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Tender: Framework for Municipal Services Sector Project Preparation in Advanced Transition Countries

Slovakia, 19 October 2015


While private sector and public private partnerships remain the preferred route of engagement, working with the public sector is still an option. However, the preparation, implementation and monitoring of municipal infrastructure investments is a labour intensive endeavour in the Advanced Transition Countries. A lack of financing is not the only challenge with EU Structural Funds available and banks willing to lend. Instead it is the borrowing capacity of the municipalities and the ability to draw down funds available.

The Bank intends to select two consultants and enter into Framework Agreements with them (the "Framework Consultant" or the "Consultant") to enable the Bank to call upon a shortlist of pre-qualified firms from which it can prominently and efficiently obtain reliable services. The Framework Agreement will establish, in advance, fee rates for experts, contract terms and conditions, and procedures that will govern the Specific Assignments that are required to implement the Programme. Under these Framework Agreements, the Bank will have the option, but not the obligation, to place individual Assignments with the selected Framework Consultants.

Description of Specific Assignments

The overall objective of any Specific Assignment is to prepare a Feasibility Study for the Company and/or the City which the Bank can use to appraise the Project and take a decision on the prospective financing.

The key objective of a Feasibility Study would normally be:

  • to prepare a comprehensive Feasibility Study which can be used by the European Bank and co-financiers to assess the Project and justify involvement;

  • to develop an affordable, least cost strategic investment programme in a long-term perspective (15-20 years) according to best applicable technology;

  • to identify and assess a detailed PIP, suitable for a Project to be partially financed by the IFI(s) loan, including its technical feasibility and justification of its high priority in terms of internal rate of return;

  • to define a bankable Project and identify probable sources and uses of funds, assuming the proposed loan in the amount provided in the Call-off;

  • to calculate the Bank's standard measuring indicators and SRI impact indicators;

  • once the Project/PIP has been confirmed, to screen the Project against the European Bank's Environmental and Social Policy (2014, ESP) and associated Performance Requirements (PRs) to propose, and agree with the European Bank, the project category (A or B) and confirm the environmental and social due diligence required;

  • if the Project is categorised as B (once agreed with the European Bank), to carry out the Environmental and Social Assessment (E& Due Diligence – ESDD) of the proposed project to identify its environmental and social risks, impacts and benefits and to structure the Project to comply with the Bank's Environmental and Social Policy ("ESP") and Procurement Policies and Rules ("PRs"). If the Project is categorised as A, this terms of reference will be revised by the European Bank;

  • to prepare an affordability analysis of various consumer groups including the analysis of existing social support mechanism to ensure the sustainability and affordability of the Project; in this respect, the Study should clearly assess the impact on affordability of demand-side energy efficiency projects compared to optimisations on the supply side;

  • prepare financial analysis of the Company and financial projections; the projections shall be fully consistent with the strategic development plan and be based on prudent assumptions on Company revenues and expenditures. Financial projections shall include annual balance sheets, income, cash flow statements and usual sensitivity analysis;

  • to prepare a municipal credit analysis of the relevant city budget;

  • to propose an appropriate fare/tariff system based on partial or full cost recovery as targets, and interim solutions if necessary;

  • to prepare a Procurement and Implementation Strategy including detailed plans for the contracting, financing and implementation of the Project;

  • to outline an institutional framework for provision of the relevant services in the City, including principles for a new or revised Service Agreement between the City and the Company covering service standards, responsibilities of the City and the Company, rights and obligations of the Customers, etc.;

  • to determine an efficient implementation strategy for the Project, taking into consideration procurement requirements of the European Bank and co-financer and local law;

  • to identify key cost restructuring elements (e.g. labour restructuring, energy cost savings, maintenance per unit of output targets, etc.) and recommend reasonable loan covenants and implementation timing in this area;

  • to the extent possible, the FS should take into account the potential impacts of climate change on the project in order to build in resilience to climate change related risks.


Submission Deadline: 5 November 2015

Also view the ECN Procurement Notice (accessible by ECN Executive Members - Login to View)

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