Background

BACKGROUND

The main goal of the project is to support SOCAR in the implementation of its Climate Change Mitigation Strategy by promoting and upscaling GHG mitigation measures through a programmatic NAMA approach in SOCAR’s oil and gas production and energy end-use sectors, and demonstrating NAMA approach by implementation of pilot projects in gas production (associated gas capture), buildings and transportation. The project has the eventual aim to improve Azerbaijan’s institutional & policy framework, address appropriate mechanisms and result in activities to realize significant GHG emission reduction achievements in the long term. The project, which began in March 2015, has so far been focusing on completing pilot activities whose results will be used to develop a larger NAMA program. For the Associated Gas Capture component, the feasibility study has been finalized and it is now planned to launch the procurement of a contractor to undertake the actual works.  

The leakage of associated gas from Azerbaijan’s oil-fields is well-known and measures have been taken in the past to plug them at a large scale. This activity is of high importance since Methane emissions have an enhanced effect on climate change because it has a climate forcing effect 25 times greater on a 100 year basis than that of carbon dioxide, the primary greenhouse gas (GHG). SOCAR currently uses outdated technology (e.g. compressors of low quality) to capture associated gases especially at on-shore sites which makes the capturing process inefficient and not economically feasible. In order to avoid large amounts of gas leakages from oil & gas wells in the future, modern technology and practice need to be applied to significantly improve the current gas collection & production regime at SOCAR’s on-shore wells.

Results of the Mid-Term Project Review

The Mid-Term Review (MTR) of the project was undertaken in late 2017 which reviewed the progress of the project so far and made recommendations to be considered in the remaining duration of project. It observed that SOCAR has had its Climate Change Mitigation Strategy and Associated Gas Reduction Plan in place since 2010, and it has been implementing GHG emissions reduction projects of different types since then, including capturing of associated gas on a large scale. The MTR recognizes that SOCAR’s 2010 Associated Gas Reduction Plan used a centralized process while this project will capture and process associated gas near the well-head site which would be more economical and effective.

The individual consultant (IC) being hired through this notice will ensure that more efficient and effective gas capturing measures are taken compared to those used by SOCAR in the past with a higher cost/benefit ratio. The key focus of the assignment is to guide the implementation of SOCAR’s Associated Gas Capturing Program in Siyazanneft oil-field. This project will capture and supply the associated gas to meet the heating needs of the area’s inhabitants (approximately 600 households comprising of a population of 2,500). The results of these actions will be used to further scale-up the efforts to capture gas leakages in other on-shore and off-shore oil-fields.

Duties and Responsibilities

Duties and Responsibilities

The feasibility report of the pilot project was prepared and approved by SOCAR in the first phase. The actual works could not be carried out due to the winter season and these will be completed within the 2018-19 time-frame. The main thrust of the IC’s effort will be to supervise and ensure the successful implementation of project for the capture and supply of gas for use by end consumers living in 12 nearby villages. In the fulfillment of this objective, the IC shall undertake the following specific tasks:

1. Assist UNDP in the selection of a suitable contracting firm to carry out the physical works;
2. Develop the monitoring mechanism for the construction works to ensure that they proceed and are completed according to the agreed design, schedule and cost;
3. Upon the completion of works, assist UNDP in the final inspection before taking over the completed project;
4. Prepare a report on all activities of Gas Capturing component including the measurement of avoided emissions and a cost/benefit analysis.

Deliverables and payment schedule

Competencies

Required Experience and Qualifications

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:

• An appropriate degree in Energy/Engineering/Environmental or a relevant field. A Master degree which is directly relevant to the scope of work of the assignment will be an asset - (15);
• Experience of design and implementation of mitigation actions to prevent flaring or venting of associated gas leakages in oil and gas fields - (15);
• Experience and a strong knowledge of key issues relating to the international agenda of Climate Change prevention and mitigation as applicable to oil and gas industry - (10);
• Previous relevant working experience with UN or other international organizations - (10);
• Preferably working experience in the region of South-East Europe/ Caucasus - (10);
• Brief Description of Approach to Assignment (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.

Any request for clarification must be sent in writing, or by standard electronic communication to the e-mail procurement.aze@undp.org. UNDP in Azerbaijan will respond by standard electronic mail and will send written copies of the response, including an explanation of the query without identifying the source of inquiry, to all shortlisted consultants.

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.