Consultancy for Energy and Water Coping Audit for 15 SMEs and Farmers Cooperative Societies Supporting GEAP Value Chains

The Micro-Enterprises Support Program Trust (MESPT) has since the year 2002 developed a niche in supporting the growth of Micro, Small and Medium Enterprises by providing integrated business solutions for sustainable development. The Trust is a multi-donor entity jointly founded by the Government of Kenya and the European Union who later relinquished their position to the Royal Danish Embassy in Kenya.

MESPT is anchored on four (4) thematic areas namely:

1. Market Access & MSME Development whose objective is to support the establishment and growth of sustainable agri-business MSMEs in Kenya towards poverty alleviation, income generation and employment creation,
2. Food Safety and Agricultural Productivity that aims to capacity build agribusinesses on modern agricultural practices and target county governments on implementation and enforcement of food safety, plant and animal health regulations,
3. Green Transformation’s objective is to promote energy-efficient practices and natural resource management and
4. Access to finance which aims to have a KES 4 billion loan portfolio serving agricultural and non-agricultural micro enterprises thereby contribute to sustainable economic development in Kenya..

MESPT interventions has been designed to supplement the efforts of the Government and people of Kenya in implementing their Vision 2030 to create a globally competitive and prosperous country with a high quality of life by 2030, contribute to ‘inclusive greener growth with higher employment in Kenya and contribute to employment creation and improvement of farmer household economic status, through facilitating growth of selected agricultural commodity value chains across the country.

MESPT applies a business model that is based on a three-tier approach that incorporates producers, SMEs and financial intermediaries. Currently, MESPT is implementing a donor- funded program namely Green Employment in Agriculture Program (GEAP)funded by DANIDA in 12 Counties (Makueni, Machakos, Kilifi, Kwale, Nyandarua, Nakuru, Trans Nzoia, Uasin Gishu, Bungoma, Kakamega, Siaya and Kisii) with an aim to promote green, sustainable and inclusive economic growth and decent jobs as well as market opportunities for Danish companies and investors with relevant solutions. GEAP program has four (4) output areas namely; Market access and MSME development, Improved access to finance/credit, Improved food safety and increased productivity and green transformation. The selected value chains included Dairy, Export Vegetables, Mango, Coconut, Avocado, Aquaculture, Indigenous Poultry, Bananas, moringa, cassava and pineapple.

Rational of Assignment

MESPT has been the green growth champion for years promoting interventions geared towards green economy. MESPT has further supported energy scoping audits and implementation for partner SMEs for savings in energy use, income and adoption of green technologies to enhance jobs creation, income generation and poverty alleviation in Kenya. As a leader in green growth, MESPT through GEAP program seeks to facilitate investment grade energy audits to showcase opportunities for energy saving, water efficiency and waste management within SMEs’ commercial premises for adoption. The audit will provide a level of confidence for SMES to carryout implementation of scoping audit results/ recommendations based on expected return on investment (ROI) and Internal Rate of Return (IRR).

To achieve this, MESPT is seeking for a consultant or firm to carry out investment-grade audits that will clearly illustrate detailed technical and economic cost and benefits for justifying investment related transformations by 15 selected SMES.

Objective of the Consultancy

The overall objective of this consultancy is to carry out energy scoping audits for 15 SMEs to identify opportunities to reduce energy consumption and/or energy costs incurred during handling of commodities from GEAP supported value chains

Specific Objectives

1. Establish the potential of energy saving at their premises
2. To provide information regarding available energy saving technologies policy requirements of such projects
3. Assess viability of Solar Power as a substitute for the current energy sources and possibility of grid connection to off load excess power generated.
4. To identify opportunities of water conservation especially rainwater harvesting
5. To identify opportunities of waste management through recycling.

Scope of Work and Methodology

In most corporate settings, upgrades to a facility’s energy infrastructure must compete for capital funding with non-energy-related investments. To ensure high return on Investment (ROI). MESPT seeks to facilitate carrying out of investment-grade audits for 15 SMEs with complete engineering study to provide detailed technical and economic issues necessary to justify investment related transformations for 15 partner SMEs/ processors supporting market access for GEAP value chains commodities. The audit typically will involve data collection and review, premises surveys and system measurements, observation and review of operating practices and data analysis.

The consultancy is therefore expected to carry out Investment-grade energy audits for 15 SMEs to establish their energy demand, energy utilization and efficiencies. Further, the audit should identify water utilization efficiency and waste management techniques for the SMEs.

The audit will assess the following areas.

1. The type of lighting used in the premises, number and type of lighting bulbs used Vis a Vis control switches.
2. Assessment of heat demand for boilers and other cooking appliances, sources of heat energy, type, and efficiency of heating appliances.
3. Assessment of Cooling and Ventilation gadgets including door and window blinds and insulations for losses.
4. Assessment of energy demands processing, refrigeration, pasteurization, lighting and other electrical equipment like computers, printers, photocopiers, motors, pumps, fridges, LCD projectors, fax machines, scanners, and microwaves, among others.
5. Assessment of water sources, demand, and usage to identify losses of water and energy.
6. Assessment of pollution levels at the premise resulting from carbon dioxide, VOCs, nitrous oxides, carbon monoxide, sulfur dioxide, mercury, cadmium, lead, mercury compounds, cadmium compounds and lead compounds.
7. Assessment of solid and liquid waste generated at the premises to establish potential for recovery and bio-digestion of waste.

The firm will;

1. The analysis of building and utility data, including study of the installed equipment and analysis of energy bills.
2. The survey of the real operating conditions.
3. The understanding of the building behavior and of the interactions with weather, occupancy and operating schedules.
4. The selection and the evaluation of energy conservation measures.
5. The estimation of energy saving potential.
6. Identify possible customer concerns and needs.

Expected Deliverables

The consulting firm is expected to deliver the following deliverables:

1. Prepare a detailed report on energy status of the premises, cost of energy and recommend ways of energy saving.
2. Make recommendations on water and wastewater management techniques to reduce water wastage as well as viability of water harvesting.
3. Provide a list of recommended no-cost, low-cost, and longer-term energy efficient recommendations based on analysis of historical energy use and the onsite assessment
4. Provide Return on Investment (ROI) of selected renewable energy techniques (Solar PV energy, Effluent treatment plants, biomass energy through biogas digestion or briquettes for boilers among others as substitutes to the current energy demand at the premise.
5. Financial projections to illustrate payback period.
6. provide an inventory of existing equipment, a summary of the building’s current conditions and energy use,
7. Provide financial analysis and Cost- Benefit analysis of adoption and O&M of various recommended energy saving and waste management measures.

Required Competencies

The firm to be engaged should posses the following competencies.

• Over 5 years’ experience in conducting investment grade energy audits for AGRO processors in the region.
• Documents of at least 3 relevant energy audit assignments conducted by the firm with clearly demonstrated recommendations.
• The lead consultant to have vast experience in energy management, renewable energy, waste management and water recycling.
• The firm must demonstrate expertise in business financial modelling and / or business management.

Institutional Arrangement

The firm will work under the direct supervision of the Program Manager in consultation with Natural Resources Management Officer and other program staff. During this assignment, the firm will be provided with all necessary documents as required. However, the firm will not be provided with transport to the field by MESPT, and therefore shall make its own arrangement for the same. The assignment is expected to be carried out in 60 days.

Payment Plan

The Firm are requested to quote a fee that will cover all their costs including transport, accommodation where applicable and other incidentals.

The payment plan to the Firm will be as follows: –

• 30% upon mobilization/execution of the assignment
• 30% upon facilitation and presentation of an acceptable draft Report
• 40% upon presenting and acceptance of the final Report

Application Requirements

Interested applicants should send the following documents:

1. CV(s) of the lead consultant and team members of the firms applying.
2. Provide detailed company profile.
3. Provide a copy of certificate of registration.
4. CR12 Certificate
5. Must provide a copy of valid KRA Tax compliance Certificate.
6. Provide detailed proposal with a detailed Work plan demonstrating the number of man-days to be employed and budget for this work.
7. List of previous relevant assignments should accompany the tender, with a covering letter explaining how their experience addresses the requirements of the TOR.
8. Copy of reference letters or testimonials issued to the applying firm in the last five years.