The EBRD, Naftogaz of Ukraine (NAK) and the Ministry of Ecology and Natural Resources have agreed to cooperate on a programme for the measurement and reduction of methane fugitive emissions along the gas infrastructure (from upstream to distribution) owned by NAK in Ukraine (the Programme).
Methane fugitive emissions consist in losses of gas along the gas supply chain from upstream production, to processing and transportation, to final distribution. The most typical sources of methane emissions include:
• equipment leaks
• process venting
• evaporation losses
• disposal of waste gas streams
• other unintentional emissions and equipment failures
Methane emissions are a significant economic loss but also an important source of greenhouse gas emissions. Methane, in fact, has a very high impact on global warming, between 28 and 84 times higher than CO2 (depending on the timeframe of impact analysis). For this reason, reducing methane emissions is a very powerful action to contribute to the overall reduction of greenhouse gas (“GHG”) emissions and the fulfilment of national commitments towards the Paris Agreement on climate change.
According to the latest GHG inventory formally submitted by the country to the UNFCCC in May 2018, in 2016 the total GHG emissions due to methane fugitive emissions was 27.43 Mt from the gas supply chain only, nearly 15% of the total GHG emissions of the country.
The Bank wish to engage a consultant to assist the EBRD, in close cooperation with the Ministry of Ecology and Natural Resources, and Naftogaz with the implementation of the Programme, the main objectives of which are:
· Improving accuracy of methane emissions measurement data.
· Introducing a robust inventory of methane emissions as well as procedures and templates for periodic reporting.
· Developing a roadmap for reducing methane emissions, comprising of technical and economic studies for actions, improvements and investment for reducing methane emissions along the gas supply chain (upstream, midstream and downstream).
· Providing policy dialogue on the improvement of policies and regulations on methane emissions in the gas sector.
The consultancy services associated to the implementation of the Programme will take full account of the existing studies, surveys, reports, procedures and regulations in place in Ukraine.
For avoidance of doubt, in the following reference to methane emissions will always implicitly refer to emissions in the gas sector only, from upstream production, to transportation and distribution. Emissions at the points of end use (power generation, municipal, industrial, etc.) or emissions of methane from other sectors are excluded from the scope of work.
Framework Contract for the Programme
The Bank intends to enter into a Framework Contract with one (1) consultant (Framework Consultant or the Consultant) to enable the Bank to call upon a pre-qualified firm from which it can quickly and efficiently obtain reliable services. The Framework Contract will establish, in advance, fee rates for experts, the contract terms and agreements, and procedures that will govern individual assignments (Assignments or Call-offs) to be required to implement the Programme. Under the Framework Contract the Bank will have the option, but not the obligation, to place individual Assignments with the selected Framework Consultant.
The Bank may send to the selected Framework Consultant specific Terms of Reference for the Assignment (Specific ToR). The Specific ToR will include a description of the tasks to be performed, time-schedules and reporting instructions. The Framework Consultant should respond by sending to the Bank a technical and financial proposal for the Assignment together with details of the Expert(s) proposed to carry out the work. The Bank will then assess the response(s) and – subject to successful negotiations - issue a call-off notice (Call-Off Notice) for the individual Assignment.
Description of individual Assignments (Call-offs)
Consultancy services for individual Assignments are expected to include the following:
1. Pilot measurement surveys
• Review current practices of measurement or estimation of methane emissions as implemented by the Company, other sector players, the Ministries and the Regulator. It is recognised that methods for top-down monitoring fugitive methane emissions is rapidly evolving, and therefore this task must include a review of current literature covering fixed sources, mobile on ground sources, mobile aerial unmanned sources, mobile aerial manned sources and satellite sources for such monitoring. This review should focus on accuracy, precision and resolution of the various data collection devices/imaginf systems and the benefits and drawbacks of the various data collection devices and modes of collection (ie, stationary, ground transportation, aerial and satellite) for this specific assignment. This review must inform the data collection task;
• Plan and implement a pilot methane emission measurement campaign in selected regions of the country; it is anticipated that the measurement campaign will rely on a combination of remotely-operated (e.g. airborne surveys) and field measurements. The method used for this task must be informed by the review of available technologies and be selected to be fit for the purpose of this task. Further, this task may require bottom up verification/ground truthing through the collection/analysis of air samples for methane in the areas monitored remotely. It is suggested that seasonal variations be considered for the timing of the data collection tasks;
• Critically review the results of the measurement campaign and compare results with existing estimates/measurements for the regions;
2. Review and improvement of methane emissions MRV and inventory
• Review current practices and procedures for the periodic reporting and national inventory of methane emissions;
• Based on international best practice and existing Measurement, Reporting and Verification (“MRV”) standards in Ukraine (if any), produce suitable MRV templates to be rolled out in the sector;
• Develop adequate disclosure templates and procedures for the periodic reporting of aggregated/disaggregated data on methane emissions.
3. Development of a viable roadmap for methane emission reduction
• Based on the available data at country level and the results of the pilot measurement campaign, perform a technical and economic study of viable interventions, O&M improvements, improved management practices, as well as specific investments for the reduction (or full elimination) of methane emissions along the gas supply chain. The analysis will be developed for each different viable solution separately and build from selected case studies to provide a higher level estimation of the possible impact at national level if the measure was rolled out across the relevant segment of the supply chain.
• Based on the results of the technical and economic analysis, rank the various options from the least to the most impactful (from technical and economic perspective) and develop a list of priority projects and, as a result, a national roadmap which combines the most effective components.
• Define of suitable financial approaches for the implementation of the roadmap through lending, capex and opex needs.
4. Support on improvement of policies and regulations
• Review existing sector standards on minimisation of methane emissions in the infrastructure;
• Review existing regulation, policies or sector standards for the periodic measurement and management of methane emissions;
• Review the gas network code and grid operation agreements and provide recommendations on how provisions for fugitive methane emissions could be improved.
4. Dissemination of results and knowledge transfer
• Organise targeted seminars for a broader audience on the results of the Programme, to report and disseminate the results of the studies on scale, impact and solutions of viable methane emission reduction programmes.
Status of Selection Process: Interested firms or groups of firms are hereby invited to submit expressions of interest.
Programme Start Date and Duration: The Programme is expected to start in January 2019. The selected Framework Consultant will be engaged via a Framework Contract with a validity period of up to 2 years.
Cost Estimate for the Programme and Assignments: EUR 1,000,000 (exclusive of VAT). Subject to specific needs of the Bank, availability of funding, and the performance of the selected Framework Consultant the Framework Contract may be extended beyond the current scope.
The Consultant must determine whether any VAT would be chargeable on the services and the basis for that determination, without taking into consideration the special status of the Bank as an IFI and state this to the Bank in their response to the Invitation for Expressions of Interest. To the extent that a Consultant incurs input VAT on goods and services purchased in connection with the provision of services (e.g. VAT on airline ticket) which is not otherwise recoverable by the consultant from the local tax authority, the gross cost to the consultant of such expenses shall be treated as a reimbursable expense.
Funding Source: This Programme is expected to be funded by EBRD Technical Cooperation Funds Programme. Please note that selection and contracting will be subject to the availability