Programme for Supporting Renewable Energy in Ukraine

Transcription

1 EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT TERMS OF REFERENCE Programme for Supporting Renewable Energy in Ukraine Support to the Auction Administrator for the design and implementation of a competitive procurement process The Programme for Supporting Renewable Energy in Ukraine (the Programme ) consists of a comprehensive package of technical assistance to support the Ukrainian authorities in developing and implementing competitive bidding processes for renewable energy. The Programme builds on the long-standing engagement of the European Bank for Reconstruction and Development (the EBRD or the Bank ) in Ukraine s renewable energy sector. It consists of a series of components designed to help each relevant Ukrainian authorities on all aspects of the transition to competitive bidding processes. The Programme will allow the Bank to respond quickly and comprehensively to the needs of Ukrainian authorities. The Programme is underpinned by a budget that reflects the Bank s experience of similar activities in other countries, as well as its longstanding experience of policy dialogue on the development of renewable energy in Ukraine. 1. Background Ukraine faces a growing challenge to modernise and decarbonise its energy sector, which remains heavily reliant on imported oil, coal and natural gas as well as ageing nuclear power plants. The Ukrainian government has declared a strategic goal of increasing energy diversity and reducing its dependence on energy imports. Ukraine has adopted a policy of convergence in its energy policy with the EU acquis. This policy includes the following elements: (1) becoming a party to the Energy Community Treaty, which entails an obligation to adopt large parts of EU energy acquis; (2) the Association Agreement between Ukraine and the EU, which also entails obligations to adopt EU legislation; (3) the adoption of a reform agenda aligned with the EU energy agenda in the 2017 Electricity Market Law; and (4) the goal of synchronising its electricity market with ENTSO-E, the organisation of European transmission system operators. Reflecting its strategic priorities and its obligations under treaties and agreements, the Ukrainian government adopted an official National Renewable Energy Action Plan in October 2014, in which it committed to increase the gross final consumption of electricity from renewable sources to 11% by 2020 and a longer term goal of 25% by Since 2009, the Ukrainian renewable energy sector has developed considerably, with installed wind and solar capacity increasing from approximately 10 MW in 2009 to 1,300 MW by The current market is significantly more mature and has the following characteristics: Support for renewable energy is provided under a feed-in tariff ( FiT ) mechanism (the Green Tariff scheme) that offers a fixed price to renewable energy producers which is significantly higher than the wholesale or end-user price (and higher than comparable tariffs in other countries). Page 1 of 11

2 The standard form power purchase agreement, which is the core of the contractual framework for renewables, has been extensively revised and a restated version was adopted in March As a result of the maturity of the sector and the improving perception of Ukraine, there is growing interest from major international developers to implement much larger projects than have previously been constructed in Ukraine. There is similarly increasing interest from international lenders to finance such transactions. Nonetheless, despite the significant growth of renewable energy production, the penetration of renewable energy, other than by large hydropower, remains low. This is partly because the market is dominated by small, local entities and to-date there has been no availability of limited recourse finance, which is the most common finance model for renewable energy in comparable markets. As a consequence, Ukraine is some way from reaching its targets. At the same time, there is growing momentum amongst Ukrainian policymakers for a shift from the existing Green Tariff scheme to a competitive mechanism to determine the level and recipients of renewable energy support. Once implemented, such a market-based system would more closely align Ukraine with international trends and also be consistent with EU requirements. It is also likely to secure a significantly more cost competitive renewable energy support mechanism. This policy shift towards competitive bidding processes is reflected in the activities of Ukraine s Parliamentary Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety (the Parliamentary Committee ). The Parliamentary Committee has been leading legislative efforts to pave the way for competitive bidding processes for support renewable energy. In April 2018, it published a note summarising the Concept of Introduction of Competitive Mechanisms of Price Formation for Electricity from Renewable Energy Sources, which sets out the principles that would underpin a future competitive procurement scheme. Moreover, in June 2018, the draft Law On amendments to certain laws of Ukraine to ensure competitive conditions of production of electricity from renewable energy sources" was registered with the Parliament. Several alternative drafts were submitted by members of the Parliament following the registration, which are currently under discussion. The Authorities are aiming to initiate the Parliament approved process before year-end 2018, and are targeting a first auction to be held in The planned reforms will occur against the backdrop of far reaching electricity market reforms that are envisaged by the 2017 Electricity Market Law. The Law has a number of implications for renewable energy support schemes, including: Transferring the responsibility of the off-taker for renewable energy from the State Enterprise Energorynok to a new entity called the Guaranteed Buyer; Specifying the mechanism for the funding of renewable energy support; The creation of different organised electricity markets that may interact with support schemes for renewable energy in the future. Key institutions involved in the industry include the Ministry of Energy and Coal Industry, the National Electricity and Utilities Regulatory Commission ( NEURC ), and the State Agency for Energy Efficiency and Energy Conservation ( SAEE ). The State Enterprise Ukrenergo is responsible for the transmission of electricity (the TSO ) by cross-border and high voltage networks (from Page 2 of 11

3 power generating facilities to connection points of local networks) and distribution is done by 27 regional distribution companies ( Oblenergos ). Until the creation of the Guaranteed Buyer, State Enterprise Energorynok will continue to be the offtaker. Energorynok was established in 1998 and acts as a single wholesale buyer of electricity from all generators and a single seller of electricity to the electricity supply companies. In the shift to a competitive bidding process for determining support levels, and awarding support, to renewable energy producers, a key role will be played by the Auctions Administrator. The Auctions Administrator will be responsible for designing the rules of the competitive bidding process and implementing individual rounds of competitive bidding. The Bank has been closely engaged in Ukraine s electricity sector and in the renewable energy sector in particular since it started operations in the country, through direct investments in projects and regulatory and policy advice. It played an instrumental role in ensuring that the contractual framework for purchasing renewable energy could attract international investors, provided support for guidelines on the permitting procedures for renewable energy, commented on drafts of the New Electricity Market Law and provided input on the revised power purchase agreement adopted in March The Bank, jointly with the Energy Community Secretariat ( EnCS ) and in cooperation with the International Renewable Energy Agency ( IRENA ), prepared the Policy Guidelines on the Competitive Selection and Support for Renewable Energy, published on 26 March The Bank is supporting the Ukrainian authorities decision to shift to a competitive auction mechanism and has mobilised technical assistance to provide support to the Committee in drafting and reviewing the draft Law. The Bank now want to focus on the next steps of the competitive procurement and start providing support to the entity responsible for design and implementation of the auctions (the Auction Administrator ). 2. Objectives The key objectives of this assignment are to: 1) Provide support to the Auction Administrator on coordination between the different entities involved in the competitive procurement process (including but not limited to the Ukrainian authorities, Entity responsible for setting auction targets, the TSO, etc.) and create and be responsible for a steering committee and a working group between the relevant stakeholders of the competitive procurement process (including all entities listed previously as well as the EBRD, other IFIs or financial institutions, renewable energy developers, NGOs etc.); 2) Develop a detailed design for a competitive bidding process for supporting renewable energy, accounting for current arrangements, renewable energy targets and market context. The final design should be lean, effective, implementable and accountable to facilitate implementation of the auctions and achieve a transparent, private sector lead competition ultimately benefitting the Ukrainian consumers and economy. Among other elements, the Consultant is expected to: a. Recommend the institutional and financing arrangements for the entity that will be the counterparty for the support contract with renewable energy producers selected in the competitive bidding process; b. Advise the Auction Administrator on the transition to a mechanism by which support to renewable energy is provided in relation to a reference electricity market price; Page 3 of 11

4 3) Develop and prepare, up to the final version, all the tender related documentation required for the deployment of pilot competitive procurement scheme(s) for onshore wind-based and solar PV projects, i.e., the Request for Proposals documentation ( the RFP ) and provide support to the Auction Administrator on providing input on finalising the Power Purchase Agreement ( PPA ) In conducting this assignment the Consultant should account for the legal and regulatory framework, sectoral strategies, and market context; and 4) Provide the necessary support to the Auction Administrator in implementing the pilot auction(s). 3. Scope of Work Reflecting the objectives of the Assignment, the Consultant will need to undertake a number of tasks as follows: Part 1: Coordinate and cooperate the different entities involved in the competitive procurement process and support the Auction Administrator in the creation and administration of a steering committee and a working group to present the deliverables. Task 1: Provide support on the coordination between the entities involved in the competitive procurement process: 1) Liaise with the entities involved in the competitive procurement process (including but not limited to the entity responsible for target setting, the Auctions Administrator, the TSO, etc.) to ensure that: a. Roles and responsibilities of each entity are well defined and understood; b. Recommendations and decisions of all entities as well as feedback from stakeholders are circulated to all parties c. Decisions of all entities are aligned; and d. Timelines of all entities are aligned. Task 2: Support the Auction Administration during meetings with key stakeholders, including but not limited to the Authorities, the EBRD, other IFIs and bilateral donors, such as the Energy Community Secretariat, USAID consultant, renewable energy developers, industry associations and any relevant stakeholders to present, discuss and collect feedback on the decisions and documents of the competitive procurement process as detailed in Part 2 to 4 below. Task 3: Support the Auction Administration on the creation and administration of a steering committee with high-level, senior staff of the Ukrainian authorities, entities involved in the competitive procurement process, the Bank and any relevant parties involved in the competitive procurement process. The committee who will meet on a frequent basis (every 6 weeks) to discuss and approve deliverables, timelines as well as take decisions on other important issues of the assignment. Task 4: Support the Auction Administration on the creation and administration of a working group including representatives of all entities involved in the competitive procurement process, the Ukrainian authorities, IFIs, renewable energy developers, other consultants and any other relevant stakeholders. The working group will, based on the decisions of the steering committee, present and discuss the deliverables and more granular issues arising in the design of the competitive procurement scheme. Page 4 of 11

5 Task 5: Coordinate with other potential technical cooperation activities supported by EBRD in the sphere of renewable energy in Ukraine. Part 2: Develop a detailed design and strengthen the overall legal and regulatory framework for a competitive bidding process (i.e. RE auctions) for the procurement of renewable energy 1 Task 6: Review of existing legislation and materials related to ongoing reforms including, but not limited to: 1) Current primary and secondary legislation relevant to renewable energy, including but not necessarily limited to: a. Electricity law; b. Law on the promotion of the use or energy from renewable sources ( RES Law ); c. Any secondary legislation relevant to the operation of renewables; d. Materials related to recent experience of projects under the feed-in-tariff scheme - in particular identifying any areas of the overall regulatory framework that can be improved; and e. Ukraine EU Accession treaty and the Energy Community Treaty. 2) Current primary and secondary legislation relevant for competitive procurement processes in Ukraine which are relevant for the purpose of renewable auctions but not necessarily limited to: a. Relevant experience in oil and gas upstream auctions; b. The relevant experience from electricity sector SOEs (such as Ukrenergo, Energorynok, etc.) in procuring services or products; and c. Relevant experience in the privatizations of energy assets in Ukraine (such as Oblenergo privatizations); 3) Plans for the development of renewable energy and electricity market reforms (including any law amendment proposals); 4) Outputs of work-streams relevant to renewable energy that are being undertaken by other international development partners. The scope of the review will be limited, and its primary purpose is to provide an overview of the current status for the Auction Administrator and the Bank, as well as to inform the work of the Consultant in the remaining tasks. Task 7: Analyse the key criteria and considerations on the design of a competitive procurement and assess different options related to each of the design choices in Task 8 below, identifying the trade-offs associated with each option and how they can be expected to affect the outcome of the process (e.g., by transferring risks or costs between the national entities and developers). In all cases, the Consultant should ensure that the recommendations lead to a bankable support framework (e.g., currency indexation, credit-worthiness of the support counterparty, etc.).the Consultant should consider and account for: 1 For the purposes of the present document the term "auctions" refers to approaches that share the common feature of relying on a competitive process rather than an administrative determination, which includes different types of competitive bidding processes ranging from simple tenders to more complex selection methods. Page 5 of 11

6 1) Key criteria for designing competitive procurement process, including but not limited to: a. The overall framework for the competitive process; b. Choices relating to what is being procured; c. Choices relating to the selection process; and d. The mechanism for the delivery of renewable energy. 2) Key considerations related to the market context and specifics of Ukraine, including but not limited to: a. The Ukrainian electricity system and context, including broader plans for the development of the electricity sector; b. Ukraine s renewable energy targets over the short, mid and long term; c. The likelihood of attracting private sector developers and investors; d. The impact of the recommendations on end-user tariffs; e. The potential to expand the programme in the future; and f. Feedback from stakeholders in line with Part 1 of this ToR and through formal consultations. Task 8: Develop detailed recommendations for the design of a competitive procurement scheme for renewable energy. 1) The recommendations should be compliant with: a. The criteria set out under Tasks 6 and 7 above; b. EU s Guidelines on State aid for environmental protection and energy ; and c. Results and recommendations of reports done by other consultants on the competitive procurement process in Ukraine. 2) These recommendations should be prepared in the form of a detailed Design Document, which should include a timeline for the auctions (covering, for example, the RFQ stage, submission of EoIs, RFP, interaction with bidders, bid submission windows, financial close, commissioning) and consider the following: a. Selection mechanism for example, simple tenders or more complex selection methods involving successive rounds; b. The size of the overall auction and limitations on the sizes of individual projects under the auction; c. Arrangements for technology (e.g. separate auctions for solar and wind renewable energy sources, or a combined auction covering both technologies); d. Arrangements for land, including for example: e. Whether the auction should be site-specific, with the site selected by the Auction Administrator, or whether site selection should be done by prospective bidders. f. Depending on the recommendation, the Consultant should advise on the arrangement surrounding the specification of the site. For example, g. In the case of site selection by the Auction Administrator, provide the criteria for selecting a specific site, types of information should the Auction Administrator to be shares with prospective bidders, etc.; h. In the case of site selection by bidders, the requirements for connections to the grid to be set by the Auction Administrator to ensure that different bids are comparable; and Page 6 of 11

7 i. The arrangements to be used for permitting and the assessment of environmental and social impacts; j. Eligibility criteria for bidders to demonstrate that they possess the technical capacity to deliver the project; k. Eligibility criteria for bidders to demonstrate that they possess the financial capacity to deliver the project; l. Eligibility criteria for bidders to demonstrate their legal standing, and the acceptable legal company structures of bidders; m. The disclosure requirements for bidders to ensure the adequate level of transparency of the competitive process (such as beneficial ownership disclosure); n. Measures to ensure that successful bidders deliver the project with the requested characteristics. This should include recommendations on the sizes of bid bonds and completion bonds, and the practical arrangements surrounding them (for example, the associated timelines, acceptable creditworthiness of providers, contractual arrangements underpinning their use, etc.). o. Selection criteria (e.g. price only, following assessment of technical and financial qualification); p. Basis for determining the level of support awarded (e.g. pay-as-bid); and q. Additional measures that might be used to enhance the bankability of the project by changing the allocation of risks faced by investors (e.g. guarantees); Task 9: Recommend the institutional, regulatory and financing arrangements to be implemented by the Auction Administrator. The Consultant s recommendations should cover: 1) Assess the needs of the Auction Administrator in terms of both human and technical (such as software) capacities to perform the activities envisaged in Task.2 2) How the Auction Administrator should be funded (for example, directly from public funds or recovered from other market participants such as consumers) and, if appropriate, how its revenues should be regulated; 3) The mechanisms and secondary regulations needed for the functioning of the Auction Administrator; 4) The mechanisms and secondary regulations needed for the successful cooperation between the Auction Administrator and all other stakeholders for the execution of the auctions; 5) Implications for the funding arrangements and the creditworthiness of the Auction Administrator of certain developments over time such as: a. The appointment as Auction Administrator of a different entity than the one having such status at the outset of a specific project (how to ensure the continuity of the support mechanism); b. A further transition to a support mechanism that is based on market prices (i.e., Contracts for Difference) in the future; and 6) Additional measures, if any, that should be used to promote the effectiveness of the auction. In making the recommendations, the Consultant should assess a number of factors in particular, the impact of different options on the creditworthiness of the support counterparty, and the distributional impacts of the funding arrangements. Page 7 of 11

8 Task 10: Advise on the structure of a support mechanism for renewables where support is provided in relation to a reference electricity price, which will be used for renewable energy projects once liquid electricity markets are fully functional. The Consultant should advise the Auction Administrator on several aspects of the support mechanism including but not limited to: 1) The criteria for establishing markets are liquid and are readily accessible to renewable energy producers; 2) Whether a different institution should be given the role of the Auction Administrator once support is provided in reference to an electricity market price; and 3) The design of the support mechanism, including the following (but not limited to): a. The different types of mechanisms, e.g., sliding (i.e. variable), feed-in premiums (i.e. a contract-for-difference), or constant/fixed feed-in premiums; b. The different market prices that may be used as reference prices; c. The time intervals over which the mechanism is defined; and d. Possible provisions for currency and/or inflation indexation. For each option, the Consultant should identify the associated trade-offs accounting for (among others) the effect on risk allocation between different stakeholders. As part of its analysis, the Consultant should draw upon the experience of these issues in EU countries. The Consultant is expected to provide a limited overview of the approaches used in these countries. Task 11: Based on the previously conducted review and on stakeholder feedback develop by-laws legislation and/or amendments to existing legislation that are needed for the implementation of the recommendations provided in the previous tasks. Part 3: Development of all the documentation required for the pilot Auction, i.e., the Request for Proposals (the RFP ) package(s) Task 12: Develop and prepare, up to the final version, the tender documentation package for pilot auction for solar, wind and other technologies as applicable. In developing the tender documentation package, the Consultant should consider questions relating but not limited to: 1) The roles and responsibilities of different institutions within the process for example, the Auction Administrator, the entity responsible for setting targets, the TSO, etc.; 2) Suggestions on limitations on the maximum size of individual projects under the Auction; 3) Arrangements for land, including for example: a. How the Auction Administrator should specify requirements for connections to the grid to ensure that different bids are comparable; b. What arrangements should be used for permitting and the assessment of environmental and social impacts; 4) Eligibility criteria for bidders to demonstrate that they possess the technical capacity to deliver the project; 5) Eligibility criteria for bidders to demonstrate that they possess the financial capacity to deliver the project; 6) Eligibility criteria for bidders to demonstrate their legal standing, and the acceptable legal company structures of bidders; 7) The disclosure requirements for bidders to ensure the adequate level of transparency of the competitive process (such as beneficial ownership disclosure); Page 8 of 11

9 8) Measures to ensure the bidders credibility and successful bidders deliver the project with the requested characteristics. This should include arrangements surrounding bid and development/completion bonds and penalties for bidders due to delays or failure in delivering, including (but not limited to) the sizes of these bonds and penalties and the practical arrangements surrounding them (for example, the timelines associated with them, the acceptable creditworthiness of providers, the contractual arrangements underpinning their use, etc.); 9) Dispute resolution provisions that should apply to the bidding process and the steps leading up to project commissioning; 10) Decommissioning requirements, taking into account the potential use of the sites in future years; 11) Review the provisions for currency and/or inflation indexation of the support scheme in the RES law; 12) Additional measures that might be used to enhance the bankability of the project(s) by changing the allocation of risks faced by investors (e.g. guarantees, measures to assist bidders in obtaining permits); and 13) The timelines for the different stages of the Auction and the schedule of activities that should be followed (for example, consultations with stakeholders). The tender documentation package should include the timeline of the Auction (covering, for example, the RFQ stage, submission of EoIs, RFP, interaction with bidders, bid submission windows, financial close, commissioning), developed according to the national legislation in force; In developing the RFP, the Consultant should assess different options related to each of the elements detailed above, identifying the trade-offs associated with each option and how they can be expected to affect the outcome of the process, e.g., by transferring risks or costs between the national entities and developers. In all cases, the Consultant should ensure that the RFP will lead to a bankable support framework (e.g. currency indexation, credit-worthiness of the support counterparty, etc.) and a transparent procurement process that ensures projects are commissioned. The Consultant should also account for: a. The Ukrainian electricity system and context, including broader plans for the development of the electricity sector; b. Ukraine s renewable energy targets; c. Affordability concerns and funding available for covering the support provided to projects under the recommended specifications for the support scheme; d. The likelihood of attracting private sector developers and investors; and e. The potential to expand the programme in the future. Task 13: Provide support in providing input to relevant entities on finalising documentation needed for the implementation of the auction(s), including but not limited to: 1) Template support agreement (e.g. the PPA); 2) Template agreements for connection to the grid; 3) Template of land lease agreement; and 4) Final drafts of the bid forms. Page 9 of 11

10 In undertaking this task, the Consultant should seek to ensure consistency with legal requirements and an allocation of risk that will allow projects to securing financing for the tender to attract credible bidders. Task 14: Prepare a complete and comprehensive set of technical specifications for solar PV, onshore wind farms and other technologies, if applicable, to include in the RFP. The aim of this task is to ensure that any commissioned project meets the technological requirements of the Auction Administrator and the current technical international standards. In this context, the Consultant should advise on the technical elements that should be requested and considered for evaluation such as the EPC contract, the O&M contract, permitting and the construction and operation plans. In developing this set of technical specifications, the Consultant should account for requirements such as the protection alarms requirements; technical specification of telecommunication system; technical specifications of control, measuring, metering and protection; SCADA signal requirements; technical requirements for substation control and monitoring system; technical requirements for the electricity produced (harmonics, flicker etc.). Part 4: Implementation support to the Auction Administrator for the pilot auctions Task 15: Assist the Auction Administrator in responding to bidder clarifications at different stages of the bidding process, including but not limited to: 1) Bidders and stakeholder questions on draft RFPs; 2) Requests for further information prompted at the different stages of the evaluation; and 3) technical or legal assessment on changes proposed by bidders, if any Task 16: Assess the compliance of commercial proposals with criteria established in the RFP and report results of commercial offers. Task 17: Conduct further evaluation steps for the bidders selected for detailed assessment in line with the selection approach of the RFP. This will include: 1) Project-level technical assessment to ensure compliance with RFP requirements; 2) Assessment of technical capacity of bidding consortium to deliver the project; and 3) Assessment of financial capacity of the bidding consortium to secure financing (including reviews of financing plan). Task 18: Provide the Auction Administrator with assistance in conducting negotiations with the preferred bidders selected for each project. 4. Deliverables and timeline The provisional timeline for the key milestones and deliverables of this Assignment are as follows: 1) A kick-off meeting involving the Consultant, the Bank and the Auction Administrator to discuss the Assignment and agree which pieces of legislation, regulation, contracts, codes, strategy. The meeting will take place within 2 weeks from contract signing; 2) Inception Report, setting out what was agreed with the Auction Administrator during the kick-off meeting, is be prepared within 1 week from kick-off meeting; 3) First Report including findings and the Consultant s detailed recommendation for the design of the RE programme to be delivered within 4 weeks after the kick-off meeting; Page 10 of 11

11 4) First workshop where the Consultant will present in detail its recommendations of the First Report to the Auction Administrator and the Bank and discuss the recommendations. This meeting will take place in Kiev within 2 weeks after submission of the First Report; 5) Second Report, incorporating feedback from EBRD and the Auction Administrator on the First Report and provide an overview of the key legislative changes required for the agreed model to be implemented. Alongside the Second Report, the Consultant should provide marked-up versions (track-changes) of the reviewed legislation, regulations, codes, etc. making any changes required for the agreed model to be implemented. The Second Report is to be delivered 2 weeks after the first workshop. 6) Second workshop where the Consultant will present in detail its recommendations of the Second Report to the Auction Administrator and the Bank. This meeting will take place within 2 weeks after submission of the Second Report. 7) Draft version of the Design Document reflecting received feedback, if any, to be submitted within 4 weeks of the final meeting with the Auction Administrator; 8) Final version of the Design Document reflecting received feedback, if any, to be submitted within 2 weeks of the final meeting with the Auction Administrator; 9) Draft version of the tender documentation package for selected technologies; to be submitted within 4 weeks of the final meeting with the Auction Administrator; 10) Final version of the tender documentation packages, reflecting feedback received from all stakeholders and in agreement with the Auction Administrator to be submitted with 2 weeks for the final meetings; 11) Support to the relevant Auction Administrator for the implementation of the pilot Auction for certain aspects of such support (e.g., bid evaluation), the Consultant may be required to establish a project office in Ukraine to provide day-to-day support to the relevant Auction Administrator. Key milestones on implementation are likely to include: a. Preliminary evaluation (including associated bidder clarifications); b. Detailed evaluation (including further bidder clarifications and leading to deliverables such as a draft evaluation report); and c. Support during negotiations; 12) Final report outlining the work conducted. The exact schedule for the Assignment will be agreed during the inception phase between all parties in the kick-off meeting. It is envisaged for the Consultant to provide support on at least 6 rounds of auctions (two solar, two wind, two other technologies), which is currently equivalent of up to 2 years under the draft Law, as one round of each technology per year is envisaged. Implementation arrangements The Consultant will have an initial meeting with Auctions Administrator at the start of the assignment to refine the scope of each task. The Consultant will also have a meeting with Auctions Administrator to present its recommendations. The assignment will be managed and overseen by the Bank s staff headed by the Bank s Operation Leader, whereas the Auctions Administrator will appoint a focal point who will be the counterparty of the Bank s Operation Leader. The Auctions Administrator will be responsible for coordinating the work of, and providing ongoing guidance to, the Consultant, as well as reviewing interim subject. The Consultant will provide its reports to both the Bank and the Auctions Administrator. Page 11 of 11