The Government of Uzbekistan has been undertaking major reforms in the power sector. Sector oversight functions have been consolidated under the Ministry of Energy (MoE) that was established in February 2019. A subsequent decision was made in March 2019 to unbundle Uzbekenergo into separate Generation (“Thermal Power Plants” JSC), Transmission (“NEGU” JSC), and Distribution (“Regional Electric Networks” JSC) companies.
The role of “TPP” JSC is entrusted with the carrying out the management of thermal power plants and electricity generating stations, which produce electric and thermal power.
In this regard, “TPP” JSC is inviting interested and qualified Individual Experts to submit their Motivational letter and CVs for the positions highlighted in Annex.
The Terms of Reference defining the minimum technical requirements for the proposed position are detailed in Annex.
Electronic submissions are acceptable and should be sent to the following email address no later than January 31, 2021, by clearly indicating the position being applied:
Annex:
MODERNIZATION AND UPGRADE OF TRANSMISSION SUBSTATIONS PROJECT
SELECTION OF INTERNATIONAL EXPERTS TO SUPPORT MANAGEMENT
OF JSC “THERMAL POWER PLANTS” (GENERATION COMPANY)
TERMS OF REFERENCE (ToR)
Country background. Uzbekistan ranks among the top 10–30 countries with the largest energy and mineral reserves, including natural gas, gold, copper, uranium, and coal. The country has significant potential in renewable energy sources, such as solar, wind, and hydro that can cater to the country’s growing energy needs and help the transition to a clean energy economy. Its strategic location—adjacent to some of the largest and fastest-growing economies in the world, including China, India, Russia, Pakistan, and Iran—presents an opportunity for the Central Asia region to become a crossroads for energy trade.
Beginning in 2017, the Government has embarked on a series of ambitious structural reforms that seek to transition from a relatively closed command economy to a market-oriented economy. In February of 2017 the Government approved a five-year Development Strategy for 2017-2021. At the core of the Strategy is a broad market-oriented reform policy. The Strategy is guided by an annual state program that is approved every year. The Strategy covers five priority areas: (i) enhancing the state and public institutions; (ii) securing the rule of law and reform of the judicial system; (iii) promoting economic development and liberalization; (iv) fostering the development of the social sphere; and (v) promoting security, inter-ethnic and religious tolerance, and constructive foreign policy.
Energy sector context. The energy sector is a major contributor to the country’s GDP (it accounted for about 20 percent of the total production output and 6 percent of GDP in 2017), one of the large revenue generators (energy exports—predominantly natural gas—accounted for 21 percent of total commodity exports in 2017), a major supporter of capital investments (close to 50 percent of total capital investments in 2016), and among the largest job providers (the sector employs about 170,000 people).
The electricity sector has been managed mainly by the vertically integrated Uzbekenergo (UE). The majority of the generation, transmission, and distribution assets were owned and operated by subsidiaries of UE. UE was composed of 45 enterprises and organizations. Electricity was generated by seven thermal power plants and three combined heat and power plants. Unitary enterprise Energosotish was the single buyer and supplier of electricity in the country. Uzelectroset was the system operator providing dispatch, transmission, and network services, and included seven regional high-voltage (HV) transmission network affiliate operators. Electricity was distributed to end-users by 14 regional electricity distribution companies. UE used to report to multiple deputy prime ministers, government ministries, and agencies. There was no clear delineation of policy-making, regulatory, and operational roles, and no regulator to oversee gas and electricity operations and quality of energy service delivery.
The power system is characterized by its high dependence on natural gas, which, while a major source of commodity exports, is depleting rapidly, thereby prompting the country to seek sustainable energy transition pathways. Natural gas accounts for 86 percent of the total primary energy supply. Electricity generation is also predominantly based on natural gas, with more than 80 percent of the total installed capacity of 12,5 GW in Uzbekistan being natural gas-based, followed by hydropower (above 10 percent), and coal (5 percent). The price of natural gas for domestic consumption is kept at about 50 percent of the prevailing rate for international export. As a result, natural gas has significant implicit subsidies, passed on to the power sector, due to the significant differences between its export and domestic prices.
The power sector is also characterized by rapidly aging energy supply infrastructure, which was largely constructed during Soviet times. On average, the transmission and distribution lines are approximately 30 years old. Electricity losses in Uzbekistan are relatively high, estimated at around 20 percent of net generation. Removing infrastructure bottlenecks constitutes a key element for creating jobs and increasing economic productivity.
Recent sector reforms. The Government recognizes that reliable electricity supply is necessary for sustainable economic growth and development. Therefore, the Government is moving ahead with ambitious reforms that seek to introduce competitive market principles in sector management and operations. Several recently undertaken critical reviews have identified the following key objectives for sector reform: (i) improving service delivery and reliability; (ii) leveraging private investment financing in energy generation and distribution; (iii) enhancing the financial viability of the sector; (iv) improving transparency and accountability of sector entities; and (v) unbundling sector SOEs as an initial step towards the adoption of market-based model for the energy sector in the future.
The Government has been undertaking major reforms in the power sector. Sector oversight functions have been consolidated under the Ministry of Energy (MoE) that was established in February 2019. A subsequent decision was made in March 2019 to unbundle UE into separate Generation (“Thermal Power Plants” JSC), Transmission (“National Grid of Uzbekistan” JSC), and Distribution (“Regional Distribution Network” JSC) companies.
Going forward, based on good international practices, the Government intends to properly sequence the reforms and take actions on the foundational aspects, along with the institutional reforms, which include, among others: (i) establishing an enabling corporate governance structure for the unbundled entities to be effectively functional; (ii) improving the sector policy and regulatory framework; (iii) undertaking energy tariff and subsidy reforms, along with introducing transparent cash flow and management, to ensure financial recovery of the sector utilities; (iv) initiating a clean energy transition with successful private investments on a competitive basis; (v) improving service delivery for the benefit of Uzbekistan’s citizens; and (vi) strengthening the human and institutional capacity of the Ministry of Energy and recently unbundled sector utilities:
The role of Thermal Power Plants (TPP) TPP is entrusted with the carrying out the management of thermal power plants and electricity generating stations, which produce electric and thermal power.
In this regard, TPP has decided to procure the services of a consulting firm to provide qualified international management experts for the above-mentioned three positions (“international managers”). The international managers shall be based in Tashkent and work full-time at TPP headquarters offices for a period starting with 1 year with potential annual extension for additional 2 years as mutually agreed between TPP and international managers and based on the performance of international managers.
Objective
The overall objective of appointing the international managers at TPP is to support improvements in the company’s institutional, financial and operational performance through providing qualified support for effective development and implementation of TPP’s organizational structure and management practices, investment programs and financing, information systems and digitalization program as well as human resources management and capacity building.
Scope of Services and Qualifications of International Managers
Chief Operating Officer: The Chief Operating Officer (COO) will provide day-to-day support for TPP overall generation system management, development and operations. The COO will assist TPP management in ensuring proper management of its operational business in accordance with best professional practices to enable the company evolving into a commercially run and corporatized entity. The Chief Operating Officer will play a (shadow) manager role. Specific areas of responsibilities for the Chief Operating Officer include, but are not limited to, the following:
Organizational Structure: Assess major business functions and boundaries between the generation company strategic business units and develop, oversee and report on implementation of measures to improve organizational structures for major business units. Coordinate the activity of technical departments of TPP;
- TPP KPIs: Develop, monitor and report on key performance indicators (KPIs) for TPP in line with the company’s objectives and business-plans and development programs;
- Human Resources: Assist in reviewing key management and staffing positions and required skills to manage and operate major business units of TPP. Develop, oversee and report on implementation of technical and managerial capacity building programs to sustain improvements of TPP management and operation;
- Business Plans: Coordinate development of TPP short- and medium-term business plans including monitoring and reporting on TPP progress in implementation of measures required for TPP by the Presidential Decree No.UP-6096;
- Strategic Development: Support and monitor the development and implementation of key strategic development and investment projects in TPP Business Plan.
- Reporting: Report to TPP Chairman and Supervisory Board on progress of work under the areas of responsibility and on key work activities related to the company’s operations and management.
Specific qualifications of the Chief Operating Officer should include:
- Qualifications and skills:
- University degree in an energy-related discipline (e.g. electrical engineering, energy economics, or energy finance, business and administration);
- 20 years of relevant experience including 10 years of experience in senior management positions of generation companies and/or IPPs;
- Professional working proficiency in Russian and/or English and/or Uzbek.
- General professional experience:
- excellent management, team coordination, and communication skills;
- skilled in reporting and organizing training;
- able to establish a rapport and good working relations with the clients.
- Specific professional experience:
- experience in a range of areas related to management and organization of a generation operation;
- knowledge of institutional, organizational, planning, administrative and regulatory framework as they may affect the performance of a viable generation enterprise.
- Chief Financial Officer: The Chief Financial Officer will be responsible for the finance and accounting activities at TPP including corporate and investment financing, budgeting, forecasting and reporting. Chief Financial Officer will play a (shadow) manager role. Specific areas of responsibilities for Chief Financial Officer include, but not limited to, the following:
- Economics, Finance and Accounting Management: Review TPP financial and accounting practices and processes and oversee development and implementation of plans to ensure that the economics, finance, accounting, cash flow, budgeting and debt management functions at TPP are carried out effectively in accordance of best practices and respective laws and legislation. Oversee modernization of financial and accounting systems. Coordinate the activity of economics, financial and accounting departments of TPP.
- Financial Reporting: Develop and implement measures to ensure TPP financial statements and audit reporting are timely developed based on National GAAP and International Financial Reporting Standards and respective laws and legislation;
- Financial Sustainability Plan: Coordinate development and monitor implementation of a Financial Sustainability Plan to assist TPP reach and maintain financial sustainability in the medium and long terms;
- Credit Rating Roadmap: Coordinate development and support implementation of a roadmap for obtaining a credit rating for TPP from an internationally reputable rating agency and access commercial financing in the medium to long term;
- Investment Financing: Coordinate with TPP management and investment department on management and budgeting of short term and long-term financing for TPP investment programs;
Reporting: Report to TPP Chairman and Supervisory Board on progress of work under areas of responsibility and on key work activities related to the company financial and accounting operation.
Specific qualifications the Chief Financial Officer should include:
- Qualifications and skills:
- University degree in economics, finance, accounting, business administration;
- 15 years of relevant experience including more than 10 years of senior position in corporate financing and management preferably in energy utilities;
- Professional working proficiency in Russian and/or English and/or Uzbek.
- General professional experience:
- excellent management, team coordination, and communication skills;
- skilled in reporting and organizing training;
- able to establish a rapport and good working relations with the clients.
- Specific professional experience:
- experience in a range of areas related to finance and accounting, cash flow management, budgeting and financial reporting;
- knowledge of institutional, organizational, investment financing and regulatory aspects of energy and generating companies.
- Chief Digital Officer: The Chief Digital Officer will be responsible for management and operation of the information and telecommunication systems at TPP. Chief Digital Officer will play a (shadow) manager role. Specific areas of responsibilities for Chief Digital Officer include, but not limited to, the following:
- Information systems and business processes: Review adequacy of TPP information systems and ensure they function effectively. Develop and oversee implementation of a plan to modernize TPP information systems necessary for effective functioning of TPP business processes. Support the development and implementation of TPP digitalization program;
- Staff Organisation and System Support: Ensure that staffing levels, equipment and systems are adequate to fulfil the functions of the IT Support section. Ensure that staff is adequately qualified and trained, maintain an overview of training needs, and organise necessary training to ensure effective deployment and utilization of IT system across TPP organization. Coordinate the activity of IT departments and subsidiaries of TPP;
- Reporting: Report to TPP Chairman and Supervisory Board on progress of work under areas of responsibility and on key work activities related to the company IT systems and processes.
Specific qualifications the Chief Digital Officer should include:
- Qualifications and skills:
- University degree in information technology, telecommunication, or equivalent;
- 15 years of relevant experience including more than 7 years of senior position; in corporate information technology and management;
- Professional working proficiency in Russian and/or English and/or Uzbek.
- General professional experience:
- excellent management, team coordination, and communication skills;
- skilled in reporting and organizing training;
- able to establish a rapport and good working relations with the clients.
- Specific professional experience:
- experience in a range of areas related to information technology and systems, telecommunication, enterprise resource planning (ERP) and SCADA systems;
- proven experience in procurement and operation of IT systems.
Duration, Timing and Work Arrangements
- This Contract is expected to commence in March 2021. The contract duration will initially be 12 (twelve) months with a possibility of yearly renewal for another two years upon satisfactory performance and mutual agreement.
- The international managers are expected to be based in Tashkent, Uzbekistan and work out of the TPP offices for the entire duration of this assignment.
- The international managers will report to TPP Chairman, TPP Supervisory Board, the Ministry of Energy and other relevant bodies as specified in TPP Articles.
- The international managers are expected to also be involved in IFI projects and technical assistance supporting TPP in relevant areas.
- The consulting firms providing candidates for the proposed international managers position are expected to support and oversee the performance of their candidates, if selected and contracted including ensuring continuity of their services over the agreed period of the contracts.
- Also, consultants can be hired for the required positions on individual basis.
Selection Method
The selection method for this assignment is “Quality and Cost Based Selection” (QCBS)
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