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Call for Expression of Interest on the APPA study on the Local Content.pdf

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Call for Expression of Interest on the APPA study on the Local Content

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									              Call for Expression of Interest on the APPA study on the "Local Content" :
              Request for clarification by some Consultants on the content of the Study

Point 1 : “Collect Data and develop a diagnosis of the actual situation of APPA Member Countries on
Local Content of Oil and Gas activities “
Question 1-1: What is the level of data needed by APPA for a view of the current situation?
Answer: See the attached document and concerning the expectations of the Study.
Question 1-2: Does APPA want a larger analysis of policy companies in the Oil & Gas on Local Content, or is
it rather a specific analysis of the local degree of supply thereof?
Answer: with regard to the expectations of the study, your two proposals are complementary; in fact,
        from our point of view, "an analysis of the general policy of companies in the hydrocarbon sector
        on Local Content" completed by "a specific analysis of the degree of local supply " is essential to
        set goals and define further evaluation indicators enabling African Countries to achieve, in
        the allotted time, the rate of local content fixed.


Point 2 & Point 3: “Develop a report proposing among things, to APPA Member Countries, a vision, a
policy, objectives, a costed program and a strategy to promote local content of petroleum activities,
with the aim of achieving a minimum rate of 50% of local content by 2030 at the level of each country”
& “Beyond the development of the local content in each member country, the consultant shall prepare
a report providing an optimal regional localization of the main activities of local content in the domain
of hydrocarbons in Africa for the purpose of promoting greater cooperation between Member
Countries through profitable projects”.

Question 2-1: We feel that the Point 2 and 3 are similar in their objectives. Could you give us more
details on what APPA look through Point 3, which is not included in the item 2?

Answer: APPA believes that to ensure a rate of 50% of Local Content in each Member Country by 2030,
        many required services should be developed in each country, while other services would be
        more profitable to the regional plan. The Consultant will make concrete proposals on these
        regional services, based on greater cooperation between Member Countries.


Point 4 : « Study and implement in each member country, a data bank to promote local content and
then established between all member countries and the APPA Secretariat, an interface operating on
the basis proposed by the consultant to the members ».
Question 4-1 : We would like to understand what you mean by creating a database? Is this a database
standards country's Local Content? Is this a database of contacts country's local Content? Is it a database of
local companies working in Oil & Gas sector?
Answer: The promotion of Local Content absolutely requires the establishment in each Member
         Country, of a database to address at any time the various questions on the subject. What is
         your proposal on the matter?

Question 4 -2: We believe it is important that you give us more details on this point, because setting up a
database may or may not require a significant volume of work following the goal. That is why it is important to
understand and clarify the framework in which APPA wants to implement this database.
Answer: You are right. Have you been in countries where the Local Content is more developed than in
        Africa (Brazil, Norway, etc.)? What kind of database has been established within the national
        organization promoting Local Content?
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Point 6 : “Propose TOR of technical assistants who will assist APPA and its members during the
implementation of the recommendations of the study”.
Question 6-1: We understand that APPA would like the international consultant to define the terms of
reference of the work of local consultants who will work on the implementation of the recommendations of the
study in the different member countries of the Association. Is our understanding correct?

Answer: the implementation of recommendations you make will require local and external expertise.
        We must therefore propose the TOR of the intervention of these two categories of experts.
Point 7 : « Develop and propose a media plan on Local Content »:
Question 7-1: Could you clarify what are the expectations of APPA on this point? Indeed, we need to define
our field of action depending on what are precisely the wishes of the Association.

Answer: APPA would like to communicate on the Local Content to the effect of:
    •   demonstrate to New African Oil Countries the steps, procedures, the feasibility of projects for
        the promotion of Local Content;
    •   Demonstrate the experience of other countries in the field by highlighting the importance of
        the initiative, respect for good governance, job creation, etc.;
    •   Show Member Countries the best social achievements for the benefit of local communities
        (relations between the Oil Companies and the communities in the areas of oil production,
        organization put in place, modalities for transparent management of budgets provided, etc..)
        and encourage emulation between countries.


Point 8 : Estimate cost of the said study:
Question 8-1 : The Call for Expression of Interest being not very detailed on specific points of the study and
because APPA wants each consultant to provide an estimate of the cost of the study, we want to know if you
already have an estimate of the duration in weeks of the intervention of the international consultant ?
Answer: In our opinion, the duration of the study should be 20 months, including the time of data
        collection and organization of restitution meetings. In the methodology, four phases could be
        considered:
Phase 1 : Data Collection for the study ( Member Countries and the Consultant) ;
Phase 2: Diagnosis of the current situation of Local Content in the oil and gas activities in each APPA
          Member Country;
Phase 3 : Development of a vision, a policy, objectives, a quantified programme and a strategy of promoting
          the increase of the Local Content in the oil and gas industry;
Phase 4: Organization of three regional meetings to present the final report to the effect of allowing
        internalization by Member Countries, of the results of the study performed.
Question 8-2: Besides, how would you handle the scenario where you end up with a very broad estimate of
the price range due to various interpretations by consultants of the work programme?
Answer: In our opinion, all our answers to your questions should help to better circumcise the scope
        of work and lead to greater precision and for a reduction in financial offers. Nevertheless, I
        must inform you that during the 2nd step in the process of selection of a Consultant for our
        study, the final score of each bidder will be a combination of the note in its technical offer
        and the note in its commercial offer.


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Annex 1 : Outcomes
At the end of the study, the Consultant shall submit:
1. A diagnostic report on the actual situation of APPA Member Countries on Local Content of oil and gas activities; this
   report will include the following:
         a. Exhaustive list of technical, economic, financial, legal, etc ... related to hydrocarbon sector and whose
            mastery is essential to better exploit this energy resource;
         b. Classification of activities listed above based on the average preparation time required for their mastery by
            the host country;
         c. Indicators to measure the level of local content of oil and gas activities;
         d. For each Member Country of APPA:
            i. History of the Local Content in the oil sector;
            ii. Vision, policy, objectives, program of action and strategy of promoting local content in oil activities;
            iii. Strengths and weaknesses of the legal and institutional framework for the promotion of local content
                  and the mastery of oil and gas activities;
            iv. Obstacles to the development of local content;
            v. Success factors of local content in the country;
            vi. Training and employment of local expertise;
            vii. State of implementation of the principles of social responsibility by oil companies (Taking into account
                  social, environmental and economic activities).
            viii. Level of involvement of local contractors in the oil business in their countries;
            ix. Links between the oil sector and other sectors in terms of Local Content.
            x. Research and development related to local content;
            xi. Point on the local processing of oil and gas production;
            xii. Average rate of the Local Content in Oil and Gas ;
            xiii. Etc.
2. A report proposing for APPA Member Countries :
      a. Vision, policy, objectives, a quantified program and a strategy of promoting local content in oil and gas
         activities, the goal being to achieve a minimum rate of 50% of local content by 2030;
      b. the legal framework for the promotion of local content in oil and gas activities;
      c. the appropriate institutional framework (the role of Administration, Oil Companies, Service Providers,
         international partners, the civil society, etc.).
      d. a code of governance, quality standards, the various policies implemented;
      e. a training program associated with the promotion of local content in oil and gas activities;
      f. a competitive funding mechanism of the program and an evaluation of expected impact of its implementation
         in Member Countries;
      g. Strategy of implementation: many studies have been made on energy in Africa; many recommendations have
         been written on the subject, but very little has changed. The Consultant shall propose, for this study, a
         strategy for an effective implementation of the recommendations.
      h. the proposals will include APPA Secretariat to enable it to effectively play its role in this important project.
3. Beyond the development of the local content in each Member Country, the Consultant shall prepare a report
   providing an optimal regional localization of the main activities of local content in the domain of hydrocarbons in
   Africa for the purpose of promoting greater cooperation between Member Countries through profitable projects.
4. Study and implement in each Member Country, a data bank to promote local content and then established between
   all Member Countries and the APPA Secretariat, an interface operating on the basis proposed by the consultant to
   the members;
5. Ensure maximum transfer of know-how in the framework of the project in order to facilitate the further
   implementation of the recommendations of the Study.
6. Propose TOR of technical assistants who will assist APPA and its members during the implementation of the
   recommendations of the study.
7. Develop and propose a media plan on Local Content.
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