TERMS OF REFERENCE - 100008714

Project Title: Hydroelectric Study for Green Hydrogen and Fertilizer Plant in
Nepal

Contents
Background ............................................................................................................................................................................... 2
1) GGGI’s Mission and Approach ................................................................................................................................ 2
2) Project Background and Objectives ...................................................................................................................... 2
Proposed Activities and Scope of Work ............................................................................................................................. 3
1) Proposed Activities for the Overall Project ......................................................................................................... 3
2) Scope of Work ........................................................................................................................................................... 3
Deliverables and Payment Schedule ................................................................................................................................... 4
Time Table and Reporting Arrangements........................................................................................................................... 5
1) Time Table................................................................................................................................................................... 5
2) Reporting Arrangements .......................................................................................................................................... 5
Suggested Program Management and Methodology ...................................................................................................... 6
Competence Requirements and Allocation ....................................................................................................................... 6
Environmental and Social Considerations .......................................................................................................................... 8
Evaluation Criteria and Method ........................................................................................................................................... 8
1) Evaluation of Technical Component...................................................................................................................... 8
2) Evaluation of Financial Component ....................................................................................................................... 9
3) Evaluation of Financial Soundness ......................................................................................................................... 9
4) Evaluation of Technical and Financial components for total scoring ...........................................................10
 Annex A-I. Terms of Reference

Background
1) GGGI’s Mission and Approach

Based in Seoul, the Global Green Growth Institute (GGGI) is an intergovernmental organization
founded to support and promote a model of economic growth known as "green growth", which
targets key aspects of economic performance such a poverty reduction, job creation, social
inclusion, and environmental sustainability. GGGI works with countries around the world, building
their capacity and working collaboratively on green growth policies that can impact the lives of
millions. The organization partners with countries, multilateral institutions, government bodies, and
private sector to help build economies that grow strongly and are more efficient and sustainable in
the use of natural resources, less carbon intensive, and more resilient to climate change.

GGGI has a diverse portfolio of programs in developing countries around the world. These in-
country programs, together with global products and services, focus on delivering results through
an integrated approach of evidence-based green growth planning and implementation aligned to
countries’ development priorities. The organization also focuses on knowledge development and
management activities which build a strong theoretical and empirical basis for green growth, while
providing concrete options and guidance for policymakers; as well as building the conditions for
public and private green infrastructure investments.

2) Project Background and Objectives

Hydropower can offer a cost-effective electricity supply solution compared to other sources of
renewable energy (solar, wind, and geothermal) required for production of green hydrogen. The
renewable energy sector of Nepal is expected to grow rapidly with hydropower as the dominant
form of renewable energy. The technical potential for hydropower in Nepal is 83 GW; 42 GW is
estimated to be commercially exploitable. According to Norwegian University of Science &
Technology (NTNU), Nepal is expected to have an excess of 3.5 GW of electricity by the end of 2028,
and Nepal has an opportunity to produce green hydrogen from its vastly available hydro power.
Given the availability of excess power and the enormous hydro potential provided by Nepal's
geography, Nepal has the tallest mountains on earth all along its northern border. These mountains
have glaciers that provide a more-or-less permanent source of water for the foothills and Indo-
Gangetic Plain to the south. GGGI is supporting the Government of Nepal (GoN) to explore
productive use of hydro power and set up the first green hydrogen and fertilizer plant in Nepal to
alleviate the national need for fertilizer imports.

The objective of this assignment is to select a competent consultancy firm (hereinafter referred to as
‘Consultant’) to develop a site-specific hydroelectric generation study that will contribute to an
analysis of the opportunity and feasibility of setting up a green hydrogen plant coupled with a
fertilizer plant in Nepal. The report will examine one single location which will be selected following
completion of an assessment and feasibility comparison of 6 potential candidate sites. The final site
will be ascertained by GGGI, and the details will be provided by GGGI at the time of project
commencement. It should be assumed by the Firm that 100MW of hydropower capacity will be
provided by the Nepal Electricity Authority (NEA) as the source of electricity for the hydrogen and
fertilizer plants.

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Proposed Activities and Scope of Work

1) Proposed Activities for the Overall Project

The Consultant shall make site specific assessment of hydropower generation potential based on
current installations and planned hydropower development that the site can benefit in terms of
renewable units available for green hydrogen and fertilizer production.

The Consultant shall ensure the generation transmission and distribution is aligned to final
estimated capacity needed, evaluated through the site study and proposed to be earmarked for
green hydrogen production and fertiliser production on the site.

Fair estimate for LCOE for hydro power generation on the identified plants as renewable energy
cost is a key criterion for bankable green hydrogen and fertiliser production.

This study is a key input to the flowing technical and commercial feasibility assessment for green
hydrogen and fertiliser production. The consultant within the scope of the assignment shall provide
inputs/address all the input requirements needed the technical and commercial feasibility of the
green hydrogen and fertiliser production.

2) Scope of Work

The successful Consultant shall carry out the following actions in 3 stages of the assignment:

1. Site and Resource assessment

Hydropower Generation for Green Hydrogen and Fertilizer Production:
• Determine the amount of electricity expected to be available for hydrogen and fertilizer
production at the selected site/location considering yearly, monthly, weekly, and daily
variability of hydro-resources and the implications for electricity generation and supply.
• Determine the total amount of hydroelectricity on an annual basis that would be available
for hydrogen and fertilizer production at the selected site/location.
• Estimate realistic capacity factor based on power generation for the site, including options
for aggregating multiple power sources to maximise the capacity (plant) factor.
• Recommend additional options for the Nepal Electricity Authority (NEA) to provide stable
and reliable electricity for the electrolyzer and fertilizer plant, including making a preferential
arrangement such that uninterrupted and reliable power is supplied to the hydrogen and
fertilizer plants.

2. Transmission and Distribution

• Analyse transmission and distribution capability relevant for hydrogen and fertilizer
production at the selected site/location,
• Examine constraints, bottlenecks, curtailment issues, and transmission system congestion
issues that could interfere with supply and delivery of electricity to the selected location and
compromise the reliability and quality of the electricity supply to the hydrogen and fertilizer
plant.
• Network and bus bar availability for power evacuation needed for the plants,
• Substations availability close to the production site,
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 Annex A-I. Terms of Reference

• Assess if the grid code/transmission code allows to draw and supply power to the accessible
power grid.
• Provisions for storage and spare capacity from the generation site.

3. Cost of Electricity for Hydrogen and Fertilizer Production

• Assess the price/tariff structure over the year, month, and day relevant to the electrolyser
plant and the fertilizer plant.
• Applicable wheeling charges for delivery of electricity to the plant location
• Assess the full annual cost of electricity supply to the electrolyzer and the fertilizer plant.

Deliverables and Payment Schedule

The expected outputs of the Consultant are as follows:

Description Scope for deliverable Proposed Payment

timelines subject terms
to contract
1 Finalized inception report Inception report, Within 3 weeks 10% of the
work plan finalized. of the contract total contract
Initial stakeholder effectiveness value
consultation and site date
visit report
2a Draft Interim Report Submission of Within 6 weeks 10% of the
‘Project study outline of contract total contract
and first phase effectiveness value
analysis (interim date
report) based on the
proposed work and
the defined scope of
work.’
2b Submission of ‘Draft ditto 10% of the
interim report’ total contract
value
2c Submission of interim ditto 20% of the
report with ‘All total contract
comments by the price in USD
project management
of GGGI and
important GoN
stakeholders
particularly NEA and
investment board
addressed.

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 Annex A-I. Terms of Reference

3a Draft Final report Draft Final report Within 10 weeks 10% of the
addressing the needs from the date of total contract
of the project to be contract value
developed and effectiveness
addressing all the date
requirements of the
project developer
(Green Hydrogen and
Fertiliser) looking to
invest and develop
the project
3b Submission of ‘All ditto 20% of the
comments by the total contract
project management price in USD
of GGGI and
important GoN
stakeholders
particularly NEA and
Investment board
addressed.
4 Final Report Final report approved By the 12th week 20% of the
of the project total contract
contract price in USD
effectiveness
date

All reports and outputs must be in English, in accordance with GGGI’s formatting requirements, and
submitted in hard copy and electronic formats along with complete sets of raw data, research
materials, and interview notes.

Time Table and Reporting Arrangements

1) Time Table – Please refer to the deliverable table above for the proposed timelines.

This project is expected to be completed by December 30, 2023, with a tentative timetable
explained in the table above.

2) Reporting Arrangements

The Consultant’s work progress will be monitored primarily through periodic review meetings, the
precise schedule of which is to be determined based on consultation with the Consultant. The
Consultant is also expected to periodically produce, upon GGGI’s request, a formal progress report
that includes: an overview of the project, a narrative description of project activities, detailed
information on project objectives and milestones, actual achievements made against the timeline
set, etc.

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 Annex A-I. Terms of Reference

Suggested Program Management and

Methodology
To ensure successful delivery of the project, the core project team will adhere to the following
principles:
• Engagement and consultation: The Consultant must be committed to continuous engagement
between GGGI, GoN and project developers and debt. This will maintain aligned views and
direction.
• Scoping, planning and adaptive management: The detailed plan created in the inception
phase will remain a live document. The Consultant must keep focused on the goal and adapt
the plan in response to operating conditions and project needs.
• Workflow management: GGGI suggests that the Consultant installs a simple process for
monitoring progress and needs and raising and agreeing changes of scope with GGGI to
maximise the ability to remain focused on delivering value.
• Scheduling and resource management: The Consultant’s project manager and local
coordinator must liaise continuously to optimise the presence of the team’s staff and experts.
A ‘running schedule’ must forecast when staff needs to be prepared and available for
particular analysis, or stakeholder engagement tasks.
• Risk management: As part of our standard process GGGI request the firm to keep a record of
project risks and mitigating actions. Regular updates to these must be shared at reporting
intervals.
• Document control: Data and documents including all client and commercial information must
be secured in our professional manner preferably a software system (for e.g., MS Teams)
agreed with us) that can only be accessed by pre-authorised members of GGGI and firms
project team.
• Communication: Regular progress calls, at which GGGI Project Manager and Core Project
Team is a must to update appropriately on progress against the work plan and discuss our
analyses, findings and any issues as they develop; and
• Reporting: Monthly status updates that demonstrate how we are progressing, including
interim and final deliverables.

Competence Requirements and Allocation

The successful Consultant should have strong understanding of hydropower as a dominant source
of renewable energy in the electrical system in Nepal and documented experience from the
hydropower segment and a strong understanding of its role within the electricity sector in Nepal.
The Consultant should have strong knowledge of the variability of hydro resources on various
timescales (annual, seasonal, monthly, weekly, daily) and the implications thereof for electricity
generation and supply to the hydrogen and fertilizer plants. The Consultant should furthermore be
able to analyze the transmission and distribution in terms of conditions impacting reliability and
quality of supply of electricity to the hydrogen and fertilizer plant. The Consultant should also have
documented experience in analyzing electricity sector expansion and investment plans in Nepal.

The respective team members should have the following qualifications and expertise.

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 Annex A-I. Terms of Reference

Team Leader: The Team Leader will manage the overall assignment.

• At least master's degree (PhD Preferred) in economics, finance, hydropower engineering,

energy, power or another related field and a proven track record of at least seven years of
extensive work experiences in hydropower and electricity sector projects, preferably in
Nepal.

• At least 15 years of experience in managing and conducting feasibility studies, stakeholder

engagements and developing technical programs and financial proposals.

• Sectoral expertise in hydropower and electricity is required.

• Experience in coordination, technical assistance and advisory support to government and

private institutions

• Fluency in written and spoken English.

Electrical Engineer (especially proven record of engagement in hydropower sector)

• At least a master's degree in energy or electrical engineering with 10 years of work

experience in the electricity sector.

• An expert in the electricity sector in Asia, especially in South Asia, with an emphasis on
hydropower. Knowledge of other intermittent renewable energy sources is an additional
plus.

• Knowledge of business models, PPAs and similar agreements widely used within the
electricity sector.

• Familiarity with hydrogen generation and electrolyzer technologies would be a strong plus.

• At least 5 years of experience in working with government stakeholder engagements.

• Fluency in written and spoken English; Nepali a plus.

Local expert

• Bachelor’s degree in engineering and energy or equivalent, in social science, sustainable

development, statistics or other related fields is required.

• Relevant professional experience of data collection, conducting surveys and stakeholder

engagement.

• Experience in policy research, database management, and socio-economic analysis will be an

advantage.

• Understanding of the local context, culture and diversity in Nepal, particularly around the
project location area.

• Experience in energy and hydropower is desirable.

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 Annex A-I. Terms of Reference

Environmental and Social Considerations

The Consultant should examine relevant environmental and social requirements and issues:
• Social and environmental issues may arise unless hydropower is well-planned and in line
with government policies and recommendations.
• Social and environmental issues regarding electricity infrastructure should be examined as
required.
• Any other social and environmental issue deemed relevant.

Evaluation Criteria and Method

From the last time and date of submission of the Quotations to the time the Contract is awarded, if
any Tenderer wishes to contact the GGGI on any matter related to its Proposal, it should do so via
the GGGI e-Green Procurement Portal (https://in-tendhost.co.uk/gggi).
Tenders will not be opened by GGGI until after the deadline for submission of Proposals. The
Technical Component will be opened at one opening event, soon after the submission date, be listed
in an opening protocol, submitted to, and thereafter be evaluated by the Procurement Committee,
without unnecessary delay. The Procurement Committee, which has been appointed in according
with GGGI’s Procurement Rules, will first perform a Technical Evaluation. The Tenders that have
passed the Technical Evaluation will thereafter be subject to a Financial Evaluation, which includes a
calculation of the total scoring for both the Technical and the Financial Evaluation, in accordance
with the formula presented below. The Financial Component will not be opened until after the
Technical Evaluation is finalized, and then by a corresponding procedure.
Selection will be based on the following process. The total possible score for the Technical
component is maximum 100 points. 70 % of the score received in the technical evaluation will be
added to the obtained financial score, which is maximum 30 points, and calculated as described
below.

The maximum budget available for this Contract is USD 25,000, inclusive of any VAT or other taxes
or costs.

Please, note that we do not recommend this maximum amount as a ‘target’ for your Quotation. The
evaluation is a result of a combination of technical soundness and cost effectiveness of the
Quotations, i.e. the evaluation of the financial component will be added to the evaluation result of
the technical component, in accordance with the principles and weights set out in this document.

1) Evaluation of Technical Component

A Proposal will be rejected at this stage if it fails to achieve a minimum technical score of 70.
The detailed technical evaluation criteria and possible scores for each are as follows:

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 Annex A-I. Terms of Reference

Major Criteria Details & Sub-Criteria Maximum Score

• Tools and techniques suggested to be used
for resource planning and hydroelectric plant
power generation for GH2 plant (list of tools
Methodology and techniques proposed in the proposals) 25
• Engaging with stakeholders on the ground
particularly NEA and the energy sector
players *minimum 2-3 years)
• Experience in conducting hydroelectric plants
Experience of the firm and resource planning for GH2 plant 20
(Minimum 2-3)
• Proposed team meets the requirements set
Team Composition 20
for the consultancy
• Core RE focused expertise, particularly the hy
dro power analysis (minimum 15 years’ experi
ence – project manager)
• Closed Resource mapping and knowledge of h
Expertise 35
ydro plant transaction (minimum 3-4 transacti
ons) along with deep understanding of transm
ission and distribution and productive/captive
use of hydro power by the industrial sector

Total Possible Technical Score 100

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2) Evaluation of Financial Component

The maximum score for the financial component is 30 points. The maximum score shall be
allocated to the lowest priced Proposal. All other Proposals shall receive points in inverse
proportion according to the following formula:

p=y*(x/z)
where:
p = points for the financial Proposal being evaluated.
y = maximum number of points for the financial Proposal.
x = price of the lowest priced Proposal.
z = price of the Proposal being evaluated.

3) Evaluation of Financial Soundness

The tenderer must demonstrate that its financial resources, less its financial obligations for its
current contract commitments, meet or exceed the total requirement for the subject contract of
USD 25,000. Information will be verified from Annual Financial Statements and any other
documents that verify the availability of financial resources submitted by the tenderer.

Special notes on financial proposal

Financial Compliance Check:
Following things will be checked:
1. The quantities and items are consistence with technical proposal
2. Prices offered are fair and in line with current market or industry trends
3. Reasonable to the GGGI
4. Rates are balanced
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 Annex A-I. Terms of Reference

Compare technical and finance offers line by line and item by item before submission.

Financial Soundness:
Following will also be checked for financial soundness:
1. Current Ratio = (Current assets/Current liabilities)
The ideal current ratio is sometimes said to be 2 or minimum cash in hand as requested in TOR.
2. Quick Ratio also referred to as acid test, the quick ratio tests an organization’s true liquidity by
assuming that stock is not immediately saleable.
Quick ratio = (Current assets) – (stock) /current liabilities
The ideal quick ratio is sometimes said to be 1.
3. Check historical performance of the firm from financial statements to ensure that firm is not
facing insolvency during contract duration
4. If financial statements are in local languages, please submit all documents in English translation

Direct and Indirect Tax:

Any liability of direct or indirect tax will remain with the consultant as per local /national applicable
laws, for example if tax (direct or indirect) is applicable on payments from outside the country of
the firm ( where firm is based) as per local laws , the consultant is liable to pay; or in case tax law
in countries of assignment impose taxes on offshore services on foreign non-registered firms, the
consultant is liable to pay their liabilities in accordance with national laws. It is the duty of the firm
to conduct its own due diligence on tax liabilities before submission of proposals.

4) Evaluation of Technical and Financial components for total scoring

The score for the technical component is added to the score for the financial component to arrive
at the total score for a Proposal. The Proposal with the overall highest score after this is the best
Proposal. The other Proposals will be ranked in descending numerical order based on the total
score.

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