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TERMS OF REFERENCE (TOR) FOR ENGAGEMENT OF A PRIVATE INVESTOR FOR INNOVATIVE SOLUTION TO SAFE WATER SCARCTY IN KISMAYO, JUBALAND STATE, SOMALIA

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Job Description

TENDER NOTICE –NRC/20/JL/002

TERMS OF REFERENCE (TOR)

FOR ENGAGEMENT OF A PRIVATE INVESTOR FOR INNOVATIVE SOLUTION TO SAFE WATER SCARCTY IN KISMAYO, JUBALAND STATE, SOMALIA

  1. BACKGROUND INFORMATION

1.1  About Norwegian Refugee Council and the Project

Norwegian Refugee Council (NRC) has been present in Somalia since early 2004 Over these years, the Norwegian Refugee Council (NRC) has demonstrated a regional competence and expertise in working with displaced populations with programs in Food Security, Education, Water and Sanitation, Shelter, Information Counselling and Legal Assistance. Since 2013 NRC has become one of the leading actors in Implementing resilience and Durable solutions programs in Somalia.

In Kismayo, NRC is implementing an Innovation Project funded by Bill and Melinda Gates Foundation. The project aims to provide sustainable safe water supply to displaced, reintegrated populations and the hosting communities at an affordable price. The total target population is 10,700 individuals. Such an intervention will contribute to building the resilience of the beneficiaries whereby they will be able to spend less time on water collection hence engage in productive activities and to practice better hygiene thus reduce water-related diseases.

NRC is seeking to engage a private investor to establish a partnership that will deliver the intended results. It is envisaged that NRC will work with the Private Investor in a manner that both parties contribute to the capital costs of the project whereas, the Private investor will eventually operate and manage the water supply system in line with the Ministry of Minerals, Energy & Water of Jubaland State of Somalia Regulations through a tripartite agreement that shall be signed between the NRC, the Private Investor and the Ministry of Minerals, Energy & Water of Jubaland State of Somalia

1.2 Purpose of the Private Investor Engagement

  • To ensure that the established water supply system is operated and managed in a sustainable manner that ensure uninterrupted water supply for the target population.
  • To promote scalability of the project through the private investor thus reaching more beneficiaries in medium to long-term.
  • To build the capacity of the private partner in innovative technology for good financial management and continued service delivery. For this aspect, SmartTAP technology shall be used for water delivery and payment to enhance transparency for the accounted water.
  • To enable NRC gradually exit from basic service provision.
  • To build the Ministry’s capacity thus to exercise its mandate for water regulations, directions and supervision to enhance service delivery

1.3 Defining The Private Investor

The ‘private sector’ comes in many forms. This strategy adopts the following broad typology.

  • ‘the business community’ individuals or companies that operate within the country and whose core business is provision of water supply services,
  • ‘providers of ancillary water services’: companies that produce / sell goods and services supporting water supply service provision (e.g. equipment, infrastructure, IT, financial services);
  • ‘Membership associations/groups for private sector operators’: operating mainly at the State level.
  • Roles of the Private Investor in the Partnership
  • Work with NRC and the relevant government Ministry to design and establish a sustainable safe water supply for the target population within Kismayo District. The target population being the displaced and or reintegrated populations and the hosting
  • Contribute financially at between 50% – 60% of the total cost towards the establishment of the water supply system targeting to provide a minimum of 80,000 litres of safe water per day.
  • Work with NRC to engage consultant(s) to undertake a technical feasibility and an environmental assessment in order to design and develop Bills of Quantities for construction of an appropriate water supply system to meet the above requirements without causing adverse negative effects to the environment.
  • Work with NRC to engage contractors and suppliers for construction works and supply of equipment required for the water supply system. For compliance purpose, NRC procurement procedures shall be adhered to.
  • Train the beneficiaries on use of SmarTap Technology for purchase of water.
  • Monitor and supervise all the personnel and activities related to the establishment of the water supply system,
  • Together with NRC and the Ministry of Minerals, Energy & Water, formulate and sign a Memorandum of understanding that shall define the modalities of operations and management of the water supply system. The MOU shall define the roles of the government in the short, medium and long-term.
  • Develop a business plan for the initial establishment of the water supply system and a plan for future expansion to reach more beneficiaries.
  • Roles of NRC in the Partnership
  • Facilitate meetings and discussions relating to the project with the stakeholders including the Ministry of Minerals, Energy & Water of Jubaland State of Somalia, the target population, other WASH actors within Jubaland State.
  • Provide management and technical guidance to the Private investor for establishment of the water supply system within Kismayo District.
  • Contribute financially at between 40% – 50% of the total cost towards the establishment of the water supply system targeting to provide a minimum of 80,000 litres of safe water per day.
  • Work with the Private investor to engage consultant(s) to design and develop Bills of Quantities for construction of an appropriate water supply system to meet the above requirements.
  • Work with the private investor to engage contractors and suppliers for construction works and supply of equipment required for the water supply system. For compliance purpose, NRC procurement procedures shall be adhered to.
  • Support in monitoring and supervise all the personnel and activities related to the establishment of the water supply system,
  • Support the private investor in training the beneficiaries on use of SmarTap Technology for purchase of water.
  • Facilitate training of the Private Investor’s staff on O&M and management of the SmartTAPs and the entire water supply system.
  • Provide to NRC the real-time transaction data from the SmartTAP management tool for analysis on sustainable of the water service delivery
  • Draft and facilitate the signing of a Memorandum of understanding between the Private Investor, NRC and the Ministry of Water. The MoU shall define the modalities of operations and management of the water supply system.
  • Report project activities undertaken and the resultant outcome to the funding donor.
  • All the project contributions from NRC will be regarded as a public investment and shall be registered with the Ministry Minerals, Energy & Water.
  • Role of the Government in the Partnership
  • Support in identification of the most suitable site within Kismayo District for establishment of a safe water supply system that will provide water to displaced, reintegrated and host community based on needs.
  • Undertake an oversight role in ensuring that the project meets high quality standards for provision of safe water supply. .
  • Provide guidance for and approve the Environmental Impact Assessment Report
  • Provide Land tenure documentation for the proposed water supply site.
  • Oversee the implementation of the roles defined in the tripartite Memorandum of Understanding between NRC, the private Investor and the Ministry of Water. This includes ensuring that the agreed water tariffs are adhered to and that there is a pro-poor arrangement that enables the poorest to access drinking water at no cost.
  • Support in leading coordination with other agencies to avoid overlap while promoting complementarity.
  • Ensure that the infrastructure under this project fall within the Kismayu Master plan and are not subject of demolition at any point during and after the intervention.
  • In collaboration with NRC and the Ministry of Minerals, Energy & Water, identify the most suitable site within Kismayo District for establishment of a safe water supply system.
  • Together with NRC and with involvement of the Ministry of Minerals, Energy & Water, establish water tariffs that are reasonable to ensure continued operations and un-interrupted water supply to the target community.
  • Support the private investor undertake analysis of capital cost and recurrent costs in order to set up reasonable water sale tariffs. The agreed tariffs shall be endorsed by the Ministry of water and shall be binding or an agreed period of time but not less than five (5No.) years.
  • Process and Timeline
  • The partnership will involve consultations with NRC, State and Local authorities of Kismayo District and the Community Committees from the project sites selected for intervention.
  • The partner to be selected for the partnership is expected to provide a detailed concept note with a clear business plan to meet the objective of the partnership as described above.
  • The actual implementation of preparatory activities including Technical feasibility assessment, preparation of designs and Bills of Quantities and an Environment Impact Assessment are expected to commence as soon as a possible and in any case not later than first week of April 2020. Actual construction works are therefore expected to begin by Mid-April 2020 and to be completed within three months after the start.
  • The bidder is expected to facilitate his/her movement to the target project site for the purpose of inspection and development of a viable concept note.
  • Selection Criteria for the Private Investor
  1. Must possess registration with the relevant authorities, including the possession of a valid operating license, to operate in Jubaland State (Lower Juba Region) and compliance with the tax authorities,
  2. Must have adequate resources to implement the project in partnership with NRC (Provide bank statement as from August 2019 to February 2020),
  3. Must submit a detailed concept note with a clear business plan to establish a sustainable safe water supply for the target population. At a minimum, the Bidder will define the type of water supply proposed, the estimated cost of setting up the WSS, the estimated % contribution he is willing to provide, the sustainability measures proposed, the estimated water tariff in cost/m3, the estimated population to be served.
  4. Bidder should fall within one or more of the definition groups state in section 1.3,
  5. Bidder must be from Somali origin preferably from Jubaland State,
  6. Must be willing to partner and collaborate with NRC and the Ministry of Minerals, Energy & Water for smooth implementation of the project.
  • Application Process;
  1. The bidders will submit their concept Note in line with the detailed stipulated in the section 6(c) above;
  2. The bidder must also provide copies of valid registration documents and licences as detailed in section 6(a) above;
  • The bidder must provide copies bank statement as from August 2019 to February 2020 as proof of financial capacity to meet financial obligation within the partnership;
  1. The application shall remain valid for a period of not less than 180 days from the date of submission.
  2. All these document must be submitted to NRC Kismayo Office on or before 30th March, 2020.
  3. The Water service providers (Private Investors) with public private partnership agreement with the Ministry of Minerals, Energy & Water is an added advantage
  • Registration from the Ministry of Minerals, Energy & Water is an added advantage

Any enquiries or questions may be addressed to NRC Kismayo office, Tel no: 0617411666 Email: so.jlprocurement@nrc.no , www.nrc.no

_______________________________________________________________________

Norwegian Refugee Council, Kismayo Office, Farjano, next to Wamo Stadium,Telephone: +252 612594746, Email: so.jlprocurement@nrc.no 

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