EY CONSULTING

The Ministry of Mines, Islamic Republic of Afghanistan has received financing from the International Development Association (IDA) under the Project: Sustainable Development of Natural Resources Project ll.

Under this consultancy project, the Ministry of Mines, intends to implement the following tasks:

Task 1- Literature Review and Consultation

Consultant shall review the Sufregas Natural Gas Strategy, 2004 as a starting point from which to consult current actors in Afghan gas development including but not limited to the Ministry of Mines, Ministry of Finance, donor project representatives. Consultant shall review the institutional arrangements in place supporting Afghan gas developments including cross-border activities and donor initiatives.

Task 2 -Sector Strategy

Issues to consider:

• Economies of scale are important: to match natural gas generation, 300 MW unit or more of an other fuel if to be cost competitive with gas
• Other fuels have significant environmental issues to deal with (air emissions, ash management, water).
• Coal plants are good for baseload generation -- they are not amenable to quick changes in power output.
• Hydropower is preferred when a right location for an environmentally-friendly design is amenable to both baseload and peaking power generation. Simplified run-of-river (partial diversion) on the upper Amu Darya has been considered but not yet acted upon.

Task 3 -Financial Modeling

3.1 Financial Models. Presently, natural gas prices are fixed by Government and in effect, subsidized. Consultant will work with MoM to develop financial models for natural gas prices and transport pricing.

3.2 Pricing. Consultant shall consider how gas pricing may be best achieved. This may be done on a project-by-project basis and should consider customer willingness to pay, term of supply, etc. Some key issues for Consultant to review and provide recommendations:

1. Each project should include a gas price methodology
2. Long term contracts with escalation price provisions are more likely to sustain cost recoverable projects
3. Gas prices should be calculated at the wellhead and need to allow for recovery of all production costs.
4. Full recovery of costs should be made downstream at the transmission and distribution systems.
5. These natural gas infrastructure and service systems are natural monopolies and should be regulated (either by regulatory body or well-drafted contracts).
6. Price regulation is not suggested

Task 4 -Legal and Regulatory Basis

1. Law. A revised “Petroleum Law” is presently under review by the Ministry of Justice and it is anticipated to be adopted in Summer 2012. In existence is the Hydrocarbons Law, 2009 that addresses natural gas issues. Earlier consultant work has resulted in draft provisions for a “Gas Law”. Consultant shall review this work and consider legal requirements to enable market operations in the upstream sector of natural gas development. Consultant shall become familiar with any downstream developments that are underway and where possible coordinate efforts to ensure a seamless development of legal basis for the sector.
2. Regulatory Oversight and Drafting. The establishment of an independent Gas Regulator or initially as part of the Ministry of Mines is recommended.

EY CONSULTING Ltd is shortlisted on the above project and is interested to recruit the following key experts:

1. Team Leader/Natural Gas Regulatory Expert: At least ten (10) years experience working as a regulatory staff member or expert on natural gas matters. Experience in institutional design and operations of regulatory functions. Relevant academic credentials (20 months).
2. Legal Expert: At least ten (10) years experience working in the natural gas and resource sector. Experience drafting gas sales contracts, transmission and other relevant legal agreements. Legal degree from accredited university and professional certification. (20 months).
3. Financial Expert: At least ten (10) years experience working in natural resources ideally with natural gas experience. Expert in financial modeling and ability to train counterparts. Expertise in natural gas pricing and/or experience in resource pricing. Requisite academic credentials (12 months).
4. Natural Gas Pipeline Expert: At least ten (10) years experience working on technical issues relevant to pipeline construction, operations and maintenance. Familiarity with modern and various technologies cost of pipeline operations, health and safety requirements for pipeline operations. Experience in Central, Western or South Asia useful (12 months).
5. Consumer and Government Relations Expert: At least ten (10) years experience working in Customer Relations in regulatory setting relevant to resource management. Ability to work with variety of stakeholders and to prepare user-friendly materials, outreach programs and train counterpart staff. Dari language useful. (12 months).

Important notice: It is envisioned that 70% work shall be performed at the Ministry of Mines in Kabul with the remaining 30% conducted outside Afghanistan.

If you are interested, please indicate the project and the position interested in and send us your CV to the following e-mail address: cv@eycon.eu

The Management Team

EY CONSULTING Ltd