TERMS OF REFERENCE SHORT-TERM CONSULTANCY TO PREPARE KENYA FOREST SERVICE INFRASTRUCTURE DEVELOPMENT PLAN FOR CONSERVANCIES AND PILOT ZONES

Transcription

1 TERMS OF REFERENCE SHORT-TERM CONSULTANCY TO PREPARE KENYA FOREST SERVICE INFRASTRUCTURE DEVELOPMENT PLAN FOR CONSERVANCIES AND PILOT ZONES Ref No. KFS/MMMB/01/ INTRODUCTION The Miti Mingi Maisha Bora Support to Forest Sector Reform in Kenya (MMMB) programme has four components: i) Support to forest sector policy development and coordination processes, ii) Support to implementation of KFS institutional change processes, iii) Support to management and utilization of gazetted forest reserves, and iv) Development of Forest-based enterprises. The overall objective of the MMMB Programme is: A reduction in poverty through ensuring that the forest sector contributes effectively and sustainably to improving the lives of the poor, restoring the environment, and aiding the economic recovery and growth of Kenya, within the context of Vision The Programme purpose is: Improved forest and woodland management and utilization practices, and a transformation of policy and institutional arrangements to serve the needs of communities, the private sector, civil society and the government. Three institutions the Ministry of Forestry and Wildlife (MFW), Kenya Forest Service (KFS) and Kenya Forest Research Institute (KEFRI) are responsible for execution of the programme interventions. The programme will aim at outsourcing some functions to private sector, NGO partners and individual consultants. Due to the expanded mandate of KFS to manage all types of forests and community participation, to undertake more efficient and effective field operations and to improve communication and information sharing between the headquarters and the field offices, various investments in infrastructure are urgent. As outlined in the PD, MMMB will support in investments in building up KFS s infrastructure in the selected Forest Conservancy Areas (FCA) and Forest Zones (FZ). These infrastructure investments will include: Building of Headquarters offices in all FCAs (10) and the FZs in the pilot areas (15). IT equipment and internet connectivity for Headquarters offices in all FCAs (10) and the FZs in the pilot areas (15). Additional equipment for connectivity to ensure effective FMS operations for Headquarters offices in all FCAs (10) and FZs (15) with the greatest potential for revenue collection. This will scale up the operation of the FMS developed during the inception phase by extending it to reach from the Headquarters to the FCAs and to the FZs. 1

2 The office and building investments will be based on an infrastructure development plan that will be prepared for all the 10 FCAs and selected 15 FZs. This plan will include overview and analyses of the present infrastructure capacity and a thorough needs assessment of the selected areas. The offices to be built will be spacious enough to accommodate key regional partners (e.g. CFAs, TMAs) and unfriendly for persons with disabilities as provided for in the Persons with Disabilities Act (2003). A national consultancy (3 p/m) is proposed to develop the plan. These Terms of References will highlight the objectives, specific tasks, outputs, reporting and time table of the consultancy as well as qualifications of the consultant or the consultant company to be contracted. This consultancy focuses on development of MMMB supported infrastructure investments programmed in the PD. In order for them to get started during the next financial year, it is of most importance that consultancy materializes during the remaining months of the current financial year. The overall infrastructure master plan for KFS will require additional consultancy inputs. 2. OBJECTIVE OF THE CONSULTANCY The overall objective of this consultancy is to provide KFS headquarter and MMMB Programme with adequate and up-to-date information about the existing infrastructure at the KFS s ten FCAs headquarters and within the selected 15 Pilot Forest Zones in order to facilitate KFS s Directors and MMMB Programmes PMT to make a decision on proposed KFS infrastructure development scheme. Another objective is to facilitate KFS s procurement office to carry out legal and appropriate procurement procedures to begin and carry out the proposed construction activities. In addition to these the objective is to provide KFS and MMMB Programme with a comprehensive and detailed package of civil works and office construction and building documentations to facilitate efficient decision making in the KFS infrastructure development projects. The Infrastructure Development Master Plan should at least include the following aspects: 1. Baseline assessments and overviews of the existing offices and their other supporting premises within the KFS s ten (10) Forest Conservancy Areas and selected fifteen (15) Forest Zones. 2. A needs assessment of the FCAs and FZs in terms of their requirements for offices, common rooms, storages, administration facilities and any other necessary requirements. 3. Proposal for infrastructure development of the selected 10 FCAs and 15 FZs within the selected MMMB Programme pilot areas. The consultancy will also suggest the potential construction and building companies to be conducted for the tendering processes and construction works. Cognizance to green issues, clean technology, energy savings and people with disability should always and in all the circumstances be taken into considerations. These issues must also be seen in the proposed documentations and in the final Infrastructure Development Master Plan. 2

3 3. SPECIFIC TASKS AND MODE OF WORK 1. To design, prepare and report a comprehensive Infrastructure Development Master Plan for development of KFS s field headquarter office premises within the 10 FCAs and selected 15 FZs. 2. To carry out a baseline assessment and to prepare an overview of the KFS s existing office premises and facilities within the proposed infrastructure development sites. 3. To prepare a proposal for two different type of forest office environment models from which one will represent the office settings within the FCA headquarters and another one that will represent the office settings within the Forest Zone offices. 4. To prepare a renovation proposal for those development sites and areas where the infrastructure already exists or has reasonable offices and premises that can be renovated, upgraded and little reconstructed rather that built from the beginning. 5. To plan and design all the necessary construction drawings, layout pictures and architectural designs for construction of office blocks, common rooms, warehouses and any other constructions that have been proposed and included into the Master Plan. These proposals must meet the local standards and the economical building codes set by the Kenyan laws of building and construction. 6. To plan and design of infrastructural and building works as follows: a. Preparation of cost estimates and obtaining their technical sanctions from the respective quarters. b. Preparation of architectural and engineering design/drawings of buildings and fixing details and drawings for different systems including water supply, sewage system, electrical system and networking of the entire complex. c. Prepare a landscape designs and proposals with necessary drawings and specifications. d. Prepare drawings and get them approved by the relevant authorities. e. Prepare documents and lists for the needed technical specifications. 7. Plan and prepare the necessary Bidding and Tendering Documents, Selection Criteria and Award of Contracts. 8. Prepare detailed tender documents including construction drawings, bill of quantities and cost estimates based on market prices. 9. To identify and list potential local construction companies and building contractors to be approached during the tendering processes. 10. To develop a simple strategy, management and supervision plan as well as time schedule for the implementation of the Infrastructure Development Master Plan. 11. To develop criteria and format for monitoring and determining effectiveness, efficiency and quality of the construction and service providers. 12. Prepare a final report with all the required construction, electrical, civil works and landscape plan documentation. 13. Provide assistance to the KFS and MMMB Programme in pre-qualification/selection of contractors and arrange relevant services leading to the award of contract. (This applies only if the KFS and MMMB Programme specifically request these services). 4. EXPECTED OUTPUTS 3

4 The consultant or the consultant company will develop the following documentations and outputs for the KFS Infrastructure Development Master Plan (IDMP). The developed and presented KFS IDMP should include at least the following sections and documentations: 1. Progress and implementation report of the first month consultancy period: a. Baseline assessment report of the existing stage of the offices at the 10 FCA headquarters premises and 15 selected FZ offices. b. Proposals for forest office environment and building model for the FCA headquarters and FZs premises. This should include at least list and types of buildings, offices, common houses, store houses, workshops etc. c. Renovation and reconstruction proposal report, if applicable at any FCAs or FZs. d. Proposal, schedule and milestones for the consequent 2 months consultancy implementation period. 2. A Comprehensive KFS s Infrastructure Development Master Plan for 10 FCAs headquarters offices and 15 selected FZs offices. The Master Plan must include at least the following documents: a. Construction drawings and detailed layout, sub-layout and profile pictures of the proposed buildings. b. Architectural and engineering designs / drawings of buildings. c. Fixing details, drawings and technical specifications for civil works, water supply, sewage system, electrical system, IT system and networking of the entire complex. d. Landscape design, drawings and specifications. e. Approval of the drawings from the relevant Kenya authorities. 3. Bidding and Tendering Documents, Selection Criteria and Award of Contracts. 4. List and addresses of potential local construction and building contractors and companies. 5. Strategy, management and supervision plan, and time schedule for the implementation of the IDMP. 6. Criteria and format for monitoring of the building and construction contractors and service providers. 7. Final progress and implementation report of the three months consultancy services. 5. REPORTING The first period progress and completion report must be submitted to KFS and MMMB Programme immediately after completing the first one (1) month consultancy period. Infrastructure Development Master Plan shall be produced in English and submitted as a printed report as well as in electronic format to the MMMB Programme and KFS Headquarters. 4

5 6. TIME TABLE The local consultancy input in this consultancy is three (3) months. This period is divided into two implementation components with a special condition for the implementation of the second component. The first part of the consultancy consists of a one (1) month period during which the baseline studies and preliminary plans must be prepared and submitted to the KFS and MMMB programme. This report must be submitted and introduction meeting arranged with the KFS and MMMB PMT. After approval of the first component of the consultancy, its report and proposals the consequent 2 months consultancy period can be started and accomplished. The first part of the consultancy is expected to be implemented in October 2010 and the second part soon after the approval of the first assignment. 7. QUALIFICATION AND EXPERIENCE To achieve the above objectives, the consultant must have the following qualifications, competences and experiences: Minimum Bachelor degree and/or strong working experience in relevant field related to the assignment, preferably in construction, civil engineering, electrical engineering, architecture or any other relevant. Proven working experience in infrastructural development, construction and building, engineering or other filed related experience. Experience in planning, designing and carrying out complex infrastructural development projects. Proven working experience in relevant field of at least 5 years Understanding of KFS organization and forestry issues in Kenya is an asset. Proven ability to synthesize and write reports in English. Previous experience in providing technical assistance and cooperation activities in developing aid Programme will be an advantage. 5

6 TERMS OF REFERENCE SHORT-TERM CONSULTANCY TO PREPARE BUSINESS PLAN FOR KENYA FOREST SERIVICE Ref No. KFS/MMMB/02/ Background The overall objective of the of Miti Mingi Maisha Bora Support to Forest Sector Reform in Kenya (hereafter MMMB Programme) is: A reduction in poverty through ensuring that the forest sector contributes effectively and sustainably to improving the lives of the poor, restoring the environment, and aiding the economic recovery and growth of Kenya, within the context of Vision The MMMB Programme purpose is: Improved forest and woodland management and utilization practices, and a transformation of policy and institutional arrangements to serve the needs of communities, the private sector, civil society and the government. The MMMB Programme is has four components, namely: i) Support to forest sector policy development and co-ordination processes, ii) Support to implementation of KFS institutional change processes, iii) Support to management and utilization of gazetted forest reserves, and iv) Forest-based enterprises developed. Three institutions - Ministry of Forestry and Wildlife (MFW), the Kenya Forest Service (KFS) and Kenya Forest Research Institute (KEFRI) are responsible for the programme s implementation. The institutional and legal framework for the forest sector in Kenya has undergone a series of government-led reforms over the past five years, following a long period of stagnation. First and foremost among these reforms was the passing of the Forests Act in This provided the legal basis for the establishment of the Kenya Forest Service in February 2007, a semiautonomous institution governed by an independent board; the Act also provides for wider participation of stakeholders notably community groups and the private sector - in the management of the country s forestry resources. Second, up until April 2008, the Ministry of Environment and Natural Resources (MENR) housed the Kenya Forest Service (KFS) and Kenya Forestry Research Institute (KEFRI); the new MFW then took responsibility for them as well as the Kenya Wildlife Service (KWS). The MFW s overall mandate is to protect, conserve and manage the forestry and wildlife resources in Kenya through sustainable management for prosperity. The MFW is charged with formulating forestry and wildlife policies, overseeing its administration and coordinating the development of the forestry and wildlife sectors. The KFS has prepared a Strategic Plan for the period 2009/ /14 and since the end of 2009 has been building up its managerial and technical staff capacity to implement its core mandate, which is to conserve, develop and sustainably manage forestry resources. The KFS is seeking to establish a framework in order to provide its services to a range of stakeholders and customers whilst achieving a higher level of financial self-sufficiency. The KFS is also looking more effective means to supply forest products, and increasingly to market environmental services. 6

7 The consultancy will provide the KFS will a business plan, setting out a set of business goals, and the means to meet those goals (organizational and financial) over the proposed 5-year period. The preparation of the business plan will be guided by two principles, namely it will: facilitate the KFS to meet its strategic objectives for the development and management of forestry resources ensure that the KFS adopts practices and procedures in line with good practice for public administration, so improving the efficiency and effectiveness of public service delivery, and enhancing governance and anti-corruption efforts. 2. Objective of the consultancy The objective of the consultancy is to prepare a 5-year Business Plan for the KFS that is in line with the KFS Strategic Plan. 3. Specific tasks and mode of work Taking into account the mandate, roles and functions of the KFS, and its relationship with the KFS Board, Forest Conservancy Committees (and Community Forest Associations), the Kenya Forestry College, and the Forest Management & Conservation Fund: Undertake an assessment of the KFS current organizational structure and staffing, and its operations Evaluate the current financial strengths and weaknesses of the KFS, and undertake a valuation of the KFS Assess markets for forest products and services both nationally and in the East African region, and primary stakeholders (KFS customers), and the current KFS marketing strategy Identify and assess potential alternative market options, and key market assumptions for the future provision of products and services Identify and assess alternative development and operations strategies Prepare a risk analysis and develop strategies to manage these risks. Prepare financial forecasts based upon detailed statements (cash flow and income statements, and balance sheets) for the 5-year period, for best case, expected case and worse case scenarios, including a schedule of capital investments Discuss the options for the business plan with KFS stakeholders - the KWS and KEFRI, the principle line ministries and agencies with which it works (including but not limited to the MFW, MOF, MPND, MEMR), the private sector, civil society and development partners. The consultant(s) must inform themselves of the Baseline Assessment of Cross-Cutting Development Issues and Governance Assessment of the Forest Sector studies in the preparation and realization of their work. 4. Location of assignment and inputs provided by KFS 7

8 Assignment base: Nairobi, Kenya Forest Service. Field visits will also be necessary to the KFS forest conservancies. The consultants will work in close cooperation with KFS relevant senior managers and as required with the MMMB Programme Manager. 5. Expected outputs 1. The work plan and methodology to be used in the preparation of the business plan 10 working days from the commencement of the consultancy 2. The draft five year business plan report 3. A presentation to a joint meeting of the KFS senior managers and KFS Board 4. Final report 6. Reporting The reports shall be produced in English and submitted as a printed report as well as in electronic format to the competent authorities in the KFS and the MMMB Programme. A final report, taking into account the comments from relevant stakeholders, should be finalized not later than one month after the presentation of the draft report. 7. Time table The international consultancy input is 3 months, supplemented by 3 months of national consultancy. The international consultant will lead, advise and coordinate the national consultancy inputs. The consultancy is expected to be commencing in October Qualifications The consultants should have the following qualifications, skills and experience: The international consultant should have a Master degree in Business Management or relevant field related to the assignment He/she must have demonstrable experience in carrying out business studies for public sector institutions Previous experience in Kenya or the region is an asset Proven ability to synthesize and write clear reports in English The national consultants should have a Master degree in a field related to the assignment. Additional qualifications in relevant areas such as public administration and/or accountancy will be an added advantage They must have demonstrable experience in carrying out business studies in collaboration with public sector institutions in Kenya Previous experience in the forestry and environmental sectors is an asset Proven ability to synthesize and write clear reports in English 8

9 TERMS OF REFERENCE SHORT-TERM CONSULTANCY TO DEVELOP SUPPORT SERVICES MECHANISM (OUTSOURCING NEEDS AND GUIDELINES) FOR MMMB Ref No. KFS/MMMB/03/ INTRODUCTION The Miti Mingi Maisha Bora Support to Forest Sector Reform in Kenya (MMMB) programme has four components: i) Support to forest sector policy development and coordination processes, ii) Support to implementation of KFS institutional change processes, iii) Support to management and utilization of gazetted forest reserves, and iv) Development of Forest-based enterprises. The overall objective of the MMMB Programme is: A reduction in poverty through ensuring that the forest sector contributes effectively and sustainably to improving the lives of the poor, restoring the environment, and aiding the economic recovery and growth of Kenya, within the context of Vision The Programme purpose is: Improved forest and woodland management and utilization practices, and a transformation of policy and institutional arrangements to serve the needs of communities, the private sector, civil society and the government. Three institutions the Ministry of Forestry and Wildlife (MFW), Kenya Forest Service (KFS) and Kenya Forest Research Institute (KEFRI) are responsible for execution of the programme interventions. The Programme will also aim at outsourcing some functions to private sector, NGO partners and individual consultants. The Forest Conservancy Areas (FCA), the Forest Zones (FZ) and the forest stations targeted for field operations will be expected to implement certain activities related to the Programme. A central issue is the involvement of the private sector and communities. Some Programme functions will be outsourced to the private sector or NGO partners when outsourcing provides the most cost-efficient alternative to provide an adequate level of professional service delivery. Where additional specialist services are required (for example in the fields of enterprise development, marketing and trade, strengthening community groups for eco-tourism and broader forest training needs), these will also be considered for outsourcing to institutions working in Kenya. Examples of activities for which outsourcing may be appropriate include: To design and operate Forest Information Systems at KEFRI for volume, growth and biomass models for all plantation species. To develop and implement plantation strategy and management / business plans at KEFRI for tree improvement programme. To improve productivity and quality of selected commodities and products at KEFRI. To design and operate Forest Information Systems at Department of Remote Sensing and Resource Surveys for GIS and remote sensing. 9

10 To strengthen governance structures of Forest Conservancy Committees (FCC) and Community Forestry Associations (CFA). To assist the organizational development of regional and national CFA bodies, including capacity building and raising awareness. To institutionalize and implement participatory forest management at a community level. 2. OBJECTIVE OF THE CONSULTANCY The overall objective of this consultancy is to develop for KFS procedures and guidelines for outsourcing forestry services. The proposed procedures and guidelines will take cognizance of the Public Procurement and Disposal Act (2005) and Forests Act (2005). These procedures will also be used by the MMMB Programme. The consultant(s) must inform themselves of the Baseline Assessment of Cross-Cutting Development Issues and Governance Assessment of the Forest Sector studies in the preparation and realization of their work. 3. EXPECTED OUTPUTS The consultant will develop the following documentations and outputs for the KFS Guidelines for Outsourcing Needs. 1. Draft procedures and guidelines for outsourcing KFS services to the private sector or NGO partners 2. Notices, Bidding and Tendering Documents, Selection Criteria, Sample Contracts and Award of Contracts. 3. Strategy, management and supervision plan, and time schedule for the implementation of the KFS Guidelines for Outsourcing Needs. 4. Criteria and format for monitoring of SLA (Service Level Agreements). 4. REPORTING AND TIME TABLE The total consultancy input is 21 working days (1 month). The consultant will submit a proposed methodology and work plan within 5 working days to the KFS and MMMB Programme. The first draft of the guidelines should be submitted to the KFS and MMMB programme within 15 working days. The final report taking on board comments will be submitted at the end of the consultancy. The consultancy is expected to be implemented in October All reports shall be produced in English and submitted as a printed report as well as in electronic format to the MMMB Programme and KFS Headquarters. 5. QUALIFICATIONS AND EXPERIENCE To achieve the above objectives, the consultant must have the following qualifications, competences and experiences: 10

11 Masters degree or with strong working experience with Bachelor degree in relevant field related to the assignment, preferably in business management, Supply Chain, Procurement, Commerce, Social Science or any other relevant discipline. Proven working experience in outsourcing or its equivalent. Experience in preparation of sound working guidelines/procedures. Proven working experience in relevant field of at least 3 years. Understanding of KFS organization and forestry issues in Kenya is an asset. Proven ability to synthesize and write reports in English. Previous experience in providing technical assistance and cooperation activities in developing aid programmes will be an advantage. 11

12 TERMS OF REFERENCE SHORT-TERM CONSULTANCY FOR PREPARATION OF AN ECOTOURISM DEVELOPMENT MASTER PLAN FOR STATE FORESTS IN KENYA Ref No. KFS/MMMB/04/ Introduction The Government of Finland and the Government of Kenya are executing the Implementation Phase of Miti Mingi Maisha Bora (MMMB) Support to Forest Sector Reform programme. The programme s overall objective is a reduction in poverty through ensuring that the forest sector contributes effectively and sustainably to improving the lives of the poor, restoring the environment and aiding the economic recovery and growth of Kenya within the context of Vision Component 3 of MMMB entails supporting the management and sustainable utilization of gazette forest reserves. In this component, the two governments are supporting Kenya Forest Service (KFS) to facilitate development of ecotourism and recreational facilities in gazetted forests. To this end, KFS plans to develop a Master Plan to guide the process of development, management and operation of responsible tourism in state forests. The Master Plan will assist the organization in ensuring that the ecotourism development process is objective, participatory, coordinated and sustainable. A short-term consultancy is proposed to develop this plan. 2. Objective of the consultancy The objective of the consultancy is to develop an Ecotourism Development Master Plan for Kenya Forest Service, the tool that will guide planning, development, management and operation of responsible tourism in State forests in Kenya. The consultant(s) must inform themselves of the Baseline Assessment of Cross-Cutting Development Issues and Governance Assessment of the Forest Sector studies in the preparation and realization of their work. 3. Specific tasks The consultant is expected to visit State forests in the following five areas: Malindi and Kwale (including Shimba Hills Forest Reserve and Mwaluganje); Mt. Kenya and Aberdare (one forest station in each area); Kakamega Forest; Matthew s Range and Karura/Ngong Forest. The consultant is further expected to undertake the following: 1. Present a situational analysis of responsible tourism globally, regionally and in the country. 2. Describe the status of tourism and tourism resources in forest reserves and the requisite infrastructural development. 3. Determine the current and potential economic value of ecotourism in forest reserves. 4. Analyze the various options of tourism enterprises ownership, development and management including private sector participation and joint ventures. 12

13 5. Develop guidelines for responsible/sustainable designing, siting, construction, operation and decommissioning of tourism facilities and related infrastructure. 6. Develop guidelines for tourism zonation, determination of carrying capacities and/or limits of acceptable change for tourism-related developments in forest reserves. 7. Develop criteria for rating the standards of tourism facilities in forest reserves. 8. Develop responsible tourism codes of conduct for investors, tour operators, visitors, guides/porters and adjacent communities. 9. Analyze opportunities and strategies for mainstreaming community participation in tourism development in forest reserves. 10. Develop a marketing strategy for tourism products in forest reserves. 11. Recommend strategies for effective management of tourist-related safety, security, emergency, health and disaster management in forest reserves. 12. Describe opportunities and strategies for improving national, regional and international affiliations, partnerships and linkages. 13. Describe the research, information and training gaps, priorities and requirements for development of responsible tourism. 14. Describe the requisite legislative, human, financial, monitoring and evaluation requirements for implementing the Ecotourism Development Master Plan. 4. Expected outputs The consultant should furnish KFS with an inception report 7 days after signing of the contract, a draft Ecotourism Development Master Plan report 60 days after signing of the contract and a final Ecotourism Development Master Plan report 30 days after submission of the draft Ecotourism Development Master Plan report. 5. Qualifications The assignment should be carried out by a local consultant jointly with an international consultant. The team should have specialists in tourism and tourism planning (lead consultant), natural resource economics, human resources, marketing and community development. The lead consultant should possess a Bachelor degree in tourism and a Masters degree in a related field, in addition to proven experience in carrying out similar tasks. 6. Duration of the assignment The duration of the assignment is 90 days. The local consultant should work for not more than two months while the international consultant should work for not more than one month. 7. Responsibility of the consultant The consultant should meet all the cost of logistics (transport, accommodation, subsistence, stationery) and all that appertains to the consultancy with the exception of workshop expenses. The consultant should also arrange to obtain relevant documents including policy, legislation, publications and other necessary information from relevant agencies. 13

14 8. Responsibility of the client The consultant will be provided access to available project documents, technical reports and other relevant documents in the custody of the client. 9. Supervision arrangements The consultant will report to the Director of Kenya Forest Service and will work under the supervision of the MMMB Project Manager and the Chief Officer Ecotourism. 14

15 TERMS OF REFERENCE STRATEGIC AND INSTITUTIONAL SUPPORT FOR THE DEVELOPMENT OF CONCESSION MANAGEMENT FRAMEWORK FOR FORESTS IN KENYA Ref No. KFS/MMMB/05/ Background Development of industrial forest plantations remains a core activity of the Kenya Forest Service. This is borne out of the realization that the wood-based industries in Kenya largely depend on this vital resource for supply of raw materials and that the resource under sustainable management represents a viable economic enterprise. Sustainable supply of wood raw materials to the industry has been found crucial to protection and conservation of natural forests. Participation of the private sector in plantation management is recognized in the Forest Act (2005). In recognition of its importance, the Government in partnership with the Government of Finland will commission a consultant to assist the Kenya Forest Service (KFS) with the development concession management systems and procedures. A ban on timber harvesting was imposed in 1999 and extended in April 2002 through a Cabinet decision and covers all types of logging in gazetted forests. The ban was imposed due to the great concern within the general public and the government on the rationality of timber production and timber harvesting in the country. Issues were raised regarding the sustainability of exploitation levels, methods of licensing for harvesting, allocation of plantations and the low levels of revenues realized. There was a feeling that the practices then in place were not consistent with acceptable norms of resource management, equitable access, optimal and rational utilization of the timber resource. The rationale for the ban was to enable the Ministry streamline the management of the forest sector to ensure sustainable management. Specifically, the Ministry was required to carry out a forest plantation resource status assessment, draw short to medium term harvesting plans and rationalize licensing and forest resource allocation procedures. It is estimated that by the time the logging ban was imposed in 1999, there were about 450 sawmills in Kenya producing about 200,000m3 of sawn wood, which served mostly the domestic market. The potential annual capacity of the mills ranged from less than 500m3 of log input to more than 30,000m3 with potential to employ more than people. When tertiary services associated with the industry are considered, its loss assumes even wider social and economic dimensions. The ban has given rise to a lucrative black market for timber thereby creating an incentive for illegal logging. This phenomenon has put a heavy constraint on the limited resources available to KFS as the cost of enforcing the ban has forced the Service to shift resources from priority areas like plantation establishment, conservation and management. A recent study by KFS highlights the small to medium enterprises in sawmilling face serious problems of insufficient or lack of raw materials following the government ban. As a result of the ban, recorded sale of timber decreased from 197,000m3 in 2001 to 162,000m3 in 2002, while the sale of power and telephone poles decreased from 4,900m3 in 1998 to an absolute 0m3 in Because of this a large number of sawmillers closed down. The unavailability of timber from sawmills and the consequent insufficiency of raw materials for upstream manufacturers of 15

16 wood-based products has resulted into increased cost of raw materials for the sector. Closely connected to unavailability of raw materials is the low quality of timber, since local as well as imported timber is sometimes not well dried, graded or is harvested too early, which affects the quality of locally made wood-based products such as furniture. Within the framework of the Forest Act (2005), KFS has approved subsidiary legislation (rules and regulations) to govern community and private sector involvement in management of forests. The rules provide the operational framework for authorizing forestry activities, including timber harvesting. Every year the Service will determine sustainable harvesting levels based on strategic forest management plans. In line with the subsidiary legislation The Forests (Participation in Sustainable Forest Management) Rules, 2007, the logging and management of state forests can be transferred to a private company through a (i) Concession Agreement or (ii) Timber License - both through a competitive bidding. With long-term Concession Agreements the incentive for management increases. The Concession Agreement can include provisions for user rights and involvement of local communities. Section 24 to 28 outline general procedures and content of a Concession Agreement, the pre-qualification process for bidders, the information requirements of the offering and advertisement, the bidding process, and the awarding of the concession. A draft Concession Agreement has also been drafted and may require updating based on this consultancy input. The entire process of concession management will be based on standard technical and financial criteria. The KFS Management Board will vet all applications before any approvals are granted. Concession management must be in line with the new Public Procurement Act and associated regulations. The KFS now requires an elaborate framework that will form the basis for managing forest resource concessions in Kenya and which takes cognizance of the existing Forest legislation, as well as the forest policy, environmental law, and other relevant laws. The entire process of concession management will be based on standard technical and financial criteria. The KFS will vet all applications before any approvals are granted. Concessions Management must be in line with the new Public Procurement and Disposal Act (2005) and associated regulations. The KFS now requires an elaborate framework that will form the basis for managing forest resource concessions in Kenya and which takes cognizance of the existing Forest Legislation as well as other relevant laws. The concession framework must address pertinent issues raised in the board paper. 2.0 Specific Tasks The consultant will undertake the following tasks: 1) Concession Management Framework: Support the definition of long-term Government strategy for the development of concession management given the current and future suitability of industrial plantations (area, location, size, condition, etc): identify options for concessions in Kenya (large, medium, small): provide guidance on methodology to select areas to be placed under concession; and lead a process to identify the specific areas that should be placed under concession 16

17 2) Develop clear guidelines on the ways in which the Government will remain involved in concession management. the definition of the rights and obligations of both parties (KFS and the concession Holder) mechanisms that provide flexibility to the contract mechanisms for adjustment of prices and cost allowances; mechanisms for contract performance review and amendment: 3) Timber Pricing Methodology: Noting that bid prices for concessions may not be sufficient due to possible lack of competition for large concession areas held over long periods, there is need to support the development of a reserve price mechanism and price adjustment. The price adjustments must re-aligning prices to direct evidence or credible analyses of fair market value and take into account concession holder obligations. 4) Develop safeguards to protect the interests of other users. Identify the stakeholders that are likely to be affected by charge of property rights. 5) Social Impact Methodology: Develop a methodology for assessing financial returns and cost benefit sharing between concession holder and communities; identification of social impacts and efficiency gains from outsourcing management and involvement of communities. 6) The consultant to recommend appropriate incentives to enable communities respects the rights of the concessionaire. 7) Regulatory Procedures and Roles: Noting that the concession management system is envisaged to be top down in which the KFS develops plans for various aspects of forest management, development of effective approaches in which the concessionaires are given more responsibility for managing the allocated forest resources is essential. 8) Performance Review and Monitoring: Define the elements of a periodic performance review, as provided for in the Concession Agreement; and demonstrate how such a provision might also be part of the replacement concession model. 9) Administrative Guidelines: On the basis of effective conclusion on each of the above issues, provide advice on the drafting of guidelines relating to the future allocation and management of Concession Agreements. 10) Identify if corporatization, outsourcing and joint management alone may be a sufficient step: Consideration should be given to whether corporatization, outsourcing and joint management would achieve sustainable management i.e. alternative institutional arrangements to concessions. The consultant(s) must inform themselves of the Baseline Assessment of Cross-Cutting Development Issues and Governance Assessment of the Forest Sector studies in the preparation and realization of their work. 17

18 3.0 Outputs The expected outputs include:- Concession Management Framework; Final Concession Agreement template; Timber price mechanism-to set reserve price, monitoring, statistical reporting and Concession Agreement price revision mechanism; Harvest adjustment mechanism- guidelines for procedures for cutting and control mechanism in Concession Agreements: Social impact assessment methodology-to ensure preparations that wil support community uptake of roles and responsibilities; Review of regulatory procedures and roles, and advice on cost effective solutions based on global best practice; Bidding process documentation; Guidelines on performance review and monitoring of Concession Agreements; Recommendations on capacity building for effective management of Concession Agreements; Draft set of administrative guidelines on Concession Management ; 4.0. Reporting The (draft) reports shall be produced in English and submitted as a printed report as well as in electronic format to the MMMB Programme Manager. A final report, taking into account the comments of relevant stakeholders, should be completed by no later than the end of December Time table The international consultancy input is 2 months and national consultancy input is 1 month. The international consultant will lead, advice and coordinate the activities of the national consultant. The consultancy is expected to be implemented in October- December Qualifications The consultants should have the following qualifications and experience: The international consultant should have Master degree in relevant field of forestry or natural resources management Relevant experience in the field of forest concession framework development and he/she must have demonstrable previous experience in designing and implementing forest concessions. Previous experience in Kenya or the region is an asset. Proven ability to synthesize and write clear reports in English. The national consultant should have minimum B.Sc. degree in relevant field related to the assignment. He/she must have demonstrable experience in planning and management of forests by various stakeholders (Government, private sector, communities) Previous experience in providing technical assistance and cooperation activities will be an advantage. Proven ability to synthesize and write clear reports in English. 18