3 March 2011
Appendix I
including Annex 1A
Description of Work
’A feasibility study for an LNG filling station infrastructure and test of
recommendations’
Project period:
02.05.2011 – 31.03.2012
Trans-European Transport Network (TEN-T)
– Motorways of the Seas (MoS)
1. Introduction
This Consulting Assignment – the project – involves the fulfilment of a feasibility study and test of recommendations with the aim to make recommendations for creating a framework for the establishment of a maritime LNG infrastructure in the Baltic Sea, the North Sea and the English Channel.
The framework is to be considered along two dimensions: A “hard” dimension with maritime LNG filling stations and a “soft” one with regulation, classification rules and industrial standards and cooperation, etc.
The recommendations are to target central stakeholders for the establishment and use of an LNG infrastructure encompassing technical as well as economic issues. Central stakeholders mean shipowners, ports, LNG providers, industry organizations, states, the EU and the IMO, etc.
The project is conducted in cooperation with various authorities, organisations and companies in the involved sea areas. The project is financed by the participants and receives co-financing from the EU TEN-T funds.
2. General description
Environmental and climate concerns are high on the agenda for the development of the European transport policy. From the point of view of the different transport modes, co-modality – implying efficient transport solutions considered on their own and in combination – is a key word. Furthermore, the European transport policy aims at creating innovation.
From an environmental point of view, new IMO (International Maritime Organization) regulation on shipping sets limits on sulphur and nitrogen oxide emissions from 2010, 2015 and 2016 (the 2016 provisions) in the Baltic Sea, the North Sea and the English Channel. This pressurizes the competitiveness of Short Sea Shipping and, hereby, Motorways of the Seas.
To meet the environmental demands in a competitive way, the use of natural gas in the form of LNG (Liquefied Natural Gas) seems to be an obvious alternative. But the absence of an LNG infrastructure for supplying LNG to ships that is supported by regulation, industry standards, etc. does not make this alternative viable.
An LNG infrastructure is to be seen from a supply chain point of view, from the reception of LNG and/or liquefaction of natural gas from the natural gas grid, via storage and distribution of LNG to the use of LNG in ships for propulsion.
Furthermore, infrastructure is to be seen from a “third party” point of view.
The feasibility study on an LNG filling station infrastructure started out as a project under the European Union Strategy for the Baltic Sea Region, but the geographical scope has been expanded to the North Sea and the English Channel because of the trading between these areas and because of the ECA (Emission Control Area) provisions. The project is strategic in relation to the implementation of Motorways of the Seas according to article 12A of the TEN-T Guidelines on Motorways of the Seas.
The lessons learnt from the project are foreseen to have a wider application in other geographical areas within the EU.
3. Aim and outcome
The aim and outcome of the project are:
To identify and study enablers for the establishment of an LNG infrastructure from an economic as well as a technical point of view;
To set up recommendations aiming at developing framework conditions for the use of LNG; To test recommendations on commercial entities taking part in the project from a business
case point of view;
To draw up technical and economic recommendations relevant for central stakeholders aiming at developing framework conditions for the use of LNG.
Central stakeholders for the technical and economic recommendations are shipowners, ports, LNG providers, industry organizations, states, the EU and the IMO, etc.
Annex 1A, “Extracts of the TEN-T financing application LNG infrastructure of filling stations”, dated 26 February 2011, has identified safety; local municipalities and public awareness; technical possibilities for fuelling ship engines with LNG; fuelling of other transport modes than ships from “maritime” LNG filling stations; LNG filling stations; economy from a ship, a port and an LNG provider point of view; the LNG market; and the potential as enablers. Fuelling of other transport modes than ships from “maritime” LNG filling stations can be extended to other potential uses of LNG to create economies of scale, for example for industrial energy use. Furthermore, security concerns must be integrated in the work.
As an important part of the work a mapping of existing regulations and standards etc. the need for further regulations and standards etc. shall be worked out and seen from an LNG supply chain perspective.
The three first dots are envisaged to be done simultaneously with the aim of drawing up recommendations in the strategic decision paper encompassing the “hard” infrastructure as well as the “soft” infrastructure to facilitate the deployment of LNG in ships.
The recommendations must contain technical as well as economic considerations.
According to the above „Extracts‟, three ports and their respective partners are listed for tests, namely the Port of Hirtshals, the Port of Szczecin & Swinoujscie and the Port of Zeebrugge. By partners are meant LNG providers, LNG terminals, shipowners and other stakeholders, etc. This is, according to page 6 in the Extracts, combined with: “Furthermore, a framework for an operational methodology addressing the potential for the single port and/or port cluster – port authority, LNG provider, etc. – must be developed”.
These tests are envisaged to give positive feedback for the drawing up of recommendations and to contribute to demonstrating the validity and robustness of recommendations. Hereby, the recommendations become as close as possible to action and practice.
as well as other test cases.
Moreover, the Consultant is to draw up an inventory of significant publications, studies and projects of relevance to the project1. This inventory will serve the purpose of collecting information and providing an overview of the subject.
4. Implementation
Dialogue and cooperation
Involvement and engagement with the Client‟s project structure and other entities necessary for a successful fulfilment of the project are central issues.
With respect to the Reference Group (Re. 5, Client information), the bid must contain the tenderer‟s proposal on how to use this group in the project, including agenda items for meetings in the Group and the execution of meetings.
Once the contract has been signed, the Consultant and the Project Secretariat will meet to go through and clarify the project as well as to establish a common set of cooperation guidelines and to distribute the responsibility based on the Consultant‟s proposal.
Coordination with other relevant initiatives
The project must be coordinated with and/or delineated to relevant existing and coming projects. In the Baltic Sea, the EU Strategy for the Baltic Sea Region, Priority area 4, ”To become a model region for clean shipping”, coordinated by the Danish Maritime Authority, is important. Projects such as Clean Baltic Sea Shipping (Cleanship), BSR Innoship and this project on an LNG infrastructure are coordinated under this priority area. Furthermore, the Baltic Energy Market Interconnection Plan can be mentioned. Important European players to be taken into account are the European Maritime Safety Agency (EMSA) and the Commission.
The Project Secretariat will assist the Consultant on this issue.
And as mentioned the Consultant must, as a part of the task, draw up an inventory of essential publications, studies and projects of significance to the work (Re. 3, Aim and outcome, last paragraph).
Meeting schedule
Three Steering Group meetings and two hereof combined with a Reference Group meeting are envisaged for the project. Furthermore the consultant must be responsible for the minutes.
Planning the project
The overall project period for the feasibility study (including preparations) and test of recommendations will run from 01/01/2010 until 31/03/2012.
The overall timetable is as follows:
Activity 2010 2011 2012 2013
1
An example of such a publication is Natural Gas for Ship Propulsion in Denmark, 2010
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
1
Preparatory work for the feasibility study and for test of
the recommendations
2
A feasibility study for an LNG
filling station infrastructure
3 Test of recommendations
4 Project management2
As a part of the bid the Consultant is responsible for planning and setting up the necessary
milestones in order to fulfil the project within this timeframe. The consultancy work is planned to start on 2 May 2011.
Consultant’s organizational structure for the project
The consultant must put up an organizational structure for the implementation of the project.
Consultant’s network for the project
The network must reflect the geographical scope of the project, the Baltic Sea, the North Sea and the English Channel.
Consultant’s personnel resources for the project
For senior staff members names, competences, experiences and responsibilities must be included in the bid.
Consultant’s integration of in kind resources
These resources are contained in appendix 4. Description of in kind contributions
Reporting
A bid must contain information on the presentation and current reporting to the Steering Group. This should include a description of the following: Delivery schedule, type of report and contents as well as how the final report will be delivered and presented.
When the final report has been presented and delivered to the Client and the Client has approved the documentation, the project will be considered complete.
The final report must be delivered in an electronic version as well as a printed version in 250 copies.
2
The difference between the time schedule for the feasibility study and test of recommendations is due to the fact mentioned earlier that this work is a part of a larger project.
The Consultant must also deliver information to the EU Commission on how the Action was implemented, including technical, financial and publicity information. This task will be performed in cooperation with the Project Secretariat.
Good knowledge of English as it is the working language of the project and good knowledge in communicating difficult and comprehensive issues.
Financial control of the work planned in the project
The Consultant is responsible for planning and completing the project in as cost and time effective a way as possible. The Consultant is obliged to inform the Client of cost saving solutions found during the project period for adapting the project to new possibilities.
Information on parallel consulting work and other activities
During the project period, the Consultant is obliged to deliver information on any parallel
consulting work or other activities that may present a risk of creating conflicts of interests for the Consultant.
Contact with authorities
The Consultant must present any need for permits, duties to report, statements and approvals, etc. to the Client. If any application negotiations should come into existence, they will be prepared by the Consultant in dialogue with the Client. The Client will send applications.
5. Client information
The following section describes the Client‟s responsibility and the governing structure for the project.
Client’s governing structure
The Danish Maritime Authority will be the leading and coordinating partner and will, together with the Flemish Ministry of Mobility and Public Works, be in charge of the overall project management. The governing structure of the project is shown below.
Steering Group
The Steering Group consists of the public and private contributors to the project. The Steering Group has the overall responsibility for the execution of the activities involved in the project, including the choice of Consultant.
Project Secretariat
The project is managed by a Project Secretariat mandated by the Steering Group and functions as project coordinator. This position is managed by the Danish Maritime Authority.
The Project Secretariat is responsible for the following tasks:
Preparation of Steering Group and Reference Group meetings in cooperation with the Consultant;
Contact with and guidance of the Consultant;
Coordination with other projects and entities of interest to the LNG infrastructure project in cooperation with the Consultant;
Dissemination activities; Running a homepage; Accounting and reporting; The tender process;
Contract negotiation with the EU Commission and the public procurement work.
Reference Group
The Reference Group consists of interested stakeholders related to the project. The Reference Group will be set up when the contract is signed. The Reference Group will give advice and discuss the project results.
Client’s administrator of the project
The Client‟s administrator during the project period is Mogens Schrøder Bech, the Danish Maritime Authority (phone: +45 39174400).
The Danish Maritime Authority Vermundsgade 38 C
2100 Copenhagen Denmark
Phone: +45 39174400
Contact person: Mogens Schrøder Bech Phone: +45 39174501
Mobile: +45 21784652 Email: [email protected] URL: www.dma.dk
6. Remuneration
The total remuneration for the consultant is € 1.120.000 and consists of a financial contribution of € 850.000 and in kind contributions of € 270.000 on man hours from the projects in kind contributors.
The remuneration payments may not exceed the amount mentioned above. Bids with a total price exceeding € 1.120.000 will be considered an irregular tender.
Based on Appendix 4. Description of in kind contributions the in kind contributors must draw up invoices to the consultant. The invoices must refer to relevant activities in Appendix 2. Description of Solution and must state “in kind contribution according to the agreement between the Danish Maritime Administration and the consultant”.
The consultant must pay the invoices and the in kind contributors must transfer the amounts to the Danish Maritime Authority upon receipt.
When the consultant invoices the Danish Maritime Authority according to Appendix 2. Description of Solution the amount must refer to relevant activities in Appendix 2.
Furthermore a note to the Danish Maritime Authority must subdivide the invoice amount into: Paid to the in kind contributor(s) (name(s))
Payment for the consultant‟s work
The remuneration must cover all the Consultant‟s expenses during the project period, incl. organisational resources, travel, and accommodation costs. Any travel and accommodation costs associated with the in kind contributors‟ work for the Consultant are to be covered by the financial contribution mentioned above.
The remuneration must contain information on the total price in Euros divided into staff remuneration and major categories of other costs. Furthermore, the remuneration costs must be divided into project leader, senior consultant and junior consultant indicating budgeted hours as well as hourly rate.
The payment plan is as follows: 25 % by signature 25 % 30 November 2011
50 % at the client‟s approval of the project
In respect of any amounts payable prior to the date of approval of the project, payment is subject to the condition that the Consultant has provided an irrevocable demand guarantee from a reputable bank or insurance company as security for repayment of the amount. The text of the guarantee must be submitted to the Customer for approval.
7. Request for quality management system
A bid must contain information on the Consultant‟s quality management system and the demand is an ISO 9000 quality management system or a corresponding system. Furthermore, the bid must provide brief information and demonstrate how the offered quality management system is proposed implemented in the bid. The Client may conduct an audit together with a quality auditor to assess whether the quality management system fulfils the needed requirements.
