MOZAMBIQUE

MOZAMBIQUE REGIONAL TRANSMISSION DEVELOPMENT PROJECT

Consulting services to undertake Strategic Regional Environmental andSocial Assessment (SRESA) for Investments

 Project ID: 05/EIB/CESUL/2009

EIB Technical Assistance / TA2009037 MZ ITF

REQUEST FOR EXPRESSIONS OF INTEREST

The Government of Mozambique (GoM) has applied for funds from the European Union (EU)-Africa Infrastructure Trust Fund, for which the European Investment Bank (EIB) shall act as agent, towards the cost of the preparation of a Strategic Regional Environmental and Social Assessment (SRESA) related to the MOZAMBIQUE REGIONAL TRANSMISSION DEVELOPMENT PROJECT to set guidelines for investments in Tete Province, areas of influence and associated projects. Various candidate funding institutions for the CESUL Transmission project have been identified, with the largest multilateral financial institution, the World Bank, as a probable lead partner. Other bilateraland regional development partners such as NORAD (Kingdom of Norway), SIDA (Swedish International Development Agency), AfDB (African Development Bank), EIB (European Investment Bank), DBSA (Development Bank of South Africa), AFD (France Development Agency), KFW (Kreditanstalt furWiederaufbau) have also shown interest in funding the project.

In Tete province there are two large new hydro power generation projects currently in various stages of development, together with plans toconstruct the CESUL Transmission system to evacuate the electricity to markets in Mozambique and SAPP. In addition, two large coal mines are currently under development by Companhia do Vale de Rio Doce (Brasil) and Riversdale (Australia), in, respectively, the Moatize and Benga areas close to Tete city. The mines are being developed based on the planned export of high-grade coking coal.  Options for the transport of the export product include the Sena railway Line, presently under rehabilitation, or via river transport along the Zambezi River for which the feasibility still has to be further assessed, or via a new railway to be constructed/upgraded from Moatizethrough Malawi to Nacala. There would be a need for new or upgrading of the Beira and/or Nacala Ports to accommodate the coal.  Further there are already about 130 coal exploration concessions in Tete Province, and in addition to Vale and Riversdale, there are several other mining companies planning to become active in the area.

The planned Power Transmission System (CESUL System) will extend fromTete to Maputo, and is expected to connect the Mozambique central andsouth electricity grids, and in the process to improve the reliability of affordable electricity in the urban centres along the route, including Maputo.  It is anticipated that several large-scale industrial or commercial activities could materialize along the CESUL line route, based on improved access to a competitive, reliable source of electricity supply.

While the coal mining, river, rail and port activities are independent of the power infrastructure (in the sense that the mining and transport investments will go ahead even without the proposed power generation and transmission developments) all these activities will have environmental and social implications in Tete which will be concurrent withthe impacts from the CESUL Transmission Backbone and related generation projects.  There would be a significant cumulative impact on the province, for example in terms of air, water and soil pollution with possible impacts on human health. There will be implications for the control of the flow of the Zambezi River as new hydropower developments come on line, facilitated by the proposed CESUL transmission project. There will be a need for resettlement, particularly associated with the mining concession, and the construction of new settlements and towns. Other new industries could be expected to evolve in the Tete area to take advantage of the new opportunities.  Similarly, the CESUL transmission system bringing an improved supplyof electricity through much of the centre and south of Mozambique, and the resulting industrial and commercial growth, could also lead to significant cumulative environmental and social impacts.

Individual project level ESIA and RPF/RAP will examine in detail the project-related impacts and proposed measures to avoid or mitigate negative impacts. In addition to the project-specific assessments, a SRESA is needed with respect to the proposed power transmission line, power generation plants, and other major new developments (e.g. industrial, mining, tourism, transport) that would be concurrent with, or stimulated by the power projects in Tete and along the transmission line. The SRESA would result in an overall framework to maximize the benefits and minimize the environmental and social risks associated with rapid development in the area of influence of the CESUL Transmission System and related generation projects.

The SRESA study will provide an over-arching assessment of indirect, induced and cumulative environmental and social impacts of existing projects, projects under construction and planned projects in Tete, related transportation routes, areas of influence and associated projects. The SRESA will take into account all relevant documentation, such as the project specific ESIAs, RAPs and all other Socio-economic Baseline Studies for the coal mines, the thermo power plants in Tete Province and the planned gas thermo power plant in Ressano Garcia, the detailed ESIA and RAP for the Mphanda Nkuwa Hydropower Plant, the MOZAL ESIAand RAP, the Sasol Gas Pipeline ESIA, RAP and RESA, etc.  Where appropriate, the study will incorporate findings from detailedwork carried out under other studies, rather than repeating work which have recently been completed.

At the end of the SRESA Study, the consultant will prepare (i) Draft Strategic Regional Environmental and Social Assessment (SRESA), (ii) Draft Strategic Regional Environmental and Social Framework (SRESF), and Draft Institutional Capacity Assessment and Capacity Building Program both in English and Portuguese with both a Portuguese and English Executive Summary for comments before issuing the Final Versions. Final versions of the reports will be issued after incorporating thecomments of the EDM, MICOA, EIB and the IDA.

The SRESA will follow the principles and Standards stated in:

-"EIB Statement of environmental and Social Principles and Standards(2009)"

-"EIB Environmental and Social Practices Handbook (2007)"

-"Source Book on EU Environmental Law (2008)"

-World BANK Environmental Guidelines and Safeguard measures

The SRESA report will be disclosed in the project areas and in Maputo. Especially the Executive Summary will need to be widely made available. The availability of the SRESA for comments will need to be widely disseminated

Interested consultants are requested to take note of the following:

The Electricidade de Moçambique now invites eligible consultants to Express Interest. The process is open to firms and voluntarily-formed joint ventures.

The Procurement process will be in accordance with EIB's 'Guide to Procurement'. Interested  contractors are required to submit applications in English language with the following specific information:

a) name of firm(s) including joint venture partners. In case of a joint venture, a
statement to identify the lead company should be included as well as the name(s) and position of authorised representatives;

b) Audited annual turnover of the last 3 years  (it must exceed EUR 700,000)

c) Track record in the fields of Environment and Social impact assessments, master planning, feasibility studies and related services carried out in past five years  in SADC countries and Internationally.

d) Proven capacities to provide backstopping and specialist advice inthe fields of environmental and social planning and management hydrology and mining.

e) Permanent staff working in the environmental and social impact assessment and the company capacity to recruit short-term high qualified experts in related areas.

f) information regarding any current litigation  involving the  firm or any of its/their joint venture partners;

g) a declaration of undertaking according to Annex 3 "Covenant of integrity" of "EIB's Guide to Procurement (2004)".

The pre-qualification bids complying with formal and financial performance requirements will be  short listed and will receive the request for proposal subject to the funding decision of  the  Africa Infrastructure Trust Fund:

The overall budget for this technical assistance is provisionally setat EUR 700,000.

The provisional start date of the contract is 1 March 2010, and the contract duration is expected to be 12 months.

Expression of Interest must be submitted in three copies (one original and two copies) in a sealed envelope on or before 23 November, 2009,at 12:00h, local time, and be clearly marked Expression of Interest for: "Consultancy Services for MOZAMBIQUE REGIONAL TRANSMISSION DEVELOPMENT PROJECT - Strategic Regional Environmental and Social Assessment (SRESA) in Mozambique.

The address referred to above is:

             Electricidade de Moçambique E.P.

             Direcção de Electrificação e Projectos

             Av. Filipe Samuel Magaia, 368

             Cx. Postal 2532, Maputo, Moçambique

             Telefone:  +258-21-353632

             Fax.:        +258-21-322074

             E-mail: jcatine@edm.co.mz and jmarrime@edm.co.mz

The final funding decision of the Executive Committee of the EuropeanUnion (EU)-Africa Infrastructure Trust Fund is expected for November 2009.

A copy or each Expression of Interest must also be sent to the following address:

- Mr Stefan Kerpen, European Investment Bank, OpsB / DEAS / TechnicalAssistance Unit, 100 boulevard Konrad Adenauer, L-2950 Luxembourg