RFP No SOL-388-12-000006.pdf

RFP No. SOL-388-12-000006

1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF PAGES

UNDER DPAS (15 CFR 700)

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

SEALED BID (IFB)

NEGOTIATED (RFP)

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

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

9. Sealed offers in original and _____________________________ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in until local time _______________________ (Hour) (Date)

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.

A. NAME B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

AREA CODE NUMBER EXT.

(X) SEC. DESCRIPTION PAGE(S) (X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

A SOLICITATION/CONTRACT FORM I CONTRACT CLAUSES

B SUPPLIES OR SERVICES AND PRICES/COSTS PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

C DESCRIPTION/SPECS./WORK STATEMENT J LIST OF ATTACHMENTS

D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS

E INSPECTION AND ACCEPTANCE

F DELIVERIES OR PERFORMANCE

G CONTRACT ADMINISTRATION DATA L INSTR., CONDS., AND NOTICES TO OFFERORS

H SPECIAL CONTRACT REQUIREMENTS M EVALUATION FACTORS FOR AWARD

K

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

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

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

13. DISCOUNT FOR PROMPT PAYMENT 10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS (%)

(See Section I, Clause No. 52-232-8)

14. ACKNOWLEDGEMENT OF AMENDMENTS AMENDMENT NO. DATE AMENDMENT NO. DATE

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated:

CODE FACILITY

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

ADDRESS

OF OFFEROR

(Type or print)

15B. TELEPHONE NUMBER 17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT.

15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM (4 copies unless otherwise specified)

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

24. ADMINISTERED BY (If other than Item 7) 25. PAYMENT WILL BE MADE BYCODE CODE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

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

(Signature of Contracting Officer)

(REV. 9-97)

10. FOR INFORMATION CALL:

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD

SOLICITATION

OFFER (Must be fully completed by offeror)

AWARD (To be completed by Government)

N/A

SOL-388-12-000006

X

02/29/2012

72000

Office of the Acquisition & Assistance C/O American Embassy USAID/Bangladesh 6120 Dhaka Place Washington DC 20521-6120

Leslie-Ann Burnette-Badinga, Supervisory Contracting Officer USAID/Bangaldesh, C/O American Embassy Madani Avenue, Baridhara Dhaka-1212, Bangladesh

Item 8 2:00 pm Bangladesh

M. Sirajam Munir 880 2-885-5500, ext. 2749 smunir@usaid.gov

See Attached Table of Contents

X 3

X 8-10

X 11-29

X 30

X 31

X 32-43

X 44-48

X 49-54

X 55-65

X 66

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X 83-98

X 99-104

$.00

72000

USAID/Bangladesh C/O American Embassy Madani Avenue, Baridhara Dhaka-1212, Bangladesh

USAID/Bangladesh Office of Financial Management C/O American Embassy Madani Avenue, Baridhara Dhaka-1212, Bangladesh

Catalyzing Clean Energy in Bangladesh (CCEB)

TABLE OF CONTENTS

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

B.4 PRICE/COST SCHEDULE

B.5 COST REIMBURSABLE

B.6 INDIRECT COST

B.7 CEILING ON INDIRECT COST

SECTION C- DESCRIPTION/SPECS./STATEMENT OF WORK

C.1 BACKGROUND

C.2 STATEMENT OF WORK

C.3 GENDER

C.4 PROJECT MANAGEMENT

C.5 MONITORING AND EVALUATION

C.6 STAFFING

SECTION D – PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING

SECTION E – INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE

E.2 INSPECTION AND ACCEPTANCE

SECTION F – DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 DELIVERABLES

F.4 LEVEL OF EFFORT/ WORKDAYS ORDERED

F.5 TECHNICAL DIRECTION AND DESIGNATION OF RESPONSIBLE USAID

OFFICIALS

F.6 PLACE OF PERFORMANCE

F.7 AUTHORIZED WORK DAY / WEEK

F.8 REPORTS AND DELIVERABLES OR OUTPUTS

F.9 PERFORMANCE STANDARDS

F.10 KEY PERSONNEL

F.11 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

F.12 AAPD 04-06-D-752.7005 SUBMISSION REQUIREMENTS FOR

DEVELOPMENT EXPERIENCE DOCUMENTS (JAN 2004)

F.13 ENVIRONMENTAL COMPLIANCE AND MANAGEMENT

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.2 ADMINISTRATIVE CONTRACTING OFFICE

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.4 PAYING OFFICE

G.5 CONTRACTOR'S PRIMARY POINT OF CONTACT

G.6 ACCOUNTING AND APPROPRIATION DATA

G.7 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.8 SPECIAL INSTRUCTIONS

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE

H.2 AUTHORIZED GEOGRAPHIC CODE

H.3 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION

TECHNOLOGY RESOURCES

H.4 AIDAR 752.7007 PERSONNEL COMPENSATION (JULY 2007)

H.6 GOVERNMENT PROPERTY

H.7 LANGUAGE REQUIREMENTS

H.8 LOGISTIC SUPPORT

H.9 SUBCONTRACTING PLAN REPORT FOR INDIVIDUAL CONTRACTS AND

SUMMARY CONTRACTING REPORT

H.10 SUBCONTRACTING CONSENT

H.11 EXECUTIVE ORDER ON TERRORISM FINANCING (MARCH 2002)

H.12 AAPD 04-17 USAID DISABILITY POLICY - ACQUISITION (DECEMBER

2004)

H.13 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL

ANDNOTIFICATION REQUIREMENTS (JAN 1990)

H.14 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB

2012)

H.15 GRANTS UNDER CONTRACT APPROVAL FORMAT

PART II – CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE

I.2 FAR 52.203-14 DISPLAY OF HOTLINE POSTER(S) (DEC 2007)

I.3 FAR 52.216-8 FIXED FEE (JUN 2011)

I.4 FAR 52.229-8 TAXES—FOREIGN COST-REIMBURSEMENT CONTRACTS

(MAR 1990)

I.5 FAR 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR

AUDIT (FEB 2006)

I.6 AIDAR 752.7013 CONTRACTOR-MISSION RELATIONSHIPS (OCT 1989) 60

I.7 AIDAR 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991) ... 61

I.8 AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES

(JUNE 2008)

I.9 DEFENSE BASE ACT (DBA) INSURANCE FOR 2010-2015

I.10 GRANTS UNDER CONTRACT

PART III – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

PART IV – REPRESENTATIONS AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER

STATEMENTS OF BIDDERS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

K.2 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS

K.3 COMPLIANCE WITH VETERANS EMPLOYMENT REPORTING

REQUIREMENTS

K.4 SIGNATURE

K.5 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS

(MAR 2012)

K.6 FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS

(APR 2010)

K.7 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS

(FEB 2012)

K.8 FAR 52.215-6 PLACE OF PERFORMANCE. (OCT 1997)

K.9 FAR 52.219-1 SMALL BUSINESS PROGRAM REPRESENTATIONS (APR

2011)

K.10 FAR 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS

(FEB 1999)

K.11 FAR 52.225-2 BUY AMERICAN ACT CERTIFICATE (FEB 2009)

K.12 FAR 52.225-20 PROHIBITION ON CONDUCTING RESTRICTED

BUSINESS OPERATIONS IN SUDAN—CERTIFICATION (AUG 2009)

K.13 FAR 52.222-25 AFFIRMATIVE ACTION COMPLIANCE. (APR 1984)

K.14 FAR 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND

RESTRICTED COMPUTER SOFTWARE (DEC 2007)

K.15 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND

CERTIFICATION. (OCT 2008)

K.16 FAR 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING

PRACTICE CHANGES (APR 2005)

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE

L.2 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

L.3 FAR 52.233-2 SERVICE OF PROTEST (SEPT 2006)

L.4 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE (FEB 1998)

L.5 ACQUISITION SCHEDULE

L.6 PROPOSAL INSTRUCTIONS

L.7 GENERAL INSTRUCTIONS TO OFFERORS

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL

PROPOSAL

L.9 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL ... 92

L.10 BUDGET

L.11 INSTRUCTIONS FOR THE PREPARATION OF THE BRANDING

IMPLEMENTATION PLAN (BIP)

L.12 PROJECT INFORMATION SERVICE

L.13 PROJECT INCENTIVE (GRANTS) PROGRAM

L.14 SMALL BUSINESS PARTICIPATION

SECTION M- EVALUATION CRITERIA

M.1 GENERAL INFORMATION

M.2 DETERMINATION OF THE COMPETITVE RANGE AND CONTRACT

AWARD

M.3 EVALUATION CRITERIA

M.4 COST EVALUATION

M.5 SOURCE SELECTION

ATTACHMENT 1

ATTACHMENT 2

ATTACHMENT 3

ATTACHMENT 4

ATTACHMENT 5

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to secure technical services for the implementation of the entitled Catalyzing Clean Energy in Bangladesh (CCEB) project. The contractor will be responsible for providing all services and activities described throughout this contract document.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) term contract. For the consideration set forth below the Contractor must perform the services further described in Section C.

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is [___]. The fixed fee, if any, is [___]. The estimated cost plus fixed fee, if any, is [___].

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is [___]. The Contractor must not exceed the aforesaid obligated amount.

(c) Funds obligated hereunder are anticipated to be sufficient through [___].

B.4 PRICE/COST SCHEDULE

For Workdays (LOE) Ordered $ ____________ For Other Direct Costs $ ____________ Indirect Costs (includes overhead, G&A $ ____________ and MHO) Project Incentive Funds $ ____________ Fixed Fee $ ____________ Cost Plus Fixed Fee Ceiling Price $ ____________

The Contractor will not be paid any sum in excess of the ceiling price. Individual subcontractors should include the same cost element breakdowns in their budgets as applicable.

B.5 COST REIMBURSABLE

The U.S. dollar costs allowable must be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, and AIDAR 752.7003, Documentation for Payment.

FAR 52.232-20 Limitation of Cost (applies while the contract is fully funded). FAR 52.232-22 Limitation of Funds (applies while the contract is funded in an amount less than the total estimated cost).

B.6 INDIRECT COST

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs must be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period [Description] [Rate] 1/[___] 1/[___] 1/[____] [Description] [Rate] 2/[___] 2/[___] 2/[____] [Description] [Rate] 3/[___] 3/[___] 3/[____]

1/Base of Application: [_____] Type of Rate: [_____] Period: [_____] Source: [_____]

2/Base of Application: [____] Type of Rate: [____] Period: [_____] Source: [_____]

3/Base of Application: [____] Type of Rate: [____] Period: [____] Source: [____]

B.7 CEILING ON INDIRECT COST

(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 shall be at final negotiated rates, but not in excess of the following ceiling rates:

Indirect Cost FY [XX] FY [XX] FY [XX] FY [XX]

[Reference respective accounting periods specified in Section B, Indirect Costs.]

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

[END OF SECTION B]

[Intentionally Left Blank]

SECTION C- DESCRIPTION/SPECS./STATEMENT OF WORK

List of Acronyms:

ADB Asian Development Bank BCCSAP Bangladesh Climate Change Strategy and Action Plan BERC Bangladesh Energy Regulatory Commission BPDB Bangladesh Power Development Board CFL Compact Fluorescent Lamp COR Contracting Officer’s Representative CO Contracting Officer DESCO Dhaka Electric Supply Company DFID Department for International Development (UK) DPDC Dhaka Power Distribution Company DSM Demand-side management EC-LEDS Enhancing Capacity for Low Emission Development Strategy EE Energy Efficiency FY Fiscal Year GHG Greenhouse gas GOB Government of Bangladesh GIZ German Agency for International Cooperation ICEA Improved Capacity for Energy Access (USAID/Bangladesh project) IPP Independent Power Producers LEDS Low Emission Development Strategy MPEMR Ministry of Power, Energy, and Mineral Resources MW Megawatt NARUC National Association of Regulatory Utility Commissioners NGO Non-Governmental Organization NRECA National Rural Electric Cooperative Association PBS Palli Bidyut Samities (rural electric cooperatives) PIO Public International Organization PPA Power Purchase Agreement PGCB Power Grid Company of Bangladesh RE Renewable Energy REB Rural Electrification Board SARI/E South Asia Regional Initiative for Energy (SARI/Energy) SEDA Sustainable Energy Development Agency TA Technical Assistance USAID United States Agency for International Development USEA Uinted States Energy Association USG United States Government WB World Bank

C.1 BACKGROUND

C.1.1 Overview of Bangladesh’s Energy Sector

“Bangladesh is facing twin energy crises – an urban energy crisis characterized by power shortages and skyrocketing gas consumption and a rural energy crisis reflected in the increasing inability of the rural poor to access even low-value traditional biomass. Both crises need urgent attention, as they directly affect the nation’s development prospects and the basic livelihoods of urban and rural populations.”

~Bangladesh National Energy Policy (draft), March 2008

Bangladesh’s energy sector faces a number of challenges. Foremost among them are severe power shortages, skyrocketing natural gas consumption, and rural energy poverty. More than 50% of the population still lacks access to electricity1. The gap between electricity supply and demand is already nearly 2000 MW during peak hours and is growing steadily at 10% every year.

Natural gas consumption is also growing tremendously as gas is consumed across sectors:

power, fertilizer, industry, commercial, and domestic. The problems of growing demand and looming shortages in the power and gas sectors are exacerbated by the problems of mismanagement, low energy prices and a lack of a strong regulatory environment which significantly compromise the financial viability of the energy sector and create little incentive for investment in energy efficiency, conservation, and renewable energy forms.

Despite these challenges, several components of the Bangladesh energy sector are demonstratively strong. These positive factors, combined with the apparent political will for addressing the energy crisis, provide a favorable environment for continued USAID support in the sector, potential alleviation of some of the energy sector crises, and continued movement of Bangladesh along a low carbon development trajectory. These positive factors include:

Energy sector reform that has resulted in improvements in utility commercial operations and quality of service.

A good track record of power purchase agreements (with over 1300 MW of IPP installed capacity), which will help attract future private sector investment in the sector.

A functioning energy sector regulatory body created by legislation to work independently.

Progressive rural electrification program, established through USAID support, which provides access to electricity for over 40 million people.

C.1.2 Government of Bangladesh Initiatives To address the urban energy crisis, the Government of Bangladesh (GOB) has taken a number of measures. The more short-term “crisis-response” solutions include: load shedding; limiting new electricity and gas connections; and renting small peaking power plants that run on liquid fuel. The first two measures have had a detrimental impact on industry and the latter measure of rental power is extremely expensive. Some of the more proactive energy efficiency and demand side management measures include initiating daylight savings time but later discontinued, industry weekly holiday staggering, and limited shopping hours.

1 http://www.tradingeconomics.com/bangladesh/access-to-electricity-percent-of-population-wb-data.html

In the longer term, the Government is looking towards increased private sector investment and imports of power and gas. In the gas sector, the GOB is planning to import liquefied natural gas (LNG) and is seeking investors for an LNG import and storage facility. In the power sector, Bangladesh is looking to import 250 MW of power from India by the end of 2013.

To set the groundwork for longer-term energy sector development, the GOB has already enacted a number of key policy documents and legislation like the Bangladesh Energy Regulatory Commission (BERC) Act (2003) and the Renewable Energy Policy (2008) that established the Sustainable Energy Development Agency (SEDA) as a focal point for promoting renewable energy and energy efficiency in the country. Bangladesh has formulated the Energy Conservation Act of 2010 (draft) that is currently undergoing approval process that will provide greater authority to SEDA. Additionally, Bangladesh is currently reviewing the Energy Policy drafted in 2008 to revise the approved National Energy Policy 1996.

C.1.3 Other Donor Activities

CCEB will leverage the activities of other donors active in the energy sector. Specific donors working in each of the two main project areas are as follows.

In the area of regulatory and policy support, the World Bank previously provided support to operationalize BERC. A German Agency for International Cooperation (GIZ) consultant worked on the draft Energy Conservation Act. GIZ has played a central role in developing Sustainable Energy Development Agency (SEDA) and in collaboration with UNDP are planning to support human resource development once it is established. CCEB will support the strengthening of BERC in terms of institutional and human resource capacity in areas of regulations and enforcement and will complement other donor activities in supporting SEDA.

In energy efficiency, the World Bank supported a Compact Fluorescent Lamp (CFL) distribution scheme. The International Finance Corporation (IFC) is providing technical assistance to selected industries on cleaner production and energy efficiency; IFC’s focus industries include textiles washing, dyeing, and finishing units. The contractor is required to coordinate with IFC in supporting industrial efficiency in order to avoid duplication and overlap. The contractor will, therefore, focus on such industries that are not being supported by IFC efforts.

C.1.4 Relevant Past USAID Energy Sector Activities

Improved Capacity for Energy Access (ICEA) Program (USAID/Bangladesh)

ICEA was a 3.5 year program (April 2008 – Sept 2011) with the following two components:

Component 1: Promote Self Reliant Palli Bidyut Samities (PBSs):

ICEA component 1 activities were built on USAID’s long standing support for the rural electrification program in Bangladesh. ICEA activities were designed to improve performance of the rural electric cooperatives (PBSs) as well as lay the groundwork for substantial reform in the future. ICEA contributed to the overall reform discussion and made progress in stabilizing PBSs’ financial situation through the Rural Electrification Board (REB) rate case proposal. ICEA also established the groundwork for a PBS graduation policy to ensure greater self-reliance.

Component 2: Regulatory Capacity-Building:

USAID has been a leading donor in supporting the establishment and operations of the

Bangladesh Energy Regulatory Commission (BERC). ICEA activities focused on building the capacity of BERC staff and commissioners; providing technical support for a variety of rate case reviews and regulation development; and public consultation processes and outreach efforts.

South Asia Regional Initiative for Energy In addition, the South Asia Regional Initiative for Energy (SARI/Energy), USAID’s regional energy program located in Delhi, supports several programs that benefit Bangladesh. SARI/Energy is focused on efforts that foster regional electricity trade, promote renewable energy development, and help to establish open electricity markets. Several senior level government officials cited SARI/E’s work on regional power trade as the primary catalyst for the pending MOU between India and Bangladesh regarding the trade of up to 250 MW of power. SARI/Energy also undertook a Bangladesh solar and wind resource assessment based on available mapping data and incorporated them on a Geospatial toolkit. The toolkit was rolled out in Bangladesh in August 2010. The toolkit provided an indication of the potential areas for wind power in Bangladesh which, nevertheless, did not prove promising because of lack of mapping data at higher altitude and in some presumably viable coastal areas.

C.1.5 USAID and the Global Climate Change Initiative President Obama and the United States Government (USG) have committed to the various goals of the Copenhagen Accord and made Global Climate Change (GCC) a top priority for foreign policy as well as foreign assistance. The USG’s GCC strategy places emphasis on low-carbon development strategies, climate resilient development, and national planning and capacity building. USAID’s climate change activities fall under three pillars that correspond to the USG priorities and current efforts of USAID programs. The three pillars are:

1. Clean Energy: Includes activities that reduce, mitigate, and/or sequester emissions of greenhouse gases in the energy, industry, urban, and transport sectors; and,

2. Sustainable Landscapes: Includes activities and projects that promote forest conservation, improved forest management, agro-forestry, soil conservation, and sustainable agriculture;

3. Adaptation: Includes activities where climate vulnerability and adaptation are an explicit part of project analysis and design.

USAID’s clean energy programs and activities reduce global warming by promoting the sustainable use of renewable energy technologies, energy efficient end-use technologies, carbon sequestration, and carbon accounting. A primary objective of these programs is to reduce, mitigate, and/or sequester emissions of greenhouse gases.

As part of the Global Climate Change Initiative, USAID supports the USG’s Enhancing Capacity for Low Emissions Development Strategies (EC-LEDS) program, of which Bangladesh is a partner country. Through the EC-LEDS program, the USG supports capacity building for the development and implementation of national strategic plans on climate change, which will lead to significant reductions in carbon emission trajectories over the long term, relative to established baselines.

The CCEB program is intended to meet USAID’s clean energy directive, through deployment of clean energy and the development of Bangladesh’s enabling environment. It will also support the EC-LEDS program in Bangladesh by strengthening GOB capacity for energy sector analysis, planning, and policy-making to enable low emissions development.

C.2 STATEMENT OF WORK

Objective:

This statement of work (SOW) outlines the requirements for the new five-year energy project, the Catalyzing Clean Energy in Bangladesh (CCEB) project. CCEB will support energy sector development for energy security, economic growth, and climate change mitigation. Building on the work and achievements of the USAID/Bangladesh’s Improved Capacity for Energy Access (ICEA) activity (2008-2011), CCEB will work with the BERC, GOB ministries and agencies, energy utilities, and energy end-users for strengthening regulatory climate, increasing energy efficiency and promoting clean energy development through technical assistance, capacity building, and incentive programs.

Activities under CCEB will support capacity building through technical assistance and training of the Ministry of Power, Energy and Mineral Resources and other recipient institutions for the development and implementation of the Bangladesh Climate Change Strategy and Action Plan (BCCSAP) and future low emission development strategies in the energy sector pursuant to the U.S. Government Initiative on “Enhancing Capacity for Low Emission Development Strategies”

(EC-LEDS).

CCEB will enhance the enabling environment, build capacity to design and implement supportive policies and regulations, and increase utilization of clean energy technologies for energy sector development on a low-carbon trajectory.

The key results expected under this program are as follows:

Development Result 1: Enabling environment in place for low emissions development as a result of BERC and building capacity of GOB institutions in energy sector analysis for low-emission planning and policymaking.

Development Result 2: Increased energy efficiency and conservation through increased adoption of energy efficiency technologies and practices by industry; implementation of demand-side management programs by utilities; and increased use of improved, more efficient cookstoves.

Overview:

CCEB will consist of two components and five tasks:

Component A: Improve Enabling Environment for Low Emissions Development o Task 1. Improve Regulatory Environment for Clean Energy Development o Task 2. Strengthen analytical capacity for energy sector planning and policy-making

Component B: Increase Energy Efficiency and Conservation o Task 3. Promote Industrial Energy Efficiency Analysis and Adoption o Task 4. Adopt Demand Side Management programs for electric utilities o Task 5. Conduct Market Analysis and Development for Improved Cookstoves

In order to address energy sector challenges as described in Section C.1.1 and achieve the results of the aforesaid tasks, the contractor is required to implement interventions as described below under each task.

C.2.1 Component A: Improve Enabling Environment for Low Emissions Development

While the creation of BERC is a significant positive step forward, progress towards becoming a fully functional independent commission continues at a slow place due to lack of proactive Government support. Past USAID support has been instrumental in the adoption of public hearing procedures and efforts related to regulations on licenses, tariffs, uniform systems of accounts, and some preliminary work on technical quality of services. The challenge now is to help the BERC establish effective means for adopting, implementing and enforcing regulations pertaining to clean energy and low emissions development.

Task 1: Improve Regulatory Environment for Clean Energy Development

Discussion:

A congenial regulatory climate is essential to promote consumer confidence, cost recovery, transparency, predictability, and efficiency in sector operation. A strong regulatory environment is therefore also critical to attracting private sector investment in the energy sector, particularly in clean energy development. BERC plays an essential role in stimulating clean energy development in Bangladesh through their tariff and rate setting authority and ability to establish renewable energy and energy efficiency regulations and mandates.

The BERC Act mandates BERC to ensure transparency in the management, operation and tariff determination in the energy sector; to protect consumers’ interest; to promote creation of a competitive market and to create an atmosphere conducive to private investment.

USAID support for BERC under the ICEA program and NARUC cooperative agreement has been instrumental in the adoption of public hearing procedures and licensing regulations as key stepping stones towards setting a transparent and predictable regulatory process. BERC has also undertaken a series of rate setting exercises providing an incremental step towards a more commercially viable sector.

The contractor is required to build on this success and ensure BERC is an effective and independent regulatory authority. The project will ensure that BERC has a capacity to institute a regulatory framework that supports private sector investment in clean energy. Activities under this task will be done in close collaboration with Task 4 enabling utility demand-side management (DSM) programs.

BERC can play a proactive role in the formulation of a market structure and associated market rules for the energy sector and a framework for change towards a commercially-sound and market based operation. Such steps will eventually create prospects for a competitive electricity market exchange for power trading with capacity to link into a regional market. This will complement efforts under the USAID funded South Asia Regional Initiative for Energy (SARI/Energy) program.

Activities under this task will strengthen BERC’s capacity to effectively execute its functions mandated by the BERC Act. The contractor must take due cognizance of the institutional and human capacity building needs of BERC and other primary stakeholders, vis-à-vis the mandate of the BERC Act so that BERC may effectively formulate and enforce necessary regulations. It is expected that by the end of the second year of the project implementation BERC will able to perform its functions with minimum supervision from the USAID contractor, and by the end of the Year 3 without any support from USAID.

Interventions:

The contractor will build the capacity of BERC to draft, finalize, implement, monitor and enforce necessary regulations or other instruments in carrying out its mandate under the purview of the BERC Act of 2003. The contractor must submit a training plan as part of the annual work plan for USAID’s approval. Interventions under CCEB will likely include the following, however USAID welcomes the offeror’s innovative ideas on how to best strengthen BERC:

Regulatory Procedures: Build the institutional capacity to establish transparent and public procedures to regulate licensing practices, complaints hearing and disposal, alternate dispute resolutions, settlement and payment processes, market agreements, scheduling and dispatch protocols, customer metering and other regulatory functions that support cost recovery, self-financing, and investment attraction.

Tariff or Rate Setting: Build capacity for BERC and relevant utility staff on international best practices for determining utilities’ revenue requirements and tariff setting analysis, subsidy design, and methodologies. Such tariff analyses may include cost of service tariff, two-part (capacity and energy) tariff, availability/frequency based tariff, time of day tariff, congestion pricing, and other relevant tariff methodologies, and with particular focus on cross-border trade.

Clean Energy: Delineate and strengthen BERC’s role related to energy efficiency and renewable energy with respect to other potential institutions, such as SEDA. Continue development of BERC’s operational effectiveness and technical expertise particularly related to energy efficiency and renewable energy. Assist BERC in the formulation, adoption, and enforcement of regulations and standards with regards to renewable energy and energy efficiency, such as feed-in tariffs for renewable energy, DSM regulations for utilities, and other incentives for renewable energy (e.g., subsidies and rebates, tax relief, investment tax credits, accelerated depreciation, generation/production incentives, grants, loans, etc.). Support BERC in providing guidance to the GOB on clean energy policy development.

Open Processes and Stakeholder outreach: Build and strengthen BERC in-house capacity for conducting stakeholder outreach for regulated utilities, consumers, and other stakeholders. Follow up on outreach events to support stakeholders in acting on their roles and to support BERC in implementing the recommendations received from stakeholders.

Open access and market rules for competitive bulk electricity market: Help BERC to devise appropriate market structures and associated market rules for the energy sector and formulate a framework for change towards a competitive bulk electricity market. To this end, interventions will review and recommend actions for improvement in the policy, legal, structural, operational, customer service and regulatory areas. Interventions will also explore the prospects of creating a competitive electricity market exchange for power trading with capacity to link into a regional market in the future. In this context, activities will also support consultations, consensus building, and capacity building amongst various market stakeholders.

Data repository and management: Assist BERC in establishing data collection, management, and modeling systems, and build BERC staff’s analytical capabilities.

Monitoring and compliance: Build BERC’s capacity to establish viable monitoring processes for compliance with BERC’s regulatory requirements.

Training Needs Assessment: Conduct capacity needs assessment and training plan in the areas identified above.

Policy Support: Provide Policy guidance and recommending policy changes to further enable BERC fulfill its mandate

USAID expects the offeror to propose efficient and cost- effective approach(s) to build BERG’s capacity. If the offeror proposes to embed expat advisors into BERC there should be clearly defined scope of work for the advisors and their exit strategy in place approved by USAID COR. In addition, BERC should agree in writing to allocate office space and assign full time staff to work with advisor(s). Advisors will be coaching BERC’s personnel on how to perform their functions rather than doing the work for them. Such approach will ensure knowledge transfer, build the capacity of the counterparts, and long term sustainability of USAID assistance.

Primary local stakeholders for implementation of this task:

BERC

Regulated energy entities GOB ministries and agencies Consumer groups Other stakeholders

Expected Results include:

BERC able to conduct transparent public procedures to regulate licensing practices.

Increased participation among energy sector regulators, policy makers, utility operators, consumer groups and other stakeholders in best practice BERC regulatory processes indicated by progressive number of participating stakeholders for subsequent hearing under each regulatory process.

BERC formulated and adopted, regulations and standards for enforcement in key areas within its mandate including clean/renewable energy and energy efficiency.

Alternate dispute resolution process is in place within BERC to dispose complaints Building blocks are in place for competitive bulk electricity market e.g., policy, legal, and regulatory framework; market structures; market rules.

A fully operational data repository, docketing and management system in place that will allow BERC to operate effectively by the end of the Year 2 of the project.

BERC’s Training Needs Assessment and training plan developed by the end of the sixth month of the project and training conducted as per contractor’s yearly work plan.

BERC able conduct required analysis and procedures to move towards rationalized and cost-reflective tariff at both wholesale and retail level.

Task 2: Strengthen analytical capacity for energy sector planning and policy-making

One of the fundamental building blocks of any LEDS process is the capacity to model scenarios and analyze data, and then compare and contrast various development options, and select the option that appears to reduce emissions without restraining economic development.

There are opportunities to lower the emissions associated with this development of the energy sector. Identifying the most desirable options for energy sector development will require a greatly enhanced capacity to collect, model, and analyze information associated with the financial, economic, environmental, and social impacts of energy sector development.

Discussion:

Activities under this task will support enhancing GOB and Bangladeshi stakeholder capacity for energy sector and low emission development analysis and planning so that future energy and climate change plans and policies can be more oriented towards reduced GHG emissions (such plans and policies may include future versions of the BCCSAP, national energy policy, and energy component of the five-year plans).

Activities under this task directly support USAID’s commitment to the U.S. Government’s Initiative on Enhancing Capacity for Low Emission Development Strategies (EC-LEDS) in Bangladesh.

Interventions:

The contractor must coordinate with the primary local stakeholders and build their capacity to implement the following activities in support of Bangladesh LEDS development:

GHG Emissions Data and Analysis: Provide technical assistance, software, modeling, and training in tracking and analyzing greenhouse gas emission sources in the energy sector. This activity will be coordinated with activities conducted under the Inter-Agency Agreement with the U.S. Environmental Protection Agency.

Energy policy analysis: Provide training to GOB and other stakeholders on conducting modeling and analysis of energy policy scenarios and clean energy targets and their respective costs and impacts on energy, economic growth, emissions, and development goals. Support energy sector data acquisition, management, and analysis to be utilized in modeling and analyses.

Primary local stakeholders for implementation of this task may include:

Bangladesh Power Development Board (BPDB) and other generation facilities Power Division, Power Cell, and Sustainable Energy Development Authority (SEDA) of the Ministry of Power, Energy, and Mineral Resources (MPEMR) Other public and private sector institutions such as universities and NGOs/think tanks

Counterparts’ personnel able to conduct GHG measurements and analysis.

Emission data repository established within the Power Division of MPEMR for data tracking and analysis and staff trained to operate the repository.

Analytical capacity strengthened within GOB and related utilities for establishing energy sector priorities, plans, and policies GOB’s GOB’s selected staff able to model and analyze energy planning scenarios with respect to clean energy targets and their respective costs and impacts on energy, economic growth, emissions, and development goals.

C.2.2 Component B: Increased Energy Efficiency and Conservation

The gap between electricity supply and demand has grown steadily in Bangladesh. Meeting rising energy demand exclusively through increases in supply without demand side management is an expensive and infeasible solution. Advancing the efficient use of energy is therefore crucial to addressing the twin challenges of energy security and greenhouse gas emissions mitigation.

Recent studies2 have shown that significant commercially-viable opportunities for energy efficiency exist in Bangladesh, but these opportunities have not been capitalized on to date for various reasons. Major barriers include lack of access to financing (as commercial banks are not geared for lending for energy efficiency), lack of incentives for investment by end-users resulting from non-cost reflective electricity pricing, and lack of information and awareness about energy efficiency technologies and the associated costs and benefits.

Task 3: Industrial Energy Efficiency (EE) Analysis and Adoption

Opportunities to improve industrial energy efficiency (EE) are found throughout the industrial sectors. Assessments and implementation of cost-effective efficiency improvement opportunities in energy-intensive industries lead to lower emissions and cost-effective savings. Use of proven and innovative technologies provides potential opportunities for energy efficiency improvement in the various industrial sectors.

Discussion:

Substantial opportunities for energy efficiency exist in the industrial sector, particularly in medium-sized industries in which improved motors, pumps, and boilers; use of co-generation;

and improved industrial systems/processes could substantially reduce energy consumption. The returns on investment for these activities are highly favorable even under current electricity pricing schemes.

This activity will focus primarily on privately owned small and medium size industries particularly the ones that are export-oriented.

Interventions in this area will focus on catalyzing industry/enterprise investments in EE through a combination of project development, financing facilitation, and business advisory services/ technical assistance. This activity will assist companies in developing a pipeline of commercially viable projects, bringing projects to financial closure, and providing relevant technical assistance and training to support project sustainability and replication.

Activities will also support long-term sustainability and replication by strengthening private and public sector capacity for energy efficiency project development, financing, and implementation, through training of energy service providers.

During workplan development and project implementation, the contractor is required to draw on the final findings and recommendations of the “Industrial Energy Efficiency Opportunities Assessment in Bangladesh” report to be completed in summer 2012. The final report will be shared with the offerors/contractor when received by USAID.

2 World Bank and GTZ. Bangladesh Roadmap for Energy Efficiency Improvements and Demand Side Management. September 2009.

Interventions:

The contractor will be required to closely work with the primary local stakeholders and other donors for the following interventions under this task area:

Project identification and development: Assist appropriate primary local stakeholders to identify EE investment opportunities (e.g., market assessments/ cost-benefit analyses of EE investments); to develop business/investment models; and to provide business advisory/ enterprise support services to develop bankable EE projects. Priority will be provided to women owned businesses. Activities will include, but are not limited to, in the anticipated sequential order: (1) outreach and education to targeted industries/companies;

(2) solicitation of interest by companies/industries; (3) preliminary walk-through audit; (4) investment-grade audit; (5) training on preparation of loan applications; (6) presentation to financiers; and (7) technical guidance in project implementation. As part of project implementation, assistance will also include baseline studies and extent of cost savings and energy savings for identified EE projects.

Financing facilitation: Assist companies and project developers in determining financing needs and accessing financing, such as identifying commercial banks with appropriate EE financial products and providing assistance in completing commercial loan applications;

supporting transactions through energy equipment providers or energy service companies; and capacity building of financial institutions that provide EE financing.

Pilot projects and project incentive funds (grants): Grant funds will be used to facilitate initial interventions by companies as pilot projects. Grants will leverage private sector investment (i.e. be a cost-share) and may be in the form of provision of engineering services or procurement of equipment. Such incentives shall encourage early adopters of energy efficiency technologies and practices without distorting the broader market.

Incentives shall target projects that are inherently commercially viable and have the potential to be replicated and brought to scale once a successful demonstration project has been completed. The CCEB project is expected to spend no more than $2 million over the lifetime of the project as incentive funds for prudent use based on a well-structured incentive scheme and criteria for award. The contractor must demonstrate that all the options for outside funding have been explored and USAID grants is the only funding available to make the project viable. USAID anticipates that no less than 70 % of financing necessary for energy efficiency improvements in any identified industrial enterprise i.e. each project transaction facilitation will come from outside sources, and no more than 30% of grant funds will be used. The contractor will submit selection criteria and list of projects indicating, amongst others, the grant amount, energy saving potential and payback period for USAID’s approval. Incentive funds (grants) will be administered as Grants under Contract (GUC).

Capacity building for energy sector professionals: Support the establishment of a pool of private sector service providers, such as energy auditors and energy consultants and assist formation of energy service companies (ESCOs). As appropriate, support the establishment of “centers of excellence” housed within industry associations or academic institutions to provide training and advisory services for enterprises interested in EE projects. It is envisioned that over time, these service providers will assume some of the functions of the contractor in EE project identification, development, and financing facilitation. The Contractor will submit a training program for USAID’s approval as part of the annual work plan.

Primary local stakeholders for implementation of this task may include:

SEDA

Industry associations and Business Chambers including the Women Business Chamber Small and Medium Enterprises (SMEs) and SME Foundation Energy consulting companies Academic institutions Other appropriate stakeholders

At least 40 EE project transactions, including those identified in the “Industrial Energy

Efficiency Opportunities Assessment in Bangladesh” report, facilitated to achieve energy savings and GHG emissions reductions.

Private sector financing leveraged.

Trainings conducted in each of the following areas: energy auditing, project development, energy efficiency financing, and project management. Training programs shall include training of trainers programs.

Create a pool of at least 50 certified energy auditors.

Task 4: Demand Side Management programs for electric utilities

In view of inability to meet peak demand because of lack of supply, demand-side management (DSM) has been traditionally been practiced for reducing peak electricity demand. However, due to derated generation capacity and unpredictable load pattern, DSM is also at times practiced during off-peak hours. By reducing the overall load on an electricity network, DSM can have various beneficial effects, including mitigating electrical system emergencies, reducing the number of blackouts and increasing system reliability. Possible benefits can also include reducing dependency on expensive imports of fuel, reducing energy prices, and reducing harmful emissions to the environment.

Discussion:

Activities under this task will build on USAID/Bangladesh’s past efforts in strengthening electric utilities, which have resulted in several effectively-managed and commercially-viable utilities.

Utility led demand side management (DSM) programs have emerged as effective models for wide-scale adoption of energy efficiency and conservation practices. Activities under this task will work with urban distribution utilities to implement demand-side management programs. This work will be done in a sequenced manner with the activities recommended in Task 1, supporting BERC in first establishing a regulation requiring utility-DSM projects, and then working with the utilities on cost-effective DSM initiatives and appropriate smart-grid applications.

Interventions:

In close coordination with the GOB, utilities, and other donors, and contingent on the development of DSM regulations under task 1, interventions in this program area will include the following:

Smart Grid: Assess utilities’ ability to adopt smart grid capabilities and technical support to implement smart grid capability on pilot basis (e.g., smart meters, improved grid management systems). Provide technical assistance for utilities for load management techniques.

DSM program analyses and design: Conduct quantitative load studies, cost benefit analysis, and other supporting analysis as appropriate for utility DSM programs. Evaluate economics, financing schemes, and distribution models for specific utility disseminated energy efficient end use technologies and provide technical assistance for implementation of these programs on area or feeder basis.

DSM program implementation: Technical support to utilities for implementation of DSM programs.