Hiring of Consultancy Services for Transaction Advisors for Public-Private Partnership Projects

1. Background:

The Government of Afghanistan plans to leverage private investment, supplementing public and donor resources, to achieve its development priorities to this effect, the GoIRA has launched a public-private partnership (PPP) program, which is designed to attract private financing for infrastructure and other investment projects. The GoIRA created the Central Partnership Authority (CPA) in August 2016, a General Directorate within the Ministry of Finance (MoF), as the central coordinating actor for PPPs, and retains 25 technical staff. Since its establishment, the CPA helped create the PPP legal framework. The CPA has worked closely with line ministries to build PPP capacity through workshops, develop the upstream PPP pipeline, and provide technical support on downstream PPP transactions that preceded the PPP Law and are now at negotiation stage. In September 2016, the President issued a PPP Law,  which is awaiting ratification by the National Assembly The PPP programs, particularly in FCV contexts , are complex and require a long lead time to ensure an appropriate balance between public investment and PPP projects in a 2011 World Bank-supported study identified gaps in policies/regulations, limited GoIRA institutional capacity to prepare PPP projects, and a weak overall investment climate as the key challenges to development of PPPs in Afghanistan. The World Bank and other donors have been providing technical assistance (TA) to strengthen the PPP legal and policy framework, build institutional and technical capacity, and operationalize the CPA. This TA support will enable the GoIRA to utilize PPPs, where appropriate within the PIM-PPP framework, to meet development needs. Through the proposed project, Public-Private Partnerships and Public Investment Advisory Project (PPIAP), will support improved planning, budgeting, and preparation of development investment projects to ensure strategic prioritization and solid implementation. To this end, the project will enable the GoIRA, through both advisory and capacity development activities for relevant Government stakeholders and the establishment of a suitable mechanism, to assess and prepare a pipeline of feasible public investment and PPP projects for development priorities. It will help maximize funds available for the country’s most pressing development needs. The PPIAP will coordinate the efforts of World Bank Group teams, and other development partners. The Australian Department for Foreign Affairs and Trade has provided co-finance in the IPF  through the Afghanistan Reconstruction Trust Fund (ARTF).  U.K. Department for International Development, U.S. Agency for International Development, and Asian Development Bank may provide TA and viability-gap financing or other support to improve PPP projects’ bankability. The project will also coordinate with the IMF to align direct or indirect contingent liabilities in PPP projects in three components.

1. Strengthening institutional and technical capacity of MoF and other relevant agencies.
2. Establishing the Infrastructure Preparation Facility.
3. Component 3: Project Management.
4.  
2. Objectives

Ministry of Finance (MoF) has already started the process of formulating policies, procedures and programs related to PPP investments. The aim and objective of MoF is to expedite the whole process of identification of suitable PPP projects in consonance with the national and sectorial development plans, conduct and get approval for feasibility studies, conduct procurement of approved projects and implement them on a timely manner, in order to ensure that the infrastructure development is taken up on a fast track mode. In order to achieve this objective of fast tracking PPP projects, Directorate General for PPP would like to appoint the services of consulting firm to develop a pipeline of feasible private and publicly funded projects. Given its fiscal constraints, the GoIRA must maximize funds available for infrastructure and other development priorities. The theory of change is that the capacity building and the TA to streamline the public investment and PPP institutional framework and the undertaking of robust pre-feasibility and feasibility studies that are reviewed by relevant committees in alignment with the national development priorities will support sustainable and strategic investment. Once implemented, both the public and PPP financing pipelines developed with project support will provide solutions for priority investment needs and stimulate private sector development for higher economic growth and better service delivery. Given that a range of important development investments will be covered by private sector financing, the GoIRA will be able to concentrate scarce public resources on other priorities for undertaking the tasks of identification of suitable PPP projects, conduct feasibility studies for the identified projects to obtain the approval of the High Economic Council of Government of Afghanistan, in the following priority sectors:

1. Energy and Power
2. Transport Infrastructure (Aviation, Roads & Highways, Railways etc.)
3. Water and Sanitation
4. Telecommunication
5. Construction related to Public Health, Education, Urban and Rural infrastructure etc.
6. Solid Waste Management
7. Agriculture
3. Scope of Work

The scope of work of this consultancy is to i) conduct feasibility studies for the PPP projects in different sectors, and assist the DIRECTORATE GENERAL FOR PPP in obtaining required approvals. ii) Assist line ministries and DG-PPP in PPP Tender Process and draft bid Documents.  The selected consultant will be expected to implement areas, where a more efficient approach with better time and resource management could contribute and enable the DIRECTORATE GENERAL for PPP to achieve its tight timelines without compromising the quality and content of the deliverables.

The decision to embark on the process of developing the Bid Documents should be done in a responsible manner in line with the relevant prescripts. The process should start as soon as there is a clear indication that the Project could be procured as a PPP.

For details of the services, the ToR is available at www.npa.gov.af

4. National Procurement Authority on behalf of Ministry of Finance (MoF), GoIRA, now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the aforesaid Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services.

The short listing criteria are:

1. The Consultant should be registered legal entity and should have been in business for the last 5 years in providing Consultancy Services of similar assignments. (The consultant is required to provide the Copy of the Certificate of Incorporation issued by relevant authority in country of establishment).
2. The consultant shall demonstrate having sound financial standing by submitting audited financial reports or any other credible financial documents for last three years (2015, 2016and 2017). The consultant Net Worth shall be positive.
3. The consultant should provide proven experience for a minimum of at least one contract with the value of US$ 3,600,000 (Three Million Six Hundred Thousand US Dollar) having executed during any of the last five years of similar nature indicating the duration, value, years of performance, which should showcase the expertise/strength of the consultant for the undertaking such assignments. The Consultant while describing the assignment(s) for similar experience should furnish the following details: 

• Consultant should explain in what way the executed assignment(s) was/were similar in nature to the current assignment.
• The Consultant should explain the exact role played by the Consultant in the assignment if the assignment was carried out in association with other firms as JV or in sub-consultancy for carrying out the assignment.
• Contact detail of the client shall be provided (address, email and phone No.)

4. Consultant having some regional experience is desirable.
5. The requirements for Consultants who intends to associate with other firm(s) in the form of a Joint Venture (JV) or Consortium or a sub-consultancy to enhance their qualifications are indicated as under:
   1. The lead partner is required to be identified clearly and state the composition and nature of their association (JV/ sub-consultant) in their EOI.
   2. In case of JV, the lead partner shall meet 100% of the shortlisting criteria of (a) & (b) and 60% of the experience criteria under (c) above (having executed the assignments with contract value indicated therein) and the JV partner should  meet 100% of the shortlisting criteria (a) & (b) and 40% under (c) above.
   3. In case of Consultant who intends to associate with other firm(s) in the form of a sub-consultancy, the lead partner shall meet the shortlisting criteria of (a), (b) & (c) above.
   4. Eligibility requirements in compliance with paragraphs 3.21, 3.22, & 3.23 of theWorld Bank’s Procurement Regulations for IPF Borrowers, Procurement In investment Projects Financing, Goods, Works, Non-Consulting and Consulting Services November 2017.

The attention of interested Consultants is drawn to paragraph 3.16 and 3.17 of the World Bank’s Procurement Regulations for IPF Borrowers, Procurement In investment Projects Financing, Goods, Works, Non-Consulting and Consulting Services November 2017, setting forth the World Bank’s policy on conflict of interest.  In addition, please refer to the following information on conflict of interest related to this assignment as per paragraph 3.16 and 3.17 of World Bank’s Procurement Regulations for IPF Borrowers available at www.worldbank.org/.

5. Consultants may associate with other firms in the form of a joint venture or a sub-consultancy to enhance their qualifications. If consultants intend to associate with other firms, they are advised to clearly identify the lead partner and state the composition and nature of the association (JV/ sub-consultant) in their EOI. In case the EOI is submitted in form of JV, each partner in the association shall meet the requirements defined in Para.4 (e) above, under the short listing criteria. However, the short listing criteria will not be applied and considered for sub-consultant.
6. A consultant will be selected though Quality and Cost Based Selection (QCBS) in accordance  with the procedures set out in the World Bank’s Procurement Regulations for IPF Borrowers, Procurement in investment Projects Financing, Goods, Works, Non-Consulting and Consulting Services November 2017.
7. Expressions of interest must be delivered in a written form to the address below (in person, by mail, or by e-mail) by 15 December 2018 by 13:00 Hours. (Kabul Local Time). For convenience, the EOIs submitted by the consultants should preferably not exceed 40 pages. Further information in respect to this REOI can be obtained at the address below by email or in person during office hours [08:00-16:00 Hours].

         Attention: Aziz Ahmad Obaidi

         National Procurement Authority

         Administrative Office of the President

         Pashtunestan Wat, Kabul, Afghanistan

Email: aziz.obaidi@aop.gov.af copied to wais.rahimi@aop.gov.af, ahmad.noor@aop.gov.af, n.wahedi@aop.gov.af,   and Bashir.stanikzai@mof.gov.af,  ab.m.zarif@outlook.com;          

                Web site: www.npa.gov.af