Indonesia: BioCNG Market Study in Central and East Kalimantan, Indonesia
Indonesia: BioCNG Market Study in Central and East Kalimantan, Indonesia
The objective of this Assignment is to execute a market study of potential supply and demand of POME and Cassava based BioCNG in Central and East Kalimantan (“Provinces”). The study will be based on real data from currently-active palm oil mills (supply side) and from retail household end user level located in the vicinity of the mills and in urban cities in the Provinces (demand side).
GGGI will mobilize one (1) individual consultant (“Consultant”) on a project contract basis. The following duties and responsibilities are indicative and subject to further detailing through specific service requests to be made on basis of consultations between GGGI and the consultant during the course of the contract duration.
The Consultant is expected to provide services in written reports and Powerpoint formats for meetings and other planning and reporting activities. The Consultant will be clearly informed regarding the duration and scope of the Assignment, and the required deliverables (through service requests using aSub-order Form issued to the Consultant).
Scope of Work
The market supply & demand study of both POME-based and Cassava-based BioCNG will be in the form of gathering primary data and information (comprehensive survey/research) as well as detailed commercial viability analysis, including but not limited to:
- Supply side (mill level) from both palm oil and cassava mills
- Mill capacity; total planted area hectares; amount of FFB, CPO and PKS processed; volume effluent generation and biogas production (if the mills operate biogas power plant)
- Number of transportation vehicle used for mill operation (trucks, busses, cars) (owned, leased); engine specification of these vehicles (fully-diesel, diesel dual fuel/DDF); vehicle tank and distance capacity (liter per day, Km per day)
- Number of boilers operated in each mill; how is the boiler fueled (diesel, PKS, fibers); amount of fuel needed/fuel capacity per day for operating boilers
- Number of genset operated in each mill; how is the genset fueled (diesel, gas, mix); amount of fuel needed/fuel capacity per day for operating genset
- Number of short distances vehicle (forklift, loader, tractor, crane) operated in each mill; amount of fuel needed/fuel capacity per day for operating these vehicles
- Others to be discussed further during the initial report submission meeting
- Demand side (end user level) from both retail households & restaurants/hotels and industries
- Consumption rate of gas for a single household and restaurant (12kg, 6kg, 3kg, 1kg tanks per day, per year)
- Consumption rate of gas for industry derived from number of boilers, vehicles, genset operated, etc. in each industry; how is the boiler, vehicle, genset fueled; amount of fuel needed/fuel capacity per day for operating these;
- What are the technology requirements for switching from conventional LPG to BioCNG for households, restaurants and industrial users. E.g. new cookstove technology for households and restaurants, new boilers for industries, refurbishing, etc.
- What will be the upfront investment cost for the fuel switch by household, restaurant and industry
- Others to be discussed further during the Inception phase and the Inception report submission meeting.
For this market supply & demand study, the consultant will be expected to conduct comprehensive survey as mentioned above. The survey will be based on the sampling as follows:
- Supply side:
- 5 palm oil mills and 1 cassava plantation mill in Central Kalimantan;
- 5 palm oil mills and 1 cassava plantation mill in East Kalimantan
- Demand side
- 10 households/restaurants located surrounding the 5 palm oil mills surveyed in Central Kalimantan (total 50 households/restaurants)
- 10 households/restaurants located surrounding the 5 palm oil mills surveyed in East Kalimantan (total 50 households/restaurants)
- 10 households/restaurants located fair distances apart in urban cities(s) in Central Kalimantan (total 10 households/restaurants)
- 10 households/restaurants located fair distances apart in urban cities(s) in East Kalimantan (total 10 households/restaurants)
- 10 households/restaurants located either surrounding the cassava mill surveyed or in urban city in Central Kalimantan (total 10 households/restaurants)
- 10 households/restaurants located either surrounding the cassava mill surveyed or in urban city in East Kalimantan (total 10 households/restaurants)
- 10 potential industrial users of BioCNG gas (7 in each province) located either near mills or in urban centers
- Commercial Viability Analysis: Using the data obtained from 1 & 2, analyze the commercial viability of Bio CNG usage both for Supply and Demand side while detailing all possible potential risks in introducing such new fuel supply locally.
If required by the GGGI, the Consultant could be requested to provide additional advisory services on topics related to her/his expertise area.
The Assignment will require written deliverable reports and (Powerpoint) presentations to GGGI which should at least cover the above-mentioned scope of works (including inception report and TOR for next phase study using the recommendations from final report) A regular schedule coordination meeting during the contract period as well as at the end of the contract (final meeting) is also required. The schedule and timeline of the Assignment is outlined in this section.
The Consultant is required to submit countersigned Coversheet Form in which Work Completion section was signed by the service requestor as the deliverable of each service.
The Consultant will report to the Mr. Shashank Swan (Investment Lead of GGGI) for the completion of the tasks and duties at the GGGI in which the Consultant will be retained.
Time Table and Reporting Arrangements
General Overview of the timeline of the deliverables, to be fixed upon signing of the contract, and aligned with the outputs mentioned above:
Initial report and update workplan (confirmed with GGGI team)
Within 2 weeks after contract signed
Interim report of the findings and draft recommendations
Within 8 weeks after the contract signed
Final Report and presentation which includes recommendations covering scope of works mentioned above
Within 12 weeks after contract signed
Value Added Tax clarification
Individual consultant without Indonesian tax ID: In accordance to Directorate General Taxation number SE-145/PJ/2010 VAT is applicable on foreign services rendered by international entities not registered in Indonesia are subject to 10% VAT.
Withholding tax on foreign services rendered / withholding tax Art. 26
Payments of royalties, interest and service fees by a resident taxpayer to a non-resident taxpayer are subject to 20% withholding tax Art 26. However, if the payment is made to a resident of a country with which Indonesia has signed a tax treaty, the withholding (WHT) may be reduced or exempted. Non resident tax payer should get the DGT1 form certified by their country of residence tax authority to be exempted from WHT. Please visit the following sites to download the DGT 1 form. (http://www.pajak.go.id/content/formulir/10198/form-dgt-1)
Withholding tax on local purchase of goods and services
Payments of certain types of income paid to resident taxpayers are subject to withholding Art. 23 at a rate of 15% (for dividend, interest, royalties) and 2% (rental of asset, other than land and building [which is subject to final tax Art. 4(2)] and services such as technical, management, consulting services, etc
The Consultant may be required to produce additional outputs, such as PowerPoint presentations, as reasonably deemed necessary by GGGI.
Payment will be based on approval by GGGI of the deliverables, not on the number of days worked.
- At least 7 years of experience related to waste-to-energy/Bioenergy/BioCNG/CNG project development and market assessment in Indonesia;
- A Master-Degree holder in Energy, preferably in Bioenergy specialization from a reputable local or overseas universities/institutes required;
- At least 3 residual biomass (waste to biogas/biomethane) energy projects completed in Indonesia in the past 7 years;
- At least 5 years of experience working in Indonesia and communicating fluently in English and/or Bahasa;
- Ideally best candidate will have a wide network in Indonesia’s bioenergy sector including with Indonesia Plantation Agency (Dinas Perkebunan) at national and subnational level (Central and East Kalimantan);
- Demonstrated knowledge and experience in undertaking primary research especially in the area of all kind of Bioenergy products will be favorable;
- Must be Indonesian citizen and have legal rights to work in Indonesia;
- Must be willing to conduct necessary field work for extended periods in Central and East Kalimantan
Contract Type,level and duration
- Advisory Support: Level E - Full Time
- 15 March 2019 - 15 July 2019
- Contract value : USD 400
- Max 75 days
- Max 30,000