Sol_72011520R00005.pdf

72011520R00005

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 112

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

01/15/2020 X

720115

USAID/Central Asia/Kazakhstan 41 Kazibek Bi St.

Almaty 050010, Kazakhstan 00000

1000 F 03/13/2020

Liam Garvey lgarvey@usaid.gov

PAGE(S)

Joshua Schramm

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

Prescribed by GSA - FAR (48 CFR) 53.214(c)

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____180_________ calendar days (60 calendar days unless a different period is inserted

U.S. Agency for International Development (USAID) Central Asia Project Title: Sustainable Water in Tajikistan Activity Solicitation #72011520R00005

Contents

SECTION B

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE AND SERVICES

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

B.4 PRICE/COST SCHEDULE

B.5 FIXED FEE (Cost Plus Fixed Fee)

B.6 LABOR

B.7 INDIRECT COSTS

B.8 CEILING ON INDIRECT COST RATES

SECTION C – STATEMENT OF WORK

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (January 1993)

D.2 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991)

D.3 BRANDING IMPLEMENTATION PLAN AND MARKING

D.4 BRANDING STRATEGY

D.5 APPROVED BRANDING IMPLEMENTATION PLAN

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE.33

E.2 INSPECTION AND ACCEPTANCE/RESPONSIBLE OFFICIAL

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE .34

F.2 PERFORMANCE PERIOD

F.3 PLACE OF PERFORMANCE

F.4 AUTHORIZED WORK DAY / WEEK

F.5 DELIVERABLES AND REQUIRED REPORTING

DELIVERABLES:

F.6 KEY PERSONNEL

F.7. FIXED FEE PAYMENT SCHEDULE

F.8 PERFORMANCE STANDARDS

Project Title: USAID’s Sustainable Water in Tajikistan Activity Solicitation #72011520R00005

F.9 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS (SEPTEMBER 2013)

F.10 752.242-70 PERIODIC PROGRESS REPORTS (OCTOBER 2007)

SECTION G - CONTRACT ADMINISTRATION DATA

G.1 ADMINISTRATIVE CONTRACTING OFFICE

G.2 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.3 CONTRACTOR’S PRIMARY POINT OF CONTACT

G.4 752.7003 DOCUMENTATION FOR PAYMENT (NOVEMBER 1998)

G.5 PAYING OFFICE

G.6 ACCOUNTING AND APPROPRIATION DATA

G.7 CONTRACTOR'S PAYMENT ADDRESS

G.8 TECHNICAL DIRECTION/RELATIONSHIP WITH USAID

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 752.225-70 SOURCE AND NATIONALITY (FEBRUARY 2012)

H.2 AUTHORIZED GEOGRAPHIC CODE

H.3 752.228-3 WORKER'S COMPENSATION INSURANCE (DEFENSE BASE ACT)

(DECEMBER 1991)

H.4 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007)

H.7 ELECTRONIC PAYMENTS SYSTEM

H.8 752.7019 PARTICIPANT TRAINING (JANUARY 1999)

H.9 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL)

(OCTOBER 2014)

H.10. USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR

ACQUISITION (JULY 2014)

H.11 NONDISCRIMINATION (JUNE 2012)

H.15 752.7004 EMERGENCY LOCATOR INFORMATION (JULY 1997)

H.16 752.7007 PERSONNEL COMPENSATION (JULY 2007)

H.17 752.7010 CONVERSION OF U.S. DOLLARS TO LOCAL CURRENCY (APR

1984)

H.18 752.7013 CONTRACTOR-MISSION RELATIONSHIPS (JUNE 2018)

H.19 ENVIRONMENTAL COMPLIANCE

H.20 GENDER CONSIDERATION

H.21 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (APR

2018)

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ..74

I.2 52.204-21 BASIC SAFEGUARDING OF COVERED CONTRACTOR

INFORMATION SYSTEMS (JUNE 2016)

I.7 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEBRUARY 1998)

I.8 752.225-9 BUY AMERICAN ACT - TRADE AGREEMENTS ACT - BALANCE OF

PAYMENTS PROGRAM

I.9 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEBRUARY 2012)

I.10 752.231-71 SALARY SUPPLEMENTS FOR HOST GOVERNMENT EMPLOYEES

(MARCH 2015)

I.11 752.245-70 GOVERNMENT PROPERTY - USAID REPORTING REQUIREMENTS

(JULY 1997)

SECTION J - LIST OF ATTACHMENTS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS

OF THE OFFEROR

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

K.3 52.204-20 PREDECESSOR OF OFFEROR (JULY 2016)

K.4 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS

(OCTOBER 2015)

K.5 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT

2018)

K.6 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING

DELINQUENT TAX LIABILITY OR A FELONY CONVICTION UNDER ANY

FEDERAL LAW (FEBRUARY 2016)

K.7 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999)

K.8 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APRIL 1984)

K.9 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(OCTOBER 2015)

K.10 52.230-7 PROPOSAL DISCLOSURE - COST ACCOUNTING PRACTICE

CHANGES (APRIL 2005)

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS OR

RESPONDENTS

L.1 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

(FEBRUARY 1998)

L.2 52.216-1 TYPE OF CONTRACT (APRIL 1984)

L.3 52.233-2 SERVICE OF PROTEST (SEPTEMBER 2006)

L.4 GENERAL INSTRUCTIONS

L.5 DELIVERY INSTRUCTIONS

L.6 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL.95

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS

PROPOSAL

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 TECHNICAL EVALUATION FACTORS

M.3 DETERMINATION OF COMPETITIVE RANGE

M.4 COST PROPOSAL EVALUATION

M.5 SOURCE SELECTION

SECTION B

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide services that fall within the Scope of Work (SOW) specified in Section C for the USAID’s Sustainable Water in Tajikistan Activity.

B.2 CONTRACT TYPE AND SERVICES

This is a Cost-Plus-Fixed-Fee (CPFF) completion contract. For the consideration set forth below, the contractor must provide the deliverables or outputs described in Sections C and F in accordance with the performance standards specified in Sections C and F.

Contract Line Items (CLINs) are delineated as follows, corresponding to the three Objectives outlined in Section C, Statement of Work:

Line item Description 0001 Increased access to safely managed drinking water in rural Tajikistan through the rehabilitation/construction of small-scale infrastructure projects.

0002 Establish reliable and commercially viable drinking water services through improved management and access to finance.

0003 Increase engagement of communities in oversight and accountability of drinking water service providers.

For the purposes of the contract’s budget, these CLINs do not require separate pricing.

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is [TBD]. The fixed fee, if any, is [TBD]. The estimated cost plus fixed fee, if any, is [TBD].

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is [TBD]. The Contractor shall not exceed the aforesaid obligated amount.

(c) Funds obligated hereunder are anticipated to be sufficient through [TBD].

B.4 PRICE/COST SCHEDULE

The total cost (exclusive of fixed fee) stated below for the budget categories specified below may not be adjusted without a written modification signed by the Contracting Officer. No amounts in excess of the amounts specified for each cost category shall be billed against the contract.

Item Description Total Cost Direct Labor $ Fringe Benefits $ Travel $ Equipment $ Contractual $ Other Direct Costs $ Indirect Costs $ Total Cost $

B.5 FIXED FEE (Cost Plus Fixed Fee)

Pursuant to FAR 16.306(d), the fixed fee payable under this contract will be tied to the completion of the reports and deliverables specified in this contract and in accordance with the final approved Fee Schedule.

B.6 LABOR

(a) The workday and workweek policies and method of accounting for paid absences including holidays for the contractor and major subcontractors must be in accordance with the Contractor’s organizational policies and acceptable accounting procedures which should be compliant with the Office of Management and Budget (OMB) cost principles and the terms of this contract. Compensation of personnel under this contract or any resulting subcontract must be in accordance with AIDAR 752.7007 Personnel Compensation (July 2007) (See Section H.).

(b) All locally hired national personnel and other non-U.S. expatriates must be paid in accordance with USAID Acquisition Regulation (AIDAR) 722.170. Salaries for individual locally-hired personnel and other non-U.S. expatriates under this Contract and any resulting subcontract must be in accordance with AIDAR 752.7007, Personnel Compensation (July 2007), and should be based upon a combination of factors including the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by USAID and consideration of the individual’s education and work experience.

B.7 INDIRECT COSTS

The Contract clause entitled “Allowable Cost and Payment (JUN 2013)”, FAR Subpart 52.216-7, specifies that the indirect cost rates must be established for each of the Contractor’s accounting periods which apply to this contract. Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs will be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

[TBD] [TBD] 1/ 1/ 1/

[TBD] [TBD] 2/ 2/ 2/

[TBD] [TBD] 3/ 3/ 3/

1/ Base of Application:

Type of Rate:

Period:

2/ Base of Application:

Type of Rate:

Period:

3/ Base of Application:

Type of Rate:

Period:

NOTE: Contractors are allowed to recoup indirect costs (Overhead, G&A, etc.) as other direct costs if it is part of the contractor’s usual accounting procedures, consistent with FAR Part 31 and the contractor’s Negotiated Indirect Cost Rate Agreement (NICRA).

B.8 CEILING ON INDIRECT COST RATES

(a) For each of the Contractor’s accounting periods during the term of this contract, the parties agree as follows:

(1) The distribution base for establishment of final overhead rates is __________________.

(2) The distribution base for establishment of final G&A rates is _____________________.

(b) The Contractor will make no change in its established method of classifying or allocating indirect costs without the prior written approval of the contracting officer.

(c) Reimbursement for indirect costs will be at final negotiated rates, but not in excess of the following ceiling rates for each fiscal year:

Indirect Cost Type FY 20 FY 21 FY 22 FY23 FY24 (contractor’s FY)

1. [TBD]________ _____ _____ _____ _____ _____

2. [TBD]________ _____ _____ _____ _____ _____

3. [TBD]________ _____ _____ _____ _____ _____

(d) The government will not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract. This advance understanding will not change any monetary ceiling, cost limitation, or obligation established in the contract.

B.9 COST REIMBURSABLE (CPFF)

The U.S. dollar costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, and AIDAR 752.7003, Documentation for Payment.

In addition, the requirement and conditions concerning estimated cost and funding apply as detailed in FAR 52.232-22, Limitation of Funds, incorporated by reference in Section I of this contract.

[END SECTION B]

SECTION C – STATEMENT OF WORK

Sustainable Water in Tajikistan (SWIT)

I. Objective

The Sustainable Water in Tajikistan (SWIT) activity will provide a range of long- and short-term technical assistance, along with funding for small-scale construction and rehabilitation of drinking water systems, to support the Government of Tajikistan (GoT), specifically local governments, in providing sustainable drinking water services in unserved and under-served rural areas.

II. Background

Tajikistan remains the poorest country in Central Asia and among the poorest post-Soviet states.

While poverty fell from over 83 percent to 29 percent between 2000 and early 2017, Tajikistan's population still suffers from a high prevalence of childhood undernutrition and stunting.

Increased access to clean water and sanitation and basic health services can help the rural poor achieve tangible improvements in their health and strengthen household and community resilience.

The GoT has taken concrete steps in passing relevant legislation to improve the quality and accessibility of public goods and services in rural areas; however, it has made little progress in addressing these problems. Lacking capacity and funds, Tajikistan hasn’t yet fully translated legislation into action. Support of donors has enabled the government to enact legislation and adopt programs, strategies, and plans of action to address poor drinking water conditions across the country. Continued support from USAID and other donors, along with increased participation of the private sector, will advance Tajikistan along the pathway to self-reliance. Figure 1 below shows the heavy reliance on external funds in Tajikistan’s WASH sector.

Figure 1. Sources of Financing for WASH

The Tajikistan drinking water sector has a complex institutional structure with little clarity on who is responsible for collectively owned infrastructure assets. It lacks explicit boundaries between regulatory functions of state authorities resulting in widespread duplication of responsibilities, conflict and confusion leading to inefficient resource management. For reference, see Annex I: Regulatory and Operating Agencies in the Drinking Water Sector in Tajikistan.

Water legislation in Tajikistan is based on the Constitution of Tajikistan, the Water Code, and the Drinking Water and Supply law regulating water relations, as well as international agreements ratified by the GoT. Article 13 of the Constitution defines water as the exclusive property of the state. The state guarantees its effective use in the interests of the people.

However, public infrastructure built in the 1960s-80s, including drinking water supply systems, has significantly deteriorated due to a lack of adequate maintenance and investments since the collapse of the Soviet Union. The GoT recognizes that it does not have the capacity to modernize the systems without help from the private sector. Therefore, in order to achieve sustainable resource management and affordable drinking water services, the GoT has expressed its intention to use public–private partnerships to deliver public infrastructure and services.

The 2012 Public–Private Partnership (PPP) law establishes the principles of public-private partnerships and the procedure for implementation of PPP projects in the field of infrastructure and social services and applies to all projects implemented by public authorities and private partners in accordance with PPP agreements. Additionally, Article #26 of Tajikistan’s Water

Code states that the GoT, while maintaining its targeted functions, may grant the right to manage the state-owned water facilities within a limited territory to individuals and legal entities on the basis of public-private partnerships, concessions, leases or other forms of partnership.

Government agencies, including local governments are becoming increasingly aware that the PPP formula can offer the best combined elements of the private and public sector approach.

Gender and Youth: While women in the rural districts are often most affected by poor services, they are usually absent from community discussions and local decision-making processes. The World Bank reports that about 23 percent of the population in Tajikistan lives in households headed by women, driven my male migration to Russia. This has caused women to take on economic roles typically placed on men in addition to their full workload of household responsibilities and childcare. In some cases, this has created opportunities for women, as some find employment in the market while others start small production units (handicrafts, dairy products, canning, etc.) or travel as shuttle traders to neighboring countries. However, their entrepreneurial progress is limited, especially in rural communities, by strong cultural norms of appropriate societal roles for men and women that constrain participation in the formal economy.

The responsibility of collecting water from rivers, canals, and wells typically falls on women and children. A household survey of the World Bank shows that 63 percent of respondents from households that collect water from sources outside their house stated that women are responsible for the water collection.1 The same report shows that the willingness to pay for improvements in drinking water supplies is moderately high, with women stating a willingness to pay for water supply improvements more often than men. However, participants of the survey indicated that they might accept higher fees only in the case of large improvements in the quality of the services. This is consistent with the findings that women are primarily responsible for water collection, and thus incur the largest non-monetary burden of poor water supply services. In 2018, during a high-level conference on the International Decade for Action “Water for Sustainable Development” 2018-2028, the GoT hosted a Women’s Water Forum: Bridging Voices to Actions.” Together with the international community, including UN Women, the GoT called for urgent action to ensure women’s and girls’ rights of access to clean water and sanitation and their participation in the processes of effective water management and service delivery. With this activity, USAID will strengthen women’s leadership and engagement in water governance issues to achieve better outcomes in sustainable management.

III. Problem Statement

One of the key challenges faced by water authorities in Tajikistan is the poor management of water services in remote rural communities. Limited GoT funding, deterioration of existing infrastructure, insufficiently developed regulatory and legal framework, high water losses, and inadequate tariffs with regard to the cost of services and low level of collection of payment for services, are among the key issues of this sector. Even minor breakdowns in water supply infrastructure can cause long periods of interruptions in supply due to poor maintenance and management. Water meters are usually not installed in piped systems, so little data is available for managing performance of water operators, leaving no incentives for households to use water efficiently. With a flat tariff, many households under pay for the amount of water they actually

1 Glass Half Full: Poverty Diagnostic of Water Supply, Sanitation, and Hygiene Conditions in Tajikistan, page 108 consume. Water fees are usually well below cost-recovery, yet still collection rates are low due to lack of communication and lack of trust between the service providers and water users regarding the actual costs of providing water services, and few examples of high quality water service delivery that is safe, reliable and affordable. Population growth, seasonal variations in demand, dependence on the reliability of local electricity, abundance of water treatment resources, availability of water testing expertise, and the potential for metered water to regulate consumption and maximize conservation of limited water supplies are related challenges to improve the quality of drinking water services. In addition, rural water sector issues, such as low payment collection rates, a lack of external sources of funding, and tariffs that are lower than cost-recovery rates play a critical role in the financial sustainability of water supply schemes.

Community based water management models, with consumers’ monetary and in-kind contributions, did not demonstrate long term financial viability. International organizations, with community support, established various forms of water operators, such as community action groups, water boards, and water consumer associations, all of which have either in-kind contributions or financial investments into water systems. However, in the past, the interests of such small scale, informal water operators were not protected by a legal agreement or contract.

With local government turnover, any state-owned enterprise, such as Khojagi Manziliyu Komunali (State Owned Utility Company, hereafter referred as KMK), could take over the business. However, if such businesses are registered under the PPP unit of the State Committee for Investment and Property Management, the water operator’s interests are protected. Across all types of service delivery models, mobilizing local authorities and communities in the design stage and sustaining their involvement in the construction and operation seems particularly effective in reducing financial costs, increasing ownership and willingness to pay cost recovery fees for services, all of which support sustainability. The interaction between communities and service providers can be enhanced through feedback loops that allow consumers to report infrastructure breakdowns, receive up-to-date information about service interruptions, and demand information about tariffs and other costs.

The role of women as key agents of change is critical in building institutional knowledge and their participation and decision-making processes are critical for securing access to clean, safe, and affordable water and sanitation for all and for ensuring sustainable development. However, because of established gender roles which do not associate women with technical work, this has not been taking place widely enough. In order to involve women in effective management, women need access to training related to management financial literacy.

Theory of Change

IF we support the rehabilitation/upgrade/construction of safe drinking water infrastructure in targeted rural communities; and, IF we assist in establishing cost efficient, financially viable, business models for safe drinking water services in targeted rural communities; and, IF we engage and empower women and youth to become managers of safe drinking water enterprises;

THEN households in targeted rural communities will have sustainable access to safe drinking water, leading to improved human health and community resilience to support Tajikistan on the journey to self-reliance.

IV. Policy and Strategy Implications

Under the USAID Regional Development Cooperation Strategy (RDCS), this activity directly supports DO3 More effective and inclusive governance institutions that serve the public good, and the Intermediate Results (IR) 3.3 Increased use of vital health services (through increased access to and improved quality of services), and IR 3.1: More constructive engagement between representative civil society and governments. At the country level, the activity will support Tajikistan’s Feed the Future Strategy: IR 5 - Nutrition improved, through IR5.2 Access to potable water in villages increased.

This activity is designed to contribute to two of the four Development Results of the USAID Water and Development Plan in the U.S. Government Global Water Strategy 16: Strengthen Sector Governance and Financing (Development Result 1); Increase Sustainable Access to Safe Drinking Water (Development Result 3).

Also, improving local capacity and engaging the local private sector for safely managed drinking water supports USAID’s “Journey to Self-Reliance” strategy and the Private Sector Engagement (PSE) Policy. PSE is a strategic approach to planning and programming whereby USAID consults, strategizes, aligns, collaborates, and implements with the private sector for greater scale, sustainability, and/or effectiveness of drinking water sector in Tajikistan.

This activity also supports the implementation of Tajikistan’s National Water Strategy (for the period to 2030). Improving life in rural areas, including increasing and improving the availability of drinking water with a focus on the needs of women and children in rural areas is stated as one of the top priorities in this strategy. The GoT expects; 1) Universal and equitable access to safe and affordable drinking water and access to adequate and equitable sanitation facilities are provided for all; 2) Provision of drinking water and sanitation in rural areas, as well as in schools, hospitals, workplaces and other public spaces, will be improved; and 3) Public and private investment in water infrastructure will double by 2030.

V. Goal and Objectives

Goal: Domestic water needs of targeted rural communities sustainably addressed. The overall intent of this activity is to support the GoT, specifically local governments, in providing safely and efficiently managed drinking water services. While the program proposes to address drinking water needs in targeted communities, its key aim is to identify and document successful implementation models that ensure the viability of the water service delivery beyond the life of the project.

To contribute to a more equitable access, the activity will focus on unserved and underserved rural and peri-urban areas and encourage women and youth to participate in all aspects of implementation. To ensure that access improvements are sustained, the activity will be guided by the theory of change, requiring activities which contribute to the achievement of three mutually reinforcing intermediate results. These results include:

Objective 1: Increase access to safely managed drinking water in rural Tajikistan through the rehabilitation/construction of small-scale infrastructure projects.

Objective 2: Establish reliable and commercially viable drinking water services through improved management and access to finance.

Objective 3: Increase engagement of communities in oversight and accountability of drinking water service providers.

Objective 1: Increased access to safely managed drinking water in rural Tajikistan through the rehabilitation/construction of small-scale infrastructure projects.

To continue USAID’s long-standing efforts to increase access to a sustainable, safe drinking water supply in rural Tajikistan, this activity will provide financial resources, through flexible, transparent and competitive contracts with local construction companies, to fund new or rehabilitation of existing water supply and sanitation infrastructure investments. The prime contractor will procure construction commodities and services itself to rehabilitate or construct 12 small scale infrastructure projects in five selected districts over the life of the project. The average value of each construction project will not be more than $80,000. With this activity, USAID will expand access to safe drinking water for more than 35,000 citizens within targeted districts, while at the same time build capacity of local governments, water operators, and the private sector to optimize service delivery, fee collection, and maintenance and financing as described below under Objective #2. It is expected that in some cases the investments will be for new infrastructure (e.g., digging new water boreholes, installing pumps or water treatment equipment, expanding distribution systems and connecting water lines to private houses). In other cases, it may involve rehabilitation or upgrading of existing water infrastructure. Total costs for infrastructure are limited to $960,000 for the life of this activity.

As the ownership of water supply and sanitation infrastructure assets, as well as the responsibility of water supply and sanitation service provision, has been fully transferred to the local government (municipalities), the implementing partner will closely work with local government administration and secure their financial and in-kind contributions to the construction/rehabilitation of all proposed water infrastructure.

Illustrative activities:

1. Take inventory of available drinking water services, both those that are centralized and those which are community managed within identified sample and priority districts.

2. Support local government by rehabilitating and/or constructing small and medium scale drinking water infrastructure;

3. Identify existing water supply networks and improve the services by extending water to individual households and installing water meters.

Targeted outcomes for this objective will include:

Result 1.1: At least 35,000 people (approximately 5,000 households) gain new or improved access to safe drinking water as a result of USG assistance (USAID Standard F Indicators HL.8.1-1, HL.8.1-2 or HL.8.1-3) Result 1.2: At least 12 new or rehabilitated infrastructure handed over to local governments, with improved quality of drinking water service (measured by hours per day, reduction in non-revenue water, extension of piped network to serve additional customers, etc.)

Result 1.3: At least 10 institutional settings (ex: schools, hospitals, primary health care facilities) gain access to a basic drinking water services as a result of USG assistance (HL.8.1-4)

Objective 2: Establish reliable and commercially viable drinking water services through improved management and access to finance

To ensure long term sustainability and financial viability of water infrastructure that the activity invests in target districts, (Objective 1) the implementing partner will build water operators’ capacity to plan, finance, and manage the assets over time. To meet bigger water and sanitation needs and use USAID limited funds strategically, this activity will seek opportunities for blended financing, including USAID grants, local governments’ resources and investment from the private sector, wherever possible. The activity will seek opportunities for public sector/local government to contract private sector quality services on a long-term basis so as to take advantage of private sector management skills.

This activity will assess local markets’ and consumers’ willingness and ability to pay for water utilizing a Public Private Partnership model. The project will identify small-scale drinking water providers, particularly community-based organizations and local small and medium enterprises (SMEs), which hold a comparative advantage and can play a key role in reaching underserved groups of rural households. Successful implementation of this activity depends on the implementing partner’s skill to effectively convene multiple stakeholders, matching the interests of partners. It will also need to continuously engage in dialogue with the local government and outreach to a broad number of local private entities. When water operators are identified, the implementing partner will provide financial and technical support; help them test and adapt new approaches in the drinking water sector to ensure the deployed business model is viable for scale up beyond the project life.

As private sector engagement and public private partnership (PPP) in drinking water sector is at a nascent stage. Because the risk profile and regulatory constraints for financial institutions make it impossible to provide the type of financing required for private sector engagement in drinking water services. The terms are too short (maximum three years), collateral requirements that are too high (100-120%), and inflexible repayment terms based on predictable cash flows and short grace periods.

Under Objective #2, the Contractor will award matching funds not exceeding $200,000 to multiple local businesses, with a total amount not exceeding $1,000,000. The Contractor shall consider wide range of new and underutilized organizations and locally based small businesses to leverage significant private sector funding to promote market solutions to the challenges of drinking water services in Tajikistan. The Contractor will deploy blended finance instruments, which will involve the use of catalytic capital from the private sector or philanthropic sources to increase its investment.

Through those private companies, the Contractor will create access to finance to identified local private enterprise, which are ready to co-invest in water construction, with consequent engagement in operation and management of water services. The sub-awards can also be designed to support more facilitative partnerships for effective local resource mobilization and local private sector engagement. It can also facilitate mentorship, outreach to the private sector, technical assistance in drafting financially sound business plans, process through incubation period to help establish investment-ready businesses. The results will then be made publicly available in order to inform and crowd-in new players into the country’s emerging PPP ecosystem.

In partnering with private sector operators, the project will assist local governments in the selection of appropriate contractual arrangements that are compatible with local socioeconomic constraints and objectives and address the specific needs of poor consumers. While the public sector/local government retains its regulatory and supervisory function (such as establishment and enforcement of standards for services rendered and conformity to regulations), where possible, this activity will facilitate the delegation of such functions as collecting fees for services rendered directly from the end user, maintenance, operations and similar tasks to private water operators. Any partnership with private sector contracts should clearly define pro-poor arrangements through establishing adequate funding to subsidize poor and low-income households directly for service charges.

Building on the progress already made by USAID and other donors, this activity will support the development of pilot public-private-partnerships (PPP) between the GoT and small scale private sector organizations, to serve as demonstration projects and to test the policy, legal and regulatory, and institutional environment being established. It will also test financial feasibility studies and transaction advisory services for the emerging pipeline of PPP projects.

Although the PPP law was enacted in 2012, providing a legal framework for the development of infrastructure projects under international PPP schemes, Tajikistan remains at an early stage of development of its own PPP framework and market. This is likely due to lack of capacity, lack of support, or a combination of the two. Other key elements of a PPP, such as enabling the institutional and financial environment are still being developed. Therefore, at this stage it is difficult to forecast what challenges the project will face during implementation. Therefore, government support is required from the start. Furthermore, the pilot project should be agile and adaptive to sufficiently address the gaps in regulatory framework revealed through implementation. This approach will inform USAID and stakeholders of best practices/approaches for implementing PPP models through adaptive learning. However, until now, the main focus of those activities was mainly on increasing access to water in rural districts, rather than ensuring financial viability of the services. Therefore, with this activity, the contractor will explore ways of covering the financial gap in this particular service, by exploring various business models, including public private partnership.

PPP model can be in the form of concession or management contracts, where the private sector is involved in direct service delivery to users. Under a management contract, a private company (usually a limited liability company (LLC)) can be appointed by the government to provide managerial services, for a fixed fee (piggybacking on user fees). Such a contract requires the private sector to maintain the water asset and provide services to the population for a given period. The payment of such private operators may be either fixed at the outset, in which case the commercial risks of the operation are borne entirely by the public sector, or it may be linked to the performance of the utility, in which case the private operator bears some commercial risk.

Considering Tajikistan's challenging investment environment, and limited number of social investors, while exploring all potential opportunities, this activity may also focus on non-financial forms of PPP that engage infrastructure management contracts. This type of contractual arrangement can facilitate knowledge transfer and develop a greater understanding of how the private sector can support the facilitation of social services as part of a gradual approach to increased private sector participation.

In Tajikistan, in order to improve the quality of drinking water services, it will require both an entrepreneurial mindset and technical skills. This combination will be rare. Therefore, the implementing partner will likely need to seek entrepreneurs who are interested in opportunities in rural water supply and train them on water service delivery, rather than trying to instill an entrepreneurial mindset in technicians who are currently operating rural water systems.

Also, the implementing partner must undertake all efforts to identify and encourage women as investors and water operators, as well as technicians (engineers, plumbers, IT specialists) required for implementation of the activity. For the purpose of continuity of work force and to ensure sustainability of drinking water management, engaging women and youth in the decision making and management of the services is strategically important. Especially because youth of this generation are heavily influenced by new technological advances and can better utilize available means of communication with consumers.

Illustrative Activities

1. Improving operational performance and governance/management of water operators through development of Standard Operating Procedures, staffing improvements, metering, non-revenue water reduction, energy efficiency improvements, billing systems,

2. Improving water operators’ financial performance and credit worthiness through financial and investment plan development, full cost recovery tariff setting, debt management, and performance monitoring tools for water operators to obtain an investment-grade credit rating that will attract investment to the water sector.

3. Improving capacity of subnational governments to manage contracts and other forms of public private partnerships for drinking water service delivery

4. Expanding engagement and outreach to a broad range of local private sector as suppliers, potential operators, and sources of finance, including but not limited to corporate social responsibility

5. Facilitating dialogue and the process of registering/establishing PPPs between local private entities and local government entities;

6. Assess demand/willingness/ability to pay, collect consumers’ consent to justify cost recovery fees, seek co-financing opportunities to effectively induce meaningful engagement with local communities from an early stage;

7. Assist in establishing monitoring systems to track indicators of infrastructure functionality, service provider performance, and levels of service delivered against norms and standards.

8. Building capacity to leverage resources from government/donors/private sectors/investors to fund expanding water services to unserved or underserved populations.

9. Strengthening reporting and other means of accountability to local government and citizens.

10. Identify local sources (public funds) to establish subsidies for poor and low-income households;

11. Outreach to the private sector, facilitate partnership, provide technical assistance in drafting financially sound business plans, process through incubation period to help establish investment-ready businesses

12. Identify and sub-award new local business and pilot PPP through blended finance instruments that will involve the use of catalytic capital from the private sector

13. Conduct regular women and youth focus groups to lobby for women's engagement in drinking water management process;

14. Engage women and youth in training and mentor them in financial literacy and sustainable management

Targeted outcomes for this objective will include:

Result 2.1: Value of new funding mobilized resulting at least 10 percent annual increase in financial resources accessed by service providers from public and private sources for the expansion of improved drinking water services as a result of USG assistance (Standard Indicator HL 8.4-1) Result: 2.2 At least 5 convening events conducted to identify and incentivize private sector to engage in water service delivery Result 2.3: At least 12 water institutions strengthened to manage water resources or improve water supply services, their asset management through testing different models, including public private partnership models, and improved credit worthiness as a result of USG assistance.

(Standard indicator HL 8.3-3) Result: 2.4 At least 10 innovations supported through USG assistance (Standard Indicator STIR-

10) This includes water operators working under leases or Public Private Partnership (PPP) agreement with jamoat or district governments Result: 2.5 At least 5 local businesses received matching funds for establishing sustainable water services through PPP agreements with local government Result 2.6 Water fee collection rate in each water service sites increased to 80 percent and above

Objective 3: Increase engagement of communities in oversight and accountability of drinking water service providers.

The issues with poor access to safe drinking water are not only technical or hardware-related on the part of the service provider and local government, but also the result of lack of accountability to the public and lack of engagement on the part of the citizens. Many communities are caught in a negative cycle where the quality of service is low, so customers are not willing to pay, which further reduces the financing available to improve and expand services. This component will increase community participation in water supply service delivery, working both with communities and with water service provider to improve and expand services and improve accountability.

Social mobilization is a process whereby communities pool their individual and collective resources to address common issues. Strengthening citizens’, particularly women engagement in drinking water supply to improve communication, accountability and sustainability is an integral component of this activity. The community mobilization component must pay special attention to both social and normative factors (such as gender), in addition to individual-level behavior change – and articulate these considerations in the proposal. A range of methods can be applied to ensure that youth, women and men gain skills and platforms to participate and benefit from USAID’s investments, taking advantage of tools and materials that have already been developed, promising practices, and lessons learned.

The implementing partner shall consider the full range of existing institutions in implementation of these objectives, including but not limited to Community-Based Organizations (CBOs) and committees, women’s groups, health workers, Civil Society Organizations (CSOs), microfinance institutions, professional service organizations. These are referred to in this document collectively as CSOs. Mobilization and citizen engagement for improving drinking water service will require use of multiple channels within the community to create and support new social norms.

Mobilization and engagement should take place prior to, during, and after completion of infrastructure improvements. Communication, transparency and accountability should be supported in both directions in support of improved water service delivery and customer satisfaction, with an emphasis on the gendered dynamics of communication and engagement.

The implementer should take advantage of mobile technology and public media as potential avenues for evaluating and disseminating information and ensure effective participation of women and other subpopulations that are typically underrepresented in community mobilization.

Existing and new materials and messages should be culturally appropriate for the target audiences and engage the target audiences and beneficiaries in the development of campaigns.

The implementer is expected to work under the existing strategic and policy framework for drinking water in Tajikistan.

The implementer will create a more effective and inclusive community participation and gender mainstreaming from and within the beneficiary communities including men, women, poor and marginalized in all program activities. Community participation includes citizen access to municipal decision-making processes and access to information sources that facilitate citizens’ advocacy and oversight activities.

Illustrative Activities

1. Establish a mechanism for continuous engagement between service providers and water consumers

2. Seek concurrence of community (including any gender-specific community CSOs) before finalizing infrastructure design

3. Develop and institutionalize hotline for feedback and customer service skills within the water operator unit;

4. Identify women activists and establish working groups to determine and implement appropriate water and sanitation solutions to meet the specific needs of women and girls;

Targeted outcomes for this objective will include:

Result 3.1: 12 district-based feedback hotline services with customer service skills developed and institutionalized Result 3.2: Increased percentage of consumers approaching water operators (through hotline, town hall meetings or visits to water operators’ offices), desegregated by sex.

VI. Geographic Focus and Beneficiary Selection

Rural areas in Tajikistan are defined more by lack of public institutions and services than by population density. The water service level in these areas is characterized by piped networks with standpipes, in transition to household connections. Service providers range from single or combined system community-based management (Mahalla committees or water users’ associations), with some small-scale private providers, and state-owned enterprises. This typology has a limited pool of private operators and limited market potential and requires capacity development to professionalize and transition to household connections, charging tariffs for higher service levels, and increased complexity of monitoring safely managed services. The focus of this activity will be on rural and peri-urban populations that are unserved or underserved with respect to a safely managed drinking water service. The geographic coverage will depend on identified gaps in coordination with other donor agencies and government counterparts.

Criteria for final selection of geography include:

⮚ Lack of significant engagement by USAID or other partner in drinking water sector ⮚ Size and density of rural unserved population ⮚…