TERMS OF REFERENCE (ToR) FOR THE PROCUREMENT OF A CONSULTANT TO SCOPE THE ESTABLISHMENT OF THE ZAMBIA INDEPENDENT SYSTEM AND MARKET OPERATOR (ISMO) NATIONAL CONTROL CENTRE AND BACKUP CONTROL CENTRE

Reference: ISMO/PROC/....

Date of Issue: 19.02.2026

Closing Date: 1.03.2026

1.0 BACKGROUND AND CONTEXT

1.1. The Government of the Republic of Zambia, through the Electricity Act No. 11 of 2019, has mandated the creation of an Independent System and Market Operator (ISMO). The ISMO will be a state-owned, legally independent entity responsible for the secure, reliable, and non-discriminatory operation of the national electricity grid and the management of the electricity market.

1.2. The core operational function of the ISMO will be executed from a National Control Centre (NCC). Given the critical national importance of continuous electricity system reliability, a fully redundant Backup Control Centre (BCC) is required to ensure business continuity and disaster recovery.

1.3. The System Operator and Market Operator functions will be co-located but will be independent of each other. The security of data exchanges between the two functions is a priority.

1.4. The introduction of the Open Access Regime in Zambia entails a restructuring of the electricity supply industry to facilitate transparent and non-discriminatory third-party access to the integrated power system. The ISMO, through the National Control Centre and the Backup National Control Centre, will be the operational nerve center of this new market structure. The aim is to provide control centers with state-of-the-art systems and robust operational protocols.

1.5. The Ministry of Energy, acting on behalf of the future ISMO entity, now seeks to engage a consultant to conduct a comprehensive preliminary scoping study for the technical design and implementation of the national control centers.

2.0 OBJECTIVES OF THE ASSIGNMENT

The overall objective is to develop a detailed, actionable, and bankable master plan for the establishment of the ISMO's Primary National Control Centre (NCC) and its geographically separate Backup Control Centre (BCC).

Specific objectives include:

2.1 To define the functional, technical, and architectural requirements for both the NCC and BCC.

2.2 To specify the required hardware, software, and communication systems.

2.3 To develop a phased implementation plan for the construction of premises, the installation of software, hardware, and communication systems. The technologies should have smooth interfaces with two existing TNSP control centres.

3.0 SCOPE OF WORK

The consultant shall perform the following tasks:

3.1  Situation Analysis and Data Gathering

• Review the Zambian Grid Code and Distribution Code for System Operator obligatory functions.
• Review the existing national grid infrastructure, generation mix, the design and operation of the National Control Centre, the distribution of control centres and the control centres of other Transmission Network Service Providers (TNSPs).
• Analyze SAPP and EAPP interconnection requirements and regional market integration needs.
• Engage with key stakeholders (Ministry of Energy, ERB, ZESCO, CEC, IPPs, SAPP) to gather functional and operational requirements.
• Benchmark the design of the ISMO control centres described above against leading international practices and standards (e.g., ENTSO-E, NERC, AEMO) for modern, non-asset-owning ISOs.

3.2  Functional and Technical Design

Primary (NCC) and Backup (BCC) Centre Design:

• Specify location criteria, site selection methodology, and recommend potential sites for both centres, considering security, connectivity, and geographical separation.
• Develop detailed architectural and engineering layout plans (floor plans, rack layouts, console designs, meeting rooms, support facilities).
• Define power backup supply (UPS, generators) requirements, cooling (HVAC), physical security, and fire suppression requirements.

Core System Architecture:

• Design the complete Energy Management System (EMS) and Supervisory Control and Data Acquisition (SCADA) system architecture, including redundancy and failover mechanisms between NCC and BCC.
• Design the Market Facilitation Platform architecture to support the gateway model to SAPP and bilateral contract settlement.
• Specify the Telecommunications and Data Network design, including the Wide Area Network (WAN) linking the ISMO to generators, transmission substations, and SAPP.
• Design the Cyber Security Architecture based on the IEC 62443/ISA-99 (Purdue Model) standards for critical infrastructure protection.
• Conduct a market survey to identify appropriate meter data management and billing systems that could be approved.

3.3  Operational Design NCC/BCC

• Design Operating Models and Procedures, including shift patterns and handover protocols.
• Create a Training and Certification Roadmap, including requirements for a System Operator Training Simulator (OTS).
• Develop Business Continuity and Disaster Recovery (BC/DR) plans detailing the failover process from NCC to BCC.

3.4  Technology Specifications and Procurement Strategy

• Produce Detailed Technical Specifications for all required systems: a) EMS/SCADA/OMS software and hardware, b) Real-time servers, historians, and workstations, c) Large-screen visualization systems (video wall), d) Telecommunications equipment (routers, switches, multiplexers), e) Cybersecurity appliances (firewalls, IDS/IPS, SIEM)
• Recommend a Phased Procurement and Implementation Strategy, identifying potential bundled packages and international suppliers.
• Outline a Testing, Commissioning, and Acceptance Plan for all systems.

3.5  Implementation Roadmap and Financial Model

• Develop a Phased Implementation Plan (Gantt Chart) over a 3–5-year horizon, identifying critical dependencies.
• Provide a Detailed Capital Expenditure (CAPEX) Budget for infrastructure, systems, and initial training.

4.0 DELIVERABLES

Period of Performance – Three (3) months from the date of an approved Inception Report

4.1 Inception Report: Within 2 weeks of commencement, detailing work plan, methodology, and stakeholder engagement plan.

4.2 Draft Final Report: Comprehensive scoping study document for review by the Ministry.

4.3 Stakeholder Validation Workshop: Presentation of key findings to stakeholders for feedback.

4.4 Final Report: Incorporating all feedback, delivered in hard copy (10 copies) and electronic format. The report shall include:

• Executive Summary
• Detailed functional and technical specifications
• Architectural and engineering layout drawings
• Phased implementation roadmap (Gantt chart)
• Procurement strategy and draft bidding documents (Technical Specifications)
• Risk management and sustainability plan

4.5 A summarized "Bankable" Master Plan & Presentation: A concise version suitable for presentation to government and potential financiers.

5.0 CONSULTANT QUALIFICATIONS AND EXPERIENCE

The consulting firm (or consortium) must demonstrate:

5.1 General Requirements

• Proven track record in designing National Control Centres and installing facilities and equipmentfor Independent System Operators (ISOs) or Transmission System Operators (TSOs).
• Direct experience in countries that have recently established ISO and MO (experience in Africa, especially SAPP region, will be a distinct advantage).

5.2 Key Expert Requirements

The team must include, as a minimum, the following key experts:

1. Team Leader / Power Systems Expert: Minimum 20 years experience, with direct involvement in establishing or significantly renovating a national grid control centre. Must have held a senior position in a system operations environment.
2. Control Centre Systems Architect: Expert in EMS/SCADA/OMS and telecommunications systems for high-availability control centres, with certification from major vendors (e.g., GE, Siemens, Hitachi).
3. Electricity Market Design Expert: Experience in designing market systems and operational interfaces for energy exchanges or market operators, with knowledge and experience of regional markets.
4. ICT & Cybersecurity Expert: Certified professional (e.g., CISSP, CISM) with specific experience in designing OT/IT security for critical national infrastructure (power grids).
5. Financial Modeler & Procurement Specialist: Experience in developing CAPEX/OPEX models for large infrastructure projects and preparing procurement documents for international competitive bidding.
6. Civil Engineering Expert: Experienced in structural design and analysis ensuring structural integrity and resilience of large infrastructure projects.
7. Architect: Ability to translate the operational requirements of the control centre into a physical space that is efficient, functional, and supportive of its 24/7 mission. Must have adequate experience in handling large infrastructure projects.

6.0 DURATION OF THE ASSIGNMENT

The assignment is expected to be completed within 3 months from the date of contract signing.

7.0 REPORTING AND MANAGEMENT

• The Consultant will report to the Project Manager appointed by the Ministry of Energy.
• A Project Steering Committee (PSC) comprising representatives from the Ministry of Energy, ERB, and other key agencies will provide oversight and approve key deliverables.

8.0 SUBMISSION REQUIREMENTS

Technical and Financial Proposals must be submitted separately, sealed, and clearly marked.

Technical Proposal must include:

• Understanding the assignment and methodology.
• Detailed work plan.
• CVs of all proposed key experts, highlighting relevant experience.
• Company profile and evidence of similar assignments (client references, contract copies).

Financial Proposal must include:

• A detailed breakdown of professional fees (man-days, rates) for each expert.
• All reimbursable expenses (travel, accommodation, workshops).
• Validity period of the proposal.
• Must be quoted in United States Dollars (USD).

9.0 EVALUATION CRITERIA

Proposals will be evaluated based on the following criteria:

Criteria - Weight

Technical Proposal - 80%

Consultant's Relevant Experience - 25%

Qualifications & Experience of Key Team - 35%

Methodology & Work Plan Adequacy - 20%

Financial Proposal - 20%

Total - 100%

*The contract will be awarded to the bidder with the highest combined technical and financial score, subject to a satisfactory due diligence process. To progress to the financial evaluation a bidder should score have a minimum score of 50% from the technical evaluation.

10.0 SUBMISSION DETAILS

Applications must be submitted electronically to admin@cigzambia.org; copy to anna.rosengren@cowater.com no later than 27^th February, 2026.