“HIRING A CONSULTANT TO DEVELOP A POSITION PAPER
ON CHALLENGES FACED BY TRANSPORT SECTOR IN RWANDA”
ON CHALLENGES FACED BY TRANSPORT SECTOR IN RWANDA”
I. Context and
Background:
Background:
In recent years Rwanda, like many other countries, has
implemented considerable economic reforms. In transport-related matters, these
reforms have undoubtedly increased the role of private sector in provision of
transport services, and related facilities. Following the recognition, by
private operators, of the importance of this sector owing to a constant and
gradual improvement of the road network; public transportation (specifically by
road) has increased significantly, and continues to expand and gain prominence,
especially in the private sector.
implemented considerable economic reforms. In transport-related matters, these
reforms have undoubtedly increased the role of private sector in provision of
transport services, and related facilities. Following the recognition, by
private operators, of the importance of this sector owing to a constant and
gradual improvement of the road network; public transportation (specifically by
road) has increased significantly, and continues to expand and gain prominence,
especially in the private sector.
Transport operators perceive the sector not only as
the source of their business, but also as a strategic sector for the country.
They are also of the perspective that transport not only contributes
considerably to poverty reduction and economic growth, it also serves as a
strong s
the source of their business, but also as a strategic sector for the country.
They are also of the perspective that transport not only contributes
considerably to poverty reduction and economic growth, it also serves as a
strong s
upport mechanism to other sectors of the economy. 012 that note, there
is a strong and justified belief that both the problems and challenges
encountered could create major constraint hinder doing business for the actors
in that sector, and when taken into account could impede Rwanda’s short,
medium, and long term development goals.
It is therefore of great importance to recognize the
fact that economic growth tends to make the constraint brought about by the
transport sector more complex, and the complexity will inevitably increases if
the potential for these unexpected and unwanted disruptions — with the field of
transportation —is not effectively and efficiently managed.
fact that economic growth tends to make the constraint brought about by the
transport sector more complex, and the complexity will inevitably increases if
the potential for these unexpected and unwanted disruptions — with the field of
transportation —is not effectively and efficiently managed.
II. Rationale of the Study:
Like health care or education, transport is also
considered to be a ‘public good’. This highlights the fact that if it is
rationed purely by “price” it will be possible for ONLY the rich
people to utilize it to the best and greatest extent, which will create a wider
gap within society and unfair disadvantages for specific sections of the
population.
considered to be a ‘public good’. This highlights the fact that if it is
rationed purely by “price” it will be possible for ONLY the rich
people to utilize it to the best and greatest extent, which will create a wider
gap within society and unfair disadvantages for specific sections of the
population.
On that note, it has to be recognized that the mechanisms
through which transportation operates require public funds so as to serve the
public by ensuring equal access. Research reveals that even cities claiming to
have well-performing transport systems where operators claim to be
self-supporting is not the case owing to the fact that reaching that level of
self-sustenance was brought about by subsidiary strategies from the distant
past.
through which transportation operates require public funds so as to serve the
public by ensuring equal access. Research reveals that even cities claiming to
have well-performing transport systems where operators claim to be
self-supporting is not the case owing to the fact that reaching that level of
self-sustenance was brought about by subsidiary strategies from the distant
past.
Currently, a lot of challenges are facing the sector,
and a few of which are financial, technical as well as policy handicaps. Some
of those include; Excessive and Multiple License Fees (Patent° fees for the
Public Transport Sector), High rate of Regulator’s fee paid by transport
companies, Fares (Ticket Fees) do not reflect the operating cost, nature and
economic trend of the Public Transport business, Bureaucracy as a bottle-neck
in issuance of public transport vehicle stickers (vignette), Lack of
consultation of the private sector etc..
and a few of which are financial, technical as well as policy handicaps. Some
of those include; Excessive and Multiple License Fees (Patent° fees for the
Public Transport Sector), High rate of Regulator’s fee paid by transport
companies, Fares (Ticket Fees) do not reflect the operating cost, nature and
economic trend of the Public Transport business, Bureaucracy as a bottle-neck
in issuance of public transport vehicle stickers (vignette), Lack of
consultation of the private sector etc..
In light of the above, the challenges faced by
transportation companies in Rwanda is not only of great concern in doing
business, but it is also facing plummeting bus ridership, decrease in cross
border bus business penetration as well as long distance trucks’ importation.
This has been noticed in almost all public and private transport companies due
to the various issues some of which are highlighted above, that have led
companies to struggle to break-even, thus sometimes creating unfair
competition, hence leaving them with barely enough to cover operating costs,
and practically nothing left-over for capital upgrades and sustainability.
transportation companies in Rwanda is not only of great concern in doing
business, but it is also facing plummeting bus ridership, decrease in cross
border bus business penetration as well as long distance trucks’ importation.
This has been noticed in almost all public and private transport companies due
to the various issues some of which are highlighted above, that have led
companies to struggle to break-even, thus sometimes creating unfair
competition, hence leaving them with barely enough to cover operating costs,
and practically nothing left-over for capital upgrades and sustainability.
In light of the above, it is of great interest to the
Private companies in Rwanda is not only of great concern in doing business, but
it is also facing plummeting bus ridership, decrease in cross border bus business
penetration as well as long distance trucks’ importation. This has been noticed
in almost all public and private transport companies due to the various issues
some of which are highlighted above, that have led companies to struggle to
break-even, thus sometimes creating unfair competition, hence leaving them with
barely enough to cover operating costs, and practically nothing left-over for
capital upgrades and sustainability.
Private companies in Rwanda is not only of great concern in doing business, but
it is also facing plummeting bus ridership, decrease in cross border bus business
penetration as well as long distance trucks’ importation. This has been noticed
in almost all public and private transport companies due to the various issues
some of which are highlighted above, that have led companies to struggle to
break-even, thus sometimes creating unfair competition, hence leaving them with
barely enough to cover operating costs, and practically nothing left-over for
capital upgrades and sustainability.
In light of the above, it is of great interest to the
Private Sector to find ways and means of unraveling the challenges being faced
in and around public and private transportation, both inward and cross border
especially owing to the fact that transportation offers facilitation for many
other sectors not only in the private sector, but also for the national economy
as a whole. In this regard, PSF invites qualified and competent individual
consultants to express their interest in to develop a position a paper on the
mentioned assignment.
Private Sector to find ways and means of unraveling the challenges being faced
in and around public and private transportation, both inward and cross border
especially owing to the fact that transportation offers facilitation for many
other sectors not only in the private sector, but also for the national economy
as a whole. In this regard, PSF invites qualified and competent individual
consultants to express their interest in to develop a position a paper on the
mentioned assignment.
The consultant is expected to propose tangible
recommendations to the above mentioned and many other issues that will be
identified during the study. The proposed recommendations should address the
issue of ease of doing business in the sector as well fair to the consumers of
the service.
recommendations to the above mentioned and many other issues that will be
identified during the study. The proposed recommendations should address the
issue of ease of doing business in the sector as well fair to the consumers of
the service.
III. Objectives of the Position Paper
3.1. General Objective
• To identify at least a 5 year trend of business in
transport business in Rwanda, problems/issues that are encountered by the
sector (public & cross border) as well as cross border transport operators
in Rwanda and suggest recommendations for a return in investment into the
transport sector
transport business in Rwanda, problems/issues that are encountered by the
sector (public & cross border) as well as cross border transport operators
in Rwanda and suggest recommendations for a return in investment into the
transport sector
• To provide way forward and policy recommendations
that will be a basis for advocacy on behalf of the transport sector
that will be a basis for advocacy on behalf of the transport sector
3.2. Specific Objectives
1. To diagnose problems related to costs of operation
that specifically have to do with high import duties and domestic taxation
(fiscal laws), fees paid to the utility regulator, and other operating costs.
that specifically have to do with high import duties and domestic taxation
(fiscal laws), fees paid to the utility regulator, and other operating costs.
2. To identify problems related to the structural
organization of public transport and related issues surrounding this
organization or lack of it.
organization of public transport and related issues surrounding this
organization or lack of it.
3. To identify issues regarding trade related costs
(Tariff and Non Tariff Barriers) and others faced by buses that are crossing
the border to the EAC Partner States
(Tariff and Non Tariff Barriers) and others faced by buses that are crossing
the border to the EAC Partner States
4. To classify and categorize implications brought
about by the lack of organized markets not just within the country (Rwanda),
but also within the region (East Africa) as a whole.
about by the lack of organized markets not just within the country (Rwanda),
but also within the region (East Africa) as a whole.
3.3. Deliverables:
- Come up with a Private Sector Position Paper that
will be used for advocacy on behalf of the Public and Cross Border
Transporters, - To identify at least a 5 year trend of business
in transport business in Rwanda, problems/issues that are encountered by
the sector (public & cross border) in Rwanda and suggest
recommendations for a return in investment into the transport sector
taking into account the operation costs. - A clear analysis of the organizational structure
of issues related to public transport - Diagnosis of the implications of the lack of
organized market arrangements nationally and regionally - Aline statistical data that clearly reflects the
problems associated with “operational costs”, lack of an
“organizational structures”, and implications that come with the
lack of “organized market arrangements”, - Propose clear policy recommendations in short,
medium and long term for an effective advocacy for the sector.
IV. Methodological Approach:
4.1. Target Population
The study population or audience will comprise all
registered public transporters, i.e., both inland and cross border, and all
financial institutions (including banks, microfinance institutions, insurance
companies..etc), clearing and forwarding agencies, both Government and public
institutions that are considered to be stakeholders within the public and cross
border transport sector (RURA, RRA, RBS, RDB Immigration, etc).
registered public transporters, i.e., both inland and cross border, and all
financial institutions (including banks, microfinance institutions, insurance
companies..etc), clearing and forwarding agencies, both Government and public
institutions that are considered to be stakeholders within the public and cross
border transport sector (RURA, RRA, RBS, RDB Immigration, etc).
4.2. Concentration, Data Inclusion and Summation
It will require statistical data that makes specific
reference to the lack of an adequate market model in Rwanda’s transport sector,
which bring about (i) difficulties in monitoring costs that underpins the
sustainability of business owing to the fact that operators carry out their
business under art informa system, thus creating difficulty to effectively
monitor all costs incurred in the business.
reference to the lack of an adequate market model in Rwanda’s transport sector,
which bring about (i) difficulties in monitoring costs that underpins the
sustainability of business owing to the fact that operators carry out their
business under art informa system, thus creating difficulty to effectively
monitor all costs incurred in the business.
It will also be necessary to include data surrounding
(ii) lack of vehicle financing, which lacks appropriate market arrangement,
which brings about increased uncertainty, and makes it difficult for operators
to practically demonstrate their cash flow ability through which they are able
to monitor and sustain their businesses.
(ii) lack of vehicle financing, which lacks appropriate market arrangement,
which brings about increased uncertainty, and makes it difficult for operators
to practically demonstrate their cash flow ability through which they are able
to monitor and sustain their businesses.
It will also be important to include (iii) other
effects that arise from appropriate public transport market arrangements, that
bring about effects such as excessive operating costs that result into
failure(s) to renew fleets; lack of demand forecast and corresponding capacity;
failure of the service to respond to need; and an increasing challenges for
operators in the management of their transportation assets through which they
can invest further in their network(s).
effects that arise from appropriate public transport market arrangements, that
bring about effects such as excessive operating costs that result into
failure(s) to renew fleets; lack of demand forecast and corresponding capacity;
failure of the service to respond to need; and an increasing challenges for
operators in the management of their transportation assets through which they
can invest further in their network(s).
4.3. Duration of the Contract
Upon signing of the contract, the assignment is
estimated to take a maximum of four weeks (i.e., one month).
estimated to take a maximum of four weeks (i.e., one month).
4.4. Profile of the Consultant
- The assignment will be undertaken by an
individual consultant; - Should be a holder of at least a Master’s Degree
in Business Management, Economics qualification, Development Studies or
other related fields; - At least three (3) years demonstrated experience
in related research, especially in East Africa, but specifically Rwanda; - Proficiency in English, and a working knowledge
of French would be a great advantage; - Good inter-personal, communication, and reporting
skills.
V. Reporting
The Consultant will work under the overall direction
of the Chief Advocacy Officer of the PSF.
of the Chief Advocacy Officer of the PSF.
Within 1 week of the beginning of assistance, the
consultant will produce and Inception Report with a preliminary analysis of the
project requirements and the detail Work Plan for remaining project period.
consultant will produce and Inception Report with a preliminary analysis of the
project requirements and the detail Work Plan for remaining project period.
After 2 weeks from the beginning of-exercise, the
consultant will produce an Interim Report that details the progress on the
implementation of the Work Plan, challenges and dilemmas The approval of the
Interim Report will be important milestone for the further advance of the
assistance
consultant will produce an Interim Report that details the progress on the
implementation of the Work Plan, challenges and dilemmas The approval of the
Interim Report will be important milestone for the further advance of the
assistance
The Draft Final Report will be expected after 3 weeks
from the beginning of the assistance. The validation workshop will be organized
at the end of the 3’° week of the assignment. All Reports will be submitted
Chief Advocacy Officer of the PSF.
from the beginning of the assistance. The validation workshop will be organized
at the end of the 3’° week of the assignment. All Reports will be submitted
Chief Advocacy Officer of the PSF.
VI. Submission of Proposals
Interested candidates requested to submit complete
proposals (technical and financial in 5 copies) to the Head Procurement at
Private Sector Federation not later than 4th August, 2014 at 10
am.
proposals (technical and financial in 5 copies) to the Head Procurement at
Private Sector Federation not later than 4th August, 2014 at 10
am.
Attention to: The Chief
Executive Officer of the Private
Executive Officer of the Private
Sector Federation: P.O. Box 319 Kigali, Gikondo. For
more clarifications, please ‘contact Tel: 0788307165 or
more clarifications, please ‘contact Tel: 0788307165 or
0788306088.
Procurement Unit
