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REQUEST FOR PROPOSALS (RFP)

(Under Procurement Rules of the Ministry of New & Renewable Energy, Government of India)

ForDEVELOPMENT OF STANDARDS, CERTIFICATION,

TEST PROCEDURES AND TEST FACILITIES

Under theUNDP/GEF GLOBAL SOLAR WATER HEATING MARKET TRANSFORMATION AND STRENGTHENING INITIATIVE:

INDIA COUNTRY PROGRAM

PROJECT MANAGEMENT UNITGLOBAL SOLAR WATER HEATING PROJECT

MINISTRY OF NEW AND RENEWABLE ENERGY

BLOCK NO. 14, CGO COMPLEX, LODHI ROADNEW DELHI-110003

Telefax: 011-24361152

December, 2009

SECTION – 1

INVITATION OF BIDS

SECTION 1: INVITATION OF BIDS

The Ministry of New and Renewable Energy, Government of India, is implementing a UNDP / GEF assisted Project on “Global Solar Water Heating Market Transformation and Strengthening Initiative: India Country Program.” The objective of the project is to accelerate and sustain the solar water heating market growth in India and to use the experiences and lessons learned and promoting a similar growth in other countries. The project will contribute partially and leverage the 11th Plan target through installation of two million sq. m. of solar water heating systems. This will result in GHG Emission Reduction of 11 million tonnes of CO2. 2. The India Country Project has been taken up under a Global Project by the Ministry in the context of its National Programme. In order to accelerate development and deployment of solar water heating systems in the country, a modified programme of support was introduced by the Ministry in 2005. The main objective of the programme is to promote the widespread use of solar water heaters in the country through a combination of financial and promotional incentives, and other support measures so as to conserve electricity and other fossil fuels, apart from peak load shaving in cities and towns. Soft loans are provided to the users under the interest subsidy scheme through a network of financial institutions, public/private sector banks, scheduled co-operative banks, RBI approved non-banking financing companies, IREDA and its intermediaries. Overall fund management has been entrusted to IREDA. A total of 3.1 million sq. m. of collector area has so far been installed in the country for solar water heating, of which about 2 million sq. m. has been installed since 2005-06. A reasonable infrastructure has emerged and experience is available for manufacture and installation for solar water heating systems. A target of 5 million sq. m. has been set for the 11 th Plan (2007-12) and a goal of 20 million sq. m for 2022.

3. Technical and Financial Proposals are invited from international and national expert consortiums / institutions for consultancy services required for “Development of standards, certification, test procedures and test facilities”.

i) This Bid Document contains Terms of Reference and Instructions to Bidders for formulation and submission of proposals.

ii) The PMU reserves the right to alter any or all terms and conditions specified in this Bid Document. The terms and conditions governing the proposed assignment are not exhaustive and additional conditions, as may be mutually accepted, will be included in the Work Order / Contract Agreement. These conditions are also subject to

modifications or deletion listed herein and clearly indicates specific deviations, if any, considered absolutely necessary.

iii) The Bidders are free to make suggestions in their offer, in addition to the specified Scope of Work or Methodology, to meet the objectives of the proposed assignment.

iv) No Pre-bid meeting will be convened. Queries, if any, will be responded to by the PMU upto January 22, 2010.

v) At any time before the submission of proposals, the PMU may, for any reason, whether at its own initiative, or in response to a clarification requested by the bidder, carry out amendment(s) to the Documents. The amendment will be notified in writing or by Email or Fax to all Bidders and will be binding on them. The PMU may at its discretion extend the deadline for the submission of proposals. The contractual obligations shall be as per the terms and conditions in the Work Order issued to the successful bidder at a later stage.

vi) The number of assignments awarded under this UNDP/GEF Project for being carried out concurrently by a consultant group will be restricted to two assignments.

vii) The PMU reserves the right to reject all or any of the proposals without assigning any reason thereof.

viii) It may be noted that the costs of preparing the proposal and of negotiating the contract, including visits to the PMU, are not reimbursable, and the PMU is not bound to accept any of the proposals that may be submitted.

ix) The UNDP / GEF project goal, objectives & outcome, scope of work are given in Annex-I.

x) An overview of the National Program on Solar Water Heating is given at Annex-II.

xi) Information about the National Solar Water Heating Programme and Scheme is available on the Website – www.mnre.gov.in of the Ministry of New & Renewable Energy.

xii) The selected Bidder is expected to commerce the assignment on the date specified in the Work Order.

4. Sealed offers under two-bid system (Part-I: Techno-Commercial Bid & Part-II: Price Bid) for the above-mentioned assignment may be forwarded to National Project Manager, Project Management Unit, Global Solar Water Heating Project, Ministry of New & Renewable Energy, Block 14, CGO Complex, Lodi Road, New Delhi – 110003. Telefax: 011-24361152, E-mail: akgupta98@hotmail.com.

5. Last date for submission of proposals is 4.00 P.M. on January 29, 2010.

SECTION – 2

TERMS OF REFERENCE

SECTION – 2: TERMS OF REFERENCE

2.1 Introduction

India has witnessed considerable progress in the area of Solar Water Heating (SWH). A total of 3.1 million sq. m. of SWH collector area has so far been installed in the country, of which about 2 million sq. m. has been installed since 2005-06. Several initiatives taken by the Ministry of New & Renewable Energy (MNRE) in the last few years have resulted in acceleration in the pace of development. However, inspite of the progress, a large proportion of the potential remains underachieved. A target of 5 million sq. m. has been set for the 11th Plan (2007-12) and a goal of 20 million sq. m for 2022 under the Jawahar Lal Nehru National Solar Mission.

The UNDP/ GEF Global Solar Water Heating Project aims at accelerating the market development of solar water heating and at leveraging the Ministry’s National Programme by creating markets and widespread demand for solar water heating in different sectors in the country. The project aims at accelerating the market development of solar water heating and facilitating the installation of 5 million m2 of installed collector area by 2012.

In order to achieve scalability and to accelerate penetration in the 11th Plan period and beyond, there is a need to develop strong and effective Quality Assurance and Certification domain so that the supply chain can offer Quality Products and services for trouble-free operation of solar water heating systems. This will lead to increased consumer confidence in the technology.

Bureau of Indian Standards (BIS) have established standards for Flat Plate Collectors (FPC) and MNRE has established a network of test facilities in scientific institutions. Though Evacuated Tube Collectors (ETC) are increasingly being marketed, there is no specific BIS standard for ETC solar collectors. Development of performance standard for ETC collectors, and for solar water heating systems based on both types of collectors, is in progress.

In order to enhance the capacity of the supply chain for manufacturing and servicing of solar water heating systems, a National Quality System of standards, testing and certification needs to be developed to reflect the international State-of-the art on solar standards. Accordingly, an important output/ activity under the UNDP / GEF Project pertains to “Development of standards, certification, test procedures and test facilities”.

2.2 Objective

The objective is to review the current international and Indian status of quality assurance, certification and best practices for solar water heating systems; to develop a National Quality System; and, to prepare a comprehensive plan to implement upgradation and expansion of national standards and facilities, aimed at achieving the international levels.

2.3 Scope of Work

A quality assurance scheme, apart from internal quality issues (ISO 9000/14000 series), typically comprises: product standards that look at safety, performance and durability of the system components (such as collectors, tanks etc.) as well as the system as a whole (i.e. configuration of the components), and on-site installation; a methodology and procedure for testing; a certification system; and, environmental impact considerations for production, use and disposal of SWH systems, including chemicals and recycling.

The assignment will cover study of the international State-of-the art and national status of quality systems and services and develop a comprehensive system and implementation plan for standards, certification, test procedures and test facilities for solar water heating systems for the country. The scope of work will also cover review and adaptation of international best practices for design and installation of solar water heating systems in domestic (including multi-storeyed housing complexes), commercial, industrial and institutional sectors.

All relevant stakeholders such as the Bureau of Indian Standards (BIS), the Solar Energy Centre (SEC) of the Ministry of New and Renewable Energy, the Quality Council of India, the manufacturing and service industry, MNRE test centres and research institutions would need to be associated.

The assignment will broadly comprise three Tasks: (i) Review of international State-of-the art and existing national status; (ii) Development of a National Quality System for Solar Water Heating; and, (iii) Development of a time-bound Implementation Plan.

Task I: Review of international State-of-the art and existing national status (6 weeks)

Under this task, the sub-tasks would include a detailed compilation, review and analysis of:

International and national status of existing standards International and national status of existing certifications schemes Indian existing test facilities and random sampling/ testing procedures International status of existing best practices in SWH planning / installation

in different sectors

Task II: Development of a National Quality System for Solar Water Heating (12 weeks)

Under this task, the sub-tasks would include:

Updation / development of new standards for solar water heating products with adaptation of international products standards, where possible

Development of an Indian certification scheme for solar water heaters covering the process and required infrastructure (including the equipment required for the test laboratories)

Development of best practices for solar water heating installations in different sectors and demand segments in India with adaptation of international best practices, where possible

Task III: Development of a time-bound implementation plan (6 weeks)

Under this task, the sub-tasks would include:

Preparation of a comprehensive time-bound implementation plan for putting the standards and certification system in place and adoption of the best practices/ guidelines. The implementation plan will extend upto printing and publication of the standards and best practices for wider distribution. The plan would provide clearly defined roles and responsibilities of different stakeholders. A monitoring/ feedback framework will also be developed.

Development of measures and Government intervention for early penetration and adoption of product standards, certification scheme and best practices.

Development of training course, guides and other reference material for installers of solar water heating systems and to undertake a training programme for first set of trainers.

Develop information tools to inform stakeholders including planners, installers and users about the National Quality System.

In all the tasks, appropriate workshops stakeholder consultations may be held to obtain inputs and suggestions.

2.4 Format for the Proposal

Proposals for the assignment against the above-mentioned scope of work may include the following:

i) Approach / Methodology ii) Task / Sub-task wise time schedule

iii) Expertise and experience of the consortium / institution in the related area of work, including the work done and key experts available for the assignment

2.5 Deliverables and Time for Completion of the Assignment

At the end of each Task, a review meeting would be held to review the work/ findings, for course corrections, if any, and discussion of the work plan for the next Task. The durations given for each Task are indicative and could be modified and accordingly provided in the Task / Sub-task wise schedule.

The assignment has to be completed within a period of 28 Weeks from the date of award. A draft report will be required to be submitted at the end of 24 weeks. PMU will carry out a review of the draft report within two weeks. The final report will be required to be submitted thereafter in two weeks upon receiving comments on the draft report.

2.6 Terms of Payment

i) 25% of the approved contract value will be released as advance against submission of Bank Guarantee/Indemnity Bond of equivalent amount along with the work order / sanction;

ii) 25% of the approved contract value will be released after review of the work completed upto Task -II; and

iii) the balance 50% of the contract value will be released after acceptance of the Final Report

SECTION – 3INSTRUCTIONS TO BIDDERS FOR

FORMULATION AND SUBMISSION OF PROPOSALS

SECTION – 3: INSTRUCTIONS TO BIDDER (S) FOR PREPARATION AND SUBMISSION OF PROPOSALS

The bidders are expected to examine all terms and conditions and instructions included in the document. Failure to provide all requested information will be at the bidders risk and may result in rejection of their proposal. Further, the bidders are requested to submit technical and financial proposals separately.

3.1. PREPARATION OF TECHNICAL PROPOSAL

During preparation of the technical proposal, particular attention should be given to the following:

3.1.1. A brief description of the Bidding Expert Consortium / Institution and an outline of recent experience on assignments of similar nature. The information as per format given at Appendix-I, to be furnished for each assignment, should indicate, inter-alia, the profiles of the experts, duration, contract amount and the Consortium / Institution’s involvement.

3.1.2. Any comments or suggestions on the scope of work and a description of the methodology and work plan, which Bidders propose to execute, illustrated with bar charts / graphics.

3.1.3. The composition of the proposed expert team, the tasks which would be assigned to each, time schedule, as per format given at Appendix-II.

3.1.4. Curriculum Vitae (C.V.) of the key experts as per the format given at Appendix-III providing details of the total experience and degree of responsibility held in various assignments during the past five years.

3.1.5. Estimates of the total time (person x months) for each expert.

3.1.6. The conditionalities/ deviations and variations/ exceptions to the RFP stipulations, if any, may be submitted as per format given at Appendix- IV

3.2. PREPARATION OF FINANCIAL PROPOSAL

3.2.1. The budget should cover all costs of consulting services including remuneration of the experts in the field and home office. The estimate should also include the time required for reviewing and incorporating comments on the draft report.

3.2.2. The budget should cover cost of preparation of reports, and other related expenses. The break-up of the total consultancy fee may be reflected against each major activity.

3.2.3. The financial proposal must take into account all the tax liabilities such as service tax, income tax, cost of insurance etc. However, these liabilities may be indicated separately in the proposal.

3.2.4. UNDP rates for DSA and travel will be applicable for international consultants.

3.2.5. The financial proposal should be prepared using, but not limited to, the formats given at Appendix – V (A&B).

3.3. EVALUATION AND PROCEDURE FOR SELECTION OF THE BIDDER

An Evaluation Committee will be constituted to evaluate the technical and financial proposals and recommend award of the consultancy assignment.

3.3.1. EVALUATION OF TECHNICAL AND FINANCIAL PROPOSALS

(i) Points for evaluation for technical proposals: Points

Approach/Methodology/Work Plan proposed 50

Relevant expertise/experience of the 25

consortium / institution Qualifications/experience of the key experts 25

-------- Total: 100

Financial proposals will be opened only for those bidders who obtain more than 50 points on the technical proposal. Eligible bidders will be invited to the opening of financial bids.

(ii) 75% weightage will be assigned to technical bids and 25% to financial bids.

(iii) The combined score of the technical and financial evaluation will be used to recommend the award of the consultancy assignment.

3.4. GENERAL INSTRUCTIONS 3.4.1. Bids that are incomplete in any respect, or those that are not consistent

with the requirements as specified in this Request For Proposal (RFP), or

those that do not adhere to formats, wherever specified, may be considered non-responsive and may be liable for rejection.

3.4.2. All communication and information should be provided in writing.

3.4.3. No change in, or supplementary information to a Bid, shall be accepted once submitted. However, the PMU reserves the right to seek additional information from the Bidder(s), if found necessary, during the course of evaluation of the Bid. Non-submission, incomplete submission or delayed submission of such additional information or clarifications sought by the PMU, may be a ground for rejecting the Bid.

3.4.4. The PMU reserves the right to reject any or all the Bids submitted in response to this Request for Proposals at any stage without assigning any reasons whatsoever.

3.4.5. The PMU reserves the right to change any or all of the provisions of the RFP Document. Such changes would be intimated to all parties.

3.4.6. Acknowledgement of the RFP Documents

The bidders who are interested to participate must fill in, sign and return the “Acknowledgement of RFP”, as per format given at Appendix – VI so as to reach the PMU at the given address.

3.4.7. The Authorised Signatory, as mentioned in the bid document, would be authorised to represent the Bidder(s) in its dealings with the PMU. In case the Bidder(s) wish to change the Authorised Signatory from the one identified at the RFP Stage, the Bidder(s) would be required to furnish a fresh Power of Attorney in the name of the new Signatory.

3.4.8. The Bid (and any additional information requested subsequently) shall bear the initials of the Authorised Signatory and stamp of the entity thereof on each page of the Bid.

3.4.9. The Bidder(s) shall be responsible for all the costs associated with the preparation of the Bid. The PMU shall not be responsible in any way for such costs, regardless of the conduct or outcome of this process.

3.5. SECURITY DEPOSIT

The successful bidder shall deposit 10% of the contract price as a security deposit in the form of Bank Guarantee within 15 days of issue of Work Order. The security deposit shall be in the form of an irrevocable Bank Guarantee issued by a Scheduled International / Indian Commercial Bank in favour of the PMU, as per the format given at Appendix – VII. This

security deposit shall be released only after successful completion of the consultancy assignment.

3.6. Submission of Proposals

The Bidders must submit one ‘Original’ and ‘Two Copies’ of the Technical proposal in one envelope, which must be sealed and clearly marked “Technical Proposal”. The Financial proposal must be kept in a separate envelope, which must be sealed and clearly marked “Financial Proposal”. Both these envelopes must then be placed in a single outer envelope, which must be sealed and addressed to the National Project Manager, Project Management Unit (PMU), Ministry of New and Renewable Energy, Govt. of India, Block No. 14, C.G.O. Complex, Lodi Road, New Delhi, India – 110003, Telefax: 011-24361152, Email: akgupta98@hotmail.com. The Outer Envelope must further be clearly marked: Bid for “UNDP/GEF GSWH - “Development of standards, certification, test procedures and test facilities”.

3.6.1. The Bidder(s) may submit their Bids by Registered Post / Courier or in Person, so as to reach the Ministry by the time and date stipulated by the PMU.

3.6.2. The Ministry shall not be responsible for any delay in submission of the Bids. Any Bid received by the Ministry after the deadline will not be accepted by the PMU.

3.6.3. The covering letter to be submitted by the Bidder along with technical bid should be as per format given at Appendix VIII.

Appendix-I

REFERENCES

Relevant Services Carried out in the Past Five YearsWhich Best Illustrate Qualification

The information should be provided in the following format for each reference assignment carried out, either individually, or by the consortium / institution, or as one of the major partners within another consortium, legally contracted by the client:

Assignment Name: Country:

Location within Country: Experts Provided by the Consortium / Institution:

Name of Client: No. of Experts:

Address: No. of Expert Months:

Start Date(Month/Year)

Completion Date:(Month/Year)

Approximate Value of Services: (in Rs./ USD):

Name of Associated Firm(s) if any: No. of Months of Experts provided by Associated Firm(s):

Name of Senior Staff (Project Director/ Coordinator, Team Leader) involved and functions performed:

Narrative Description of Project:

Description of Actual Services Provided by the Experts:

Appendix – II

COMPOSITION OF THE TEAM AND THE TASKSTO BE ASSIGNED TO EACH EXPERT

S. No. Name Position Task Assigned Involvement in Man months

1.

2.

3.

4.

Appendix – III

FORMAT OF CURRICULUM VITAE (CV)

Name of Expert:__________________________________________________

Affiliation: ______________________________________________________

Age: ___________________________________________________________

Nationality: ________________________________

Total work experience: ____________

Tasks / Sub-task Assigned:_________________________________________

Qualification:

Education:

Employment Record:

Languages:

Certification:

I, the undersigned, certify that to the best of my knowledge and belief, this bio-data correctly describes myself, my qualifications and my experience.

_______________________ Date: …………….Signature of Expert

Appendix- IV

FORMAT FOR SUBMISSION OF CONDITIONALITIES

To,

National Project ManagerProject Management Unit (PMU)Global Solar Water Heating ProjectMinistry of New and Renewable EnergyBlock No. 14,C.G.O. Complex Lodi Road, New Delhi- 110003Fax. No. 011- 24361152

Subject: Conditionalities/ Deviations on the RFP Proposal

Dear Sir,

Irrespective of whatever has been stated to the contrary anywhere else in our proposal, only following are conditionalities/deviations and variations and exceptions to the RFP stipulations. These deviations/variations are exhaustive. Further, we agree that additional conditions if any found elsewhere in the offer other than those stated below shall not be given effect to.…………………………………………………………………………………………Sl. No. Volume/ Statement of conditionalities/deviations Clause No/ Page No. …………………………………………………………………………………………

…………………………………………………………………………………………

No price is to be indicated in this Schedule

For and on behalf of:Signature:

(Authorised Signatory)Name of the Person :Designation :

Appendix-V(A)

FORMATS FOR SUBMISSION OF FINANCIAL PROPOSAL

To,National Project ManagerProject Management Unit (PMU),Global Solar Water Heating Project,Ministry of New and Renewable Energy,Block No. 14,C.G.O. Complex, Lodi Road, New Delhi- 110003

Fax. No. 011- 24361152

Dear Sir,

1 We have understood the instructions and the terms and conditions mentioned in the RFP Document and have thoroughly examined the RFP Document and are fully aware of the scope of work required. We are hereby submitting our “Financial Proposal” as per prescribed format in a separate sealed envelope.

2 The amount of consultancy fees quoted is Rs. _______

For and on behalf of:Signature:

(Authorised Signatory)Name of the Person :Designation :

Appendix –V(B)

SCHEDULE OF PRICES BY CATEGORY OF EXPENDITURE

Sl. No. Category Total in USD / Rupees

Remarks

1. Remuneration to Experts

2. Remuneration to Staff

3. Travel

4. Other Miscellaneous Costs Nature of costs to be identified and listed separately

5. Tax Liabiliies Service Tax Income Tax Any other

Total in Figures

Grand Total in Figures

Grand Total in Words

Appendix -VI

PROFORMA FOR NOTICE OF INTENT TO BID

(To be provided on the Letterhead of the Bidder)

National Project Manager,Project Management Unit (PMU),Global Solar Water Heating Project,Ministry of New and Renewable Energy,Block No. 14,C.G.O. Complex, Lodi Road, New Delhi- 110003Fax. No. 011- 24361152

Sub: Notice of Intent to Bid for the Consultancy Assignment on “UNDP/GEF GSWH - Development of standards, certification, test procedures and test facilities”

Dear Sir,

The undersigned, in his/her capacity as the representative of -------------------------, hereby gives notice of its intent to submit a proposal. The undersigned also confirms that the complete RFP Document has been received by us.

Name (Consortium / Institution)

Signature

Name of Signatory

Title of Signatory

Date of Receipt of RFP

Date of Transmittal of this form

APPENDIX-VII

BANK GUARANTEE FORMAT(To cover payment of Security Deposit)

On a stamp paper from Scheduled International / National Commercial Bank

ToNational Project Manager,Project Management Unit (PMU),Global Solar Water Heating Project,Ministry of New and Renewable Energy,Block No. 14,C.G.O. Complex, Lodi Road, New Delhi- 110003Fax. No. 011- 24361152

Dear Sirs,

In consideration of your agreeing to accept Bank Guarantee for Rs…………….. towards Security Deposit, Messrs. …………………………. Having its/ their office/ registered office at ……………………………. (hereinafter called the contractor) towards Security Deposit for the due performance of the Contract entered into by them for the ………………………………. at …………………………………… in accordance with the due fulfilment of the said Contract or of the terms and conditions contained therein, we hereby undertake and agree to indemnify and keep you indemnified to the extent of USD / Rs. ………. (USD/ Rupees …………………………………………………………Only.)

In the event of any loss or damages, costs, charges or expenses caused to or suffered by you by reason of any breach of non-observance on the part of the Contractor of any of the terms and conditions contained in the said Contract, we shall on demand and without reference to the Contractor irrevocably and unconditionally pay you in full satisfaction of your demand the amounts claimed by you; provided that our liability under this guarantee shall not at any time exceed USD/ Rs. ……(USD/ Rupees ………………………………………… only).

The guarantee herein contained shall remain in full force and effect till you certify that the terms and conditions of the said contract have been fully and properly carried out by the contractor, and that the contractor has furnished necessary deposit or fresh guarantee towards his obligation during the Defect Liability Period of the works or till this guarantee is duly discharged by you in writing.

We also agree that your decision as to whether the contractor has committed any breach or non-observance of the terms and conditions of the said Contract shall be final and binding on us.

We undertake to pay to the Employer any money so demanded notwithstanding any dispute or disputes raised by the contractor(s) in any suit or proceeding pending before any court or Tribunal relating thereto, our liability under this present being absolute and unequivocal.

The payments made by us under this bond shall be a valid discharge of our liability for payment thereunder and the contractor(s) shall have no claim against us for making a such payment.

This guarantee shall continue to be in full force and effect upto and inclusive of………………………………….. Notwithstanding the above limitation, we shall honor and discharge the claims preferred by you within thirty days of the expiry of this guarantee.

We shall not revoke this guarantee during its currency except with your previous consent in writing.

This guarantee shall not be affected by any change in the constitution of our Bank or of the tenderer firm.

Your neglect or forbearance in the enforcement of the payment of any money, the payment whereof is intended to be hereby secured or the giving of time for the payment hereto shall in no way relieve us of our liability under this guarantee.

Dated this ………………. Day of ………….., 2010

Faithfully For……………………………

Signature and seal of the bank ………………………………….. (AUTHORISED SIGNATORY)

Appendix-VIII

FORMAT FOR COVERING LETTER (COVER 1 SUBMISSION)

(The covering letter is to be submitted by the Bidder alongwith the Cover 1 of the Bid)

Date:Place:

To,National Project Manager, Project Management Unit (PMU),Global Solar Water Heating Project,Ministry of New and Renewable Energy,Block No. 14,C.G.O. Complex, Lodi Road, New Delhi- 110003Fax. No. 011- 24361152

Sub: Consultancy Assignment for “UNDP/GEF GSWH - Development of standards, certification, test procedures and test facilities”

Dear Sir,

Please find enclosed one (1) original + two (2) copies of our Bid in respect of selection of the consultancy organisation(s) for “UNDP/GEF GSWH - Development of standards, certification, test procedures and test facilities” in response to the Letter of Invitation issued by the National Project Manager.

We hereby confirm the following:

1. The Bid is being submitted by (name of the Bidding Consortium / Institution) who is the Bidder, bidding for selection as the consultancy organization for preparation of said Report in accordance with the conditions stipulated in the RFP Document.

2. We have examined in detail and have understood, and abide by all the terms and conditions stipulated in the RFP Document issued by the PMU and in any subsequent communication sent by the PMU. Our Bid is consistent with all the requirements of submission as stated in the RFP Document or in any of the subsequent communications from the PMU.

3. The information submitted in our Bid is complete, is strictly as per the requirements as stipulated in the RFP Document, and is correct to the best of our knowledge and understanding. We shall be solely responsible for any errors or omissions or misrepresentations in our Bid.

4. We confirm that our Bid contains/does not contain (strike out whichever is not applicable) Deviations/Conditionalities.

5. We confirm that all the terms and conditions submitted in our Bid are valid for acceptance during the period of Bid Validity.

6. We as the Bidder, designate Mr./Ms (mention name, designation, contact address, phone no., fax no., etc.) , as our representative who is authorised to perform all tasks including, but not limited to providing information, responding to enquiries, entering into contractual commitments/agreements on behalf of the Bidder.

7. We confirm that we shall adhere to the time frame for completion of the Project, as specified in the RFP.

For and on behalf of:Signature:

(Authorised Signatory)Name of the Person :Designation :Name of the Bidder :Address of the Bidder : Company Seal :

Annex-1Global Solar Water Heating Market

Transformation and Strengthening InitiativeIndia Country Program

****

Project Goal, Objective & Outcomes****

Project Goal and Objective

The goal of this national component of the global UNDPIUNEP Solar Water Heating Market Transformation and Strengthening Initiative is to accelerate and sustain the SWH market growth in India and to use the experiences and lessons learnt in promoting a similar growth in other countries. It will establish supportive regulatory environment, build up the market demand and strengthen the supply chain with the aim to reach the target of 10 million m2 of installed SWH systems in India by 2012. The average growth rate of 50% during these heavily supported market scale up years would enable this. The focus will be on; i) a reform of the supply chain to a higher level of professionalism ii) awareness building and iii) refinement and replication of incentives programs throughout India.

The long term goal of the project is to accelerate a sustainable market development of solar water heating in India with good quality products and services. At current rates of installation under the business as usual scenario, 3 million m2 of new solar thermal panels would be installed in India by 2020. Under the Alternative scenario, new solar thermal installations of 10 million m2 are expected by 2012, to which the GEF project is expected to contribute to at least 2 million m2. Even more importantly, however, the support provided by the GEF project is expected to facilitate sustainable grown also after the project by paying specific attention on the quality issues.

The GHG emission reduction resulting from this alternative scenario has been estimated at 11 million tons of C02 over 15 years lifetime for the GEF increment of 2 million m2 and over 50 million tons for 10 million m2. Since the subsidies on energy as well as SWH will decrease, UNEPIUNF and UNDP are independently supporting the development of a carbon finance opportunity, aggregated through the banks or other mechanisms that can replace government subsidy and sustain market growth.

Project Outcomes and Outputs

The project intervention is presented according to the logical framework approach. The essence of this approach is that outputs are clustered by outcomes: sustainable growth in demand by an i) enabling policy framework, ii) enhanced awareness and iii) financial instrument design, iv) supply of reliable technology and services and v) replication, which together will achieve the project objective.

In order to reach the stated goals, the intervention from GEF should primarily aim at creating professionalism in the supply chain and secondly at the dissemination of the learned lesions through India; including:

Introducing a system for certification, labelling or branding based on revised BIS standards;

Introducing a system of recognition of professional installers/ plumber~ and an associated working network of dealers throughout the country;

Increasing the level of knowledge in the supply chain through dissemination of available knowledge in the' world regarding designing, engineering, high level technologies (high temperature collectors, gas/solar systems, solar cooling),monitoring and diversity in applications;

Building capacity throughout the supply chain; and

Duplicating the successes in currently well doing regions in India to less explored regions, by creating awareness in rural areas with a focus on demonstration projects or SESCOs and by taking into account that the success factory may also differ.

Outcome 1: An enabling legal and regulatory framework to promote sustainable SWH market (policy).

The outputs and activities under this subcomponent will raise the awareness of the key national policy makers on the benefits of SWH and facilitate the development and adoption of a legal and regulatory framework conducive for sustainable development of the SWH market in India. Critical here are the state and municipal authorities struggling to meet energy needs.

Typical policy instruments to promote the SWH market include: 1) obligations to use solar water heaters in certain types of buildings, such as the Spanish, Cyprus, Mexico City and Israeli models: 2) Solar Water Heater requirements in the building regulations; 3) a regulatory framework for quality control and certification; and 4) different direct or indirect financial and fiscal incentives, as discussed earlier in this document.

The model Energy Conservation Building Code includes SWH and should be engaged to improve that requirement where possible. States will be encouraged to adopt the requirement and include industrial or commercial business requirements where feasible', SWH requirements should be harmonized across the States where possible.

In addition, the feasibility of other complementary or alternative measures can be explored such as:

Some utilities offer rate discounts for SWH users since peak demand can be reduced Some states offer property tax incentives for SWH Requirements for low flow shower heads also save hot water Obligation to install piping for hot water up to the roof of new buildings and on buildings undergoing a major renovation Abolition of regulations hampering the diffusion of solar thermal. In some areas, it is necessary to ask a permission to install a solar system on the roof. The long procedure discourages potential users. The permission may even not be granted, for example, due to aesthetic restrictions, often set without reflecting on the consequences for solar energy;

Household applications (dishwasher, washing machine) compatible with solar thermal systems (adapted to get hot water from pipes) should be widely available on the market. An "A" label should be given only in this case. Customers should be explicitly and clearly informed, if this is not the case; and Most hot water storage tanks sold in the market should be compatible with solar thermal, and make possible integration at a later time. Customers should be explicitly and clearly informed, should this not be the case.

Outcome 2: Enhanced awareness and capacity of the targeted end-users and building professionals to consider and integrate SWH systems into different types of buildings (information).

In many States of India, solar thermal is not yet perceived as a standard option. A market assessment is needed in order to understand why certain States and sectors have strong market while others do not. A techno-economic study would include use of the new Indian Meteorological Department Solar Atlas and surveys of stakeholders - particularly users to estimate market opportunities, but as well suppliers and installers. Building the trust and raising the awareness among the targeted end users, building constructors, architects, mechanical and HVAC engineers, plumbers, local government and business decision makers about the technical feasibility and the environmental and cost benefits of SWH technology are essential for positive market development.

The outputs and activities under this subcomponent will complement the marketing efforts of the private sector by raising the awareness of the targeted end-users on the benefits, economic feasibility and other characteristics influencing a positive purchasing decision. The SWH type of enterprises that assemble systems do not have facility for sputtering of low emissivity coatings nor manufacture of evacuated tube collectors. If the market growth is firmly established, additional manufacturing may take place in India. While the project will not promote any particular technology, information on products that are available internationally may influence local industry to seek higher performance products.

In order to fulfill their purpose, the campaigns and the information mechanisms and channels to be used need to be carefully designed to reach the actual decision makers. This can be either in a specific market segment (single-family house owners, hotels, larger public sector buildings, industrial facilities etc.) or a geographical area, in which the built environment, the climatic conditions, the solar thermal market structure as well as the psychological and economic preferences (or other priorities and decision making "drivers") of the targeted clients need to be taken into account. In areas where solar thermal is not yet widely used, demonstration projects can also be a useful tool to support awareness and promotion campaigns.

The activities will be coordinated by the PMU, which will seek to establish contacts and enter into cooperation with various information channels and program formats in TV and radio and use also printed materials (newspaper and magazine articles, leaflets, posters), public discussion events etc., in reaching its objectives. The design of the marketing campaign(s) is envisaged to be supported by professional market research and marketing companies. While the Ministry of New and Renewable Energy has been very active in public awareness, new strategies may include partnering promotion with industry associations and banks.

There is no need to start the preparation of public awareness material from the scratch, but useful materials exist at MNRE or can be made available through the knowledge management component of the global SWH project, which is further envisaged to cooperate and facilitate contacts with organizations such as European Solar Thermal Industry Federation (ESTIF), the International Solar Energy Society (ISES) as well as with SWH projects in other countries, from where results, experiences and best practices can be taken and applied for local conditions. To the extent possible, materials will also be drawn from the already existing, highly visible demonstration projects in India.

Outcome 3: Increased demand for SWH systems by the availability of attractive end-user financing mechanisms or other delivery models.

Component 3 is designed to generate demand for the technology through applicable consumer financing and, as applicable, financial support schemes with an objective to leverage financing for SWH investments through the ongoing and improved MNRE financing mechanisms. GEF resources under this component are not sought for the actual capitalization of any new financing instruments, but for technical assistance to support their design, development and launching. The project is seeking to combine the different available public and private resources into a coherent and sustainable public incentive and financial support scheme, which can accelerate the SWH market development and leverage additional commercial financing for SWH investments, while also taking into account the sustainability concerns. UNEP will provide technical assistance and knowledge sharing across regions while local consultants would be jointly supervised by UNEP and UNDP to support financial program design.

Outcome 4: A certification and quality control scheme applicable for Indian conditions and enhanced capacity of the supply chain to offer products and services promoting sustainable SWH market (technology and business skills).

Product Standards and Certification

After creating the demand for the technology, component 4 is about ensuring that consumers have a satisfactory experience with it. Certification and quality assurance contribute to a trouble free use of solar water heating and subsequently increase consumer confidence in the technology. As such, it should be seen as an explicit pad of awareness campaigns and all other incentives to stimulate the market and gain public acceptance.

A Quality Control scheme typically consists of:

product standards looking at safety, performance and durability of the system components (such as collectors, tanks etc.) as well as the system as a whole (i.e. configuration of the components); environmental impact considerations for production, use and disposal of,' SWH systems, including chemicals and recycling; a methodology for testing; and, a certification procedure (basically a vendor declaration of compliance with a standard and a pseudo-random sampling surveillance system)

Bureau of Indian Standards currently has standards in place for Indian manufactured flat plate collectors. Imported components of evacuated tube collectors are considered for acceptance by review of international testing by MNRE.

The system of SWH standards and certification will be developed in co-operation with the Bureau of Indian Standards. MNRE has initiated standards work for product testing and rating of solar collector panels but not systems or durability. A test procedure for a thermosyphon type solar water heating system was developed under a joint project by SEC and lIT, Bombay in 2003. The activities of this project will take into account, and as applicable, build on the results of these past activities, including support for upgrading testing facilities.

In developing the quality control scheme the project is also actively seeking to engage industry partners as well as concerned research and other development organizations involved in the testing procedures of solar collectors and solar water heating systems. SEC, MNRE can act as the focal point for this aspect.

The installation aspect is proposed to be handed by certified installers that are trained to a set of guidelines and their respective manufacturers requirements. The collector testing costs only USD 300 or so and is waived for imported goods that can show independent test results and certification.

MNRE also sees a need for multi-storey building guidelines for equitable hot water distribution and charges to individual water users. This may involve individual apartment systems or whole building systems with pumped re-circulation of hot water in a loop and hot water metering to individual apartments. The relevant engineering practices (ASHRAE, CIBSE) will be drawn on to develop appropriate design options for India.

The well developed ED/Committee of Europe for normalization of product standards and the Solar Keymark certification scheme are sought to be duplicated to the extent possible or at least used for general guidance to select appropriate issues, so as to serve harmonization and to provide a common baseline product quality.

At the product level, a set of requirements and criteria will be developed that proves the conformity of the product with the standards. At the current phase of market development, the criteria are mainly expected to look at technical quality issues: safety, performance and durability. All standards should be published in relevant and publicly accessible documents, available at a normal fee. A simplified version will be made available free for promotional use.

For the introduction .of a recognition scheme for SWH installers, the activities under this component will support the development of a course and exam for SWH installers. Each installer passing the exam will be recognized as a "Solar Trained Installer". The materials to be made available through the knowledge management component of the Global SWH project, including the ED supported SUNTRAIN programme, will be utilized to the extent possible and adapted to the Indian conditions.

While for the household system installation, the main target group for training will be the plumbers for the commercial building sector the training activities will focus on mechanical HVAC engineers. Integration of solar system in heating and cooling installations will be part of training scheme, and in particular for larger commercial solar systems, the technical engineering aspects will be addressed.

The training provided is also sought to be embedded into the curricula of vocational schools in order to be continued after the project. The training facilities can be combined with the testing facilities with an objective to provide the theoretical and practical background for designing,

building and installing solar thermal plants. The main content of the training can consist of: i) preconditions for solar energy utilization, ii) the solar resource by location, orientation and shadowing, iii) design of small and large-scale solar thermal systems, iv) types of collectors, their materials, and performance criteria, v) control, vi) manufacturing possibilities, vii) installation, viii) standards for solar thermal collectors and systems; and ix) test procedures and quality requirements.

Capacity Building of the Local Hardware Supply Chain

The establishment of the quality control/ improvement scheme discussed about will be complemented by technical assistance to the local SWH supply chain to meet the requirements and to improve the quality of their products and services in general. This technical support is not going to be limited to local manufacturers, but can also facilitate the access of international manufacturers to enter the market, either alone or through joint ventures, so as to promote competition and, as applicable, technology transfer.

Beside the training activities, the specific forms of technical assistance to be offered to the local supply chain are expected to consist of:

Study tours, match making missions and trade seminars can be organized for local SME's interested in import or manufacturing of SWH and in getting contact with foreign suppliers, experiences and lessons learnt, thereby facilitating technology transfer. The foreign contacts can aim at countries, which are well developed in solar market like China and Turkey. A spin-off effect of these missions can be that companies with the same interest can meet and, as applicable, form a basis for a national SWH industry or Trade Association.

A series of solar seminars can transfer know how for the various target groups: producers, importers, plumbers, planners, architects, mechanical and HVAC engineers, builders and housing associations. The program for the seminars will be compiled from product knowledge, knowledge of improved thermosyphon systems, theoretical backgrounds, costs, quality systems and other outcomes of the project – all prioritized towards the target groups. Technical materials, syllabus etc., will be prepared, distributed and made available also through the internet.

Support for evaluating the feasibility and for introducing new delivery and marketing approaches such as vendor financing or the scheme of “Guarantee Solar Results” piloted by some suppliers in other countries, including a specific performance contract similar to the one used by Energy Service Companies (ESCOs) in the energy efficiency field.

Outcome 5: The provided support institutionalized and the results, experiences and lessons learned documented and disseminated (including monitoring, learning, evaluation and other feedback for adaptive management).

Component 5 is designed to ensure continuing SWH market monitoring and promotion in India both during and after the project has ended, and to support next generation project designers and governments with experience and recommendations from the project by compiling and disseminating the project results and lessons learnt, thereby also serving the knowledge management component of the global SWH project. Furthermore, the information produced under this outcome will serve the adaptive management of the project.

Stakeholder Involvement

The key stakeholders to be involved in the implementation of the project will include:

MNRE is responsible for solar energy programs in India The State Nodal Agencies and municipalities for local policy and legislation The Bureau of Energy Efficiency is responsible for national energy efficiency

programs for buildings and will include solar water heating in their programs most notably in the Energy Conservation Building Code

MNRE has engaged 30 banks in the revised Solar Water Heating program and these will be an important group to consult. IRED A will organize these consultations as they are the Fund Manager for MNRE. These consultations are attempting to reduce finance barriers and speed up transactions through information sharing. UNEP Renewable Energy Finance Unit personnel will be included in these consultation processes to share international experience.

In addition, the project is seeking to involve:

Local solar water heating industry associations and individual providers; IIEC, International Institute for Energy Conservation for local projects and

developments, including international settings; Solar Energy Society of India for networking and advocacy on solar energy research

and deployment; and ICPCI, International Copper Promotion Centre India for Promotion and contacts with

manufacturers and installers.

In providing technical backstopping for country specific activities and working with international experts, major emphasis will be placed on making sure that the work will be done jointly and in close co-operation with local experts, government agencies and interest groups.

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Annex-IIMinistry of New and Renewable Energy

National Solar Water Heating Programme

BACKGROUND NOTE****

The gross potential for solar water heating systems in India has been estimated at 140 million sq. m. of collector area. Of this, 40 million sq.m. has been estimated as the realizable techno-economic potential at this stage. A total of 3.12 million sq. m. of collector area has so far been installed in the country for solar water heating. The achievement so far has been modest compared to the overall potential. However, a reasonable infrastructure has emerged and experience is available for manufacture and installation for solar water heating systems. A target of 5 million sq. m. has been set for the 11th Plan (2007-12) and a goal of 20 million sq. m for 2022.

Provisions of the Scheme

2. In order to accelerate development and deployment of solar water heating systems in the country, a modified programme of support was introduced by the Ministry in 2005. The main objective of the programme is to promote the widespread use of solar water heaters in the country through a combination of financial and promotional incentives, and other support measures so as to conserve electricity and other fossil fuels, apart from peak load shaving in cities and towns. Soft loans are provided to the users under the interest subsidy scheme through a network of financial institutions, public/private sector banks, scheduled co-operative banks, RBI approved non-banking financing companies, IREDA and its intermediaries. Interest subsidy is provided to enable loans to be extended at effective interest rates of 2% to domestic users, 3% to institutional users and 5% to industrial/commercial users. Interest free loans are available to domestic users in the North-Eastern States, Sikkim, Himachal Pradesh, Islands, J&K, Uttarakhand, Chattisgarh and Jharkhand. Overall fund management has been entrusted to IREDA. 34 banks and financial institutions are participating in the scheme through their branch network in different parts of the country. An incentive is also available for motivators who bring customers to banks/FIs. The Ministry has proposed priority sector lending for solar water heating systems. 3. Capital subsidy equivalent to upfront interest subsidy is available to institutions and commercial establishments that do not avail soft loans. Profit-making commercial and industrial establishments are entitled to 80% accelerated depreciation. In addition, capital subsidy is available to builders & developers/ development authorities/ housing boards/ co-operatives/ Group Housing Societies for providing solar water heating systems in new buildings and housing/ commercial/institutional complexes. Systems installed in ESCO mode, where hot water is supplied as an energy service, are also eligible for capital subsidy.

Regulations & Promotional Measures in States

4. A model regulation / building bye-law for installation of solar assisted water heating systems in new buildings was circulated by the Ministry of Urban Development to all States and Union Territories with a request for onward circulation to all local bodies for incorporation in their building bye-laws. Necessary orders have been issued in 21 States. 41 Municipal Corporations/Municipalities have so far amended their building bye-laws, or issued necessary GOs, in six States. Municipal Corporations are being encouraged to provide rebate in properly tax for those dwellings/buildings where solar water heating systems have been installed. Four Municipal Corporations i.e. Thane, Amravati, Nagpur and Durgapur have announced 6-10% rebate in the property tax for users of solar water heaters. State Electricity Regulatory Commissions (SERC) /utilities are being encouraged to provide rebates in electricity tariff to such users. The utilities in Rajasthan, West Bengal, Assam, Haryana, Uttarakhand and Karnataka are already providing such rebates up to Rs. 150 per month per domestic system. Incentives are available for municipal corporations and utilities that promote solar water heating.

Standards & Codes

5. BIS standards have been established for flat plate solar collectors alongwith appropriate test facilities. ETC based systems are also being promoted. Development of BIS performance standards for solar water heating systems based on both types of collectors is at an advanced stage.

6. Solar water heating systems have been incorporated in the new National Building Code. The Energy Conservation Act 2001 provides for suitable steps to be taken by the Bureau of Energy Efficiency (BEE) to prescribe guidelines for energy conservation buildings codes. Accordingly, BEE have developed the Energy Conservation Building Code (ECBC) which sets minimum energy efficiency standard for design and construction. Solar water heating systems are included among the building components covered under ECBC. Solar water heaters are required to meet at least 20% of the design capacity for water heating. ECBC is expected to impact and promote market development of various energy efficient products such as solar water heaters. An energy labeling scheme similar to the star rating scheme for air conditioners and refrigerators is also planned to promote efficient solar water heaters. 7. The Ministry has been promoting the design and construction of solar/ green/ energy efficient buildings based on solar passive techniques and active renewable energy systems. A National Rating System, GRIHA, has been developed indigenously keeping in view our climatic conditions and which is suitable for all types of buildings in different climatic zones of the country. The rating system includes a separate criterion which prescribes 70% or more of the annual energy required for heating water to be met through renewable energy based water heating systems, primarily solar hot water systems. Financial incentives are available for adoption of the National Rating System

with a view to promote large-scale design and construction of green buildings in the country. Manufacturing & Services

8. There are 64 BIS approved manufacturers of solar water heating systems based on flat plate collectors (FPC) and 65 MNRE approved suppliers of evacuated tube collector (ETC) based systems. They are eligible to supply solar water heating systems under the interest subsidy scheme. In order to promote technology upgradation in industry, soft loans are available to manufactures towards improvement in technology, expansion in production facilities etc. at a reduced interest rate through IREDA, with interest subsidy provided by MNRE. Support is available for training programmes for different stakeholders including trainers; installation and service personnel such as plumbers, mechanics etc; and, for entrepreneurs.

9. Akshay Urja Shops are being established for sale and service and repair of various renewable energy systems and devices including solar water heating systems. 301 shops have already been established or are being set up in various States. Soft loan assistance is available through IREDA for establishment of the shops and a recurring grant and incentive links to turnover is also available during the first two years of operation.

Mainstreaming of Solar Water Heating

10. Solar water heaters have become popular in Bangalore, Pune and several other cities in Karnataka, Maharashtra, Gujarat, Tamil Nadu and Andhra Pradesh. Efforts are being made to extend the coverage to other States and cities too. A special programme is being grown up to meet the solar water heating requirements for various end-uses in the Ladakh region. Efforts are also being made to promote solar water heating systems in hotels, hospitals and in industrial and commercial establishments. Various user ministries such as Urban Development, Tourism, Defence, Railways, Textiles, Health, Food Processing Industries etc. have been approached for adoption of solar water heating as part of the energy infrastructure under their respective sectors. Solar water heating among other renewable energy systems will also be a part of the infrastructure and services for the upcoming Commonwealth Games to be held in Delhi in 2010.

11. Efforts are being made to mainstream incorporation of solar water heating systems in design of new buildings and multi-storeyed housing complexes, as well as to integrate these systems in existing buildings through awareness campaigns and guide-books and design aids for planners, architects, developers, builders, engineers etc. Rebate in personal income tax has been proposed for installations in homes.

12. To cope with the rising demand of electricity in our towns and cities, especially during peak hours, the Ministry has recently launched a scheme on ‘Development of Solar Cities’. The scheme is aimed at assisting cities in assessing their present energy

consumption and preparing action plans/ setting clear targets for generating and conserving energy utilized in conducting urban services through energy efficiency and renewable energy interventions, including installation of solar water heating systems. Financial support is available to the urban local bodies for preparation of a Master Plan, setting up of a ‘Solar City Cell’ and various other support measures. 60 such solar cities are planned to be developed during the 11 th Plan. 12 solar cities have been approved and another 22 have been cleared in principle.

Publicity & Awareness

13. Extensive publicity and awareness campaigns are taken up through print and electronic media in a large number of cities in various States where potential for installation of solar water heating systems is high. Manufacturers are also provided support for publicity. A large number of seminars, workshops and business meets are organized with different stakeholder groups with focus on accelerating solar water heater deployment in different sectors. Awards have been instituted for best manufacturers and banks/ branches for outstanding performance during a year.

UNDP/GEF Project on Solar Water Heating

14. The Ministry is implementing a UNDP/UNEP/GEF project on “Global Solar Water Heating Market Transformation and Strengthening Initiative” under UNDP’s India Country Program. The objectives of the project are to accelerate and sustain the solar water heating market growth in India and to use the experiences and lessons learned in promoting a similar growth in other countries participating in the Global project; to establish a supportive policy and regulatory environment; to build up the market demand; and, to strengthen the supply chain. The project will contribute partially and leverage the 11th Plan target of five million sqm. through installation of two million sqm. of solar water heating systems. Five million sqm. will lead to 25 million tonnes of GHG emission reduction. UNDP/GEF Grant of USD 2 million has been provided for the Technical Assistance Project. The Project will provide support to the National Programme being implemented by the Ministry.

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