RFI-114-23-00002 - USAID_Georgia Green Transport and Logistics Program.pdf

SUBJECT: Request for Information: USAID/Georgia Green Transport and Logistics Program

ISSUANCE DATE: December 27, 2022

CLOSING DATE: February 17, 2023

CLOSING TIME: 10 a.m. Tbilisi Time

DOCUMENT NUMBER: RFI-114-23-00002 – USAID Georgia Green Transport and Logistics Program

TO: General Public

The United States Agency for International Development (USAID) is seeking comments and responses from interested parties to questions regarding a potential new activity as described in the following pages. The purpose of this Request for Information (RFI) is to conduct market research, determine the interest of capable organizations to provide USAID/Georgia with technical and advisory services, and request comments and recommendations from stakeholders to identify ways we can work together to improve the Georgian transport and logistics sectors to increase the volume and value of people and goods transiting Georgia, while decreasing the cost, time, and environmental footprint of transit systems.

This is an RFI, not a Solicitation or Request for Proposals. It is not a commitment by the US Government to issue any solicitation or ultimately award a contract on the basis of this RFI nor does it commit the Government to pay for any costs incurred in the preparation or submission of any comments.

USAID intends to host an online pre-solicitation conference for interested organizations and stakeholders for this RFI in February, prior to the response deadline. Additional details related to this conference, including date, time, registration requirements, etc. are forthcoming and will be posted as an amendment to this announcement.

Any funding proposals submitted in response to this request will not be considered. Responses to this notice must be received no later than the due date and time stated above in this notice. All materials submitted will become the property of USAID and will not be returned. USAID reserves the right to use any/all information provided by respondents for USAID’s own purposes. While it is not the intention to make public any response to this RFI, proprietary and sensitive information should not be sent.

Further note that responding to this RFI will not give any advantage to any organization in any subsequent procurement.

Sincerely, Samuel Kraegel Regional Contracting Officer, USAID/Caucasus

29, Georgian-American Friendship Avenue Tbilisi 0131, Georgia Tel: (995 32) 254 4000 Fax: (995 32) 254 4145 georgia.usaid.gov

Response Considerations

All responses to this notice must be in English and should include the following:

1. Cover page not to exceed one (1) page including:

a. Organization name and address;

b. Point of contact name, telephone number and e-mail address;

c. Organization Business type and status – US-based, International, Local (Georgian);

For-Profit/Not-For-Profit; Small, Medium, Large; etc.

2. Responses to Questions/other comments and suggestions (no page limit)

a. Organizations are invited to respond to any/all questions listed in “Attachment 2 - Questions” and provide any other comments or suggestions they may have pertaining to the information included in this notice.

Additional Notes/ Instructions

Responses to this RFI should be provided in Word or PDF format via email to: TbilisiRCO@usaid.gov no later than the due date and time stated above. Please include the RFI number, RFI-114-23-00002, and your organization’s name in the email subject line.

mailto:TbilisiRCO@usaid.gov

Attachment 1 - Description and Problem Statement

Description

The USAID Green Transport and Logistics Program seeks to support the Georgian transport and logistics sectors to increase the volume and value of people and goods transiting Georgia, while decreasing the cost, time, and environmental footprint of transportation systems. Special emphasis is placed on the opportunities and challenges brought by the increase in transport across the Middle Corridor; the requirements of the EU Association Agreement; adapting to the anticipated impacts of global climate change; and, reducing the environmental impact of the targeted sectors. All must be conducted with close collaboration and integration of the private sector, the Government of Georgia, and other relevant stakeholders, including international donors.

Preliminary Problem Statement

The Government of Georgia has focused on Georgia’s role as a trade hub for the region for the past decade; 50% of goods entering Georgia are for transhipment. The Government has identified the need for increased support for ports, rail, and roads, primarily along the East-West highway connecting Azerbaijan and the Caspian Sea with Turkey and the Black Sea. Major infrastructure investments are ongoing, especially for roads, though they are insufficient to meet the total demand for cross-country transport and trade. Further, the COVID-related disruptions in shipping are being greatly exacerbated by Russia’s invasion of Ukraine; trade in ports has increased by 25% since the beginning of the conflict, with increased demand from Central Asia. In order to address the increased transhipment demand, both the Government of Georgia and the private sector must be able to plan, implement, and manage national strategies related to trade, logistics, and environmental concerns.

Simultaneously, Georgia has made significant pledges to improve factors related to transportation, logistics, and climate, through its EU Association Agreement Requirements, and its Nationally Determined Contributions (NDCs) under the Paris Climate Agreement. This includes improvements in Railway Reform, Road Safety, and Intercity Bus Formalization, all while reducing greenhouse gas emissions by 50-57% by 2030 compared to 1990 levels. As the transportation sector contributes approximately 30% of national GHG emissions, while fuel costs continue to rise, this presents an opportunity for Georgia to jumpstart the transition to a zero emissions transportation future. Such a transition would further help Georgia meet its Air Quality requirements under the EU Association Agreement, as in Tbilisi alone, the Ministry of Environmental Protection and Agriculture estimates that 90% of air pollution is due to vehicle emissions.

In order to take full advantage of new opportunities in transport and logistics offered by the increased focus on the Middle Corridor, Georgia, its government, its private sector, and its populace must reform the way goods and people are transported, especially along the East-West highway and between cities. This will require significant contribution and collaboration between the Government of Georgia, international partners, IFIs, and the private sector.

Guiding Principles

The project will build upon the previous U.S. Government, Government of Georgia (GoG), and other donor-supported achievements in transport, logistics, climate change mitigation and adaptation, and economic growth in Georgia. USAID/Georgia works closely with the Ministry of Economy and Sustainable Development (MoESD), the Ministry of Environmental Protection and Agriculture (MEPA), the Partnership Fund, the Ministry of Rural Development and Infrastructure (MRDI), and other GoG ministries and agencies with a mandate to contribute to the environmentally-minded development of the transport and logistics sector.

To adequately respond to Georgia’s interwoven economic, geopolitical, and climate paradigm, activities and interventions within the scope of the Green Transport and Logistics Program should be aligned with climate resilient sector strategies, including Georgia’s 2030 Climate Change Strategy, the Georgia National Energy and Climate Plan, and Georgia’s commitments under the EU Association Agreement and Paris Climate Accords.

Significant co-investments to improve the efficiency and reduce the environmental footprint of the logistics and transportation sector in partnership with the Georgian government, private sector, and other partners is necessary.

The Green Transport and Logistics Program must leverage and complement other donor investments in the sector, including building upon USAID/Georgia’s extensive partnerships with the Development Finance Corporation (DFC), international financial institutions IFIs, domestic and development banks, and the private sector. Current USAID/Georgia programming has demonstrated that opportunities are ripe for sustained private sector engagement in transport and logistics. Co-created solutions and cost-share grants with private sector partners are critical to unlock private resources, and help the private sector improve infrastructure and access modern technology needed to reach program goals.

The intended project will support nationwide activities in Georgia. The anticipated program will support USAID/Georgia’s Strategic Development Objective 3- Inclusive High Value Employment Opportunities Provided Through Expanded Access to Diverse, High-Value Markets (found at https://www.usaid.gov/georgia/cdcs), as well as USAID’s Agency Wide Climate Strategy 2022-2030 (found at https://www.usaid.gov/climate/strategy).

Objectives

The purpose of the USAID Green Transport and Logistics Program is to support the Georgian transport and logistics sectors to increase the volume and value of people and goods transiting Georgia, while decreasing the cost, time, and environmental footprint of transportation systems. This will allow Georgia to take advantage of shifting regional trade routes to grow and create jobs while moving closer to EU Association Agreement requirements, NDC achievement, and improved air quality. The program will achieve this through a holistic approach that:

1. Strengthens the Government of Georgia’s ability to plan, implement, and manage national strategies related to trade, logistics, climate change, and air quality.

2. Strengthens the ability of the Georgian private sector to meet new requirements and regulations, including as part of the EU Association Agreement, and to take advantage of new opportunities in transport and logistics offered by the increased focus on the Middle Corridor.

3. Improves standards across the transport and logistics sector to international levels, including for road safety, air quality, and efficiency.

The Program may include work on both passenger transport and movement of goods, and both components are expected to have significant private sector engagement (PSE) and digitalization elements. Following consultations, movement of goods is expected to focus on the east-west thoroughfare, the ‘Middle Corridor,’ and will be focused on road and rail, though it is not restricted from engaging in air and sea transport. Movement of people will focus on strengthening the ability of cities to provide for/enable low emissions public transport, supporting the reforms to intercity travel required by the EU Association Agreement, and changes needed to achieve international environmental commitments. This may include work in major cities in collaboration with other donors, and/or in strengthening or establishing new systems in secondary cities. Given Georgia’s changing political and economic landscape, and the presence of donors in adjacent sectors, the Program will be implemented using adaptive management.

Theory of Change: IF increased trade is facilitated through improved transport and logistics, IF passenger transport safety, quality, efficiency, and environmental sustainability are improved, and IF we build the capacity to implement air quality and climate reforms and achieve targets, THEN Georgia’s economic growth and employment will increase while bringing the country closer to EU Association Agreement requirements and meeting its international commitments for climate change.

Illustrative Indicators

● EG. 12-7: Projected greenhouse gas emissions reduced or avoided from adopted laws, policies, regulations, or technologies related to clean energy as supported by USG assistance.

● EG. 12-5: Amount of investment mobilized (in USD) for clean energy as supported by USG assistance https://www.usaid.gov/georgia/cdcs https://www.usaid.gov/climate/strategy

● Amount of investment leveraged to improve transportation and logistics within Georgia

● Number of policies, plans, or regulations developed, to advance transportation resources and systems

● Number of beneficiaries with improved transportation services due to USG assistance

● Number of transport and logistics related enterprises strengthened

Wider landscape factors beyond the Program’s direct control will also be monitored, such as:

● Volume and Value of Goods and People Transiting Georgia

● Cost and Time per unit for Goods and People Transiting Georgia

● Carbon Dioxide and other GHG emissions per unit of Goods and People Transiting Georgia

● Compliance with EU Association Agreement requirements & international climate change commitments

Attachment 2 - Questions

USAID seeks input, comments, and recommendations for the questions below. Interested parties may respond to any or all of the following and/or provide any additional feedback on program design or implementation they consider useful for USAID’s consideration. This is not a formal question period and USAID will not provide responses. The USAID design team will review all comments and questions and use them to inform the further design and development of the activity.

1. USAID is considering using the Statement of Objectives (SOO) model for this procurement to encourage innovation and creative approaches to achieving the stated objectives. However, USAID is willing to reconsider its approach based on the feedback received through this RFI. Would you recommend the use of a SOO or Statement of Work (SOW) and why?

2. Do you have any recommendations for refining the high level objectives? Given the problem statement, what types of interventions would you propose to achieve the stated objectives?

3. Where do you see the biggest gaps in Georgia’s existing logistics services? What is needed to help address these gaps?

4. Where do you see the biggest gaps in Georgia’s intra- and intercity passenger transport services? If and how do these differ across primary and secondary cities? What is needed to help address these gaps?

5. With the differences between primary cities, secondary cities, and more rural areas and small towns, how would you prioritize support across the country?

6. How can long-term private sector partnerships be built into activities developed by the program? What is the level of interest from the Georgian private sector in playing a central role in Program activities?

7. What approaches and incentives could be used to leverage significant co-investments in Georgia's transport and logistics sector from the private sector, IFIs, and public sources? Given the size of the program, what amount of investment mobilized would you expect to see from these approaches?

8. Where are the most significant institutional gaps within the Government of Georgia’s management of the transport and logistics sector? Who are the most important institutions to partner with and how can USAID best support addressing these gaps?

9. Where in Georgia have low emissions transport and logistics solutions been implemented and what specific actions can USAID take to scale up those existing solutions?

10. Can you describe your institutional experience with low emissions transport and logistics solutions in other development contexts regarding the three objectives of the Program? What specific actions can USAID take to enable the introduction of those solutions in Georgia?

11. What indicators would you recommend for tracking the high-level results, outcomes, and impact in the transport and logistics sector?

12. How could established and emerging technologies be leveraged to accelerate achievement of the stated objectives and to amplify program impact? What are the current technology and digital transformation gaps?