Feasibility Study Expert (3 positions)

Background

The objective of this Project is to accelerate implementation of energy efficiency measures in public buildings in Ukraine through the Energy service company (ESCO) modality, utilizing energy performance contract (EPC), by leveraging significant private sector investment over its five-year implementation period as well as by introducing a Single Nationwide Energy Management Information Systems (EMIS) for Ukraine.

The project partners with numerous municipalities in Ukraine and aims, inter alia, to implement at least 10 pilot projects in selected public buildings to demonstrate the energy and cost-saving potential of energy efficiency measures.

Energy efficiency in public buildings is understood as the ability to provide the same (or higher) level of energy services, such as thermal comfort, high-quality lighting, hot water supply etc. at lower energy consumption and cost. Energy efficiency is increased by investing in improvements in the design and the technology used in the building.

As one of the ways to facilitate increasing investments in energy efficient retrofits in municipal and other public buildings the Project commenced and continues to develop a Project-Supporting Platform (PSP). The PSP envisages providing different forms of expert support (including feasibility studies for energy efficient projects in public buildings) for partner municipalities which in turn encourage municipalities to play a greater role in improving energy efficiency of public buildings with the obligatory condition of compliance with the requested sanitary and hygienic standards for the people stay indoors and to apply new financial and organizational ESCO supporting models.

In order to ensure continued technical support of the Project Support Platform (PSP) during pilot projects preparation and implementation within the Project’s framework and to satisfy requests for feasibility studies from partner municipalities or other Ukrainian cities, when accepted by the Project, UNDP invites national candidates to send their applications for the POSITION OF FEASIBILITY STUDY EXPERT for ENERGY EFFICIENCY PROJECTS IN PUBLIC BUILDINGS. The purpose of Feasibility Study in the project context is to confirm technical feasibility, to obtain accurate estimates of costs and savings and to justify the proposed energy efficient measures prior to entering into implementation. 

Duties and Responsibilities

MAIN OBJECTIVES OF THE ASSIGNMENT

The objective of the assignment is to perform feasibility studies in public buildings (schools, hospitals, kindergartens etc.) in Ukrainian cities upon request from municipal authorities to ensure that proposed energy efficiency measures will serve the aims of energy efficiency, economic, social and environmental targets set by respective public authorities.

These targets can include, but not limited to: achieving energy efficiency over a defined percentage, reducing primary energy demand (including from fossil fuels), reducing heating costs, increasing renewable energy sources, adopting high-efficiency technological systems available in the market, improving energy balance at urban level, reducing GHG emissions, ensuring indoor thermal comfort etc.

ENERGY EFFICIENCY FEASIBILITY STUDY

The  feasibility  study  (FS)  aims  to  objectively  and  rationally  uncover  the  strengths  and weaknesses of the  existing  business or proposed  opportunities  and threats  as presented by the  environment, the resources required to carry through, and ultimately the prospects for success. The results determine whether the solution should be implemented. 

The FS framework described in the document evaluates and analyses the potential impact of  a public  heating  project to  found  out  if  the  project  will complies  PA  energy  efficiency aims and if the project will work successfully. The evaluation of the feasibility study determinates whether the project can be operated in a sustainable, economical and environmental way.

The feasibility study consist of:

1) technical feasibility study

2) economic and financial analysis

3) social and environmental sustainability analysis.

DESCRIPTION OF RESPONSIBILITIES / SCOPE OF WORK

Under the overall supervision of the Project Manager and the direct and guidance of the team’s Buildings Engineer, Feasibility Study Expert is to conduct feasibility studies and develop feasibility study reports for selected public buildings throughout Ukraine  to determine technical viability and justify the choice of technical solution proposed by energy audit, determine the cost, duration, economic/environmental/social benefits and risks of the proposed energy efficiency measures. Main deliverables under this assignment are feasibility study reports. 

Feasibility study could consist of:

1. Technical feasibility study;
2. Economic and financial analysis;
3. Social and environmental sustainability analysis;
4. Preparation of municipal projects proposals;
5. Facilitation in obtaining investments and/or financing for the projects proposed.

The consultant will be primarily responsible for conducting feasibility studies and issuing feasibility study reports. His/her duties will include but not limited to:

• Preliminary contact with a municipality (and/or an asset holder entity – e.g. municipal department of education or health care etc.) to agree on the site, aims and scope.
• Collect and review relevant documents and reports related to the purpose of the assignment (e.g. audit report, existing operational characteristics of the building, documentation and management practice, energy performance situation).
• Undertake technical feasibility analysis to check every condition for the realization, installation, maintenance of proposed new equipment; consider technical features of proposed new equipment and necessary retrofits.
• Undertake economic and financial analysis to assess suitability and cost effectiveness of the proposed technical solution.
• Undertake social and environmental sustainability analysis, including recommendations on specific aspects related to implementation of green practices in project design, social aspects related to indoor comfort and gender.   
• Identify and recommend the technology and skills training required to implement the identified feasible project and/or to maintain the proposed equipment.
• Seek links with the existing municipal Sustainable Energy Action Plans.
• Develop feasibility study report based on the key findings and recommendations, including those raised by stakeholders (UNDP Project and representative of municipality) during the consultation process.
• Present findings of the feasibility study to relevant stakeholders and based on the feedback received, make any further revisions necessary to improve and finalize the key outputs.

Summary of the feasibility study:

Technical feasibility study

Coould be based on existing energy audit report for the building. It contains a brief description of the current situation; key existing factors; consider proposed (or different) technical options, determines technical viability, analyses and justifies possible solutions to existing issues in line with energy efficiency targets.

Energy-related calculations should be based on Ukrainian building code. The Consultant shall consider specific regulations that may apply to operation of the equipment and include reliability/safety analysis.

Economic and financial analysis

Based upon the technical feasibility study, a preliminary cost estimation should be developed which includes all project expenditures and revenues. The Consultant shall check the cost and benefits related to as regard:

• Investment costs, access to credit, amortization, free grants;
• Ordinary and extraordinary maintenance costs;
• Consumption-related cost (fuels costs, electricity costs, etc.);
• Operating costs, both short-term and long-term (personnel cost, spare parts, insurance etc.);
• Avoided costs (for example when a proposal cuts down heating fuel consumption);
• Revenues (for example when a proposal guarantees revenues with the sale of electricity/heat to other customers).

The financial sustainability assessment of the project should be based on the cash flow analysis.

?Social and environmental sustainability analysis

• The Consultant should consider the environmental and social costs and benefits of the proposed energy efficiency project, including but not limited to:
• Indoor comfort;
• Avoided GHG emissions;
• Emission (e.g. emissions due to the biomass combustion);
• Other produced/avoided impacts (for example, increase or cut of noise and vibration);
• Waste management;
• Job creation.

DELIVERABLES

In line with the above scope of work, each Consultant is expected to produce  up to 3 feasibility study reports as per requests from municipalities/ state authorise/ Project. The IC should start working on the report only upon receiving a formal request from the Project.

Deliverable #	Task description	Due date	No of man/days
Deliverable #1	Feasibility study report 1	4 months from IC signature	20
Deliverable #2	Feasibility study report 2	8 months from IC signature	20
Deliverable #3	Feasibility study report 3	12 months from IC signature	20

The FEASIBILITY STUDY REPORT should address at a minimum the following (where possible):

1. Title Block: Describes the customer, the location and the facility type; provides contact information.

2. Project Information: Summarizes the proposed project.

3. Technical feasibility description: Includes proposed measures descriptions (multiple measures may be grouped if they involve similar equipment and would be implemented as a package such as lighting upgrade for an entire facility).

3.1. Existing Conditions: Describes the existing equipment or system that is to be upgraded or replaced. Describes input or output capacities if needs be, other relevant data (remaining useful life of the equipment to be replaced, operating conditions etc.)

3.2. Recommendations: Describes the equipment and technical solutions considered for energy efficient measures. This section should prove technical feasibility of the recommended technical option(s).

• Savings estimates should be quantified separately for each measure
• Assumptions should be clearly indicated and supporting data provided
• Calculations should be documented and explanation provided to the methodology used
• Calculation results should be clearly labeled
• Units of measure should be indicated as appropriate
• Variations in equipment loading (hourly, daily, weekly, seasonal, etc.) should be accounted for
• Degradation of equipment efficiency (if any) over its useful life should be accounted for
• Other benefits (non-electricity related costs savings, for example reduced water consumption, increased reliability/productivity, reduced maintenance) should be accounted for

4.Economic and financial analysis: Summarizes the costs and benefits of the proposed energy efficient measures. Includes brief explanation how the savings and costs were determined (e.g. engineering calculations, manufacturer’s equipment performance datasheets, etc.), electricity/gas savings per year, other benefits per year, cash flow analysis.  

5. Social and environmental sustainability analysis: Summarizes various social and environmental-related benefits and risks to the customer.

6. Implementation schedule

7. Finance options

8. Compliance of proposed measures to existing national/regional/municipal programs and energy plans.

9. Annexes: Includes detailed calculations of costs and savings, manufacturer’s equipment performance data sheets, digital photos, reference documents, other information as necessary to support the conclusions of the report.

METHODOLOGY

The Consultant will report to the Project Manager and will work closely with representatives of Ukrainian municipalities (public assets holder entities).

It is expected that the Consultant will sufficiently resource himself/herself in carrying out the assignment (it shall be included in the Financial Proposal).

IMPLEMENTATION ARRANGEMENTS, monitoring/REPORTING requirements

• The Consultant will be responsible for the delivery, content, technical quality and accuracy of the feasibility study report(s).
• At UNDP side the contract implementation will be coordinated and supervised by the Energy and Environment Programme Team Leader/Project Manager and the Consultant will be responsible to obtain his clearance of feasibility study report(s).
• Any copyrights and other kinds of intellectual property emerging in the course of contract implementation and produced by the Consultant under the contract shall be retained by UNDP.

TERMS OF PAYMENT

Payments under this contract are to be made after acceptance of feasibility study report by UNDP and the municipality representative, upon submission of invoice indicating short description of tasks performed.

Competencies

• Ability to take initiative
• Excellent communication (both oral and written) skills
• Demonstrated analytic capacity and ability to synthesize relevant collected information and findings
• Builds strong relationships with clients, focuses on impact and result for the client and responds positively to feedback,
• Consistently approaches work with energy and a positive, constructive attitude,
• Remains calm, in control and good humored even under pressure.

Required Skills and Experience

Education:

• Bachelor’s degree in Engineering (energy-related or construction-related fields), Economics, Finance, Environmental studies or other relevant field.
• Master’s degree will have an advantage.

Experience:

• At least 4 years of relevant professional experience in conducting feasibility studies for energy-related projects. International experience will be an advantage.

• A minimum of 4 years of working experience within companies providing services related to development of feasibility studies, design documentation, development and execution of energy efficiency projects, yielding energy savings, construction or other closely related activities. ?
• Demonstrated experience in economic analysis, cost benefits analysis (cash flow analysis), environmental/social impact analysis.
• Experience in designing technical and funding proposals / design or EE project documents.
• Experience with the ESCO business model will be an advantage.
• Excellent command of office software, such as word processors and spreadsheets.
• Excellent analytical, communication, writing and reporting skills.
• Experience with energy management projects for local government in Ukraine will be an advantage.

Language Proficiency:

• Fluency in writing/speaking Ukrainian;
• Fluency in writing English will be an advantage.

DOCUMENTS TO BE INCLUDED WHEN SUBMITTING THE PROPOSALS

Applicants shall submit the following documents:

Required            

Personal CV, including information about past experience in similar projects / assignments and contact details for referees.

Financial proposal.

Duly accomplished Letter of Confirmation of Interest and Availability using the template provided by UNDP

FINANCIAL PROPOSAL

Lump-Sum based on Delivery of Outputs

The financial proposal shall specify a lump sum amount per 1 carried report. In order to assist the requesting unit in the comparison of financial proposals, the financial proposal will include a breakdown of this amount and number of anticipated working days.

Travel costs

Travel within Ukraine (if needed to deliver expected results) will be paid in addition to this payment for service in accordance with the UNDP rules and procedures. Consultations regarding travel options will be held with the Project Manager prior to planning of the trips and relevant logistics.

In the case of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and the Contractor, prior to travel and will be reimbursed. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the Contractor wish to travel on a higher class he/she should do so using their own resources.

EVALUATION OF APPLICANTS

Selection method: Selection based on pass/fail basis of below criteria and lowest price technically compliant offer.

Evaluation criteria   

• Bachelor’s degree in Engineering (energy-related or construction-related fields), Economics, Finance, Environmental studies or other relevant field - pass/fail
• At least 4 years of relevant professional experience in conducting feasibility studies for energy-related projects. International experience will be an advantage. - pass/fail
• A minimum of 4 years of working experience within companies providing services related to development of feasibility studies, design documentation, development and execution of energy efficiency projects, yielding energy savings, construction or other closely related activities. - pass/fail
• Demonstrated experience in economic analysis, cost benefits analysis (cash flow analysis), environmental/social impact analysis. - pass/fail
• Experience with the ESCO business model- pass/fail
• Experience in designing technical and funding proposals / design or EE project documents. - pass/fail