Terms of Reference. 1. Introduction. 2. Background

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1 Terms of Reference Consultancy Services for the GEF project Strategic Platform to Promote Sustainable Energy Technology Innovation, Industrial Development and Entrepreneurship in Barbados 1. Introduction The Ministry of Industry, International Business, Commerce and Small Business Development (MIICS), the United Nations Industrial Development Organization (UNIDO) and the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) are jointly developing the Global Environment Facility (GEF) funded project Strategic platform to promote sustainable energy technology innovation, industrial development and entrepreneurship in Barbados. The project aims at up-scaling the domestic sustainable energy manufacturing and servicing industry in technology areas with high potential for GHG emission reduction and local value creation in Barbados. The project is also part of the CCREEE efforts to establish a regional program on innovation and entrepreneurship. The concept for the project was recently approved by the GEF and currently the GEF Endorsement Document is under preparation. In this context, the project partners seek support of a qualified consultancy company. 2. Background Barbados, a country-island of 431 square kilometres and a population of approximately 276,359 (2015), ranks high among Latin America and the Caribbean (LAC) countries in terms of social and economic indicators. However, as a Small Island Developing State (SIDS), Barbados faces special challenges in relation to its small size, remoteness from large markets, lack of resources, heavy dependence on imports, a significant trade deficit, and high dependence on a small number of economic sectors, direct investment and remittances inflow. Moreover, the country demonstrates a high dependence on expensive fossil fuel imports and economic key sectors are highly vulnerable to external economic, natural and climate shocks. As a reaction, the Government has introduced a bundle of forward-looking polices which aim to address the economic, social and environmental challenges simultaneously and seek a further diversification of the export base and competitiveness of the economy. In the National Strategic Plan , the Government has set the goal of becoming a green circular economy and the most environmentally advanced green country in Latin America and the Caribbean. The Government has introduced a number of policies, regulatory frameworks and incentives to promote sustainable energies. However, so far this has not resulted in any significant economies of scales in terms of investment, local industrial value creation and innovation. The uptake of renewable energy and energy efficiency faces a bundle of interrelated barriers, which need to be addressed. The weak innovation and absorption capacities of the domestic sustainable energy industry are significant barriers for the dissemination of sustainable energy technologies and services. The local private sector continues to face various constraints. In this context, the GEF project aims to create an enabling environment for sustainable energy industrial development, entrepreneurship and technology innovation. The strengthening of the domestic sustainable energy manufacturing and servicing industry in technology areas with high GHG emission reduction potential is perceived as an important contribution to the attainment of the climate change mitigation targets of the Nationally Determined Contribution (NDC) of Barbados. To address the barriers of the domestic private sector, the GEF project foresees the following activities: (a) identifying priority technology areas with high potential for GHG emission reduction and local value creation in Barbados (b) establishing a strategic platform to promote coherent demand-oriented and supplier-oriented policies and support instruments, (c) establishing a sustainable energy cluster to attract investments and harness productivity gains, (d) establishing a business and communication platform to promote technology solutions with high GHG emission reduction potential in the Caribbean, (e) creating a framework and hub for 1

2 qualification, certification and accreditation of equipment and services, and (f) creating stronger links between applied research instruments and sustainable energy entrepreneurs. 3. Objectives and deliverables of the assignment The overall objective of the consultancy assignment is to support UNIDO and MIICS with the successful finalisation of the project preparatory phase. Concretely, the assignment includes the following tasks: (a) develop a sustainable energy industry market assessment report; (b) develop a pre-feasibility study on the proposed sustainable energy technology cluster/park; and (c) provide technical inputs for the GEF Endorsement Document. Interested bidders shall propose an effective implementation methodology and activity plan for the assignment in their technical offers. The consultant shall provide the following deliverables: Deliverable 1: Inception report - Based on an initial telephone/skype conference meeting the contractor will provide an inception report on the assignment. The inception report will include a detailed activity plan, time schedule, a list of key literature to be reviewed, a list of key stakeholders to be consulted, schedule of stakeholder workshops and meetings, assessment questionnaires and the table of contents of the Market Assessment Report and the Pre-feasibility Study. Deliverable 2: Sustainable Energy Industry Market Assessment Report - Based on broad stakeholder consultations, the assessment will identify priority sustainable energy products and services with high GHG emission reduction, market and value creation potential in Barbados and the wider Caribbean. It will identify niche markets for the Barbadian sustainable energy industry or related industry with the potential for spin-offs (e.g. sugar-cane industry). Some potential priority technology areas are already included in the PIF (e.g. PV and LED assembling, electric mobility, waste to energy). The assessment will develop an overview on the barriers these technology/business areas face and provide suggestions how the GEF Project can address them. It will also provide key recommendations for the focus of the strategic platform, the potential technology cluster/park, as well as the policy and qualification framework. It will also provide important inputs for the envisaged sustainable energy innovation and entrepreneurship program of CCREEE. - The market assessment will appraise two different perspectives: o o Internal factors: current size of the local sustainable energy market against its potential, as well as its trends, growth rates, industry structure and segmentation. All of them based upon available technology, price sensitivity, demand for variety and level of emphasis on service and support. External factors: political conditions, social potential force, policy and regulatory frameworks, society awareness and economy (both local and regional); international sustainable energy industry trends; the Barbadian market cannot be conceived isolated but as part of the wider Caribbean, South and Central American market; - SWOT analysis: The market assessment will include a SWOT analysis matching internal strengths and weaknesses of the existing sustainable energy industry up against external opportunities and threats; it will also provide important inputs to determine the feasibility and viability of the potential technology cluster/park. - Gender analysis: The assessment will include a gender analysis. Women entrepreneurs will be especially targeted to better understand the challenges they face and the success factors that have led them to succeed. The outcome of this consultation will be integrated in the project design with the objective to support gender mainstreaming. The Institute for Gender and Development Studies (IGDS), hosted at University of the West Indies - Cave Hill Campus, will be thoroughly consulted during the project preparation phase. Moreover, cooperation with the Island Women Open Network (IWON) for Sustainable Energy & Climate Resilience in Island Nations will be established. 2

3 Deliverable 3: Pre-feasibility Study on a Sustainable Energy Technology Cluster/Park In parallel to the markets assessment, a study to determine the feasibility and viability of the proposed sustainable energy technology cluster/park will be developed. The findings will be used for the development of a full-fledged feasibility study during the main phase of the project. The pre-feasibility process will include the following elements: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Stakeholder consultations with relevant decision-makers in the public and private sector in Barbados and internationally to estimate the added value and support for a technology cluster/park; special attention will be given to institutions dealing with industry promotion, as well as relevant industry players and investors; Cost-benefit/risk-chances analysis to determine the relevance of such a technology cluster/park; Purpose the most suitable/cost-effective design for the technology cluster/park out of various options; identify potential synergies and/or industrial symbiosis among key actors (industry, applied research centers, universities, academia etc.); analysis at all levels of the industry chain: end-user market, industrial market and reseller market, private sector investors and venture capitalists; Undertake a primarily social and environmental impact analysis of such a technology cluster/park and propose mitigation measures; propose measure for gender mainstreaming; Propose and discuss efficient implementation arrangements with public and private key stakeholders; Identify and discuss potential incentives for such a cluster/park with the Government (e.g. land, subsidies); Identify and discuss potential foreign direct investment (FDI) and financing from international companies, banks and investors; mobilize co-funding commitments (letters of intent) from all interested parties; Recommendation of potential places to establish the cluster; preferably in industrial zones (IZ) where the technology cluster could benefit from an existing ecosystem among industries, applied research, technical companies, applied research centers, universities and academia etc.; and Risk analysis and mid-term sustainability strategy for the cluster/park. Deliverable 4: Inputs for the GEF Endorsement Document The following inputs for the finalization of the GEF Endorsement Document will be provided: (i) (ii) (iii) (iv) Excel based tool and methodology to estimate and monitor the direct and indirect GHG emission reduction in Barbados and Caribbean resulting from the envisaged expansion of the sustainable energy manufacturing and servicing industry; Outline the key functions, design and composition of the strategic platform to be established under the GEF project; Present the results of the market assessment and pre-feasibility study in a validation workshop to be organized by MIICS and UNIDO at the end of the preparatory phase; and Provide inputs for the result framework and implementation strategy of the GEF Project; 4. Scope of work and time schedule TASKS DELIVERABLES ESTIMATED WORKING DAYS (w/d) SPREAD OVER 6 MONTHS 1. Inception meeting and report Inception report approved by UNIDO and MIICS (incl. detailed activity plan, time schedule, list of key literature and stakeholders, schedule of stakeholder workshops and meetings, assessment questionnaire(s), tables of 3 working/days 3

4 2. Sustainable Energy Industry Market Assessment 3. Assess the feasibility and viability of a sustainable energy technology Cluster/park 4. Provide inputs to the GEF Endorsement Document contents of the Market Assessment Report and the Prefeasibility Study) Sustainable Energy Industry Market Assessment Report (incl. graphs and editable calculation sheets; fully edited and ready to be published in English) Pre-feasibility Study on a Sustainable Energy Technology Cluster/Park (incl. graphs and editable calculation sheets; fully edited and ready to be published in English) Inputs to the GEF Endorsement Documents (GHG methodology, result framework, workshop presentation, outline for the strategic platform); 27 working/days 20 working/days 5 w/d working/days TOTAL 55 w/d (home based and in the region) The activities under this contract should be completed within a period of six (6) months from the effectiveness of the contract. The proposed plan for implementation of activities and deliverables: Deliverables Deliverable 1 Inception Report Deliverable 2 Market Assessment Deliverable 3 Pre-feasibility Study Deliverable 4 Inputs CEO Endorsement Months In addition, the consultant will be required to deliver the following: Item High-resolution photographs (min. 3 MB, at least 20) that illustrate the undertaken activities. The consultants will cede all appertaining rights to unlimited use of the respective pictures to UNIDO, the Government of Barbados and CCREEE. Item All used raw files and calculation sheets in editable form (e.g. xls) 5. Coordination and Reporting The consulting company will report to the UNIDO Project Manager and will closely coordinate with the project focal points in the MIICS and CCREEE. All draft and final deliveries are subject to approval of UNIDO s Project Manager before these can be concluded. 6. Qualification and Evaluation Criteria Envisaged profile of the Consulting Company: QUALIFICATION REQUIREMENTS The assignment needs a multi-disciplinary team of international and local experts with strong expertise in the areas of sustainable energy, technology innovation and industrial development. Evidence must be included in the technical proposal which demonstrates the following: 4

5 Registered consulting company with at least five (5) years of public and private consulting experience in the areas of sustainable energy and industrial development; Team members demonstrate a balanced academic background in renewable energy and energy efficiency, economics and industrial development. Minimum two consultants of the team shall obtain at least a Master degree on engineering or social science with focus on sustainable energies. Additional qualifications in industrial development, entrepreneurship and innovation are a strong added value. Team members have a track-record of at least five (5) years of consulting experience in renewable energy and/or energy efficiency particularly with regard to industry development and market deployment. Team members have a track-record of at least (5) years of consulting experience in industrial value chain development methodologies (e.g. technology cluster building, industrial up-grading, innovation and entrepreneurship). Experience with energy technology or SME clusters and market assessments are a strong added value. Team members have a track-record of a minimum of five (5) years of work experience in the energy or another industrial sector in Barbados; The employment of local experts in the assignment is a precondition. Demonstrate strong analytical writing skills. Ability to coordinate an inter-disciplinary team and manage complex assignments in a multi-cultural setting. Strong problem solving, communication, research and analytical writing skills. Fluency in English. The working language for the assignment will be English and all reports and communication will be in this language. 7. Application Procedure Applicants shall submit their written proposals in English: Short technical proposal (including proposed approach and methodology, work and activity plan, detailed CVs of experts, copies of university degrees, certifications, licenses as well as proven track record of implemented assignments). Financial proposal in USD including all costs and taxes (includes a detailed work-time-expert-diagram indicating daily rates for individual team members). Documents of similar assignments if available; 8. Further information Applicants are requested to submit their proposals no later than 24 July, 17:00 hrs., CEST, by registering on the UNIDO procurement page ( In case of difficulties, applications could exceptionally be sent to procurement@unido.org. The bidder should, however, provide an objective and convincing justification for not having submitted via the procurement system. Further information and the Project Identification Form are available at: and 5

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