Background

UNCDF, the UN capital investment agency for the 48 least developed countries, provides seed capital and technical assistance to test new modalities of public and private financing for local development. These investments are designed to leverage innovative financial flows from the private sector, national governments and development partners, for maximum impact towards inducing sustainable growth and transformative impact via the localization of the SDGs. UNCDF discreetly operates two inter-connecting practice areas of; (1) inclusive finance, and (2) local development finance. The goals of UNCDFs local development finance practice is to assist municipal authorities develop productive infrastructures and provide quality services that contribute towards transforming the economic structures of local economies and improving the quality of life of citizens.  This concept extends beyond local governance and the decentralized provision of services to the spatial, institutional and economic linkages required for comprehensive development. It additionally addresses the spectrum of climate change adaptation, food security, education and health, infrastructure, resilient environments, citizen empowerment and representation, and fulfilling and rewarding inclusive economic activity.

The UNCDF Portfolio in ASEAN

Historically, UNCDF have designed and implemented local development initiatives in a majority of the ASEAN member states both at national and sub-national levels. In particular, in alignment to its mandate, UNCDF has mainly operated in the Least Developed Countries, of the ASEAN region including; Cambodia, Laos PDR and Myanmar. UNCDF portfolio in Cambodia covers climate adaptation at sub national level and the development of Public Private Partnerships to provide SDG finance covering either infrastructure and or service provision. This ToR covers work for the latter, being implemented within the framework of the Country Investment Fund (Cambodia CIF).

The Cambodia CIF project is a pilot innovation that is supporting the Royal Government of Cambodia (RGC) to develop internal and external capacities to develop, design and implement Public Private Partnerships within the framework of the new RGC PPP architecture and new laws. The demonstration(s) that are being pursued by UNCDF are small scale PPPs (approx. US$ 5 to 10 million) that focus on waste to energy conversion solutions for urban waste.  Two projects have been identified as potential PPPs being located in Siem Reap and Poi-Pet. Both project sites are within easy travelling distance by road (2 hrs).

Urbanization and its impacts on public services

Cambodia has one of the fastest urbanization rates in Southeast Asia, as the RGC has been progressively adopting urban-related policies and a local government reform programme through D&D reform. The lack of comprehensive, harmonized data on the state of Cambodia’s settlements, fragmented institutional mandates, and limited public participation in co-implementing urban plans, as well as restrictions on capital, have meant that urbanization has evolved in a haphazard manner. These challenges are exacerbated by constraints on public budgets, fiscal devolution processes and the limitations of cities to access and develop new forms of finance. Public infrastructure in cities is unable to keep up with demand, including for transport, electricity, waste and water and sanitation systems. 

The challenge of financing development in the Region

The least developed countries (LDCs) in ASEAN represent some of the fastest growing economies in the world. Estimates suggest that growth in Asia and the Pacific is expected to remain steady at 5.5% in 2016 (IMF Regional Economic Outlook, April 2015 issue).

Growth within the region will be driven by domestic demand, tourism and through global exports. The region accounts for approximately 40% of the global output but contributes to nearly two thirds of global growth. The inward expansion of the global value chains (GVCs) in Asia has been noticeable and has witnessed the engagement of the CLMV cluster of countries to engage in lower value activities, whilst the more advanced economies have moved into higher positions on the GVC (upstream) and are capturing a growing share of the GVC-related value added.

Although inter-regional trade has increased the level of financial integration across the ASEAN economies remain weak. Only between 20% to 30% of the cross-border investment and banking portfolio is inter-regional.  This indicates that ASEAN member states tend to invest more into their “home” country as opposed to neighbours. However, it is witnessed that financial integration increases with trade integration and the size and sophistication of financial systems. Given that Thailand has re-oriented its export policy towards ASEAN and the Asia region in general opportunities arise that support investments through inter-regional financing that specifically boost regional trade.  

The major challenge facing infrastructure development concerns capacities of governments and project developers accessing affordable capital and owning the capacity to implement PPP projects.

Duties and Responsibilities

Objective of the Assignment 

The objective of the assignment is to generate a technical  feasibility report and a technical solution to support the development of a demonstration Public Private Partnership (PPP) related to urban and light industrial waste disposal.   

Pre-feasibility analysis is one of the most critical steps in the initial decision-making process for project development. Before an investment decision is made and further more detailed studies are commissioned it is necessary to determine whether or not the planned investment idea is feasible. The pre-feasibility of an investment idea within the context of this ToR has to be considered with respect to several different aspects in order to determine whether the investment should be realized or not. The initial financial feasibility study has been completed and provides the broad costing and revenue streams for the waste to energy project based on international norms. This fincnail fasibility will be utilised by the consultant to set the scope for the choice of suitable processes, plan and operatonal set up.  

The objective of this consultancy is to generate a  Technical Pre-Feasibility for two (very similar) Investment projects that , that have been pre-identified through consultation with the municipalities and central government. The consultant will generate a technical review, providing suitable costed options for waste to energy conversion, description of plant, civil engineering requiremnets and a cost benefit analysis of the solution.

The format of the technical prefeasilibity reports (total pages approx. 40) + annexes will include but not be limited to the following key sections:

• Project Summary (300 words)
• Financing / Cost Information
• Detailed Project Description
• Technical solution, plant and process
• Civils works required
• Cost benefit analysis for the process when compared against current operations
• Risk analysis matrix
• Power point presentation

The consultancy will support the formulation of technical inputs making refrence and using assumptions provided in the UNCDF PIM that contains CAPEX and OPEX Information.

Scope of Work

Working under the direct supervision of the Regional Technical Advisor, Local Development Finance for Asia based in Bangkok, the consultant will be responsible for providing high quality technical / solutions assessment report as described above for the purpose of capital investment analysis to finalize the evaluation of the economic and financial viability of an investment of two identified urban waste management projects that will be potentially implemented through a PPP – BoT modality.  

Indicative Locations for Study:

• Siem Reap, Cambodia – Priority Area
• Poi Pet, Cambodia – Secondary Area

The broad strategy for developing the required will be approached in 3 stages through demonstration as described. The finalised content and sub content (features of the analysis) will be agreed during the 1st week of the mission through consolation between the consultant and UNCDF:

Typical structure for reporting

Technology

• Short paper on proposed technology to be deployed
• Detailed description of the plant and process

Plant and Process Design

• Basic design description of what will be required
• The Waste To Energy (WtE) plant is to have an annual waste processing capacity of 50,000 tons, an electricity generation output of 25,000 MWh per year

Project Costs

• Costing methodology to be applied for CAPEX and OPEX
• Determine break even points for the technical solutions
• Detail the envisaged capital structure for the project consists of a 70%/30% debt/equity mix. From a ROI perspective, the project yields an IRR of 14% at project level and an IRR of 21% at shareholder level, both well above their respective cost of capital
• Cost analysis of total costs with costs benefits analysis which is based on what’s currently happening in terms of what the proposed plant can do in savings and contributions to the local economy.
• Report will be a maximum of 40 pages, including annexes with proposed site plans, calculations and tables.

UNCDF Regional Technical Adviser (RTA) based in Bangkok will be the contact point for the mission, providing necessary management support, guidance, and oversight of the mission.  RTA will be responsible for reviewing intermediate and final products and providing approvals for payment based upon the deliverables under the section on Expected Outputs and Deliverables. 

Expected Outputs and Deliverables 

The consultant will deliver the following within the framework of the mission:

1. Work plan
2. Pre-financing statement for two identified waste management projects (see related site visits and required technical reports under Section on Timeline and Terms of Payment)
3. PIM (pre-financing technical studies) that includes a succinct project description for potential investments in alignment to section III (see deliverables on solusions and technology, and technical design under Section on Timeline and Terms of Payment)
4. Financial risk assessment tables (as also noted in Section on Timeline and Terms of Payment)
5. Presentation (as also noted in Section on Timeline and Terms of Payment)

Timeline and Terms of Payment 

The following terms of payment based upon the above-mentioned deliverables will be applicable for this Terms of Reference and associated missions. Payments will be based upon a percentile of the contracted lump sum for each area as tabulated. The payment will only be made up on satisfactory completion and submission of the assignment and deliverables.  Payment will be made within 5 days of submission of payment request and travel will be dependent on restrictions of inbound and outbound of countries in Thailand and Cambodia. 

Travel cost will be reimbursable based on actual cost upon presentation and submission of receipts. Ticket costs will be reimbursable based on actual cost upon presentation of receipt, but only up to the price ceiling established by UNCDF’s authorized travel agent. Per-diem will be paid in accordance with UNCDF’s rules and regulations.Remarks on travel-related expenses

1. All travels specified in the contract will require pre-approval from RTA, UNCDF’s senior management. Travels should be in conjunction with decisions made by UN RC/DO and travel advisories set by host countries as well as WHO and UN guidelines.

Provision of Monitoring and Progress Controls

The consultant will work in close consultation with and report to Regional Technical Advisor based in Bangkok. The Regional Technical Advisor will provide overall supervision of the consultancy and approve key outputs and deliverables. 

Consultancy fees will be paid upon: (i) submission of invoice and Certificate of Payment form (ii) review, approval, acceptance of output for each deliverable by Regional Technical Advisor based in Bangkok (iii) authorization of payment disbursement from direct supervisor.

Competencies

Functional competencies:

• Good communication skills; sensitivity and willingness/flexibility to respond to client’s needs.
• Owns a comprehensive knowledge of the Corporate Development & Acquisitions, Leverage finance, ECM / Equity related, Risk management
• Able to provide complex/ in-depth technical process modelling e.g. Capital/Financing structuring and IRR/ROI analysis, DCM, ECM, acquisition financing, Loans, M&A and risk management, equity/IPO carve-outs, spin-offs, refinancing transactions, liability management transactions, disposals, shareholder financial policy formation and adjustment and provide projections and valuation models on reviewed opportunities
• Able to prepare and provide presentations to potential investors in relation to reviewed opportunities
• Able to effectively undertake desk-based research and communicate with key experts within the field of the work to be undertaken

Required Skills and Experience

Education:

• A Master’s Degree in business (MBA) and technical capacaity in W2E solutions

Experience:

• A minimum of 5  years of professional experience with experience working within public private sector projects
• Work and business experience in GMS countries

Language requirement:

• Full proficiency in English

Please refer to functional competencies above. 

Evaluation Method

Applications will be rated on both technical and financial submissions.  The following selection method will be used:  Highest rated proposal using the combined scoring method, which assigns the weight distribution between the technical and financial proposals.  The weight distribution shall be 70% technical and 30% financial. 

Step I: Screening/Longlisting

Applications will be screened and only applicants meeting the following minimum criteria will progress to the pool for shortlisting.

• A Master’s Degree in corporate finance/finance and MBA
• A minimum of five (5) years of professional experience working within public private sector projects
• Proven track record of providing pre feasilibity studies and due dilligence for PPP type of investment
• Experienced in project development and fiance in GMS countries

Step II: Shortlisting by Desk Review

UNCDF will conduct a desk review to produce a shortlist of candidates by evaluating the following criteria with the corresponding points (100 points)

• Owns a comprehensive knowledge of the Corporate Development & Acquisitions, Leverage finance, ECM / Equity related, Risk management (25 points)
• Able to provide complex/ in-depth technical and process modelling and  Capital/Financing structuring and IRR/ROI analysis, DCM, ECM, acquisition financing, Loans, M&A and risk management, equity/IPO carve-outs, spin-offs, refinancing transactions, liability management transactions, disposals, shareholder financial policy formation and adjustment and provide projections and valuation models on reviewed opportunities (25 points)
• Able to prepare and provide presentations to potential investors in relation to reviewed opportunities (25 points)
• Able to effectively undertake desk-based research and communicate with key experts within the field of the work to be undertaken (25 points)

Only the applicants achieving 70% of the points will be considered as technically qualified and will be reviewed further for financial evaluation.

Step III: Financial Evaluation

The following formula will be used to evaluate financial proposal: Lowest priced proposal/price of the proposal being evaluated x 30%

Application

Interested individual consultants must submit the following documents/information to demonstrate their qualifications. Proposers who shall not submit below mentioned documents will not be considered for further evaluation.

• When applying for this consultancy position, please apply with your official name as shown in the government issued identification document (e.g. passport and/or driver license). Contract award is subject to this verification;
• Summary statement of competencies in relation to the TOR

• Curriculum Vitae or Completed P11 Personal History Form with names and current contacts of 3 referees (available from http://sas.undp.org/documents/p11_personal_history_form.doc)
• Confirmation of interest and Financial proposal: 

Under section E of the Offerer’s letter to UNDP Confirming Interest and Availabilty for the Individual Contract (IC) Assignment, please choose to indicate “An all-inclusive daily fee”. The form can be accessed through the link below:

https://popp.undp.org/_layouts/15/WopiFrame.aspx?sourcedoc=/UNDP_POPP_DOCUMENT_LIBRARY/Public/PSU_%20Individual%20Contract_Offerors%20Letter%20to%20UNDP%20Confirming%20Interest%20and%20Availability.docx&action=default

• Earliest Availability

Individual Consultants are responsible for ensuring they have vaccinations/inoculations when traveling to certain countries, as designated by the UN Medical Director. Consultants are also required to comply with the UN security directives set forth under dss.un.org  If the consultant is over 65 years old, UNCDF reserves the right to require full medical certification and clearance from the consultant’s physician prior to commencing the travel.

Both individual consultants and individuals employed by a company or institution are welcome to apply. Any individual employed by a company or institution who would like to submit an offer in response to a Procurement Notice for IC must do so in their individual capacity (providing a CV so that their qualifications may be judged accordingly).  If the company or institution that employs them will charge a management fee, the said amount must be incorporated in the financial proposal that the individual will submit.  No further changes to reflect additional costs shall be accommodated by UNCDF at the point of awarding the LTA.

Please include all documents into one file while submitting your application.

References
UNDP’s Individual Consultant’s General Terms and Conditions are provided here:
http://www.undp.org/content/dam/undp/documents/procurement/documents/IC%20-%20General%20Conditions.pdf

Copyright

All products and reports related to the mission will be provided to UNCDF and be subject to associated copyrights. The contractor will not use, without prior permission of UNCDF, any the materials or data produced during the mission for any other purpose than furnishing UNCDF with a project delivery. Any use or reference to the information contained within the presented mission documents must be prior clarified and approved by UNCDF and clearly reference UNCDF as the source.