Terms
of Reference for consultancy
of Reference for consultancy
TheDevelopment
of Guidelines for Feasibility Studies
of Guidelines for Feasibility Studies
For
the Project “Macroeconomic Advice for poverty reduction in Rwanda”
the Project “Macroeconomic Advice for poverty reduction in Rwanda”
(07thDecember,
2016 to 30thApril, 2017)
2016 to 30thApril, 2017)
Project
Objectives
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.
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.
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
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.
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.
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.
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.
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
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.
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.
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
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
of Work
As
an introductory phase the consultant should perform the following tasks as
desktop research:
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
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:
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.
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
/ Deliverables
The
expected outputs of this assignment shall comprise the following:
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.
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.
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:
guidelines should be precise in wording and include but not be limited to:
- Concept
of investment planning and appraisal according to the drafted National
Investment Policy - Preparation
of pre-feasibility studies - Preparation
of feasibility studies - Requirements
for preparing “concept notes” for projects below the minimum threshold
The
final draft will be reviewed and approved by the client (MINECOFIN).
final draft will be reviewed and approved by the client (MINECOFIN).
- Material
prepared for trainings
Time
Frame and estimated Level of Effort (man-days)
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:
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:
Tasks |
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 |
TOTAL |
70 – 100 days |
Professional
requirements for the Consultancy
requirements for the Consultancy
The
consultant(s) should have a master’s degree in an investment related area
(finance, business administration, economics, etc.)
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.
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.
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.
consultant(s) must be fluent in English and be able to deliver
reports in English.
The
Tender Procedure / Budget
Tender Procedure / Budget
The
consultancy will be awarded following an open tender process:
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.
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.
