Environmental Tariff Study for NEPRA

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Expression of Interest are invited for Environmental Tariff Study for NEPRA REQUEST FOR EXPRESSION OF INTEREST FOR SELECTION 1270411This Request for Expression of Interest is for a Firm Selection Please log in as a valid Firm User if you wish to express interest in this selection Selection InformationAssignment TitleEnvironmental Tariff Study for NEPRAPublication Date 11 Sep 2020Expression of Interest Deadline 24 Sep 2020 at 11 59 59 PM Eastern Time Washington D C Language of Notice EnglishSelection NoticeAssignment Country PK PakistanFunding SourcesThe World Bank Group intends to finance the assignment services under BB BANK BUDGET TF0A4222 SDIP II for MENA TF0B0293 KIPP Pakistan ES HydroIndividual FirmThe consultant will be a firm Assignment DescriptionSELECTION FOR CONSULTANTS for IFC THE WORLD BANK GROUPREQUEST FOR EXPRESSIONS OF INTERESTElectronic Submissions through World Bank Group eConsultant2https wbgeconsult2 worldbank org wbgec index htmlASSIGNMENT OVERVIEWAssignment Title 1270411 Environmental Tariff Study for NEPRAAssignment Countries PakistanASSIGNMENT DESCRIPTIONThe advisory agreement between IFC and NEPRA involve the E S Costs including climate within the Tariff structure study would not just be of great value to Pakistan but is also aligned with IFCs Country Strategy to reduce reliance on fossil fuels non renewables LNG Coal Diesel HFO etc and increase the share of renewables Hydropower Solar Wind etc in the national energy mix The goal is to via a stakeholder engagement process develop standard KPIs to assess the real true environmental and social costs and socio economic development benefits of the different sources of energy in Pakistan define best mechanisms to pay for such costs in each case and design and implement a multi agency compliance supervision structure mechanism to assess and enforce performance This will help lead the way upstream for more financially competitive private renewable energy RE investment projects in Pakistan ELIGIBILITYEligibility restrictions apply Please type list of restrictions INDIVIDUAL FIRM PROFILEThe consultant will be a firm SUBMISSION REQUIREMENTSThe World Bank Group now invites eligible firms to indicate their interest in providing the services Interested firms must provide information indicating that they are qualified to perform the services brochures description of similar assignments experience in similar conditions availability of appropriate skills among staff etc for firms CV and cover letter for individuals Please note that the total size of all attachments should be less than 5MB Consultants may associate to enhance their qualifications Interested firms are hereby invited to submit expressions of interest Expressions of Interest should be submitted in English electronically through World Bank Group eConsultant2 https wbgeconsult2 worldbank org wbgec index html NOTESFollowing this invitation for Expression of Interest a shortlist of qualified firms will be formally invited to submit proposals Shortlisting and selection will be subject to the availability of funding Only those firms which have been shortlisted will receive notification No debrief will be provided to firms which have not been shortlisted Attachments Optional TOR FileQualification Criteria 1 Provide information showing that they are qualified in the field of the assignment Pakistan experience International experience 2 Provide information on the technical and managerial capabilities of the firm 3 Provide information on their core business and years in business 4 Provide information on the qualifications of key staff including a mix of gender diverse international and Pakistani consultants Environmental Tariff Study for NEPRATerms of Reference 1 BackgroundPakistan has a huge potential for hydropower development to contribute to domestic sustainable and cost effective sources of energy and has plentiful potential for other renewable resources including solar in central plains and wind power in the southern provinces of Sindh and Baluchistan The country also established availability of rich indigenous coal resources in the country meeting its rising energy demands Pakistan has become one of the largest Independent Power Producers IPP markets in the world with some 78 IPPs and a total installed capacity of 35 GW against a record load of 23 GW By FY25 another 16 GW is expected to be added to the system Despite the current power oversupply a medium term analysis of the demand supply gap predicts a supply shortage in FY25 considering peak demand with a reserve of 15 according to a World Bank commissioned study by Lahmeyer International The National Electric Power Regulatory Authority NEPRA the sole authority established under Section 3 of the Regulation of Generation Transmission and Distribution of Electric Power Act 1997 to exclusively regulate the provision of electric power services in the Islamic Republic of Pakistan NEPRA is responsible for issuance of guidelines procedures and standards grant of licenses determine tariff rates charges and other terms and conditions for supply of electric power services by the generation transmission and distribution companies and recommend to the Federal Government for notification The NEPRA has a mechanism and guidelines in place for determination of tariff for power projects in the public sector and IPPs which include reviewing all the aspects of the projects including design engineering construction installations operations and maintenance However there is no standard methodology or guidelines in place for evaluation of Environmental and Social E S costs of the projects The E S aspects of the projects are regulated by provincial environmental regulators whereas the environmental cost of the projects in the tariff is regulated by the NEPRA There is also no formal mechanism in place for the coordination between the power and environmental regulators during the process of tariff determinations nor any applicable follow up compliance monitoring therefrom IFC a member of the World Bank Group is an international organization whose purposes under its Articles of Agreement include seeking to stimulate and to help create conditions conducive to the flow of private capital domestic and foreign into productive investments in member countries The IFC has signed an agreement with NEPRA in June 2020 to provide advisory services to develop a standard methodology with Key Performance Indicators KPIs for the inclusion of the E S including climate costs within tariff structures and capacity building of the government authorities both federal and provincial for supervision of E S activities on energy generation projects 2 Goal of Advisory ServicesThe advisory agreement between IFC and NEPRA involve the E S Costs including climate within the Tariff structure study would not just be of great value to Pakistan but is also aligned with IFC s Country Strategy to reduce reliance on fossil fuels non renewables LNG Coal Diesel HFO etc and increase the share of renewables Hydropower Solar Wind etc in the national energy mix The goal is to via a stakeholder engagement process develop standard KPIs to assess the real true environmental and social costs and socio economic development benefits of the different sources of energy in Pakistan define best mechanisms to pay for such costs in each case and design and implement a multi agency compliance supervision structure mechanism to assess and enforce performance This will help lead the way upstream for more financially competitive private renewable energy RE investment projects in Pakistan 3 Purpose of EngagementThe key objectives of this assignment are to establish a benchmark for calculation of E S costs including climate by developing a standard criteria KPI and data driven methodology to be covered within the tariff structure and build capacity of the relevant federal and provincial E S authorities to ensure that they are aware of such budget earmarked for E S impact mitigation process In order to undertake this assignment the IFC NEPRA seek the services of a multi disciplinary team of international and Pakistani consultant firm with expertise as follows 1 Energy specialist experienced in tariffs structuring regulations and power policies 2 Environmental specialist experienced in energy sector within various technologies as indicated in the scope of work 3 Social development specialist experienced in large infrastructure projects within energy sector 4 Legal specialist experienced in energy and environmental aspects in the country 5 Technical specialist experienced in feasibility studies of power projects in various sources and technologies 4 Scope of Work1 The Consultants will review and map the current practices within the power and environmental regulators on identification and implementation of E S costs 2 The Consultants will propose a list of typical E S including climate impacts and risks and related matching indicative reasonable direct and indirect mitigation costs per unit energy associated with each type of generation technology fuel source including Hydropower Solar Wind LNG Coal and Diesel HFO 3 The consultants will propose a reasonable methodology account for a negative externalities societal costs of any E S including climate residual impacts and b positive externalities E S additionalities of each type of generation technology fuel source including Hydropower Solar W

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