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 targets 3 (three) energy end-use sectors, namely (i) Buildings, (ii) Transport and (iii) Associated Gas Capture. The 5-year project started in 2015 and has a specific objective to support State Oil Company of Azerbaijan Republic (SOCAR) in the implementation of its Climate Change Mitigation Strategy. This is to be done by promoting and upscaling 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 emitter of greenhouse gases (GHG) and is the main stakeholder of project as well as implementing partner. The Project, which aims to further SOCAR’s long-term sustainable development strategy, will also target the country’s institutional & policy framework, address appropriate mechanisms and result in activities to realize significant GHG emission reductions in the long term. The other key institutional stakeholders for this project are as listed below:

•          Ministry of Ecology and Natural Resources (MENR);

•          National Climate Change Center (NCCC);

•          Ministry of Energy of the Republic of Azerbaijan.

Marginal Abatement Cost (MAC) Curves

MAC curves are a useful tool to contrast marginal abatement cost and total emission abatement by indicating the cost associated with the last unit (the marginal cost) of emission abatement for varying amounts of emission reduction (in general in million/billion tons of CO2). MAC curves help to illustrate the economics of climate change mitigation and contribute to decision making in the context of climate policy, more specifically, prioritize mitigation measures which offer the highest cost-to-benefit ratios.

Objective

The already completed pilot activities in the buildings and transport sectors have helped to quantify the potential of GHG reductions. The cost-versus-benefits analysis of installing the retrofits in the buildings sector has already been done. For the transport fleet, eco-driving practices were instituted and it has been recommended to gradually replace vehicle fleet with EVs (electric vehicles) and HEVs (hybrid electric vehicles). A cost-benefit-analysis of various measures for the transport sector has also been done. The MAC curves for the buildings and transport sectors were earlier prepared with the help of an expert and the draft report will be provided to the IC. The IC shall develop the priority list of measures to reduce the emissions in the buildings and transport sectors. In addition to estimating the abatement due to each measure, the total potential of reductions in SOCAR’s buildings and transport sectors will be assessed by the IC. These emission reduction and cost estimates will be used to develop a commercial scale NAMA program to be implemented by SOCAR using internal and external resources. A technical design together with estimate of investment costs will help in obtaining regional and international climate funding (e.g. Green Climate Fund) for SOCAR’s emission reductions in these two sectors.

Duties and Responsibilities

The IC’s tasks are divided in two steps: (1) Review for accuracy the MACC curves and other information given in an earlier draft report (to be shared with the IC) and (2) Additional tasks to be performed. These are explained in the following two sections:

Review and finalization of existing report:

• Finalize the marginal abatement cost (MAC) curves for the buildings and transport sectors as given in the draft report to demonstrate effective mitigation policies and economic scenarios.

Additional tasks:

• Provide an actionable program of GHG reductions along with total investment needs for SOCAR’s buildings and transport fleet.

• Prepare a strategy for raising awareness among decision and policy makers and conduct a workshop covering (i) MAC curves; and (ii) policy/regulatory actions.

DELIVERABLES and PAYMENTS

Payments will be based on milestones as detailed below.

Financial Proposal

A total Lump Sum Fee should be submitted which includes the all-inclusive fixed total contract price supported by a breakdown of costs, as per template provided.

Note: Installments will be based on invoices on achievement of agreed milestones i.e. upon delivery of the services specified in the TOR and certification by the UNDP

The contract for the International Consultant will be a Lump Sum contract. The candidates are required to include in the Financial Proposal template to be provided by UNDP all the costs related to this assignment. These include:

• Number of consultancy days – 20 days
• Round trip airfare (economy) to Baku, Azerbaijan – 2 trips
• Number of total scheduled days in Baku – 8 days (The maximum daily rate to be included for Baku as per DSA is 129 USD)
• Other, if applicable.

Travel

Travel expenses should be included into the financial proposal. 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 or elsewhere in Azerbaijan, pursuant to the work plan of project’s activities, 2 times during this contract period. 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 8 days. All the expenses for the Travel must be included in the Financial Proposal. The current rate for Baku is 129.00$.

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.

Competencies

In order to be qualified for the assignment, the Consultant must have:

1. At minimum a Master’s Degree in energy/environment, natural resources management or environmental economics field;
2. Demonstrated experience in analysis and construction of GHG marginal abatement cost curves or energy efficiency and renewable energy supply curves and calculation of levelized energy costs; At least one study/report with energy efficiency and renewable energy technical and cost-benefit analysis and GHG marginal abatement costs curve;
3. At least five (5) years of experience in management of projects and/or assignments of similar complexity in the areas of climate change mitigation, NAMAs, CDM or similar;
4. Experience in technical and cost-benefit analysis of energy efficiency and renewable energy opportunities across all sectors, with a special focus on buildings and transportation. Experience with associated gas capture in oil and gas industry is a plus.
5. Experience from technical and cost-benefit analysis of GHG mitigation options in Azerbaijan, CIS or similar countries of the region is an advantage.

Required Skills and Experience

The Evaluation Method will be Cumulative evaluation that takes into account both financial offer and the technical expertise of the potential candidates.

A two-stage procedure will be 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 will be 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:

At minimum a Master’s Degree in energy/environment, natural resources management or environmental economics field; (10)

b)         Demonstrated experience in analysis and construction of GHG marginal abatement cost curves or energy efficiency and renewable energy supply curves and calculation of levelized energy costs; At least one study/report with energy efficiency and renewable energy technical and cost-benefit analysis and GHG marginal abatement costs curve; (20)

c)         At least five (5) years of experience in management of projects and/or assignments of similar complexity in the areas of climate change mitigation, NAMAs, CDM or similar; (20)

d)         Experience in technical and cost-benefit analysis of energy efficiency and renewable energy opportunities across all sectors, with a special focus on buildings and transportation. Experience with associated gas capture in oil and gas industry is a plus. (10)

e)         Experience from technical and cost-benefit analysis of GHG mitigation options in Azerbaijan, CIS or similar countries of the region is an advantage. (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

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 Methodology, 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.