EBRD is considering providing assistance in preparation and financing of the urban road sector to the City of Buzau

Autor: Bancherul.ro
2011-09-25 10:23

The European Bank for Reconstruction and Development (“EBRD” or the “Bank”) is currently considering providing assistance in preparation and financing of the urban road sector to the City of Buzau (the “City”), said the bank.

Having successfully out-sourced the public lighting system under a 10 year energy service company (“ESCO”) contract to a private contractor, the City has approached the Bank seeking support to out-source road rehabilitation and maintenance under a long-term Public-Private-Partnership (“PPP”) contract to be awarded to a private road contractor (the “Contractor”). The Bank would help the City to establish a tender process acceptable to the Bank to allow future financing, structure an efficient PPP contract based on the concept of a regular ‘unitary payment’ to be paid by the City for having rehabilitated and maintained the road network under contract to a pre-determined level of service quality. Subject to the results of the future tender process and compliance with Bank’s Policy document in respect of financing private parties to a concession the Bank will offer the financing to the winning bidder.

The City has prepared a detailed feasibility study of the road works reviewed by the Bank. The road PPP contract to be tendered will, in principle, include three segments: (a) 9 km of high-volume roads where full rehabilitation and pedestrian pavements are needed – these are the main corridors along the City’s main commercial avenues; (b) 20 km of roads mixed by traffic volume, where only surface layer renewal and pedestrian pavements are needed; and (c) 17 km of low-volume residential roads with no existing pavement, and both streets and pedestrian ways need to be paved. The road PPP contract will also include winter maintenance activities. All other road activities, such as street lighting, landscaping, storm-water drainage maintenance, and signage of all kinds, will be left to existing entities. This fact will simplify the contractual process of the performance-based contract.

Depending on the results of the tender, the Bank will provide a senior loan of up to EUR 30 million (or RON equivalent) to the winner of an open international tender to rehabilitate and maintain 46 km of roads and pedestrian pavements on a performance basis in the City for approximately 12 years. The Bank’s loan will be based on a long-term performance-based Design-Build-Finance-Operate (“DBFO”) type contract. The Project will improve journey times, road and pavement conditions for commuters, road and pedestrian safety, and reduce overall costs of maintaining the road network. The Project will also extend the City experience with long-term ‘availability payment’ (i.e. the ‘unitary’ payment) based contracts and will allow for more efficient use of public finances.

The proposed transaction will be developed under the Urban Road Management and Rehabilitation Framework as it is a part of the Bank's systematic approach to rolling out performance-based management and maintenance of roads (road PPP) contracting in Romania. It will be however the first project to be structured for financing directly with the private sector contractor as a PPP.

The project benefits from initial preparatory work carried out by a Bank-appointed PMMR expert, who has prepared the tender strategy and draft tender documentation (“TD”) for this project. The Consultant selected here will receive the full documentation and report prepared previously, and should treat this draft TD as the starting point upon which to create the final TD and all subsequent detail.

Objective of the Assignment

The main objective of the assignment is for the Consultant to enable the City to successfully tender out the rehabilitation and maintenance of the 46km road network as a PPP. This will be achieved by preparing a tender strategy and full tender documentation, while also assisting with related institutional building for out-sourced road contracting at the City level.

In order to achieve the abovementioned benefits, the City seeks to employ a qualified consulting engineering firm with experience in the successful implementation of urban road projects, and performance or output-based contracting arrangements in the urban road sector.

In particular, the Consultant shall mainly provide consulting services and assistance to the City as follows:

(1) Tender Strategy for the Urban Road PPP: (i) review the tender strategy previously prepared for this road PPP to ensure that it meets all needs of the City to have an upgraded, high-quality road network which is then maintained sufficiently according to technical quality standards as determined at the time of tender; (ii) the review of the Strategy should be discussed in detail with both the City and the Bank; and (iii) the tender will call for financing to be made to the winning private sector road contractor.

(2) Tender Preparation and Tender Process Support: (i) building on the draft TDs developed previously and delivered to the Consultant at the beginning of the consultancy, the Consultant should draft all final tender documents (“TDs”), including any possible pre-qualification documents: (ii) design into the TDs any Performance and the Advance Payment securities to be provided by the Contractor, including their source, are acceptable and ensure that the Performance Security does not expire until all obligations are completed; (iii) the Consultant should help the City to strengthen the City’s ability to launch a successful road PPP tender process, that will satisfy the Bank’s Policy requirement to financing private parties to a concession. This should include inter-alia: pre-tender meetings as mentioned above; tender publication; pre-qualification definition; tender proposal evaluation and negotiation with the preferred bidder; and (iv) issue any notices for commencement that may be required.

(3) Road PPP Contract Monitoring and Training Support: the Consultant is expected to accompany and support the City’s Transport Department with the tender process, selection and contract negotiation of the PPP contract.

Status of Selection Process: Interested firms or group of firms are hereby invited to submit expressions of interest.

Assignment Start Date and Duration: The Assignment is expected to start in January 2012 and has an estimated overall duration of 9 months.

Maximum Budget available for the Assignment: EUR 350,000 (exclusive of VAT).

The Consultant must determine whether any indirect taxes/VAT are chargeable on the proposed services and state the basis for such. If any indirect taxes/VAT are payable, the Client will have to pay indirect taxes/VAT element to the services directly to the Consultant unless otherwise agreed.

Funding Source: EBRD Shareholder Special Fund

Eligibility: There are no eligibility restrictions.

Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with extensive (no less than 7 years) regional experience on services by the International Federation of Consulting Engineers (“FIDIC”) and at least 3 years of experience with performance based work contracts including at least one key expert with documented experience as Engineer or Project Manager on a project involving road PPPs. There will be also supporting staff insuring quality assurance, maintenance and other disciplines. The team should also include engineers with experience in road construction in Romania.

It is expected that the Consultant’s team of key experts will at least consist of:

Project Manager: The candidate shall hold a university degree in civil engineering, be fluent in English, shall have at least 7 years experience of works of similar complexity and should have executed as resident Project Manager at least one project of similar size and nature in the region. The candidate must have documented experience as Engineer or Project Manager on a project involving road PPPs. The candidate shall be able to provide the required training on the job or through formal training to City staff, and must be able to harmonise relations between various key people and institutions involved in the project.

Engineers: shall hold a university degree in civil engineering, be fluent in English, shall have at least 5 years experience of works of similar complexity on at least three projects of similar size and nature in the region. Candidates should have experience in Project Management and administration of FIDIC Conditions of Contract or similar International Conditions. Experience with performance or output based contracting shall be an advantage. Candidates’ practical knowledge of Romanian legislation requirements shall be of advantage for the smooth interfacing with local regulations.

Procurement Expert: The candidate shall have a minimum of 7 years experience in the execution of works contracts based on Internationally recognized conditions of contracts, with at least two contracts having been financed with IFIs. The Consultant should also have solid experience with performance-based road contracting (OPRC/PMMR/Road PPP or similar) on at least two contracts over the past five years. The consultant shall be sufficiently fluent in English and shall have adequate written and spoken communication skills to conduct meetings with the City, the Contractor and the Bank as needed.

Road maintenance expert: The candidate shall hold a university degree, have fluency in English, shall have at least 5 years experience in the projects of a similar nature including setting of service standards. The candidate should have training experience in performance-based maintenance contracts and related activities including the setting up monitoring systems and supervision of monitoring of performance-based contracts, preferably with experience in the region.

Legal Expert: The candidate shall be a licensed and certified lawyer, have fluency in English, shall have at least 5 years experience in projects of a similar nature including concession or concession type contracting. The candidate should have experience ideally in Romania with local contracting rules and frameworks, as well as long-term service contracts in the infrastructure area.

Financial Expert: This expert should have at least 5 years of relevant experience in financial reporting, and a good command of English.

Submission Requirements: In order to determine the capability and experience of Consultants seeking to be shortlisted, the information submitted should include the following:

(a) brief overview of the firm/group of firms including company profile, organisation and staffing;

(b) details of similar experience of firm or group of firms and related assignments undertaken in the previous five years, including information on contract value, contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided, assignment budget, percentage carried out by consultant in case of association of firms or subcontracting, main activities, objectives;

(c) CVs of key experts who could carry out the Assignment detailing qualifications, experience in similar assignments, particularly assignments undertaken in the previous five years, including information on contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided, assignment budget, main activities, objectives.

(d) Completed Contact Sheet, the template for which is available from the following web-link:

http://www.ebrd.com/pages/workingwithus/procurement/notices/csu/contact_sheet.doc

The expression of interest shall not exceed 25 pages (excluding CVs and contact sheet).

One original and three copies of the expression of interest, in English and Romanian, shall be submitted to the Client in an envelope marked “EXPESSION OF INTEREST for Buzau Urban Road Management - Tender Design and Support for Performance-Based Urban Road PPP for Rehabilitation and Maintenance”, to reach Client not later than the above Closing Date/time. An electronic copy should also be provided.

One further electronic copy by email should be submitted to the EBRD’s contact person by the same due date.

Important Notes:

Following this invitation for expressions of interest, a shortlist of qualified firms will be formally invited to submit proposals. Consultant selection and contracting will be subject to availability of funding.

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