Invitation to Participate in IDCOL Biogas Program

REQUEST FOR EXPRESSION OF
INTEREST
For Selection of
Non-Governmental Organizations (NGO)/Micro-Finance
Institutions (MFIs)/ Private Entities for Implementation of:
IDCOL Biogas Program
Infrastructure Development Company Limited (IDCOL) UTC Building, Level – 16
8 Panthapath, Kawranbazar Dhaka-1215
April 2015
Infrastructure Development Company Limited (“IDCOL”)
1
Section 1: Invitation to Participate in IDCOL Biogas Program
IDCOL is a public-private institution promoting economic development in Bangladesh by
encouraging private sector investment in infrastructure, renewable energy and other eco-friendly
sectors. IDCOL seeks applications from non-governmental organizations (“NGOs”)/ microfinance institutions (“MFIs”)/ private entities working mainly in Chittagong and Sylhet divisions
for selection as Partner Organizations (hereafter referred to as “POs”) under its Biogas Program.
To accelerate the dissemination of domestic biogas plants across Bangladesh for fulfilling basic
energy requirements in the rural areas as well as maintaining the fertility of soil, IDCOL intends to
select new POs from organizations mentioned above which have successful track records of doing
businesses and/or micro-credit operations, and are interested to participate in construction,
maintenance and financing of Biogas Plants.
IDCOL has a target of financing 100,000 biogas plants by 2018 of which 37,700 biogas plants
have been constructed under the program up to March 2015.
IDCOL will provide investment subsidy for and technical assistance, as applicable, sourced from
the KFW, World Bank and other development partners to POs for implementation of the project.
Interested organizations are requested to download complete application package from
http://idcol.org/ or http://idcol.org/home/notice . Application package may also be collected from
IDCOL office at a cost of Taka 500/- (non-refundable). Completed applications must be submitted
to the address mentioned below before 4:00 p.m. on 13 May 2015.
Applications will be evaluated by an independent evaluation committee in accordance with the
criteria described in the application package. Selected POs will be required to sign Participation
Agreements with IDCOL. IDCOL reserves the right to accept or reject any application without
assigning any reason.
Please contact:
Infrastructure Development Company Limited
UTC Building, Level – 17,
8 Panthapath, Kawranbazar, Dhaka-1215.
Phones: 9102171-8 (Ext. 265 or 252)
Fax: 8116663
E-mail: [email protected]
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An Overview of IDCOL Biogas Program
In Bangladesh the average cooking requirement per family per day is estimated to be 5 hours in
rural households. Each household needs about 3 tons of biomass per year for cooking purposes.
Assuming that 55 percent of households use biomass for cooking, about 40 million tons of biomass
fuel will be required every year for cooking alone. Supply of such large quantity of biomass can
have high pressure on the forest. Besides it will also cause indoor air pollution, as biomass smoke
is considered to be a major source of public health hazard, particularly to the poor and vulnerable
women and children. Use of agriculture residues and animal waste for cooking purposes rather
than for its use as an organic fertilizer has adverse effect on maintaining the soil fertility, thereby
reducing crop production and productivity of land.
In order to prevent further environmental and agricultural deterioration, it is imperative to promote
biogas as a sustainable and clean source of energy in Bangladesh. Biogas needs only cattle dung/
poultry droppings and water, which is commonly available in the rural households of Bangladesh.
The materials used for the construction of biogas plant are bricks, sands, aggregates, cement and
pipes, which are locally available. Any local literate person with some training can easily construct
a biogas plant. Most of the appliances necessary for the biogas plant can be locally produced in
Bangladesh. Operation and maintenance is very easy and any person with one day training can
operate and maintain the plant easily. Once plant is constructed, it can produce gas for more than
25 years without major problem. After 4 years of construction, the total investment on biogas plant
can be returned and after that one can get gas free of cost for years and years. The slurry, residual
product of biogas, can be used as very good organic fertilizer, which eventually maintain the soil
fertility and increase crop production. Biogas is a clean energy and reduces the carbon (CO2)
emission because it is smokeless which is very good for environment.
IDCOL with the support of SNV Netherlands, KFW and World Bank is implementing the IDCOL
Biogas Program from 2006 and constructed 37,700 biogas plants through its partner organizations
so far. This program has a plan to construct 100,000 biogas plants by the end of 2018.
A fixed dome design biogas plant will be promoted under this program. The design will be
basically two types; a) design for cattle dung and human excreta, and b) design for poultry
droppings. Each design will have 6 sizes of different capacities. These sizes will be 1.2, 1.6, 2.0,
2.4, 3.2 and 4.8 m3 gas production capacity. The gas produced from the last size will be used for
multiple houses whereas other sizes will be used for single household. Biogas is mainly used for
cooking but also can be used for lighting as well.
Recently IDCOL has also conducted a pilot project based on fiberglass biodigesters. IDCOL is
also in the process of conducting more pilot projects on prefabricated models.
Under this program IDCOL will provide BDT 13,500 as investment subsidy for brick cement
based models to the POs who construct biogas plants as per the specifications and standard set by
IDCOL. IDCOL will also extend loan to household through POs up to 80% of the cost of biogas
plants at a concessionary rate after deducting 15% down payment from household.
For detail information one can visit the website www.idcol.org or http://idcol.org/home/dbiogas
3
Design of Biogas Plant (without dimension)
IDCOL Biogas Plant Model-Bangladesh
(All dimensions are in centimeter)
4 cm dia pipe
10.0
62.0
60.0
Main Valve
40.0
15.0
7.5
7.5
10.0
6.0
C5
HH
DH
HT
10.0
Slurry Pit
7.5
P2
P1
60°
C4
HD
HP
60.0
RD
30.0
HB K
7.5
Inlet for human waste
A
Fertilizer
Pit- A1
Inlet
tank
60.0
60.0
Digester
A'
Hydraulic
Chamber
Fertilizer
Pit- A2
4
62.0
DH
DD
PLAN
DD=Diameter of the digester
RD=Radius of the digester
HB= Height of Bottom dome of digester
HD=Height of the cylindrical portion of the
digester
HT=Height of the Top dome of the digester
P1= Radius of curvature of top dome
P2= radius of curvature of bottom dome
DH= Diameter of the Hydraulic chamber
HH=Height of the Hydraulic Chamber
L= Length of the slurry pit
B= Width of the slurry pit
H=Height of the slurry pit
HP= Height of outlet passage
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Section 2: Information to NGO/MFI/Company
1.
Introduction
1.1
The Infrastructure Development Company Limited (IDCOL) will select POs in
accordance with the selection criteria specified in section 3.
1.2
The NGO/MFI/Company is invited to submit a Business Plan for the assignment named
in section 3. The Business Plan will be the basis for selection of the PO and IDCOL will
ultimately sign Participation Agreement with the selected organization. Once the
agreement is signed, activities of the NGO/MFI/Company shall be governed according
to the terms and conditions of the Participation Agreement.
1.3
The PO may submit Business Plan with any programme target they reasonably feel they
are capable to implement. However, this target may later be annually revised as per
provisions of the Participation Agreement.
1.4
Notably, (i) the costs of preparing the EOI including visits to IDCOL are not reimbursable as a direct cost of the assignment; and (ii) IDCOL is not bound to accept any of the
Business Plans submitted.
1.5
Government policy requires that NGO/MFI/Company provide professional, objective,
and impartial services and at all times hold IDCOL’s interests paramount, without any
consideration for future work, and strictly avoid conflicts with other assignments or
their own corporate interests. NGO/MFI/Company shall not be hired for any assignment
that would be in conflict with their prior or current obligations to other Executing
Agencies, or that may place them in a position of not being able to carry out the
assignment in the best interest of IDCOL.
1.6
Without limitation on the generality of this rule, NGO/MFI/Company shall not be hired
for any assignment, which, by its nature, may be in conflict with another assignment of
the NGO/MFI/Company.
2.
Clarification and Amendment of EOI Documents
2.1
NGO/MFI/Company may request a clarification of any of the EOI documents up to the
number of days indicated in section 3 before the Business Plan submission date.
2.2
At any time before the submission of Business Plans, IDCOL may, for any reason,
amend the EOI. IDCOL may at its discretion extend the deadline for the submission of
Business Plans.
3.
Preparation of EOI Documents
3.1
NGO/MFI/Company is requested to submit the documents in English language.
3.2
In preparing the Business Plan, NGO/MFI/Company is expected to examine the
documents constituting this EOI in detail.
3.3
While preparing the Business Plan, NGO/MFI/Company must give particular attention
to the following:
(i)
It is desirable that the majority of the key professional staff proposed be permanent
employees of the NGO/MFI/Company or has an extended and stable working
relationship with it.
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(ii)
3.4
4.
Reports to be issued by the NGO/MFI/Company as part of this EOI shall be in
English language.
Institutional capacity
(a)
The institutional capacity of the NGO/MFI/Company should be described in
detail to adequately document the capability of the NGO/MFI/Company.
(b)
The composition of the organization’s professional and managerial staff and type
of staff, their qualifications and the tasks that are assigned to each staff team
member should be described in the Annex to Business Plan.
(c)
Curriculum Vitae (CV) of the Chief Executive Officer (CEO)/Executive Director
(ED) of the NGO/MFI/Company recently signed by the CEO/ED and the
authorized representative submitting the Business Plan. Key information should
include academic qualification, number of years working for the
NGO/MFI/Company and degree of responsibility held in various assignments
during the last five (5) years.
(d)
Financial management capacity and efficiency should be described with the
Business Plan highlighting the financial situation as reflected in the audit reports.
To demonstrate the financial management capacity, the Audit report of the last
three financial years and bank transaction statement of the same period should be
included with the Annex to Business Plan.
(e)
Organizational structure of the NGO/MFI/Company should be included in the
Business Plan in the Annex to Business Plan.
(f)
Familiarity with the proposed working area should be described and its
documentary evidence should also be attached to the Business Plan. This will
include maintaining of a regular office during project implementation in the
proposed working area and working experience in the area in any field.
(g)
Working experience with various government and non-governmental institutions.
Documentary evidence should be included in the Annex to Business Plan.
(h)
Integrated community development activities undertaken by the
NGO/MFI/Company specifically in the field of credit, skill training, health, and
nutrition, social development activities etc. may be described. Documentary
evidence thereof should be included in the Annex to Business Plan.
Submission, Receipt, and Opening of Business Plans
4.1
The original Business Plan and Application Form shall be prepared in indelible
ink. It shall contain no interlineations or overwriting, except as necessary to
correct errors made by the NGO/MFI/Company itself. Any such corrections
must be initialled by the persons or person who sign(s) the Business Plans.
4.2
An authorized representative of the NGO/MFI/Company shall initial all pages of
the Business Plan.
4.3
The completed Business Plan and Application Form must be delivered at the
submission address on or before the time and date stated in section 3.
4.4
As soon as available the Business Plan will be opened by the evaluation
committee.
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5.
6.
Business Plan Evaluation
5.1
Any effort by the applicant to influence IDCOL in the IDCOL’s evaluation or
contract award decisions shall result in the rejection of the
NGO/MFI/Company.
5.2
The information provided in the Business Plan received will be enquired into
by IDCOL through various methods including physical inspection, if required.
5.3
The evaluation committee appointed by IDCOL as a whole and each of its
members individually, evaluates the Business Plans on the basis of the
eligibility criteria detailed in section 3.
Signing of Participation Agreement
6.1
7.
Participation Agreement
NGO/MFI/Company.
will
be
signed
with
the
successful
Confidentiality
7.1
Information relating to evaluation of Business Plans and recommendations
concerning awards shall not be disclosed to the NGO/MFI/Company who
submitted the Business Plans or to other persons not officially concerned with
the process, until the winning NGO/MFI/Company has been notified that it has
been awarded the contract.
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Section 3: Eligibility Criteria for Biogas PO Selection
1.
For Partner Organizations:
Private companies or NGOs or Micro-Finance Institutions that are interested to participate in Biogas
plant construction/maintenance under the framework and conditions of IDCOL Biogas Program are
welcomed. The selection criteria will be as follows:
 Registered as company/NGO/MFI with mandate to be involved in the renewable energy business
 Strong management and financial position.
 Grassroots involvement in promotion of development activities and networking with local and
government institutions and having a well-established office.
 Good business plan and long-term planning.
 Technically trained human resources, preferably from local areas.
 Good track record of services in the past.
 Preferences will be given to those who have experiences in implementation of renewable energy
program and mainly working in Chittagong and / or Sylhet division.
 Minimum equity is BDT 2,500,000
 Minimum number of beneficiaries will be 5,000
2. Evaluation will be done based on the following distribution of marks:
Subject
A. Experience
i. Years of experience in conducting micro-finance programme
ii. Total amount of loan outstanding
iii. Total numbers of beneficiaries under micro-credit
2. Financial Performance
i. Equity
ii. Debt to equity ratio
iii. Cash collection ratio of principal and interest on current loan portfolio
calculated on a rolling twelve month basis
iv. After tax profit p.a. on revolving loan fund (RLF)
v. Debt service cover ratio
3. Institutional Capacity
i. Audit report findings
ii. Number and type of staff i.e. team composition and task assignments
iii. Academic qualification of Chief Executive Officer (CEO)
iv. Experience of CEO
v. Qualification and experience of proposed professional staff
4. Familiarity in the Programme Area
i. Working experience in the Chittagong and / or Sylhet division
ii. Working experience in the Programme Area
5. Linkage and Network
i. Working experience with various government or non-governmental
institutions
ii. Membership and networking with professional bodies
iii. Experience in integrated community development activities undertaken
by the NGO highlighting the credit activities, skill training, health,
nutrition, social development etc.
Total
Points
30
30
20
10
10
100
3. The decision of the Selection Committee shall be final.
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Section 4: Application Form
Infrastructure Development Company Limited
UTC Building (L 16-17 floor), 8 Panthapath, Kawranbazar, Dhaka-1215, Bangladesh.
Phone: 9102171-8, Fax: 880-2-8116663
E-mail: [email protected] Web: www.idcol.org
APPLICATION FORM FOR SELECTION AS PARTNER ORGANIZATION (“PO”)
Sl
1
2
Subject
Name of the NGO/MFI/Company
Year of establishment
3
Nature of business
4
Address of the head office
5
6
Telephone
E-mail
7
Information
Fax
Web-site
Registration
Date
no.
Registration
Registration Body
(a).
(b).
(c).
(d).
(e).
NGO Affairs Bureau
Directorate of Social Welfare
Joint Stock Company
Micro Credit Regulatory
Authority
Other (specify)
Address of the registered office,
if different from head office
9 Telephone
10 E-mail
8
Fax
Web-site
Ownership structure of the
organization
List the core
12
activities/programmes
11
Affiliation
13
Affiliated With
Date of affiliation
Palli Karma Sahayak Foundation
(“PKSF”)
Bank of Small Industries and
Commerce (”BASIC”)
Others (specify)
14 Programme outreach
(a) Working Areas
Divison /District
Local
Divisional
National
15 a) Chittagong
b) Sylhet
c) Others (Specify)
Total Number of staff (National)
16
Total Number of staff (Ctg Div.)
10
Total Number of staff (Syl Div.)
Total number of branch offices
(National)
Total number of branch offices
17 (Ctg Div.)
Total number of branch offices
(Syl Div.)
18
Total number of beneficiaries
(national)
Total
Female
Male
Total number of beneficiaries
(Ctg Div.)
Total
Female
Male
Total number of beneficiaries
(Syl Div.)
Total
Female
Male
Total
Female
Male
Has a renewable energy
programme?
Yes
No
If yes, name of programs
Program starting
Date
No. of plants
constructed so far
Source of fund
December 31, 2012
or FY 2011-12
December 31,2013
or FY 2012-13
December 31,
2014 or FY
2013-14
19 Total number of groups (if any)
20
(a). Domestic Biogas
(b) Solar Home System
(c) Improved Cook Stove
(d). Solar Irrigation
(e). Solar Mini-grid
(f) Others (specify)
Financial information (BDT)
(Last three years)
(a). Total assets
(b). Total Liabilities
(c). Total equity capital
21
(d). RLF
(e). Total revenues
(f). Total operating expenses
(g). Total operating income
(h). Interest expense
(i). Net income
11
Section 5: Business Plan
OUTLINE OF PROFORMA BUSINESS PLAN FOR NGO/MFI/Company
1. Executive Summary
a. Objectives for participating in the project
b. Summary of the main assumptions for the project
c. Management structure for implementing the project
2. Operational Plan
a. Identification of customers (e.g. selection criteria, assumed monthly energy-budget, verification of
‘lower’ income level).
b. Programme areas
c. Target (e.g. total number of plants per year or specify )
d. Identification of product range (e.g. service level, performance criteria, various items in range,
maintenance and guarantee issues)
e. Operational procedures, e.g.
i. Marketing methods
ii. Supply: quality and procurement; service and guarantees
 Partnership with local organizations for a long term business horizon
 Clear arrangement about service and maintenance
 Training
 Warranty arrangements: very specific with respect to plant’s performance to avoid disputes and customer dissatisfaction.
iii. Installation: needs; staff; equipment, materials etc.
iv. Maintenance and service
v. Reporting, accounting and monitoring
3. Financial Paragraphs
a. Separate project accounting
b. Break down to local offices and then aggregate for the total project
c. Budgets:
i. Financing Mechanism
d. Full financial forecasts, including Statement of Cash Flow, Balance Sheet, and Income Statement
4. Key Issues
a. Challenges (identify the factors that are considered as major constraints
NGO/MFI/Company in promoting NDBMP activities)
b. Quality issues: Quality above Quantity
i. Learning by doing
ii. Flexible targets
iii. Adjustments allowed
c. Service and maintenance arrangements
d. Start easy
i. Low barrier areas first
 Lower operational costs if close by NGO’s/MFI’s/Company’s local office
 Higher income so better repayment
 Kick Start in numbers installed
ii. More complex and remote areas next
by the
5. Closing Remarks, Pending Issues, Questions
12
6. Annex to Business Plan
 Organizational Information
[Please attach the memorandum and articles of association of your organization, copy of registration
certificates mentioned in the application form, brochures, annual reports, etc.]
 Composition of Organizational Staff Team
Professional/Managerial Staff
Name
Position
Task
Name of Upazila
 Composition of Proposed Staff Team
Professional/Managerial Staff
SL
Proposed Position
Qualification
Experience
Remarks
 Format of Curriculum Vitae (CV) of Chief Executive Officer (CEO)/Executive Director (ED)
Name:
Designation:
Date of Birth:
Years with NGO/MFI/Company:
Membership in Professional Societies:
Detailed Tasks Assigned:
Nationality:
Key Qualifications:
[Give an outline of experience and training. Describe degree of responsibility on relevant previous
assignments and give dates and locations. Use about half a page.]
Education:
[Summarize college/university and other specialized education, giving names of schools, dates attended,
and degrees obtained (Enclose photograph, copy of key qualification certificates). Use about one quarter
of a page.]
Employment Record:
[Starting with present position, list in reverse order every employment held. List all positions held since
graduation, giving dates, names of employing NGOs/MFIs/Companies, titles of positions held, and
locations of assignments. For experience in last ten years, also give types of activities performed and
Executing Agency references, where appropriate. Use about two pages.]
Languages:
[For each language indicates proficiency: excellent, good, fair, or poor in speaking, reading, and writing.]
Certification:
I, the undersigned, certify that to the best of my knowledge and belief, these data correctly describe my
qualifications, my experience, and me.
[Signature of CEO/ED and authorized representative of the NGO/MFI/Company]
Day/Month/Year
Full name of CEO/ED:____________________________________________
Full name of authorized representative: ___________________________
13
 Audit Report
[Please enclose the certified Audit Report for the last two years.]
 Financial Solvency
[Please enclose Bank Statement of the period for which audit report has been submitted and detailed
Bank Information (Name of the bank with address, Account Number(s) with operational arrangement)
here]
 Organizational Structure of the NGO/MFI/Company
[Please insert the Organizational structure of the organization i.e. how it is managing its activities and
how it is planning to implement the Post-Literacy and continuing Programme]
 Familiarity of the NGO/MFI/Company in the proposed programme area
[Describe the details of office establishment and years of working experience in the proposed
Thana/Upazila]
 Working Experience of the NGO/MFI/Company
Working Experience with various government or non-governmental institutions
[This is a sample format, NGO/MFI/Company may use different format if they desire]
SL.
Name of the organization
worked with
Status of the organization
(Governmental or Nongovernmental)
Assignment duration
Major Tasks
1.
Integrated community development activities of the NGO/MFI/Company
(This should include credit, skill training, health, nutrition, social development and other related activities
of the NGO/MFI/Company. This is a sample format, NGO/MFI/Company may use different format if they
desire]
SL.
Name of the organization
Worked with
Name and Title of the
Program
Achievements to
date
Lesson learned etc.
1.
14