Zambia
ITEZHI-TEZHI TRANSMISSION LINE PROJECT
DEVELOPMENT OF A COST-OF-SERVICE STUDY GUIDEBOOK FOR ZAMBIA
Energy Sector
Financing Agreement reference:
Project ID No: P-ZM-FA0-003
Date: 25 March 2024
The Energy Regulation Board (ERB) has received financing from the African Development Bank toward the cost of the Itezhi-Tezhi Transmission Line Project and intends to apply part of the agreed amount for this loan to payments under the contract for providing consultancy services for the development of a Cost-of-Service Study Guidebook.
The services included under this project are Develop guidelines (manual) that outlines how to undertake a comprehensive Cost of Service Study (CoSS). The Consultant shall develop a Guidebook containing step-by-step approach, including the theoretical underpinnings, in carrying out the various modules necessary for a comprehensive execution of ECOSS in order to arrive at final consumer tariffs that meet economic efficiency, sector viability and equity goals, as well as a roll-out program of periodic tariff adjustments. The Guidebook shall contain, Comprehensive Diagnostic Sector Review, List of Data Requirements, Medium to Long-term Electricity Demand Forecasts, Least-cost Expansion of the Supply Infrastructure, Determination of Economic Cost of Supply, methodology for estimation of Long-run Marginal Cost ( LRMC) of generation, average incremental cost (AIC) of transmission, and distribution and short-run marginal cost of energy , Outline the methodological approaches for the determination for each main class of consumer category, Life-line Tariff Mechanism, Assessment of Efficient Revenue Requirements of the Utility and Tariff Adjustment Roll-out.
The Energy Regulation Board (ERB) now invites eligible individual consultants to indicate their interest in providing these services. Interested consultants must provide information indicating that they are qualified to perform the services by submitting a cover letter and detailed curriculum vitae that aligns with the minimum qualification and experience outlined in the TERMS OF REFERENCE. The consultants on the shortlist will be evaluated and ranked based on the following criteria:
| Level of education in general | 10% |
| Multi-Disciplinary skills of engineering and Economics | 30% |
| Years of experience in general | 20% |
| Number of years of experience relevant to the mission | 40% |
| Total | 100% |
The minimum technical score required for the applicant to proceed to financial proposal evaluation and negotiations is 70%.
Following the detailed evaluation of Expressions of Interest (EOIs)/Curriculum Vitae (CVs), the financial proposal of the highest ranked consultant from those that will score 70% and above will be requested and negotiated. In case of unsuccessful negotiations with the highest ranked consultant, the financial proposal from the next highest ranked consultant would be requested and negotiated.
Eligibility criteria, establishment of the short-list and the selection procedure shall be in accordance with the African Development Bank’s “Procurement Framework for Bank Group Funded Operations” dated 2015, which is available on the Bank’s website at: https://www.afdb.org/en/projects-and-operations/procurement/new-procurement-policy.
A Consultant will be selected under the Individual Consultant Selection method.
Interested consultants may obtain further information and detailed Terms of Reference at the address below during office hours from 08:00 hours to 17:00 hours, Monday to Friday.
Expressions of interest must be delivered to the address below by Friday 12th April 2024 at 5PM and mention Consultancy to Develop a Cost-of-Service Guidebook for Zambia.
Attn: Energy Regulation Board
Brian Lombe
Manager – Procurement & Supplies
Plot No.9330 Danny Pule Road
Mass Media
P.O Box 37631
Lusaka
Tel: +260 211 258844-49
Facsimile (fax): +260 211 258852
E-mail: blombe@erb.org.zm