Technical Assistance to Identifying Low-Carbon Public Private Partnership Opportunities for Rural and Peri-Urban Water Supply in DRC - Market Scoping, Financing and Legal Assessment

The World Bank

Democratic Republic of the Congo 🇨🇩

The World Bank seeks the services of international consulting firm with experience in market and PPP legal assessments in peri-urban / rural water supply in sub-Saharan Africa to support the World Bank Task Team in the implementation of a market scoping and financial and legal assessment in order to enable PPP transactions for the provision drinking water supply services within four provinces of the Democratic Republic of Congo (DRC).
Problem Statement
The Government of DRC (GoDRC) has requested the World Banks support to develop a programmatic framework to support policy reforms and investments and prioritize and sequence interventions for the sustainable development of the water supply and sanitation sector, including the engagement of the private sector in service delivery. With the introduction of the Water Law and the liberalization of the sector, the GoDRC aims to encourage the participation of private sector and not-for-profit service providers in the delivery and expansion of water supply services (beyond the perimeters served by the national water utility in major urban centers). To this end it, the aim is to leverage private sector expertise for the design, construction, operation, and maintenance of low-carbon and climate resilient water supply systems and to accelerate access to domestic commercial lending (that would be guaranteed through a partial portfolio credit guarantee).
The World Bank support is channeled through several investments projects, that foresee increased engagement of the private sector in water service delivery. This includes the Access, Governance & Reform for the Electricity and Water Sectors Project (AGREE, Accès, Gouvernance, et Reforme des Secteurs Electricité et Eau, P173506, awaiting effectiveness) and the Water Supply and Sanitation Access Program (PASEA, Programme d Accès des Services dEau et dAssainissement, 178389), currently under preparation. PASEA focusses on the four target provinces of Kwilu, Kasai, Kasai Central, and Kasai Oriental (US$ 400 million, phase 1). Physical infrastructure interventions will be complemented with targeted support to private and public-sector actors in both water supply and sanitation sectors.
To inform the timely appraisal of PASEA, the World Bank is supporting the GoDRC in carrying out a market scoping and financial and legal assessment in order to enable PPP transactions for the provision drinking water supply services in selected towns and peri-urban/rural areas within the four target provinces of PASEA. The specific objectives of the ToR are to:
(i) identify critical gaps in the current legal, regulatory, and institutional environment for water-specific PPP contracts and make recommendations for enabling policy measures
(ii) scope the regional and domestic market for water supply, including local private sector and identify bottlenecks and catalyzing measures to support the development of market players
(iii) assess potential demand/supply and hurdles for water service providers (including not-for-profit service providers) to access domestic commercial financing and measures to reduce risks and facilitate financial transactions
PASEA consists of four components, of which component 1 relates to the water supply sector:
Component 1: Developing Rural and Peri-Urban Water Supply for Water Security (US$280 million) consist of three subcomponents.
Subcomponent 1.1: Increasing rural and peri-urban water supply access. This will finance infrastructure, such as (i) expansion and rehabilitation of multi-village and/or peri-urban water supply systems including water source intake, production, storage/reservoirs, conveyance and distribution networks; (ii) construction, expansion, and/or rehabilitation of rural water supply systems based on an approved menu of technology options; (iii) the development of solar energy to power water systems where no electricity grids are available; (iv) equipment, tools and training for service providers; and (v) technical preparation, design and supervision of subprojects. Different management models will be promoted, with an emphasis on involving the private sector in the development and operation and maintenance phase. These can include several delegation models (e.g. public service delegation to private firms or to not-for-profit drinking water user association (ASUREP), a with operators either responsible for production, treatment and distribution, or purchasing bulk water from the national utility)
Subcomponent 1.2: Developing private sector for innovation, resilience, and sustainability of water services. This will finance technical assistance and market enabling measures to increase private sector involvement in rural water. It will finance: i) transaction advisory services for PPPs under larger perimeters; ii) technical assistance to private sector firms, including for business planning, loan proposal development, and environmental and social compliance; iii) technical assistance to selected commercial banks interested in lending to water operators; iv) performance-based grants to existing local operators to expand connections/water kiosks in unserved peri-urban/rural areas; and v) innovation/catalytic grants to private sector to improve green energy profile and introduce digital or other innovations, vi) the capitalization of a water window under a Partial Portfolio Credit Guarantee (PPCG) already established under the TRANSFORME project (P178176).
Subcomponent 1.3 Improving water governance, water resources management and investment planning. This will finance institutional strengthening at national and provincial levels and development of a water operators MIS and water resource management MIS system. Specific activities include: i) support to provincial infrastructure units (régies provinciales) to oversee water services and PPP contracts, ii) support provincial investment plans and studies for scale-up; iii) support MIS system for water systems; iv) support to economic water regulator on guidelines for tariffs and contractual PPPs and v) support to the Congolese Water Office with development of WRM plans in targeted basin(s), hydromet and groundwater monitoring.
The selected consortium shall possess the following qualifications: (i) Experience and demonstrated understanding of PPP enabling and legal environment assessment, market analysis/scoping and private sector mobilization in the water supply sector, specifically peri-urban/rural contexts, in Sub Sahara African context; (ii) Experience in conducting supply/demand assessments for water supply access to finance and design of water-PPPs arrangements, in Sub Sahara Africa context; (iii) Experience in developing sector policies, market and PPP enabling strategies in Sub-Saharan Africa, including at least one project in DRC context (water, energy, infrastructure); design of water PPPs in rural and peri-urban context in similar African countries is considered a strong asset; iv) ability to work and deliver in French with excellent professional analytical and writing skills in French.
The World Bank now invites eligible consulting firms to indicate their interest in providing these services. EOIs should include a summary of firm profile and capability; snapshots of relevant experience including market scoping, PPP option assessments and demand/supply assessment for commercial finance for the water supply sector; and short biographies of key staff who might be working on this assignment. EOIs are strictly limited to 25 pages in length including all attachments. Consulting firms may associate to enhance their qualifications.
This assignment will be administrated and supervised by the Project Lead and/or designate at the World Bank. The consulting firm will be selected in accordance with the procedures set out in the World Banks Guidelines: Selection and Employment of Consultants by World Bank Borrowers, May 2004, Revised October 1, 2006 & May 1, 2010.
Interested firms should submit their EOIs to the World Banks E-Consult System (www.worldbank.org/wbgeconsultant) by October 10,2022. If you encounter technical difficulties while uploading documents, please send an e-mail to the Help Desk at [email protected] Attachments


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