TERMS OF REFERENCE (TOR)

A Framework for Action: Sector Wide Approach (SWAp) in Rural and Renewable Energy Sector 1 B ACKGROUND
Alternative Energy Promotion Centre (AEPC) is the apex institution promoting Renewable Energy Technologies (RETs) in rural Nepal. Under its umbrella, AEPC is implementing various programs and projects. One of them, Energy Sector Assistance Programme (ESAP), a comprehensive alternative energy support programme was introduced in 1999 with an expected implementation period of 15-20 years. ESAP Phase I, completed in 2007, has successfully reached more than 1.5 million rural people who benefited from improved cooking stoves, electric lights and other basic services (solar home system and micro hydro). The Governments of Nepal, Denmark, and Norway signed joint financing agreement together to support the ESAPs second phase (ESAP II) in March 15, 2007. Later in March 2010 and March 2011, Germany/KfW and UK/DFID joined hands for ESAP II respectively. ESAP-II has been conceptualised as preparing the rural energy sector for a Sector Wide Approach (SWAp) (ESAP II Programme Document). A SWAp, in its essence, is a coordinated strategy in which donors and host Governments agree on a single sector wide policy and expenditure program. At the national policy level, good progress has been achieved during the implementation of ESAP II: AEPC as the focal agency for the promotion of RE in Nepal, provides excellent potential for donor harmonization and alignment as donors already operate under AEPCs umbrella. Norad, Danida, UK/DFID and Germany/KfW work together under ESAP II. In addition, AEPC is executing agency for the World Bank & UNDP financed Rural Energy Livelihood Programme (RERL) and KfW and World Bank financed Biogas Support Program respectively. AEPC is also the main contact partner for the preparation of around USD 40 million- ScalingUp Renewable Energy in Low Income Countries (SREP) assistance to Nepal. Additionally AEPC is presently managing the EU financed Renewable Energy Project (REP) ending in early 2012; ADBs USD 1.1 million technical assistance to the Improved Water Mill project and to wind power; and GIZs Euro 0.5 million Micro Hydro Debt Fund. From the legal point, the contours of the coherent policy are in place: a Rural Energy Policy was approved by the Government of Nepal (GoN) in 2006; ESAP assisted in the preparation of follow-up laws and regulations. A national policy for RE-subsidy was approved by the GoN in 2000; it has been revised several times since then. Presently drafting of a Nepals 20 years Perspective Plan for Renewable Energy is ongoing. To serve as the institutional vehicle for donor coordination, the Ministry of Environment (MoEnv) established the Rural and Renewable Energy Development Partnership Forum (RREDPF). The Forum is chaired by the Secretary of Ministry of Environment and comprises representatives from NPC,

Ministry of Finance, local Government, and the external development partners in RE Sector. Likewise, specific policies and actions are formulated to integrate rural energy with social and economic development, among others, the establishment of a Central Renewable Energy Fund (CREF) and high-level Renewable Energy Central Coordination Committee (RECCC). Moreover, three studies completed in 2010 are likely to have a strong positive impact in moving the SWAp preparation process forward. (i) The draft Act for Establishment of Alternative Energy Promotion Board, prepared in 2010 defines the direction of AEPC and provides AEPC with status that is more autonomous. (ii) The AEPC Strategic Organization Development (SOD) Plan 2010, prepared through an intensive stakeholder consultation process, provides an excellent foundation for decision making on how to enable AEPC in performing its central role in a future SWAp. (iii) The Feasibility Study on the Possibility of the Sector Wide Approach (SWAp) in Rural and Renewable Energy Sector and Identification of Its Indicators provides a practical step-by-step roadmap for how to move towards a coherent SWAp within a few years. The study concluded that SWAp is feasible in principle and that donors and GoN can take a number of practical steps to make the implementation of a SWAp in RRE sector within a few years. The study outlined two options (apart from a third doing nothing): (i) rapid and sustained move towards full SWAp implementation with 3 years plan and (ii) gradual and partial move towards SWAp with pilot options. The differences between the roadmaps for two options are marginal. ESAP/AEPC is now planning to take forward the progress towards SWAp application in the RRE sector. In doing so, ESAP/AEPC wishes to prepare a set of framework documents covering areas of governance, institution and implementation for the RRE sector, which upon approval by the GoN, will be a roadmap for eventual SWAp application for the RRE sector and provide AEPC within 3-4 years with the capacity to manage a SWAp for RE in Nepal. Through this, ToR AEPC/ESAP II intends to procure services of the qualified company/consultants to conduct this study.

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2.1

O BJ ECTIVES
Development Objective:
This study is to contribute to the development objective of: Alignment of national and external development partners to the national rural energy sector policy and institutional framework.

2.2

Immediate Objectives:
The immediate objective to which this study will contribute is: SWAp for Rural and Renewable Energy development in place.

2.3

Objectives of the Assignment

The main objective of this assignment is to assist AEPC and GoN to formulate a broad framework for other External Development Partners (EDPs) to participate in assisting the sector in a coordinated and harmonised manner to achieve the development goal described above.

S COP E OF WORK
This ToR covers assisting AEPC/ESAP in following activities: Preparing a series of framework documents for the Rural and Renewable Sector as presented in Table 1 below. Present the draft report(s) findings to AEPC/ESAP to obtain additional inputs and comments. Revise report accordingly and present the findings to broader forum through the consultative workshop (s) (see Section 3.1 below). Produce final report based on all inputs, comments provided at the workshop (s).

Table 1: General Outline of Framework for SWAp in Rural and Renewable Energy (RRE) Sector Involved/ Responsible donors/Projects/ Sections MoEnv MoF NPC AEPC and all programs/ projects All interested donors

S.N 1

Key aspects RRE SWAp Sector Strategy

Existing Situation Policy in place Organization in place Donors, Governments commitment and willingness

Key Issues No clarity on the definition of the sector The need for autonomous body, one basket fund approach Organizational Capacity

Desired outputs/Action required Review Rural Energy Policy Formulate Comprehensive Swap Strategy for RRE including o Goals o Purpose o Objectives o Activities o Working policy o Roles and Responsibilities of stakeholders o Resource Mobilization Strategy o Implementation Modality Based on Rural Energy Strategy, formulate Medium Term Expenditure Framework for RRE which includes: o Macroeconomic Policy and outlook o Fiscal framework outlining principle behind the fiscal policy, overall aims and objectives for next three years o Revenue comprising sources of National

Relevant Documents/ Publications

Rural Energy Policy

2006
Subsidy Policy Subsidy Delivery

Mechanism
Feasibility study on

SWAp in R & RE Sector Proposed/Planned: o RE Act o AEPC Act o CREF, RECCC regulations

Sectoral Budget and Medium Term Expenditure Framework (MTEF )

MTEF exists for RRE sector as inputs for Three Year Plan

General format

Three Year Plan, GoN,2067 Economic Survey 2068, GoN Budget of 2068/69, GoN Planned: 20 years RRE perspective plan.

MoEnv MoF NPC AEPC and all programs/ project

S.N

Key aspects

Existing Situation

Key Issues

Desired outputs/Action required Budget revenue including tax proposal and expected donors funding o Medium Term Expenditure Projections o Local Government Finance including intergovernmental transfer to local government both conditional and equitable grants

Relevant Documents/ Publications

Involved/ Responsible donors/Projects/ Sections

Funds flow Mechanism and financial management system

GoN general fund flow and auditing system Donor/project specific fund flow mechanism and FMS Decentralized fund flow framework

Basket funding for donors funded programmes

o Harmonized Financial Management System by considering existing GoN and Donor systems including: o Fiscal decentralization and Financial Management (FM) policy o Mapping of all FM transactions and activities in AEPC, DDCs o Computerization of FMS o Mechanisms and procedures for FM functions o FM guidelines and manuals

Public Procurement Act 2064, MoF Public Procurement Regulations Financial Procedures, MoF Financial Procedures Donors Subsidy Policy and Mechanism

MoF MoEnv Donors

S.N 4

Key aspects Sectoral Performance and accountability

Existing Situation Midterm and final review of national periodic plans Project specific performance evaluation and accountability

Key Issues

Desired outputs/Action required

Relevant Documents/ Publications Monitoring and Evaluation System of GoN Project specific Design and Monitoring frameworks Best Practices on M &E Monitoring Guidelines, AEPC Project specific annual reports

Design and implement Lack of sectoral performance and coordination Accountability framework among different which covers: agencies o Joint performance Lack of clarity on monitoring roles and o Roles and responsibilities responsibilities of various among different stakeholders stakeholders o Performance Indicators including central o Implementation plan with Government, responsibilities, resource local bodies, requirements, timeline, donors, etc community, etc o Coordination mechanism Lack of o System for regular performance feedback on based performance and also on evaluation lesson learning to other projects District Energy Plans are not available Formulate comprehensive planning process

Involved/ Responsible donors/Projects/ Sections MoEnv MoF NPC AEPC and all programs/ projects All interested donors

RRE Planning

Planning process guided by NPC following special format Project specific yearly plan of operation General inventory of RRE in districts

Planning documents at AEPC and MoEnv Future 20 years RRE perspective plan

MoEnv MoF NPC AEPC and all programs/ projects All interested donors

S.N 6

Key aspects Technical Issues

Existing Situation Project specific technical manuals for different RRE technologies Norms and specification Project specific quality assurance plan and guidelines Initiation for Institutional Strengthening Project specific capacity building plans

Key Issues Project specific Manuals No coordination between various projects working on same technology

Desired outputs/Action required Review and comment on comprehensive technical manual for RRE technologies Compiling/Producing General manual: o Norms and specifications o Technical guidelines o Quality assurance system in RRE Review AEPC SOD Plan and include: o Resource management (human, financial and logistics) o HRD plan

Relevant Documents/ Publications

Manuals/specificatio

ns of various RRE technologies Project/Programme based guidelines

Involved/ Responsible donors/Projects/ Sections MoEnv MoF NPC AEPC and all programs/ projects All interested donors

Institutional Development and capacity building plan

Lack of clear coordination and overlapping among the existing institutions working in RRE Lack of comprehensive HRD Plan Lack of coordinated and effective project appraisal framework

AEPC SOD AEPC Act Mission reports

MoEnv MoF NPC AEPC and all programs/ projects All interested donors

Joint Appraisal and monitoring

Project specific appraisal (different donors following their own appraisal methods) Project specific reviews

Formulate framework for Program/projects joint appraisal and documents and monitoring covering; guidelines o Roles and Review Missions Responsibilities of Documents Government and development partners o Joint Appraisal and Monitoring Formats to be used by Government and

MoEnv MoF NPC AEPC and all programs/ projects All interested donors

S.N

Key aspects

Existing Situation

Key Issues

Desired outputs/Action required donors o Guidelines for M & E o Integration of M & E with Management Information System ( MIS) o Implementation arrangements including capacity building, incentive mechanism

Relevant Documents/ Publications

Involved/ Responsible donors/Projects/ Sections

Procurement Policies, Guidelines

Procurement ACT and Regulations Donor/Project specific procurement guidelines

Lack of uniformity in procurement policies (Each donor has their own policy guidelines) Lack of procurement guidelines for local level projects Lack of uniformity in safeguard policies (each donor has its own policy) Absence of effective environmental appraisal and

Formulate harmonized procurement guidelines in consistent with the Procurement act and regulations covering: o General Provisions for procurement o Basic procurement methods o Complaints and Appeal o Audit Formulate uniform safeguard policy and guidelines for RRE considering existing acts and regulations of GoN and donor policies and guidelines

Program/projects procurement documents and guidelines GoN requirements

MoEnv MoF NPC AEPC and all programs/ projects All interested donors

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Safeguard Policies

Donor/Project specific safeguard policies Project specific safeguard guidelines exist for some projects Environmental protection Act

Program/projects documents and guidelines GoN requirements

MoEnv MoF NPC AEPC and all programs/ projects All interested donors

S.N

Key aspects

Existing Situation and regulations

Key Issues monitoring Absence of national policy for indigenous people development Absence of Monitoring and reporting System of GoN Lack of uniformity in M and E system (Each donor has their own policy) No system exists for Impact and outcome evaluation

Desired outputs/Action required

Relevant Documents/ Publications

Involved/ Responsible donors/Projects/ Sections

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Monitoring and Reporting

General GoN system for monitoring and reporting Project specific monitoring framework/ guidelines Joint Local RRE Sector Steering Committee Project specific steering committees

Formulate harmonized monitoring, reporting and evaluation framework including Roles and Responsibilities at different level Monitoring Guidelines with indicators, plan and schedule Incentive mechanism for M &E Integrating Monitoring with MIS

Program/projects procurement documents and guidelines GoN requirements

MoEnv MoF NPC AEPC and all programs/ projects All interested donors

C ONS ULTATIVE WORKS HOP (S ) 1

The study will require a series of interactions with all stakeholders at any phase of assignment implementation. The responsibility of the consultant during such interactions shall at least cover the following activities: Organise consultative workshop and make presentation(s) in the workshop Facilitate discussions in the workshop Draft conclusions and recommendations based on the discussion Prepare proceeding of the workshop (s)

O UTP UTS /DELIVERABLES

The consultant will deliver the following outputs: Inception/Desk Report, with study methodology and draft (tentative) content of each planned report both in hard and electronic copy. One copy of draft report in hard and electronic copy of all reports prepared. Three copies of final report both in hard and electronic version of all reports prepared. One copy of the proceedings, including findings and recommendations of the workshop in hard and electronic version.

INP UTS FROM AEP C/ES AP Considering the importance of the proposed assignment a SWAp Task Force Group will be formed at AEPC/ESAP to support and guide the consultant on the specified task. The Task Force Group will periodically monitor the progress of the work by the consultant.
Likewise the ISRES/ESAP staff will be providing support where needed.

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7.1

TIME AND BUDGET

Timing
It is estimated that the assignment will be completed within 9 months after the signing of the contract. The consultant/firm shall propose a realistic work plan for this timeframe and or/schedule.

7.2

Budget
The required budget should be prepared as per proposed format attached in Table 2 of Annex II.

The associated cost will be the responsibility of AEPC/ESAP.

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TEAM C OMP OSITION

Considering the determined objective of the assignment, a multi-disciplinary team of experts is proposed. Essentially, the team shall compromise:

S.N 1

Proposed Position

Required Qualification

Sector Wide Approach (SWAp) A Masters Degree, preferably PhD, in Expert: Team Leader Environment/Management/Renewable Energy etc. Experience of successfully undertaking similar assignments in the past Experience of working at the very highest level with Government officials and other EDPs and the inter-personal skills needed for this; Inside knowledge of how national and multinational aid organizations operate, both at the central and local level A broad view of the environment within which donor co-ordination and pooling for SWAp take place, taking into account the linkages between local public sector institutions, politics, donor politics, private sector and civil society. Detailed technical knowledge of how aid is implemented on the ground Well developed mechanism to contribute to the disseminations of lessons learned and to ensure that the results of this study are fed into the Government and EDPs community. Very good report writing skills in English Rural and Renewable Energy A Masters Degree (preferably Ph. D.). Expert More than 15 years of experiences in managerial position in Rural & Renewable Energy and GoN plan formulation. Should have an excellent experience in decentralization issues of Nepal, Government administrative, financial and management structure and existing approach in Rural and Renewable Energy Development. Experience of working at the very highest level with Government officials and the interpersonal skills needed for this. Inside knowledge of how national organizations operate, both at the central and local level. Very good report writing skills in English and Nepali Rural Energy Economist A Masters Degree in Resource Economics preferably in energy economics More than 10 years of experiences in financial and economical aspects of RE. Very good report writing skills in English and Nepali.

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S.N 4

Proposed Position Decentralisation and Governance Expert

Required Qualification Local Masters in any development field More than 10 years of experiences in governance and decentralization issues Government aspects Very good report writing skills in English and Nepali.

Monitoring Expert

and

Evaluation Masters in any development field with in depth knowledge on monitoring and evaluation More than 10 years of experiences in monitoring aspects on RE technologies Very good report writing skills in English and Nepali. A Masters Degree in Financial Management More than 10 years of experiences in financial and economical aspects of RE. Very good report writing skills in English and Nepali.

Financial Management/Procurement Expert

Judicial Expert:

and

Legal

Services A Masters Degree in Law. More than 15 years of experiences in managerial position in legal and judicial services of Government of Nepal. Experience in drafting of laws, contracts and agreements, providing legal advices and rendered legal opinion regarding national, preparation of legal documents on behalf of Government of Nepal and involvement in negotiations with national and international agencies. Experience of working at the very highest level with Government officials and the interpersonal skills needed for this. Inside knowledge of how national organizations operate, both at the central and local level. Very good report writing skills in English and Nepali.

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9.1

S ELECTION/E VALUATION P ROCES S

Proposals submission
Technical and financial proposals in two separate envelopes are welcome from qualified consulting firms. Please limit the length of CVs of experts to 3-4 pages, highlighting the relevant experience related to the assignment. The proposals shall be submitted by 5:00pm, September 5, 2011, strictly to the following address, mentioning Proposal for Preparation of a Framework for Action: Sector Wide Approach (SWAp) in Rural and Renewable Energy Sector:

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ESAP Administration Energy Sector Assistance Programme Alternative Energy Promotion Centre P.O. Box 26143 (GPO Kathmandu) Khumaltar Height Lalitpur, Nepal AEPC/ESAP will not entertain proposals not submitted within the deadline and to the given address. AEPC/ESAP reserves the right to revise, postpone and/or cancel this call for proposal, timely notice of the same will be conveyed to all concerned.

9.2

Evaluation
Evaluation of the proposal will be done on the basis of the demonstration of clear understanding of study objectives, proposed methodologies, team composition, elaborated scope of the activities and cost effectiveness. The proposal shall reflect the value addition on the ToR. The evaluation criteria will be as follows: Quality of the Proposal Proposed overall methodology Understanding and elaboration of the Scope of Work Capability and Experience of the Firm Experience in Similar Field Experience in Rural Renewable Energy Sector Financial and Administrative Capacity Qualification and Experience of Experts (Total for each key investigator Academic/Professional Qualification Similar past experience Financial conditions Proposed cost 15% 10% 5% 40% 20% 10% 10% 35% 5%) 2.5% 2.5% 10% 10%

Within AEPC/ESAP, an appraisal team of three members will be constituted for evaluation purposes. The contract will be awarded to the individual and/or firm scoring the highest in aggregate as per the selection criteria listed above.

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DOCUMENTS

TO BE SUBMITTED

Proposals without the documents described below will not be entertained. Copy of the citizenship certificate of experts A copy of company registration certificate A copy of Tax and VAT Registration certificate

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Signed CVs (of not more than 4 pages) of Experts outlining relevant experience Technical and Cost proposals in 2 separately sealed envelopes Any other relevant documents

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ANNEXES
The proposals should be framed according to the annexes provided below.

Approved by:

____________________ Niels Juhl Thomsen Chief Adviser ESAP Date :___________________

______________________ Dr. Narayan P. Chaulagain Executive Director AEPC Date :__________________

Annex I: Guidelines for proposal preparation Methodology HR details with signed CV of all the proposed study team members (not necessarily of support staffs) List of similar experience of the proposal submitting firm List of similar experiences of the proposed study team in individual basis Budget sheet in the format of AEPC/ESAP (refer to Table 2 below) Time frame indicating the specific activities.

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Table 2: Proposed Cost Estimate for Services

Annex II COST OF SERVICES AND PAYMENT SCHEDULE ESAP B/L to charge expenses: A. Detail of Fee Name of Professionals Consultant: Contract No.: Unit Rate (NRs.) Total Amount (NRs.)

S. N. 1 2

No.

Man day

Sub Total Overhead 10% Total Fee Total Fee exclusive of VAT B. Detail of reimbursable (as per actual upon submission of third party original bills)* S. N. 1 2 Total C. Total Payment Particulars A&B Contract Value excluding VAT 13% VAT of Total Fee Total Contract Value Contingencies** D. Payment Schedule *** Instalments 1st instalment 2nd instalment 3rd instalment 4th instalment (25%+VAT) Percent 25.00% 25.00% 25.00% 25.00% 100.00% Amount (NRs) Reimbursable No. Unit (Days) Rate

Total

Amount (NRs ) -

Due Date

Expected Output

Total

* Reimbursable figures includes VAT ** To be spent with the prior approval from AEPC/ESAP only *** Schedule includes VAT; all payments will be released only on submission of a valid and renewed company/firm and tax registration or other relevant documents as required for the purpose

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Table 3: Logical Framework/Activity Matrix

Description ISRE Development Objective Related to Proposed Activity: Alignment of national and external development partners to the national rural energy sector policy and institutional framework. Immediate Objective of this Activity: The main objective of this assignment is to assist AEPC and GON to formulate a broad framework for other External Development Partners (EDPs) to participate in assisting the sector in a coordinated and harmonised manner to achieve the development goal described above. The activity will assess the possibility of SWAP in the rural and renewable energy sector in Nepal. Output: Final study report in English in hard and soft copies Workshop Proceedings Activities/Scope of Work: Desk Study Draft report submission to ISRES Incorporating comments and finalizing the report Consultative Workshop Submitting and getting the final report accepted by ISRES//ESAP/ AEPC Literature review Report, Presentation at AEPC/ESAP Comments/feedback Access to information and relevant materials Timely completion of activities Participation of national and external development partners in discussions on possibilities of SWAp Rural energy continues to be high on the priority of GoN and EDPs Verifiable Indicators Means of Verification Critical Assumptions

Minutes of coordination meetings/workshops

Activities outlined in the Scope of Work (SoW)

Draft study report

Timely execution of all SoW activities

Study schedule Proceedings feedback

Final report Conference Proceedings

Cooperation from all agencies and EDPs

Interview schedule/ Minutes/Draft report/ Proceedings/ Final report

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Description Inputs: Budget NPR..... Million

Verifiable Indicators

Means of Verification

Critical Assumptions

Financial Proposal

Consultants Claim

Human Resource: Consultant = 9 man months

Activity undertaken within the budgetary thresholds and deadlines Delivery of outputs with expected standard

Activity Schedule

Proposal

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