Country: / Republic of Belarus
Description of the Assignment:
Type of Contract / Wind Energy Financing Expert
IC – Lump Sum
Project: / PIMS 4462: Removing Barriers to Wind Energy in the Republic of Belarus
Period of Assignment/Services:
Number of Working Days:
Payment Schedule:
Duty Station: / 10th May – 31st January 2019.
60 working days over a 9 months’ period.
Payment will be made in two installments, the first of 60% of the final contract total amount and the second installment of 40% of the final contract total amount (the number of payments may be reconsidered at the contract signature in accordance with the deliverabels).
Home based with 4 missions to the Republic of Belarus over a 9 months’ period with each mission being a minimum of 10 working days, in country. (20 days home based, 40 days in Belarus).
Proposal should be submitted to no later than May 04 2018, COB. Any request for clarification must be sent in writing, or by standard electronic communication to the address or e-mail indicated above. MNREP will respond in writing or by standard electronic mail and will send written copies of the response, including an explanation of the query without identifying the source of inquiry, to all consultants.
The United Nations Development Programme (hereinafter – UNDP) plays a key role as a partner of the Government of Belarus in the implementation of programs and policies to improve energy efficiency and introduce renewable energy sources. In particular, UNDP supports the Government of Belarus by virtue of the country's capacity building and arrangement of conditions for wind power development to achieve the goals to reduce the GDP energy intensity within the framework of the project “Removing Barriers to Wind Power Development in Belarus” financed by the GEF under the Climate Change Strategy.
This project provides for support in removing barriers to the implementation of projects in the field of wind power in the Republic of Belarus. Within the framework of this project, it is proposed to create financially viable partnership between the state and the private sector in order to promote investment activities in the Republic of Belarus through initial capital and to demonstrate practical elaborations in wind power on a market basis. By the time of the project completion it is expected to create stable incentive conditions and procedures for the assistance in the implementation of wind power projects with a total installed capacity of not less than 25 MW.
The project aims to render assistance in removing barriers to wind power development in the Republic of Belarus. The project's contribution to the achievement of this goal will be measured by its success in the development of not less than 5 sites for the construction of wind farms, that will directly or indirectly lead to obtaining permits, financing and construction of wind mills with a capacity of at least 25 MW in Belarus. The project task is the creation and application of such a mechanism for these wind power stations, which will become a standard scheme in the future and will open up opportunities for the prospective development of wind power stations by private developer’s companies.
The major problem that the project seeks to address is that wind power in Belarus is not commercially attractive to private investments in the creation of wind farms due to certain barriers. In order to support the development of wind power in the Republic of Belarus, it is necessary to overcome a number of obstacles. These barriers and proposed ways to overcome them within the framework of the project are briefly described below.
Project Component / Type / Project Response1. Development of secondary legislation facilitating wind power development with the support of the project. / Institutional / 1.1. Assistance in development and application of institutional infrastructure provisions based on the best European practices and policy, in particular, for the State RES Cadaster, RES inventory and validation systems, “green energy” record keeping and certification systems, etc., in conformity with the Law on Renewable Energy Sources (the RES Law).
1.2. Assistance in development and enforcement of legal regulations on renewable power generation in implementation of provisions of the RES Law based on European practices and policies providing a favorable environment for wind power development.
1.3. Assistance in harmonization of the new/improved technical regulations and standards, including the status of wind farms and grid connection standards with relevant European regulations. They shall also include provisions on setting a fixed floor for a flat rate tariff to be used as a baseline for an established feed-in tariff or another viable alternative, as well as on the methodology of is determination; provisions on setting fair tariffs for transmission, provisions on charges for the use of infrastructure, provisions on expenses on loss compensation and other cost components providing for viability of the creation of wind mills.
1.4. Establishment of a Wind Power Development Support Group and Wind Private Finance Initiative to promore wind power development in Belarus along with recommendations on investment climate improvements focused on investment environment for domestic and foreign investors in the power-generating sector, and the development of a commercially viable wind power industry in Belarus.
Increase of confidence in the profitability of wind power development projects.
Precise understanding among stakeholders and general public of the benefits of wind power and other renewable sources for power generation / Awareness and understanding / 2.1. Conduct of an awareness-raising program for decision-makers (in government agencies and local authorities, public institutions, companies, financial sector) in order to deepen understanding and positive perception of wind power.
2.2. Improving technical capacity of specialized local engineering and consulting companies in terms of site selection, design, installation, operation and maintenance of wind mills at sites selected by the project.
2.3. Introduction of wind power issues in curricula on renewable power generation in specialized universities and technical institutes.
2.4. Financing of extra costs of the development of effective wind mills, including site visits, obtaining permits and required approvals.
2.5. Preparation and publication of manuals and brochures promoting wind power as a source of renewable energy providing social, environmental and economic benefts, including a wind power guide book for investors and developers covering such aspects as wind energy project development, evaluation of sites, license acquisition, construction and operation.
Provision of an investment grant(s) under the GEF Project designed to facilitate effective construction and operation of a pilot wind farm in Belarus
Subsequent investment grants shall be subject to co-funding by the Government /investors / Financial / 3.1. Support in prospective site identification, environmental assessment, pre-feasibility studies and justification of investments, as well as business planning in accordance with the requirements of prospective investors and developers including support in the conduct of detailed wind measurements at the best selected sites.
3.2. Identification and assessment of existing possibilities for public, private and carbon funding, funding from domestic and foreign investors; assistance with the formulation of proposals for banks, and conduct of negotiations with prospective investors and stakeholders on at least 5 sites for the construction of wind farms, assistance with obtaining permits, fund rising and constructoin of wind farms with an overall capacity above 25 MW and gross generation of at least 1 billion kWh over a period of 20 years.
3.3. Assistance with the conduct of project design work at target sites reducing risks factors that can impede effective operation of large wind farms with a capacity of at least 5 MW (the target level is 10 MW).
The role of the International Financing Expert on Wind Energy is to support the attraction of investors and investment into wind energy in the Republic of Belarus, working closely with the Project management Unit, MNREP, UNDP and the juridical company hired by MNREP to steer the latter through the complexities of the investment tenders for the wind power projects prepared in the framework of the Project.
Constant missions will be carried out over a 10 months’ period to the Republic of Belarus. Each mission should include a minimum of 10 working days in the Republic of Belarus, not including travel days.
Part I: Preparation for Wind Energy Investor Attraction (25 days total)
1.1 Development of the qualification criteria for the identification of potential investors for the pre-investment assets developed in the framework of the project. (14 days)
The project envisages cooperation between the state and the private sector in order to stimulate investment in the Republic of Belarus by reducing risks at the stage of developing wind energy projects.
In accordance with the project document the RUE "Belarusian Research Center "Ecology "- an organization subordinated to the Ministry of Natural Resources and ALC" ENEKA "- consulting and engineering company selected by the tender to provide services for the feasibility study for the construction of wind power plants with a total installed capacity of at least 25 MW – founded an LLC "Wind Private Finance Initiative".
The task of the company, according to the project document, is to provide for the formation of pre-investment assets, including the creation of a legal entity for each project, obtaining permits, organizing the development of pre-project documentation for the construction of wind power plants for the further provision of these assets to the investor on competitive basis.
As a result of preliminary prescreening five most attractive sites for wind power development were selected, including the sites near:
Veleškovichi village of the Lioznensky district of the Vitebsk region;
the village of Vejno of Sennitsky district of the Vitebsk region;
Zagoryane village, Gorodoksky district, the Vitebsk region;
Yanovichi village of Novogrudok district, the Grodno region;
Starye Boruny village, Smorgon district, the Grodno region.
To date, the following permits have been received for the selected sites:
technical specification (or considerations) for the connection to the grid;
Approval of the Ministry of Defense of the Republic of Belarus;
approval by RUE "BelGIE";
Approval of the Department of Aviation of the Ministry of Transport and Communication of the Republic of Belarus;
Approval of the regional committees for natural resources and environmental protection.
In order to confirm the calculated data on the wind energy potential on sites, wind measurement campaigns have been launched. For the site near the village of Veleshkovichi the project has obtained a report on the wind measurements from the company that has a valid accreditation DIN EN ISO / IEC 17025.
The feasibility study (pre-project) documentation has been developed for the construction of wind power plants on the above-mentioned sites.
Within the framework of the project it is planned to introduce exclusively new modern equipment that allows to use the wind power potential of the selected site as efficiently as possible and, accordingly, to reach the highest average annual utilization factor of the installed capacity.
Prior to the commencement of the below tasks the International Consultant will get familiar with the Project document, reports and documents developed under the project, which make the “pre-investment asset”; meet with the major stakeholders (MNREP, WPFI, project contractors – Eneca, Malaya energetika, Artzinger and Partners, as well as Ministry of Economy, NAIP, IFC, EBRD, Belinvestbank and others). The Consultant will also study the national investment and RES legislation.
The project and LLC "Wind Private Finance Initiative" will organize an investment tender to identify the investor for the first site in Veleshkovichi (25 MW with quota) in May-June 2018. The second investment tender for the remaining four sites will be held in the period November 2018 – January 2019. The Consultant is expected to assist in organization of these tenders – advising the form of the competitive selection of the investor, qualification criteria and other details of the procedure. The legal support will be provided by a separately hired juridical company – Artzinger and Partners.
1.2 Development of a Brief Strategy Guide for Investor Attraction for Wind Energy for Republic of Belarus.
The document outlines the general approach towards attracting investment in wind energy in the Republic of Belarus, focusing on what makes Belarus an attractive investment for Wind Energy in the Republic of Belarus. The risks for investment will be clearly explained and the means by which Government of Belarus is overcoming these barriers will also be explained. The Strategy for Investor Attraction should include an Annex with the names and contact information of all possibly companies (at least 20 companies or more) interested to investment in wind energy in Belarus and another Annex should include a standard letter whereby the Project Manager (or MNREP) will write to each potentially interested company attaching the Brief Strategy and explaining what the project is proposing to do to support the development of wind energy market in Republic of Belarus. The length of the guide is not expected to exceed 15 pages and it will become part of tender and pre-qualification documentation to get new companies and investors interested in Wind Energy in Belarus. (11 days)
All the activities under Part I of the assignment are considered, when put together, to be Part I of the assignment. Part I should aim to be completed within 1 month from the start of the assignment and it carries a weighting of 40% of the total contract amount and payment for Part I shall be for 30% of the entire contract amount. Work under Part I includes at least two missions to the Republic of Belarus.
Part II: General Support Related to launch for Wind Energy Private Sector Finance Initiative (35 working days total)
The work will include for the following activities:
2.1. Support the WPFI with drafting the marketing strategy to promote the services that WPFI provides in accrodance with the project document and its statutory documents. (15 days)
2.2. Support the Project and WPFI in the process of the investment tender with evaluation of the proposals submitted by potential investors; review of the proposals, compilation of the short list of the investors, identification of the best proposal. (20 days)
2.3. Make a presentation at the conference in November 2018 on investing in wind energy in Belarus and other countries (taking into consideration a study Derisking Renewable Energy Investment in Belarus developed earlier in the Project - ) (2 days)
All the activities under Part II of the assignment are considered, when put together, to be Part II of the assignment. Part II should aim to be completed within 1-10 months of the start of the assignment and it carries a weighting of 40% of the total contract amount and payment for Part II shall be for 40% of the entire contract amount. Work under Part II includes at least one mission to the Republic of Belarus.
Key Deliverables:- Detailed qualification criteria to be used in the investment tenders of the Project and WPFI (1.1)
- The definition of the tender procedure with the rationale for its application in the Project (1.1)
- Brief Strategy Guide for Wind Energy Investor Attraction (1.2)
- Marketing strategy to promote the services that WPFI (2.1)
- Evaluation of the proposals submitted by potential investors rendered in detailed and argumentative evaluation reports (2.2)
- Short list of the investors (2.2)
- A presentation at the conference in November 2018 on investing in wind energy in Belarus and other countries (2.3)
- Perform other related duties as requested by the Project Manager aimed at helping to overcome barriers to wind energy in the Republic of Belarus, focused on financial barriers
- The International Consultant will work from home for approximately 20 working days out of the 60 working days of the assignment
- The International Consultant will undertake 4 missions to the Republic of Belarus during the duration of the assignment, with each mission being an estimated 10 working days in the Republic of Belarus, for a total of 40 working days spent in Belarus during the course of the assignment
- The Consultant will be given access to relevant information necessary for execution of the tasks under this assignment, the access to which is not restricted in accordance with the legislation of the Republic of Belarus;
- The Consultant will be responsible for providing her/his own laptop;
- A minimum of 4 mission will be taken to the Republic of Belarus, during the course of the assignment, and the travel cost/accommodation cost of these missions should be included in the financial proposal;
- The Consultant is responsible for obtaining the necessary medical insurance to travel to Belarus;
- Visa costs will be paid for by the International Consultant and included in the proposal.
Competencies
Corporate Competencies:
- Excellent communications and networking skills;
- Ability to work effectively as part of a team;
- Strong interpersonal and negotiating skills;
- Ability to work in a multicultural environment; and
- Sound judgment and discretion.
Education
- Masters level qualification, with experience related to business, investment, economics, finance, renewable energy, or environment
- At least 10 years of post-Masters degree relevant experience in the area of investment, including investment in sustainable energy;
- Private sector experience in an investment advisory or consultancy capacity working with renewable energy, preferably with the financing of wind energy projects;
- Has applicable experience working in the Europe & CIS region related to investment attraction, demonstrating successful cases of projects (renewable energy projects are preferred);
- Previous experience working in the Republic of Belarus or in Russian speaking countries;
- Experience of advisory service to the Government of the Republic of Belarus in the investment area is an advantage.
- Demonstrates strong oral and written communication skills;
- Focuses on impact and results for the client and responds positively to feedback;
- Leads teams effectively and shows conflict resolution skills;
- Consistently approaches work with energy and a positive, constructive attitude;
- Builds strong relationships with clients and external actors;
- Remains calm, in control, and composed even under pressure;
- Demonstrates openness to change and ability to manage complexities;
- Communicates effectively with staff at all levels of the organization;
- Acts with tact and diplomacy;
- Proves outgoing and comfortable in handling external relations at all levels;
- Demonstrates compelling communication skills and cross-cultural effectiveness; and
- Demonstrates experience in bilateral and/or multilateral negotiations, and negotiating and training / facilitation skills.
Required Skills and Experience
Languages:
- Fluency in English;
- Knowledge of Russian is desirable;
- Knowledge of other European languages (French, German, Polish) is an advantage but not required.
ANNEX A - FINANCIAL PROPOSAL FORM