TRANSACTION ADVISOR FOR THE USAID POWER AFRICA TRANSACTIONS AND REFORMS PROGRAM (PATRP) IN LIBERIA STATEMENT OF WORK FOR THE TRANSACTION ADVISOR 0.0 THE POWER AFRICA PROGRAM IN LIBERIA The Power Africa Transformation and Reform Program (PATRP) in Liberia aims at alleviating the shortage of electricity, one of Liberia’s greatest challenges to development, by increasing availability of electric power supply to meet the people’s needs, access to grid and off-grid communities, reliability of supply, affordability and at the same time, lowering greenhouse gas emissions and increasing efficient use of resources and the quality of energy supply. Power Africa’s approach focuses on partnership, driven by connecting the private sector investors and entrepreneurs to opportunities in Liberia in partnership with the Liberian government, the U.S. Agencies and multilateral and bilateral donors. The Project is aimed at introducing strategies for energy sector development, promoting efficient resource management and accelerating investments to develop resources, build electric power generation, distribution and transmission facilities and expand the reach of electricity grid, mini-grid and off-grid clean energy generation capacities through a transaction – centered approach and driving forward the needed energy sector reforms in Liberia that pave the way for future investments and energy technologies. In view of the above, PATRP shall engage the services of a Transaction Advisor in Liberia, with responsibilities similar to those of Transaction Advisors in other Power Africa countries, as described in the Scope of Work below. Given the recent Ebola situation in Liberia, there is a requirement for flexibility in the SOW to enable the Transaction Advisor to respond to USAID’s requirements in the near- to mid-term. 1.0 DUTIES OF THE TRANSACTION ADVISOR (TA) 1.1 Transaction Selection/Pipeline Development/ Private Sector Engagement The Transaction Advisor will work with the Energy and Security Group (ESG), the USAID Power Africa Liberia Team, professional and support staff and the relevant Ministries and Agencies of the Government of Liberia (GOL) in order to achieve his objectives. In this process, the Transaction Advisor shall assist in the collection of baseline data and information in support of decisions aimed at setting targets, priorities and an implementation schedule for the tasks detailed below: a. Professional and Support Staff/Capacity Requirements and Budget: The TA, in consultation with ESG and USAID shall propose professional and support staff needs from time to time during the course of the assignment to assist USAID’s development and operations of Power Africa Transaction Advisory Services Office. In addition, the TA will organize a Technical Working Team, transportation, logistics, material, supplies and equipment as required, along with realistic budget estimates for approval and funding. b. Historical data: The TA with supporting documents and other relevant information from the ESG, USAID, and the relevant GOL ministries and agencies (MLME, RREA, LEC, etc.), shall review current and previous Liberia Power Africa programs and projects as well as other related energy sector program initiatives (e.g. MCC, AGI and others) to assist with the overall program pipeline development process. c. A review of Energy Sector related Plans and Policies: This includes, but is not limited to; the National Energy Policy, the RREA Act, the LEC Act, the Investment Incentive Code, proposed Liberia Energy/Electricity Laws and ongoing legislative and regulatory reforms. Also review the structure of Energy Institutions – both public and private and propose activities directed at mitigating existing barriers to drive the needed reform process to its logical closure. 1.2 The Transaction Advisor shall undertake a technical review to identify potential projects such as the Mein River hydroelectric project and others for short term development in collaboration with Millennium Challenge Corporation (MCC), World Bank, MLME, LEC and RREA as partners. The TA shall coordinate with the Tony Blair Africa Governance Initiative (AGI) to advance long-term GOL energy initiatives and reforms while helping with immediate Ebola response issues. 1.3 The Transaction Advisor shall Work with RREA to identify current constraints and design quick interventions to facilitate RREA’s objectives and boost its performance as a Rural Electrification Agency. 1.4 The Transaction Advisor shall also work with the MLME and the RREA on the elaboration of recommendations for policy, incentives and measures at the National level for the power sector. 1.5 The Transaction Advisor shall work closely with other USG agencies and entities, such as; the USAfrican Clean Energy Development and Finance Center (CEDFC) established by the Overseas Private Investment Corporation (OPIC), Export-Import (EX-Im) Bank of the US, the MCC, the State Department and the US Trade and Development Agency (USTDA). The TA shall seek to understand the available USG mechanisms and funding constraints. For this activity, the TA shall pursue opportunities provided by the USG agencies and entities such as the CEDFC which provides a coordinated approach to clean energy projects development. The TA’s responsibility includes, but is not limited to; technical and financial support for clean energy projects development such as solar, wind, biomass, hydropower, natural gas (including biogas), energy efficiency, smart grid and mini-grid development - all of which have high potentials for replacing petroleum-based power generation in Liberia. The TA shall also seek to avail Liberia of the CEDFC Initiative which aims to align USTDA’s project planning expertise and OPIC’s financing and risk mitigation tools in new ways, to support private sector investment and increase support for Liberia’s clean energy sector. The TA shall also seek to forge Liberia’s engagement with the Millennium Challenge Corporation to assist the country in progressing towards the UN Millennium Development Goals (MDGs) through transforming Liberia's power sector. 1.6 The TA shall assist Power Africa to analyze potential transactions to select those that may be assisted in achieving financial closure, and present recommendations to USAID for prioritization. This includes, but is not limited to; organizing and developing bid rounds for priority projects, negotiations and other selection methods and evaluations of potential transactions in accordance with USAID/ESG and GOL approved standards and guidelines. 1.7 The TA shall review and prepare an analysis of promising private sector driven, high-impact energy projects and carry out preliminary due diligence; application of project factors such as cost-benefit and other acceptable economic and engineering project evaluation techniques, environmental impact assessments and evaluation of technical and financial capacities of proposed project sponsors. Where necessary, conduct promotional activities, undertake negotiations and identify funding sources and the potential for USG assistance. 1.8 The TA shall maintain close relationships with private sector and government actors, project developers, regulatory bodies, commercial banks, investment and pension funds and other donors. 2|Page This includes, but is not limited to; organizing discussions and promotion forums for private sector and government actors, project developers, regulatory bodies, commercial banks, pension funds and donor institutions; creation of a website and data base to organize and maintain information and communication links. 1.9 The TA shall serve as the lead for development of; GDAs, APs, DCAs, IPP study follow-ups or Project Prospectus’ and Investment Guide(s) to help achieve the goals of Power Africa in Liberia. This shall include, but is not limited to; preparation of promotional packages/guides or prospectus’ for policies, laws and regulations, best practices, pre-feasibility and other studies). The TA shall consult with ESG, the USAID Power Africa Team and relevant GOL agencies and financial/legal experts in the development of GDAs, APs, DCAs and IPP study follow-ups and recommend the most feasible model and capacity development for the application of the range of U.S. government tools. 2.0 Transaction Advisory Services and Capacity Building The TA shall seek support for Liberian manpower capacity and skills building and institutional development of the Power Africa Advisory Office. Long-term financing and coordinated support is essential in helping Liberia and Power Africa partners expand electricity generation capacity and access. 2.1 The TA shall assist USAID, MLME and RREA in accelerating and closing priority transactions by providing independent advice as needed to achieve project milestones. 2.2 The TA shall provide ongoing technical assistance on prioritizing projects and preparing transaction documents. 2.3 The TA shall lead promotion of USAID’s Beyond the Grid efforts with investors and implement outreach campaigns, participate in trade shows and workshops to promote the Power Africa Initiative (PAI) in Liberia. 2.4 The TA shall provide guidance, expertise and direction to the MLME and other Ministries as needed on adoption of reforms necessary to increase private sector investment. The TA shall, with reference to Power Sector regulations/policies, in consultation with and in support of, USAID, ESG and GOL agencies (MLME, RREA, NIC, LEC, etc.), organize a Power Africa Technical Committee/Team or Inter-agency technical persons’ forum, for discussions and validation of appropriate reforms documents for GOL decision makers’ approval. 2.5 The TA shall promote issues concerning the environment, social soundness, clean energy, climate change, gender and energy, poverty and energy, and the like. The TA in this regard, shall maintain appropriate contacts with the relevant GOL ministries and agencies, Power Africa Liberia, ESG, USAID and experts to address these issues and propose activities/programs and practical actions for implementation. 2.6 The TA shall liaise with other Power Africa implementing partners, in particular those involved in providing advisory services. This shall include contacts and consultations with other Power Africa member countries’ TAs for technical and other helpful exchanges of mutual benefits. 3|Page 3.0 Timing The proposed starting date is 1 September 2015 for an initial period of 21 months (until May 2017), possibly extended on an annual basis thereafter. The following table provides a proposed timing of activities listed in sections 1.0 and 2.0. 1.1a 1.1b 1.1c 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.1 2.2 2.3 2.4 2.5 2.6 Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Develop PA Advisory Services Office Historical Data Plans and Policy Project review, AGI, Ebola RREA performance MLME National policy USG agency & CEDFC Project Prioritisation Analysis of high-impact projects Website, relationships, forums, data base Development of GDAs, APs, DCAs, etc. Transaction Advisory Services, Capacity building, closing transactions Technical assistance on project prioritisation and preparation of transaction documents Promotion of PA and Beyond The Grid, outreach campaigns, workshop participation Technical Committee Social Issues Liaison with PA partners, information exchange 19 20 21 4|Page