Tender and Application Documents – Goods and Services Location: AFGHANISTAN Name of Tender: MARKET STUDY – RENEWABLE ENERGY Acct. Code: 8420 Sub Code: 075 Tender No.: 3040 Date: 4/14/2014 Cost Center: 90949 Contents - Tender and Application Package Part I, Tender 1. Summary of Tender 2. Terms, General Information, and Instructions to Applicants 3. Project-Specific Documents and Details 3.1a Materials and Equipment Specifications, Specific Conditions, and Delivery Schedule 3.1b Services Statement of Work 3.2 General Terms of Payment, Cost and Supply of Materials, Equipment, Accessories, and/or Services 3.3 Specific Payment Terms and Penalties 3.4 Warranties, Guarantees, Insurance, and Taxes 3.5 Termination of Contract Part II, Application 4. Applicant Submission Forms and Declarations 4.1 Notes to Applicants Concerning Submission Forms and Formats 4.2 Applicant Qualifications Summary 4.3 Declaration of Eligibility 4.4 Application Form and Quotation Page 1 of 17 Tender and Application Documents – Goods and Services Part I, Tender 1. Summary of Tender and General Information 1.1 Name of Tender Market Study – Renewable Energy 1.2 Location/Field Office Mercy Corps Afghanistan, Kabul Office 1.3 Subject/Description Mercy Corps is soliciting bids for: A Market Report to examine the market potential across Afghanistan for electricity sourced from renewable energy sources 1.4 Submission of Application The email address for submission of applications is: tenderaf3040-2014@af.mercycorps.org 1.5 Summary Text of Announcement (for posting on Mercy Corps Website) Market Study for Renewable Energy in Afghanistan 1.6 Funding Source DFID 1.7 Language The language for this Tender, application instructions, and associated responses, is: English 1.8 Questions Specific questions about this tender may be submitted to Mercy Corps at: Tenderaf.questions@af.mercycorps.org Questions submitted to Mercy Corps, and their answers, will be posted on the Mercy Corps Website (www.mercycorps.org/tenders). 1.9 Application Deadlines Applications must be submitted on or before: 5/5/2014 at (time): 17:00hrs Applications received after this time will not be considered. Please note: Application date extended to May 5, 2014. Page 2 of 17 Tender and Application Documents – Goods and Services 1.10 Application Review Applications will be opened and inspected by Mercy Corps. at: Mercy Corps Afghanistan, Kabul Office on: May 6, 2014, 10.00am 1.11 Decision and Selection Mercy Corps will select and notify the winning applicant within seven (7) days of the close of the application period. Notification will be made by email and/or by post. Mercy Corps will also notify those vendors who submitted applications but were not selected. Notification will be made by email and/or by post within seven (7) days of the close of the application period. Page 3 of 17 Tender and Application Documents – Goods and Services 2. Terms, General Information, and Instructions to Applicants 2.1 Scope Mercy Corps invites tenders for the equipment, materials, and/or services described and summarized in these documents, and in accordance with procedures, conditions, and contract terms presented herein. Mercy Corps reserves the right to vary the quantity of work/materials specified in these documents without any changes in unit price or other terms and conditions and to accept or reject any, all, or part of submitted offers. 2.2 Minimum Qualifying Criteria Minimum criteria for applicants to the Tender include, but are not limited to, all the following: Certificate of (business) Registration, Adequate equipment and workshops, Sufficient trained managers and workers, Good track-record and references from previous clients, Legal bank account (for payments made in bank checks or through bank transfers) Proof of all the above must be provided to Mercy Corps on request. 2.3 Additional Criteria All applications shall be made in accordance with these instructions, and all documents requested should be furnished, including technical specifications, drawings, bill of quantities, and/or delivery schedule, and payment terms. If any requested document is not furnished, a reason should be given for its omission, All Applicants will receive identical documents. No applicant should add, omit, or change any item, term or condition on original papers, If Applicants have any additional requests and conditions, these shall be stipulated in a separate letter accompanying their application, Each applicant may make one application only, Each application shall be valid for the period of sixty (60) days for its date of submission, Applications shall be made in writing, with prices in USD only, All prices must include all taxes, compulsory payments, levies and duties, including VAT, if applicable, Applicants shall attach a detailed schedule for supply and delivery of materials. 2.4 Performance Standards and Payment Controls All material, and/or equipment must be produced and supplied in accordance with all relevant and applicable rules, regulations, and statutes. Page 4 of 17 Tender and Application Documents – Goods and Services Payments will be made only if the contracted material and/or services meet these standards, and are delivered and completed properly and on time, as approved by Mercy Corps. Specific payment terms are described, below. 2.5 Currency Payments will be made in: USD 2.6 Tender and Application Documents All application-related forms and documents are included in Part II of this document. (see Pages 12-16). 2.7 Eligibility of Applicants Applicants may not apply, and will be rejected as ineligible, if they: Are not registered companies, Are bankrupt or in the process of going bankrupt, Were convicted of illegal/corrupt activities, and/or unprofessional conduct, Have been guilty of grave professional misconduct (proven by any means which the contracting authorities can justify), Have not fulfilled obligations related to payment of social security and taxes. Are guilty of serious misinterpretation in supplying information, Are in situations of conflict or potential conflict of interest with Mercy Corps, Were declared at serious fault of implementation owing to a breach of their contractual obligations, Are on any list of sanctioned parties issued by the United States Government. 2.8 Application Delivery All applications will be delivered in the specified format to Mercy Corps, as attachments to email, and to the address and by the date stated herein, All documents will be clearly marked with the name of the Tender to which it corresponds, The documents will be marked with the name of the applicant, and the correct return address, and will be signed where indicated, Applications delivered after the specified time will not be accepted. 2.9 Application Opening Applications will be opened only by Mercy Corps, at the address and on the date specified herein. The applicant’s name, the total amount of the application, and any discounts and such other information that Mercy Corps may consider appropriate will be announced and registered in the procedural minutes. 2.10 Application Evaluation Page 5 of 17 Tender and Application Documents – Goods and Services Mercy Corps will examine all applications to ensure that they contain no amendment to the terms or any other irregularities and/or errors. To assist in the examination and selection process, Mercy Corps may, at its discretion, assemble and establish a Review Committee, which may include representatives of other entities. 2.10.a Technical Evaluation: The applications will first be evaluated on technical merits. The technical evaluation assesses the capacity of the application, based on its submitted technical documents, specifications, performance history, and references submitted. For this purpose, certificates and additional references may be requested and subsequently examined. 2.10.b Financial/Cost Evaluation: The financial/cost evaluation is based on the cost of products and services presented in the application. The evaluation is intended to assess and confirm that vendors provide good value to Mercy Corps for the cost of all goods and/or services offered. 2.10.c Other Evaluations: After ranking applicants according to technical and financial criteria, Mercy Corps may take into account other variables, including, but not limited to record of past performance, integrity, and social responsibility. 2.11 Selection of Applicant Selection of the successful applicant will be based on the ranking of applicants responding to the Tender, according to technical and financial/cost criteria, as well as any other criteria established by Mercy Corps. 2.12 Acceptance of Successful Application After submitted documentation from the selected Applicant has been verified, the applicant will then be obliged to sign a Contract for the stated amount. Any amendment to the original Contract will be determined by Mercy Corps, and will be documented as an “Annex “or “Amendment” to the original Contract. 2.13 Certification Regarding Terrorism, Acts of Corruption, and Potential Bribery It is Mercy Corps’ policy to comply with the laws and regulations of the United States Government, the European Union, and the United Nations concerning the ineligibility of vendors, contractors, and suppliers of services for reasons of fraud, corruption or terrorist activity. These laws and regulations prohibit Mercy Corps from doing business with or providing support to any persons or entities that have been found to be engaged in, or provide support for, any such activities. It is also absolutely forbidden for any Applicant and/or Contractor of Mercy Corps to make payments of any kind, either monetary or material, to any employee of Mercy Page 6 of 17 Tender and Application Documents – Goods and Services Corps. This rule prohibits like payments to any relatives, partners, or associates of Mercy Corps employees. All applicants must agree to abide by this policy. 2.14 Environmental Standards Applicants should, at minimum, comply with all statutory and other legal requirements relating to the environmental impacts of their business. Areas which should be considered are, Waste Management (including packaging and paper use), Conservation, Energy Consumption, and overall environmental and social Sustainability. Page 7 of 17 Tender and Application Documents – Goods and Services 3. Project-Specific Documents and Details 3.1.a Materials and Equipment Specifications, Specific Conditions, and Delivery Schedule 3.1.a.1 Quantities See Section 3.1.b, below 3.1.a.2 Minimum Specifications See Section 3.1.b, below 3.1.a.3 Delivery Date See Section 3.1.b, below 3.1.a.4 Delivery Conditions (including Shipping, Import and Export Documentation, Inspection Fees, Import and Export Taxes, and Storage Fees) See Section 3.1.b, below 3.1.a.5 Delivery Location See Section 3.1.b, below 3.1.a.6 Other Provisions See Section 3.1.b, below Page 8 of 17 Tender and Application Documents – Goods and Services 3.1.b Services Statement of Work Terms of Reference for Market Study - Renewable Energy Background Mercy Corps believes that equitable access to clean, reliable and affordable energy is critical for economic growth and improved livelihood creation. Mercy Corps’ vision in Afghanistan is to enable Afghans to improve their quality of life by strengthening sustainable, legitimate livelihoods, and access to energy is central to this goal. Afghanistan has high renewable energy generation potential, but is limited by a highly underdeveloped renewable energy sector. Mercy Corps aims to build the capacity of this sector and to play a role in stimulating investment in market-based solutions, particularly for productive use. Objective of TOR The overall objective is to gain a thorough understanding of the market potential across Afghanistan for electricity sourced from renewable energy resources. This TOR should complement the findings in the Afghanistan Master Power Plan (AMPP), which mentions the potential of renewable energy in a cursory manner. This information will be used to assess expectations and make decisions about the level and scale of investment for this sub-sector of the power industry as per the broad focus on Afghanistan’s electricity industry in the (AMPP). The main focus of this assessment is to map, measure and assess existing and potential renewable energy market in Afghanistan. This research will support Mercy Corps’ goals by testing assumptions and anecdotal information about this sector, helping to build an evidence base upon which to further refine the RED-S concept. Key Assessment Areas Demand Characteristics: Price Elasticity of Demand for Renewables for IPPs i.e.: assessing what price renewables would have to be offered in order to compete with diesel electricity or cause those companies in order to compete with diesel electricity or cause those companies that rely on privately owned and operated diesel generators to convert to a new energy source (factoring in sunk costs of existing hardware); willingness to pay and ability to pay; disaggregated by province, provincial centre and three key district centres. There are varying claims about the cost of private generation from diesel generators and this is an important benchmark for analysing viability of renewable sources as an alternative. The study should include a rigorous analysis of actual private generator costs per kWh to determine a robust benchmark of costs faced due to reliance on private generation. Price Elasticity Demand for DABS consumers- those that purchase from DABS through the network; willingness to pay for higher priced electricity versus the ability to pay, disaggregated by province, provincial centre and three key district centres. Ability of existing network to accept renewable electricity (with intermittent supply) and policy implications. Identify barriers to adoption of renewable energy, taking into account social, political and existing infrastructure network. Estimate consumer demand in potential target areas, generating demand profiles by energy usage (kWH) as well as expected tariff tiers for each consumer type. Page 9 of 17 Tender and Application Documents – Goods and Services Supply Characteristics: Review of existing literature and research on renewable supply landscape, identifying gaps. Map quantity and quality of renewable energy resource availability and downscaled levels (Biomass, Solar and Wind sources). Review of current research and plans on the expansion of the T&D network Review of existing research on ‘shovel ready’ and large--‐scale generation projects (renewable and non-renewable i.e. fossil fuels or large-scale hydro). Timeline of large scale investments and analysis of impact on supply capacity of Afghanistan industry and impact on RE projects Market assessment for existing or potential stand-alone technologies, maintenance and spare parts markets, etc. Include analysis of investments from all sectors (government, private sector, development organizations) Include risk analysis given potential social, political, and climate hazards. Include an analysis of environmental benefits of biomass and other renewable technology types for 1MW size capacity versus non-renewable plants of equivalent capacity. Engineering, Procurement and Construction (EPC) – Contractors: Create list of existing and potential local companies that can provide engineering, procurement and construction services or the establishment of RE generation systems. Review technology offerings (renewable and non‐renewable), considering the following factors; experience and quality of service reliability, brand strength. Identify international technology solution providers. Compile list of their technology and service offerings, technical and managerial capacity, and ability/history of working in Afghanistan or South Asia. Technical review of draft development schedule for Helmand biomass project and production of an industry standard EPC process. Capacity assessment of key actors identified. Independent Power Providers in Industry Identify and assess capacity of existing IPPs and Energy Service Companies (ESCOs) with demonstrated experience in managing electricity generation and distribution (renewable or non-renewable) Identify and research potential IPPs who have experience transferable to running a power system. Compile a list of potential IPP partners, by location and level of expertise. Stakeholder Coverage: Ministry of Energy and Water (MEW) Da Afghanistan Breshna Sherkat (DABS), Target end-use customers; e.g. commercial business customers who serve rural communities. Actual and potential Afghan companies that could become IPPs, Actual and potential Afghan companies that could become EPC contractors, Institutional donors in Renewable Energy e.g. World Bank, ADB, IFC, UNDP Page 10 of 17 Tender and Application Documents – Goods and Services Deliverables: A Market Report, which details the potential scope and size of the renewable energy industry in Helmand Province and the wider Afghanistan context. This report will quantify the range of technology agnostic project opportunities and provide an estimated market value for the generation industry. The report will inform Mercy Corps as to size of the industry that the RED‐S unit would serve and the capital requirements for supporting the industry to maturity and the timeframes involved. The report will be based on evidence from quantitative and qualitative research and desk studies. There will be a master report for internal use and a modified report for external circulation. Presentations: If decided as needed, briefings to targeted audiences on industry level or general presentation – number of briefings and audience to be determined. Other conditions: The report should be completed within two months of contracting the tender. Quoted prices should show any VAT separately. The winning applicant is responsible for providing insurance for any of their staff working on this assignment in Afghanistan Report finalization will include two rounds of feedback and (where necessary)edits. Mercy Corps retains the right to edit the final version of the report. Page 11 of 17 Tender and Application Documents – Goods and Services 3.2 General Terms of Payment, Cost and Supply of Materials, Equipment, Accessories, and/or Services The Applicant agrees to submit a final and total fixed price for all materials, equipment and/or services required, and to purchase/produce/provide the total quantity of materials, equipment, and/or services required, after the signing of the purchase Contract, regardless of the evolution of market prices in the weeks and months following the signing of the purchase Contract. After signing of the Contract, Mercy Corps will not be responsible in any way for any increased costs to purchase/produce and/or supply materials, equipment, and/or services corresponding to this Tender. The Applicant agrees to store the total amount of materials and/or equipment, and cover all costs associated with storage, in order to deliver the quantities required by Mercy Corps as demanded, and in agreement with the delivery schedule detailed herein. If it appears that the quality and technical specifications do not conform to the Contract, part of or all materials, equipment, and/or services may be rejected. The Applicant will be fully responsible to replace, at its own expense, and in the most timely manner, the requisite substitute materials, equipment, and/or services in question, and in equivalent quantities, technical characteristics, and qualities. Mercy Corps has no obligation, under any circumstances, to accept materials, equipment, and/or services that do not meet the minimum quality standards as required by Mercy Corps and the Donor. Mercy Corps reserves the right to engage an independent agency for external control, and/or to perform additional quality assessments and controls. This may occur during production, upon delivery, and/or within a specified period after delivery, as specified in the Contract. 3.3 Specific Payment Terms, Invoicing Requirements, and Potential Penalties Upon submission of implementation plan: 10% Key milestone 1 (to be negotiated): 20% Key milestone 2 (to be negotiated): 20% Submission of final report and all documents: 50% 3.4 Warranties, Guarantees, Insurance, and Taxes The winning bidder is responsible for covering any insurance for their employees undertaking this assignment. Fee rates should be quoted with any VAT shown separately. Page 12 of 17 Tender and Application Documents – Goods and Services 3.5 Termination of Contract Mercy Corps reserves the right to alter or terminate the Contract for goods and/or services at any time if any one of the following conditions applies: 3.5.1 The Supplier defaults in its obligation to fulfill the conditions set forth in this Contract, 3.5.2 Due to circumstances outside of the contractual parties’ control, such as force majeure, war activity in project area, or unforeseen governmental interference, 3.5.3 If, for any reason, it is determined by Mercy Corps or a duly authorized representative of Mercy Corps that the material does not match specifications, or the quality standards specified in the Contract and the Tender and Application Documents, In the case of termination under clauses 3.5.1 or 3.5.3, above, the Supplier shall be liable for all costs associated with the default, and to repay any advance paid, and to cover any costs incurred by Mercy Corps as a result of the termination of the Contract. In case of termination under Clause 3.5.3, above, Mercy Corps will not be responsible for any material or transportation costs involved. In the case of termination under Clause 3.5.2, above, payment will be made only for the delivered goods, vehicles, equipment, and/or accessories. Additional Contract termination clauses: None Page 13 of 17 Tender and Application Documents – Goods and Services Part II, Application 4. Applicant Submission Forms and Declarations 4.1 Notes to Applicants Concerning Submission Forms and Formats 4.1.a Please answer all questions, 4.1.b All forms should be completed, 4.1.c Supplementary pages may be photocopied and inserted if required, 4.1.d Please retain a copy of your complete submission, 4.1.e If a joint venture is proposed, all companies are to respond to all questions, 4.1.f All costs are to be presented in USD, 4.1.g Documents delivered late will not be considered. Page 14 of 17 Tender and Application Documents – Goods and Services 4.2 Applicant Qualifications Summary 1. Name of Tender 2. Name of Applicant 3. Address 4. City – Town, Country 5. Telephone No. and Email 6. Fax No. 7. Legal Status Type here to enter Name of Tender. Type here to enter Applicant Name. Type here to enter Address. 8. 9. 10. 11. Type here to enter City, Town, Country. Type here to enter Telephone No. and Email Address Type here to enter Fax No. Type here to enter Legal Status. Ownership (state, public, private) Number, Year and Place of Registration (enclose copy) Executive Management / Board Members Type here to enter Ownership Information. Basic Business Activities 1. Type here to enter Activity 1. Type here to enter Registration Information. Type here to enter Management and Board Members. 2. Type here to enter Activity 2. 3. Type here to enter Activity 3. 12. Banking Information Bank Name: Type here to enter Bank Name. Bank Address: Type here to enter Bank Address. Account and Routing Nos.: Type here to enter Acct. and Rounting Nos. Agreed to be paid by wire transfer: (Yes ☐ or No ☐) Type here to enter No. of Employees. 13. Total Number of Employees 14. Client References (Client, contact, address, email, phone number) 1. Type here to enter Reference 1. 2. Type here to enter Reference 2. 3. Type here to enter Reference 3. Page 15 of 17 Tender and Application Documents – Goods and Services 4.3 Declaration of Eligibility Name of Tender: Type here to enter Name of Tender. Applicant: Type here to enter Applicant Name. I, the undersigned (Name and address of representative): Type here to enter Company Representative Name. Representing (Name and address of company): Type here to enter Company Name. Declare that the following conditions are applicable to us; We are a registered company or companies, We are not bankrupt or in the process of going bankrupt, We have not been convicted for an offense concerning professional conduct, We have not been guilty of grave professional misconduct (proven by any means which the contracting authorities can justify), We have fulfilled obligations related to payment of social security and taxes, We are not guilty of serious misinterpretation in supplying information, We are not in situation of conflict or potential conflict of interest with Mercy Corps, We were not declared as serious fault of implementation owing to a breach of their contractual obligations, We do not employ personnel below the legal working age, We provide basic social rights and fair working conditions to our employees, We are not on any list of sanctioned parties issued by the United States Government, United Nations and European Union. Declared by: Name: Type here to enter Name Position: Type here to enter Position Date: Click here to enter Date Page 16 of 17 Tender and Application Documents – Goods and Services 4.4 Application Form and Quotation Name of Tender: Type here to enter Name of Tender. Applicant: Type here to enter Applicant Name. Dear Mercy Corps, Having examined the required application documents for the above-mentioned Tender, we offer to supply material, equipment, and/or services as described, for the amount, in USD of: $Type here to enter Amount in USD, in Numbers Type here to enter Amount in USD, in Words (in words) US Dollars. To offer our above-mentioned price, we acknowledge that we have taken into consideration all the documents and instructions provided by Mercy Corps. The following payment terms apply to this offer: Type here to enter Payment Terms. We undertake, if our application is accepted, to deliver the material, equipment, and/or services described in the Tender and Application Documents within Type here to enter No. of Days days from the date of signing the Agreement. We understand and accept that Mercy Corps is not bound to choose the lowest price on any application that may be received, and that any or all responses may be rejected without assigning any reason for such rejection. Submitted by: Name: Type here to enter Name Position: Type here to enter Position Date: Click here to enter Date Page 17 of 17