SPECIFIC TERMS OF REFERENCE. Conceptual and detailed design study for a floating off shore transfer terminal for bulk sugar in Belize

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1 SPECIFIC TERMS OF REFERENCE Conceptual and detailed design study for a floating off shore transfer terminal for bulk sugar in Belize FWC BENEFICIARIES LOT 2: Transport and Infrastructure EuropeAid/127054/C/SER/multi 1. BACKGROUND The sugar industry is a vital component of the Belizean economy accounting for a significant portion of Belize s foreign exchange earnings. Unfortunately the sugar industry is disadvantaged by inefficiencies in the current outbound transportation logistical practices causing some degree of competitive weaknesses on the global market. The factory to ship supply chain imposes a 122 mile long voyage (north via the New River and then south along the coast to the Belize City harbour) in order for the sugar to be loaded onboard ocean-going vessels (OGV) for transportation to market. The existing mode of factory to ship transportation (tug and barge) is slow and severely constrains delivery rates shipside; offering parcel size distributions 1 of about 125 tons per barge (500 tons per string of four barges). This is due in part to the draft limitations along the current route coupled with the design parameters of the current fleet of tugs and barges. Adding further inefficiencies to the supply chain is the legacy system of stevedoring used to load the OGVs: average loading rates are a mere 800 tons per day. The result of the aforementioned inefficiencies has been unduly high handling and freight costs which adversely impacts on the profitability and competitiveness of the industry. In an effort to streamline and improve the factory to ship supply chain modalities the European Commission in November 2009, under the Accompanying Measures for Sugar for Belize, commissioned a "Study of cost effective option of transporting processed sugar and molasses from factory to Ship" (FtS) with the following objectives: a) Determine the most cost effective option for transporting the processed sugar and molasses from the BSI factory to the ship; and b) Recommend alternative viable options for the transportation of sugar and molasses to Belize s primary markets. The study identified two desirable investments: Medium term: Floating offshore transfer terminal (FOTT) Long term: Deep water port with dedicated bulk sugar store and handling equipment In relation to the medium term option, the FtS recommended that a second-hand bulker (handysize) 2 be procured and used as a FOTT in order to reduce ocean transportation costs, while still utilizing the existing tug and barge system. After due consideration, the decision has been made to pursue the medium term option in order to improve the competiveness of the Belize sugar industry. In that regard a feasibility study the Conceptual and detailed design study for a floating off shore transfer terminal for bulk sugar in Belize (CDDS) has been commissioned to be commenced by July The quantity of cargo actually carried per barge as opposed to what each can carry. 2 35,000dwt 1

2 2. DESCRIPTION OF THE ASSIGNMENT Global objective To reduce the factory to market transportation costs of sugar in order to improve the competiveness of the sugar industry in Belize. Specific objective(s) The specific objectives of the assignment are: 1. To conceptualise, assess and present the various options for a second-hand bulker to be used as a FOTT for bulk sugar. 2. To conceptualise, assess and present the various options for improved factory to FOTT transportation logistics. 3. To identify the least cost FOTT to market transportation arrangements. 4. To provide technical advice as well as the necessary documentation to procure the ship and the necessary services required to convert it into a FOTT. 5. To develop strategies to ensure the safe, efficient, sustainable and environmentally responsible operation of the FOTT. Requested services, including suggested methodology The assignment must be conducted in two phases, whereby each phase constitutes a separate mission. Phase 1 shall be the "Conceptual Design Study" which shall set out to achieve objectives 1-3. Phase 2 shall be the Detailed Design Study which must effectively address objectives 4 and 5. Each phase will require the submission of a draft report followed by a period of 5 working days for review and comments after which the final report shall be submitted taking into account the feedback received. During Phase 1 the consultants shall, inter alia, investigate the various options relating to the ship size, layout, cargo handling methodologies and related costs. The various options presented must be developed in sufficient details to allow (1) an informed decision regarding the conceptual design of the FOTT, (2) improve factory to FOTT logistics and (3) FOTT to market transportation. Following the completion of the Conceptual Design Study and the selection of the most suitable option, Phase 2 shall commence. This component of the CDDS must provide a clear and detailed road map for the procurement of the ship and its conversion to a FOTT. In addition it must present suitable modalities for the safe and efficient operations of the FOTT. The overarching intent is that upon the completion of the CDDS the beneficiaries of the study will be equipped with the necessary documentation to procure the various components and services required to commission, operate and maintain the FOTT in a financially and environmentally sustainable way. 2

3 Phase 1: Conceptual Design Study The consultants shall assess, present and recommend options for a conceptual design of a FOTT for bulk sugar and an improved mode of transportation from factory to FOTT. The Conceptual Design Study shall include but not be limited to: a) Conceptual engineering design (i) Review and comment on previous studies, in particular the "Study of cost effective option of transporting processed sugar and molasses from factory to Ship". (ii) Define and recommend suitable modes of transporting sugar from factory to FOTT including: The use of the existing fleet of tugs and barges The acquisition of a new fleet of tugs and barges (number, design, etc) The makeup of convoys Scheduling use of convoy Loading/unloading rates and methodology Performance specifications Where a new fleet of tugs and barges is recommended, develop comprehensive design criteria that ensure the achievement of the objectives of the project. (iii) Define and recommend the various options relating to the use of a second-hand bulk ship as a FOTT taking the following critical elements into consideration: Optimal storage capacity (mindful of current and future sugar production) Type and number of vessels likely to call at the facility Facility occupancy ratios Current and future parcel size distribution to market General arrangements including number of holds/hatches Cargo handling arrangements (geared or ungeared; define SWL if geared) The possibility of conducting simultaneous loading and discharge operations Anchor/mooring arrangements Crew comfort (accommodation) Maintenance requirements/demands Best possible location for installation of the FOTT to include impacts on the safety of navigation (iv) Develop conceptual designs for different loading and unloading options including: Suitable mechanical loading systems Sustained loading rates of 4000 MT/day Barge to FOTT and FOTT to OGVs loading/discharge rates (v) Examine the FOTT to market transportation arrangements to include: Forecast of throughput and market options Assessment of shipping costs related to destination markets and traffic volume Adequacy of FOTT related to traffic pattern/scheduling Make recommendations on how to improve on current arrangements (vi) Advise, if required on further investigations, tests or services in particular to supervise the implementation of the project. 3

4 b) Financial and Economic Analysis Undertake a detailed financial and economic analysis of the different options to provide decision-makers with an overall understanding of the project's impact. The analysis must include but not be limited to: (i) Analysis of possible revenue sources. (ii) Projection of acquisition, operational and maintenance costs. (iii) Estimates of total transportation cost for each option. (iv) Total transportation costs comparison with existing costs. (v) Analysis of possible sustainable financing sources and mechanisms for acquisition, operation and maintenance. (vi) Determination and quantification of costs and benefits and the calculation of the costbenefit ratio. (vii) Thorough investment appraisal using the NPV and IRR methodologies. (viii)total cost of ownership analysis. (ix) Sensitivity analysis under the various scenarios likely to emerge over the next 5-10 years. c) Institutional and Capacity Assessment (i) Assess the institutional arrangements and capacities for implementation, operation and maintenance of the project and advise on required capacity development in order to ensure the success of the project. (ii) Provide advice on the asset life cycle management, to include amongst other things, legal, environmental and operational factors. d) Limited Level Environmental Study (EIA scoping study) A limited level environmental study 3 (LLES) is to be carried in order to provide decisionmakers in the European Commission and the partner country with sufficient information to justify, on environmental grounds, the acceptance, modification or rejection of the project for financing and implementation. It must also provide the basis for guiding subsequent actions, which will ensure that all project related activities are carried out taking into account the environmental issues identified. The LLES must, amongst other things: (i) provide an overview of the project and the applicable legislative and institutional framework. (ii) provide a description of the environmental baseline to guide the identification of impacts. (iii) predict, estimate, evaluate and communicate the possible environmental effects of the project. (iv) provide a description of the key stakeholders, their concerns and how to engage them. (v) prepare a draft EIA TOR for the approval of the Department of the Environment. e) Ranking (i) Develop a selection criteria taking into account technical, financial & economic, institutional and environmental factors. (ii) Propose a ranking of the various conceptual design options based on the selection criteria developed in order to enable decision makers to take an informed decision on the most suitable option. At the end of Phase 1 the team leader shall present the draft "Conceptual Design Report" in a briefing session in Belize. 3 In accordance with the Environmental Impact Assessment (Amendment) Regulati ons, 2007, chapter 328 of the Laws of Belize, revised edition

5 Phase 2: Detailed Design Study Based on the selected option for the FOTT and after the acceptance of the final Phase 1 report, the consultant shall prepare: a) Detailed engineering design (i) A detailed design of all elements of the project and provide the associated documentation including drawings (general arrangements), technical specifications, required adaptation measures and associated works. The design shall conform to international codes and standards. (ii) A detailed work program to guide the implementation activities including procurement, redeployment, conversion, mooring and commissioning. (iii) Update the preliminary cost estimates prepared in Phase 1. b) Procurement documents (i) Based on the detailed engineering design prepare the procurement documents (including design drawings (general arrangements), bill of quantities, technical specifications, etc. for all elements of the project including loading/unloading systems, mooring/anchor system) in the applicable EU tender format. c) Operation and Maintenance documents (i) Prepare a strategy for the operation & maintenance of the FOTT and advise, as necessary, on human capacity development issues. (ii) Prepare the necessary operation and maintenance manuals. (iii) Update the preliminary estimates for operational and maintenance costs. d) Financial and Economic Analysis (i) Based on the final design update the financial and economic analysis e) Environmental Impact Assessment and Environmental Management Plan Upon the selection of the final design for the FOTT the consultants shall finalize the TOR for the full EIA study and upon approval by the Department of the Environment, commence the EIA study. In addition the consultant shall prepare an environmental management plan in order to mitigate the risks identified during the EIA. (i) The EIA study 4 shall include but must not be limited to: a description of the proposed project; a description of the potentially affected environment, including specific information necessary to identify and assess the environmental effects of the proposed project; a description of the practical activities, as appropriate; an assessment of the likely or potential environmental impacts of the proposed activities and the alternatives, including the direct and indirect, cumulative, short-term and long-term effects; an identification and description of measures available to mitigate the adverse environmental impacts of proposed activity or activities and assessment of those mitigative measures; an indication of gaps in knowledge and uncertainty which may be encountered in computing the required information; 4 As defined at section 5 of the Environmental Impact Assessment Regulations, 1995, chapter 328 of the Laws of Belize, revised edition

6 Develop an Environmental Compliance Plan post EIA approval by the National Environmental Appraisal Committee. (ii) The Environmental Management Plan shall be developed based on the approved EIA and shall include but not be limited to: make recommendations to mitigate negative impacts and optimise positive ones during installation, operation and maintenance of the FOTT. make recommendations on how to adapt project design and operation (if required) to optimise the exploitation of opportunities, manage risks and operate under the constraints imposed by the natural environment, including climate variability, climate change and the availability or scarcity of natural resources At the end of Phase 2 the team leader shall present the draft "Detailed Design Study" in a briefing session in Belize. Required outputs The expected results of this assignment are the following: Sound professional advice and assistance on the feasibility of the proposed project Briefing and debriefing session as described herein Reports, studies, assessments and documents as described herein 3. EXPERTS PROFILE or EXPERTISE REQUIRED The consultant team will consist of one (1) Senior Experts and two (2) Junior Experts. The team leader will be the Maritime Transport Economist. One senior expert "Maritime Transport Economist" for a period of 70 working days of which at least 60 working days will be field work in Belize. One Junior expert "Naval Architect" for a period of 40 working days of which at least 30 working days will be field work in Belize. One Junior expert "Environmental Engineer" for a period of 55 working days of which at least 45 working days will be field work in Belize. A five day working week is assumed. Senior Expert 1: Transport Economist (Team Leader) Qualifications and skills He/she should have a relevant university master degree in maritime transport economics or equivalent General professional experience He/she should have at least 10 years experience in the area relevant to the assignment Specific professional experience He/she should have: At least 3 years of experience in the financial and economic analysis of projects in the maritime transportation sector Knowledge of shipping markets, freight rates and charterparties Experience in project management and procurement Experience in maritime transport and logistics Experience in offshore terminal design and operation Preferably experience in developing countries Language skills He/she must be fluent in written and oral English, a computer literate and capable of writing clear and concise reports. Working knowledge of Spanish is considered an asset. 6

7 Junior Expert 1: Naval Architect Qualifications and skills He/she should have a relevant university master degree in naval architecture, engineering or equivalent General professional experience He/she should have at least 5 years experience in an area relevant to the assignment Specific professional experience He/she should have: At least 3 years of experience in the conceptual and detailed design relevant to the assignment including vessel conversion, shipboard systems operation & maintenance, vessel mooring systems and bulk cargo handling systems Experience in developing countries Language skills He/she must be an excellent communicator, fluent in written and oral English, a computer literate and capable of writing clear and concise reports. Working knowledge of Spanish considered an asset. Junior Expert 2: Environmental Engineer Qualifications and skills He/she should have a relevant university master degree in environmental engineering or equivalent General professional experience He/she should have at least 3 years experience in an area relevant to the assignment Specific professional experience He/she should have: At least 3 years of experience with marine environmental impact assessments Profound knowledge of relevant IMO conventions governing international shipping Knowledge of shipboard waste management modalities Sound understanding of the environmental impacts of shipping Preferably experience in developing countries Language skills He/she must be fluent in written and oral English, a computer literate and capable of writing clear and concise reports. Working knowledge of Spanish considered an asset. 4. LOCATION AND DURATION Starting period: The field work should commence 01 September 2011 Foreseen finishing period or duration: The final report should be presented by 29 March 2012 Location(s) of assignment: Belize. Office space will be provided by the Belize Sugar Industry (BSI) in Orange Walk. 7

8 5. REPORTING Content The team leader is responsible for all reports. Phase 1 and Phase 2 reports must incorporate the contribution of all experts. Inception Report of maximum 10 pages (excluding annexes) which has to include a work programme for the assignment and comments on the Terms of References. The team leader shall present the inception report in a briefing session to the relevant stakeholders in Belize within 5 working days of commencement of the assignment. Draft Phase 1 Report "Conceptual Design Study" has to present the findings and recommendations of the elements of Phase 1 as outlined in section 2 in sufficient detail to allow an informed decision and shall include but not be limited to: Presentation and justification for design criteria Conceptual designs of different options and various components of the project Financial and economic analysis Institutional and capacity assessment Limited level environmental study (EIA scoping study) Ranking of the various conceptual design options Final Phase 1 Report "Conceptual Design Study" has to incorporate and address comments received on the draft Phase 1 report. Draft Phase 2 Report: "Detailed Design Study" has to present the findings and recommendations of the elements of Phase 2 as outlined in section 2 in sufficient detail and shall include but not be limited to: Detailed technical design including work programme and final cost estimates Procurement documents for required works, services and supply contracts Operation and maintenance documents Financial and economic analysis Environmental impact assessment and environmental management plan Final Phase 2 Report: "Detailed Design Study" has to incorporate and address comments received on the draft Phase 2 report. All reports have to be approved by the NAO and the EU Delegation. Language English 8

9 Submission/comments timing Assignment commences 01 September 2011 The inception report is to be submitted no later than 5 working days after the start of the assignment Draft Phase 1 Report "Conceptual Design Study" must be submitted no later than 31 October 2011 Final Phase 1 Report "Conceptual Design Study" must be submitted no later than 5 working days following the receipt of comments. Draft Phase 2 Report "Detailed Design Study" must be submitted no later than 15 March 2012 Final Phase 2 Report "Detailed Design Study" must be submitted no later than 29 March 2012 Number of report(s) copies (i) Draft reports have to be submitted in electronic format and two hard copies to the EU Office in Belize (ii) Final reports have to be submitted in electronic format and three hard copies to the EU Office in Belize 6. ADMINISTRATIVE INFORMATION Interviews if necessary indicating for which experts/position Interviews are not foreseen When in the interest of the project, possible limits to subcontracting Subcontracting is not foreseen Language of the specific contract English Request for a succinct methodology when needed Not applicable Management team member presence required or not for briefing and/or debriefing The team leader has to conduct the briefing and/or debriefing Other authorized items to foresee under Reimbursable Two return airfares for each of the experts Local inter city travel 9