01 SOW.docx

UNCLASSIFIED

UNCLASSIFIED

UNCLASSIFIED

ENERGY PRACTICE GROUP

ENERGY EXPERT

STATEMENT OF WORK

A. Introduction

On January 23, 2003, the United States established the Millennium Challenge Corporation (MCC), an innovative foreign assistance program designed to reduce poverty by promoting sustainable economic growth. MCC, a U.S. government corporation, is based on the principle that aid is most effective in countries that promote good governance, economic freedom, and investments in people.

MCC’s overriding objectives are to promote economic growth and a significant reduction in poverty in our partner countries. MCC does not take it for granted that programs that stimulate growth will invariably reduce poverty. MCC looks at the likely distributive effects of projects and, to the extent that data are available to perform such an analysis, identifies the beneficiaries and estimates the impact on poverty reduction. Ultimately, MCC seeks significant and measurable increases in incomes of large numbers of poor people and significant reductions in poverty.

MCC analyzes the likely impact on economic growth of its programs by analyzing whether they are consistent with international and country evidence on drivers of economic growth and by use of economic rate of return (ERR) analysis. The essence of such an analysis is a straightforward comparison of costs and benefits, where the costs are the MCA grants, other front-end project development costs, and associated project life cycle operating and maintenance costs, and the benefits are increases in incomes in recipient countries.

Program and Project Overview

MCC’s substantial investments in various countries’ energy and power sector assets require a stable supply of power and institutional governance to facilitate sustainable infrastructure development (including transportation, power and other productive economic activities). To this end, MCC Programs’ intended outcomes may include but are not limited to:

· Greater private sector investment in additional generation capacity (e.g., by facilitating the development of an IPP market and/or PPPs);

· Improved delivery of power via increased transmission and/or distribution capacity, loss and outage reduction, improved efficiency, and improved stability of the national electricity grid;

· Greater access to power in the country;

· Improved technical capacity of the utilities and other institutions, including master planning; and

· Strengthened policy framework, institutions, and regulation and governance of the sector, so that it can expand in an efficient and sustainable manner to meet current as well as future electricity demand.

MCC works in close coordination with partner countries to conduct sector assessments and understand challenges, conduct early due diligence assessments and analysis, design impactful reform and infrastructure projects, and oversee implementation of the project by partner country institutions and technical contractors.

Examples of analyses that MCC may lead in developing or reviewing and commenting on include, but are not limited to:

· Sector policy assessments and the identification and/or prioritization of specific sector reform activities and tasks (e.g. changes to policies, laws, and regulations, review and changes to tariff regimes, etc.);

· Cohesive national energy policy addressing linkages between power sector and fuels policy, land use planning and environmental policy, cost-effective expansion of access to electricity, and taking into account views of traditionally under-represented groups and the disadvantaged;

· Long term, reliable fuel supply for the operation of thermal power plants;

· Integrated power sector master plans that build upon existing sub-sector master plans and provides guidance for future investment plans;

· Clear public policy and framework for private sector participation in the power sector;

· High level engineering review of infrastructure projects;

· Financial and operational turnaround strategies for utilities;

· Sector regulation and governance;

· Willingness to pay, cost of service tariff and rate design, appropriate subsidy policy and structure.

B. Scope and Objectives

MCC has a requirement for project design, assessment, and implementation expertise related to various energy sector programs in MCC affiliated countries. MCC will obtain the required services through a competitive procurement to provide professional experience related to energy sector planning, reform, regulatory and policy environments, and competitive procurement of energy supplies and energy conversion technologies.

MCC seeks an expert to advise on energy and power sector reform activities and infrastructure investments that are under development, in implementation or that may be undertaken in Benin, Ghana, Nepal, Sierra Leone, Kosovo, Senegal, The Gambia, Togo, and any other MCC eligible country, as applicable.

C. Countries

Benin, Ghana, Nepal, Sierra Leone, Kosovo, Senegal, The Gambia, Togo, and any other MCC eligible country, if required.

D. Tasks and Deliverables

Tasks:

The Expert shall assist MCC’s effort to support the design and implementation of energy and power sector reform activities and infrastructure investments for the countries listed above and other MCC countries where power sector activities are or may be present as described in general terms above, by:

1. Conducting an initial sector situation assessment or profile covering policy, regulation, and institutional evaluations, and highlighting related gaps and weaknesses. This assessment may include analysis of root causes behind sector challenges. This work associated with the Togo compact development is an urgent need and may require the Expert to mobilize on an accelerated basis.

2. Providing review and commentary on project concepts and proposals submitted by MCC’s partner countries and in particular identifying opportunities and need for complementary sector reforms, restructuring, regulations and asset investments.

3. Defining the refinement of program objectives, with clear links to measurable outcomes.

4. Supporting development of reform projects including the definition of capacity building and technical assistance activities or other implementation measures.

5. Assisting with the structuring of a Compact reform program and conditions precedent linking progress on or achievement of reforms to project funding.

6. Coordinating the development and implementation of the energy and power sector reform activities with the planned and ongoing programs of other donors.

7. Assisting in the development of or reviewing Terms of References for specific sector reform oriented technical assistance activities and infrastructure investments.

8. Developing or refining existing economic analyses (produced by either MCC or other parties) to assist in the dialogue with the host country regarding possible approaches and specific, recommended measures.

9. Providing oversight and reporting to MCC the progress against the commitments made under the MCC programs, in general terms as described above, and as specified in stipulated reviews.

10. Providing oversight and reporting to MCC on all key developments in the sector, including but not limited to Government’s plans, policies, and regulations, budget cycles, institutional changes and developments, and progress against relevant Compact targets; and

11. Maintaining a productive, collaborative working relationship with key sector actors, donors, donors’ consultants, MCC and MCC’s partner countries.

Other Technical Assistance

From time to time, and as required, the Expert may be required by the MCC COR or PM to provide other advice and counsel. This may include but is not limited to:

1. Review proposal evaluation reports from technical panel and procurement agent.

2. Review proposed implementing entity arrangements and cooperation agreements between governmental entities as they pertain to the projects.

3. Review conditions precedent in MCC programs (Compacts as well as Threshold Programs) to ensure progress made is in line with MCC expectations.

4. Assist MCC in reviewing qualifications of key MCC-eligible country technical staff prior to their engagement.

5. Assist MCC in reviewing the adequacy of all reports that are provided by country counterparts, contractor(s), Implementing Entity and Accountable Entity, and that the reports fulfill the reporting requirement obligations of these entities under their specific Program to assist MCC’s authorization of disbursement requests.

6. Assist MCC in the production of draft Implementing Entity Agreements with consultation of the Implementing Entity, MCC, MCA-eligible country and other relevant government entities.

7. Assist MCC in discussions with the MCA on best practices in managing contracts and contractor performance for the design and construction of works, including the roles and responsibilities of MCC, MCA, government policy makers and regulators, project management consultants, design engineering firms, construction supervisory firms, and construction contractors.

8. Advise on the application of contract terms, and Employer/Owner/Owner Representative actions required to document contractor compliance and performance, to manage/respond to claims, and to handle disputes.

9. Advise on roles and responsibilities and correct procedures per FIDIC contract terms as modified in the MCC Standard Bidding Documents with a particular focus on the differentiated roles of policy makers and commercial stakeholders.

10. Review the contractors’ and supervisory engineers’ (or project management consultants’) progress reports and identify from a legal perspective the potential problems that could introduce risk to the MCC or MCA and provide advice on mitigation measures.

11. Undertake missions to MCC-eligible countries, as required by MCC, and provide review of project risks and recommended mitigation with regard to contractor performance management and contract administration.

12. Advise MCC on possible improvements in the contractual language to bid documents and/or contract terms, and procurement approaches more generally.

Deliverables:

Deliverables shall be outlined via Technical Directives that shall be issued by the Contracting Officer's Representative or the Project Monitor including appropriate levels of effort, field missions, deliverable requirements and timing of deliverables. Deliverables may include some or all of the following:

1. Reports, reviews and analyses as may be required under the scope above according to the needs of the MCC Compact timeline and lifecycle,

2. Recommendation regarding project design,

3. Briefings on the progress of the consultancy and findings, and

4. Review and comments on terms of reference for engineers/construction supervision terms of reference,

5. Review and comments on construction works packaging, documents, and procurement strategy, and

6. Provide lessons learned for improving due diligence practices, project development and implementation.

All deliverables shall be submitted in electronic form where feasible, and in hardcopy as necessary and/or required. Deliverables will be considered “draft” upon initial receipt. Drafts will be reviewed and accepted or concerns raised/comments provided within two weeks of receipt. The Expert shall appropriately address the Corporations’ concerns and provide final deliverables within one week of receiving the MCC response.

E. Time and Reporting

All formal communication with MCC, including reports, will be submitted to the Contracting Officer Technical Representative (COR), Program Monitor (PM), and other designated MCC personnel. The COR/PM for this requirement will be identified via separate correspondence.

The COR/PM will have technical responsibility for monitoring the contractor's performance. The COR/PM will review and evaluate the contractor's performance, and will coordinate any communications with relevant counterparts and other donor agencies and organizations.

Any changes in the terms of the SoW will be made in writing and approved by the Contracting Officer. No representation of the COR/PM shall serve as a basis for an alteration in the general scope of this SoW or of the terms and conditions of the SoW unless confirmed in writing by the Contracting Officer. The contractor must communicate with the Contracting Officer on all matters that pertain to the Contract terms. Proceeding with the work without proper contractual coverage could result in nonpayment for that work.

F. Conflict of Interest

The awardee would be precluded from bidding on work and services (design, assessment, program implementation) to be procured by the host country’s program management entity or using funds advanced under a Compact or Threshold Program in the country where services are being provided to MCC. The designated Expert would be expected to coordinate with local authorities responsible for MCC Compact implementation as well as other donors, where relevant.

G. Place and Period of Performance

All work shall be completed between the dates of the award through a four-year period of performance. The level of effort is estimated at up to 1,000 hours with an estimated 5 trips per year. MCC anticipates this level of effort but does not guarantee it, as it may decrease depending on actual project requirements.

The Expert will perform the tasks under this contract in MCC-eligible countries, in MCC offices in Washington DC, and at awardees own facilities.

H. Qualifications

Mandatory:

· Master’s degree, PHD is an advantage, in engineering, business management, power sector policy and regulation, international energy trading, electricity procurement/contracting, or related field

· Master’s degree, PHD is an advantage, in engineering, business management, power sector policy and regulation, international energy trading, electricity procurement/contracting, or related field

· Minimum of fifteen (15) years of experience in power sector reform, transmission, distribution and supply including power sector development, operations, and financing

· Proven experience working in low-income countries (New World Bank country classifications by income level: 2022-2023) involved in energy sector reform, project development and institutional capacity building

· Skilled in performing power sector project analysis and appraisal, with an ability to identify the essential risks and issues (including environmental, social and legal) of concern to a funding entity

· Proven ability to work as part of multi-disciplinary, international project teams involving environmental, social, legal and construction activities typically associated with the power sector

· Expert oral and written communication skills in English

Preferred:

· Oral and written communication skills in French