Water Supply and Sanitation Service Improvement Project (PPP Specialist)
Objective and Purpose of the Assignment
The Asian Development Bank (ADB) has been supporting the Government of Georgia (government) to rehabilitate, reconstruct and expand the water supply and sanitation (WSS) system under the Urban Services Improvement Investment Program (USIIP). To complement USIIP, the government plans to modernize the organization and capacity of the United Water Supply Company of Georgia (UWSCG) to better manage and bring efficiency in use of the assets.
To assess the UWSCG’s operation and maintenance (O&M) of the new systems, ADB conducted a study in Kutaisi, the largest city assisted by USIIP. It identified key O&M deficiencies in nonrevenue water and energy management and recommended two key actions: (i) provision of modern equipment and systems; and (ii) engagement of a private operator for effective change management, processes and practices.
The TA will assist the government to (i) define the project scope, design and costs; (ii) assess institutional, organizational and capacity development needs; (iii) conduct due diligence for the technical, financial, economic, social safeguards and environmental viability of the proposed project; (iv) improve project readiness; and (v) support project implementation start up activities.
Scope of Work
TRTA team will complete feasibility study and due diligence to ensure that the ensuing loan complies with ADB and government requirements
Detailed Tasks and/or Expected Output
This specialist will recommend most suitable PPP contractual arrangement with supporting analyses and justification for Georgia WSS sector and ensure firm EA/IA buy-in and commitment with workable and agreed KPIs that balances interests, incentives and risks of the parties involved. The Specialist will work with the TRTA team for smooth coordination and quality outputs. The PPP Specialist will support EA/IA develop, design and prepare a successful PPP. Key tasks are:
- Work with TL to develop project area selection criteria and determine the optimal size of the final project area in accordance with the available budget for the project for PPP and HLT pilots agreed with ADB and EA/IA;
- Assess PPP feasibility of WSS sector and IA in Georgia, including PPP demands, revenue generation potential, role of the private sector, risks and mitigation measures;
- Identify in coordination with TL and legal expert, a time-bound road-map and action plan for the implementation of the preferred option including approval of amendments to legislations, preparation of all transaction documents, selection of private sector operator, and sourcing and approval of investment financing;
- Recommend the preferred PPP for IA in project areas and describe the institutional arrangements relating to: (a) asset ownership, asset management, and the operations of the services; (b) form of agreement between the various parties; (c) responsibility for the financing of the development of the assets; (d) responsibility for monitoring operator’s performance; (e) revenue and/or risk sharing arrangement, and (f) responsibility for tariff monitoring;
- Conduct trainings, workshops, and roadshow(s) to the management and relevant staff of IA, and key government officials on PPP with focus on identifying, quantifying and managing PPP risks, and ensuring maximum private interests and uptake;
- Work closely with organization development specialist to assess institutional and organizational capacities, efficiency and governance (including but not limited to budget, financial and HR management) of project areas and propose optimal PPP arrangement;
- Work with financial management and analysis specialist to develop financial models for financial projections and PPP transaction structuring, and assist EA/IA to obtain necessary government clearances;
- Work with TL to arrange and implement information campaigns and public deliberations on PPP;
- Produce a comprehensive feasibility study to enable the government to determine PPP related project costs, affordability limits, risks and their costs, optimal value for money methods of delivery;
- Provide the necessary technical, legal and financial (in close liaison with PPP financial, legal experts and the government) advisory support for preparation of a PPP agreement, government’s internal approval, administration of the bidding process, and bid evaluation;
- Prepare a concept of the performance-based PPP contract and establish main contract and remuneration principles, including, but not be limited to: (a) scope of responsibility, works, procurement, and technology transfer; (b) definition of performance indicators; (c) split of fixed and performance-based fee; and (d) evaluation method and criteria;
- Discuss and agree the concept, and particularly the evaluation method and criteria with ADB and IA;
- Prepare draft versions of the following documents: (a) procurement notice, (b) request for prequalification and prequalification criteria; (c) Requests for Proposals (RFPs), and (d) main contract (s) document acceptable to ADB.
Minimum Qualification Requirements
- at least a master’s degree in Business Administration or related discipline,
- more than 10 years of similar PPP project experience,
- fluency in written and spoken English, and
- the ability to deliver high quality written outputs.