Description of the goods or services required
Agriculture is one of the leading sectors of economy of Kazakhstan and plays the main role in provision of food products to the people of this country. Kazakhstan possesses considerable potential capacities for agriculture. Its development will help to increase employment and accelerate economic growth of the Republic of Kazakhstan. It will also help to increase export of agricultural products and reduce their import.
To increase the production of agricultural products, it will be necessary to expand the irrigated land, which, in turn, can be achieved by increasing the water supply for irrigation up to 15.34 billion m3 by restoring and modernising the water management, irrigation and drainage infrastructure. In this regard, the Government of the Republic of Kazakhstan and the European Bank for Reconstruction and Development (the EBRD or the Bank) signed a senior loan in May 2017 equivalent to 174 million US dollars to finance a project aimed at the rehabilitation of irrigation infrastructure (mainly irrigation canals) in Aktobe, Zhambyl and South Kazakhstan regions of Kazakhstan (the “Project”).
The Project is implemented by RGP Kazvodkhoz (the “Company”), a national water utility company, which took out a loan from EBRD. The Company employs 8,000 people working in 20 subsidiaries across the country and is involved in the following three major activities:
i.Maintenance and operation of all hydro-technical facilities in Kazakhstan, including dams and water reservoirs;
ii.Supply of water to all irrigation water consumers in Kazakhstan through irrigation canals with a total length of 2,000 kilometers;
iii.Supply of drinking water to all rural residents in Kazakhstan (50 per cent of the country’s population) and enterprises located in rural areas through drinking water canals with a total length of 10,000 kilometers;
The Company is a natural monopoly and its tariffs are set by the Committee for Regulation of Natural Monopolies under the Ministry of National Economy of Kazakhstan.
To support the Company in the development and implementation of the corporate, financial and operational performance improvement programme (the “Assignment”), the Company intends to select and contract a consulting company (the “Consultant”).
The Consultant shall assist the Company in improving its commercial standing and service by helping to identify and implement the necessary corporate, financial and operational improvements. This will be achieved via the following major institutional development actions:
•Development and implementation of a Financial and Operational Performance Improvement Programme.
•Development and adoption of a Corporate Business Plan.
•Development and introduction of a Management Information System.
•Development or adoption of a new tariff calculation methodology (if it is available by that time and approved by the GoK).
•Development and adoption of a Compliance Action Plan.