REQUEST FOR PROPOSALS

(New Version)

 

Subject:       Study for the Liberalization of Natural Gas Market in Greece

 

 

THE REGULATORY AUTHORITY FOR ENERGY (RAE)
OF THE HELLENIC REPUBLIC

acting on its authority based on Law 2773/1999.

 

 

INVITES

 

interested accredited consulting firms or consortia (hereafter referred to as “the Consultant”) to submit proposals concerning the planning and the implementation of the liberalization of the market for Natural Gas (NG) in Greece.

 

1. Introduction and Background

 

1. The Regulatory Authority for Energy of the Hellenic Republic (RAE), established by law 2773/99 as an independent administrative Authority with competence over the whole of the energy sector, wishes to study and recommend to the Greek Government the appropriate restructuring of the natural gas market in Greece.

 

Such restructuring must conform to EU legislation, including its currently anticipated development, and promote the implementation of the internal energy market, while strengthening security of natural gas supply and ensuring a transparent and non discriminatory competitive environment for gas imports, trading, transport, storage and wholesale supply in Greece.

 

2. The Greek natural gas market is a fast growing emerging market. First supply of gas to customers was effected in 1997 and in 2000 gas consumption approached 2 bcm.

 

At present according to the basic gas Law2364/95 as amended and supplemented, DEPA S.A., a majority state owned company, is granted exclusive rights for natural gas imports, transportation (high and medium pressure system) and supply to large consumers and to the distribution and supply companies.

DEPA has signed long-term import contracts with GAZEXPORT for pipeline gas (entry point at the Greek Bulgarian border) and with SONATRACH for LNG unloaded at the Revithoussa LNG terminal in Attica.

 

Three gas distribution and supply companies (the EPAs) are granted an exclusive license for gas distribution and supply to small industry, commerce and domestic consumers in their respective license area (Attica, Thessaloniki, Central Greece). Each EPA is a joint stock company with DEPA. as an indirect majority shareholder and international private gas companies as minority shareholders entrusted with the management of the respective EPA. The Ministry of Development recently announced the extension of natural gas supply to other regions of the country.

 

2. Scope of consultancy services

 

RAE requires the Consultant to carry out the Tasks given below in connection with the restructuring of the gas industry in Greece:

 

Task 1: Study and evaluate alternative gas market models taking into consideration conditions specific to Greece, anticipated development of the Greek natural gas market and infrastructure and strategic aspects regarding security of supply and market competition.

Task 2: Recommend and justify appropriate structure for the Greek natural gas market compatible with the engineering and operational aspects of the Greek natural gas system, as it will expand with new infrastructure. The recommended structure has to conform to EU legislation, including its currently anticipated development, and promote the implementation of the internal energy market, while strengthening security of natural gas supply and ensuring a transparent and non discriminatory competitive environment for gas imports, trading, transport, storage and wholesale supply in Greece.

Task 3: Design and recommend the appropriate market rules, gas trading arrangements, market conduct and governance for the new gas market, including recommendations for appropriate tariff structures.

Task 4: Analyze the implications for regulatory policy in the gas sector in relation with the newly liberalized electricity market in Greece and recommend appropriate regulatory policy for the major issues.

Task 5: Draft the provisions of the necessary codes and licenses for different market activities in the new gas market. Such activities including as appropriate trading, balancing, nomination, scheduling, capacity booking, storage, settlement, metering and billing.

Task 6: Draft the terms to be included in the connection agreement, use of system agreement and such other appropriate contracts, agreements, licenses and legal documents needed for the new gas market.

 

It is clarified that regarding the distribution (in cities for small-scale customers) and retail supply of natural gas in Greece, the Consultant has to consider as given the existing market organization, legislation, codes, licenses and agreements. The Consultant has to examine whether or not the proposed organization of the wholesale market and the proposed legislation may require changes of the existing framework regulating the distribution and retail market and propose the necessary changes.

 

Regarding Tasks 5 and 6 the Consultant must specify in his proposal the proposed level of detail and the stage of preparation of the relevant legal texts. The proposal may include for these tasks only options differentiated by the level of detail and stage of preparation of the relevant legal texts. Options for other tasks are not accepted.

 

Tasks 5 and 6 shall be carried out as a second phase of the project. After the end of the first phase (consisting of Tasks 1 to 4), RAE will decide about the scope of the second phase and reserves the right to select at that stage one of the proposed options concerning the level of detail and stage of preparation of the relevant legal texts.

 

3. Reports

 

The reports and documents prepared as part of the work under each Task shall be submitted by the Consultant in hard copies (2 copies) and electronic copies (Microsoft Office 98 or later version). The language of the reports may be Greek or English.

 

The Consultant may propose the frequency, content and layout of the reports and documents.

 

The Consultant shall also submit monthly progress reports which will summarize the progress achieved during the period under review, present the findings and recommendations formulated during the same period, suggest issues for discussion and resolution, and outline the services proposed for the forthcoming period.

 

The first monthly progress report will include a detailed inception report and a detailed project organization schedule.

 

4. Offers

 

          The proposals should include:

 

(1)            A conceptual analysis of the problem, in the context of the relevant legislation of the EU and the current situation for natural gas supply and distribution in Greece.

(2)            A description of the services to be offered, as envisaged by the Consultant, by Task, the corresponding methodology, and the proposed consultation and reporting requirements.

(3)            A proposal concerning the timetable for the services offered, by Task, the basis for charging for them, a cumulative cost proposal, for each of the two Phases and in total, and separately optional travel fees. The total budget cannot exceed 1.6 million Euro and the total project duration must not exceed 7 months. Any delay caused by RAE when making a decision that affects the progress of the project from one phase to the next shall be subtracted from total project duration.

(4)            A detailed description of Consultant’s past experience and the CVs of the persons to be involved in the present study, including details of persons and experts to be committed for the project (by name of person, person-hours and by task).

(5)            A bank guarantee of 15000 Euro for the participation in the tender and for the commitment to carry out the project if the Consultant is selected. The selected consultant will be asked to provide a bank guarantee equal to 5% of total project cost for good performance.

 

5. Selection criteria

 

The selection of the consultant will be based on the following criteria:

 

(1)            Understanding of the Greek natural gas market, engineering and infrastructure aspects and appropriateness of the proposed conceptual design in relation to project objectives and the specificities of the Greek case. (Weight 20%)

(2)            Knowledge and familiarity with the EU relevant legislation, regulatory policy and the practice in the EU member-states. (Weight 10%)

(3)            Background experience, CVs of key staff and commitment of highly qualified personnel to the project. (Weight 25%)

(4)            Project organization, project management, quality assurance and project time schedule. (Weight 10%)

(5)            Total cost of the Project. (Weight 35%)

 

RAE reserves the right not to award the study, for any reason.

 

6. Submission

 

All proposals (one copy) need to be submitted by registered mail, hand or courier delivery to RAE’s address: Panepistimiou 69, Athens 104 31.

 

Deadline for receiving proposals at RAE’s premises: 14 December 2001, 15:00.

 

Further information is possible by writing to RAE or e-mailing to info@rae.gr.