Serbia Sabac Parking Garage PPP Project

Procurement ref:33349
Country:Serbia
Sector:Municipal and environmental infrastructure
Project number:
Funding sources:EBRD Shareholder Special Fund

Contract type:Consultancy Services
Notice type:Invitation for expressions of interest (CSU)
 Issue date:20 July 2011
Closing date:17 Aug 2011 17:00:00 Sabac

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PPP Tender Preparation and Tender Process Support

The European Bank for Reconstruction and Development (“EBRD” or the “Bank”) is currently considering to provide a senior loan of up to EUR 4 million to a private party to the concession (the “Company”) selected by the City of Sabac (the “City” or “Sabac”) through tendering procedures acceptable to the Bank to finance, build and operate a parking garage facility in the City. The investment will be used for the construction of up to 270 spaces of underground parking facility in the downtown of Sabac. The selection and contracting procedure is expected to meet the Bank’s policy of “Financing of Private Parties to Concessions” (the “Concession Policy”). This will be the City’s first investment in this sector using a PPP approach, and will provide needed parking supply under an appropriately priced system of hourly automated charging.  Some 150 current street surface parking will be removed as a part of the project, as part of a city centre rejuvenation strategy.

The City, as public sponsor, is therefore seeking to hire under technical assistance a team of parking and PPP legal experts (the “Consultant”) to provide them with a set of tender documents and offer tender process support through to financial close for this PPP concession.  The following describes the tasks to be performed.

The objective of the assignment is to provide the City with the design of a parking tender document and assistance with the tender such that the City is able to attract a good level of competition to the tender before awarding a well-balanced parking concession contract with a private parking concessionaire.

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The tasks to be carried out will involve a mixture of discussions with the City, elaboration of documentation, and dialogue and promotion of the parking tender process. The Consultant will:

1. Review the existing feasibility and engineering design studies prepared by the City;

2. Review cost estimates for the new system and establish an implementation schedule;

3. Prepare an initial estimate of the Internal Rate of Return (“IRR”) for the Sabackih Zrtava Square Parking facility to be used internally by the City, using a basic yet robust financial model to show cost and revenues expected for the garage based on a range of demand levels;

4. Review the City’s parking strategy and parking policy, to ensure that it will allow for the introduction of a private concessionaire in an efficient, barrier free manner, and that it is sufficiently clear in respect of future plans for parking development in the City, both in terms of on-street and off-street parking development;

5. Review the existing performance of Sabac Parking in respect of the enforcement of on-street parking spaces within the paid parking zone within the area of influence surrounding the planned Sabackih Zrtava Square facility to ensure that the proposal for tendering a new off-street underground garage on commercial grounds is viable;

6. Prepare a parking PPP tender design strategy and discuss the approach with both the City and the Bank.  The strategy should cover both parking operations, as well as the proposed shopping retail space called for in the City’s reference design and feasibility studies;

7. Review the proposed parking garage phasing, from tender to construction competition;

8. Prepare a risk register for the concession, to delineate clearly which risks are to be absorbed by the concessionaire, the public sector, or shared.  The risks assignment should flow through the concession tender and contract development, and be customary and acceptable to the private parking industry, as well as the public stakeholders, with the goal being to achieve a balanced approach to the concession tender outcome;

9. Prepare a set of construction cost overrun mitigants, including the need and level of a Performance Bond on the part of the concessionaire, among other items;

10. Once the draft tender strategy is prepared, the Consultant should organise a one-day open pre-tender informational meeting for the parking industry stakeholders.  The purpose of the pre-tender meeting will be to introduce the concept of the parking PPP at hand, the project’s parameters, and the contracting strategy, including the basic tender award scheme discussed above, and the tender and project implementation timeline;

11. Prepare a set of tender documents, draft Concession Contract and help the City select and negotiate successfully the award of the parking concession to a suitable parking operator.  The tender documents should include a set of selection criteria that encourage the maximum number of parking spaces (within a maximum size to be defined within the tender as well), for the shortest period of concession duration, with the least amount of public support required in the form of a one-off capital contribution at the time of construction completion.  While the Consultant will be expected to formulate a specific combination of selection criteria, including the merits of allowing the bidders discretion for setting their own parking charges throughout the concession period, the Bank will offer guidance of workable tender selection criteria for the Consultant to consider;

12. Assist the City with the tender process itself, attend project meetings, assist with tender proposal evaluations, and help the City negotiate the concession contract following the selection of the winning bidder. The Consultant should furthermore ensure that all critical contractual conditions are included as per best practice infrastructure concessioning, such as termination clauses, lender step-in rights, tariff policies for on-street and off-street facilities.

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 September 2011 and has an estimated overall duration of 12 months.

Cost Estimate for the Assignment: EUR 250,000 (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: It is anticipated that the contract will be financed through the EBRD Shareholder Special Fund.

Eligibility: There are no eligibility restrictions, however consultant shortlisting and selection is subject to funding.

Consultant Profile: Corporate services are required.

The Consultant should be a firm or a group of firms with a specialist team including the following expertise:

(1) extensive project experience in the parking industry in Europe and the legal framework in Serbia;

(2) similar project experience in Central-Eastern Europe and the West Balkans;

(3) previous project experience with PPP contracting and risk assessment for both the public and private sectors.

The Consultant’s team should be experienced in parking projects, including specific experience on at least three parking concession projects within the last 5 years, and also well-versed in planning and regulatory approaches in the parking sector. 

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

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

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

1. Parking expert, civil engineering based;

2. Parking expert, economics and/or planning based;

3. Legal experts (2), with specific understanding of the Serbian PPP Law and framework, as well as demonstrated experience with international parking PPP contracts.

(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://new.serbia-business.com/wp-content/uploads/2011/08/contact_sheet.doc

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

 One original and 2 copies of the expression of interest, in English and Serbian shall be submitted to the Client in an envelope marked “EXPESSION OF INTEREST for SABAC PARKING GARAGE PPP PROJECT – PPP TENDER PREPARATION AND TENDER PROCESS SUPPORT”, to reach Client not later than the above closing date.

A further copy should be submitted to the EBRD contact person by email by the same due date.

Important Notes:

1. The selection will normally be made from responses to this notification only. Consultants will not be asked to submit a proposal. The highest-ranked Consultant will be selected from a shortlist and be invited to negotiate the contract, subject to availability of funding

CONTACTS

Mirjana Mecic
Head of the Local Economic Development Office
City of Sabac
Gospodar Jevremenova 6
15000 Sabac
Serbia
Email: mirjana.mecic@sabac.org
Tel: +381 15 346 994
Fax: +381 15 346 800

Vivianne Lewis-Headlam
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
United Kingdom
Tel: + 44 20 7338 6885
Fax: +44 20 7338 7451
E-mail: lewishev@ebrd.com

Source: ebrd.com

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