Annex_X_-_Benin_Power_Compact_Electricity_Distribution_Project.pdf

BENIN POWER COMPACT

ELECTRICITY DISTRIBUTION PROJECT:

REGIONAL AND COTONOU ELECTRICAL DISTRIBUTION GRID

STRENGTHENING ACTIVITIES:

DESIGN, SUPERVISION AND MONITORING

3.1

3.2 1.0 INTRODUCTION

1.1 MCC and Government of Benin

The Millennium Challenge Corporation (“MCC”) is a United States government-owned corporation created under Title VI of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2004 and is responsible for the stewardship of the Millennium Challenge Account. MCC works with developing countries to promote sustainable economic growth to reduce poverty. Eligible countries develop specific investment programs to be funded by MCC through a grant agreement or compact over a five year period and implemented by the country partner.

On September 9, 2015, acting on behalf of the United States Government (“USG”), MCC signed a second Compact with the Government of Benin (the “Government” or “GoB”) focused on the electric power sector. The Compact, comprised of a US$375 million grant from the USG and a $28 million matching contribution from the GoB, aims to strengthen Benin’s national utility, attract private sector investment, and fund infrastructure investments in electric generation and distribution as well as off-grid electrification for poor and unserved households.

The Benin Compact will be implemented for a five-year period and is expected to enter into force1 in the fall of 2016. A Millennium Challenge Account entity, Millennium Challenge Account- Benin (“MCA-Benin II” or “MCA”) has been established to implement the Compact program.

MCA-Benin II has been established as a legal entity in Benin and will be governed by a public-private Board of Directors accountable to the President of the Republic of Benin.

1.2 Overview of Scope of Services

MCA-Benin II, serving as the Client, will hire a consulting firm (the “Consultant”) to develop construction designs and technical specifications for reinforcement and rehabilitation to the existing electricity distribution system in and around Cotonou and also in the regional cities of Parakou, Natitingou, Djougou, and Porto Novo, including conducting the Environmental and Social Assessments (“ESIAs”) for this work.

While MCA-Benin II is the Client under this contract, the Consultant shall also work in close consultation with other GoB ministries and agencies that will partner with MCA in furtherance of the Compact program, termed Implementing Entities (“IE”), each of which will sign an Implementing Entity Agreement (“IEA”) with MCA-Benin II. Specifically, the Consultant shall

1 Entry into force (“EIF”) is MCC’s Compact effectiveness period.

work most closely with the Benin national electric utility, Société Béninoise d’Énergie Électrique (“SBEE”), in the execution of these terms of reference.

3.3 1.3 Institutional Arrangements

MCA-Benin II: MCA-Benin II is the Government’s Accountable Entity (“AE”) responsible to MCC for the implementation of the Compact. MCA will procure all goods and services under the Compact, and will enter into contracts and administer all such contracts with the service providers.

MCA is also responsible for managing political processes, reporting quarterly and annual performance data, implementing the Monitoring and Evaluation (“M&E”) Plan, and public relations.

Fiscal Agent (“FA”): The Fiscal Agent is a contractor hired by MCA responsible for handling all the funds provided by MCC. The FA will provide data and information on targets for key process milestones, mainly the commitments and disbursements on key contracts.

Procurement Agent (“PA”): The Procurement Agent is a contractor hired by MCA responsible for managing all the procurement activities associated with the Compact.

Program Environmental, Social, and Management Consultant (“PESMC”): MCA-Benin II will retain the services of a firm to assist it in the performance of its role as the AE as it relates to the infrastructure projects included in the Compact program. Such firm will provide a range of project management and support functions on behalf of MCA-Benin II, including preparation and implementation of Resettlement Action Plans (“RAPs”) for all Compact projects.

Ministère de l’Energie, des Recherches Pétrolières et Minières, de l’Eau et du Développment des Energies Renouvelables (“MERPMEDER”): MERPMDER provides policy oversight over the electric power sector in Benin and will be an IE under the Compact and will be responsible for supporting the implementation of aspects of Compact projects on behalf of MCA.

Autorité de Régulation de l’Electricité au Bénin (“ARE”): ARE regulates the electric power sector in Benin and will be an IE under the Compact and will be responsible for supporting the implementation of specified activities under the Policy Reform and Institutional Strengthening Project on behalf of MCA.

Agence Béninoise pour l’Environnement (“ABE”): ABE is responsible for oversight of the environmental assessment process in Benin and for monitoring and enforcing compliance with environmental legislation and regulations.

Société Béninoise d’Énergie Électrique (“SBEE”): SBEE is the national electricity distribution company and will be an IE under the Compact and will be responsible for supporting the implementation of Compact projects, most notably the Electricity Distribution and Electricity Generation Projects and aspects of the Policy Reform and Institutional Strengthening Project on behalf of MCA.

Communauté Electrique du Bénin (“CEB”): CEB is a bi-national organization, owned jointly by the Governments of Benin and Togo, established in 1968 that provides generation, import, and transmission to the two countries. CEB will be an IE under the Compact and will be responsible for supporting the implementation of specified activities under the Electricity Distribution Project on behalf of MCA.

For a more extensive discussion of the structure of the power sector in Benin, refer to Annex A to this Terms of Reference (“TOR”) -- Overview: Electricity Sector of Benin.

3.4 2.0 BACKGROUND

2.1 Country Background

Benin has a population of 10.3 million, with 36% living below the national poverty line and with a poverty incidence of 35% in rural areas and 27% in urban areas. The economic boom related to increased trans-shipment and high cotton prices have resulted in an average growth rate of 4% over the last decade. However, the continued population growth (3.5% per year over the past decade) has resulted in a net poverty increase. Extreme poverty is concentrated in the north of the country, where food insecurity is widespread. Benin’s agricultural sector, dominated by cotton, accounts for 36% of GDP, employs 48% of the working population, and accounts for 80% of export earnings. The Benin economy is vulnerable to external shocks resulting from swings in commodity prices or policy changes in Nigeria, Benin’s major trading partner.

2.2 Benin Power Compact

The second compact between the GoB and MCC targets lack of electricity infrastructure, a binding constraint to economic growth in Benin, where an insufficient quantity and quality of electricity results in reduced productivity, output, and investment for businesses, less effective delivery of public and social services, and diminished well-being and economic opportunity for households.2 The root causes of these problems lay not only in the poverty of the country but in the policies, institutions, and actors comprising the sector.

The Benin Power Compact aims at addressing these core problems through policy reforms and institutional strengthening, large-scale investments in energy generation and distribution infrastructure, as well as off-grid electrification and is comprised of the follow four projects:

Policy Reform and Institutional Strengthening Project: This project will advance far-reaching policy reforms and strengthen institutions through improved regulation, tariff reform, utility operations and management, energy efficiency, and private investment in power generation. The project advances the compact’s policy reform agenda, including planned conditions precedent.

Electricity Generation Project: This project will increase the amount of effective installed generating capacity in Benin by 78 megawatts (“MW”) – equivalent in

2 Benin completed its first compact in October 2011. The $307 million program included the following projects: (i) modernizing and expanding the Port of Cotonou); (ii) promoting land security; (iii) improving access to capital for micro- and medium-sized enterprises; and (iv) creating a more efficient judicial system.

capacity to one-third of the country’s current peak demand – while helping the country decrease its reliance on unreliable energy imports. This will be achieved through the installation of 45 MW of solar photovoltaic generation and the rehabilitation of 33 MW of thermal and hydroelectric generation infrastructure that will complement the solar investment.

Electricity Distribution Project: This project will modernize Benin’s electricity distribution infrastructure to expand grid capacity to accommodate future growth, improve reliability, and reduce losses and outages. The project will improve the grid serving Cotonou, the commercial capital, selected regional networks as a complement to proposed solar generation investments, as well as on a national level by building a modern distribution dispatch and control center to more effectively manage the network, including intermittent power from renewable sources.

Off-grid Electricity Access Project: This project will expand access to electricity in a country where only one-third of the population has electricity through funding of an off-grid energy grant facility along with policy and institutional strengthening to support the entire off-grid power sector in Benin.

2.3 Electricity Distribution Project

As described in Section 2.2, above, the purpose of the Electricity Distribution Project is the modernization of sections of Benin’s national electrical distribution network to accommodate future growth, improve reliability, and reduce losses and outages. In order to ensure selection of investments that would meet these objectives and improve the voltage profile and reduce the losses in the distribution system, feasibility studies were conducted for MCC to reinforce the distribution network in Benin. Several modifications for network strengthening were proposed to improve the voltage profile and reduce the losses, but also to generally strengthen the distribution network to cope with the expected demand increase. The final feasibility studies will be provided to interested bidders as part of the tender documents.

The Electricity Distribution Project is comprised of the following three Activities and related Sub- Activities:

Regional Grid Strengthening Activity: This activity will replace lines, upgrade substations, install new switchgear connections and build new substations where needed to complement investments in solar power generation (contemplated as part of the Electricity Generation Project) in the cities of Natitingou, Parakou and Djougou.

This activity would also build a new 63 kV connection from Porto Novo to Akpakpa, and build a new substation to improve network capacity and reliability in Benin’s second largest city.

o Natitingou Network Modifications Sub-Activity: This sub-activity is related to and consists of adding a new 161 kV infeed (including 161 kV switchgear and transformer), the installation of a new 33 kV substation (including the approximately ~10 km 33 kV overhead line (“OHL”) connection from

Berecingou) and the optical fiber connection from Berecingou to the Hydro Power Plant (“HPP”) at Yeripao. The new 33 kV substation and the related OHL connection is already under design, but is included in this package to make sure that it is finished when the solar PV plant in Natitingou is built. This connection will be looped-in and out at the site of a proposed PV plant (to be funded as part of the Electricity Generation Project) and is therefore needed to tie that into the system. In addition, designs will be prepared for approximately 80 km of rural OHL MV connections in the vicinity of Natitingou for upgrade from 15/20 kV to 33 kV, along with related transformers.

o Parakou Network Modifications Sub-Activity: This sub-activity consists of network modification work in the Parakou area. It is intended to connect the existing 33 kV switchgear to the grid, upgrade from 20 kV to 33 kV approximately 120 km of rural OHL MV connections in the vicinity of Parakou, replace associated transformers, and install 20 kV connections to the ten largest industrial consumers in Parakou due to the lack of capacity and low reliability.

o Djougou Network Modifications Sub-Activity: This sub-activity is related to the

Djougou area and consists of the upgrade of the existing 161 kV connection to a full 161 kV switchgear, with proper OHL loop-in and loop-out of the lines coming from Kara and going to Parakou. In addition, approximately 140 km of rural OHL MV connections in the vicinity of Djougou will be upgraded from 20 kV to 33 kV and associated transformers will be rehabilitated.

o Porto Novo Network Modifications Sub-Activity: This sub-activity consists of modification works for Porto Novo area and consists of a new 63 kV connection between Porto Novo and Akpakpa including the related switchgear modifications and a new step-down point at D13 (CimBenin) with the replacement of this 15 kV substation. Also planned is preparation of designs for connection of 33 kV switchgear to the rural grid by an overhead line, upgrade of approximately 130 km of rural MV connections in the vicinity of Porto Novo from 15 kV to 33 kV, and replacement of associated transformers.

o General Network Improvements. This sub-activity consist of the installation of new 15 kV compensation equipment for voltage support (reactive power compensation) and power factor correction and the installation of additional sectionalizer switches to isolate outages and reduce time to correct in the 15 kV Cotonou area as well as for reducing feeder length and to increase operational flexibility.

Cotonou Grid Strengthening Activity: This activity would improve reliability of the network in response to the anticipated increase in demand through a variety of infrastructure projects identified as priorities by feasibility studies, including new lines, switchgears, new substations, and city network extension. This activity is divided into two sub-activities, as follows.

3 Note that the C-F feasibility study reversed the names of substations D1 and D2 in their final report.

o Cotonou Capacity Increase Sub-Activity: This sub-activity is intended to accommodate projected increases in demand and consists of network modifications not only related to the distribution network but also some minor but essential modifications to the transmission grid.4 There are four sub-packages associated with the Cotonou Capacity Increase Sub-Activity:

o The first sub-package includes construction of a new 63 kV double busbar switchgear at Vedoko, including new transformers from 161 kV to 63 kV but also from 161 kV to 15 kV levels, in order to separate the infeeds between 15 kV and 63 kV.

o The second sub-package includes a new 63 kV connection between Vedoko and Akpakpa including two new step-down points to 15 kV level at Gbedjromede and Repartition D2 (Croix Rouge).

o The third sub-package consists of a 63 kV cable ring leaving Vedoko and supplying two new step-down points to 15 kV level at Cadjehoun and Fidjrosse.

o The fourth sub-package includes the proposed general distribution network expansion in Cotonou, considering the supply of new consumers including the 15 kV and LV connections as well as the step-down LV transformers. It also provides for 10,000 new connections.5 o Cotonou Reliability Sub-Activity: This sub-activity is again related to the

Cotonou area but more to replacement and upgrade measures for already existing installations in order to improve system reliability. It consists of six sub-packages.

o The first sub-package consists of the transmission grid connection at Maria Gleta HV switchgear, including the addition of new feeders but also two new 161/63 kV transformers. This connection is seen as essential

4 It should be noted that the transmission grid belongs to CEB and certain of the planned investments described herein entail additions or upgrades to or rehabilitation of CEB assets. Those include the following: (i) Natitingou 161 kV connection and switchgear, (ii) the Djougou 161 kV switchgear, (iii) the CEB portion of the 63 kV Vedoko switchgear under the Cotonou Capacity Increase Sub-Activity, and (iv) portions of the 161 kV and 63 kV Maria Gleta switchgear modification under the Cotonou Reliability Sub-Activity.

5 While the Consultant is expected to design the proposed general distribution network expansion in Cotonou, the Consultant is not responsible for designing the program and process for increasing grid density in Cotonou with as many as 10,000 new household connections (service line drops) to the low voltage system beyond suggesting neighbourhoods where such in-fill connections may be needed and are feasible. Design of this portion of the investment program will be undertaken by a separate consultancy and represents an opportunity for targeted social intervention to improve access to electricity on the part of poor households. The number of new connections (whether households or other entities) who gain access to a minimum level of electricity as a direct result of Compact activities will likely be one of the indicators to be tracked as part of the Compact M&E Plan.

from the grid development point of view.

o The second sub-package is considering the replacement of the existing main distribution substation at Ancient Pont, which will be replaced and upgraded to a 63 kV infeed, including the looping-in and out of the 63 kV cable.

o The third sub-package is replacement of the distribution substation at St.

Michel, which needs to be replaced partly due to its age but mainly due to the fact that it will take a central role in distributing energy in this area. A future upgrade to 63 kV infeed is proposed.

o The fourth sub-package is the replacement of the distribution substation at

OCBN (Maersk Building) which needs to be upgraded as it will take a central role in distributing energy in this southern area.

o The fifth sub-package consists of modification to the 63 kV switchgear at

Seme. One 63 kV coupling switch will be installed at the infeed to make the connection between the public busbar section and the industrial busbar section.

o The sixth sub-package consists of modification to the 63 kV switchgear at

Bohicon. The existing 20 MVA transformer should reach its capacity based on the expected demand increase. Additionally, a new 63/15 kV, 20 MVA transformer at Bohicon substation is needed.

Additional details on these activities may be found in the final feasibility study for distribution system rehabilitation and extension completed in 2015 and included with the tender documents.

Interested bidders should take care to familiarize themselves with all aspects of this study. The following table presents the mapping of the activities in this ToR to the ones included in the feasibility study.

MAPPING THE DISTRIBUTION PROJECT ACTIVITIES

IN THE TERMS OF REFERENCE TO THE FEASIBILITY STUDY

Distribution Terms of Reference Description of Activities

Feasibility Study Cardno-Fichtner, July 2015

“Package” Number6

Page Numbers

Regional Grid Strengthening Activity Natitingou Network Modifications Sub-Activity Pkg. 1 2-5 to 2-7

6 In the feasibility study, Cardno-Fichtner used the term package to refer to design elements of the Distribution Project. For purposes of developing procurement packages for the works, the Consultant is not bound to adhere to the C-F packaging approach but rather is requested to recommend an optimal approach to procurement packaging taking into consideration a number of relevant criteria to be discussed.

Parakou Network Modifications Sub-Activity Pkg. 2 2-7 to 2-10 Djougou Network Modifications Sub-Activity Pkg. 3 2-10 to 2-11 Porto Novo Network Modifications Sub-Activity Pkg. 8, part 8.1 only 2-34 to 2-36

General Network Improvements Sub-Activity Pkg. 9 2-38 Cotonou Grid Strengthening Activity Cotonou Capacity Increase Sub-Activity Pkg. 4, parts 4.1 through 4.4 only 2-11 to 2-25

Cotonou Reliability Sub-Activity Pkg. 5, parts 5.1 through 5.6 only

2-27 to 2-32

National Electricity Dispatch Activity: This activity would build a national distribution control (dispatch) center, a necessary requirement to accommodate the planned photovoltaic generation, and to provide real-time network monitoring, control, and data collection. While design services related to the dispatch center are not part of the detailed design work described herein, the Consultant will need to take cognizance of the requirements of the dispatch center.

For example, in existing SBEE substations, Consultant will need to design to allow for connection to Remote Terminal Units (“RTUs”). In new substations, Consultant will need to provide design that includes RTUs with sensors and cabling. MCA-Benin II expects to implement the National Electricity Dispatch Activity through a Design-Build (“D-B”) approach. Tendering for this work is expected to begin in the spring of 2016 so that a D-B contract may be signed immediately upon EIF of the Benin Power Compact. Given the inter-related nature of the dispatch center work and the design work described under this TOR, the Consultant may be called upon to provide construction supervisory services for both the Cotonou and Regional Grid Strengthening Activities as well as the National Electricity Dispatch Activity. This supervision work is described below in this TOR as Option A.

The design services described here are related to the Regional Grid Strengthening Activity and the Cotonou Grid Strengthening Activity.

2.4 Monitoring and Evaluation

MCC places a strong emphasis on Monitoring and Evaluation as part of the implementation of its programs. The M&E plan for the Benin Power Compact will be two pronged: it will (i) monitor the implementation and achievement of Compact outputs and outcomes and (ii) evaluate the Compact relative to its expected long-term outcomes and impacts as well as based on its estimated economic rate of return. The monitoring and evaluation strategies will be memorialized in the M&E Plan and will include a list of monitoring indicators (including detailed definitions, baselines, and targets) as well as detailed evaluation plans and anticipated research questions.

Though some initial information for the M&E Plan is currently available, the full M&E Plan will not be elaborated until late 2016, with the support of MCA and MCC consultants.

The Consultant shall coordinate with the MCA-Benin II M&E team and MCC’s Independent Impact Evaluator to provide any necessary technical input into the elaboration of a final M&E plan by identifying key baseline information for the projects, and providing input on the M&E Team’s development of an evaluation strategy that is coordinated with program implementation plans and schedules. In addition, MCA-Benin II may request the Consultant’s input in identifying necessary equipment or other resources required by MCA-Benin II and/or SBEE to adequately track technical indicators and sample technical performance across the network, before, during, and after the project activities are implemented.

In addition to providing input regarding indicator definitions and baselines for the M&E Plan, in support of MCC’s independent evaluation efforts, the Consultant will be expected to (i) design metering mechanisms for measuring with high frequency (at least once per hour) key electricity delivery statistics (such as, but not limited to, the frequency and duration of outages and voltage quality), and (ii) install the metering system designed under (i) and (iii) train SBEE to take over the maintenance, operation, and reading of the system such that it can both provide data input into the independent evaluation as well as provide on-going monitoring capabilities for SBEE. The design and installation of this metering system would require significant collaboration with MCC’s independent evaluation team.

2.5 SOCIAL AND GENDER INTEGRATION

MCC requires that gender is integrated into the design and implementation of Compact programs, and the evaluation of results. MCC has developed a Gender Policy and the Gender Integration Guidelines, which provide operational guidance on the Gender Integration Milestones (see: http://www.mcc.gov/pages/activities/activity/gender).

One corresponding requirement is the development and implementation of a Social and Gender Integration Plan (“SGIP”) by MCA-Benin II. The SGIP is a plan that clearly lays out the interventions that will be done to integrate gender in the compact components, while determining expected results and identifying specific indicators. The SGIP will be reviewed and updated as needed throughout the Compact lifetime. As the SGIP is largely informed by project development and design, it would be developed and implemented in concert with these activities, including the Consultant’s work.

The Consultant shall cooperate as necessary with MCA-Benin II in its efforts related to the implementation of the SGIP, as well as in the incorporation of provisions related to prevention of Trafficking in Persons (“TIP”) and HIV/AIDS in construction contract documentation.

A Gender Specialist included in the Consultant’s is expected to closely collaborate with the Social Specialist, Resettlement Specialist and Health and Safety Specialist so as to oversee social and gender integration as it relates to the overall delivery of the Consultant’s work. The Gender specialist will ensure that all relevant assessments, plans and monitoring tools identify and address potential risks that may be different for men, women and vulnerable populations. Areas of focus include but are not limited to participating and providing technical input into:

ESIA

o Baseline studies o Development of various operation management plans as described in Task 3

(particularly Social Assessment Action Plan, Health and Safety Plan, Ramsar Site Management Plan, Transport Management Plan, etc) http://www.mcc.gov/pages/activities/activity/gender

TIP risk assessment and TIP risk mitigation plan (if applicable) Public consultations and information Health and Safety Management Relevant deliverables that are produced including bid packages (as relevant)

The consultant will also

2.6 ENVIRONMENTAL AND SOCIAL PERFORMANCE

General investigations related to potential environmental and social impacts were conducted as part of the feasibility studies. A Resettlement Policy Framework (“RPF”) was also developed separately. These documents were prepared during Compact formulation in order to identify the major environmental and social risks related to the proposed Project Activities, including both beneficial and adverse impacts. Formal, detailed ESIAs based on a final design / bid packaging have not yet been completed and are to be prepared as part of this consultancy. The ESIAs, including health and safety issues, will be done separately for each of the two activities described above: one for the Regional Grid Strengthening Activity and one for the Cotonou Grid Strengthening Activity.

In addition, the Consultant is expected to undertake an optimization exercise that will reduce resettlement to the maximum degree possible. This includes advising on the industry standards for Rights of Way and clearances for 63 kV distribution lines for habitation and commercial structures and activities. Technical options that will reduce resettlement (monopole structures or cable burial) should be provided with alternative costs so that a comparison can be made against potential resettlement costs. Thus, while the Consultant is not preparing the RAPs (this will be done by the PESMC), they must retain sufficient resettlement expertise to evaluate resettlement impacts, advise on design alternatives, and modify the design where possible to reduce resettlement.

The depth and breadth of the environmental and social analysis for the individual lines and substations in each of the two ESIAs will depend on the nature of the works, their environmental and social settings, and ABE’s regulatory requirements7. The two ESIAs are expected to contain, but are not limited to, an analysis of climate change impacts and affects, detailed Environmental, Social, Health and Safety Management Plans (“ESHSMPs”) for each site as well as addressing waste management during construction, operation, and decommissioning/closure. Cable-Laying Guidelines will be prepared by the Consultant as a stand-alone document to be included as a section in the construction specifications.

The ESHSMPs prepared for each Activity will include both mitigation measures and the estimated costs of mitigation measures to avoid adverse impacts, offset them, or reduce them to acceptable levels as well as measures to enhance the beneficial impacts. These mitigation measures will also be addressed in design and technical specifications.

The ESIA for the Cotonou Grid Strengthening Activity will include as an Annex or specific chapter

7 Annex 1 of Presidential Decree No 2015- 382 of 09 July 2015, Concerning the Organization of Environmental Assessment specifies the types of projects that require in-depth ESIAs and those for which a simplified ESIA is sufficient.

a Ramsar Site Management Action Plan. In the project influence areas where distribution lines cross the Ramsar site, an assessment of the sensitivity of the site will be carried out and a management / action plan for the conservation of biodiversity will be prepared outlining required mitigation to offset impacts or to enhance Ramsar site protection.

The ESIAs will be submitted to ABE in order to obtain the issuance of the environmental compliance certificate by the Minister for the Environment and are likely to be subject to public consultations with stakeholders. Stakeholder consultations are to be carried out during the development of project specific ESHSMPs and Ramsar site management plan. If a public hearing is triggered during the ESIA preparation, the Consultant will ensure that all required information is available to MCA-Benin II and the Consultant will facilitate implementation and provide support to MCA-Benin II to answer questions submitted during the public hearings.

In addition, an environmental, social, health and safety monitoring program will be prepared for each Activity and be included in the ESIA to monitor the implementation of the Management Plans and EA Certificate Conditions. The monitoring plan will also include the reporting structure, i.e.

the type and frequency of reports.

The Consultant shall ensure that tasks carried out under this consultancy are implemented in accordance with the MCC Environmental Guidelines, the International Finance Corporation’s Social and Environmental Performance Standards, and all Beninese environmental laws and regulations, licenses and permits. MCC approval will be required for the ESIAs, the Cable Laying Guidelines and related documents. The Consultant will collaborate as needed with the MCA- Benin II and the PESMC Resettlement personnel who will oversee involuntary resettlement carried out in accordance with International Finance Corporation (“IFC”) Performance Standard 5 on Land Acquisition and Involuntary Resettlement in a manner acceptable to MCC. The Consultant should be mindful that resettlement compensation and relocation of Project Affected Persons (“PAPs”) is required to be implemented and completed before the start of the construction phase.

Further, the environmental and social, health and safety performance work in this consultancy will need to take into account the results of an assessment of a hazardous material (PCB and hydrocarbon) contamination and remediation work program on the project sites that will also be procured separately.

The Consultant shall be aware of the Stakeholder Engagement Plan and the Grievance mechanism in effect during the Compact period and managed by MCA-Benin II.

3.0 SCOPE OF SERVICES

3.1 Consultancy Objectives

The primary objective of this consultancy is the preparation of detailed engineering designs and construction specifications, development of the ESIAs and the Cable Laying Guidelines, and the preparation of construction tender documents on behalf of MCA-Benin II for the Regional Grid Strengthening Activity and the Cotonou Grid Strengthening Activity, which are part of the Electricity Distribution Project as described above. However, there are also options for construction supervision and monitoring services, which are included as Options A and B, respectively, in this ToR.

This scope of the services is grouped by task under three separate categories:

Base Period – These tasks focus on the development of detailed construction designs/specifications of the distribution works to be implemented in Benin’s electricity system, and the development of the ESIAs, and the Cable Laying Guidelines.

Option A – These tasks focus on construction supervision of the Cotonou and Regional

Grid Strengthening Activities, for which the Consultant shall do the design, and the National Electricity Dispatch Activity, which will be implemented under a Design-Build arrangement. These tasks will need to be carried out if MCA-Benin II chooses to exercise this option.

Option B – These tasks focus on the design of a data collection system to monitor the distribution grid in support of MCC’s independent evaluation and SBEE operations and it will be carried out if MCA-Benin II exercises the option for the design, operation and transfer of the data collection system.

The Base Period and Option A will, by necessity, run sequentially. Option B will run in parallel to part of the Base Period and all or part of Option A. All services under the contract, including both options, shall be completed by the end of the Compact’s five-year term, and the Consultant must understand that time is of the essence in this contract. The Client will exercise options to permit the Consultant to accomplish the deliverables within the time periods identified herein by the end of the Compact term. Failure to so accomplish may amount to a breach of the contract.

3.2 Tasks – Base Period

The Base Period tasks require the Consultant to complete technical studies, fieldwork, data collection, surveys, mapping, and preliminary and detailed design work necessary for the development of technical specifications to be included in bid packages for works according to MCC’s Standard Bidding Documents (“SBDs”) for large works. The Consultant is required to recommend construction works packaging options; however, at a minimum, the Consultant shall prepare at least two separate construction bid packages, one for the Regional Network Strengthening Activity and one for the Cotonou Network Strengthening Activity. The Consultant will also conduct studies to develop a baseline that can be used later for Monitoring and Evaluation as the Compact progresses.

The end result of this process should be the submission by the Consultant of self-standing

Base Period

Option A

Option B

EIF 5 1 2 3 4

specifications, detailed designs, and bills of quantities necessary for the issuance of Invitation for Bids (“IFB”), and to provide instructions to bidders to prepare their bids and to complete the works within the Compact period. This process should also result in updated project cost information that MCA-Benin II can use to prioritize sub-activities if total estimated cost is more than the available budget.

The Consultant shall undertake cost efficiency measures without compromising quality, to include evaluating the use of alternative materials, equipment and technologies. The Consultant shall also evaluate the sustainability of the design including consideration for ability to enforce warranty of new installations, complexity in operating and maintaining engineered solutions, identification of easily accomplished long term needs, and consideration of waste products and access to suitable disposal sites.

Specific Base Period tasks are as follows:

1. Collection of Data and Preparatory Steps

2. Development of Detailed Designs/Specifications, Cost Estimates and Pegging Rights of

Way

3. Preparation of Environmental and Social Impact Assessments

4. Development of Technical Documents for Bid Packages that encompass all aspects of construction, including environmental and social impact management and mitigation measures

5. Consents and Permits

6. Procurement Planning and Tendering Period Support

3.2.1 Task 1: Collection of Data and Preparatory Steps

(a) Document Review. The Consultant shall review and assess existing and available studies, modelling, data and design drawings that are available for the project area.

These documents will be provided to bidders during the proposal preparation period.

These documents include but are not limited to the following:

“Final Feasibility Study for Distribution System Rehabilitation and Extension;

Network Distribution Development and Distribution Dispatch Control Center(s)”.

Prepared by Cardno-Fichtner on Behalf of the Millennium Challenge Corporation, 2015. Together with SBEE (and with CEB, where appropriate), as an initial step the Consultant shall review and verify the designs described in the Cardno-Fichtner (“C- F”) report, and receive SBEE’s (or, as the case maybe, CEB’s) authorization in writing to proceed. The authorization will be required for each design element. In the C-F report, the design elements are called “packages”. The C-F packages are a starting point, and may not be consistent with the design elements that the Consultant will later develop and issue as “bid packages”.

"Bénin II – Cadre de politique de réinstallation – Projet d’accès à l’énergie/Projets routiers, version finale”. Prepared by URS on Behalf of the Millennium Challenge

Corporation, 2015

Hazardous Material Assessment Report (PCB and hydrocarbons), anticipated to be commenced by August 2016.

Other relevant design reports and documents provided by SBEE or CEB.

Relevant codes and standards.

(b) Data Collection and Baseline Study. The Consultant shall collect additional baseline data: base maps and metered data from SBEE, CEB and MERPMDER, updated at the beginning of the project, electricity networks topology, as built drawings of SBEE and CEB buildings and equipment, street layout, general topography, locations of other utilities (water and sewer and telecommunications), population and geology and geotechnical data, design standards, etc. This data should be captured in geo-referenced form in an established Geographic Information System (“GIS”). In addition, the Consultant shall review the general methods of design and construction used in the local area. Where improvements can and should be made, the Consultant shall propose them, but where the local utility authority only has a limited capacity of operation and maintenance experience and/or equipment, consideration shall be taken for those methods.

3.5

3.6 Detailed subtasks include:

1. The Consultant shall work with SBEE to review their single line diagrams, distribution network topology, street layout, and the general topography of the distribution networks of proposed project areas after identification of the substations serving them.

2. The Consultant shall work with CEB to the extent necessary to review their single line diagrams, transmission network topology, and the general topography of their networks in the proposed project areas where investments will be made in their system.

3. The Consultant shall work with SBEE and CEB to review, collect their existing metered data and calculate the following M&E indicators. The Consultant will work closely with MCA-Benin II and MCC to select and prioritize the urban and rural areas to focus on.

Technical Indicators Technical losses in the distribution network % Non-technical losses in the distribution network % Substation capacity in transmission network MVA Substation capacity in distribution network MVA

Line capacity in distribution network MVA Quality of Service Indicators Unplanned power outages in urban areas hr/year Unplanned power outages in rural areas hr/year Power outages in urban areas due to load shedding hr/year Power outages in rural areas due to load shedding hr/year Voltage fluctuations in urban areas, max % Voltage fluctuations in rural areas, max % SAIFI for urban and rural areas8 # SAIDI for urban and rural areas9 #

3.7

4. The Consultant shall carry out a high level sampling of feeders to identify those with particularly high losses, separate technical from non-technical losses, and address typical causes and remedies for technical and non-technical losses. This would cover both load and non-load related technical losses, and non-technical losses. The Consultant will confirm the information found in Annex 2 of the C-F report with SBEE and CEB. The Consultant will update any information contained in Annex 2 of C-F and expand as required.

(c) Design Standards. Before proposing and evaluating alternatives options, it is necessary to set the guidelines and to establish the design criteria upon which these solutions must be designed and constructed.

The Consultant shall review and evaluate the standards recognized locally and internationally for technical design of networks and electric distribution substations, including ensuring voltage within the required range, equipment loaded to standard levels, power factor at optimal levels, and minimum design short circuit ratings for the distribution network, etc. Examples of standards to review and use according to their applicability include those issued by the following entities:

The International Code Council (“ICC”), which is developing a comprehensive set of international codes, such as the International Code against the Fire and the International Energy Conservation Code and others;

The Institute of Electrical and Electronics Engineers (“IEEE”);

IFC Performance Standards;

SBEE and CEB.

8 System Average Interruption Frequency Index - SAIFI - is the average number of sustained interruptions per consumer during the year. It is the ratio of the annual number of interruptions to the number of consumers. However, it may be beyond the capability of SBEE to produce this calculation for some time.

9 System Average Interruption Duration Index - SAIDI - is the average duration of interruptions per consumers during the year.

It is the ratio of the annual duration of interruptions (sustained) to the number of consumers. However, it may be beyond the capability of SBEE to produce this calculation for some time.

The requirements as set forth in both local governmental standards for electrical distribution and environmental projects and funding organizations as required in the financing of this project.

(d) Baseline Mapping. The Consultant shall prepare baseline mapping. Aerial imagery with a resolution of 5 cm or more for each of the two activities will be supplied to the Consultant. In addition, the Consultant shall collect updated topographic maps (including satellite images), planning maps, etc . for the realization of the consulting tasks for the designs. These maps are necessary especially for preparation of accurate baseline maps.

(e) Load Flow Modeling. Review and validate existing load flow modeling for the networks in the proposed project areas performed as part of the feasibility studies funded by MCC and determine the extent to which refinements or extensions of the model are necessary to make it a sufficient basis for detailed design. Some of the proposed work involves expanding substations and this review should also establish load transfer schemes to reconnect circuits to a newly expanded primary substation. Proper considerations and analysis should be carried-out for transformer sizing, overhead primary and secondary conductor sizing, conductor loading limits, conductor lengths, etc.

3.2.2 Task 2: Development of Detailed Designs/Specifications, Cost Estimates and Pegging of Rights of Way

(a) Confirm Feasibility Study Recommendations. Confirm and update scopes of work, cost estimates (to include analysis of life cycle operations and maintenance cost implications), appropriate procurement and implementation strategies that minimize negative impacts on power production and delivery during works, and ensure completion within the Compact period. Identify any issues that could present problems and recommend alternative solutions from those included in the C-F Feasibility Study, along with supporting justification.

(b) Preliminary Engineering Design. Prepare preliminary design reports with detailed performance specifications required for Design, Bid, Build (“D-B-B”) tender documents for works for the Cotonou and regional distribution networks. Realize, based on data provided by SBEE (and CEB, when appropriate), the sub-activity in the development of cartography, site plans and single line diagrams revisions for Cotonou and the regional network. During the preliminary design task, the Consultant shall ensure that designs are not only in conformity with international best practices10, but also the standards of the SBEE (and, where applicable, those of CEB). This task should be an iterative process, which takes into account the findings of the ESIAs and RAPs being developed in parallel, 10 The norms and standards of the International Code Council, International Building Code, the International Fire Code, and the Institute of Electrical and Electronics Engineers are examples.

in order to avoid negative impacts initially, and then minimize them, if possible. All drawings prepared for this solicitation must have a scale of 0:500 or more to clearly show the revisions and additions to the electricity network in Cotonou and the regional network.

Civil works should also be described (site preparation, surface water management, works in Ramsar sites, access roads, landscaping, site security, etc.). As much as possible, the Consultant should include in its typical details locally sensitive and aesthetically pleasing architectural features e.g. in sites fencing.

(c) Final Engineering Design. Prepare final design reports, with final detailed performance specifications for design-bid-build (“D-B-B”) tender documents for works for the Cotonou and regional distribution networks. Detailed Design Submissions shall include detailed design calculations, detailed construction schedules/bill of quantities and drawings. The designs shall be developed iteratively with preliminary designs submitted for comments by MCA-Benin II, SBEE, CEB, and all relevant stakeholders. Comments on the preliminary designs shall be incorporated to produce final designs, as well as an agreed upon updates/refinements to the design criteria. The final designs should reflect efforts on the part of the Consultant to reduce resettlement requirements to the greatest extent practicable.

The drawings to be submitted as part of the detailed designs shall include, but not be limited to the following:

• Electrical Drawings: Single Line Drawings, Protection & Control Drawings, Telecommunication Drawings, Electrical drawings for building services, etc.

• Electromechanical Drawings: Equipment Layout drawings (sections, elevations, plan), Earth Grid Design Drawings, Lightning Protection Drawings, Cable trench layout drawings, Cable tray layout drawings, etc.

• Structural & Architectural Drawings: Plan & Section views, foundation drawings, roof plan & design, etc. for substations, transmission line towers, etc.

(d) Technical Specifications. Prepare detailed performance specifications, for the D-B-B documents (including electrical, environmental, social, health and safety specifications).

Pylon design should prevent bird electrocutions. Also to be included in the specifications will be a set of Cable Laying Guidelines. The Consultant shall discuss and review SBEE’s (and where applicable, CEB’s) standard specifications to ensure that they are appropriate (principally to ensure value engineering). Where changes to the approaches developed in the feasibility study could mean significant cost reductions, the Consultant shall make recommendations to MCA-Benin II accordingly and seek guidance, and incorporate changes in the technical bid documents. As with the preparation of the designs, the preparation of the specifications and the compilation of the supporting technical background documentation shall take into consideration and incorporate the work from parallel activities, e.g., the preparation of the RAPs and the ESIAs and associated management plans.

(e) Cost Estimates and Bills of Quantities. Construction cost estimates should be based on quantities taken from the design and realistic unit prices derived from ongoing or recently completed similar works in Benin and in the region by international and local contractors.

Project costs must also include the costs of construction supervision (as a unique line item), a physical contingency sum based on perceived risk, and a price contingency sum, taking into account appropriate cost escalation factors and the period of time over which the works will be designed, procured, and constructed. As with the preparation of the designs and specifications, the preparation of the cost estimates shall take into consideration costs of mitigation measures and monitoring recommended in the ESIAs and associated management plans. The Consultant shall prepare Bills of Quantities (“BoQs”) based on the various items of work to be executed in accordance with the Drawings and the Technical Specifications. The items in the BoQs shall correspond to the work (pay) items specified in the Technical Specifications.