Description of the goods or services required
GrCF2 W1: Balti District Heating - Phase II
The City of Balti (the “City”), is the Moldova’s second largest city in terms of area and economic importance, and is the third largest in terms of population (145,000 inhabitants). CET-Nord JSC (the “Company”), a wholly state owned company provides district heating (“DH”) services in the City. The Company supplies ~140,000 Gcal of heat per year to approximately 60% of residents in the City (768 apartment buildings) as well as 485 businesses.
The European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) has previously cooperated with the Company, providing a loan of €7 million loan and a €740,000 grant alongside the E5P multi-donor fund which contributed a €3 million grant to fund the following improvements:
• Installation of four natural gas engine based combined heat and power units
• Rehabilitation of the heat generation system, including multiple pump and fan replacements and the installation of frequency converters
• Installation of 169 individual heating substations in 130 residential buildings
• Conversion of a coal-fired heat-only boiler to biomass
Following the successful implementation of the above, the Company is now turning its attention to improving the efficiency and operation of heat transmission and distribution infrastructure and building level systems.
In light of the above, the Company has approached the EBRD with a request to assess the possibility of financing the following potential investments (the “Project”):
• Installation of ‘horizontal’ heating systems in apartment buildings, apartment level metering or allocation and reinstatement of domestic hot water (DHW) supply;
• SCADA system;
• Implementation of a network hydraulic model and management information system.
The estimated value of the Project is EUR 10 million and the EBRD is considering a loan of up to EUR 8.0 million where EUR 7.0 million will be provided for the Bank’s account and approximately EUR 1.0 million from the Green Climate Fund (“GCF”). The loan is expected to be complemented by a capex grant of approximately EUR 2.0 million.
EBRD intends to select and contract a consulting company (the “Consultant”) to provide the Bank with the information, analysis and recommendations it needs to comprehensively assess, structure and approve the Project through carrying out a Feasibility Study.
The selected Consultant is expected to provide the following services:
• Collect data to establish a baseline for comparison and identify the key outcomes to be achieved
• Develop a Long Term Investment Programme (“LTIP”), outlining the strategic investment needs of the Client, and based on this produce a detailed Priority Investment Programme (“PIP”)
• Prepare a financial and economic analysis of the Project and the Company
• Prepare an Environmental and Social Assessment of the Project
• Prepare a draft procurement and implementation strategy, taking into consideration the Bank’s PP&R for Public Sector Operations
Undertake all necessary Green Economy Transition (“GET”) assessments in line with the Bank’s GET methodology
• Prepare an overall Project risk assessment, which identifies the relative severity of each risk identified in relation to the Project
The detailed scope of work and services (the “Services”) of the Assignment are further described in the Full Terms of Reference (the “ToR”) which can be accessed from the following link: