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ASSIGNMENT OVERVIEW
Assignment Title: Assessment of the Economic and Commercial Viability for three farm blocks in Zambia
Assignment Countries:
ASSIGNMENT DESCRIPTION
THE
INTERNATIONAL FINANCE CORPORATION (IFC)
IFC
— a member of the World Bank Group — is the largest global development finance institution
focused on the private sector in emerging markets. We work in more than 100
countries, using our capital, expertise, and influence to create markets and
opportunities in developing countries. Our mission is to leverage the power of
the private sector to end extreme poverty and promote shared prosperity in a
sustainable way. For more information, visit www.ifc.org.
The
IFC 3.0 strategy aims to stimulate more investment activity across emerging
markets, especially in Low Income Countries (LICs) and Fragile and Conflict
affected States (FCS). Our goal is to create, deepen, and expand markets and
design and develop impactful investment projects. This strategy is, in part,
premised on improved country/sector diagnostic, strategic, and public sector
engagement capabilities, which seek to: 1) resolve obstacles to private sector
growth via diagnostic and strategic work that informs both IFC operations and
relevant IBRD/IDA policy operations; and 2) overcome the shortage of investable
projects in priority markets by proactively improving the private sector
ecosystem at the country and regional level.
BACKGROUND
A.2
About the Zambian Farm Blocks and the Project
The Government of Zambia (“GoZ”) initiated the Farm
Blocks program in 2002, aiming to commercialize agriculture, attract private
sector investments, increase export opportunities, and create agro-based jobs.
The GoZ launched ten Farm Blocks to attract private sector investments for
large-scale integrated agribusiness investments.
The general concept of the farm block comprises a core
venture, large, and medium and small-scale farms operating under an out-grower
arrangement. Since its launch in 2002, the farm blocks program has faced
challenges and of the ten planned farm blocks, only three, namely Luswishi,
Nansanga, and Luena, have seen partial success. The limited interest is due to information gaps and
infrastructure constraints and require advisory and financing support to GoZ.
The information gaps relate to regulatory framework, demand analysis,
feasibility studies, and environmental and social assessments.
The GoZ has requested IFC’s advisory services to support the implementation of the Farm Blocks
initiative, enabled by upstream interventions, with a view to creating an
enabling framework to unlock new private sector investments. The interventions
are aimed at boosting the development of integrated climate smart
agro-industrial developments to improve food security and exports.
Specifically, the IFC will provide support to the Ministry of Agriculture and
Zambia Development Agency to assess the viability/feasibility of the 3 partially functioning Farm Blocks, including
assessment of any constraints to investment in these blocks, with a view to
developing a roadmap for enhancing their performance.
IFC is therefore, looking to engage a competent and
resourceful consulting firm to carry out a needs assessment and Diagnostic
study of the three stated Farm Blocks (Nansanga, Luswishi and Luena) by
conducting a needs assessment to assess the economic and commercial viability
and sustainability of the 3 partially functional farm blocks. This will also
include a comprehensive assessment of strengths and weaknesses and
identification of any potential deal breakers with strong focus on investment.
A.
Objective
The overarching objective of the assignment
is to undertake a comprehensive assessment of the viability/feasibility of the 3 partially functioning farm blocks, including an
assessment of challenges, opportunities, and investments potential in targeted
value chains within these blocks, supporting infrastructure such as warehousing,
with a view to developing a roadmap for enhancing the performance of the 3 farm blocks.
Specifically,
the assessment which will be done in close collaboration and partnership with
Ministry of Agriculture, and Zambia Development Agency will cover 4 broad areas:
(i) Detailed
site assessments of
the 3 farm blocks to analyze the strengths, weaknesses, opportunities and
threats, list development issues and challenges and the identification of any
fatal flaws or deal breakers.
(ii)
Assessment of the suitability of the legal, regulatory
and incentives framework governing the development of the farm blocks, as well
as land commercialization framework. The review will identify. gaps and
proposed recommendations to address the legal and regulatory gaps, and
structuring of the incentives framework.
(iii)
Business case development through market demand
assessments, to determine industry/sector focus, market potential and forecast
investment demand and value proposition to investors. This will include market
testing and targeted investor surveys to identify potential investment
opportunities, and to generate a potential investor pipeline for the farm blocks.
(iv) Develop a comprehensive roadmap with a phased approach
including actions and reforms necessary
to unlock the potential for the 3 farm blocks. This
will include a benchmarking exercise with countries within and outside the
region to ascertain best practice. These recommendations are to become the
basis for advisory work by IFC.
B.
SCOPE
OF WORK
PART 1: Assessment of the Economic
and Commercial Viability of the Three Farm Blocks: As
The specific tasks are:
I.
Detailed
site assessments: This
will build on the environmental and social assessment findings undertaken under
a separate TOR. The task will entail an analysis of the 2 farm blocks. Factors to be evaluated in the site assessment
should include, but not be limited to i) context and locational attributes, ii)
site characteristics, iii) access and proximity to national transport
infrastructure, iv) availability of existing on and off-site infrastructure and
utilities, vi) quality of life amenities, vii) existing markets, viii)
availability of labor, and ix) other existing industrial clusters. The
consulting firm will produce a site assessment report of the three farm
blocks. with a review of existing conditions, a SWOT analysis, list of
development issues and challenges and the identification of any fatal flaws or
deal breakers.
II.
Market
demand assessment
- the Consultant will undertake a market/demand assessment for each of the farm
blocks and prepare and present a “demand side” analysis of consumption from a
national and regional perspective. The
activity will also prioritise value chains for the three farm blocks based on
government priorities on food security, agriculture, and industrialization;
commercial potential including import substitution and export competitiveness;
and investor interest. Specifically, the Consultant will:
·
Investigate
the size of the current domestic and regional market and potential export
markets, including drivers for growth.
·
Indicate
relevant value chains, products and services for investment and potential for
import substitution/export; - this should include detailed incentives offered
towards boosting competitiveness.
·
Undertake
an analysis of consumption patterns over the last 5-7 years.
·
Mapping
of existing strategic partnerships and off-taker agreements (public sector,
private sector, development partners) for various product categories within the
value chains.
·
A 15-year demand forecast in 5-year
intervals for each of the value chains. The demand projections shall be
developed in three scenarios starting with a clear data backed baseline: i) a
conservative case, ii) a base case, and iii) an aggressive case. Each of these
cases should be based on specific scenarios that have clearly stated
assumptions showing the impact of these assumptions on the scenario outcome.
Please
note the market demand assessment will be complimented by an Investor Survey
III.
Investor Survey-
investor survey of a select number of domestic and foreign agro-industrial
firms (including producers, pack houses, processors, and
importers/distributers), against a pre-agreed criterion to determine specific
competitive and comparative advantages. The survey is a critical tool for data
collection (and pipeline identification) and must be done in close
collaboration with the private sector industry associations and with GoZ
agencies such the Zambia Development Agency who have the data on investment
inquiries. The survey will serve several purposes:
·
To
identify and map challenges and opportunities across the 3 Farm Blocks, assess existing constraints to entry
and operations (could be legal, regulatory, infrastructural, certification,
market access), impact of fiscal (tax, levies etc) and non-fiscal policies,
access to finance, and quality of incentives regime on the sector
competitiveness.
·
The
survey provides the analytical base/data (qualitatively and quantitatively) to
guide the identification +justification of the specific reforms required, and
to secure the governments’ commitment to undertake these reforms, as well as
structure the right smart incentives to facilitate investment entry or scale
up.
·
The
survey serves to assess the interest of potential firms in furthering
engagements with IFC which would lead to a preliminary pipeline for Upstream
consideration.
IV.
Business
case development: Using the above analysis, develop a business case for at
least two farm blocks of highest potential, detailing requirements to promote agro-industrial
clusters and commercial enterprises, value proposition and potential
opportunities for investments. It will also bring out specific needs of
priority sectors and the market failures that may be hindering investments.
Using data from investor survey to provide a list of potential pipelines for
investments for IFC consideration, and further engagements.
The methodology for market
demand assessment and investor survey questionnaires must be agreed in advance
of the work and the Consultant will share with the IFC for review.
PART 2- Assessment of the Operational Framework for
Farm Blocks
Review the legal, regulatory, institutional and incentives framework for
development of the farm blocks to identify gaps. The specific tasks will
include:
(i)
Undertake a review of existing background information,
relevant laws, policies, decrees, maps, trade and investment data, existing
sectoral feasibility studies, documents, and/or reports previously undertaken
to understand the key/unique development issues for the farm blocks.
(ii)
Analysis of Farm Blocks operations, processes, and structure: the
consulting firm will assess and provide detailed recommendations for
improvement of Farm Block operations, processes, and structure, including
governance, management, and policies, practices to internationally benchmarked
concepts.
(iii)
Undertake public and private sector stakeholder
consultations through structured and semi-structured interviews and focus group
discussions. This will help identify gaps or challenges in the regulatory
environment, and investors’ perceptions of Tanzania and as investment
destination.
(iv)
Undertake analytics to verify issues raised by the
private sector and key stakeholders during the consultation process on enabling
legislation, regulatory and incentives environment, to understand the
key/unique incentives and disincentives for local agricultural production,
processing, packaging, and logistics etc in the farm blocks.
(v)
Produce a report on the review of the legal,
regulatory, institutional, and incentives framework for the farm blocks. The
report will include recommendations for addressing policy, regulatory and
administrative obstacles to attracting private investment in the value chains
in production, processing, packaging, warehousing, and logistics for exports.
PART 3: Development
of Value Proposition and Road Map
Develop a value
proposition and roadmap detailing a phased approach and potential pipeline,
including actions and reforms necessary to unlock the potential of the 3 farm blocks.
(i)
Using
the information collected through the analysis conducted in the above tasks,
the firm should facilitate discussions with key stakeholders in the 3 farm blocks - under the guidance of the IFC and the
Client’s team - to develop and validate an energizing and realistic value
proposition and roadmap to be used in targeting additional investments in the 3
farm blocks.
(ii)
The
roadmap should present a set of prioritized short-, medium- and long-term
recommendations to address identified binding constraints to investments.
Present actions for getting a few potential investments in the short (2-3
years) to medium (4-5 years) timeframe.
(iii)
The
roadmap should inform how to realise key enablers and critical success factors
for the sector including references and examples from other countries where
specific recommended reform actions worked, and why.
(iv)
These
recommendations are to become the basis for advisory work by IFC which will
inform an Implementation Plan for a child project with an upstream tag, that
will identify line of sight to prospective investment opportunities.
DELIVERABLES
The major
output of this assignment is one comprehensive report.
The report
should have actionable and phased-out recommendations and ensure that
the key messages, recommendations, and thread of argument are consistent,
easily understood and well supported by compelling evidence based on successful
international good practices.
The report should comply with the following
principles:
-
The report should provide a clear narrative and be
understandable to an external reader.
-
The report should include complete and well-organized
quantitative data and qualitative information; and
-
The information provided must meet the principles of
validity, reliability, and accuracy, and represent the truth to the best of the
Consultant’s knowledge.
FUNDING SOURCE
The World Bank Group intends to finance the assignment / services described below under the following:
- BB: Bank Budget
- TF0B8712: IFC
ELIGIBILITY
Eligibility restrictions apply:
- [Please type list of restrictions]
SUBMISSION REQUIREMENTS
The World Bank Group invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Firms may associate to enhance their qualifications unless otherwise stated in the solicitation documents. Where a group of firms associate to submit an EOI, they must indicate which is the lead firm. If shortlisted, the firm identified in the EOI as the lead firm will be invited to the request for proposal (RFP) phase.
Expressions of Interest should be submitted, in English, electronically through WBGeProcure RFx Now
NOTES
Following this invitation for EOI, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.
Only those firms which have been shortlisted will be invited to participate in the RFP phase. No notification or debrief will be provided to firms which have not been shortlisted.
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