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Subotica water upgrade project- feasibility study

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Procurement ref: 35511
Country: Serbia
Sector: Municipal and environmental infrastructure, Water and Sewage
Funding sources: Austrian Fund for Municipal Infrastructure
Contract type: Consultancy Services
Notice type: Invitations for expressions of interest (CSU)
Issue date: 04 Jan 2012
Closing date: 25 Jan 2012, London

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Assignment Description: The City of Subotica (the City) and the Public Utility Company Waterworks and Sewerage Subotica (the Company) have identified a three-year investment plan in order to address the problems of insufficient water supply and sewage coverage in the area. The EBRD has provided a loan for a communal wastewater treatment plant (WWTP) in Subotica, with the total investment costs of EUR 17.5 million (the Project). The plant, which is operated by the Company and has a capacity of between 36,000 and 72,000 m cubed per day, is expected to become fully operational in 2012. According to the latest analysis, the amount of received wastewater is reduced to below 18,000 m cubed per day during the summer, which causes major problems in the management of the facility due to the high concentration of organic wastewater. This problem will be resolved with the extension of the primary and secondary sewage network and, thus, higher inflows of wastewater to be treated. At present, only 40 per cent of the residents in Subotica are covered by the sewerage system. The remaining citizens are using septic tanks, which can be found in the city centre area as well. In addition, the lack of new collectors results in overloading of the existing collectors, which further causes frequent instances of wastewater outflows in the streets.

The inadequate sewage collection and treatment leads to environmental hazards related to, among other things, wastewater outflows and contamination of the groundwater from the septic tanks. As the investments related to wastewater discharges generate revenue (fees for the sewage connection), the City and the Company will be able to finance the sewage network extension mainly from their own sources. However, as a prerequisite for the further sewage extension, the City must first construct the necessary collectors, for which they have requested financing from the EBRD alongside grant co-financing from international donors. Based on the proposed investment plan, the Bank is now seeking a consultant to prepare a feasibility study that will present an affordable least cost bankable investment programme to be supported by the loan and grant investment funding (the Assignment).

The key specific objectives of this feasibility study are to:
” Define a bankable project to improve water supply and wastewater services in the City and its surroundings;
” Develop affordable least cost and cost effective investment programmes in the water and wastewater infrastructure according to best applicable technology and with strong environmental and social benefits;
” Review the existing studies and any technical design documents that have been prepared so that these can be used by relevant financiers to assess the Project and justify their involvement;
” Review the existing studies and any technical design documents that have been prepared so that these can be used by relevant consultant, constructors, and other involved parties as part of the Project implementation;
” Prepare financial analysis and financial model demonstrating the capacity of the Company to absorb and service the loan under the proposed structure;
” Identify the best practice in the utility sector in the EU with regards to introducing incentive-based contracts and tailor the draft contract for the Subotica public utilities;
” Prepare initial technical design documents for the least-cost solution with the most positive environmental impact, taking into consideration that the constructed WWTP and other Project components should be EU compliant;
” Prepare terms of reference for a Project Implementation Support Consultant and a Project Engineer.

Assignment Start Date and Duration: The Bank is working to a tight timetable to prepare this Project. Consultant mobilisation for the Assignment must be in the first week of February 2012 and consultants should keep this requirement in mind when considering expressing interest. The overall duration of the Assignment will be 5 weeks and will require concentrated effort from the Consultant over that period to achieve the full scope of the Assignment.

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Maximum Budget available for the Assignment: EUR 196,200; Exclusive of VAT.
The consultant must determine whether any VAT would be chargeable on the services and the basis for that determination, without taking into consideration the Bank’s special status as an IFI and state this to the Bank in their response to the Invitation for Expressions of Interest. To the extent that a consultant incurs input VAT on goods and services purchased in connection with the provision of services (e.g. VAT on airline ticket) which is not otherwise recoverable by the consultant from the local tax authority, the gross cost to the consultant of such expenses shall be treated as a reimbursable expense.

Funding Source: Austrian TC Fund for Municipal Infrastructure

Eligibility: Consultancy firms shall be entities registered in Austria and all experts proposed by the entity to work on the Assignment must be either Austrian nationals or permanent residents of Austria. However, up to a maximum of 25% of the maximum contract amount may be used to finance services of local experts who are nationals of Serbia or consultancy firms registered in Serbia.

Consultant Profile: Corporate services are required. The Consultant shall be a firm or consortium of firms with substantive experience and expertise in water supply and treatment, engineering and environmental issues, as well as relevant experience in the Western Balkan region. It is envisaged that the following multi-disciplinary expertise will be needed for the purposes of this Assignment:

” Team Leader with a comprehensive experience in similar assignments in the region and countries with climatic conditions similar to Subotica and in working with IFIs;
” Technical specialists and engineers in water treatment/water quality, water supply and sewerage networks, wastewater treatment and sludge management;
” Financial analyst with experience of due diligence of Serbian (or similar) companies;
” Legal, procurement and institutional experts with experience in producing incentive-based contracts, ideally for the public companies.

It is recommended that a part of the consultancy input will be carried out by local sub-consultants.

Submission Requirements: Interested firms are hereby invited to submit expressions of interest.
In order to determine the capability and experience of consulting firms seeking to be shortlisted, the information submitted should include the following:
– company profile, organisation and staffing;
– details of experience or similar assignments undertaken in the previous five years, including their locations;
– CVs of staff who could be available to work on the Assignment;
– a copy of the Consultant’s valid company registration certificate confirming that the firm is registered in Austria.

The above information should not exceed 20 pages excluding CVs.

Expressions of Interest shall be submitted, in English, electronically through e-Selection, to reach the Bank not later than Wednesday, 25 January 2012 at 17:00GMT . Do not send expressions of interest to the EBRD’s contact person.

The expression of interest must be accompanied by a 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

EBRD Contact:
Olesya Kerridge
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 6895, Fax: +44 20 7338 7451
e-mail: KerridgO@ebrd.com

Source EBRD

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