SOL-176-17-000002.pdf

SOL-176-17-000002

SOLICITATION, OFFER AND AWARD

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

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

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

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

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

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C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

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INFORMATION

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

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

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

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

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CONTRACT ADMINISTRATION DATA

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INSPECTION AND ACCEPTANCE

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SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

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11. TABLE OF CONTENTS

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

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

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

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

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

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

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

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

OFFER (Must be fully completed by offeror)

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

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

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

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

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

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

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

AWARD (To be completed by government)

CODE

REQ-176-17-00002003/01/2017

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CENTRAL ASIA_ASIA

USAID/Central Asia 41 Kazibek Bi St.

Almaty 050010, Kazakhstan

1000 UT 04/17/2017

Olga Ekkert +77 12x6292 oekkert@usaid.gov

272-5076

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PAGE(S)

Jonathan Chappell

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

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6-22 23-24 25-25 26-30 31-34 35-51

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ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

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CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

SOL-176-17-000002

(A) (B) (C) (D) (E) (F)

0001 USAID Power the Future Activity

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

NSN 7540-01-152-8067

USAID/Central Asia

Power the Future

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this Contract is to provide services that fall within the Statement of Work (SOW) specified in Section C of the USAID/Central Asia Power the Future IDIQ Contract.

USAID Task Order Contracting Officers (TOCOs) will order services through the issuance of task orders during the ordering period as specified in Section F of the contract.

B.2 CONTRACT TYPE AND SERVICES

This is an Indefinite Delivery, Indefinite Quantity (IDIQ) type contract. The Government will issue task orders that are either Cost-Plus-Fixed-Fee (CPFF) (term or completion) or Fixed- Priced type. The Contractor will furnish the services set forth in task orders at terms consistent with the terms specified in this contract.

B.3 MINIMUM OBLIGATED AMOUNT

The basic Contract includes an initial obligation of funds in the amount of $25,000 to cover the minimum order guarantee. USAID is required to order and the Contractor is required to furnish the minimum order amount of services.

Following this initial obligation, individual task orders will obligate funds to cover the work required under that task order.

B.4 MAXIMUM CONTRACT CEILING

This is a single award Indefinite Delivery, Indefinite Quantity (IDIQ) Contract with an overall ceiling price of $24,000,000 for the USAID/Central Asia Power the Future IDIQ. The maximum aggregate dollar value of task orders must not exceed the Contract ceiling.

B.5 LABOR

(a) Central management costs will be handled through the following method:

The Contracting Officer has determined that a full-time key personnel position is not necessary or required to administer the IDIQ. Contractors will not be authorized to bill USAID directly for IDIQ management costs under this IDIQ or under task orders. Contractors must adopt a centralized management structure that allows for recovery of IDIQ management costs as part of its indirect costs.

(b) The workday and workweek policies and method of accounting for paid absences including holidays for the contractor and major subcontractors must be in accordance with the Contractor’s organizational policies and acceptable accounting procedures which should be compliant with the Office of Management and Budget (OMB) cost principles and the terms of this contract.

Power the Future

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

B.6 INDIRECT COSTS

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

Description Rate Base Type Period

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

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

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

1/ Base of Application:

Type of Rate:

Period:

2/ Base of Application:

Type of Rate:

Period:

3/ Base of Application:

Type of Rate:

Period:

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

B.7 CEILING ON INDIRECT COST RATES

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

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

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

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

(c) Reimbursement for indirect costs will be at final negotiated rates, but not in excess of the

Power the Future following ceiling rates for each fiscal year:

Indirect Cost Type FY 16 FY 17 FY 18 FY19 FY 20 FY 21 FY 22 (contractor’s FY)

1. [TBD]________ _____ _____ _____ _____ _____ _____ _____

2. [TBD]________ _____ _____ _____ _____ _____ _____ _____

3. [TBD]________ _____ _____ _____ _____ _____ _____ _____

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

NOTE: For Fixed-priced Task Orders, the overhead ceilings serve as a basis for negotiation only.

[END OF SECTION B]

Power the Future

SECTION C – DESCRIPTION / SPECIFICATIONS/STATEMENT OF WORK

C.1 PURPOSE

The purpose of this four-year IDIQ is to provide services that fall within the Statement of Work (SOW) specified here in Section C for USAID/Central Asia’s Power the Future (PtF) activity, which will directly support Development Objective Two under the Mission’s Regional Development Cooperation Strategy (RDCS): “Enhanced regional cooperation on shared energy and water resources.” The Contractor will provide activities that support specific work under Task Orders across the five countries of Central Asia. USAID Task Order Contracting Officers will request the work through the issuance of Task Orders during the ordering period as specified in Section F of the Contract.

The goal of PTF is to accelerate the regional transition to cost effective, low emission, climate resilient economies. This will be achieved by implementing key nationally determined contributions commitments through increasing the deployment of renewable energy and energy efficiency (clean energy) in all five Central Asian countries, while improving their ability to meet, track, and develop more ambitious commitments to GHG emissions reductions.

While this activity is regional in nature, supporting climate change mitigation efforts across the five countries of Central Asia, the clean energy development and emissions accounting and NDC work will be most robust in Kazakhstan, as the country has the largest share of the region’s total greenhouse gas (GHG) emissions, and has taken more steps to address climate change and clean energy policy innovation.

PtF will work in each country of Central Asia, following international best practices, to create effective enabling environments for private sector investments in renewable energy (RE) that account for the low wholesale and retail electricity prices that are common throughout the region.

PtF will also support development of policy and regulatory preconditions for investment in RE and energy efficiency (EE).

C.2 BACKGROUND

GHG Emissions and NDCs in Central Asia

The United Nations Framework Convention on Climate Change (UNFCCC) is an international environmental treaty negotiated in 1992, now with 197 Parties. UNFCCC’s goal is to combat climate change by limiting average global temperature increases and helping vulnerable countries cope with impacts, with the 2015 Paris Agreement representing a major milestone in this effort. The Agreement aims to strengthen the global response to the threat of climate change by keeping the global temperature rise this century to well below two degrees Celsius above pre-industrial levels. Achieving this goal will require significant reductions in emissions of GHGs over the coming decades. In advance of Paris, many countries, including four of the five Central Asian nations, outlined the post-2020 climate actions they intend to take to reduce their own GHG emissions, known as their Intended Nationally Determined Contributions (INDCs). The Paris Agreement has now been ratified the INDCs that reflect each country’s ambition for reducing emissions, taking into account their domestic circumstances and capabilities. Many developing countries also note in their NDCs the support they will need from other countries to adopt low-carbon pathways.

Power the Future

Central Asia is a significant source of GHG emissions. In 2012, emissions from the five countries in the region totaled 660 million tons CO2-equivalent. GHG emissions from Kazakhstan accounted for some 45% of the regional total, with Uzbekistan and Turkmenistan accounting for more than one-third and one-sixth, respectively. Emissions from energy production and consumption accounted for more than 85% of the region’s emissions. *(WRI CAIT database;

values exclude land-use change and forestry)

In Paris, in addition to the NDC framework, the Parties to the UNFCCC further agreed on an enhanced transparency framework for both action and support, to include requirements related to measurement, reporting and verification (MRV) of national GHG emissions as well as information necessary to track progress made in achieving a country’s INDC. Parties are required to submit periodically a national communication (NC) with a GHG inventory and other relevant information, and non-Annex I Parties submit biennial update reports (BURs) of their NCs beginning in 2014. Kazakhstan submitted its Third-Sixth NC in 2013, Turkmenistan and Tajikistan submitted their Third NC since 2014, while Kyrgyzstan and Uzbekistan have yet to submit their BURs. With respect to NDCs, concrete planning for implementation and progress reporting is just beginning in Central Asia, and the countries of the region will require significant assistance to translate their emission reduction commitments into reality.

Kazakhstan As a result of energy-intensive mining and industry, Kazakhstan is one of the world’s biggest GHG emitters per unit of GDP. In the past few years, the Government of Kazakhstan has shown regional leadership in addressing global climate change. Kazakhstan’s INDC calls for an economy-wide target of 15%-25% reduction in GHG emissions by 2030 compared to 1990, a reduction of at least 22% below projected business as usual (BAU) emissions. It is noteworthy that the country’s current emission levels are almost the same as 1990 -- the NDC target thus represents a significant reduction below today’s levels, an important achievement given expected economic growth in the coming years. Kazakhstan has stated renewable energy targets for its power sector of generating 3% of electricity from renewable energy by 2020; 10% by 2030; and 50% by 2050.

Kyrgyz Republic Although it has one of the lowest GHG emissions per capita in the world, the Kyrgyz Republic is one of the most climate vulnerable countries in Central Asia. In its INDC, Kyrgyz Republic committed to reducing GHG emissions 11.49 - 13.75% below a BAU scenario by 2030. With international support, Kyrgyz Republic could reduce emissions 29.00-30.89% below BAU in 2030.

Tajikistan Tajikistan is a small developing country without significant reserves of oil, gas, or coal, and a low per capita GDP, as such it is a low emitter of GHG, but is extremely vulnerable to climate change, including frequent natural disasters. Tajikistan submitted an INDC targeting of 65 - 75% of the 1990 level of GHG emissions by 2030. About 98% of Tajikistan’s electric power is from hydropower facilities. As a result, Tajikistan’s electric power is highly vulnerable to reduced snowfall and overall precipitation reductions that are anticipated for Central Asia due to climate change. There exists conflict between the agricultural need for water, and the use of water for its primarily hydropower electricity generation.

Power the Future

Turkmenistan In its INDC, Turkmenistan notes that intends to reduce the emissions intensity of its economy, reducing the amount of GHG emissions per unit of GDP, although it anticipates that the overall level of emissions will double by 2030 over 2012 levels. However the INDC document notes that if financial and technological support is provided by developed countries, Turkmenistan could achieve zero growth in emissions and even reduce them by 2030.

Uzbekistan Although it did not submit an INDC, Uzbekistan is taking steps towards transitioning to a lower emissions economic development model. Uzbekistan reported that for last 15 years (2000-2013) its energy intensity per GDP was reduced by 55%. By 2030, Uzbekistan further plans to reduce its energy intensity per GDP two fold. Uzbekistan is part of UNFCCC and has already successfully implemented mitigation projects, including CDM projects, to reduce emissions generated by the Energy Sector. In addition, Uzbekistan has implemented a national Programme for Reducing Energy Intensity and Introduction of Energy-saving Technologies; and has developed a Low-Emission Development Strategy. In 2016, UNDP and UNEP launched new project “Green Climate Fund Readiness Programme in Uzbekistan”. The objective of the national project is to support the Government of Uzbekistan in effectively and efficiently accessing, managing, deploying and monitoring climate finance from GCF through building and strengthening institutional capacity of national entities, with a focus on enabling direct access to the Fund.

Development Challenge

Energy is critical for economic growth in the region. Providing clean, renewable energy and improving energy efficiency can solve issues of national and regional energy security, stability, and growing greenhouse gas emissions - yet each country in Central Asia is driven by different priorities and challenges in their power sector. Clean energy can provide needed generation capacity from domestic resources, and improve opportunities for cross-border trade.

There are a number of challenges related to Kazakhstan’s ambitious NDC targets for emissions reduction. One of the larger energy sub-sectors is the buildings and Combined Heat and Power (CHP) sector. CHP utilities supply both heat for buildings and industrial processes, and electricity to the local power grid, generating about 80% of the nation’s electricity. Inefficient use of heat, and poor performing, aging heat systems and plants is a recognized area of opportunity for improved efficiency in the country. In scaling up renewable energy, CHP plants are one of the most efficient, lowest cost sources of balancing energy. This energy is needed to compensate for the natural variation of wind and solar energy. Therefore, involving Kazakhstan’s CHP fleet in providing balancing services contributes to energy efficiency, drives down the price of grid integration, and provides an additional revenue source for CHP plant owners.

With investment in new equipment, IT and control systems, the CHP sector can play a key role in providing balancing services needed for variable RE generation. This would require increases in heat tariffs, to complement the revenues that can be gained from selling balancing services. As heat tariffs are raised to levels sufficient to generate income for investment in modernization, building owners and residents want to be able to manage their energy use more effectively. New control and regulation systems need to be installed system wide to enable both the improved building energy management and flexibility services from the CHP fleet.

Power the Future

Second, regional grid connectivity does not yet adequately integrate the need to attract generation flexibility. Transmission system operators and generation planners need a realistic understanding of the issues related to RE integration.

Third, establishing strong national systems for NDC implementation and measurement, reporting and verification (MRV) of GHG emissions and reductions will be critical to ensuring that clean energy activities contribute to achieving climate change mitigation goals in the region.

Challenges here that remain include:

Lack of transparent processes to monitor GHG reductions and progress toward NDC commitments

Lack of strong institutions to collect and report GHG emissions and identify opportunities for reductions

Political will for increasing the ambition of GHG reduction targets Incorporation of these targets into sectoral planning, where implementation is needed

Other specific barriers to clean energy deployment and scale up in the region include:

Low, non-market based energy prices provide little incentive to shift from old thermal generation

Lack of transparent and consistent incentives and policies to promote clean energy leave investors with high risk

Lack of understanding or commitment to clean energy at both the policy-maker and technical levels

Issues of currency devaluation linked to tariffs and power purchase agreements provide financial disincentive to invest and develop renewable energy projects

Weak electrical grids provide technical challenges to integration of RE and inhibit accessing generation flexibility from neighboring areas for balancing

Legacy power purchase agreement and bilateral contracts limit accessing full flexibility of the power system to incorporate higher renewable energy penetration

While Kazakhstan’s law on Energy Saving and Energy Efficiency (LES) lays out measures designed to reduce energy use, there are significant needs in implementation.

Kazakhstan state responsible entities will need to strengthen their capacity to carry out the requirements of the law.

U.S. Approach

The U.S. Global Climate Initiative

The U.S. Global Climate Change Initiative (GCCI) is implemented through three pillars of funding:

1. Clean Energy: activities that promote renewable energy and energy efficiency;

2. Sustainable Landscapes: promoting forest conservation, improved forest management, soil conservation, and sustainable agriculture; and

3. Adaptation: support for activities that identify and manage climate-related risks and changing climate patterns.

USAID’s Clean Energy programs reduce climate change causing greenhouse gas emissions by supporting RE technologies, energy efficient end-use technologies and measures, financing and investment strategies, design and implementation of energy policies, NDCs and low emission

Power the Future development strategies (LEDS), and greenhouse gases (GHG) emissions accounting. A primary objective is to reduce, mitigate, or sequester emissions of GHGs. In addition, GCC-funded investments:

Help countries deploy the lowest-cost renewable energy technologies, while supporting successful integration of these into modern, reliable power grids;

Support transition to low carbon energy systems that enhance energy security; and Monitor impact using USAID’s climate change indicators.

Enhancing Capacity for Low Emission Development Strategies (EC-LEDS) and the NDC Leadership Compact

Since 2010, the U.S. Government has provided assistance to developing countries to support evaluation, development, and implementation of climate change mitigation and adaptation measures. Among other initiatives, Enhancing Capacity for Low Emission Development Strategies (EC-LEDS) has provided broad support to 26 countries. EC-LEDS support strengthened the quality of INDCs submitted prior to COP 21 and assisted countries in developing and initiating implementation of cross-sector low emission development strategies.

This portfolio of activities was a building block for the successful Paris Agreement.

The USG is now supporting developing countries in preparing to implement the Paris Agreement in several ways, including through our ongoing bilateral LEDS, adaptation, sustainable landscapes and clean energy programs. Since May 2016, the U.S. has identified several countries as potential partners in an NDC Leadership Compact. These countries were selected as leaders because they are already implementing transformative actions and/or have potential for substantial progress towards their mitigation goals, are interested in being vocal and public about their successes, and are good candidates for significantly increasing the ambition of their NDCs and actions in the future. The Compact serves to: (1) demonstrate their leadership by showcasing their NDC commitments and the most transformative and impactful actions they are taking to achieve them and (2) continue and deepen existing cooperation to enable them to more aggressively and successfully pursue NDC implementation in key priority areas, as identified through country consultations. The NDC Leadership Compact will build confidence of participating countries in their ability to achieve their mitigation targets and thereby encourage more ambitious mitigation targets in the next cycle.

Renewable Energy Building Blocks

As part of the implementation of GCCI Strategy, USAID’s Renewable Energy Building Blocks are themes that have been identified in a wide range of countries that are adding large amounts of new renewable generation capacity. These building blocks are not necessarily in chronological order, and many may be addressed simultaneously as they are interrelated. It is important to note that some countries may have elements of these in place, and addressed these building blocks should be based on the country’s unique needs, circumstances, and power sector structure.

The Renewable Energy Building Blocks include:

Strategic energy planning to ensure that generation and transmission planning and finance incorporate considerations for a high renewable energy future, to ensure investments in infrastructure are optimally aligned with RE goals.

Power the Future

Competitive procurement of generation resources is an increasingly popular tool for governments to procure renewable electricity at lower cost, allowing unbiased “price discovery” by the authorities.

Grid integration addresses the variability and uncertainty of solar and wind, addressing both technical, institutional, and market practices to access flexibility in the power system.

Smart incentives that are designed transparently, and revised based on market conditions, help to achieve optimal impacts in terms of cost, attraction of investment, and operational integration.

Renewable energy zones (REZ) help countries plan for transmission investment, identifying future areas for RE development to maximize resource output and drive investment to those areas - helping to solve the mismatch between generation and transmission infrastructure planning and investment.

Innovative finance mechanisms that go beyond traditional spending approaches by the public or private sectors.

C5+1 Diplomatic Process

On November 1, 2015, a “Joint Declaration of Partnership and Cooperation by the Five Countries of Central Asia and The United States of America” was issued, stating the following:

“The foreign ministers of the Republic of Kazakhstan, the Kyrgyz Republic, the Republic of Tajikistan, Turkmenistan, and the Republic of Uzbekistan and the Secretary of State of the United States of America issue this Joint Declaration of Partnership and Cooperation. This meeting follows a ministerial level meeting of the six countries on September 26, 2015, in New York. The six countries are committed to deepening cooperation, including through regular meetings in the “C5+1” format.”

As such, C5+1 is, first and foremost, a format for diplomatic engagement and dialogue between the U.S. and the five Central Asian states, as a group - and provides a platform for collaboration, on issues of common concern. The initial focus areas of C5+1, agreed upon by all six countries, are: economic connectivity, environment/climate change, and security. To strengthen diplomatic cooperation in these areas, the C5+1 countries agreed to identify concrete projects that would produce concrete results. In other words, to pair development activities with diplomatic efforts toward common goals. Working Groups were established around each focus area and initial meeting were held in Bishkek and Almaty in April 2016. As a result of these meetings, and extensive follow-up, a handful of projects were identified for funding under C5+1, two of which are directly related to Power the Future: “Scaling Up Renewable Energy in Central Asia” and “Regional Adaptation.”

In August 2016, the USG provided an update on “U.S.-Central Asia (C5+1) Joint Projects” that outlines the five areas where it is expected the countries will work:

1. Global Counterterrorism Forum (GCTF) Regional Dialogue: The GCTF Regional Dialogue will seek to counter the challenges of foreign terrorist fighters and radicalization to violence in Central Asia. The dialogue will bring together policymakers and subject-matter experts from Central Asia and abroad to share perspectives on the threat of foreign terrorist fighters, including best practices and regional approaches for countering the radicalization, departure, and return of fighters. The dialogue will also work to implement The Hague–Marrakech Memorandum on Good Practices for a More Effective Response to the Foreign Terrorist Fighter Phenomenon.

Power the Future

2. Central Asia Business Competitiveness (CABC): The CABC project will seek to make it easier for businesses in Central Asia to increase exports and enter new markets. To begin, the project will focus on horticultural sub-sectors with strong export potential. The project will work with companies to increase their competitiveness and participation in global value chains. The project will also work with governments and trade authorities on policies that will make it easier for businesses to export goods. In addition, the project will assist businesses to attract capital and technology, with the goal of improving food production, processing, and packaging.

3. Transport Corridor Development (TCD): The TCD project will aim to reduce the cost and time of moving goods across borders in Central Asia, as well as improve the quality of transport and logistics services throughout the entire region. The project will work with businesses, trade authorities, and governments to identify and reduce non-tariff barriers to trade along key corridors. In addition, the project will work with transport and logistics firms to reduce inefficiencies and improve competitiveness. The project will also provide businesses with networking opportunities as well as training and information on topics such as competitiveness benchmarking, route planning skills, air freight trends, refrigerated transport developments, freight consolidation methods, logistics center management, and more.

4. Power the Future: Power the Future will help energy sector policymakers and mid-level staff in their efforts to scale up renewable energy throughout Central Asia. The project will provide technical and planning assistance on U.S. and international best practices to increase renewable energy sector development. The United States will also provide training and technical assistance on strategic energy planning, competitive procurement, grid integration, smart incentives, renewable energy zones, and innovative finance.

5. Supporting National and Regional Adaptation Planning: This project will seek to increase the capacity of Central Asian states to plan for adaptation against the impacts of climate change. The project will work to identify regional priorities and cross-border challenges for climate change adaptation. It will also improve the availability of high-quality information on and analysis of climate science. In addition, the United States will provide technical assistance to key stakeholders and coordinate with development assistance partners. These efforts will support each country’s national adaptation planning process under the UN Framework Convention on Climate Change. In addition, the countries will identify and share data and indicators that can improve climate services, assess cross-border climate challenges, and support evaluation and monitoring. These data will then be used to incorporate shared cross-border adaptation strategies into the countries’ national adaptation planning process.

USAID/CA is responsible for implementation of activities under Power the Future and National and Regional Adaptation, which will be carried out under:

1. An interagency agreement (IAA) with the Department of Energy National Laboratories to begin the process of introducing the building blocks of scalable renewable energy to all five countries. The IAA will provide access to unique expertise and capabilities of a recognized global leader and an independent resource on renewable energy development and deployment, with access to a network of public and private partners, the ability to leverage USG investments in existing data and tools, and the ability to translate domestic and international experience.

2. An IDIQ contract, Power the Future, which is described in this document, will be funded by both C5+1 money and other mission resources, with an overall goal of assisting the

Power the Future five countries of Central Asia expedite their ability to bring renewables onto the grid at scale.

3. Funded entirely with C5+1 money, climate adaptation work will be carried out under a stand-alone Bureau for Food Security-managed CGIAR mechanism to do an inventory of existing adaptation plans to provide technical assistance to the countries as they deepen their plans and develop bankable projects. Supporting National and Regional Adaptation Planning project aims to help each country reduce vulnerabilities and increase resiliency to the impacts of climate change. The C5+1 process will help each country identify shared cross-border adaptation challenges and regional adaptation priorities as well as improve the availability of high-quality, useable climate-related information for each country. Each country will develop bankable adaptation projects that attract financing and are implemented.

C.3 CURRENT PARTNERSHIPS AND PROGRAMS

EC-LEDS and the NDC Leadership Compact: The Ministry of Environment Protection of the Republic of Kazakhstan (MOE) and the Government of the United States of America are currently collaborating through their EC-LEDS partnership. A main mechanism for delivering this assistance is through the Kazakhstan Climate Change Mitigation Program (see below). Recently, the Kazakhstan Ministry of Foreign Affairs has agreed to partnering with the U.S. under the NDC Leadership Compact. This partnership will serve to: (1) demonstrate their leadership by showcasing their NDC commitments and the most transformative and impactful actions they are taking to achieve them and (2) continue and deepen existing cooperation to enable them to more aggressively and successfully pursue NDC implementation in key priority areas, as identified through country consultations. It is anticipated that Power the Future will contribute to this effort.

Kazakhstan Climate Change Mitigation Program (KCCMP): Supports Kazakhstan’s efforts to meet its GHG reduction goals by strengthening the implementation in the government and the business community of key climate change mitigation policies and measures, notably the emission trading system and the Law on Energy Saving. KCCMP works in three specific focal areas:

1. Improving the capacity of the GOKZ to implement and enforce GHG reducing policies and measures;

2. Improving the capacity of the business community in Kazakhstan to comply with these measures and take emissions reducing actions;

3. Providing professional training of GHG and energy management specialists in Kazakhstan.

Energy Links: The objective of Energy Links is to increase national energy security for countries in Central Asia. By increasing transparent intra- and inter-regional energy trade, improving the legal and regulatory framework and investment climate for the countries’ energy sectors, improving corporate governance, operations and commercialization of the energy companies, improving energy efficiency and demand side management the countries of Central Asia and building capacity of relevant entities, the project increases the sustainability of their energy sectors and their ability to provide year-round, reliable power to their citizens. Energy Links also employs and provides resources for the CASA-1000 Secretariat - a multi-donor initiative to provide opportunities to sell excess energy from Central Asia to South Asia by constructing appropriate infrastructure. The CASA-1000 Secretariat serves as an intermediary in this process.

Power the Future

EBRD: Supports the Government of Kazakhstan on implementation of its INDCs. The EBRD also funds multiple renewable energy projects throughout Central Asia, where investment has increased on the back of significant policy reform. In June 2015 the EBRD financed the first commercial-scale solar park and first privately owned renewable-energy generator in the country.

The Burnoye Solar Plant is co-financed by the EBRD and the Clean Technology Fund (CTF) with loans of well over €80 million. In Tajikistan, the EBRD allocated a total of $88 million – its largest financing in the country by far – to the modernization and capacity increase of the Qairokkum

HPP.

European Union: Initiated a new € 2 million project in 2016 to further develop and ensure effectiveness and visibility of the EU-Central Asia Water, Environment and Climate Change dialogue and cooperation. The project aims to improve policies, increase capacities and enhanced regional cooperation, both between the EU and Central Asia and within Central Asian region.

ADB: The Clean Energy Financing Partnership Facility was established in 2007 to help improve energy security in developing member countries and decrease the rate of climate change. The Facility finances the deployment of new, more efficient supply and end-use technologies. Also, under the Central Asia Regional Economic Cooperation (CAREC) Project, the ADB is the lead donor working on Energy Security throughout Central Asia and the broader region. To date, activities under CAREC have focused on traditional power generation and transmission, but will increasingly focus on renewable energy and energy efficiency going forward.

Islamic Development Bank: created the Central Asia Renewable Energy Fund in 2013 in partnership with the National Agency for Technological Development (a subsidiary of National Management Holding Baiterek). The Fund has a mission of making 8-10-year invests into the development of renewable and alternative energy sources in Kazakhstan, with initial funding of $50 million. For a variety of reasons, the Fund has not been utilized to date.

World Bank and ESMAP work both bilaterally with Kazakhstan as well as regionally in Central Asia. This work encompasses the technical & market aspects of integrating renewable energy into the grid; support to policy reforms of Kazakhstan’s power sector, with projections through 2045; analysis of regional power trading in Central Asia, analyzing benefits, costs, and potentials of power trade in CA, including hydropower; and municipal energy efficiency efforts, including an energy efficiency fund to be managed by KazEnergyExpertise and the Akimat of Astana.

C.4 STATEMENT OF WORK

As stated in task orders, the contractor will implement selected activities that lie within the key themes that are stated in Section C.4c. For the purposes of this IDIQ, renewable energy is defined as solar PV, wind, geothermal, small-hydro, and biomass residue technologies. Energy efficiency is defined as the goal to reduce the amount of energy required to provide products and services.

Throughout the implementation of Task Orders, the Contractor will:

1. Leverage trilateral or south-south partnerships and experience;

2. Build local capacity;

3. Support regional bodies and ongoing processes;

Power the Future

4. Address cross-border issues that are key to unlocking clean energy trade and investment;

5. Develop or leverage information, tools, and platforms that can be applied across the region;

6. Develop innovative approaches to engage and impact across multiple countries, where applicable.

It is through this approach that the Contractor will achieve the following objectives:

C.4a GOALS AND OBJECTIVES

USAID/Central Asia will support a new IDIQ, Power the Future, with the Project Goal:

Accelerate the Regional Transition to High Performing, Low Emission, and Climate Resilient Economies. Activities performed under this IDIQ will contribute to the following objectives:

Objective 1: Support Kazakhstan to Meet NDC and Clean Energy Goals

Objective 2: Increased Regional Deployment of Clean Energy

C.4b GEOGRAPHIC COVERAGE

Activities performed under this IDIQ will cover the Republic of Kazakhstan, the Kyrgyz Republic, the Republic of Tajikistan, Turkmenistan, and the Republic of Uzbekistan. Task Orders will specify the specific geographic coverage of activities, which may be bilateral or regional in nature, covering one or more of the countries listed above.

C.4c KEY THEMES

Eight (8) key themes have been identified as part of efforts under Power the Future. Through task orders, the contractor will implement tasks under the key themes identified:

A. Power Sector Reform and Enabling Environment B. Power Sector Planning for Renewable Energy C. Grid Integration of Variable Renewable Energy D. Competitive Procurement of Renewable Energy E. Improving Energy Efficiency F. NDC Transparency and Implementation G. Demonstrations and Pilots H. Knowledge Management, Coordination, and Learning

C5. SPECIFIC TECHNICAL REQUIREMENTS FOR KEY THEMES

C.5a Power Sector Reform and Enabling Environment

The adoption and scale up of sustainable clean energy systems requires supportive enabling environments. Enabling environments include institutions that provide the legal, regulatory, sector and corporate governance arrangements, and electricity market incentives. In addition, key financing mechanisms and incentives, such as subsidies, revolving funds, public budgeting and financial management arrangements, feed-in tariffs, and specialized banks and lending windows are necessary for a robust private sector investment climate.

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This key area includes innovative policy, legislative, regulatory or implementation financial support that leads to large scale development and deployment of cost competitive clean energy technologies more effectively, cheaply, and sustainably. These incentives should include policy choices that evolve over time to reflect technological innovation and prices signals from changing market conditions. As policy stability is critical to maintaining investment confidence, such changes should be conducted transparently and in a way that is predictable and easy to understand.

Illustrative results to be achieved under Power The Future may include but are not limited to:

Improved power and electricity markets for trading and dispatch of renewable and energy efficiency Improved incentive schemes for private investment in renewable energy projects and energy efficiency improvements Improved policy, legal, and regulatory framework for renewable and energy efficiency programs and projects

Representative tasks the contractor may be required to accomplish/implement are:

Pricing, tariff, or subsidy reforms, tax incentives, feed in tariff and other financial incentives including improved collections for better cost recovery and financial viability;

Support for PPA structuring based on RE integration best practices Development and technical assistance related to regulatory protocols Support energy sector reforms and commercialization of energy utilities, including the establishment of regulatory agencies, support for legal reforms in the energy sector, restructuring and corporatization of energy utilities, support for transmission system and energy market development, privatization, design of effective subsidy and social safety net programs, and integration of clean energy into conventional gas and electricity systems;

Providing technical assistance and training to development partners in developing, adopting, and carrying out an implementation plan for the energy sector reform strategies, corporate development for key public service providers, independent regulatory bodies; and other institutions in the energy sector.

C.5b Power Sector Planning for Renewable Energy

Strategic planning for a high renewable energy future is essential to ensure the successful achievement of goals and policies aimed at bringing renewables to scale. Understanding and planning for future demand, identifying areas of best resource, incorporating system flexibility and energy efficiency opportunities, and planning for long term transmission investments that maximize RE resource will ensure lowest cost and highest return on investments in RE technologies - all while ensuring power system adequacy and reliability in the long-term.

Strategic planning also supports the development of other scaling renewable energy building blocks, such as providing long-range, least cost capacity expansion inputs into a multi-year competitive procurement program and testing efficacy and impact of smart incentives. Examples of strategic power sector planning used across the globe include utility and/or national level Integrated Resource Planning (IRP), long term capacity expansion or transmission planning under high RE scenarios, and where applicable, development of renewable energy zones (REZ).

As a transmission planning tool, REZ allows power system planners to overcome the difference in timescales between transmission and renewable energy generation development, supporting cost-effective development of high-quality, concentrated RE resources with strong developer interest.

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Illustrative results to be achieved under Power The Future may include but are not limited to:

Improved capacity for strategic, long-term, power sector planning at high RE and EE scenarios Power sector plans incorporate RE, NDC, and GHG emissions targets Power sector plans are linked to investment and implementation programs, such as RE competitive procurement programs Stakeholder-inclusive identification and development of RE Zones

Representative tasks the contractor may be required to accomplish/implement are:

Development and capacity-building of stakeholder groups involved in power sector planning at the national or sub-national level Development and guidance for tailored, country-specific IRP processes Development and validation of demand forecasts, key data for power sector planning, such as generation inventories, hourly demand data, key meteorological information Training of country counterparts on power sector modeling, and joint analysis Development of country-specific stakeholder-driven REZ process and legislation RE resource mapping (wind, solar) or resource data improvements and validation Development of process for gauging developer interest and commitment in preliminary

RE Zones Transmission evaluation and planning based on country-prioritized RE Zones Programmatic and site specific environmental and social impact assessments

C.5c Grid Integration of Variable Renewable Energy

Countries that are scaling up the amount of renewable energy in their generation portfolio have realized that they must address integration of variable renewable energy (VRE) into their existing and future grids. Grid integration requires that countries consider modifying their grid planning and operations to support more flexibility, enhanced market design, changes in reserves, faster dispatch, improved forecasting, and addition of voltage control and inertial response capabilities, to name a few solutions. Effective grid integration maximizes cost effectiveness while maintaining reliability. Grid integration solutions are both institutional and technological in nature, and are specific to the country circumstances, presence or lack of power markets, and other unique aspects of the system.

Illustrative results to be achieved under Power The Future may include but are not limited to:

Innovative approaches for RE scale-Up demonstrated Increased deployment of grid-connected renewable energy Decreased renewable energy curtailment Improved capacity of system operators in integration of variable renewable energy into the power grid

Representative tasks the contractor may be required to accomplish/implement include:

Convene modeling working groups and technical advisory committees to perform grid integration studies Data collection and validation for grid integration studies Training and capacity building on grid integration modeling for country counterparts, such as production cost modeling Procurement of or improvement to software and data Analysis of balancing area cooperation opportunities, including impacts on reserve sharing, coordinated scheduling, and consolidated operations

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Design of or improvement of energy and power markets, including ancillary services markets

Training of system operators in flexible operation of power system Improving regulations, codes, and interconnection standards to reflect best practices for improved VRE integration and system flexibility, both at utility scale and distributed PV Developing or improving wind and solar forecasting systems, including vendor trials, Creation of meteorological datasets Integration of forecasting into system operations and dispatch

C.5d Competitive Procurement of RE

USAID has identified the competitive procurement of renewable energy capacity as one of the building blocks being employed by countries that are successfully scaling up renewable energy.

Scaling up RE requires that new energy generation solutions are affordable to the end-user and that the private sector is willing and able to invest to the largest extent feasible.