Public procurement notice: Contract Notice
Published: 2018-03-01
Buyer: JSC Vostokelectro
Country: KG
Contract type: Services
Procedure: Open procedure
CPV classification: 34144000: Special-purpose motor vehicles | 38000000 | 38421100 | 42990000 | 45232431
Submission deadline: 2018-03-23
Award criteria: Other

Technical requirements: Joint Stock Company Vostokelectro (“Vostokelectro” or the “Client”) is a regional monopoly distribution company operating in the eastern part of the Kyrgyz Republic with around 14 % market share in electricity distribution at country level. Vostokelectro supplies electricity to 172 000 residential customers and 12 000 legal entities. The company employs around 1 700 staff and operates c.4 800 transformer substations and 13 000 km of electricity lines. In 2015 the company distributed nearly 1 300 GWh of electricity.
Vostokelectro has requested a loan from the European Bank for Reconstruction and Development (the “Bank”) to modernise electricity distribution networks in the Tup and Jeti-Oghuz regions (the “Oblasts”) of the Kyrgyz Republic (the “Project”).
The project will enable the company to reduce electricity and commercial losses as well as help meet the growing demand for electricity which is difficult to accommodate with the existing power infrastructure. The project also aims at improving the Client’s electricity distribution services by financing priority investments for the rehabilitation and modernisation of the metering system and strengthening of the network. The Project will include the installation of modern electricity meters and automatic control systems, strengthening the capacity and efficiency of transformers, and distribution lines aimed at reducing distribution network losses and increasing energy efficiency.
Vostkoelectro operates in a regulated environment. Tariffs are set and revised annually by the energy regulator recently established as part of a reform agenda. Tariffs are set in accordance with the mid-term tariff methodology also recently approved by the Government.
In parallel with the hardware investments, the project will contribute to the development and institutional strengthening of the company in respect of reporting, procurement, corporatisation, and creditworthiness enhancement.
The client now intends to retain a consulting company (the “Consultant”) to assist the client in improving its commercial standing, service as well as its environmental and social performance, by helping to identify and implement the necessary corporate, financial and operational improvements required to meet the related covenants included in the EBRD finance documents.
— Development and implementation of a Financial and Operational Performance Improvement Programme ("FOPIP"),
— HR system review in the light of inclusivity and gender equality (including provision of trainings),
— Development and adoption of a medium-term Corporate Development Plan that will be renewed annually.
— Co-operation with the Ministries and Vostokelectro to implement the covenants stipulated under the loan agreement.
The expected outcome of the assignment is increased energy efficiency, reduction in losses, and improvements in reliability of power supply. These in turn will stimulate the process of commercialisation of Vostokelectro’s operations and increase its transparency.
Status of selection process: Interested firms or groups of firms are hereby invited to submit expressions of interest.
Assignment Start Date and Duration: The Assignment is expected to start in Q2 2017 and have an estimated overall duration of three years until project completion.
The consultant must determine whether any indirect taxes /VAT are chargeable on the proposed services and state the basis for such. If any indirect taxes /VAT are payable, the client will have to pay indirect taxes /VAT element to the services directly to the consultant unless otherwise agreed.
Funding Source: It is anticipated that the contract will be financed by shareholder special fund. Selection and contracting is subject to the availability of funding.