Strategy__Action_Plan_for_Development_for_the_Senegal_Energy_Project_(Signed).pdf

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OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS 69

TBD MCC-17-RFQ-0075 8/17/2017

Marilyn F. Williams 202-772-6457 9/15/2017

2:00 PM EST

Millennium Challenge Corporation

Contracts and Grants Management Division

1099 Fourteenth Street, NW Suite 700

Marilyn F. Williams PSC Rep MCC

Washington DC 20005

X

541611

$15 Million

N/A

CGM

1099 Fourteenth Street, NW

Contracts and Grants Management Division

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Interior Business Center

Interior Business Center

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7301 West Mansfield Avenue

Lakewood CO 80235-2230

See CONTINUATION Page

This requirement is for:

Strategy & Action Plan Development for the Senegal Energy Sector

This is a combined synopsis/solicitation for commercial items prepared in accordance with Subpart 12.6, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; proposals are being requested and a written solicitation will not be issued.

Continued

See CONTINUATION Page

X x x 1

Taylor J. Wolf

Contracting Officer

MCC-17-RFQ-0075 2

Table of Contents

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 SERVICES TO BE PROVIDED

B.2 PRICING ARRANGEMENT/CONTRACT TYPE

B.3 FUNDING

B.4 SCHEDULE

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 INTRODUCTION

C.2 BACKGROUND

C.3 SCOPE

C.4 OBJECTIVES

C.5 TASKS

C.6 CONFLICT OF INTEREST

C.7 TIMING AND REPORTING

SECTION D - PACKAGING AND MARKING

D.1 PRESERVATION, PACKING, AND MARKING

SECTION E - INSPECTION AND ACCEPTANCE

E.1 Incorporated by Reference: FAR 52.212-4(a) Inspection and Acceptance

SECTION F - DELIVERIES OR PERFORMANCE

F.1 PLACE OF PERFORMANCE

F.2 DELIVERABLES

F.3 REPORTING REQUIREMENT

F.4 ACCEPTANCE CRITERIA

SECTION G - ADMINISTRATIVE - RESERVED

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 ADDENDUM TO FAR 52.212-4 CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS

H.2 ALTERNATE DISPUTE RESOLUTION

H.3 MCC NON-PERSONAL SERVICES

H.4 MCC ALL ITEMS TO BECOME PROPERTY OF THE GOVERNMENT

H.5 MCC KEY PERSONNEL

H.6 QUALITY ASSURANCE AND QUALITY MONITORING

H.7 MCC TECHNICAL DIRECTION

H.8 MCC 52.203-70 CONTRACTOR NON-DISCLOSURE AGREEMENT (JULY 2012)

H.9 MCC 52.209-70 ORGANIZATIONAL CONFLICTS OF INTEREST: PRECLUSION FROM IMPLEMENTATION CONTRACT

(JULY 2012)

H.10 MCC 52.201-70 CONTRACTING OFFICER'S REPRESENTATIVE (COR) AND/OR PROJECT MONITOR (PM)

(JULY 2012)

H.11 MCC U.S. LANGUAGE AND U.S. CURRENCY

H.12 MCC 52.232-70 INVOICE INSTRUCTIONS (MAY 2017)

MCC-17-RFQ-0075 3

H.13 REMOVAL OF CONTRACTOR'S EMPLOYEES (Mandatory Subcontractor Flow Down)

H.14 MCC SUBCONTRACTING GOALS (Not Applicable to Small Business)

H.15 ORGANIZATIONAL OR CONSULTANT CONFLICTS OF INTEREST

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CLAUSES NCORPORATED BY REFERENCE

I.2 FAR 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE

ORDERS—COMMERCIAL ITEMS (MAY 2015)

I.3 FAR 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

I.4 FAR 52.233-2 SERVICE OF PROTEST

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF ATTACHMENTS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

SECTION K -REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

K.1 OFFEROR REPRESENTATIONS AND CERTIFICATIONS - COMMERCIAL ITEMS (DEC 2012)

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 ELIGIBILITY REQUIREMENTS

L.2 GENERAL INFORMATION REQUIRED TO PREPARE QUOTE

L.2.1 FORMAT

L.2.2 ELECTRONIC COPY SUBMISSION

L.2.3 COVER SECTION

L.2.4 PROPOSAL

L.3 POINT OF CONTACT

L.4 DISCREPANCIES

L.5 PROPRIETARY INFORMATION

L.6 PROPOSAL SUBMISSION ABD DYE DATE

L.7 QUESTIONS RESULTING FROM THE RELEASE OF THE RFQ

L.8 52.216-1 TYPE OF CONTRACT (APR 1984)

L.9 52.233.2 SERVICE OF PROTEST (SEP 2006)

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORAMTION

M.2 EVALUATION PROCESS & FACTORS

M.3 AWARD WITHOUT DISCUSSION

M.4 EVALUATION METHODOLOGY

ATTACHMENT 1 Past Performance Questionnaire

ANNEXES

MCC-17-RFQ-0075 4

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 SERVICES TO BE PROVIDED

Strategy and Action Plan Development for the Senegal Energy Sector

MCC requires a contractor to prepare a roadmap, the roadmap will be a strategic document that builds upon the existing vision and goals for the energy sector while presenting strategic alternatives and a series of action plans that help achieve that vision. It will be Senegal’s energy sector roadmap to 2035, presenting a view of how the sector is expected to exist, at certain milestones (time-intervals) up to and including 2035. The roadmap will help to ensure sustainability of the MCC

Compact Program as well as provide a way forward for the Government of Senegal, as it attempts to reduce poverty and accelerate growth, within an increasingly integrated and progressive region. In a period of low oil prices, the Government of

Senegal and MCC find themselves in an advantageous time to undergo such a strategic effort, one that will enable the sector to be prepared if and when the global economic environment becomes less favorable for Senegal.

The approach to formulate the Roadmap is aligned with the Roadmap work first exploiting and contributing to assessments of the sector as well as a proposing an initial list of strategic alternatives. The work will then perform feasibility studies

(through various analyses and consultations), present a final alternative, and develop action plans and other deliverables that will inform the investments that MCC and the Government of Senegal will, together, undertake during the 5-year Compact implementation period.

Note that the Roadmap can also be referred to as the Feuille de Route (FDR), in French.

B.2 PRICING ARRANGEMENT/CONTRACT TYPE

This is a Full and Open Single Commercial Services, Firm Fixed Price Contract

The Consultant shall furnish all personnel, equipment and logistics required to provide the services in accordance with the

Descriptions/Specifications/Statement of Work, and the terms and conditions herein. The total price includes labor and other direct costs to perform all required services.

Item Information: Date of Award through Five (5) Months

ITEM

NUMBER

DESCRIPTION OF

SUPPLIES/SERVICES

AMOUNT

CLIN 0001 – Strategy Development -Senegal Energy Sector Support TBD

SubCLIN 0001a – Task 1 Deliverables as defined in Section F

SubCLIN 0001b – Task 2 Deliverables as defined in Section F

SubCLIN 0001c – Task 3 Deliverables as defined in Section F

SubCLIN 0001d – Task 4 Deliverables as defined in Section F

SubCLIN 0001e – Task 5 Deliverables as defined in Section F

SubCLIN 0001f – Task 6 Deliverables as defined in Section F

SubCLIN 0001g – Task 7 Deliverables as defined in Section F

SubCLIN 0001h – Task 8 Deliverables as defined in Section F

SubCLIN 0001i – Task 9 Deliverables as defined in Section F

Total FFP Amount

B.3 FUNDING

Full funding will be obligated upon award and invoiced based upon the delivery schedule. The Government is not obligated to reimburse and the Contractor shall not incur any costs in excess of the total amount allotted by the

Government to the Contract. The Contractor assumes the risk for any increased costs beyond what the Government

MCC-17-RFQ-0075 5

obligates.

Increases in ceiling or funding amounts shall only be accomplished through direction and/or execution of modifications against the Contract.

B.4 PAYMENT SCHEDULE

The Contractor shall furnish all personnel, equipment and logistics required to provide the services in accordance with the

Descriptions/Specifications/Statement of Work, and the terms and conditions herein. The total price shall include labor and other direct costs to perform all required services. See below the Payment Schedule based upon acceptance and approval of

Deliverables.

Task Number Payments Date Payment (%)

1 Task 1 Deliverables (French) 4 weeks after Contract Effective Date

*To be Invoiced under

1A protocol

1A Task 1 Deliverables (English) 5 weeks after Contract Effective Date

10%

2 Task 2 Deliverables (French) 7 weeks after Contract Effective Date

*To be Invoiced under

2A protocol

2A Task 2 Deliverables (English) 8 weeks after Contract Effective Date

20%

3 Task 3 Deliverables (French and English) 9 weeks after Contract Effective Date

7.5%

4 Task 4 Deliverables (French and English) 10 weeks after Contract Effective Date

5.0%

5 Task 5 Deliverables (French and English) 11 weeks after Contract Effective Date

5.0%

6 Task 6 Deliverables (French) 14 weeks after Contract Effective Date

*To be Invoiced under

6A Protocol

6A Task 6 Deliverables (English) 16 weeks after Contract Effective Date

20.0%

7 Task 7 Deliverables (French and English) 17 weeks after Contract Effective Date

5.0%

8 Task 8 Deliverables (French and English) 20 weeks after Contract Effective Date

22.5%

9 Task 9 Deliverables (French and English) 21 weeks after Contract Effective Date

5.0%

*Contractor shall not invoice until both French and English version are accepted and approved by MCC.

(End of Section B)

MCC-17-RFQ-0075 6

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 INTRODUCTION

The Millennium Challenge Corporation (MCC) is a Federal Corporation created under Title VI1 of the Foreign Operation, Export Financing, and related Programs Appropriations Act, 2004. As a United States government-owned corporation responsible for the stewardship of the Millennium Challenge Account (MCA), MCC works with developing countries to promote sustainable economic growth to reduce poverty. MCC’s work is based on the principle that aid is most effective in countries that promote good governance, provide economic freedom, and make investments in people. MCC provides large grants to a small number of eligible developing countries.

MCC looks at likely distributive effects of projects and, to the extent that data are available to perform such analyses, identifies their beneficiaries and estimates their impact on poverty reduction. Ultimately, MCC seeks significant and measurable decreases in the numbers of poor people and significant reductions of poverty. In addition, MCC-funded projects need to be implemented within a Compact period of five years. Further details on the MCC and its methodology may be viewed at http://www.mcc.gov.

MCC values are CLEAR. We embrace Collaboration, always Learn, practice Excellence, are Accountable, and Respect individuals and ideas. Consequently, we expect both set of contractors to operate under a similar ethic while implementing the activities under their respective terms of reference. Additionally, the Senegal II Country Team expects tasks, deliverables and their related outcomes to allow for being Innovative, Context-oriented, Sustainable, and Incremental.

Strategic alternatives, the roadmap, and action plans should not wholly replicate standard solutions but should express creativity, harness new thinking, and be transformative, where applicable. Components of the strategy that are relevant to global best practices should be employed, but where necessary, the work should be adapted to the Senegalese environment and should complement work being performed and proposed by government (e.g. use of funds for Eurobond issuance planned) and other country stakeholders (USTDA, OPIC, World Bank, G20’s Compact with Africa, etc.) and private sector developments. Any programs, activities, organizations, etc. proposed should allow for their perpetual maintenance as well as adaptability to new sector challenges and evolving customer needs; additionally, action plans in particular should not embrace radical shifts, where not called for; rather they should allow for the sector to build upon successive improvements and take advantage of continuous advances in infrastructure and other technologies.

Also to be noted are MCC’s Environmental Guidelines which adopt the International Finance Corporation (IFC)

Performance Standards on Environmental and Social Sustainability. This is part of continuing efforts to enhance the sustainability and effectiveness of MCC compacts as well as improve our standards for managing environmental and social risks.

Furthermore, MCC has a strong commitment to gender and social inclusion as described in the MCC Gender Policy and

Gender Operational Guidelines. MCC sees its energy sector compacts as an opportunity to enhance operational results by promoting inclusive electricity access and energy solutions that meet the needs of women, the poor and other marginalized groups. Previous MCC interventions in the energy sector have recognized that legal, policy and institutional reforms of ministries and utilities, expansion of electricity and the creation of opportunities for productive uses of electricity all have gender and social inclusion aspects that must be considered in the planning and project development phases. MCC recognizes that a compact must balance financial viability of energy providers but also increasing access to the greatest number of business and households possible through a variety of different ways, from inclusive policies, lifeline tariffs, prepaid meters, to specific projects addressing the needs of vulnerable populations

C.2 BACKGROUND

In December 2015, MCC’s Board selected Senegal as eligible to develop a second Compact program, at which point the

Government of Senegal (GOS) and MCC commenced a Constraints Analysis (CA) to identify binding constraints to economic growth. The goal of the analysis is to determine which factors of a country’s economy are the greatest inhibitors to private investment in order to identify the binding constraints to economic growth.

1 The Millennium Challenge Act of 2003 http://www.mcc.gov/ https://www.mcc.gov/resources/doc/environmental-guidelines http://www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/IFC+Sustainability/Our+Approach/Risk+Management/Performance+Standards/ https://www.mcc.gov/content/uploads/2017/05/mcc-policy-gender.pdf https://assets.mcc.gov/content/uploads/2017/05/guidance-2011001054001-genderintegration.pdf https://assets.mcc.gov/content/uploads/2017/05/Senegal_II_CA_withCover.pdf

MCC-17-RFQ-0075 7

Agreement on the binding constraints was reached between the MCC Country Team and the Core Team in September 2016.

The team identified the following two (2) binding constraints to growth and investment in Senegal:

1. High Cost of Energy and Low Access to Electricity - High cost of energy and to a lesser extent, the unreliability of electricity reduces firms’ cost-effectiveness by increasing costs and uncertainty of production.

2. Distortive Business Policy Environment - Complex and burdensome administrative, regulatory and legal barriers increase the cost of inputs, reduce firms’ profitability, and reduce domestic firms’ incentives to expand or upgrade to more sophisticated or more efficient modes or scales of production.

Compact Development Process The table below is a summary of the main activities conducted by both MCC and country counterparts during the Compact development process.2

Compact Development Process (Up to Compact Entry into Force (EIF))

Partner Country Activities MCC Activities

Phase 1: Startup and Preliminary Analysis (completed for Senegal November 2016)

• Names Compact Development Coordinator

• Establishes Core Team responsible for developing the compact

• Conducts analyses of:

o constraints to economic growth o social and gender inequality o investment opportunity assessment

• Commences initial public consultations

• Assists with and provides feedback on preliminary analyses

• Provides guidance on public consultations and results-focused project design principles and tools

Phase 2: Problem Diagnosis (expected to be completed for Senegal in spring 2017

• Expands compact development team

• Analyzes key root causes of binding constraints

• Defines, develops initial project ideas to address constraints

• Submits Concept Notes

• Supports root cause analysis work

• Commences its own due diligence processes and sectoral assessments

• Reviews, approves Concept Notes for further development (summarized in an Opportunity

Memo)

Phase 3: Project Definition (expected to be completed for Senegal in summer 2017)

• Defines and scopes specific projects and activities

• Builds strong project logic for proposed compact program

• Identifies intended beneficiaries

• Consults stake-holders on project design

• Submits detailed Project Proposals

• Provides formal approval of Project Papers, identifying suitable projects and needed studies (technical, environmental, etc.)

• Can provide 609(g) funding if needed for project development of approved concepts

Phase 4: Project Development (expected to be completed for Senegal in summer 2018

• Conducts feasibility, environmental and other studies3

• Measures expected economic impact

• Identifies risks and mitigation measures

• Conducts full appraisal of projects

• Provides investment recommendation to MCC senior management

• Once agreed, MCC notifies Congress of its intent to enter into compact negotiations

2 For a complete set of MCC Compact Development Guidelines, refer to http://www.mcc.gov/pages/countrytools/tools/compact-development.

3 Often such technical studies are managed by MCC on behalf of the partner country. In this case, MCC would take the lead on preparing terms of reference, managing the procurement process, and managing the consultant. The country partner would participate in all document reviews, along with relevant stakeholders (e.g., the utility or relevant ministry).

http://www.mcc.gov/pages/countrytools/tools/compact-development http://www.mcc.gov/pages/countrytools/tools/compact-development

MCC-17-RFQ-0075 8

• Begins establishing structures needed in implementation

Phase 5: Compact Negotiations and Signing (expected for Senegal in fall 2018)

• Finalizes monitoring and evaluation framework

• Negotiates legal, financial, technical terms of program

• Creates dedicated unit for implementation

• Notifies Congress of intent to negotiate

• Defines budget and commits funding

• Obtains approval of MCC’s Board

• Signs agreements

Phase 6: Pre-Entry Into Force (expected for Senegal in fall 2019)

• Establishes the Millennium Challenge

Account Accountable Entity

• Completes Implementing Entity agreements

• Completes annual budgets and implementation plans

• Completes Terms of Reference/bidding documents as applicable, and work plans

• Pre-qualifies consultants and Contractors for early procurements

• Assists with and provides feedback on the process

• Provides guidance on formation of accountable entity, staffing, budgets, and work plans

• Reviews, provides input to, and approves

Terms of Reference, bidding documents, and pre-qualification documents

At the time of publication of this document, the Senegal II Compact Program is expected to be in Phase 4.

Strategy Development for the Senegal Energy Sector

The roadmap will be a strategic document that builds upon the existing vision and goals for the energy sector while presenting strategic alternatives and a series of action plans that help achieve that vision. It will be Senegal’s energy sector roadmap to 2035, presenting a view of how the sector is expected to exist, at certain milestones (time-intervals) up to and including 2035. The roadmap will help to ensure sustainability of the MCC Compact Program as well as provide a way forward for the Government of Senegal, as it attempts to reduce poverty and accelerate growth, within an increasingly integrated and progressive region. In a period of low oil prices, the Government of Senegal and MCC find themselves in an advantageous time to undergo such a strategic effort, one that will enable the sector to be prepared if and when the global economic environment becomes less favorable for Senegal.

The approach to formulate the Roadmap is aligned with the Roadmap work first exploiting and contributing to assessments of the sector as well as a proposing an initial list of strategic alternatives. The work will then perform feasibility studies

(through various analyses and consultations), present a final alternative, and develop action plans and other deliverables that will inform the investments that MCC and the Government of Senegal will, together, undertake during the 5-year Compact implementation period.

Note that the Roadmap can also be referred to as the Feuille de Route (FDR), in French.

C.3 SCOPE

The scope of this requirement is for the development of the Senegal Energy Sector Roadmap, which will support the formulation of a long term energy sector strategy as well as an associated set of action plans. The Roadmap will serve as a guiding document for the Senegal energy sector in the years up to and including 2035, but will also inform projects that may be financed through the MCC Senegal Compact II program and support its desired outcomes.

Formulation of this long term strategy will take advantage of the following key opportunities:

Developing an energy sector-wide strategy aligned with Senegal’s Plan Senegal Emergent (PSE), supporting the growth and poverty reduction goals of a progressive economy with a per capita GDP of approximately $2,500

(PPP);

Supporting changes needed in the sector as it reaches the 2019 milestone (end of the Period of Transition of the

Senelec Concession contract), allowing further competition within its electricity sub-sector;

https://www.mcc.gov/where-we-work/program/senegal-compact-ii

MCC-17-RFQ-0075 9

Supporting changes needed in the sector as the country begins to join the ranks of gas-producing countries, leading to an ever-growing hydrocarbon sub-sector

Supporting the Permanent Secretary for Energy in the development of the Lettre de Politique de Développement du

Secteur de l’Energie (LPDSE) as it commences its update of strategic objectives and action plans for the next medium term period (2018 – 2023);

Identifying all actions aimed at strengthening the various entities in the energy sector, and in particular the electricity sub-sector, where installed capacity at the electric utility is under 1GW, and generation is heavily dominated by HFO and diesel;

Uncovering any additional policy, regulatory, and institutional reforms that should be enacted to support the energy sector in Senegal and help alleviate the identified binding constraints (and possibly additionally any severe but non-binding constraints); and

Ensuring the MCC program lies within a sector that is truly emergent and progressive.

Other opportunities are expected to include:

Developing carefully considered strategic alternatives that support governance of the sector as well as the roles and responsibilities of its various entities, that can lead to long term affordable cost of and access to electricity nationwide (including per-urban and rural areas) as well as other benefits;

Addressing any critical sector restructuring to be performed in what can be assumed to be an advantageous period of low fuel prices, before what is likely an imminent rise of these prices;

Addressing potentially unforeseen and imminent opportunities and threats in the energy sector, and implementing appropriate risk management systems;

Presenting and applying the best energy sector practices found globally while ensuring alternatives developed are befitting the Senegalese context;

Incorporating the findings and recommendations, as is appropriate, of recent reforms for the energy sector and the

Ministry of Energy and Renewable Energy Development;

Supporting changes needed in the sector as the country continues efforts towards regional integration, taking on the challenges that come with possibly serving as the control area center for its WAPP control area

Supporting development of a policy of diversification of domestic fuel firewood, representing an estimated 55% of the national energy balance, and resulting in an annual loss of 40,000 ha of forests

Capturing ongoing and proposed entrepreneurial activity involving energy and electricity supply in urban, peri-urban and rural areas, for households of various income levels, but focusing on lower income, and for enterprise and industry;

Supporting efforts to work with the private sector to foment strong and inclusive growth and job creation;

Informing the investment in projects that will result from previously proposed opportunities to alleviate the identified binding constraints of (1) the high cost of energy, and to a lesser extent, the unreliability of electricity, and

(2) low access to electricity; and

Meeting MCC environmental and social performance guidelines and gender policy requirements as well as the

PSE’s vision to lead the country on a path to preserve the country’s environment and natural resources (in line with

Senegal’s Intended Nationally Determined Contribution, part of the UN Framework Convention on Climate

Change).

The Senegal Energy Sector Roadmap will heretofore be referred to as the Roadmap or the Feuille de Route (FDR), in

French. Please also note that use of the words “shall,” “should,” “will,” or “must” denote a requirement while use of the words “can” “could,” “may,” or “might” denote a desired or unforeseen outcome.

C.4 OBJECTIVE

A number of planning elements have been under various stages of consideration, development, and execution in Senegal.

They include a vision statement for the energy sector as elaborated by the Plan Senegal Emergent, a set of goals and strategic objectives delineated by the Lettre de Politique de Développement du Secteur de l’Energie (LPDSE), as well as a number of entity-level strategies and roadmaps. One gap that seems to remain is a sector-level strategy that addresses the roles and responsibilities of all entities in the sector, the appropriate means by which those entities should operate and be financed, how those entities relate with each other, and how those entities relate with others outside of the sector, as well as one that is relevant up to 2035 year, the endpoint of the vision established by the Plan Senegal Emergent.

MCC-17-RFQ-0075 10

Tasks under the Roadmap should involve a review and assessment of all of the critical planning elements as well as other related documents, efforts, programs, projects, and ongoing operations (whether they be undertaken by government, civil society, private sector, or other group). The Roadmap should remain mostly at a high sectoral level, focusing on breadth over depth, not necessarily engaging in the development of entity-level strategies. The Roadmap must take those strategies

(e.g. Senelec Strategic Plan Yeesal 2020, World Bank DPO with its Separation of Accounts Activity and associated roadmap, G20 Compact for Africa, ASER Roadmap and Rural Electrification 2020 Strategic Plan, any existing gas master plans or gas-to-power proposals, etc.) into account in the development of the higher-level sectoral strategy. However, it will be expected that the action plans developed at the end of the project may make proposals, whether broad or detailed, regarding the development of or updates and changes to entity-level strategies and relationships held among groups and departments within those entities. Any depth exercised in assessment, analysis, strategic development, and other work performed should be guided by that which can have a significant impact on the cost of energy and access to electricity. Thus for example, if there is an opportunity to improve procurement of fuel and lower non-market fuel costs, work done by the contractors should explore this level of depth within the sector strategy and related deliverables.

In addition to the long term strategy to be developed, this effort will also encompass the development of inputs to the

LPDSE medium term strategy document for the sector. Development of strategy for the medium and long term periods is expected to occur concurrently. In so much as the LPDSE document can be improved upon, work undertaken as part of this effort should propose those modifications to the LPDSE process and end deliverables. Moreover, it can be noted that some of the major differences expected between previous LPDSEs and the Roadmap, with is process and deliverables, is that the

Roadmap (1) is long term, (2) involves detailed action planning, (3) performs additional analysis, (4) explores any restructuring of Senelec, given the 2019 milestone, (5) sheds light on the appropriate relationships among entities, and (6) takes initial steps at proposing the best strategy for reducing costs and meeting rural access levels, two goals underpinning the MCC program.

The use of the word “sector” is used to define the energy sector in its entirety. As defined by the LPDSE, this includes the following sub-sectors: Hydrocarbons, Electricity (including Rural), Domestic Combustibles, Renewable Energy (including

Bio-Fuels), and Energy Efficiency. Any appropriate focus and priority among the sub-sectors can be suggested by bidders but is expected to be determined and finalized as part of the initial set of tasks within the contractor’s scope of works.

Alternatives will be a key concept utilized during strategy development. Alternatives are to be understood as proposals or solutions that fulfill stated goals and requirements, as best as possible, commensurate with certain constraints. It may do so at the lowest possible risk. Additionally, these strategic alternatives are expected to encompass, potentially by sub-sector and/or for the energy sector as a whole:

an organizational model or configuration (as in the case of the electric utility and its bundling of functions);

a design;

an approach;

processes (as in planning and tariff setting);

a set of relationships (as in the case of the various entities in the sector);

a set of directives;

any other structural elements (as per the section below); and/or a combination of the aforementioned.

Furthermore, a critical element of the initial stages of Roadmap Development, before selection of a final alternative, will be the development and/or confirmation of an alternative that is aligned with the Government of Senegal’s current view of how the sector should be organized throughout the years leading up to 2035. This strategic alternative can either be submitted or constructed alongside other alternatives; however, it will be essential that this alternative be evaluated along with others developed by contractors. A second critical element will be that the appropriate Senegalese/Government stakeholder(s) will make the selection of the final alternative, for which to subsequently develop the roadmap and related deliverables. Five alternatives are expected to be considered before a subsequent prioritized recommendation and final selection.

During the development of the Roadmap, contractors must carefully consider the four principles (previously stated) as well as the feasibility of the execution of the strategy (action plans) to be proposed. This feasibility includes those institutional, political, social, technical, legal, financial, and economic, among others. Considerations of challenges and risks to

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finalization of the strategy itself related to schedule (including governmental and Parliamentarian approvals), financing, quality, and reputation must also be made.

As important as strategy development is, execution on the strategy can be extremely elusive for a number of reasons but may be equally as important as the strategy itself. Thus, the Roadmap expressly includes the development of an action plan, informed by the extensive roadmap process and its deliverables, comprising activities linked to previously proposed

Program concepts and opportunities, and backed by financing through Compact Implementation Funds to ensure its full execution.

Milestones and Structural Components

The Roadmap strategy itself is expected to be a set of documents that present Senegal’s energy sector roadmap to 2035. It should comprise a strategy document, alongside one or more infographic documents, that presents a multi-faceted and multi-temporal “alternative” that shows how the sector is expected to exist, at certain milestones (time-intervals) up to and including 2035. Minimum required milestones to be addressed include end-2018, end-2019 (after expected EIF of the

Compact), end-2020, end-2021, end-2022, end-2023, end-2024, end-2025, end-2030, and end-2035.

Contractors drafting the strategy document must elaborate on certain components of the strategy, providing structural clarity for sector entities and other stakeholders. Components are expected to include the following or something similar:

•GoS Action Plan Approval

•LPDSE 2018 Launch

•Presidential Elections

•GoS Action Plan Implementation

•Post-EIF

•Compact Action Plan Implementation

•Post Compact Y1

•Compact Action Plan Implementation

•Post Compact Y2

•Compact Action Plan Implementation

•Post Compact Y3

•Compact Action Plan Implementation

•LPDSE 2023 Launch

•Post Compact Y4

•Post Compact Y5

•Presidential Elections

•Continued GoS Action Plan Implementation

•Continued GoS Action Plan Implementation

•End PSE Vision Year

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Notably, the 1998 Senegal Loi 98-29 legalized broad reform in the electricity sub-sector, among other things:

creation of the Commission de Régulation du Secteur de l’Electricité (CRSE) and l’Agence Senegalaise d’Electrification Rurale (ASER) establishing a system of licensing (generation and sale/supply) and concessions (transmission and distribution) proposing a separation of accounts at the Senelec utility confirming Senelec as being “l’acheteur unique” (or single buyer) and alone being authorized to engage in wholesale electricity purchase, transmission and wholesale electricity sales (Article 19)

Senelec also had exclusive title to be the low and medium voltage distributor of electricity within a certain perimeter. The

1999 Concession Contract with Senelec further solidified these plans for reform, supporting the “progressive opening / liberalization of the electricity sector” and making provisions for some level of privatization. It established a period of exclusivity of ten years confirming the single buyer status of Senelec, as well as a period of transition of ten years subsequent to the period of exclusivity, wherein Large Customers could purchase electricity from Senelec or any other licensed entity. As this period comes to an end, it will be important to provide further direction and policy for the sector as it regards the roles and responsibilities (function), structure (operation), and financing of key entities like Senelec and its relationships with other sector entities. What would a restructured Senelec look like, in the short, medium, and long terms, for example? Thus, establishing this sector strategy for 2035 is understood to be of utmost importance, due to its ability to meet the aggressive goals already established for the sector as well as the vision set for the nation, if developed properly.

Contractors drafting the strategy document must also elaborate on prerequisites and resources needed to realize the strategy at particular milestones along the way to 2035. These resources should detail funding sources, training, organizational capabilities, established processes and procedures, policy implementation, regulatory implementation, associated technical and infrastructure improvements, etc.

Different combinations of components are expected to be relevant at different milestones, given, among other things, the vision and goals expected to be met at the 2035 endpoint, analysis performed, resources needed and available, and the general feasibility of the various alternatives. The roadmap should be clear on what is expected to be achieved at each point in time, as this is related to the vision, goals, strategic objectives, key performance indicators, status of each component, etc.

Thus, for example, two alternatives could be ones that present Sector Alternative A and Sector Alternative B, in 2035, with A and B being radically different states of the sector in 2035, in terms of the strategic components; however, two alternatives could also be ones that present Sector Alternative A1 and Sector Alternative A2, in 2035, with A1 and A2 utilizing different paths and reaching different KPIs at each milestone, though eventually arriving at the same state in 2035.

The following section presents scope of work and inputs of the Roadmap. Tasks therein address the question “where is the sector now,” establishing an assessment of the sector, develop a definitive response to “where does the sector need to go,” proposing various alternatives and facilitating the selection of one, and detail “how will the sector get there,” elaborating a set of action plans for the sector.

Function

• roles and responsibilities of entities as well as of consumers

• examples: planning, rural electricity distribution, productive and efficient consumption of energy, net metering

Operation

• operation and organization of entities, including any necessary bundling and unbundling

• examples:

wholesale / single buyer, private retail supply

Financing

• financing, capitalization, and ownership of entities

• examples: public ownership of TSO, increased private ownership of generation, leasing options of private T&D to TSO and

DSO

Intra-Sector Relationships

• details of interaction among entities in the sector

• examples:

information flows from entities to regulator, coordination during iterative generation expansion planning processes

Inter-Sector Relationships

• details of interaction between sector entities and others in government / public

• examples: customs exoneration of strategic power equipment imports, land for solar installations, data sharing with urban planners, better coordination on electrification investments

Intra-Regional Relationships

• details of interaction between sector entities and those within the region / Africa

• examples: operating and planning within the WAPP market, information sharing and standards adoption with AFSEC, peer review among counterparts http://www.crse.sn/upl/Loi-1998-29.pdf http://www.crse.sn/upl/ContratConcessionSenelec.pdf

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It should be noted that many of these tasks and their sub-tasks are not expected to follow a sequential-only logic. It is expected that many aspects of these tasks can be done in parallel. Constant engagement and informal reviews with key stakeholders throughout the entire process will be critical, in advance of formal reviews.

C.5 TASKS

Task 1 - Conduct Preliminary Assessment and Provide Inception Report

It is expected that the contractor would have been knowledgeable about the various entities, strategy-related documents, performance improvements (actual and planned), other ongoing changes, etc. for the energy sector in Senegal; however, this first task allows the contractor to supplement that knowledge through a preliminary assessment and subsequent development of an inception report that will guide the remainder of the project’s implementation. This preliminary assessment should capture any new changes within the sector, take into account complementary projects under development or implementation, and confirm the relevancy of the contractual scope of work, proposing critical changes where necessary, while respecting the budget, schedule, and other aspects of the contract. Getting ahead of these constant and new developments, the Roadmap work, with its eventual deliverables, should eventually establish itself as the principal guiding and coordinating force to which all sector activity will hopefully align themselves.

The assessment should also confirm any level of focus to be applied among the various energy sub-sectors as well as among the analysis, roadmap development, and action plan development sets of tasks, while respecting the budget, schedule, and other aspects of the contract. It is expected, however, that a significant level of effort be allotted to the electricity sub-sector

(comprehensive of the analysis, roadmap development, and action plan development) as well as to the hydrocarbon sub-sector.

As part of this task, the contractor shall generally mobilize and initiate the project; the contractor shall also establish strong relationships with the relevant committee(s) representing the energy sector and begin to work closely with other appropriate stakeholders as part of this task. Working with the relevant committee(s) and stakeholders shall continue throughout the duration of the project.

Other sub-tasks shall include the following:

Providing/confirming a detailed methodology, addressing, among other items:

o strategy components to be utilized in definition of the alternative o the number of alternatives to be considered, proposed, and presented before recommending one, and allowing the GoS to select one (a minimum of 5 alternatives are expected) o analysis to be performed and procedures to be followed in selection of alternatives o modalities of the consultation, validation, and other sessions, with objectives of each session o means through which key personnel, acting individually and/or together among the team, holding separate and/or joint session with key stakeholders, will address each sub-sector separately and/or jointly throughout the process o means of record keeping and journaling interactions with relevant individuals o means of facilitating and generally organizing the sessions to attain maximum participation and engagement o means to achieve consensus, obtain approval, and/or generally make decisions while engaging with the various stakeholders, etc.

o means to transmit deliverables in the languages requested, within the time frame and at the frequency needed o practices employed to review the large amount of contractually required and other documents, attain a profound understanding of the sector, respond to comments, reflect on strategic questions, problem solve, work within tight deadlines, interact with key stakeholders with some being at the ministerial or higher level, successfully integrate key and other personnel who may not have worked with each other previously, and generally execute

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o the ability to incorporate the four principles being Innovative, Context-oriented, Sustainable, and

Incremental in strategy development

Performing any necessary due diligence, including, but not limited to, the following:

o Supplementing knowledge of the energy sector by reviewing any relevant documents, strategies, plans, presentations, reports, program papers, laws, regulations, assessments, studies, financial and budgetary documents, contracts, etc.

o Considering feedback and input obtained through any previous due diligence or other efforts associated with the Roadmap work o Utilizing as input and archiving for owner inspection a number of documents deemed relevant, by MCC or the contractor, to development of the selected sector alternative and the resultant Roadmap; developing and making additional document requests to support subsequent tasks of the statement of work; provide a synthesis of the documents, in preparation of the forthcoming analyses and alternative selection o Confirming all sector entities to be addressed through or from which to obtain input for the financial (or other) models o Confirming all sector entities to be targeted for or from which to obtain input for the sector (financial or other) models

Addressing additional processing, development, and formatting of deliverables, including, but not limited to, the following:

o Proposing an outline for the various reports, include those related to the selected alternative o Proposing an outline as well as several alternative designs/layouts for the roadmap strategy document(s) o Proposing an outline for the LPDSE document, improving upon prior versions if possible o Proposing an outline as well as several alternative designs/layouts for the action plan document(s) o Proposing templates for the financial (or other) models that allow for the various specifications in Task 2.

o Proposing other outlines and layouts as necessary o Proposing a framework and specific examinations to be performed as part of the earnings analysis to be conducted in Task 2.

Engaging with stakeholders, including, but not limited to, the following:

o Holding initial meetings with stakeholders as necessary o Preparing the appropriate persons within stakeholder entities for possible reviews and intimate interaction with intermediate and final analysis and other documents o Establishing/confirming focus and priority among sub-sectors to be applied during strategy development o Confirming relevant vision, goals, objectives, long-term electricity demand growth, any broader energy demand growth, un-constrained/unmet demand assessments, evaluation measures, indicators, and other strategic elements stemming from the Government of Senegal and the MCC Compact Program; developing a plan within the scope of the project to revisit these elements, as necessary; considering other relevant goals that the Roadmap must address to ensure its success (including currently severe but non-binding constraints that could become binding in the future) o Considering the development of an energy policy that promotes alternative cooking energy sources in the face of an increasing scarcity of firewood and the annual loss of nearly 40,000 ha of forests o Establishing/confirming the Business As Usual (BAU) alternative and/or the selected Government’s alternative (if different from a BAU), insofar as it exists in some level of completeness, and as defined by the various structural components as well as the expected states of the alternative at each roadmap milestone o Reviewing or sharing/positing any number of initial alternatives that could allow the vision and various goals and objectives to be met

Conducting other important preliminary assessments and completing other sub-tasks, including, but not limited to, the following:

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o Assessing and analyzing the gap between the current state and the vision/goals, as needed o Assessing changes expected in the sector out to 2035, as well as the regional (energy and broad economic) context o Assessing internal changes needed in the sector and among its entities (current and future) to meet vision, goals, and existing entity strategies o Assessing changes needed in the way entities in the sector relate with those outside the sector and within the region, so to meet vision and goals o Revisiting/conducting of any multiple attribute decision making (e.g. Dominance, Conjunctive, Maximin, TOPSIS, ELECTRE, Simple Additive Weighting) performed to accommodate the various quantitative (and possibly qualitative) goals and attributes that will define each alternative o Proposing/confirming scenarios, with their various assumptions and outcomes, within which to develop financial model and perform other assessments in Task 2.

o Performing/reviewing stakeholder analysis including, but not limited to, that related to specific individuals

(not general entities or organizations) to be consulted at various stages/tasks of the project, previous and active funders and supporters of sector entities, reasons for inclusion of a particular stakeholder, etc.;

developing/reviewing a stakeholder map/matrix serving as a guide during roadmap and action plan development, noting who will affect or be affected by proposals made through the Roadmap o Considering gender and social inclusion disparities in the sector and gender and social inclusion issues within the Ministry of Energy that can be addressed through strategy or subsequent action planning o Assessing feasibility deal breakers (inadmissible and absolutely intolerable facets of an alternative that might create an impasse to strategy development) and of risks to the viability of success for certain alternatives o Considering the need for and propose development of an Energy Information System (SIE), or something similar, as that proposed by the World Bank, in order to track activities,…