildings;
5. SOCAR is now best positioned as a leader to scale up its experience through dissemination of results of its activities on the pilot project at a national level to assist the Government in achieving country’s ambitious GHG emission reduction targets.

Duties and Responsibilities

Duties and Responsibilities

The Individual Consultant (hereafter referred to as IC) shall lead the design and implementation of the next phase of NAMAs Action Plan for the buildings component of project under the overall supervision of Project Manager. In the fulfillment of his/her duties the IC shall complete the following tasks:

• The IC shall prepare a comprehensive report covering the technical and cost analysis of GHG emission reductions achieved from pilot activities. Further, building up on the achieved results, an estimate of GHG reduction opportunities and full potential in SOCAR and country-wide will be developed. A technical and cost barrier analysis will be carried out based on which feasible time-bound targets will be specified and NAMA action plan/program for SOCAR and country-wide will be developed for approval and implementation. The NAMA action plan will combine both investment actions, as well as necessary policy/regulatory actions;

• The IC shall assist the Climate Change Expert who has been already engaged on the project to develop a GHG marginal abatement cost curve for the buildings sector that illustrates the economic potential and associated full costs (levelized investment and operational costs) of individual GHG emission reduction opportunities in a single diagram;

• The IC shall capture the lessons learned on similar projects done locally as well as in the region and integrate them in the NAMA action plan. This shall include other SOCAR’s activities/experience gained from other projects/studies, as well as activities of and experience from other activities being implemented in the country with support from UNDP and/or other international donors;

• Energy efficiency and renewable energy requires effective regulations in order to be accelerated and mainstreamed. These regulations are either not in place yet in Azerbaijan, or they are not sufficiently specific/effective. The IC shall assess the present state of buildings regulations (including envelope insulation) in Azerbaijan, energy appliance labeling, minimal energy performance standards for energy appliances etc. The IC shall also utilize similar experiences from other CIS countries, where it implemented GEF-financed projects to develop and implement energy efficiency and renewable energy policies and regulations. For example, most of CIS countries have their national energy efficiency in buildings regulations updated already, which support the utilization of building envelope insulation;

• The IC shall prepare a comprehensive plan for the capacity development in Azerbaijan based on trainings and other awareness raising activities. Special focus should be given to teaching institutions for awareness raising by holding, e.g., student contests on energy efficiency in buildings. The IC shall develop a plan to facilitate transfer of this hands-on experience to local expert community, including architects, building designers, construction engineers, developers, construction practitioners, university teachers, students, etc.;

• The possibility of private investment on a commercial basis and new financing mechanisms, such as a revolving fund, will be studied by the IC based on which the financing barriers will be identified. Where necessary, recommendations for financial subsidies or strong regulations will be made.

Deliverables

1. A comprehensive report that builds on the results of pilot activities to develop a NAMA program and action program for upscaling GHG reductions in SOCAR as well as the entire country (25%);
2. A report which reviews the suitability of existing buildings energy-efficiency regulations in Azerbaijan. Based on the findings, make recommendations about what new measures should be included in the regulations (25%);
3. A capacity development plan will be development and its implementation will be arranged. This effort will be aimed at awareness raising among the general public and imparting hands-on experience to the professional community (25%);
4. A report about the commercial financing prospects and measures will be developed to assess the potential for private sector interest to invest in energy-efficiency activities (25%).

Contract Payment

The payments will be made in 4 (four) tranches in accordance with the deliverables above / in the attached ToR. In the financial proposals candidates should show the total amount expected for this work. 

Timeframe of the assignment

The LC will be engaged under an Individual Contract, immediately after the completion of the selection process. The initial contract will be for a period of 40-45 (forty-forty five) consultancy days, and is expected to start on 09th of May 2018. Any further contract extensions will be subject to the overall performance as evaluated jointly by the Project Manager and Lead Advisor, based on (a) results and impacts of the activities s/he implemented/facilitated, supported and/or conducted; (b) quality of reports, documents and presentations made, and (c) the relationship s/he developed with the Project Team and the beneficiaries of Project.

Travel

The IC will be expected to provide long-distance advice and in-country consultations. H/she is expected to be able to travel to Baku, Azerbaijan, pursuant to the work plan of project’s activities, 2 times during the first year of his/her contract. The dates of travel and the actual time spent in Azerbaijan for each visit will be decided by the Project Manager and is estimated to be a total of 10 days. All the expenses for the Travel must be included in the Financial Proposal. The daily allowance for Baku for April 2018 is 179$.

Competencies

Education

• University degree in a related engineering discipline;
• Advanced course-work of energy efficiency applications in large buildings is preferred;
• Knowledge of GHG inventories of buildings and setting up MRV systems is desirable.

Experience

• At least 5 years of practical experience in EE applications, preferably in the energy management of buildings;
• Hands-on or supervisory experience of carrying out the energy audits of buildings/facilities;
• Experience in preparing materials and implementing workshops, awareness training and seminars.

Competencies

Functional Competencies:

• Knowledge of energy conservation and energy efficient technologies;
• Strong knowledge in energy and GHG standards;
• Demonstrates strong analytical skills and consistently approaches work with energy and a positive, constructive attitude;
• Ability to work independently towards the achievement of broad objectives of the project with minimum guidance.

Development and Operational Effectiveness:

• Ability to apply peer reviewer guideline production procedures;
• Ability to analyze technical requirements in energy efficiency and energy management applications;
• Strong analytical skills.

Required Skills and Experience

Evaluation

Individual consultants will be evaluated based on the following methodologies: Cumulative evaluation that takes into account both financial offer and the technical expertise of the potential candidates.

A two-stage procedure has been utilized in evaluating the proposals, with evaluation of the technical component being completed prior to any price component being reviewed and compared.  The Price Component was reviewed only for those individuals whose Technical Component meets the requirements for the assignment.  The total number of points which individual may obtain for both components is 100. The technical component, which has a total possible value of 70 points, will be evaluated using the following criteria:

• University degree in a related engineering discipline (15);
• At least 5 years of practical experience in EE applications, preferably in the energy management of buildings (15);
• Hands-on or supervisory experience of carrying out the energy audits of buildings/facilities (10);
• Experience in preparing materials and implementing workshops, awareness training and seminars (10);
• Advantages  of the proposed methodology (10);
• Further Assessment by Interview (if any) (10).

If the substantive presentation of a technical proposal achieves the minimum of 49 points, the competitiveness of the offered consultancy expenses will be taken into account in the following manner:               

The total amount of points for the fees component is 30. The maximum number of points shall be allotted to the lowest fees proposed that is compared among those invited individuals which obtain the threshold points in the evaluation of the technical proposal. All other proposals shall receive points in inverse proportion to the lowest fees; e.g;

                [30 Points] x [US$ lowest]/[US$ other] = points for other proposer’s fees

Monitoring

Monitoring and progress control will be conducted by the Project Manager in consultation with the UNDP Project Coordinator.

Format and deadlines will be done in accordance with the phases and deliverables shown in the respective section in the ToR.

Documents to be included when submitting the proposals

• Methodology: All applicants shall submit a detailed methodology indicating phases, tasks, methods, techniques, time, resources, accessibility and tools to be applied for successful completion of assignment;
• Financial proposal for implementation of the assignment in a form of the Offeror’s letter to UNDP confirming interest and availability. Template of the financial proposal form is given as Annex to this request for proposals;
• The names and contact information of at least 3 references must be provided who are familiar with recent work performed relating to energy management of buildings.

NOTE: Since the website format allows to attach only one document, the applicants are kindly requested to combine all their documents including Technical and Financial proposals into one PDF file and upload it while submitting their application.