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 Consultations

1.1 Document Review. Consultant shall conduct a detailed review of existing documentation relevant to Afghan Gas operations. These shall be provided to the Consultant by the MoM.

1.2 Government and Donor Activities. Consultant shall review available documents and meet with Ministry of Mines, government and donor representatives relevant to Afghan gas activities. Consultant shall become familiar with the status of various government and donor activities in the Afghan gas sector that include but are not limited to:

Task 2:     Functional Analysis and Institutional Relations: Review, Analysis and Recommendations

2.1 Afghan Gas Enterprise: current structure. Consultant shall review the structure of Afghan Gas including its staffing arrangements, technical operations, core and non-core business units, headquarter and field operations. Consultant shall prepare an overview document that graphically describes the status of the Afghan Gas structure and supporting operations, staffing.

2.2 Functional Analysis. Consultant shall conduct a review of how Afghan Gas is presently operating and based on MoM proposals for new Afghan Gas operations identify areas for reform and modification.

2.3 Institutional Relations. Consultant shall become familiar with and review the institutional relationships between Afghan Gas and various regulatory and oversight bodies. Afghan Gas has not necessarily engaged with these institutions in recent years. Consultant will assess the current status of relations and what changes may be introduced to improve and/or to clarify these relations.

Task 3: Financial Review and Recommendations on Afghan Gas Assets and Liabilities

1.1     Legal Requirements for Financial Performance. Consultant shall become familiar with legally required payments and protocols to be followed by Afghan Gas as a State Owned Enterprise and assess Afghan Gas¢ performance.

1.2     Review of Financial Records, Balance Sheet. Consultant shall review the present financial records including the Balance Gas Sheet for Afghan Gas and where useful, prior fiscal year activity. Included in this review shall be detailed analysis of legally required recording of State owned enterprise profit payments and tax payments.

1.3 Assets and Liabilities. Consultant shall conduct an inventory of core and non-core assets and liabilities that shall include estimated values, location of assets and current status of management (e.g., leased, rented).

3.4 Financial Protocols

1. Consultant shall become familiar with and detail payments made by Afghan Gas to the Ministry of Finance and any other Government agencies relevant to their core and non-core activities. In addition to assessing what payments were made and when, the mechanisms for payments shall be assessed.
2. Consultant shall similarly assess the mechanisms used to pay core and non-core workers, the use of formal and informal labor and the extent and type of contracting in place to support workers.

Task 4:   Technical Review of Afghan Gas Operations

4.1  Infrastructure and Equipment Assessment. Based on existing information, Consultant shall conduct a technical review of Afghan Gas operations including distribution networks and provide recommendations as to what aspects of existing infrastructure may be salvaged for future use. Consultant shall catalogue the technical assets and where assets may be of future use, some assessment of repair or

4.2 Technical Protocols. Consultant shall assess operational protocols for maintenance and repair, inventory, emergency response and relevant aspects for technical performance. Recommendations for how operations may be technically improved, modified or otherwise changed shall be provided.

Task 5 : Customer, Pricing and Market Assessment

5.1 Customer Base. Consultant shall gain an understanding of the existing and potential customer base for Afghan gas. This shall include an assessment of potential gas imports and exports. In order to develop a natural gas exploration strategy, the expectations of gas market development including the price that the market will pay for gas supply is essential.

5.2  Pricing. Presently, natural gas prices are fixed and subsidized. A Tariff Policy and Regulation of the Natural Gas Sector in Afghanistan has not been developed. Some methodologies to develop gas pricing that is cost effective and covers project costs (as required) are needed.

5.3 Market. The MoM has assessed the current Afghan Gas market and is considering restructuring of the Afghan Fertilizer and Power Plant that is presently the sole industrial consumer of Afghan Gas. Consultant shall work with MoM to identify core market issues and consider these in developing the new design for Afghan Gas.

Task 6 :  “New Afghan Gas” Structure and Transition Plan
 

6.1  New Institutional and Staffing Requirements. Consultant shall provide recommendations for the new Afghan Gas structure and staffing arrangements and identify areas where former Afghan Gas arrangements may be transitioned to the new enterprise.

6.2  Social Impacts and Mitigation Plan. Approximately 6000 Afghan workers and managers are employed or directly impacted by the Afghan state gas sector, 1039 of which are at the Afghanistan State Gas Enterprise. Consultant shall develop a mitigation plan based on detailed information of current Afghan Gas staff.

6.3  Legal and Financial Transition. Consultant shall work with MoM and Ministry of Finance to prepare the necessary legal documents to support transition.

6.4  Technical Transition Issues. Consultant shall provide assessment of areas where technical assets and infrastructure may be upgraded/repaired for future use as well as protocols that may be continued during transition.

6.5  Capital Investment requirements. In order to sustainably achieve the project results anticipated, considerable capital investment is required. For viable operations, gas prices, long-term contracting where possible, and “anchor” or at least reliable natural gas customers are essential. Assessing coverage of key capital investments, project financing models and commercial project structures for investments – even if using donor funds – shall be conducted with the intent that all investments shall be treated as commercial investments despite the source of funding.

Task 7: Design and Implement a program of Afghan Gas commercialization, modernization and restructuring that includes capacity building

7.1 Establish a Program Management Unit (PMU). As part of this activity, the Consultant will establish a Program Management Unit (or equivalent) in Kabul that the Consultant will staff, and mentor Afghan Gas and MoM staff to take over the functions of expats within the period of this activity.

7.2 Develop and Implement Afghan Gas Commercialization and Corporatization Program. Based on activities conducted under Task 6 and in continuous collaboration with MoM, the Consultant will develop a strategic implementation plan toward the commercialization and corporatization of Afghan Gas operations

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

1. Project manager: At least ten (10) years experience in natural gas company management with emphasis on transmission, distribution and sales. Experience in restructuring, change management in transition economies. Relevant academic credentials. (20 months).
2. Legal expert: At least ten (10) years experience in restructuring, commercialization and corporatization work in transition economies. Experience in preparing gas sales contracts, legal charters, Board of Director and management operating rules, liquidation and incorporation of corporate affairs requires; experience with Afghanistan energy and business sector and relevant legal frameworks¢ useful. Relevant academic credentials and degree from accredited law school as well as professional certification. (8 months).
3. Accounting expert: At least ten (10) years experience in restructuring corporate accounts in transition economies. Experience in information collection, closing accounts, establishing Chart of Accounts, audit functions required; experience in transition economies and with state owned enterprises shall be of use. Relevant academic credentials as well as professional certification. (8 months).
4. Technical expert: At least ten (10) years experience in natural gas pipeline transmission and distribution work; overall understanding of technical aspects of gas operations including production and processing. Familiarity with modern technologies and their costs, availability in the market. Relevant academic credentials as well as professional certification (8 months).
5. Social Impact expert:  At least ten (10) years experience in restructuring of state owned enterprises relevant to transition economies; familiarity with Afghan legal and regulatory framework on labor, social entitlements, land and other aspects preferred. Dari language useful. Relevant academic credentials. (8 months).

Important notice: It is envisioned that 50% of the work shall be performed at the Afghan Gas headquarters in Sheberghan with the remaining 50% conducted in Kabul and 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