The EU signed an Association Agreement (AA) with Georgia in June 2014 to deepen political and economic relations and to gradually integrate Georgia into the EU’s internal market. This agreement entails the creation of a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Georgia. Under Article 333 of the Association Agreement (Cooperation between the Parties in the field of Agriculture and Rural Development), there is provision for ‘facilitating the mutual understanding of agricultural and rural development policies. To support Georgia improving rural development, the European Union (EU) launched its European Neighborhood Programme for Agriculture and Rural Development (ENPARD) in Georgia.

Within the framework of the third phase of ENPARD (ENPARD III), UNDP Georgia is implementing the project “Improving Rural Development in Georgia” (IRDG). The project contributes to improved governance in rural development (Output 1 and 4.1), rural economic diversification (Output 2 and 4.2) and sustainable environmental management (Output 3 and 4.3). The project’s activities will be carried out at national level and focus at local level on 8 target municipalities. It will continue until December 2022.

The project aims at introducing energy efficiency (EE) and renewable energy (RE) solutions at larger scale in rural areas, predominantly benefitting its 8 target municipalities but also including Georgian rural areas in general. In so doing, IRDG focuses on thermal solutions – thermal energy efficiency improvements and the generation of heat/cool. To achieve this, IRDG stimulates Georgian companies to discover and develop the rural market for thermal insulation and renewable energy.

Households in rural Georgia cover over 84% of their heating needs with wood and other conventional sources (GeoStat. 2017. Energy Consumption in Households. Table 3.5). 

As a consequence, the extensive use of fuelwood and other inefficient biomass for cooking, heating and warm water in rural Georgia has direct negative consequences on the environment and the climate, as chopping down trees for fuelwood is causing forest and land degradation and generates sizeable carbon emissions. It also represents a high burden for rural households in terms of health due to indoor air pollution (Georgia has the world’s highest mortality rate due to outdoor and indoor air pollution) (World Bank Group. (2018). Georgia – From Reformer to Performer. p51) and generates negative social and economic impacts due to illegal logging and trading of timber. Additionally, rural households suffer from widespread energy poverty, spending in average, depending upon the source used, between GEL 850 and a staggering 30% of their household income annually for energy needs (GeoStat, Distribution of Average Montlhy Expenditures per Households by Urban and Rural areas for housing, water, electricity, gas and other fuels (GEL 71.1/month = GEL 853.20/year) in rural areas, 2019), considering that rural households rarely pay any rent. And GeoStat. “Energy Consumption in Households, 2017”, Table 4.1 (excluding Diesel fuel).

Introducing energy efficiency solutions, such as wall insulation, roof insulation and double-glazed windows, and thermal renewable energies, such as solar water heaters, solar air heaters and heat pumps into rural areas at larger scale therefore provides ample space for cost reduction and improved living conditions.

The IRDG project’s 8 target municipalities are Lagodekhi, Dedoplistskaro, Tetritskaro, Borjomi, Akhalkalaki, Kazbegi, Keda and Khulo. A large survey conducted by the project revealed that for 68% of the population it is important or very important to care for the environment and 71% believe environmental protection is more important than economic growth, hence providing a sound base for energy efficiency investments based on environmental considerations. More importantly, 41.6% believe that better insulation and 19.5% that more efficient heating systems will improve their living standards or reduce cost.

The long-term potential market size is enormous: Within the 8 IRDG target municipalities, about 6% have a monthly household income of GEL 1,500 to GEL 3,000, and 5% of more than GEL 5,000 (vs. an average overall rural income of GEL 1,014.3) (https://www.geostat.ge/en/modules/categories/50/households-income). Together, these 8 municipalities comprise about 65,000 households. If only these top 11% income earners are considered as market it yields a potential market size of 7,150 households. In whole of rural Georgia, this increases to over 50,000 households.

IRDG aims at promoting EE and RE beyond the eight target municipalities to other rural areas. To achieve this, it plans to develop an online-tool/website for easy measurement of requirements and potential returns on investment. This tool shall be used by field experts, businesses and households alike.

The overall objective of the consultancy is to, for a given list of EE/RE technologies, elaborate all data requirements and formula necessary so that the user can obtain correct and useful information on best suited materials/technologies to achieve a desired impact, and on expected cost savings.

For the following technologies, assessments shall be possible:

1. Window caulking
2. Window films
3. Windows/door insulation with silicon sealant and similar materials
4. Front door insulation
5. Sealing of cracks and openings in walls
6. Wall, roof, top ceiling/attic, ceiling of basement insulation with straw, reed/cane
7. Wall, roof, top ceiling/attic, ceiling of basement insulation with mineral wool, stone wool, styrofoam (all envelope combinations)
8. Floor insulation (floating floor)
9. Replacement of windows (single- with double-glazed, different frames)
10. 2 different simple (self-made) solar air heating systems (designs and efficiency measures will be provided)
11. 2 different simple (self-made) solar water heating systems (designs and efficiency measures will be provided)
12. Air-to-air heat pumps
13. Air-to-water, water-to-water, ground-to-water heat pumps
14. 4 different types of professional solar water heaters

As baseline, users shall be able to use easily measurable and definable inputs, such as

• Location, altitude of dwelling
• Size of the dwelling
• Number of floors
• Type/inclination of roof
• Materials and thicknesses of walls and roofs
• Types, quantity and sizes of doors and windows
• Current heating system, fuel type and consumption
• Interest rate
• Own capital
• If required, for solar water and solar air heaters also more specific information such as
  • Angle at which heaters are positioned
  • Diameters and materials of used tubes
  • Sqm of surface

By providing those baseline data the user shall be able to do the following assessments (ceteris paribus):

• Expected change in indoor temperature by using each one or combination of the above technologies
• Expected savings and return of investment period by using each one or combination of the above technologies
• CO2/GHG savings
• Reverse calculation: identification of technologies that yield a given period of return of investment, indoor temperature or GHG savings.

The output of the consulting will be

• the formula required to achieve all the before-mentioned assessments ready to be used by website programmers of the desired on-line tool, including
• typical standard characteristics of the technologies as available in Georgia, and
• freely available reference sites for required climatic data, and a brief description how the user may identify materials used in the existing dwelling and safely measure thicknesses, angles etc.The outcomes shall be provided with an envisaged range of at most +/- 10 percentage points for technologies 7 to 14, and with a range of at most +/- 20 percentage points for technologies 1 to 6.

Additionally, the consultant shall provide the formula for an assessment tool to identify approximate real cost-savings based on thermographic images.

For relevant topographic and climatic data (e.g. Heating Degree Days) , the consultant may refer the user to publicly available and easily understandable data, which the consultant must however pre-identify.

Deliverables and payment modality:
The payment schedule is given below and will be made upon competition, submission and approval of deliverables by the supervisor:

100% of Consultanct fee paper comprising:

• All required input data
• All formula for calculating efficiency of the listed technologies
• All necessary links and references
• Sample calculations for each formula and expected assessment and explanations

Management Arrangements:

The international consultant will report to IRDG’s Environmental Co-ordinator under the direct supervision of the Project Manager and the Project Technical Leader of the “Improving Rural Development in Georgia” project and in consultation with the UNDP Economic Development Team Leader. The timely and high-quality submission of the deliverables is a pre-condition of the payments. The official language of communication and reporting for the present contract is English.

Corporate competencies:

• Demonstrates integrity by modeling 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;
• Treats all people fairly without favoritism.

Functional competencies:

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

Leadership and Self-Management skills:

• Builds strong relationships with the working group and with the project partners
• Focuses on impact and results for the project partners and responds positively to feedback;
• Cooperates with the working group effectively and demonstrates strong conflict resolution skills;
• Consistently approaches work with energy, positivity and a constructive attitude;
• Demonstrates strong influencing and facilitation skills;
• Remains calm, in control and good-humoured under pressure;
• Demonstrates openness to change, new ideas and ability to manage ambiguity;
• Demonstrates strong oral and written communication skills;
• Demonstrates the ability to transfer knowledge and competencies;
• Is able to work independently and hurdle competing priorities.

Education:

• Bachelor’s degree in engineering, physics, architecture or other related discipline (minimum requirement 10 points).

Experience:

• 5 years of demonstrated professional experience in renewable energy, energy efficiency, calculating the optimal systems and/or efficiencies of household-based thermal RE and envelope insulation (Minimum Requirement 18 points).
• Experience related to rural housing (from architectural, energy or economic side) an advantage (3 points).
• Experience in programming or website-design an advantage (3 points)
• Experience in the elaboration of calculation tools for EE/RE a distinct advantage (3 points).
• Experience in developing or transition economies an advantage (3 points).

Language Requirements:

• Excellent command of written and spoken English.

Evaluation:

Individual consultants will be evaluated based on the Cumulative analysis: Individual consultants will be evaluated against combination of technical and financial criteria. Technical evaluation stage encompasses desk review and interview of applications. Experts not meeting any of minimum technical qualification requirements will be automatically excluded from the list of candidates for further technical evaluation. Maximum obtainable score is 100, out of which the total score for technical criteria equals to 70 points (70%) and for financial criteria 30 (30%). Technical criteria composed of desk review (40 points) and interview (30 points). Offerors who pass 70% of maximum obtainable scores of the desk review (i.e. 40 x 70% = 28 points) will be invited for the interview. Those offerors who pass 70% of maximum obtainable scores for interviews of (i.e. 30x 70% = 21 points) will be considered as short-listed offerors and requested to provide financail proposals.

Financial Proposal: The financial proposal shall specify a total lump sum amount, and payment terms around specific and measurable (qualitative and quantitative) deliverables (i.e. whether payments fall in installments or upon completion of the entire contract). Payments are based upon output, i.e. upon delivery of the services specified in the ToR. In order to assist the requesting unit in the comparison of financial proposals, the financial proposal will include a breakdown of this lump sum amount. Maximum 30 points will be assigned to the lowest price offer. All other price offers will be scored using the formula (inverse proportion): Financial score X = 30* the lowest price offer/suggested price offer. All envisaged travel costs must be included in the financial proposal as well.