Inventory of EMAE's Assets — Energy Sector Recovery Project, Sao Tome and Principe

República Democrática de São Tomé e Príncipe

(Unidade – Disciplina – Trabalho)

MINISTÉRIO DAS FINANÇAS, COMÉRCIO E DA ECONOMIA AZUL

Agência Fiduciária e de Administração de Projetos

Projeto Recuperação do Setor de Energia

REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – FIRM SELECTION)

SÃO TOME AND PRINCIPE

POWER SECTOR RECOVERY PROJECT

Grant No.: IDA-D1260

Assignment Title: Consulting Services for Inventory and Valuation of Empresa de Água e Eletricidade de S. Tomé e Príncipe

Reference No. 33/C/PSR/2018

The Democratic Republic of São Tomé and Príncipe has received financing from the World Bank toward the cost of the Power Sector Recovery Project and intends to apply part of the proceeds for consulting services, one of them been the Consulting Services for Inventory and Valuation of Empresa de Água e Eletricidade - EMAE. The Company's Management intends to improve the available information regarding both the state and the value of its fixed assets, as well as the inventory and cross-referencing with the accounting records, as an element of a reliable management information. On the other hand, Management considers that for transparency and better result, the inventory and valuation exercise should be carried out using an external and independent consultant. Therefore, the consulting services (“the Services”) to be procured include, but not limited to

• Physical count and valuation of all electrical and mechanical assets (excluding meters)

• Physical count and valuation of all EMAE Buildings

• Physical count for all assets included in the lot and affixing barcode or similar optical or electronic labels

The total staff input is estimated to be in the range of thirty (30) man-months. Such estimate is based on combined foreign and local pooling of key staff resources for the different project components. Based on competences of the proposed staff, geographical distances between the various sites, the Consultant shall however make its own assessment regarding staffing input.

The project will be implemented over a period of 04 (four) months up to Delivery of the Final Assignment Completion Reports to be approved by EMAE and possibly by the Project financiers. The consultancy service is estimated to start first week of September, 2018.

The detailed Terms of Reference (TOR) for the assignment are attached to this request for expressions of interest.

The Fiduciary Administration Project Agency - AFAP now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The shortlisting criteria are:

• 5 years of proven work experience on the valuation and inventory area, in firms of the same, or similar, industry and dimension as EMAE

• Working experience in the country or similar African countries

• Have at least 7 years of relevant work experience

• The staff performing the consulting service must be fluent in Portuguese

The attention of interested Consultants is drawn to Section III, paragraphs, 3.14, 3.16, and 3.17 of the World Bank’s “Procurement Regulations for IPF Borrowers” July 2016 (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest.

Consultants may associate with other firms to enhance their qualifications but should indicate clearly whether the association is in the form of a joint venture and/or a sub-consultancy. In the case of a joint venture, all the partners in the joint venture shall be jointly and severally liable for the entire contract, if selected.

A Consultant will be selected in accordance with the Consultant Qualification Selection (CQS) method set out in the Procurement Regulations.

Further information can be obtained at the address below during office hours 09:00h – 12:00h to 14:00h-17:30h (local time), from Monday to Friday.

Annexe I to VI can be obtained in the same adress below or requested by email ([email protected] or [email protected]).

Expressions of interest must be delivered in a written form to the address below (in person, or by mail, or by e-mail) no later than 08 August, 2018 by 17:00h (local time).

Agência Fiduciária de Administração de Projetos

Attn: Alberto Leal, The Coordinator

Caixa Postal 1029, Av. Kwame N’Krumah

Edifício do Afriland First Bank, 2º andar

S. Tomé,

S. Tomé e Príncipe

Tal.: + 239 222 52 05

E-mail: [email protected]

[email protected]

Annex1: Terms of Reference

Annex 1

TERMS OF REFERENCE (TOR)

for

Consulting Services for inventory and valuation of Empresa de Agua e Eletricidade de S. Tomé e Príncipe, E.P.

Financed by the World Bank

33/C/PSR/2018

S. Tomé, July 2018

• INTRUDUTION

1.1. Framework

The Water and Electricity Company was created since the 80's of last century. The Company received assets such as power plants, Substations, transformer posts, buildings, water reservoirs, LV and MV networks, vehicles and many other assets.

Over years to date, the company has benefited from various investments in all areas, both in potable water as electricity. The Company has never performed an inventory worthy of this name, making it unaware of the existing patrimony.

For this reason, an inventory is necessary because many of the company's assets date back to long years and on the other hand there are many recent assets.

Because of the reasons stated above, the Company's Management intends to improve the available information regarding both the state and the value of its fixed assets, as well as the inventory and cross-referencing with the accounting records, as an element of a reliable management information. On the other hand, Management considers that for transparency and better result the inventory and valuation exercise should be carried out using an external and independent consultant.

It is in this context that EMAE intends to contract the services of a consulting firm with the Terms of Reference (TOR) containing the basic elements that will guide the selection process of Companies with proven experience in this type of exercise, and ensure the delivery of high technical quality result, applying internationally accepted techniques, as well as the rigor, confidentiality, exemption and objectivity essential for the desired outcome.

• The Country

The Democratic Republic of Sao Tome and Principe (Sao Tome and Principe), Annex I, is a small island State comprising two main volcanic islands and several islets, located off the west coast of Africa, in the Gulf of Guinea. São Tomé, the largest island, covers an area of 859 km² and has around 180,000 inhabitants. Principe Island, situated 150 km to the north, covers about 142 km² and has around 7,500 inhabitants. The country is divided into six districts (Agua Grande, Cantagalo, Caué, Lembá, Lobata and Mé-Zóchi), as well as the autonomous region of the Principe, which has been self-governed since 1995.

While the country achieved independence in 1975, democratic reforms were not instituted until the late 1980s. In 2014, Sao Tome and Principe ranked 143 out of 188 countries in the United Nations Development Program’s (UNDP) Human development index, higher than the average in sub-Saharan Africa.

However, the country has a high poverty rate. One third of the population lives on less than us $1.90 per day, in Purchasing Power Parity (PPP) terms and more than two-thirds of the population are poor, using a poverty line of US$3 per day. In terms of WB/IMF classification, Sao Tome and Principe is a middle-income country with a gross domestic product per capita estimated at 1,200 US dollars in terms of PPP; while the gross domestic product (GDP) per capita is 1,692 US dollars. The goods and services of Sao Tome and Principe come from the primary sector, while those from the industrial sector are almost totally nonexistent. The main economic activities of the country involve tourism, retail, transport, communications and construction. Despite their modest contribution to GDP, agriculture and fisheries are the mainstay for most of the population.

• Empresa de Agua e Eletricidade de S. Tomé e Príncipe (EMAE) – A Power Utility Company

The power sector in Sao Tome and Principe is small. The electricity supply is limited. In early 2016, EMAE interconnected generation assets in Sao Tome Island, including four diesel thermal power plants (São Tomé, Santo Amaro and Bobo-Forro 1 and 2) and two hydropower plants (Contador and Guégué). Most thermal generators have very low efficiencies, leading to very high fuel consumption. In addition, some old power plants, such as São Tomé and Bobo-Forro 1, have low availability factors (for example, 43.7 percent for Bobo Forro1) and are also highly unreliable.

The electricity coverage in Sao Tome and Principe extends to only about half of the population. Electricity access is more widespread among non-poor families (58.3 percent) than the poorer families (47.5 percent).

While there is no available data on the average duration or number of power supply interruptions, service quality is widely acknowledged as unreliable and extensive outages are frequent, especially during periods of peak demand. The limited electricity supply, even to those connected to the grid leaves only privately-owned diesel or