SPECIFIC TERMS OF REFERENCE PRISM Formulation Part II, Support in Identification of Potential Hosts for a Pro-Poor Private Sector Development FWC BENEFICIARIES 2009 - LOT N 10 - Trade, Standards and Private sector EUROPEAID/127054/C/SER/multi REQUEST N 2011/269413/1 The Action Fiche (AF) concerning the project Poverty Reduction through Inclusive and Sustainable Markets (PRIMS) was presented to the Quality Support Group (QSG) in March, 2011. Further its examination, the QSG asked on one hand to revise the original set-up of the for the Pro Poor Private Sector Development and consequently, the assessment of the institutions which could potentially play this role. On the other hand, it asked to shift from a service contract to a combination of a service and a grant contract to finance this. The objective of this proposed framework contract is to supply the Commission with the relevant information to amend the AF. 1. BACKGROUND Private sector development is key to economic growth and it is increasingly being appreciated that private sector enterprises have an important role to play in poverty alleviation: they can serve the poor as clients and customers and involve them as employees, entrepreneurs and traders along the value chain, thus building capacities, generating employment and if the environment is conducive bringing small businesses from the informal into the formal economy. Market-based approaches to poverty reduction and innovative business models leading to more inclusive markets can increase the private sector's contribution to poverty reduction, development and achievement of the Millennium Development Goals. Innovative approaches to engaging with the private sector in development can leverage private sector funding, skills and competences in a way that contributes to a nation s growth and competitiveness. The last few years have seen an upsurge of interest in market development approaches amongst aid agencies. Alongside M4P [Making Markets work for the Poor] there is UNDP's Growing Inclusive Markets [GIM], the IADB's 1 Opportunities for the Majority and the IFC's Next Four Billion 2. Amongst businesses, there is growing interest in social investment, sustainable business practices, fair trade and engaging with the Base of the (Economic) Pyramid. Although terminology and emphasis may differ, all of these approaches see a market-based economic engagement with the poor as essential for sustainable development. In this context there is room for many more inclusive business models. Therefore, in line with this need to encourage inclusive markets in response to the local needs and by involving local actors and institutions, the Country Strategy Paper (2007-2013) agreed by the European Commission with the Government of Bangladesh, following its mid-term review, has been made more explicit in terms of the need for a more pronounced pro-poor focus in the private sector development (PSD) and trade-related assistance (TPSD) initiatives. PRISM (Poverty Reduction through Inclusive and Sustainable Markets) aims to provide an overall framework to allow testing of different pro-poor PSD approaches and inclusive market models as to their effectiveness, and to replicate or scale up those that are proven to be successful. PRISM accepts the premise that different models need to be tested in the context of Bangladesh to determine which have the best prospects for replication and/or scaling up to have significant impact upon the poor. 1 http://www.iadb.org/en/topics/opportunities-for-the-majority/opportunities-for-the-majority,1377.html and http://majoritymarkets.org/. 2 http://rru.worldbank.org/thenext4billion and http://www.wri.org/publication/the-next-4-billion.
PRISM will focus on: Economic sectors where the poor are disproportionately represented and where there is significant scope for their greater involvement as entrepreneurs, traders, workers/employees, producers. Regions of Bangladesh where the poor in the selected sectors are most concentrated. To avoid fragmentation of effort the geographic area of concentration will be the Administrative Division, however within the selected divisions preference will be given to interventions which are based on districts with a high concentration of the poor involved in the selected economic sector. Areas with the highest incidence of poverty in general, for instance Rangpur and Barisal Division. The overall objective of the project is to reduce poverty across Bangladesh by promoting sustainable pro-poor growth. The specific objective is to enhance the competitiveness of cottage and micro and small enterprises (MSEs) in order to generate employment, increase self-employment opportunities, and reduce vulnerability for poor households in targeted areas of the country and selected sectors of the economy where pro-poor impact is more likely to be significant and sustainable and in a way that addresses the potential adverse effects of market-driven development on the poor. The expected results of this new programme are: 1. Identified opportunities for pro-poor growth through individual baseline studies in a number of key sectors 3 with specific reference to their features in the target regions. The selected economic sectors are value-added and in the field of agro-processing in order to maximise impact on the rural areas (where the poor are most concentrated). 2. Innovative and effective inclusive business models tested, replicated and/or scaled up through approximately thirty five (35) pro-poor Private Sector Development projects. These projects will be monitored and evaluated to identify best practices models applicable to Bangladesh, and are expected to lead to the following outcomes 4 : a) Barriers within the enabling environment to the poor s access to markets and business opportunities lowered through: (i) Lowering of regional and/or sector specific regulatory barriers to the poor s participation in markets; (ii) Lowering of barriers to the poor s participation in markets caused by gender, age or social and cultural factors; (iii) Lowering of information, skills and educational barriers to the poor s participation in markets b) Access to assets and resources improved to enhance the poor s access to markets through: (i) Improvement in the access of the poor to land; (ii) Improvement in the access of the poor to equipment and raw materials; (iii) Improvement in the access of the poor to finance; c) The poor empowered to voice their needs and priorities and influence their situation regarding access to markets through: (i) Improved access to information for decision-making; (ii) Improved access to support and advocacy networks; (iii) Improved capacity to lobby for beneficial reform 3. An effective monitoring and evaluation system established that will allow assessment of the immediate impact of the supported projects and their potential for further scaling up/replication to have major impact on the poor in Bangladesh. 3 As defined in the International Standard Industrial Classification of All Economic Activities, Revision 4: Group 101: Processing and preserving of meat; Group102: Processing and preserving of fish, crustaceans and molluscs; Group 103: Processing and preserving of fruit and vegetables; Group 104: Manufacture of vegetable and animal oils and fats; Group 105: Manufacture of dairy products; Group 106: Manufacture of grain mill products, starches and starch products; Group 107: Manufacture of other food products; Group108: Manufacture of prepared animal feeds; Group 151: Tanning and dressing of leather manufacture of luggage, handbags, saddlery and harness; Group 152: Manufacture of footwear; Group 561: Restaurants and mobile food service activities. 4 The key element of the PRISM Programme is a competitive grant scheme. Each grant applicant will be required to estimate their contribution to certain core indicators (including number of FTE (Full Time Equivalent) jobs created). These targets will be summarised at the end of each open call process and will be monitored and evaluated to allow achievement of PRISM s higher level objectives to be monitored. At this stage it is not possible to quantify the specific results of approved grant projects. 2
4. Systems for exchanging information on the results of monitoring and evaluation of innovative approaches established so as to encourage replication in other sectors and divisions and scaling up to have significant impact on the poor. 5. A sustainable basis established for the continued piloting and development of scaling up and replication of successful innovative inclusive business models through the enhancement of local institutional capacity at macro and meso levels. PRISM - Method of implementation "PRISM will be implemented by partial decentralised management through the signature of a financing agreement with the People's Republic of Bangladesh, the foreseen operational duration is 72 months as from the signature of the Financing Agreement. Partial decentralised mode: A competitive grant scheme designed to support a wide range of eligible applicant Bangladesh-based organisations in the piloting (design and implementation) of innovative inclusive business models and the scaling up and replication of inclusive business models proven to be successful. 5 Each intervention would be an integrated project with clear expected results contributing towards pro-poor PSD. Whilst the activities of each project will be defined by grant applicants (with the support of PRISM), the latter would be expected to draw from a wide spectrum of possible actions and address a number of dimensions relevant to pro-poor PSD. A vital element of each action must be that it involves a strong capacity development element to strengthen local actors and thus the sustainability of achievements. Centralised mode: Two technical assistance contracts to support: (A) A Pro-Poor PSD (based in a suitable local institution) to (i) support the development of innovative inclusive business models and the scaling up and replication of successful inclusive business models proven to be successful; (ii) monitor and evaluate the performance of supported innovative approaches with respect to their impact (both immediate and potential for scaling up) on pro-poor economic development and (iii) disseminate widely knowledge of those approaches found to be effective. (B) The MoI/SME Cell with the management of the PRISM Grant Scheme and the paying authority, planning, monitoring and financial reporting related to such scheme. The project will be implemented through the signature of contracts for services and supplies following calls for tender and through the signature of the grant contracts following calls for proposals. The Commission controls ex ante all the procurement and grant procedures. Payments are executed by the Commission. The Contracting Authority will be the SME Cell within the Ministry of Industries working in close cooperation with the SME Foundation. The selection of the contracting authority was undertaken following an institutional assessment of relevant structures. The SME Cell and the SME Foundation have been judged as the two most relevant and suitable ones to contribute to the management of PRISM. A memorandum of understanding (MoU) between the SME Cell and the SME Foundation setting out their respective responsibilities with respect to programme management will be established. Technical assistance will support the SME cell and SME Foundation in terms of institution building and capacity development support." 2. DESCRIPTION OF THE ASSIGNMENT 2.1 Global objective The objective of this proposed framework contract is to supply the EU Delegation with the relevant information to amend the Action Fiche (AF). 5 It should be noted that grants would be intended to support local projects with developmental objectives and not aimed to subsidise for-profit activities of private enterprises. Clear eligibility criteria and rules on the utilisation of resources will be included in the guidelines for the call for proposals of the grant-scheme in PRISM. 3
2.2 Specific objective(s) (i) To revise the original set-up of the for the Pro Poor Private Sector Development and consequently, to carry out the assessment of the institutions which could potentially play this role. (ii) to analyze the technical and financial implications to shift from a service contract to a combination of a service and a grant contract to finance this. 2.3 Requested services The technical assistance team will: Institutional assessment 1. Identify existing national academic, research and development or comparable institutions which potentially should be interested in hosting the operation of the PRISM Resource Facility based upon their existing profile and operations. This might include inter alia (but this list should not be taken to be exclusive and is only for guidance purposes): PKSF BSCIC BRAC Grameen Bangladesh Institute of Development Studies University of Dhaka, Department of Development Studies Centre for Policy Dialogue Research Initiatives, Bangladesh Centre for Development Research Bangladesh Development Research Centre Bangladesh Centre for Advanced Studies Unnayan Onnashan. 2. Prepare an institutional assessment of the institutions identified under step 1 (to a maximum of 20 institutions). The institutional assessment should address: The level of demonstrable interest and commitment of the institution. The level of relevantly skilled staff of the institution. The financial self-sustainability of the institution. The likelihood that the institution could staff and finance the continued operation of the resource facility after the completion of EC support. The extent to which the institution has established effective and cordial operational links with the Government of Bangladesh. The experience of the institution in implementing programmes financed by aid donors. The existing systems of the institution for financial management and reporting. The existing systems of the institution to monitor the impact of their interventions. Basis of support for the host institution The EU wishes to support a local institution by providing grant support to host the. The TA team will: Based on the institutional assessment (and the resultant determination of the number of potentially viable hosts), recommend whether the EU should undertake an open or restricted Call for Proposals from local institutions to host the or whether, in case of an insufficient number of capable or interested institutions, a direct grant should be offered. The recommendation should be 4
fully documented and, in the case that a direct grant is proposed, the proposed host should be named and full justification provided in accordance with the Practical Guide (PRAG). Revision of draft program documentation The EU has drafted a full range of program documentation including the terms of reference for the facilitation technical assistance, draft action fiche, TAPs, etc. The TA team will: Propose a reallocation of tasks and financial resources between the grant to the local institution hosting the and the facilitation service contract parts. Revise all existing program documentation accordingly. Prepare the necessary procurement documentation for the grant for the host institution of the relevant to the basis of selection agreed. 2.4 Required outputs The specific outputs are: A draft and final Report which will include a detailed description of the activities undertaken, results obtained and conclusions drawn from the mission. This will include the following specific outputs as annexes to the draft and final report: a) Annex 1: An institutional assessment of potential hosts of the PRISM. b) Annex 2: Recommendation based on the institutional assessment as to whether the host of the PRISM should be selected through an open or restricted Call for Proposals or whether, in case of an insufficient number of capable or interested institutions, a direct grant is more appropriate (in the latter case, the proposed host needs to be recommended with full justification for the direct award). c) Annex 3: Recommendations as to the reallocation of tasks and financial resources between the grant contract and the facilitation technical assistance service contract. d) Annex 4: Revised program documentation for PRISM: Action Fiche (AF) amended, Technical and Administrative Provisions (TAPs), TOR for the call for proposals and/or contract services amended. e) Other annexes as deemed necessary by the EU Delegation. 3. EXPERTS PROFILE 3.1 Education, experience, references and category of each expert The mission team will consist of two (2) experts: one senior and one junior. The combination of experts should provide practical experience in all aspects of pro-poor private sector development, analysis of Bangladeshi NGOs capacities involved in pro-poor private sector development, thorough experience in institutions capacity assessment and thorough knowledge of the European Union's Practical Guide (PRAG). 3.1.1 Expert 1 - Team Leader (Senior): The expert must be a senior expert with the following qualifications: Master degree in Economics, International trade, Business management or related disciplines, with experience in pro-poor private sector development. A minimum of 10 years experience in managing/supervising private sector development and/or trade related projects and substantial experience in project formulation. Thorough experience in institutions capacity assessment. 5
Experience in the EU s Project Cycle Management procedures. Thorough knowledge and experience of EU regulations relating to grant scheme management. Experience in working at senior level with government ministries, international organizations, and private sector organizations. Project and/or regional experience in developing and/or transitional economies, preferably South Asia. An excellent command of both oral and written English. Good communication skills and the ability to lead a team of experts. The Team Leader will be responsible for the overall planning and implementation of the mission as well as for the production and presentation of the reports. 3.1.2 Expert 2: NGO expert (Junior) The expert must have the following qualifications: Master s degree in a field related to social and/or economic development. A minimum of 3 years experience in pro-poor private sector development. Relevant field experience in South Asia with private sector development projects. Sound knowledge, experience and understanding of the NGOs involved in private sector development in Bangladesh. Thorough experience in institutions capacity assessment. Familiarity with Project Cycle Management. Excellent communication skills in English and Bangla and the ability to work in a team. 3.1.3 Additional Team requirements The team will operate under the supervision of the Team Leader, who will be directly responsible to the EU for the overall quality and consistency of reports and documents produced by the team. The experts must have sound communication skills and be capable of working as a team. Each expert must be able to produce high quality reports rapidly. The team will be able to work independently in terms of computer and office facilities. The team will have excellent writing and editing skills. If the team proves to be unable to meet the level of quality required for drafting the reports, the consulting firm will provide, at no additional cost to the Commission, immediate technical support to the team to meet the standards required. 3.2 Working language(s) All experts must be fluent in English with proven oral and written skills. 4. LOCATION AND DURATION 4.1 Starting period The expected starting period is 25 September 2011 4.2 Foreseen finishing period or duration The expected end of the assignment is 15 December 2011. 6
4.3 Planning The team will liaise closely with the EU Delegation in Bangladesh and it includes a briefing at the beginning of the mission and a debriefing before departure from the country. The Delegation will also make available all relevant documentation in its possession. The mission itself must be generally selfsustaining. ACTIVITIES TO BE UNDERTAKEN Team Leader NGO expert Total Days working days Days working days Days working days Preparation of the Mission 2 2 - - 2 2 Travel to home base 1 1 1 1 2 2 Mission in Bangladesh: including briefings at the EU Delegation, meetings with (national) authorities, private sector stakeholders, interviews/survey stakeholders and donors. Workshops, debriefings with EU Delegation, executing agency and relevant authorities including preparation of the draft report, 22 16 22 16 44 32 Final report writing at home base 5 5 3 3 8 8 TOTAL 30 24 27 20 56 44 4.4 Location(s) of assignment The mission will start with an initial briefing with the EU Delegation in Dhaka. Regarding to the field work, the mission will take place across Bangladesh. 5. REPORTING 5.1 Content, language and format of reports Three days after arrival in Dhaka the team will present the Delegation with a work plan and a meeting schedule for the mission. The team will produce written weekly progress reports (maximum five pages), which will serve as the basis for a weekly discussion on progress between the EU Delegation and the mission. The last progress report should include a concise summary of findings, to be presented to the EU Delegation, as a basis for discussion, three days before the debriefing meeting at the EU Delegation. A preliminary draft report in English containing the information requested in this TOR (including the specified annexes) will be submitted by the team to the EU Delegation by electronic mail before leaving Bangladesh. The final version of the Report shall not exceed 30 pages, excluding the annexes and it will contain an executive summary of no more than 5 pages. 5.2 Reporting procedure and number of reports Comments on the preliminary draft report should be sent to the contractor within a maximum of 2 weeks after the receipt of the document, to be integrated into a revised version (the Draft report) within a maximum of 1 week after receipt of the comments; The Draft report will be submitted to the EU Delegation in Bangladesh in PDF Format; 7
Comments on the Draft report should be sent to the contractor within a maximum of 2 weeks after the receipt of the document to be integrated into a final version within a maximum of 2 weeks after receipt of the comments; The Final Report will be submitted to the EU Delegation in Bangladesh, electronically and in addition by Special Delivery in five copies in English within 2 weeks after having received the comments from the EU Delegation on the Draft report. An electronic copy of all files and documents will be transmitted by e-mail, simultaneously with the submission of the draft and final documents to the EU Delegation (nicole.malpas@eeas.europa.eu, rubayat.jesmin@eeas.europa.eu, or jeanclaude.malongo@eeas.europa.eu ) ; The Commission reserves the right to request the team to have the Final Report re-edited as many times as necessary before approval. The Commission does not foresee extra days for such report editing. Financial penalties will be applied if deadlines indicated for the submission of reports (drafts and final, in hard and electronic copy) are not strictly adhered to; Documents acquired during the mission will be submitted to the Delegation together with the Final Report. All document, reports, or other material acquired during the mission will be submitted to the Delegation at the end of the mission, and will remain available for further missions and/or projects; The draft final report will include: executive summary, detailed table of contents, glossary of acronyms, list of tables and timetable (time sheets should be submitted separately), minutes of meetings report on field visit, any other relevant materials. The Final Report will clearly contain on the cover page the following indication: Letter of contract, number (..) of the (.) Framework contract. It will follow EC guidelines for reporting obtainable from EuropeAid s website: http://ec.europa.eu/europeaid/work/framework-contract/beneficiaries- 2009/index_en.htm Contractual and financial finalisation of the assignment will be conditional upon EC approval of the final report 5.3 Tentative Time Schedule Field Work 25/09/11 Preliminary Draft Report 27/10/11 Draft Report 21/11/11 Final Report 15/12/11 6. ADMINISTRATIVE INFORMATION Under reimbursable expenditure, a budget shall be allocated to the consultant for the following inter alia: local transport. See http://ec.europa.eu/europeaid/work/framework-contract/beneficiaries- 2009/index_en.htm for description of included reimbursable costs. Equipment purchase is excluded. During all contacts with the Bangladeshi Authorities, or any project or Organisation, the consultants will clearly identify themselves as independent consultants and not as official representatives of the European Union. All documents and papers produced by the consultants will clearly mention on its first page a disclaimer stating that This report has been prepared with the financial assistance from European Union. The views expressed herein are those of the authors and therefore in no way reflect the official opinion of the European Union. 8