Lesotho Renewable Energy & Energy Access Project

        

        LESOTHO RENEWABLE ENERGY AND ENERGY ACCESS PROJECT

REQUEST FOR EXPRESSION OF INTEREST

 

 

LREEAP  MASERU, LESOTHO	DATE: 15-February-2021
	REFERENCE: LREEAP/CS-QCS/001/2021

 

 

Dear SIR/MADAM,

 

We kindly request you to submit your expression of Interest for serving as a Project Implementation Unit member for the Lesotho Renewable Energy and Energy Access Project 

 

Expression of Interest may be submitted on or before 15th March 2021 16:00 CAT and via e-mail to the address below:

Department of Energy

P/Bag A91,

Maseru, Lesotho

lreeap.piu@gmail.com

kekeajobo@gmail.com

LREEAP CS-QCS/001/2021

 

 

1.          The Government of Lesotho has received a credit from the International Development Association (IDA) towards the cost of Lesotho Renewable Energy and Energy Access Project (LREEAP) and intends to apply part of the proceeds of this credit to payments under the contract for the Consultants Services to be procured under this project.

 

2.          The Department of Energy Project Implementation Unit of LREEAP now invites eligible Consultancy Firms to indicate their interest in providing the services consultants. Interested firms must provide detailed CVs indicating their qualifications, eligibility, and ability to perform the services. 

 

3.          Selection shall be done in accordance with the Procedures Prescribed in the World bank’s ‘Investment Project Financing Goods, Works, Non-Consulting and consulting services (July 2016) and will follow Consultant Qualification Selection Method, hence submissions shall include the following based on attached TORs: i) Information about the firm, ii). Similar and general experience, iii) Qualification of Proposed personnel. 

 

4.          The Terms of Reference for each position are provided in Annex 1

            

 

 

 

 

Yours faithfully,

 

LREEAP Coordinator

+266 63232373/ 58985123

ANNEX 1

Terms of Reference for the Preparation of Mini-grid Profiles and Bidding Documents for the 

Lesotho Renewable Energy and Energy Access Project

1. Background

The Government of Lesotho (GOL)’s commitment to advance the electrification agenda and the implementation of the Lesotho Energy Policy 2015 – 2025 by supporting the provision of off-grid electricity services through mini-grid deployment as well as grid-based electrification of economic zones to enhance job creation. The Lesotho Energy Policy 2015 – 2025 vision is that “Energy shall be universally accessible and affordable in a sustainable manner, with minimal negative impact on the environment”, and the current policy framework is fundamentally aimed at supporting reliable and affordable energy access to improve the livelihoods of people in Lesotho. It is expected that this will be achieved through the creation of income generating activities that sustain and improve lives by facilitating the provision of affordable electricity services.

GOL has received funding support from the World Bank and Scaling Up Renewable Energy Programme to support the deployment of mini-grids in the country. This assignment is part of the Lesotho Renewable Energy and Electricity Access Project (LREEAP), a $52.9 Million Government project funded by IDA World Bank and Scaling-Up Renewable Energy in Low Income Countries Program (SREP). The objective of the project is to increase access to electricity in rural and peri-urban areas of Lesotho. The project will accelerate electricity access along two dimensions: (i) grid extension to economic development zones in peri-urban areas, and (ii) the deployment of mini-grids to reach rural and remote communities.  

Subcomponent 2B of LREEAP has an allocation of US$14.5 million, and will support the electrification of areas where electricity supply through mini-grids represents the least-cost option from the country perspective, as underpinned by geospatial analysis and the Electrification Masterplan (EMP). The LREEAP intends to engage a consulting firm to carry out the scope of works in these terms of reference to support the achievement of increasing Energy Access as underpinned in the Lesotho Energy Policy.

The Lesotho Electrification Masterplan 2018-2038 has identified 38 potential mini-grid sites, 10 of which are being implemented by the Department of Energy. Up to 30 mini-grid sites will be selected (a) in agreement with the EMP; (b) based on the high-priority areas proposed by the GoL/DoE and LREEAP, and (c) based on the results of geospatial analysis (which has identified a long list of potential sites for development) (Figure 1). 

 

Figure 1. Potential Mini-grid Sites with More Than 100 Customers and Located >15 km from Existing MV Infrastructure

 

 

 

Source: World Bank Analysis.

 

1. The following Objective of the consultancy services

The overall objective of the consultancy is to complete all tasks related to preparation of 16 mini-grid projects (identified under the EMP), identification of 14 additional mini-grids sites using geo-spatial analysis and the design of a tendering scheme for procurement. Specific outputs under this Terms of Reference are described below.

The EMP, identifies two main off-grids solutions as Mini-grids or Standalone solutions: 

1. • IF the EA is part of the already pre-planned mini-grid schemes then a mini-grid solution would be implemented.
   • IF the EA is not part of the already pre-planned mini-grid schemes then a standalone solution would be selected. This involves a Solar Lantern, Solar Kit or SHS. 
2. Outputs

The consulting firm will provide the following outputs for the 30 selected sites:

1. Site Validation and Inception Report- Validate 30 sites pre-selected by EMP and geo-spatial analysis for mini grid development. Where sites are deemed unsuitable, use existing data and geospatial tools to identify alternative sites for inclusion as per the criteria[1] developed within this project:

1. EMP and geospatial plan identify mini-grid as least-cost supply solution for proposed site
2. Minimum distance to existing LEC grid: 5 km
3. Minimum number of building structures (potential customers): 70
4. Anchor customers (Existence of some economic activity: Revenue-generating activities (shops, mills, transformation industries, market centers, industrial/commercial buildings), schools, health centres, public intuitions 

 

1. Feasibility Studies and PPP operational model’s assessment:
   1. PPP operational models - Analyze the options for mini grid that enable private sector investment and/or involvement. A dialogue will need to be initiated on PPP. This dialogue will be initiated and coordinated by the consultant. The consultant will make sure that all views and positions are appropriately considered and solutions are developed that are based on a general consensus amongst all relevant stakeholders (national and local authorities, private sector, mini-grid developers, regulatory authorities, media, rural dwellers).
   2. Field Surveys – Data collection on socio-economic data, energy demand data, energy resource data, and other data required for development of project sites. 
   3. Technical & financial feasibility studies for the 30 mini-grid sites compliant with national / international standards. Propose a comprehensive mini-grid roll-out plan to enable the implementation of 30 mini-grid projects.
   4. Social-economic cost-benefit analysis assessing the wider benefits of public mini grid investment. This will support project appraisal for the allocation of public finance   
   5. Environmental and social impact assessments for the sites in line with National Environmental Standards and World Bank integrated safeguards.

1. 1. Tendering scheme and associated documentation - design a competitive tendering scheme (e.g. lowest tariff / lowest subsidy etc.) given expected funding modalities and market realities. Prepare all necessary documentation and guidelines, (operational contracts, technical requirements, evaluation criteria, etc.).

 

1. Scope of Works

 

1. 1. Output 1: Site validation and Inception Report
      1. Using the EMP, existing datasets, geospatial maps, and previously presented analysis, validate the selection of 30 sites judging suitability for mini-grid development based on a least-cost basis. Criteria for screening to be agreed, but may include household density, potential energy demand, topography, productive use potential, socio-economic status, distance from the main grid, physical access, standalone system penetration, available energy resources, etc. 
      2. Where any pre-selected sites are deemed not suitable for mini grid development, select replacement sites earmarked in the NEP for off grid mini-grid development.
   2. Output 2: Feasibility Studies and PPP operational models assessment

 

1. 1. 1. PPP Operational Models (deliverable: PPP models report)

Present analysis and recommendations for mini-grid PPP operational models. This analysis will include (but is not restricted to) the following:

1. 1. Records of similar and successful PPP's models in the sector in other countries;
   2. Analysis of mini-grid specific risks across the full project cycle and how a PPP model can allocate risk to those parties best able to control them;
   3. Existence of legal framework to enable required contracting modalities;
   4. Existence of regulatory arrangements to protect private & public parties during contract execution, or where missing present options for ‘regulation by contract’; and
   5. Likelihood of private sector interest and financing 
      1. Field Surveys (deliverable: Survey Report)
2. Design a data collection tool to be signed off by DOE prior to field surveys. 
3. Conduct field surveys to collect primary data. This could include (but not restricted to):
   1. Surveys assessing willingness and ability to pay, standalone system ownership, current use and expenditure on traditional and liquid fuels, potential energy requirement, income and expenditure, etc. for household and commercial users;
   2. Mapping energy end-users split by consumer type (residential, public, productive users). Each end-user should be separately geotagged to enable load forecasting and network design; 
   3. Solar resource assessment for selected sites; and
   4. Flag potential for construction and/or operational risks for example evidence of flooding, subsidence, landslides, PV shading etc.  

All datasets will be made available in a format agreed with DOE.

1. 1. 1. Technical and financial Feasibility analysis (deliverable: Technical and financial Feasibility report)

Technical and financial pre-feasibility for each site will be completed to international / national standards to include:

1. Detailed energy demand assessment analyzed per consumer/household. The assessment will factor in all variables affecting demand (seasonality, demography, productive use, economic development etc.) and relevant metrics that will enable bidders to make an informed assessment of likely demand. Demand forecasts will be provided for a period to be agreed by DOE. All assumptions will be made clear to allow for review. Consumer categories for consideration under the study will be:

• Commercial users e.g. retail shops, lodges, restaurants, water pumping stations, milling station, and small industrial loads etc.; and
• Public users e.g. schools, administrative offices, health centers, police posts, churches. 

 

1. A preliminary system design and costing will be proposed making use of available optimization models Solar hybridization options will be studied to assess least cost. Residential households of up-to 70 houses representing centralized population centers.
2. Financial analysis will be completed to assess investment metrics and overall commercial viability. Key parameters will be agreed by DOE and LREEAP and factored into the analysis which will include an analysis of the impact of different tariff structures, PPP models and concessional periods on the project bankability and impact to end consumer. The key aim of the financial analysis is to evaluate the required amount of concessional funding needed to reach tariff targets whilst maintaining a return on investment to attract private finance. The consultant should be willing to handover the financial models to DOE and LREEAP at the end of the assignment.
   1. 1. Social-economic cost benefit analysis (Deliverable: Socio-economic Analysis Report)

1. Produce an economic cost benefit analysis to assess the overall social welfare benefit of investment in the 30 mini grids. This analysis will be consistent with GOL requirements and/or international best practice. This analysis will support GOL appraisal for potential allocation of public finance. 
   1. 1. Preliminary environmental and social impact assessment (Deliverable: environmental and social impact assessment report)

1. A preliminary environmental and social impact assessment (ESIA) will be carried out for the 30 sites. Where pertinent issues are raised, the preliminary assessment will provide guidance on methods to manage the risks that could be undertaken upfront and what would need to be included in a later detailed ESIA and management plan. 
   1. Output 3: Tendering scheme design and associated documentation

 

1. A complete mini-grid tendering design will be completed along with all associated documentation. This will include (but is not limited to):

1. Design of tendering strategy (e.g., one-stage, two-stage, limited bidding etc.); 
2. Setting all relevant technical and service standards;
3. Developing evaluation criteria based on internationally recognized procurement guidelines: Procedures manual;
4. Development of pre-qualification and tender documents based on internationally recognized procurement guidelines;
5. Creation of associated bidding templates; and
6. Options for procurement streamlining through electronic systems. 
   1. National Consultations: (Deliverable: Report of the workshop including action items and recommendations)

 

1. A validation workshop will be carried out with stakeholders selected by DOE and LREEAP to review and validate findings. These will take place prior to finalizing (a) PPP model and (b) technical & financial pre-feasibilities and economic analysis outputs.

 

1. Deliverables

 

The consulting firm shall deliver the following deliverables: 

1. A project inception report outlining detailed methodology and project plan. Initial report presenting analysis of up-to 30 pre-selected sites and suggested alternative sites (where applicable) (output 1);
2. Feasibility studies and Recommendations for PPP Operational model assessment. Report on findings of financial and technical feasibilities, preliminary ESIA and economic analysis. Raw survey data will also be made available (output 2); and
3. Tender design report, technical, financial and other associated bidding documents (output3).

1. Reporting schedule

 

The Consulting firm will submit reports to DOE and LREEAP according to the following schedules:

 

Deliverable #	Delivery days (calendar days)
Outputs 1	15 days
Outputs 2	105 days
Outputs 3	60 Days
NB: DOE and LREEAP will provide comments on draft deliverables within 2 weeks of receipt. Activities within the scope/phases of the assignment can ran concurrently as suits the Consulting firm and work programme

 

 

1. Services to be provided by the clients

 

The client (DoE) will provide available documents required by the consultant to complete the assignments including but not limited to: (reports of the previous conducted assignments). The client also will facilitate the selected consultant to get permits for data collection and other documents required by international consultant.   

 

1. Coordination

 

The Consulting firm will be coordinated by Ms. Mathapelo Silase, LREEAP Project Coordinator. Ms. Silase shall be responsible for the coordination of activities under the Contract, for receiving and approving invoices for payment, and for acceptance of the deliverables by DOE and LREEAP.

 

1. Duration of the assignment

 

The initial term of the consultancy services will be six (6) months from the date of signing Consultancy Agreement with LREEAP. The term may be extended at the discretion of LREEAP and on mutual agreement between a Consulting firm and LREEAP.

 

The Consulting firm must submit adequate enumerator staff to undertake field work simultaneously in several areas.

 

1. Consulting firm qualifications

 

The consultant will comprise a team or consortium, managed by a single lead consultant. The members of the team will have the skill and experience necessary to undertake the range of tasks set out in these terms of reference. Each individual on the team must be personally available to do the work as and when required. The lead consultant will be held accountable, in terms of the consultancy contract, for ensuring project deliverables and for the professional conduct and integrity of the team. The consultant will be expected to be fluent in English. 

 

The assignment must be conducted by a consulting firm with evidence of not less than 10 years of national, regional or international experience in mini-grids, renewable energy technologies, and rural electrification. The firm should have conducted similar assignments with expertise/experience in designing bidding strategies and bid documents and specific experience in Lesotho would be an advantage. The consultant must demonstrate capability of key personnel, including their qualifications and competence in undertaking the consultancy works. Such personnel must include experts in a) Rural electrification planning and use of geospatial mapping tools b) Green mini-grid design and optimization, c) Project finance and energy economics, d) Environmental and social safeguard, e) competitive tendering process design, f) PPP operational model design.

 

The consultant firm should provide for each proposed staff, detailed curriculum vitae and copies of academic degrees with similar experience not less than 5 years and 3 similar projects on their account. The inclusion of Lesotho nationals in the Consultant’s team and the capacity building of Lesotho resources through the delivery of the project will be considered as advantages.

 

 

 

1. Team composition, skills and experience

         

Team leader Project Manager:

This would be a seasoned professional with at least 10+ years’ experience who has demonstrated the management capability to handle projects of the size and complexity. Experience in mini-grids, renewable energy and/or distribution projects is required. The Project Manager would have primary responsibility for the assignment. The Project Manager should ideally have university degree at least at the master’s level in an appropriate field (e.g., economics, engineering, finance, management) with at least ten years successful, senior level experience managing projects. The Project Manager may also serve as one of the technical specialists needed for conducting this assignment.

 

Design Engineer (Renewable Energy systems) Renewable Energy Specialist(s): Bachelor’s degree in Renewable Energy, Engineering, and/or Science or related field with 5+ years of experience in the renewable energy and off-grid power sector including;

• Ability to do undertake accurate energy needs assessments at the selected sites;
• Ability to analyze technical data and convert into a renewable energy system design;
• Demonstrated strong technical understanding and track record in the design off-grid energy systems;
• Demonstrated ability in using renewable energy systems design and optimization software;
• Ability to demonstrate strong technical understanding of the off-grid energy systems; and 
• Familiarity with grid integration of renewable energy projects into transmission and distribution systems.

 

Economist/Statistics: Bachelor’s degree in Economics/Statistics or equivalent with ten (10) years demonstrated experience in conducting social mobilization activities, surveys, and focus group consultations in Lesotho especially in assessing ability/willingness to pay is required. Experience and knowledge of Lesotho rural energy, rural consumer preferences and priorities, rural business, and social or political structures, are necessary.

 

Environmental and Social Safeguards Specialist(s): The specialist must have a minimum of post-graduate or master’s degree in environmental sciences, environmental engineering, environmental or social studies or equivalent with at least seven (7) years of relevant experience in fields of environmental and social impact assessment related to renewable energy projects. 

 

Finance Specialist: Bachelor’s degree in economics, finance, business administration or similar with at least seven (5) years’ experience in financial advisory services or in infrastructure finance preferably with specific experience in off-grid/mini-grid sector. Proven experience in public private partnership (PPP) modelling advisory will be an added advantage.

 

Note: Other staff required for this assignment, but not considered as “Key Personnel” are enumerators to undertake data collection in the sub-project areas and analyst/report writer.

 

 

 

 

 

[1] The PIU project coordinator should work with relevant stakeholders to assess the weighting of these selection criteria to prioritize sites once the project is approved by the World Bank Board.