Request for proposals: Institutional consultancy: Feasibility assessment of 50 potential sites in Nepal for lift irrigation system to utilise power generated from micro-hydro plants

About ICIMOD

The International Centre for Integrated Mountain Development (ICIMOD) seeks to enable sustainable and resilient mountain development for improved and equitable livelihoods through knowledge generation and regional cooperation.

ICIMOD is a regional intergovernmental learning and knowledge-sharing centre serving the eight Regional Member Countries of the Hindu Kush Himalaya (HKH): Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal, and Pakistan. Working in partnership with regional and international organisations, ICIMOD aims to influence policy and practices to meet environmental and livelihood challenges emerging in the HKH. ICIMOD provides a platform for researchers, practitioners, and policy makers from the region and around the globe to generate and share knowledge, support evidence-based decision making, and encourage regional cooperation.

About the REEECH Initiative

The Renewable Energy and Energy Efficiency Capability for the Hindu Kush Himalaya (REEECH) Initiative functions as a regional hub and think-tank with a mountain focus under the umbrella of the Global Network of Regional Sustainable Energy Centres (GN-SEC) to accelerate universal energy access in the HKH region and to place mountain energy issues prominently on the global sustainable development and climate agenda.

REEECH provides a coordination mechanism to foster South–South cooperation for improved access to decentralised sustainable energy solutions for HKH communities and actively promotes the scaling up of climate-resilient sustainable energy markets, industries, and innovation customised for the off-grid mountainous areas of the HKH.

The initiative will strengthen adaptation and resilience-building solution packages by identifying options for green agriculture and tourism value chains, promoting inclusive and diversified enterprises and jobs, and enhancing wellbeing.

About the request for proposals

ICIMOD’s REEECH Initiative is issuing this request for proposals for an institutional consultancy to conduct a feasibility assessment of 50 potential sites in Nepal for lift irrigation system to utilise power generated from micro-hydro plants (MHPs).

SECTION I – Bidding process

• The closing date for the submission of this tender is 4:00 PM (Nepal Standard Time), 22 July 2022.
• Proposals should include all costs in Nepali rupees, a timeline for the execution of the project, and a breakdown of durations for each assignment.
• Proposals will only be received on or before the closing date.
• Please submit your proposal with supporting documents.
• Please submit questions related to the proposal to avishek.malla@icimod.org, with a copy to ujala.rajbhandari@icimod.org

Important dates

• Deadline for preproposal inquiries: 20 July 2022
  (Any inquiries after the date will not be entertained.)
• Proposal submission deadline: 22 July 2022
• Evaluation announcement: 5 August 2022(tentative)
• Finalisation of contract: 14 August 2022 (tentative)

Bidding process

• The interested bidders are requested to submit their bid proposal preferably in a sealed envelope addressed to the ICIMOD Procurement Office by 4:00 PM (Nepal Standard Time), 22 July 2022. The bid should include copies of the following:
  • Company registration certificate
  • Tax registration certificate (i.e. VAT/PAN registration)
  • Experience of similar work as defined in the ToR
  • Latest tax clearance certificate
  • Bid validity period
  • Payment terms

• The bidder shall quote the item rates as applicable for the work in a formal quotation with signature and stamp.
• The bidder should indicate applicable VAT in the bid.
• ICIMOD reserves the right to accept or reject any or all bids without giving any reason whatsoever.
  

SECTION II – Terms of reference

Terms of reference (ToR): Identifying potential sites for lift irrigation using power from existing micro-hydro plants in rural Nepal

About ICIMOD

The International Centre for Integrated Mountain Development (ICIMOD) seeks to enable sustainable and resilient mountain development for improved and equitable livelihoods through knowledge generation and regional cooperation.

ICIMOD is a regional intergovernmental learning and knowledge-sharing centre serving the eight Regional Member Countries of the Hindu Kush Himalaya (HKH): Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal, and Pakistan. Working in partnership with regional and international organisations, ICIMOD aims to influence policy and practices to meet environmental and livelihood challenges emerging in the HKH. ICIMOD provides a platform for researchers, practitioners, and policy makers from the region and around the globe to generate and share knowledge, support evidence-based decision making, and encourage regional cooperation.

About the REEECH Initiative

The Renewable Energy and Energy Efficiency Capability for the Hindu Kush Himalaya (REEECH) Initiative functions as a regional hub and think-tank with a mountain focus under the umbrella of the Global Network of Regional Sustainable Energy Centres (GN-SEC) to accelerate universal energy access in the HKH region and to place mountain energy issues prominently on the global sustainable development and climate agenda.

REEECH provides a coordination mechanism to foster South–South cooperation for improved access to decentralised sustainable energy solutions for HKH communities and actively promotes the scaling up of climate-resilient sustainable energy markets, industries, and innovation customised for the off-grid mountainous areas of the HKH.

The initiative will strengthen adaptation and resilience-building solution packages by identifying options for green agriculture and tourism value chains, promoting inclusive and diversified enterprises and jobs, and enhancing wellbeing.

About the work

Micro-hydro plants (MHPs) are one of the first electrification technologies to be promoted in Nepal, with a history dating back over a century. Over 3,000 MHPs provide electricity to almost a million citizens in rural Nepal. In 2019, the total installed capacity of MHPs across the country was 32.2 MW.

Though MHPs have been instrumental in rural electrification, studies have shown that they are underutilised in Nepal. MHPs are operating with plant load factor less than 26%[1], due to which these plants often face operational problems as they are unable to recover enough revenue to cover operation and maintenance costs. However, this also presents opportunities to utilise the energy for various productive end-use applications.

The Alternative Energy Promotion Center (AEPC), Government of Nepal, has identified the following key areas of interest to collaborate with ICIMOD for promoting productive energy use in MHPs and help the Government of Nepal in formulating an appropriate long-term programme, evidence-based planning, and strategy development:

• Identify potential opportunities for the promotion of productive end use – pumping system for irrigation and drinking water from existing micro-hydro sites in Nepal
• Pilot implementation of irrigation and drinking water projects through utilisation of electricity from existing MHP sites to improve the agriculture productivity of rural areas in Nepal, hence improving the resilience and livelihood of the people
• Prepare a digital aggregation platform, mapping micro-hydro projects to demonstrate productive end-use opportunities in those areas, for project prefeasibility decision support and planning

With these activities, the AEPC will acquire evidence and information necessary for the formulation of policy and guidelines and for scaling up the programme. ICIMOD will provide support in the identification of potential MHP sites for lift irrigation systems. Further, the identified potential sites will be mapped out in the REEECH energy dashboard serving as a digital aggregation platform which will have information necessary to take decisions. This platform will also serve as a basis to channelise information to the right partners and investors for funding and developing appropriate strategies, which will allow the implementation of projects to support adaptation efforts and build climate resilience in the HKH region.

Objectives

• Identify 50 potential sites that could be irrigated using power generated from existing MHPs and conduct detailed feasibility studies for at least three shortlisted sites
• The potential site will be mapped in the REEECH energy dashboard with the relevant technical, financial, and socioeconomic parameters. This will provide evidence for the Government of Nepal to formulate appropriate long-term programmes and strategies to optimally utilise the existing MHPs and future piloting and scaling activities.

Scope of work

The activity to be carried out under this assignment is stated as below:

1. Identification of 50 sites

• Develop evaluation criteria for the site selection. The criteria should include but not be limited to the following attributes:
  • Energy (affordability, reliability, compatibility, etc.)
  • Infrastructure (road access and transportation, communication, public services, etc.)
  • Market access and opportunity
  • Financial access
  • Command area, crop intensity, or agriculture production potential
  • Beneficiary population
  • Other relevant attributesAlong with the necessary data to investigate whether MHPs are fit for purpose, also required are intended application of energy, technical, socioeconomic, financial, and relevant impact indicators and estimated potential of green jobs.
• Thorough desk study, AEPC database review, and key informant interviews to collect the required information for identifying 50 potential sites for lift irrigation system in existing MHPs
• Create a list of 50 sites and shortlist at least three sites for detailed feasibility study with a special focus on cost optimisation for implementation of irrigation system in an MHP site

2. Site validation

Carry out a detailed feasibility study for three sites including:

• Technical analysis (design, estimations etc)
• Financial analysis (net present value, internal rate of return, profit loss statement, cashflows, balance sheet)
• Economic analysis (incremental and non-incremental benefits, cost–benefit analysis, EIRR)Including community readiness assessment (need assessment, willingness to pay, gender and social inclusion, etc.) and relevant implementation model.

Contract duration

The total project duration will be 60 days.

Deliverables and payment schedule

Requirements

An organisation with following capabilities:

• Must have undertaken at least five similar projects – carrying out detailed feasibility study for rural development projects (community irrigation, drinking water, electrification, etc.)
• Tax clearance letter for the last year fiscal year

The organisation must include the following human resources:

Team leader

A team leader with the following experiences:

• The team leader should have implemented at least seven similar types of projects as team lead and must have 5 years’ work experience
• Ability to lead detailed feasibility study in rural community energy projects
• Capability in site due diligence, developing relevant criteria using appropriate methodologies and tools
• Capabilities for conducting technical, financial, socioeconomic analysis in rural community energy projects
• A master’s degree in renewable energy, energy studies, rural development, or similar fields

Site auditors

Site auditors (two auditors) with the following experience:

• At least 2 years of work experience and must have audited three similar types of projects
• Demonstrated ability in preparing detailed feasibility reports on community irrigation systems
• At least one auditor with a bachelor’s degree in civil or agriculture engineering
• One auditor with a bachelor’s degree in mechanical or electrical engineering

Economist

Economist with the following experience

• At least 3 years of work experience and must have worked in three similar types of projects
• Demonstrated ability of preparing cost–benefit analysis on irrigation and drinking water systems or similar projects
• Master’s degree in economics

SECTION III – Proposal submission and evaluation

The service provider will be selected on the basis of the highest ranked technical proposal (60% weightage) and lowest cost financial proposal (40% weightage).

The service provider will be selected on the basis of the highest cumulative scores obtained in the technical and financial proposals using the following formula:

• Technical score = Score obtained based on technical proposal (total 100)
• Financial score = Score obtained based on financial proposal (total 100)
• Total score = 60% of technical proposal + 40% of financial proposal

The service provider scoring the maximum score based on the criteria will be awarded. However, the service provider should score at least 70 points in the technical proposal.

Contents of the proposal

Applicants must include the following sections in the technical proposal:

1. Technical approach and methodology

In this section, applicants should explain their understanding of the objectives of the assignment, approach to the services, and methodology to obtain the expected output.

2. Work plan

Applicants should propose the main activities of the proposal, content and duration, milestones, and delivery date. The proposed work plan should be consistent with the technical approach and methodology. Kindly propose a management and operation plan.

3. Organisation and experts

Applicants should propose the structure and composition of their team, mentioning their qualification and skills as requested in section II. Applicants should list the main discipline of the assignment, the key expert responsible, and proposed technical and support staff.

4. Relevant past experience

Applicants must include the past experience of their organisation and experts relevant to this request for proposals.

5. Financial bid

Applicants should provide the financial quote with the breakdown of all the costs and include the tax in the budget.

• Breakdown of the experts needed, number of days required, quantity, rate
• Breakdown of other costs, unit, quantity, rate

Refer to the Template attached in the email

*Technical proposals will be evaluated based on their responsiveness to the terms of reference, applying the evaluation criteria and point system specified.