The National Automotive Council (NAC)
(Federal Ministry of Commerce and Industry)
Public Private Partnership (PPP) Project for the Development of Mechanic’s Villages Consultancy for the Preparation of an Outline Business Case
Request for Expressions of Interest
For over two decades, many State Governments have provided land for mechanic’s villages. However, few have been developed and provided with all necessary infrastructure with the result that most car repair is done in the open with inadequate tools and equipment. Accordingly, the National Automotive Council wishes to partner with the State Governments, the mechanics and other stakeholders to encourage private sector participation in the design, financing, constructing, operation and maintenance of selected Mechanic Villages through concessions or other contractual arrangements. The main objective of selected Mechanic Villages through concessions or other contractual arrangements. The main objective of this intervention is to ensure prompt and efficient repair of vehicles, while ensuring the safety of the mechanics and protection of the environment.
The procurement of the new facilities will follow the National Policy on Public Private Partnership (PPP) published by Nigeria’s Infrastructure Concession Regulator, Commission (ICRC) and World Bank Guidelines. This policy requires, as part of the project preparation phase, that an Outline Business case (OBC) is prepared and approved before the start of a procurement phase.
The Consultant is required to prepare an OBC for mechanic’s villages in accordance with the National Policy. The OBC will examine the technical and financial viability of the project, and the associated risks, and analyze a number of funding options for mechanic’s villages in at least six locations across Nigeria.
Scope of Work
The main objective of this consultancy is to establish the technical, economic, and financial viability of the mechanic villages as PPP projects, through the OBC Among the tasks involved in the generation of the OBC are:
- In consultation with at least six State Governments identify potential sites
- Quantify the demand for such facilities and describe the type of facilities and equipment that should be provided, in consultation with potential users and other stakeholders.
- Propose options for charging for the use of the facilities and any common services, and develop a financial model to analyze costs and revenues, including likely financing costs, of input assumptions and calculate key rations and internal rates of return;
- Propose the term of any concession agreement and the allocation of project risks between the parties (including State Governments), with a proposed payment mechanism. Identify any legal issues or constraints that would need to be resolved.
- Provide a high-level review of the project’s commercial and economic rationale, desirability, and policy context
- Options analysis- If the project is found to be suitable for PPP, presentation of the range of technical, legal and financial options for structuring PPP transaction(s), particularly in relation to the size and scope of services provided at each village
For each PPP business option, the following tasks are required:
- Cost estimation- preliminary project costing, including expected capital outlays such as construction and ongoing maintenance costs, as well as a discussion of non-quantifiable costs;
- Preliminary assessment of social and environmental impacts of the project, highlighting likely major impacts that have been addressed in option development/assessment
- Thorough market analysis, project demand and revenue forecasting
- Development of a preliminary financial model to carry out the initial PPP screening to determine which projects can support a tariff and which cannot, and ultimately suitability for PPP execution. The consultant should prescribe a methodology to differentiate fully self-supporting tariff projects from those likely to require subsidy (capital grant and/or availability payment/revenue guarantees) and those likely to be fully publicly financed. The financial model will evaluate full project life costs, affordability limits, risks and their costs and optimal value for-money methods of delivery
Submission of Expressions of Interest (EOIs)
Prospective Consultants should submit an. Expression of interest detailing the following information as basis for pre-qualification:
- Profile of firm /consortium including ownership structure and role of each corporate entity with full contact details of lead firm.
- Details of direct experience advising governments on providing outline business cases (OBC) and structuring of PPP transactions;
- Relevant experience including technical competence in social and/or educational infrastructure service delivery;
- Experience working in Nigeria and/or sub-Saharan Africa
- Certified true copy of certificate of Incorporation
- 3 years of audited accounts and a certified copy of 3years tax clearance certificate.
- Evidence of VAT relevant procedures set out in the World Bank Guidelines Selection and Employment of Consultants by World Bank Borrowers, January 1997 (Revised September.
The Consultant will be selected in accordance with the procedures set out in the World Selection and Employment of Consultants by World Bank Borrowers, January 1997 (Revised S 1997, January 1999, May 2002, May 2004 and October 2006) using QCBS.
Expressions of Interest must be submitted in six (6) copies in a sealed envelope clearly marked “EXPRESSIONS OF INTEREST FOR OBC TRANSACTION ADVISER FOR NAC” A CD ROM version should also be included.
The Expression of Interest should be addressed and delivered on or before 11th November 2010 of this notice to the DG’s office as addressed below;
The Director-General,
National Automotive Council (NAC),
23, Parakou Crescent Wuse II, P.M.B 320, Garki, Abuja
Signed:
Management, NAC
Interested applicants may obtain further information at the address above from 8.00am to 5.00 pm, Monday through Friday (except public holidays)
Only short-listed Consultants will be contacted.
Expression of interested through email or fax will not be entertained.
