1 - SOW.docx

STATEMENT OF WORK

Kosovo Gas Sector Consultant

A. Introduction

The Millennium Challenge Corporation (MCC) has a requirement for gas sector and related power sector expertise to advise the Government of Kosovo (GOK) on their project and program development activities in connection with the GOK proposal to MCC. MCC will obtain the required services through a competitive procurement to provide professional experience related to the gas and gas to power sectors.

Program and Project Overview

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 sign cant 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.

B. Countries

Kosovo and any other eligible MCC country, if required.

C. Scope and Objectives

MCC seeks a Gas Sector Advisor (Advisor) to advise the GOK on gas supply, transmission and distribution and gas to power activities that are under development in Kosovo.

The GOK energy strategy and compact proposal to MCC includes energy diversification including natural gas. GOK is seeking support from international financing institutions including European donors that will complement investments in an MCC compact with Kosovo.

Examples of analyses that the GOK may require include, but are not limited to:

· Gas 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.);

· Gas project studies’ results and implications for GOK actions.

· Gas demand assessment involving GOK state owned enterprises (SOE’s),

· Establishment of gas sector institutions for gas infrastructure (construction, operations, maintenance) and gas marketing, and

· Options for using gas in power reserve and baseload generation systems.

The objective of these analyses shall be to assist the GOK in its decision making on planning and investment involving energy diversification using natural gas.

D. Tasks

The Advisor shall assist the GOK’s efforts to assess natural gas supply(ies) and gas fired power facilities using donor and lender funding and for gasification, by:

1. Conducting an initial sector situation assessment or profile covering policy, regulation, and institutional evaluations, and highlighting related gaps and weaknesses,

2. Providing review and commentary on project concepts and proposals prepared for the GOK by consultants;

3. Assisting GOK in the refinement of program objectives with clear links to measurable outcomes;

4. Assisting Compact Core Team and ministry official in coordinating the development and implementation of the gas and power sector activities including planned and ongoing programs of the GOK and other donors;

5. Assisting GOK in the development of or reviewing Terms of References for specific gas and related power sector activities;

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

7. Maintaining a productive, collaborative working relationship with key sector actors, donors, donors’ consultants, GOK and MCC.

Other Tasks

From time to time, and as required, the Consultant 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 proposed cooperation agreements between GOK entities as they pertain to the projects.

2. Travel to the GOK;

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

4. 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.

5. Review the GOK contractors reports and identify potential problems that could introduce risk to the GOK or MCC and provide advice on mitigation measures.

6. Undertake missions, as required by GOK and authorized by MCC, and provide review of project/program risks and recommended mitigation with regard to GOK contractor performance management and contract administration.

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

E. Deliverables

The Consultant shall provide services to GOK through MCC on an as needed basis, as required. To support GOK in the flexible and timely manner needed to meet the evolving needs of Compact development and negotiation, technical directives under this statement of work shall be issued and the Consultant deployed each time the Consultant’s services are needed over the course of this contract. No additional tasks shall imply any additional costs to the Government beyond the amount allowed for in the initial call order; however, this call order may be amended to reflect additional costs associated with implementation planning and oversight requirements in additional countries.

Deliverable 1: Trip reports, ad hoc reports or information as may be requested by the COR/PM.

Deliverable 2: Final report, including comments by MCC, due as per agreement.

F. Timing 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 also 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.

G. Conflict of Interest

The Consultant would be precluded from bidding on work and services (design, assessment, program implementation) to be procured by the host country’s Compact 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 Consultant would be expected to coordinate with local authorities responsible for MCC Compact implementation as well as other donors, where relevant. However, designated Consultant would report directly to the designated COR/PM.

H. Period and Place of Performance

All work under this contract will be completed between effective dates of the contract award for a two-year period. The estimated level of effort is 630 hours per year with an estimated 6 trips per year. MCC anticipates this level of effort but does not guarantee this level of effort as it may increase or decrease.

Consultant will perform the tasks under this contract in Kosovo and at Consultant’s own facilities.

I. Required Qualifications

· Minimum10 years experience in gas transmission, distribution and supply including gas sector development, operations, and financing

· Prior experience in gas sector development in the EU countries, European Energy Community directives in gas and electricity and the knowledge of current gas sector development trends in the Southeast European Region

· Advanced degree (or equivalent experience) in engineering, business management, gas sector policy and regulation, international trade and gas procurement/contracting

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

· Ability to brief high-level government officials on critical energy sector technical matters

· Coordinate with local authorities responsible for MCC Compact development as well as other donors, where relevant

· Skilled in performing gas and 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

· Experience working in low income countries involved in energy sector reform, project development and institutional capacity building

· Excellent oral and written communication skills in English; ability to communicate in Albanian preferred but not required