Sunday, October 30, 2016

GIZ Rwanda,ToR for the Development of Guidelines for Feasibility Studies Jobs in Rwanda

Terms of Reference for consultancy
TheDevelopment of Guidelines for Feasibility Studies
For the Project “Macroeconomic Advice for poverty reduction in Rwanda”
(07thDecember, 2016 to 30thApril, 2017)

Project Objectives
The Project “Macroeconomic Advice for poverty reduction in Rwanda” contributes to the overall objective of improving the quality of information and advice provided to economic policy makers, especially in MINECOFIN, necessary for effective decision-making processes.
The project is working in three intervention areas: 1) support of the Chief Economist Department in order to strengthen the capacities for macroeconomic assessments, 2) working with the National Development Planning and Research Department to improve capacities at individual and institutional level for public investment management and 3) strengthening the cooperation between MINECOFIN, NBR, NISR, EPRN und other stakeholders in the field of economic and investment policy, including research institutions.
Background Information
The National Development Planning and Research Department (NDPR) within the Ministry of Economic Planning and Finance (MINECOFIN) is in charge of overseeing and quality assuring the process of public investment planning. NDPR serves as technical secretariat for the Public Investment Committee (PIC), which scrutinizes all projects on central government level, before they can be considered in the further budget planning process.
Well-prepared feasibility studies are crucial to ensure effectiveness of national investments and need to deliver a sound basis for their implementation. Besides scrutinizing proposed investments, NDPR’s task also comprises guidingMinistries and Agencies in conducting comprehensive feasibility studies as part of the efforts to improve planning processes and the preparation of projects in general.
It is to be mentioned, that NDPR is involved in different training and coaching activities in order to improve capacities of planning officers in Line Ministries and affiliated Agencies. This staff requests further guidance on how to follow up the project cycle, starting with the implementation of feasibility studies. In this regard written guidelines shall help to effectively communicate minimum requirements with Ministries and Agencies.
These Terms of Reference are intended to guide the development of Guidelines for Feasibility Studies for all projects at central government level.
Objectives of the consultancy
The consultant should develop guidelines to support planning officers on central government level in commanding feasibility studies entailing appropriate technical designs, socio-economic justification, proper environmental assessment, institutional arrangements on implementation and operation as well as sound cost-benefit analysis. Guidelines shall cover the most common project types and sectors.
The development and application of guidelines for feasibility studies will strengthen both, personal capacities of planning officers on central level and institutional capacities by setting minimum requirements for project preparation and quality assurance.
In particular, the assignment aims at
  • Integrating and mainstreaming of existing knowledge and best practice on feasibility studies, with a special focus on cost-benefit-analysis, into a comprehensive well-documented set of guidelines
  • Producing comprehensive guidelines with the following dimensions involved:
    • Elaborating a system of appraisal requirements considering project volumes (thresholds) and project types: Scope and deployment of pre-feasibility studies and feasibility studies as well as provisions for the analysis of small projects, which do not explicitly require a feasibility study.
    • Explaining the sequencing of the (technical) planning process, outlining the timing of necessary studies and the integration into public planning and budgeting procedures
    • Recommendation on deployment of standardized calculation parameters, e.g. discount rate, conversion factors
    • Elaborating specific guidance for the preparation of cost-benefits analysis in selected sectors focussing on the assessment and estimation of benefits (e.g. transport, energy, water, agriculture, commercial infrastructure…)
    • Specific guiding questions and checklists for commanding and checking feasibility studies
  • Coordinating guidelines with relevant stakeholders, especially harmonizing the topic of PPPs with expectations of the government.
  • Increasing awareness of planning officers towards sustainability and economic aspects with regard to the planning of public investments
Scope of Work
As an introductory phase the consultant should perform the following tasks as desktop research:
  • Analyse the most important types of projects listed in the development budget for the central level and the subsequent requirements for specific guidelines for feasibility studies (6-8 suitable categories / sectors should be defined, which may later be amended). The background of this is that the level of detail, which is required for pre- feasibility and feasibility studies, will vary according to the type of project and sector. The guidelines should cover the most important project types in terms of their economic characteristics.
  • Analyse available planning and construction standards, guidelines on estimation and budgeting of O+M expensesas well as available information on feasibility studies from relevant Line Ministries; in particular, the Ministry of Infrastructure (for roads, electricity and water projects), Ministry of Agriculture, Ministry of Commerce and Trade, Ministry of Natural Resources, Ministry of Health and the Ministry of Education should be covered.
  • Gather and analyse available guidelines from other countries and International Finance Institutions in order to incorporate best practices and recommend reference documents for deepening guidance on assessment methodologies and inputs for specific areas / sectors.
  • Review selected feasibility studies (max 5-6) on projects currently under implementation in order to analyse common in-country practices
  • Organize a kick-off meeting with members of the “technical team” outlining the methodology and concept for elaboration of the guidelines
The guidelines shall touch upon the relevance of feasibility studies in the process of public investment planning and shall lay out the principles of preparing and examining feasibility studies in a condensed way, focussing on essential and Rwanda-specific requirements, while referring for more deepening information to further studies (reference guide). Accordingly, the guideline itself shall cover (at least) the following aspects
  • Concept of investment planning and appraisal
    • Basics and relevance of sound investment planning
    • Introducing concepts and sequencing of pre-feasibility and feasibility studies, outlining the deployment of pre-feasibility and feasibility studies according to thresholds and project types (traditionally procured projects, PPPs, Joint Ventures, SOEs)
    • Technical planning sequence showing interrelation between technical design stages and complementary studies
  • Preparation of pre-feasibility studies
    • Outlining required level of detail across thematic areas of technical, social, environmental and economic analysis
    • Explanation of sector-specific needs
    • Explanation of specific needs for the analysis of large investments, PPPs, Joint Ventures and SOEs at pre-feasibility stage
  • Preparation of feasibility studies
    • General, cross-sectoral guidelines (minimum requirements)
      • Steps and general approach
      • Project definition (objectives, optionsdesign, marketing, implementation…)
      • Assessment of technical, social, environmental, financial and economic (incl. risk and sensitivity analysis) dimensions
      • General recommendations
        • Time horizon
        • Estimation of investment and operational costs, residual value
        • Use of conversion factors
        • General rules for calculation of ratios
          • Assumption of discount factors
          • Financial and economic indicators
    • Sector specific guidelines / requirements
      • Calculation of benefits, major / essential categories
      • Application of conversion factors
    • Specific requirements for Joint Ventures, PPPs and SOEs
  • Requirements for preparing “concept notes” for projects below the minimum threshold
  • Annexes: Template for terms of reference for feasibility studies, forms and templates for e.g. the validation of feasibility studies (aspects of completeness and comprehensiveness)
The coordination mechanism should be as follows:
  • Analysis of Status quo and best practices
  • Elaboration of proposals
  • Regular meetings to discuss proposals with NDPR and other stakeholders (technical team), capturing resolutions in minutes of meeting
  • Drafting of the respective part of the guidelines
  • Design of forms and templates, as far as required
  • Training of NDPR staff
  • Training of planning officers in selected ministries agencies
The consultant should reflect which communication approach might help ministries and agencies to own the new approach and how the use of the new manual could be monitored in the future.
Outputs / Deliverables
The expected outputs of this assignment shall comprise the following:
  • Inception Report
As a minimum, the Inception Report will provide a detailed explanation of the approach that will be undertaken including: an understanding of the overall and specific objectives of the assignment and expected results in terms of assessment of existing documents, the proposed methodology and an expected framework for the outputs to be produced, including timeline, a proposed list of key stakeholders and how they will be consulted, as well as a tentative outline of the guidelines.
  • Draft Guidelines
The draft guidelines shall address the general and specific objectives of this assignment. This document shall be reviewed by the client (MINECOFIN) and shared with stakeholders for feedback and inputs.
  • Final Guidelines
Final guidelines should be precise in wording and include but not be limited to:
  1. Concept of investment planning and appraisal according to the drafted National Investment Policy
  2. Preparation of pre-feasibility studies
  3. Preparation of feasibility studies
  4. Requirements for preparing “concept notes” for projects below the minimum threshold
The final draft will be reviewed and approved by the client (MINECOFIN).
  • Material prepared for trainings
Time Frame and estimated Level of Effort (man-days)
The consultancy should be conducted between beginning of December 2016 and end of April 2017. A draft version of the guidelines should be presented at the end of February 2017 and the completed version including templates latest before the end of April 2017. It is estimated that the consultant might spend up to 100 working days on the assignment including the training of stakeholders:
Indicative estimationof expert days
Preparation, first screening of secondary sources and submission of inception report
10 - 15 days
Kick off meeting: Presenting inception report
Collection and review of secondary sources
15 - 20 days
Coordinating meeting: Presentation of findings of desktop research and concept for guidelines
Exchange with stakeholders, preparation of first draft of guidelines
20- 30 days
Coordinating meeting: Review of drafted guidelines
Preparation of revised draft of guidelines, organizing feedback
15 -20 days
Coordinating meeting: Feedback on revised guidelines
Trainings of planning officers
8-10 days
Feedback on lessons learned during training, finalization of guidelines
2- 5 days
70 – 100 days

Professional requirements for the Consultancy
The consultant(s) should have a master’s degree in an investment related area (finance, business administration, economics, etc.)
The consultant(s)need to be familiar with the concept of feasibility as well as the scope of investment projects related to improving the delivery of services at national level in Africa (intervention areas, technologies, amounts of financing) and related challenges (deficient planning documents, budgetary constraints, behavioural constraints, lack of private service providers…). Investment experience in different sectors (e.g. road, water, energy, agriculture…) is an asset.
Experience in developing countries is required; experience in Eastern Africa would be an advantage. Experience with labour-intensive works would be helpful.
The consultant(s) must be fluent in English and be able to deliver reports in English.
The Tender Procedure / Budget
The consultancy will be awarded following an open tender process:
  • Comments on the TORs (in particular specifications of the procedures), including comments on the drafted timeline
  • Concept for the preparation of the assignment and applied methodologies
  • Comprehensive and updated CV(s) of the suggested consultant(s)
  • Statement(s) of availability
  • Financial proposal, net value in Rwandan Francs
Please deposit your application (technical and financial offers) in sealed envelopes latest 16th November 2016 at 4:00PM, at the front desk of our GIZ office in Kiyovu, 41, KN St 17.

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