Request for Expressions of Interest

(CONSULTING SERVICES – FIRMS SELECTION)

Country: Islamic Emirate of Afghanistan

Name of Project: Feasibility Study for the Utilization of TAPI Natural Gas in Herat Province

Grant No.: 320125

Project ID: MoMP-CS-06-QCBS-1404

Assignment Title: Feasibility Study for the Utilization of TAPI Natural Gas in Herat Province

Duration of Assignment: 6/Months

Implementing Agency: Ministry of Mines and Petroleum Duty Station: Herat

Contract Type: Lump- Sum

Reference No. MoMP-CS-06-QCBS-1404

1. The Islamic Emirate of Afghanistan, represented by the Ministry of Mines and Petroleum, received a fund in 1404 and intends to apply part of the proceeds of this fund to implement the Feasibility Study for the Utilization of TAPI Natural Gas in Herat Province.

2. Brief of the Assignment

Background:

1. The Herat section of the TAPI natural gas pipeline project started on December 10, 2024, and is projected to be completed within three years. This section spans

153 km, running from Torghondi to the Guzara district of Herat province. Afghanistan’s Ministry of Mines and Petroleum (MoMP) aims to develop a comprehensive plan for the effective utilization of this gas resource to ensure economic viability, competitiveness, and quick returns.

1. This ToR outlines the requirements for a consultancy firm to conduct a detailed study on the demand, economic feasibility, and technical requirements for building a downstream gas distribution network in Herat.

2. The project area includes the Guzara district, identified as the primary offtake point from the main TAPI pipeline. From this location, the downstream infrastructure will consist of the following components:

   1. A 21.6 km transmission pipeline from Guzara offtake point to the Herat Industrial Park, designed to supply gas directly to industrial users;

   2. A distribution pipeline network within the industrial park, for the internal distribution of gas to individual industrial firms and production units;

   3. A 17 km transmission pipeline from the industrial park towards Herat City, intended to serve urban users;

   4. A gas distribution network covering eight districts of Herat City to provide access to gas for residential, commercial, and institutional users.

3. Several relevant studies and datasets are available to support this feasibility assessment, including:

   1. Preliminary design documents and route surveys for the Herat segment of the TAPI pipeline;

   2. Demand assessments conducted by MoMP and donor partners on energy needs in Herat industrial zones and urban areas;

   3. GIS mapping and land use data for Herat province;

   4. Baseline socio-economic and energy access data compiled through recent national surveys;

   5. Industrial development master plans for Herat province, including investment priorities for the Herat Industrial Park.

4. The rationale for the feasibility study lies in the need to ensure a technically sound, economically viable, and socially responsive gas distribution system that maximizes the benefits of the TAPI pipeline for Herat province. The outcomes of this study will guide infrastructure investment decisions, policy development, and future donor or private sector engagement in the energy sector.

Objectives of Assignment:

1. Assess the overall demand for gas energy in Herat.

2. Identify the most economically viable sectors for which the gas to be allocated or supplied.

3. Determine the technical requirements for building a downstream gas distribution network in Herat.

4. Determine the technical requirements for designing and constructing a downstream gas distribution network in Herat, including transmission and distribution systems from Guzara District to Herat Industrial Park and onward to Herat City and its eight master plan districts.

5. Provide capacity-building and technical training to relevant personnel within the Ministry of Mines and Petroleum (MoMP) and local stakeholders, focusing on the planning, operation, and maintenance of gas distribution infrastructure.

3. Scope of the Services

The consulting services will include the following major tasks:

1. Market Analysis

• Conduct a detailed analysis of current and projected demand for gas energy in Herat province.

• Identify key potential options for gas utilization, including residential houses, industrial park, commercial areas (guilds), Auto-vehicles (CNG production), and Fertilizer production plants.

• Conduct a cost-benefit analysis for the use of natural gas in each sectors mentioned above.

• Assess the competitive landscape, comparing TAPI gas pricing with imported gas from neighboring countries.

• Analyze potential market barriers and opportunities.

1. Technical Feasibility

• Conduct a detailed technical study for the construction of the downstream gas distribution network, starting from Offtake Point No. 1 in Guzara District. The study should cover the design and technical specifications for a transmission pipeline of approximately 21.6 km from Guzara to the Herat Industrial Park, followed by a 17.5 km transmission line from the industrial park to the central areas of Herat City. In addition, the study must address the development of a gas distribution network that will serve the eight master plan districts of Herat City.

• Evaluate the technical requirements for constructing and operating the gas infrastructure in the case of gasification of Herat city, including pipelines and distribution networks.

• Provide detailed specifications for the necessary infrastructure, including pipelines, compressor stations, and distribution stations.

• Outline the regulatory and safety standards that need to be adhered to.

• Identify potential technical challenges and propose effective solutions.

• Develop construction timelines with key milestones and assess the feasibility of meeting project deadlines.

1. Financial Feasibility

• Conduct a comprehensive cost analysis covering engineering, construction, and operational expenses.

• Identify potential cost overruns and implement risk mitigation strategies.

• Explore potential revenue streams, including tariffs, fees, and other income sources.

• Assess the long-term financial sustainability of the project.

• Provide financial projections and investment appraisals, including ROI and other financial metrics.

1. Pricing Strategy

• Taking into account each scenario, including supplying gas to industrial parks, commercial and residential areas, and converting vehicles from fuel to CNG, develop a pricing strategy that ensures TAPI gas is competitive with imported gas and electricity.

• Evaluate pricing models that balance affordability for consumers with financial viability for the project.

• Assess the impact of different pricing scenarios on market penetration and revenue.

1. Investment Models:

• Propose various investment models, including public-private partnerships (PPP), build-operate-transfer (BOT) arrangements, and government financing options.

• Evaluate the financial feasibility and risk-sharing mechanisms associated with each investment model.

• Provide recommendations on the most suitable investment model(s) to attract financing for the development of the gas distribution network.

4. Qualification Requirements/Shortlisting Criteria

The Ministry of Mines and Petroleum now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the services described under paragraph 3 above. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services.

The short-listing criteria are:

1. The Consultant should be a registered legal entity and should have been in existence for the last 10 years in providing Consultancy Services for similar or related assignments. The consultant should provide a copy of the certification of incorporation/ business license with its EOI.

2. The consultant shall have an annual turnover of USD 308,000 during the last 5 years. The consultant shall demonstrate having a sound financial situation and capacity by submitting audited financial reports for the last 5(2020 to 2024) years.

3. The consultant shall also provide proven experience of having executed at least one contract with a value of USD 168,000 of similar nature and complexity during the last 5 years. The consultants are required to provide copies of the contract along with the client’s certificate towards completion of such assignments with their EOI.

The Consultant, while describing the assignment(s), should furnish the following details:

1. The consultant should explain in what way the executed assignment(s) was/were similar to the current assignment and also indicate the input of key experts provided for the same

2. The Consultant should explain the exact role played by the Consultant in the assignment if the assignment was carried out in association with other firms as JV or in sub-consultancy for carrying out the assignment.

3. Requirements for Consultants participating as Joint Venture, Consortium or Association:

Consultants may associate with other firms in the form of a joint venture or a sub- consultancy to enhance their qualifications. If consultants intend to associate with other firms, they are advised to clearly identify the lead partner and state the composition and nature of their association (JV/ sub-consultant) in their EOI.

In case of association between the firms in the form of a JV, the following requirements will also apply:

• Only the firm meeting at least 40) % of the shortlisting criteria shall act as the Lead Partner of the JV. The lead partner needs to be identified in the JV agreement or the intention of forming a JV, to be submitted with the EoI. Other member(s) of JV need to meeting not less (25) % of the shortlisting criteria. The figures for each of the partners of

a JV shall be added together to determine the consultant’s compliance with the shortlisting criteria.

• The variance in similarity and complexity could be acceptable.

5. A consultant having some regional experience is desirable

6. The consultant is not black-listed by the Government of Afghanistan.

7. Declaration by the Consultant that the Consultant does not have any conflict of interest in terms of taking any assistance/support from individuals/firms/consultants who have been part of the Project consultancy or the procurement process.

8. Declaration by the Consultant that the information furnished in EoI is correct and for any misrepresentation detected at any stage of the selection process or during execution of the resultant contract, if successful, the Consultant to be taken up under the Laws of Afghanistan.

9. The EOI with all details should, preferably, not exceed 40 pages in total.

5. Legal References

The attention of interested Consultants is drawn to ‘Chapter 4 - Process of Request for Proposal’ of “Rule of Procurement Procedure” issued by the Government of the Islamic Emirate of Afghanistan. The consultants are also required to maintain high standards of ethics throughout the procurement process. The Consultants’ attention is also drawn to Article 16 of the Afghanistan Public Procurement Law for compliance. The consultants can download the Public Procurement Law and Procedure from: www.npa.gov.af

6. Method of Selection

A Consultant will be selected in accordance with the QCBS set out in Rule 59 of the Procurement Procedures.

7. Submission of EOI

Expressions of interest as per Annexure ‘A’ attached must be delivered in a written form to the address below (in person, by mail, or by e-mail) by 12/August/2025 and Time 14:00 PM (Kabul Local Time).

Further information in respect to this REOI can be obtained at the address below by email or in person during office hours 08:00-04:00 Hours.

Attention: Eng, Abdul Sattar “Salih”

Name of the Procuring Entity: Procurement Directorate, Ministry of Mines & Petroleum

Address: Macroreyan Square, Kabul, Afghanistan

Email: sattar.pashtoon@gmail.com copied to absattar.pass@gmail.com

(The ToR is accessible through direct link: https://momp.gov.af/sites/default/files/2025-07/ToR%20for%20Feasibility%20Study%20for%20the%20Utilization%20of%20TAPI%20Natural%20Gas%20in%20Herat%20Province.pdf