Background

In Bosnia and Herzegovina (BiH) public lighting (beside heating energy costs) is one of the biggest expenses for the public budgets, and implementation of the light-emitting diode (LED) lighting projects could permanently reduce budget expenses through monthly savings on utility bills up to 60%. In BiH, public lighting is under jurisdiction of local government units, who are responsible for managing it and keeping maintenance. In the provinces, most street lighting still uses inefficient lighting technologies such as fluorescent lights, incandescent bulbs, and low-pressure mercury vapor lamps. BiH municipalities should shift to usage of efficient lights for public lighting to reduce the energy consumption and as well avoid the associated carbon dioxide (CO2) emissions.

Currently high costs related to electricity consumption within BiH’s public lighting systems are the common fact to all municipalities in BiH, resulting in vast amount of public expenditures and lack of financial resources for public lighting, as well as other municipal related services and infrastructure projects. With shrinking budgets and inability of commercial loans to finance such projects, municipalities rarely invest in projects of complete replacement of systems. There is an urge need of unified and systematic approach to renovation of public lighting systems, to solve issues of rebound effects, unmet lighting conditions and poor planning, to avoid overly simplistic solutions that could lead to non-optimum solutions in the long term.

UNDP Slovak Republic is implementing regional “Public and Private Finance for Development” project, funded by Slovak Republic government. Within activities of the project, UNDP BiH implements “Development of a private-public investment model for EE street light systems in BiH” project. The project will support BiH’s related energy efficiency and renewable energy targets (in accordance with the Energy Community Treaty and its obligations) by providing financial support to EE infrastructure projects and contributing to enable a favorable environment for such investments in BiH.

Various financial models and private-public-partnership (PPP) projects are already efficiently implemented in Slovak Republic. As baseline state of public lighting systems and abilities of local municipalities was similar to BiH, Slovak Republic with proven results and experience in this field could provide significant transfer of knowledge and know/how experiences to BiH.

Project has mainly two phases, where in the first phase financing and repayment modality will be developed, as well as Feasibility Studies on such arrangement. The developed model will serve as baseline for further arrangements, partnerships and investments in public lighting systems. This phase will assure sustainability of such approach, and future feasibility of such projects.

Second phase of project would be implementation of private-public partnership with an aim to reconstruct and install new EE Street Light Systems in selected municipalities. Each of these infrastructure projects will present piloting project and will contribute to readiness for future investments.

Also, implementation of these infrastructure projects will contribute to improvement of road safety for all participants in traffic and elimination of the security concerns and concerns related to fear of crime for women, children and the elderly people, especially during night and lack of appropriate lightning. Furtherly, the Project will improve the local population’s living standard by contributing to the reduction of the CO2 emissions, due to significantly lowering energy consumption.

This outcome is directly linked to the SDG 9 - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation and SDG 11 - Make cities and human settlements inclusive, safe, resilient and sustainable, but also contributes to SDG 7 (Affordable and clean energy) and SDG 13 (Climate Action).

Objective of the consultancy

The Objective of this consultancy is to develop an optimal model on partnering, financing, as well as repayment and reinvesting regarding PPP within EE street lighting. To develop such optimal model, at first it is necessary to develop various potential models of financing modalities.

Developed and presented optimal model should support EE public lighting saving measures, all according to National Energy Efficiency Action Plan (NEEAP) priorities and in line with municipalities’ Sustainable Energy Action Plans (SEAPs). Besides development of the ESCO business model processes (performance-based), also eligibility criteria for partnership, monitoring and verification procedures for proving savings achieved, will be developed. Model of repayment of investment to private investors should be built up out of energy cost savings by municipalities. All legal financial and technical possibilities of such modalities should be included.

This model will serve as baseline and pioneer framework for further arrangements, partnerships and investments in public lighting systems. Developed model will include eligibility criteria for entering the partnership.

Consultant will also provide expertise to assist UNDP in evaluation process, based on eligibility criteria, and interest, to choose up to 8 municipalities to develop Feasibility Studies for instalment of new EE Street Light System. Also, expertise will be provided to interested municipalities, with an aim of deeply understanding possibilities of such arrangements.

Purpose of the consultancy

The purpose of this consultancy is to use knowledge and transfer Slovak experience on activities Development of model for EE savings repayment within private sector investor and municipality, and identification of municipalities, where this initative will be implemented.

The International consultant for transfer of knowledge from the Slovak Republic for the development of the optimal investment model for PPP for EE street lighting systems in Bosnia and Herzegovina will contribute to the successful implementation of the Development of a private-public investment model for EE street light systems in BiH project financed by the Slovak Republic. The project will support BiH’s related energy efficiency and renewable energy targets (in accordance with the Energy Community Treaty and its obligations) by providing financial support to EE infrastructure projects and contributing to enable a favorable environment for such investments in BiH.  

It is necessary to emphasize that, based on political environment in BiH with decentralized legislative, there is no unified Law on PPP, but each government level has its own law. PPP’s could present a win-win situation for the public institutions, private investors, and the general population which would benefit from such projects. Currently, such projects in BiH are not wide spread, especially among small scale projects, such as public lighting systems.

To develop optimal model on partnering, financing, as well as repayment and reinvesting, it is necessary to develop various potential models of financing modalities. In order to do so, consultant should simultaneously address the following barriers which limit municipalities’ access to finance:

  • Limited EFs’ revenues base/sources of capitalization;
  • SMEs’ limited borrowing capacity preventing them to offer ESCO services on a larger scale;
  • Municipalities high level of indebtedness preventing them accessing commercial financing;
  • All other detected barriers.

The added value of Slovak expertise would consist of knowledge transfer in relation to the current PPP on EE projects in the EU and current street lighting best practices in the Slovak Republic.

The selected international consultant is expected to closely coordinate with the Project Manager of the project.

Duties and Responsibilities

The international consultant for transfer of knowledge from the Slovak Republic for the development of the optimal investment model for PPP for EE street lighting systems in Bosnia and Herzegovina will work under the direct supervision of the Project Manager of the “Development of a private-public investment model for EE street light systems in BiH” project, who will approve and confirm the quality of outputs, to complete all activities specified in this Terms of Reference.

  • Scope of work

The selected international consultant will be responsible for accomplishment of following tasks:

  1. Development of optimal model for EE savings repayment within private sector investor and municipality;
  2. Consultancy during the process of identification of partner municipalities.

It is envisaged that the level of effort for these tasks will not exceed 60 expert days, including at least one mission in Bosnia and Herzegovina at the beginning of assignment. Also, it is expected that consultancy in second activity partially takes place in the UNDP premises.

The assignment will include regular consultation/clarification meetings of international consultant with Project implementaton team through a conference call.

Deliverables/outputs:

  1. Presented methodology and work plan, including mission and visits to BiH - 2 days,  November 31st 2018, 10%;
  2. Developed various modalities on PPP regarding EE in street lighting systems and proposed one to serve as optimal model to be furtherly developed and elaborated (including at least one mission to BiH ) - 34 days,  January 31st 2019, 50%;
  3. Developed detailed methodology and optimal model for EE savings repayment within private sector investor and municipality - 20 days, March 15th 2019s, 30%s;
  4. Capacity building on the process of identification of partner municipalities; Includes on site consultancy process during the identification of partner municipalities (based on developed model) - introduction to and partnering with up to eight municipalities via public call  - 4 days,  April 30st 2019,10%;

The International Consultant must ensure timely preparation and submission of all deliverables as mentioned before. All reports must be submitted in English to the UNDP Project Manager of the “Development of a private-public investment model for EE street light systems in BiH”.

Competencies

Corporate competencies:

  • Demonstrates integrity by modelling 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;
  • Fulfils all obligations to gender sensitivity and zero tolerance for sexual harassment;
  • Excellent communication skills;
  • Excellent analytical skills;
  • Strong oral and writing skills;
  • Focuses on result for the client and responds positively to feedback;
  • Consistently approaches work with energy and a positive, constructive attitude;
  • Remains calm, in control and good humored even under pressure;
  • Ability to work independently as well as part of a fairly big team;
  • Ability to operate under strict time limits.

Required Skills and Experience

Academic Qualifications/Education:

  • A Master’s degree (or equivalent) in economics, finance, energy and/or technical sciences, or a related discipline;
  • PhD would be considered an asset.

Experience:

  • At least ten (10) years of demonstrable relevant working experience in similar tasks and studies and proven track record in technical, scientific and socio-economic fields, in projects related to public lighting systems;
  • Management experience in projects with multidisciplinary teams, as well as with a wide range of stakeholders (private, government, etc.);
  • Proven experience and knowledge of local private-public partnership and financing modalities, where South-East Europe (SEE)/regional/Slovak market would be considered as additional asset.;
  • Good technical knowledge of energy efficiency in public lighting systems, in particular experience with design of financial mechanisms and schemes for investment in EE;
  • Work experience involving, public lighting systems and energy efficiency in the region of the project is highly desirable and is an asset;
  • Experience with procedures of international development and financing agencies projects, work within UNDP would be considered an asset;

Languages Requirements:

  • Fluency in both written and spoken English (excellent writing, editing and communication skills) demonstrated in submitted one-page English segment of any relevant study/publication/written document compiled to assess language skills;
  • Fluency in the local languages would be considered an asset.

Technical criteria:

  • Criteria A: Methodology (document which contains brief explanation on approach to conduct the work)- Weight:40%, Maximum points: 40;
  • Criteria B: Proven analytical skills and ability to conceptualize and write concisely and clearly; evaluated based on submitted methodology - Weight: 10%, Maximum points: 10;
  • Criteria C: Excellent organizational, time management and facilitation skills; evaluated based on submitted methodology. 10% 10
  • Criteria D: Ratings based on shortlisting criteria (Academic qualifications/ education; professional experience; Prior work eperience with UNDP/UN agencies - Weight: 40%, Maximum points: 40;

Financial criteria: Price offer from candidate (lump sum offers in USD, calculated using prevailing UN exchange rate) - Weight: 30;

EVALUATION

Individual consultants will be evaluated based on the following methodology:

Cumulative analysis

When using this weighted scoring method, the award of the contract should 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%

Applicants are required to submit an application including:

Please scan all above mentioned documents and upload as one attachment only online through this website.

Note:

  • For an assignment requiring travel, consultants of 65 years or more require full medical examination and statement of fitness to work to engage in the consultancy.
  • Due to large number of potential applicants, only competitively selected candidates will be contacted for remaining steps of the service procurement process.