TERMS OF REFRENCE FOR Value Chain Study

TERMS OF REFRENCE
FOR
Value Chain Study
Integrated Community Development Initiative (ICDI)
Islamic Relief Pakistan, Khyber Pakhtunkhwa
Subject: Request to acquire services of a consultant firm to carry out Value Chain Study in
project targeted villages of district Nowshera and Charsadda
1. Agency profile:
Founded in the UK in 1984 as an International Relief and Development Charity, Islamic Relief
Pakistan aims to alleviate the suffering of the world’s poorest people without discrimination. As a
Non-Governmental Organization (NGO), the focus of IRP since its inception has been responding to
disasters and emergencies linking them to sustainable economic and social development by
working with local communities - regardless of race, religion or gender.
Islamic Relief is in consultative status (category special) with the Economic and Social Council of
the United Nations, signatory to the Code of Conduct of the International Red Cross and Red
Crescent (since 1995) and to the Code of Conduct of People in Aid. Since 2002 Islamic Relief is a
framework partner of ECHO (the European Community Humanitarian Aid department, FPA nr 251,
NGO nr: 195). It is also a member of BOND (British Overseas NGOs for Development) and DEC
(Disaster Emergencies Committee). Islamic Relief Pakistan is working with marginalized
communities in different parts of Pakistan since 1992 for their long term development and
humanitarian assistance to the people in need during disasters and conflict. Having its country
programme office in Islamabad, IRP is operating with four area offices: Mardan in KP, Thatta in
Sindh, Muzzaffarabad in AJK and Quetta in Balochistan.
2. Background:
Islamic Relief Pakistan is striving hard for the socio-economic uplift of flood affected communities
in districts Nowshera and Charsadda. In this regard IRP has launched a three year development
project titled “Integrated Community Development Initiative (ICDI)” in 16 villages of district
Charsadda and Nowshera from July 2012 to May 2015, to empower the local communities through
participatory approach. The main focus of the project is to reduce vulnerabilities and enhance
capacities and establish linkages with Government Line Agencies (GLA’s).
Islamic Relief Pakistan (IRP) responded in both emergency and early recovery phases in the most
affected districts of KP i.e. Nowshehra and Charsadda. During emergency phase, IRP provided
emergency assistance included cooked food, transition shelters, food and non-food items, safe
drinking water, kitchen kits, winterized kits, mother care kits, household kits, mobile and static
health services. Later on, in early recovery/ rehabilitation phase, IRP implemented integrated
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interventions by focusing on livelihood, shelter, WASH and health sectors in 15 most affected
villages of both districts.
In the course of transition from recovery to development, it was of utmost importance to build the
capacity of the community and frontal staff to collectively chart the way towards development and
prosperity. During the first phase, the process of formation of community organizations (COs) and
village organizations (VOs) have been completed in sixteen villages of union councils Aagra and
Nisatta (Charsadda) and Mohib Banda and Kurvi (Nowshera). These sixteen VOs have been trained
in Community Management Skills (CMST) and Village Development Plans / Action Plans have been
prepared by respective villages with facilitation of IRP staff. During VDPs communities have
identified gaps in livelihoods sector especially Agriculture sector for enhanced income
opportunities.
The proposed study will focus on analysis of the current market models as well as the value chain of
tomato, plum and ‘’Gurr’’ in the project areas of District Charsadda and Nowshera. The assessment
would involve conducting a field survey, interviews with stakeholders, market survey, value chain
and market services. It would also involve review and analysis of policies that affect market access
including relevant government policies, market liberalization, institutions for credit, crop / product
insurance, transport etc.
3. Assignment
In order to meet the challenges in a holistic manner, IRP has planned to undertake a Value Chain
assessment/study to identify sectors of improvement in three agricultural commodities of District
Charsadda and Nowshera. These are tomato, plum and gurr. These commodities were selected
after thorough consultation with Agriculture Extension Department, area covered by the crop as a
raw material or commodity itself. Furthermore, these commodities have the potential of increasing
incomes and employment opportunities as no such effort has been undertaken in the past. The
objective of this consultancy is to undertake Value Chain Study in District Charsadda (Gurr) and
Nowshera (tomato and plum), which will clearly identify and strategize these sectors for future
program interventions. This shall include policy and institutional development, value chain
improvement and capacity building.
4. Specific Tasks of the Consultant(s)
Under this Scope of Work, the Consultant(s) shall use their education, experience, and knowledge of
international best practices to accomplish the following:
i.
Policy and Institutional Development
In agriculture areas (tomato, Plum and Gurr), identify policy and institutional development related
gaps that need to be addressed through specific reforms and interventions. Develop concrete and
viable strategies that are required to overcome these gaps. Develop an action plan for policy reform
for these commodities in District Charsadda (gurr) and Nowshera (tomato and plum). The
consultants need to analyze as to whether the support systems and service provisions are
adequate? The existing Agriculture Extension Services and Agriculture Research Centre have any
impact on the current Agriculture practices and outputs. Similarly, are access to research and the
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provision of inputs such as fertilizers and seeds adequate? How good /efficient are these
arrangements? Moreover, there is a need to look at access to credit services. What are the
constraints and current means available?
ii.
Value Chain Improvement
In tomato, plum and Gurr sectors identify additional/potential commodities, which have the
potential for livelihoods improvements, income and employment generation in District Nowshera
and Charsadda. Analyze the gaps within the value chain, which hamper growth opportunities and
recommend specific activities and interventions that need to be addressed to overcome the
identified gaps. Prepare a concrete and viable action plan for value chain development covering the
following areas:
Identification of sectors/value chains based on criteria such as number of people/firms involved
and potential for employment generation, size of the sector, institutional support, existing market
linkages and potential for greater integration with the mainstream domestic markets, potential for
value addition and exports, input sourcing, etc.
 Availability or constraints of technology related to the identified sectors/value chains.
 Mapping value chains to obtain a clear understanding of the sequence of activities and the
key actors and relationships involved in the value chain.
 Formulate an upgrading strategy for the selected value chain.
 Availability or constraints related to trained human resources in the identified
sectors/value chains.
 Inputs/raw materials required to produce the identified product(s) are available at viable
costs in relation to the ability of the suppliers of these inputs/raw materials to sell/self-‐market in an unprocessed form.
 Identify middlemen (broker, Arhtee, Dalal) in the market and their share in the price paid
by ultimate consumer.
 Identify and quantify (profit share resulting from cooperation) existing cooperative
structures, if any in marketing of these commodities.
 Analysis of Market linkages--‐--‐What and where (how far from the production points) are
the current markets that display/sell these commodities? How efficient are the current
market structures? Specifically in the context of fruit grading and processing, how do
internal and external markets operate?
iii.
Capacity Building Interventions
Identify capacity building issues and gaps which need to be addressed through various
interventions, like access to finance, technical assistance, training programs, etc. which will further
contribute to the development agenda in District Charsadda and Nowshera. Prepare a concrete and
viable action plan proposing a set of capacity building interventions.
5. Methodology for Conducting the Study
i)
Secondary Research
Review the available reports, government documents and other related information/data
developed by development agencies.
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ii)
Primary Research
Interviews with key informants like producers, suppliers, vendors, consumers and middlemen
involved in the marketing of these commodities.
The consultant will have to conduct Key Informant Interviews (KIIs) as per following schedule:
At least five respondents on random basis in 30% of the villages after selection of villages on cluster
sampling basis. At least five each producer, suppliers, middlemen and vendors per market and that
each should be associated with a different business/trade and to be selected on snow ball sampling
basis.
Conduct Focus Group Discussions (FDGs), at least ten in ICDI project targeted villages to identify
the value chains of tomato, plum and gurr, and then conduct at least One FGD for each identified
sector to become aware of all the ins and outs of the sector, capacity building, and policy
constraints. The major stakeholders and actors/players related to each sector should participate in
the FGD. Moreover, one to one meetings would be conducted with various stakeholders and the
people who have in-depth knowledge and experience of the subject.
iii)
Report Writing
A comprehensive report focusing on the specific tasks outlined earlier in the ToRs and in the
following section on deliverables.
6. Deliverables
The substance of findings on, and recommendations for the above mentioned tasks shall be
delivered by External resource Person(s)/ External Resource Organization as well as in a Matrix
form for each sector identified. The following are the deliverables:
a. Prepare Inception Report / proposal for conducting this study and share with IRP.
b. Prepare Draft Report.
The report must have the following:
 List of Gaps and Findings for each sector
 A Set of Recommendations & Strategy for each sector
 An Action Plan for each sector
c. Prepare Final Report: A comprehensive and concise report may be between 20-30 pages and
should have consolidated elements of the previous two reports. The consultant shall accommodate
and improve final report in light of comments from IRP staff. All other related information should
be annexed. After analyzing all the gathered data and information the detailed report would be
developed, encompassing gaps, constraints, strategy and action plan.
7. Period of Performance
This assignment is be to completed within 50 days of signing of Contract which is envisaged to take
place between Oct 2014- Dec 25th 2014
8. Budget
10. Qualifications of the Study Team Qualifications of the Study Team are specified below for
each type of personnel:
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a. Policy and Institutional Development Expert: The Policy and Institutional Development
Expert must have an advanced degree in policy studies, business or economics or related field.
She/he must have at least 5 years of work experience. Must be very experienced in policy research,
institutional development, reforms and should have worked in KPK related projects/programs.
Experience of working with government institutions and policy matters is preferable. Must also
have good writing skills and analytical thinking etc
b. Value Chain Expert / Team Leader: The Value Chain Expert must have at least a Masters
degree in Economics, Business, Development, or related field. The work experience must be a
minimum of seven years, having good writing skills. The expert must be up to date with issue of
value chain development and should have worked in project with a focus on value chain
development. Moreover, value chain expert should lead the team in designing, implementation,
monitoring & evaluation and reporting.
9. Invoicing and Payment Invoicing and payment shall be in accordance with clauses of the
Contract signed.
10. Submission of Proposal
The Proposal both Technical & Financial should be submitted in Original sealed envelope Marked
“Technical Proposal for Value Chain Analysis”, duly signed by authorized person on the
following address, latest by 17:00 on or before Friday October 10, 2014.
To: Senior Officer Supply Chain & Operations, Islamic Relief Pakistan, Mardan Office
Address: House # 273, Street No 5, Sector C, Sheikh Maltoon Town, Mardan Phone: 0937 880 197
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