Background

NOTE: Signed Offeror’s Letter to UNDP Confirming Interest and Availability - http://www.ba.undp.org/content/dam/bosnia_and_herzegovina/docs/Operations/Jobs/Offerors%20Letter%20to%20UNDP%20Confirming%20Interest%20and%20Availability.docx Letter to UNDP Confirming Interest and Availability.docx - to be sent to e-mail ba.shared.hr@undp.org with Subject: Job ID 89763.

Due to a long period of neglect and under-investment, urban infrastructure in BiH, public and residential buildings, energy systems and utilities, waste management, and transport, are now in need of expansion and modernization. From a global environmental standpoint, this situation contributes to a steady increase in greenhouse gases (GHG) emissions, primarily associated with energy use in public facilities. Public facilities are also the largest energy users and GHG emission sources in municipalities in BiH. Modernization, upgrade and expansion of municipal buildings, infrastructure, and services in BiH will improve the quality of urban life and achieve a range of important local and global environmental and sustainable development benefits.

To achieve abovementioned, the “Catalyzing environmental finance for low-carbon urban development” Project (UrbanLED) strives to leverage investment for transformational shift towards low-carbon urban development (LCUD) in Bosnia and Herzegovina thereby promoting safer, cleaner, and healthier cities and reducing urban GHG emissions. To enable this transformational shift, the Project provide technical support towards the implementation of technically and economically feasible low-carbon solutions in key urban sectors and promotes their wider uptake by municipalities and private sector via dedicated financial mechanisms. The Project has been financed by Global Environment Facility (GEF) and is directly implemented by UNDP Bosnia and Herzegovina Country Office.

In Bosnia and Herzegovina, energy efficiency projects have already demonstrated the potential for high financial returns but have not yet reached a stage where these projects are treated equally with other investment projects.

Among the various barriers that energy efficiency projects face, a lack of appropriate financing mechanisms represents an important barrier. Commercial banks in Bosnia and Herzegovina are unfamiliar with the energy efficiency projects and, in most of the cases, reluctant to fund them. Still, large-scale energy efficiency gains for public sector buildings are possible only if sustainable financing mechanisms for energy efficiency are devised.

To achieve sustainable financing, the implementation of the LCUD concept requires the adoption and implementation of certain economic instruments, based on creation of adequate business models. Such business models need to be founded within appropriate public-private partnership arrangements. These arrangements ensure the involvement of responsible public authorities from all governmental levels as well as the private sector (through energy efficiency related SMEs). Market development through active involvement of government as a customer, information provider and policy maker are required for proper introduction and promotion of a concept of energy service companies (ESCOs) in BiH.

This all resulted with the fact that ESCO is still a new concept in Bosnia and Herzegovina which is not properly introduced.

The UrbanLED project provides the support to Republika Srpska for development of ESCO financial mechanism. The local consultants will be responsible for providing technical assistance to the Ministry of spatial planning, civil engineering and ecology of RS and RS Fund for environmental protection and energy efficiency to develop and test ESCO financial mechanism in Republika Srpska. 

Duties and Responsibilities

The Consultants will conduct detailed analysis of all relevant aspects needed for proper introduction of ESCO financial mechanism in Republika Srpska. The findings of these analysis, together with the inputs of other national consultants, will be used as starting point for development of conceptual model of ESCO financial mechanism which will be tested on concrete set of public buildings and minutely developed.

The National consultant will implement these activities under direct supervision of the RS Ministry for spatial planning, civil engineering and ecology, RS Fund for environmental protection and energy efficiency and in close cooperation with other three national consultants engaged for the development of ESCO financial mechanism in RS (economist, legal expert and engineer). To achieve mutual understanding and coordination of activities on development of ESCO financial mechanism in RS, RS Ministry of spatial planning, civil engineering and ecology of RS will establish the Working group on development of ESCO financial mechanism and financing modalities for energy efficiency projects in RS (hereinafter Working group). Engaged national consultant will be member of this working group. International Consultant for the Development of the Financial mechanism and development of regulations on polluter pays principle will act as an advisor for overall process and provide inputs to the Working group members stemming from knowledge and experience on general understanding and characteristics of modalities of ESCO financial mechanism.

The Consultants will be responsible for the following:

• Conduct an analysis of modalities on energy service contracting implemented at international and regional level and RS legislative framework relevant for the introduction of ESCO financial mechanism (public private partnership, budget planning etc.);
• Conduct an analysis of potentials of RS Guarantee Fund, RS Investment-Development bank, RS Fund for environmental protection and energy efficiency and international financing organizations to be involved in the ESCO financial mechanism as risk mitigators;
• Prepare a proposition for amendment of the bylaw documents that defines the roles and activities of RS Investment-Development bank, RS Fund for environmental protection and energy efficiency;
• Conduct an analysis of budget planning process (with reference to relevant legislative frameworks regarding the budget system and budget execution and analysis of planning and execution of budgets especially of the RS Ministry of Education and Culture and budget planning at the level of local self-governments);
• Development of in-detail conceptual model of ESCO financial mechanism in RS including propositions for overcoming the identified barriers (in cooperation with engaged economists with expertise in risk analysis);
• Develop a bookkeeping model for ESCO projects including bookkeeping at private and public partner

Based on the tasks given above, consultant will support the development of tailored-made ESCO financial mechanism for enabling significantly scaling-up of sustainable finance of LCUD investment projects in RS. This should be a consultative process from start to end; with representatives of responsible institutions in RS. The conducted analysis will serve as the basis for creation of relevant legislative and institutional setup needed for proper introduction of ESCO financial mechanism in RS.

National Consultant will work under direct supervision of the Environmental Development Project Manager and under coordination of the representatives of the RS Ministry of spatial planning, civil engineering and ecology, RS Fund for environmental protection and energy efficiency (who will approve and confirm the quality of outputs) to complete all activities specified in this Terms of Reference.

It is envisaged that the level of effort for these tasks will not exceed 55 expert days including potential field visits to relevant institutions across RS, as needed. The assignment will not require presence in the UNDP premises. The assignment will include regular consultation/clarification meetings with the members of the Working group on development of ESCO financial mechanism and financing modalities for energy efficiency projects in RS.

Deliverables/outputs

Competencies

Corporate competencies:

• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
• Treats all people fairly without favoritism;
• Fulfils all obligations to gender sensitivity and zero tolerance for sexual harassment.

Functional competencies:

• Strong interpersonal skills, communication and diplomatic skills, ability to work in a team;
• Openness to change and ability to receive/integrate feedback;
• Ability to work under pressure and stressful situations;
• Strong analytical, reporting and ability to conceptualize and write concisely and clearly;
• Excellent public speaking, presentation and moderation skills.

Required Skills and Experience

Academic Qualifications/Education:

• BSc degree in economics;
• MSc degree in economics and educational background related to analysis of public finance will be considered as an asset.

Experience:

• At least 7 years of experience in conducting public finance analysis (experience in conducting public finance analysis relevant for infrastructure projects would be an asset);
• Proven experience in conducting the analysis of strategic and legislative documents relevant for introduction of financing models in public sector;
• Proven experience with preparation and implementation of public financial instruments;
• Proven experience in data collection and analysis;
• Proven knowledge of local circumstances on identification of needed actions;
• Proven experience in analysis of budget planning both at level of entity and local self-governments;
• Proven experience in analysis of financial reports and provision of advisory services in field of public sector accounting;
• Experience working with multilateral organizations and the UN system preferred.

Languages Requirements:

• Knowledge of local languages and English (excellent writing, editing and communication skills) demonstrated in submitted one-page local and English segment of any relevant study/publication/written document compiled in order to assess language skills.

Longlisting/Shortlisting Criteria

Qualifications as stated in the ToR

Technical Evaluation Criteria

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%

Interested individual consultants must submit the following documents/information to demonstrate their qualifications:

• Personal CV including past experience in similar projects and at least 3 references;
• Proposal:
  • Provide a brief methodology on how they will approach and conduct the work; or sample of previous document/strategy/paper done by the consultant;
  •  Explaining why they are the most suitable for the work;

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.