TERMS OF REFERENCE FOR CONSULTANTS

Transcription

1 South Asia Subregional Economic Cooperation Regional Energy Cooperation (KSTA REG 52070) A. Background TERMS OF REFERENCE FOR CONSULTANTS 1. The regional knowledge and support technical assistance (TA) will help prepare development master plans and enhance capacity development for the energy sector s regional cooperation and integration (RCI) of the South Asia Subregional Economic Cooperation (SASEC), including Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka. 2. The TA aims to promote the SASEC Operational Plan , which was endorsed by the SASEC member countries in In 2017, the SASEC strategies were further sharpened as the SASEC Vision in the SASEC Finance Ministers Meeting in Delhi, 2 and the flagship initiatives in the SASEC Vision were agreed in the subsequent nodal officials meeting in Yokohama. The initiatives highlighted the SASEC-wide energy security and connectivity to enhance cross-border power trade and improve regional gas supply value chains. 3 To promote these activities, the TA was further supported by SASEC members when the Asian Development Bank (ADB) presented the TA concept in the SASEC nodal official meeting in March B. Objective 3. The TA aims to focus on more specific investment projects identified in the SASEC Operational Plan , take problem-solving approaches on common issues related to the past and ongoing projects and proposals, and apply lessons learned from them to the future investment projects. The TA will focus on the two mainstreaming energy business areas, namely power and gas subsectors, and their capacity development activities. 4. Output 1: Development master plans for cross-border power trade prepared. Using the international best practices and case studies on the SASEC Operational Plan s project priorities and pipelines, the TA aims to develop a master plan including regional development strategies, roadmaps, and project inventories based on multi-criteria analysis through assessments of project pre-feasibility studies, investment cost estimates, development options, technical requirements, regulatory frameworks, commercial and institutional arrangements, climate change impacts, and any other focus areas. 4 In 2017, SASEC established a working group (i.e., the Cross-border Power Trade Working Group), mainly comprising each government s power/energy ministry, planning agency, and/or transmission and generation utilities. This will promote effective power trading arrangements and project assessments. 5 The cross-border regulatory frameworks will also be coordinated with the SAARC Council of Experts of Energy Regulators (Electricity), which was established in line with the 2014 SAARC Framework Agreement for Energy Cooperation (Electricity). 6 1 ADB South Asia Subregional Economic Cooperation Operational Plan Manila. 2 ADB SASEC: Powering Asia in the 21st Century. Manila. 3 In the energy sector, there were three focuses on (i) cross-border power trade, (ii) gas storage terminals, and (iii) gas pipeline connectivity. 4 In case any feasibility studies were already done, further assessments can be considered to clarify any other due diligence aspects and strengthen the results when appropriate. 5 In 2017, the SASEC first meeting for the cross-border power trade finalized further study and capacity enhanced areas, including economic and financial feasibility and institutional studies for some potential cross-border transmission projects; offtake, transmission services, and commercial options of hydropower projects; possible expansion of transmission connectivity to Myanmar; and knowledge and experience sharing on energy efficiency and renewable energy integration, power exchange market, and smart grid elements. 6 ADB supported the council s meetings in 2016 and 2017, and the council identified a gap analysis in relevant laws and regulations and strategic roadmap assessments.

2 2 5. Output 2: Development master plans for regional gas cooperation prepared. Like the cross-border power trade, the TA intends to develop a master plan for the gas business, including regional development strategies and roadmaps, and project inventories based on multi-criteria analysis through assessments of project pre-feasibility studies, investment cost estimates, development options, technical requirements, regulatory frameworks, commercial and institutional arrangements, climate change impacts, and any other focus areas. In 2017, ADB discussed the concept of LNG and LPG transshipment among relevant countries based on the SASEC Vision s initiatives. This will further be extended to more strategic approaches for the SASEC subregion. Through the market assessments of potential regional hubs across the SASEC subregion, their feasibility assessments and strategic investment plans will be prepared in coordination with a specific working group to be organized. To create more enabling investment environment, the TA will also aim at harmonizing regulatory rules and standards and safety management among the countries. 6. Output 3: Knowledge on advanced energy technologies increased. To make the above outputs and their activities practical, the TA will include relevant knowledge sharing and capacity enhancement in reference to advanced technological applications and other regions RCI programs and activities. Advanced technologies can include efficient operations of LNG/LPG terminals and storage facilities, and renewable energy and its battery substation facilities. 7 To take lessons learned from other regional programs, the TA will update progresses and issues of the Greater Mekong Subregion, the Central Asia Regional Economic Cooperation, and/or any other RCI programs (e.g., Europe, Africa, and America). C. Scope of work 7. The TA will be implemented over 3 years. There will be 14 consultants, including 45 international person-months on a noncommittal basis. The consultants will coordinate the TA implementation with ADB and the working groups from the SASEC member countries in the discussion, consultation, information-sharing and decision-making processes. 8 Each consultant s outline terms of reference will include, but not necessarily be limited to, the following tasks: 1. Power Sector Development Specialist and Workshop Facilitator (Power Sector Team Leader) (International, 4.0 person-months) Minimum qualification: Bachelor s degree, Master s degree preferable; and minimum of 20 years Act as the team leader and responsible for overall guidance to the team for the power sector, and consolidate all the deliverables for the workshop. Assist ADB in moderating sessions during the SASEC/SAARC workshop and act as a resource person. Help resolve roadblocks and suggesting steps to promote cross-border trading and related regional projects. Facilitate dialogue to identify future cross-border power projects. Oversee and coordinate the studies to identify potential opportunities for cross-border power trade in the SASEC/SAARC member countries. 7 Emerging technologies and their impacts will be assessed in preparing the master plans. 8 The SAARC Council of Experts of Energy Regulators (Electricity) will also be coordinated and supported in regulatory terms when appropriate.

3 3 Review the roles and responsibilities of the SASEC cross-border power trade workshops and suggest their improvements. Prepare a development master plan for cross-border power trade including regional development strategies, roadmaps, and project inventories based on multi-criteria analysis through assessments of project pre-feasibility studies, investment cost estimates, development options, technical requirements, regulatory frameworks, commercial and institutional arrangements, climate change impacts, and any other focus areas, based on the SASEC Operational Plan s project priorities and pipelines. working group members, and undertake the necessary studies to resolve potential roadblocks and brief them on the necessary studies being carried out on flagship projects. Consolidate, document, and disseminate the major findings for knowledge management in collaboration with other specialists at the end of the assignment. Participate in ADB missions and travel to member nations as required. 2. Cross-border Power Trading Specialist (International, 4.0 person-months) Review the power sector landscape of the SASEC/SAARC member countries and assess the potential of cross-border power trade among the member countries. Assess the existing status of flagship cross-border power transmission projects. Assess operational, economic and environment benefits on account of cross-border power trade among the SASEC member countries. Undertake a literature review of international best practice in the areas of development of regional/cross-border power trading projects and through experience sharing of other regions (e.g., Europe s Nord Pool). 3. Power Sector Policy and Regulatory Specialist (International, 4.0 person-months) Review and assess the existing policy and regulatory framework for cross-border power trading for SASEC/SAARC member countries. Propose evolution of policy and regulatory framework in SASEC/SAARC member countries for promotion of renewable energy. Assist the cross-border power trading specialist in review of policy, regulatory and institutional framework of power sector in SASEC/SAARC member countries.

4 4 Study gaps prevailing in relevant laws, regulations, and transmission service agreements to enable transmission utilities to build, own, operate and maintain transmission systems of cross-border interconnection. Assess comprehensive implementation strategies for regional power market in terms of regulatory regime on as basis of the prevailing regional frameworks. Review recent updates on the cross-border power trade guidelines/regulations, and analyze its impacts on cross-border power trade in the region. Experience sharing on the regulatory and commercial aspects of the offtake structure of select translational projects. Review enabling environment for private investment in the identified regional projects. 4. Power Sector Financial Specialist (International, 4.0 person-months) Update the project costs for the regional projects based on secondary data and interactions with the SASEC/SAARC member countries for the projects. Carry out preliminary financial analysis of any identified flagship projects following the ADB financial due diligence requirements. Conduct preliminary economic analysis, by evaluating the benefits and the synergies accruing to both the countries as a result of development of the projects. Assess the development models for the projects and promote initial discussions on the pros and cons of each development model with strategic emphasis on risk mitigation. 5. Hydropower Specialist (International, 2.0 person-months) Identifying the key techno-commercial barriers for developing regional hydropower projects. Assess the role of hydropower projects in view of the increasing renewable energy penetration in SASEC/SAARC member countries. Assess the commercial and tariff structure of the proposed regional projects to ensure viability of the projects and ensure energy security of the region. Develop roadmap for accelerating responsible hydropower development in the member countries.

5 5 Undertake a literature review of international best practices in regional hydropower development (e.g., Europe s Nord Pool). 6. Power Transmission Specialist (International, 2.0 person-months) Review mechanisms for developing transmission charges, and their allocation to power importers and assess cost sharing methods of transmission infrastructure among importers, exporter, and/or any other countries based on international best practices. Review emerging technologies and cost estimates in the development of cross-country undersea transmission cables, high voltage direct current and flexible alternating current transmission systems, and any battery systems that help stabilize the entire systems, based on international best practices. Review global best practices in cost sharing of transmission infrastructure used for crossborder power trading. Review and assess (i) cross-border transmission and system related technical issues (e.g., thermal limits, stability limits, voltage regulation, loop and parallel path flow, available transmission capacity), and (ii) their technological impacts, in a development master plan for cross-border power trade including regional development strategies, roadmaps, and project inventories. Review and analyze the prevailing framework, regulations and procedures relating to open access to transmission systems in SASEC/SAARC member countries for increasing cross-border power trade. 7. Senior Advisor (Hydropower) (International, 3.0 person-months) Minimum qualification: Bachelor s degree, Master s degree preferable; and minimum of 20 years Take a lead in strategy-making, coordination and communication among with working group members. Review and assess cross-border power trade s strategies and steps to be taken, particularly for regional hydropower development. Promote strategic communications among SASEC/SAARC member countries governments, relevant utilities, and working group members to resolve potential roadblocks and facilitate development of flagship regional projects.

6 6 Lead communications and data collection efforts with SASEC/SAARC member countries ministries ministries and relevant utilities on behalf of ADB and the consultant team. Advise ADB and the consultant team on any updates to regional policies, programs, regional projects based on member countries plans. Provide guidance to the consultant team on delivering presentations in the workshop. Assist ADB and other consultants in moderating workshop sessions and act as a resource person for the workshops. Travel to SASEC member countries and participate in ADB missions as and when required. 8. Senior Advisor (Power Transmission) (International, 3.0 person-months) Minimum qualification: Bachelor s degree, Master s degree preferable; and minimum of 20 years Take a lead in strategy-making, coordination and communication among with working group members. Review and assess cross-border power trade s strategies and steps to be taken, particularly for regional transmission development. Promote strategic communications among SASEC/SAARC member countries governments, relevant utilities, and working group members to resolve potential roadblocks and facilitate development of flagship regional projects. Lead communications and data collection efforts with SASEC/SAARC member countries ministries ministries and relevant utilities on behalf of ADB and the consultant team. Advise ADB and the consultant team on any updates to regional policies, programs, regional projects based on member countries plans. Provide guidance to the consultant team on delivering presentations in the workshop. Assist ADB and other consultants in moderating workshop sessions and act as a resource person for the workshops. Travel to SASEC member countries and participate in ADB missions as and when required. 9. Gas Sector Development Specialist and Workshop Facilitator (Gas Sector Team Leader) (International, 4.0 person-months) Minimum qualification: Bachelor s degree, Master s degree preferable; and minimum of 20 years Act as the team leader and responsible for overall guidance to the team for the gas sector, and consolidate all the deliverables for the workshop. Assist ADB in moderating sessions during the SASEC workshop and act as a resource person. Help resolve roadblocks and suggesting steps to promote regional gas value chain improvements and related regional projects.

7 7 Identify the appropriate schemes to improve LNG and LPG value chains, which should match their volume, flexibility, efficiency, and timing, considering the domestic demand and supply, commercial trends, global technologies. Assess and prioritize options of gas delivery systems with transportation and other infrastructure development. Facilitate dialogue to identify future regional gas projects. Oversee and coordinate the studies to identify potential opportunities for gas value chain improvements opportunities in the SASEC member countries. Review the roles and responsibilities of the SASEC regional gas value chain improvement workshops and suggest their improvements. Prepare a development master plan for regional gas cooperation including regional development strategies, roadmaps, and project inventories based on multi-criteria analysis through assessments of project pre-feasibility studies, investment cost estimates, development options, technical requirements, regulatory frameworks, commercial and institutional arrangements, climate change impacts, and any other focus areas, based on the SASEC Operational Plan s project priorities and pipelines. Take responsibilities for the TA outputs for the gas sector in collaboration with other relevant specialists. Coordinate with SASEC member countries governments, relevant gas and oil companies and working group members, and undertake the necessary studies to resolve potential roadblocks and brief them on the necessary studies being carried out on flagship projects. Consolidate, document, and disseminate the major findings for knowledge management in collaboration with other specialists at the end of the assignment. Participate in ADB missions and travel to member nations as required. 10. Gas Market Specialist (International, 4.0 person-months) Review the gas sector landscape of the SASEC member countries and assess the potential of gas industry development among the member countries. Identify and assess the existing status of flagship regional gas value chain improvement projects. Analyze LNG and PLG demand and supply scenarios in SASEC member countries by taking into account their imports, cost and pricing, policies, and global trends. Assess operational, economic and environment benefits on account of regional gas value chain improvement among the SASEC member countries. Undertake a literature review of international best practice in the areas of development of regional gas cooperation projects and through experience sharing of other regions. Coordinate with SASEC member countries governments, relevant gas and oil companies, and

8 8 11. Gas Sector Policy and Regulatory Specialist (International, 4.0 person-months) Review and assess the existing policy and regulatory framework for regional gas value chain improvement for SASEC member countries. Propose evolution of policy and regulatory framework in SASEC member countries for regional gas value chain improvement. Assist the gas market specialist in review of policy, regulatory and institutional framework of gas sector in SASEC member countries. Study gaps prevailing in relevant laws, regulations, and supply and transportation agreements to enable gas/oil companies to build, own, operate and improve regional gas value chain infrastructure facilities. Assess comprehensive implementation strategies for regional gas value chain improvements in terms of regulatory regime on as basis of the prevailing regional frameworks. Experience sharing on the regulatory and commercial aspects of the offtake structure of select translational projects. Review enabling environment for private investment in the identified regional projects. Coordinate with SASEC member countries governments, relevant gas and oil companies, and 12. Gas Sector Financial and Commercial Specialist (International, 4.0 person-months) Update the project costs for the regional projects based on secondary data and interactions with the SASEC member countries for the projects. Carry out preliminary financial analysis of any identified flagship projects following the ADB financial due diligence requirements. Conduct preliminary economic analysis, by evaluating the benefits and the synergies accruing to both the countries as a result of development of the projects. Assess the development models for the projects and promote initial discussions on the pros and cons of each development model with strategic emphasis on risk mitigation. Advise appropriate contracting terms and commercial strategies to improve the gas value chain pricing and agreements. Coordinate with SASEC member countries governments, relevant gas and oil companies, and

9 9 13. Climate Change Specialist (International, 2.0 person-months) Assess climate change mitigation impacts and risks in regional and cross-border energy projects, and summarize the regional climate impacts in the development master plans for cross-border power trade and regional gas cooperation. Assess climate change performance indicators with targets and baselines. Propose any regional strategies for climate change actions to incentivize regional and cross-border cooperation. Coordinate with SASEC member countries governments, relevant utilities/companies, and 14. Site Visit Coordinator (International, 1.0 person-months) Minimum qualification: Bachelor s degree, Master s degree preferable; and minimum of 5 years Identify any appropriate site visit plan in consultation with the power and gas consultant teams and ADB. Prepare and plan any logistics and arrangements for the site visit. Participate in the site visit and coordinate necessary arrangements with the site visit participants from SASEC member countries governments, relevant utilities/companies, working group members.