Background

The objective of this Project is to accelerate implementation of energy efficiency measures in public buildings in Ukraine through the ESCO modality, utilizing EPC contracts, by leveraging over significant private sector investment over its five-year implementation period as well as by introducing a Nationwide Energy Management Information Systems (EMIS) for Ukraine.

In recent years there has been an increased interest in the provision of energy services to achieve energy and environmental goals. In particular, some new companies providing energy services to final energy users, including the supply and installations of energy efficient equipment and/or the building refurbishment. These companies, defined as Energy Service Companies (ESCOs), differ from the traditional energy consultants or equipment suppliers as they can also finance or arrange financing for the operation and their remuneration is directly tied to the energy savings achieved.

The Project considers ESCOs as important agents to promote energy efficiency improvements in public buildings. Though lately ESCO modality in municipal public sector demonstrated rapid growth by number of tenders announced, ESCO market in Ukraine is in development stage as actual number of ESCO contracts signed is far from potential and the amount of financing attracted is even less so.

Numerous barriers still hamper ESCO market development in Ukraine. In particular, introduction of ESCO mechanism in public sector still needs legal improvements, and implementation of thermo-modernization in budgetary institutions with the attraction of credit resources is still an issue. At the same time, high investment risks and cost of capital limits ESCO-funded measures to few measures with high return rate. This dictates a necessity to look for new approaches and models to insure effectiveness and sustainability of ESCO modality in the country.

The UNDP Project that started from 2017 has implemented and facilitated at least 59 pilot projects using energy performance contract (EPC) modality in selected public buildings in 10 municipalities to demonstrate the energy and cost-saving potential of energy efficiency measures. Some legislative initiatives aimed at improvement of business environment for ESCO modality has been developed and adopted, new business models and financial instruments has been field - tested.

Before the second and final half of this Project there is a need to evaluate the progress achieved in order to determine what is the current situation and what needs to be undertaken in order to identify and to remove the remaining barriers for ESCO market development in Ukraine; to contribute to updating ESCO-related legislation and regulations, and to promote the importance of ESCO modality in increasing energy efficiency in public buildings among municipalities, local and national government.

To this end UNDP is seeking for the experienced expert in the field of ESCO market development who will duly fulfil the assignment.

The consultant will promote UNDP’s mandate as a gender-responsive organization with zero tolerance to any kind of discriminatory and abusive behaviour, including sexual harassment, sexual exploitation and abuse

Duties and Responsibilities

Objectives of the assignment

The main objective of the assignment is to provide high-level expertise to support the Project :

• conduct a situational analysis of the ESCO market development in Ukraine,

• facilitate the assessment of effectiveness of cooperation with different municipalities and initiated pilot projects and
• provide with the recommendations on possible ways to remove the remained barriers before further ESCO market development in Ukraine.

Duties and Responsibilities

Under the overall supervision of the Project Manager and the Chief Technical Advisor guidance, the selected Consultant on ESCO market development assessment will perform the following tasks:

1. Review:
   1. the current status of EPC pilot projects initiated by EEPB project in Ukraine, , including in particular:
      1. volume of money and energy saved;
      2. Investment volume;
      3. number of buildings with energy efficiency measure implemented;
      4. experience with the implementation of EPC contracts, in particular relating to barriers;
      5. number of beneficiaries of energy – efficiency improvements;
   2. the effectiveness of the audits conducted by the Project and provide recommendation and whether additional audits are needed regarding the achievement of the Project’s goals;
   3. in cooperation with Expert on energy efficiency financing the performance of the Project financial support mechanisms (FSM) and advise on the applicability of this model in the future;
   4. current EPC contract trading model in Ukraine and provide recommendations on improvements
   5. the current status and results of EPC pilot projects initiated within the Enhanced partnership model which envisages in-kind investments in energy efficiency from municipal buildings owners;
   6. the risks associated with the Project implementation and support their mitigation
   7. including gender analysis, of the surveys’ results on pilot projects;
   8. in cooperation with State Agency for Energy-Efficiency (SAEE), conduct an overview of the current status of legislation regarding ESCO market, provide recommendations on improvements;
2. Collect existing information (filled in questionnaire forms and surveys previously distributed among Project stakeholders), and organise additional surveys if needed;
3. Support the Project team in:
   1. The design of new pilot project’s monitoring system, ensuring that it highlights gender-related elements (sex-disaggregated data, gender equality indicators, gender impact evaluations);
   2. The liaison with representatives of partner municipalities to ensure the timely and reliable provision of data related to survey(s);
4. Facilitate:
   1. continuous dialogue with the Government, partner municipalities and ESCO associations; liaise with national stakeholders, including the SAEE, Ministry of Ecology and Natural Resources of Ukraine, Verkhovna Rada of Ukraine and other identified partners; organising meetings, events and consultations with the stakeholders of the Project, when needed;
5. The consultant will also
   1. Speak out for gender equality and women’s empowerment on public platforms; set up and participate only in gender balanced panels;
   2. As far as is possible all data gathered is disaggregated by sex, age and other markers of identity;
   3. Act as a knowledge based advisory service provider for establishment and maintenance of relationship with central and local national authorities, banking sector, non-governmental organizations, associations and international organizations;
   4. Undertake other duties that contribute to the effective implementation of the Project upon request.

Deliverables

1. Report on analysis of ESCO pilot projects (including those initiated using FSM ESCO factoring mechanism)– by June 15, 2021, covering items 1. 1.-7.;
2. Report on assessment of current status of ESCO-related legislation, by June 15, 2021 covering item 1.8.;
3. Final report containing recommendations on possible ways to remove the identified barriers to enable further ESCO market development in Ukraine– by June 28, 2021.

Management arrangements

The consultant will be responsible for the achieving of the objectives of the assignment. The Consultant will report to the Project Manager and will work closely with representatives of Ukrainian municipalities.

Consultant will be responsible for all personal administrative expenses associated with the assignment, which include printing costs, stationary, telephone and electronic communication.

Monitoring requirements / Terms of payment

Payment under this contract is to be made after acceptance of working plans and services delivered by the Consultant upon submission of an output report, other deliverables and an invoice indicating exact number of workdays and description of tasks performed.

The documents should be submitted in electronic or paper form in English or Ukrainian and should be developed in line with the UNDP principles of gender-responsive communications.

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;

•    Treats all people fairly without favouritism;

•    Fulfils all obligations to gender equality and zero tolerance for any sexual misconduct.

Required Skills and Experience

Education:

• Advanced university degree (at least Specialist/Master) in engineering, law, economics, marketing, public administration or other relevant field;

Expirience:

• Proven experience with the ESCO business model in the public sector of Ukraine and EPC contracts is a must. At least 3 years of direct experience in the field of ESCO (or other mechanisms to finance energy efficiency) is required.
• At least 5 years of relevant experience in professional/managerial/advisory services or expert work for the government, commercial or multilateral organization(s) related to energy and/or investments.
• Experience in energy/utility law and regulation field (a minimum of 2 years of working experience related to energy law development and/or enforcement).
• Prior experience in or advisory services to international organizations is an asset.
• Proven reports and/or publications record related to energy legislation, energy efficiency initiatives/projects, investments in EE sector or ESCO market development (at least 5 relevant publications).
• Understanding of the key issues faced by organization involved in energy and utilities sector in Ukraine, the political and regulatory background, the energy efficiency market gaps and opportunities.
• Excellent analytical, advisory, communication and writing skills.

Language Proficiency:

• Fluency in writing/speaking Ukrainian and Russian;
• Working level English.

Documents to be included when submitting the proposal

Applicants shall submit the following documents:

• Letter of interest/proposal;
• CV/P-11 including information about past experience in similar projects / assignments and contact details for referees;
• Financial proposal;
• Examples of reports/studies related to energy development, energy efficiency and environment.

Financial proposal

Lump-Sum based on Delivery of Outputs

The financial proposal shall specify a lump sum amount. In order to assist the requesting unit in the comparison of financial proposals, the financial proposal will include a breakdown of this daily fee based amount and number of anticipated working days.

Travel costs

Travel within Ukraine (if needed to deliver expected results) will be paid in addition to this payment for service in accordance with the UNDP rules and procedures. Consultations regarding travel options will be held with the Project Manager prior to planning of the trips and relevant logistics.

In the case of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and the Contractor, prior to travel and will be reimbursed. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the Contractor wish to travel on a higher class he/she should do so using their own resources.

Evaluation criteria

The following criteria will be rated as indicated below:

• Advanced university degree (8 points max): PhD – 8 points; Masters/Specialist – 6 points.
• Proven experience with the ESCO business model in the public sector of Ukraine and EPC contracts is a must. At least 3 years of direct experience in the field of ESCO (or other mechanisms to finance energy efficiency) (20 points max): 5 years – 15 points, 5-7 years -18 points, 7 and more – 20 points
• At least 5 years of relevant experience in professional/managerial/advisory services or expert work for the government, commercial or multilateral organization(s) related to energy and/or investments (170 points max): 5 years – 12 points, 5-7 years -14 points, 7 and more – 17 points.
• A minimum of 2 years of working experience related to energy law development and/or enforcement (12 points max): 2 years – 8 points, 3-5 years -10 points, over 5 years – 12 points.
• s.
• Prior experience or advisory services to international organizations (3 points max) – 3 points;
• Proven reports and/or publications record related to energy legislation, energy efficiency initiatives/projects, investments in EE sector or ESCO market development (7 points max): 2 publications – 5 points, more than 2            publications – 7 points;
• Language skills (excellent written and spoken Russian and Ukrainian. Working level of English (3 points max): 3 points for fluent Ukrainian/Russian + English).

Maximum available technical score - 70 points.

Evaluation method

Cumulative analysis

Contract award shall be made to the incumbent whose offer has been evaluated and determined as:

A) responsive/compliant/acceptable, and

B) having received the cumulative 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%

Only candidates obtaining a minimum 70% from the maximum available technical score would be considered for the Financial Evaluation.

The maximum number of points assigned to the financial proposal is allocated to the lowest price proposal and will equal to 30. All other price proposals will be evaluated and assigned points, as per below formula:

30 points [max points available for financial part] x [lowest of all evaluated offered prices among responsive offers] / [evaluated price].

The proposal obtaining the overall cumulatively highest score after adding the score of the technical proposal and the financial proposal will be considered as the most compliant offer and will be awarded a contract.