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Request for expression of interest for selection # 1270449Assignment TitlePHILIPPINES: Support Private Sector Participation in LGUs Water Supply and Sanitation SystemsPublication Date?16-Sep-2020Expression of Interest Deadline?28-Sep-2020 at 11:59:59 PM (Eastern Time – Washington D.C.)Language of Notice?EnglishAssignment CountryPH - PhilippinesFunding SourcesThe World Bank Group intends to finance the assignment/services under:BB - BANK BUDGETTF072643 - Public-Private Infrastructure Advisory Facility Parallel MDTF IIIndividual/FirmThe consultant will be a firm. Assignment DescriptionI. BACKGROUND PROJECT OVERVIEW1. Tourism in the Philippines has strong economic potential to transform regional cities and support national competitiveness. Tourism currently contributes to 7.8% of the GDP and employs 4.8 million people (12.8% of the total labor force). Yet, it only shared 5% of ASEAN tourist arrival in 2015, with the highest arrivals being in Malaysia and Thailand. The key constraints as identified in the National Tourism Development Plan (NTDP 2011-2016) include: (i) inadequate air, sea, land transportation infrastructure investments; (ii) limited competitive tourism destinations; (iii) limited Local Government Units (LGU) capacities; and (iv) poor compliance with environmental and safety standards. To address these challenges, there is a need to strengthen the national and local government partnership in planning, financing and implementation of infrastructure projects. In April 2018, the closure of Boracay (one of the most popular tourist destination) has amplified concerns regarding severe environmental issues in major tourism destinations due to lack of solid waste and wastewater treatment facilities that is contributing to the degradation of the water quality.2.Most major destinations in the country face severe deficiencies with respect to basic social and logistical services, such as, water supply and sanitation, wastewater, solid waste management, health facilities, among others. In addition, rapid growth (double digit growth in population) due to influx of tourists arrivals is increasing pressure on the existing infrastructure. With respect to water supply, sanitation, septage or wastewater management, the current system in the four destinations selected for the activity have similar practices as most areas in the country.3.Water supply and sanitation continue to be inadequate and inequitably provided. As of 2015, 87.75 % of the population has access to safe water supply but only 50% has piped connections. Ten regions in the country have water supply access rates lower than the national average and in at least 337 municipalities located in the 10 poorest provinces, more than 50% of their population have no access to safe water supply. On the other hand, 74% of the population has basic sanitation services but only 4.4% is served by sewerage systems. Inadequate water supply and sanitation services have contributed to the incidence of water borne diseases, which rank as the fifth leading causes of morbidity in the country.4.Households and resorts are heavily reliant on-site sanitation with septic tanks providing primary treatment. These septic tanks are often undersized, not emptied or serviced regularly, thus, effluent overflows into sensitive ecosystems along the coastal areas and negatively impacting on health, environment and economy. This situation caused the closure of Boracay because unregulated proliferation of untreated wastewater ultimately polluted its precious receiving water bodies. While septage management can at the very least help address the problem, the three tourist destinations are considering to improve their overall drainage and sanitation systems through investments for sewer interceptor pipelines and subsequent development of wastewater treatment facilities.5. In terms of the enabling environment, the closing of the Boracay for its rehabilitation and strict implementation of the sanitation laws, followed by the strict compliance to the Manila Bay Supreme Court Mandamus, El Nido closure, and the pronouncement of the President to do the same in other tourist destinations have given rise to the ramped-up implementation of sanitation investments to address relevant pollution issues. The regulations of the Sanitation Code (Chapter 17) of the Philippines and other related chapters are now being updated, including the standards and Operations Manual. The said regulations will set the enabling environment towards the implementation of the septage management, sewerage and drainage.6.With respect to the implementation arrangements, the creation of the Dept. of Water was announced last July to address the fragmentation in the sector. As this will take time to realize, the Water Convergence Program (WCP), an interim arrangement among the key sector players, was endorsed by NEDA through an executive order (EO) to implement the proposed Philippine Water Supply and Sanitation Master Plan (PWSSMP). The Bank contributed in the development of the master plan through the unified financing framework (UFF), recently called Unified Resource Allocation Framework (URAF). The URAF provides viability-gap financing for the utility providers and OBA to support the poor HHs in meeting universal and sustainable access to WSS service delivery. NEDA (the convener) is awaiting for the Presidents approval (signature) of the WCP EO so that the implementation of the WSS master plan outside of Metro Manila (which is under MWSS) can be started.7.The master plan reveals that the financing gap is Php90 billion per year but based on the current available funding from the relevant agencies for this year is only Php10 billion (only 10%). Thus, there is great opportunity for ODA funding and Public-Private Partnership (PPP) to achieve the SDG. Recognizing the investment needs to be competitive, the LGUs are considering solutions to attract private sector participation through PPP. Local utilities have limited means to meeting the increasing water demand of its rapidly expanding service area coverage and managing the consequent increase of wastewater and solid waste generated. In view of this, professionalizing the management of these environmental infrastructure operations are necessary to sustain efficient service delivery in tourist destinations where revenues can be generated through tariffs on water use and environmental fees and/or tipping fees for wastewater and solid waste management. Water, wastewater and solid waste management are the potential areas for private sector participation, given the proliferation of successfully managed water supply, wastewater and solid waste service providers in the country. The Government is providing interim funds to support LGUs through the internal budget allocation of concerned agencies for WSS for water supply, LWUA with LGUs with water districts, DILG for LGUs without water districts; and for sanitation, DPWH for the 1st class municipalities to HUCs and DOH for the 2nd to 6th class municipalities.8.The World Bank is proposing to finance a $150 million project on Sustainable, Inclusive and Resilient Tourism with phase 1 focusing on the following destinations Siargao, Siquijor and Bohol. These three (3) destinations lack affordable water supply and sanitation solutions. NEDA and the participating LGUs (Siargao, Bohol and Siquijor) have recruited local consultants to conduct pre-feasibility studies for the proposed investments to be financed under SIRT. Possible options for investments include Bulk water supply scheme in Bohol; Septage management and water supply schemes in Sairgao and water supply in Siquijor. The local governments are keen to attract private sector participation and have indicated an interest to explore options such as the Design, Build and Operate (DBO) or Design Build and Lease (DBL) PPP modalities. The DBO or DBL structure is being proposed as the province have limited capacity to undertake and manage a complex public investment projects as well as to sustainably sustain them after completion and would like to get the best value for money from the market.OBJECTIVES OF THE ASSIGNMENTThe objective of the assignment is to undertake the following: (i) support the province in preparation for the DBO/DBL through capacity building and perform collaborative activities with national government agencies through NEDA to ensure that WSS subprojects are in sync and within the implementation reforms that will be instituted under the currently approved PWSSMP, specifically the achievement on the KPIs and proper operationalization of the Unified Resource Allocation Framework (URAF); (ii) strengthen technical and economic analysis of the projects; (iii) assist in the market survey to ensure robust interests of the private sector; and (iv) support the preparation of an O&M plan .QUALIFICATION REQUIREMENTSThe consultant shall have a good understanding of the current status of the water sector in Philippines, including the technical, environmental, institutional and legal framework. The Consulting team shall have the following key personnel. CV of these key persons will be evaluated. The team below can be supported by other expertise, if required:- Project Manager/Water Supply and Sanitation Engineer: Experienced project manager with masters degree in engineering, or other relevant fields, and at least 15 years of professional in related works and experience from at least 3 international projects; (one of below requested team members could act as team leader, if qualified); -Financial and Economic Specialist: Economist with a minimum of 5 years of experience in financial modeling of infrastructure projects, economic/social cost and benefit assessment as well as demand supply analysis for public services. Experience in water supply and sanitation projects is desirable;-Water Resources Engineer: Engineer with a minimum of Bachelor of Science degree in water resources and at least 10 years work experience in hydrogeology, hydrology and drainage; and water quality assessment and pollution mitigation;-PPP/Market Survey Specialist: Experienced in PPP modalities and should be familiar with the issues (what works and what will not) and preferably with experiences in Philippines;-Procurement Specialist: Experienced in procurement under PPP modalities and should be familiar with the procurement issues and preferably with experiences in the Philippines.Qualification Criteria1. Provide information showing that they are qualified in the field of the assignment. *2. Provide information on the technical and managerial capabilities of the firm. *3. Provide information on their core business and years in business. *4. Provide information on the qualifications of key staff. **

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