1 Hosted by ECCSA Supported by TERMSOFREFERENCE FOR THE PROVSION OF INTERNATIONAL TECHNICAL ADVISORY SERVICES TO THE CHAMBERS OF COMMERCE IN ETHIOPIA 2016-2020 Sida 1. BACKGROUND 1.1 Project Background The Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) is an apex organization of Chambers and Sectoral Associations in Ethiopia. It has eighteen members including nine Regional Chambers of Commerce and Sectoral Associations, two City Chambers of Commerce and Sectoral Associations, one National Chamber of Sectoral Associations and six Sectoral Associations organized at national level (www.ethiopianchamber.com/about-eccsa.aspx). ECCSA was officially recognized, as a legal institution, in 1947. This recognition enabled the establishment of an apex organization to represent the private sector at a national level. In 2003, following a government proclamation, a new structure was established for the national, regional and city chambers, reflecting the new federal structure. ECCSA became the national umbrella Organization with members who are national, regional and city associations, rather than individual enterprises. It was identified that the private sector should be strengthened to become a trusted partner of the government and should collaborate on policy formulation and implementation. It was recognized that Business Membership Organizations (BMOs), including Chambers of Commerce and Sectoral Associations, were a primary conduit between the public and the private sector, facilitating cooperation and mutual understanding. As the Ethiopian private sector grew and become more complex, capacity limitations were particularly apparent in the areas of research, advocacy, lobbying and the delivery of quality, demand based, services. The new responsibilities, incumbent upon ECCSA, represented several challenges and they requested support from donors, particularly in relation to strengthening their own capacity. 1.2 Project context The Swedish International Development Cooperation Agency (Sida) has been supporting Ethiopian Chamber players in its development since the early years of the new Millennium. This support has, mainly, been provided through the Private Sector Development Hub (the Hub). The Hub has been operating through ECCSA since April 2012, when it was selected by the government to facilitate national level public private consultation forums, after some years of consultations hosted by the Addis city Chamber AACCSA.
2 The over-arching objective of the Hub has remained the same since its early years of implementation; to contribute to the economic development of Ethiopia by improving and modernizing the entrepreneurial environment, and to strengthen the capacity of the Ethiopian private sector to constructively contribute to the national dialogue on economic development. To date, support has been targeted at strengthening chamber advocacy and dialogue activities, in addition to supporting the implementation of private sector reforms. There have been noted successes, While many challenges remain. Accordingly, there is a clear need to continue supporting and strengthening ECCSA s activities and initiatives in research, policy development and business advocacy. Future support will also focus on building the capacity of ECCSA to achieve and maintain financial sustainability. 1.3 current Status As a result of Sida funding, the PSD Hub has been supporting the activities of the Ethiopian chamber system to improve the business climate. This support has contributed to the increased capacity and capability of chambers in research, advocacy and policy influence, resulting in improved policy, legal and institutional arrangements for the sector. Challenges remain on the path towards a more consolidated and sustainable platform for constructive and sustainable advocacy. Effective long term dialogue and private sector coordination requires predictable resources. Without these, the systems which underpin economic growth will be constrained. ECCSA plans to adopt a broad approach to sustainability through its mandate in private sector development and advocacy. The intention is for designers of future activities to be aware of, and sensitive to, social and environmental issues, including gender equality and poverty reduction. ECCSA will help its members to design, develop and deliver demand-led products and services for which users are able and willing to pay. In this context, ECCSA and its member associations, have the opportunity to facilitate economic development within poor and marginalized communities, through the provision of specific services to support enterprise and through inclusion in the wider dialogue process. In the above context, these ToR relate to a project which will help to address the future financial sustainability of ECCSA, and its members. This will be achieved through the provision of demand-led, value adding products and services. The project will also develop the capacities of organizations, external to the chamber system, in order to help ensure that the entire advocacy process targets the removal of constraints faced by enterprises, including those owned by women. It is anticipated that these initiatives and activities will help to retain existing members and attract new members, thus enhancing the relevance of ECCSA and its member associations.
3 2. PROJECT DESCRIPTION 2.1 Objective, Outcomes and Outputs The overall objective of the project is to contribute to the economic growth of Ethiopia by creating an enabling business environment for private sector development. The project has been designed to deliver two aligned outcomes. 1. Outcome 1: Effective public / private dialogue that leads to regulatory and policy change, resulting in a more conducive environment for sustainable and inclusive economic growth; and 2. Outcome 2: The financial sustainability of the chamber system, assured through sustained and diversified member services. The project comprises five output areas. These will contribute to the achievement of the two project outcomes. Output 1: A strengthened Ethiopian chamber system that functions as a strategic representative and viable entity, facilitating consultation with the government on private sector needs for inclusive growth; Output 2: A private sector which is more geared towards long-term social and environmental sustainability, through awareness of green growth opportunities as well as the creation and maintenance of economic opportunities for disadvantaged groups; Output 3: A chamber system that serves as a platform for relevant knowledge and information exchange to members, businesses and disadvantaged groups; Output 4: Increased and enhanced ECCSA member service delivery which contributes towards securing future financial sustainability; and Output 5: A chamber system that is more responsive to the needs and demands of its members and businesses 2.2 Project Components The project will comprise two, mutually reinforcing, components which will support ECCSA via the delivery of Hub services. 1. Strengthening ECCSA s Capacity in Research, Policy Development and Advocacy The project will support ECCSA in strengthening its functions in research, policy development and advocacy to the government on matters of policy and regulation that affect the ability of the Ethiopian private sector generally, and impact upon jobs and income for the poor and women more specifically. 2. Capacity Strengthening for ECCSA Financial Sustainability The project will strengthen the capacity of ECCSA to achieve financial sustainability. This suggests the provision of demand led services by ECCSA to its members (and member s members). The support, to be delivered through the Hub, will focus on capacity strengthening that most directly addresses ECCSA financial sustainability.
4 2.3 Organization and Management of the Project A multi-stakeholder Steering Board (SB) will oversee project implementation. The SB comprises key stakeholder groups, including the Ministries of Industry and Trade, research associations, women entrepreneurs, media institutions, the Federal Micro and Small Enterprise Development Agency, donors and ECCSA membership associations. T h e S B i s chaired by the President of ECCSA. It is the policy guidance and decision making body for the project. The Hub is the delivery vehicle for the project. The Hub is directly accountable to ECCSA, which is ultimately responsible for project delivery. The Hub will be engaged in the facilitation and management of the project support services to ECCSA. The Hub comprises a small management unit of relevant experts and will deploy external consultants and other support to the program as necessary. It will work closely with relevant chamber staff to deliver the five project outputs above. The main focus of Hub support will be to build the competence of chamber staff and other key stakeholders to deliver these project outputs. 3. Technical Support Services Required 3.1 Objectives The technical advisory services are required for a period from 2016 to 2020. The main objective of these services is the financial sustainability of ECCSA through relevant strengthened capacity and capability. To achieve this objective, ECCSA is now seeking a consultancy organization with international know-how and expertise in developing the relevance, efficiency, effectiveness, impact and sustainability of business membership organizations (BMOs), willing and able to enhance the competencies and capacities of the Hub in is mission to: Screen and select intervention proposals (from BMOs) which have propensity to succeed; develop and manage intervention projects; commission studies that help improve the operational environment of the business Community; enhance the voices within the business community for effective dialogue with the public Sector; support the financial sustainability of ECCSA as an apex institution; and benefit substantially from international BMO experiences and skills. It is expected that the technical services will include advising, mentoring and supporting the Hub in relation to the design, development and delivery of relevant, international good practice, frameworks, manuals, automated systems, policies and procedures. From the outset, the technical support will be expected to backstop and finesse the existing automated and standard systems, manuals and procedures. Essentially, the technical support will be expected to cross check the activities of the Hub against international BMO best practice and to mentor and coach on good or best practice behaviors, initiatives and activities, in relation to the strengthening of BMO capacity resulting in greater financial sustainability. 3.2 Scope of Technical Support A consultancy organization or consortium with profound knowledge and experience in BMO support is now sought to deliver technical advisory and support services. Consortiums formed by local and international organizations are encouraged. The appointed staff, from the appointed organization, will be expected to perform the following tasks.
5 1. To assist the PSD Hub Project and its staff in the promotion, development and management of intervention projects and in the management, monitoring and evaluation of result chain and research studies. 2. To transfer practical operational techniques, automated working systems, models and work methods for project lifecycle management that can be adopted and used in the Ethiopian PSD context. 3. To provide expert BMO advice and to transfer current international knowledge and expertise related to specific intervention projects and to provide proven international good practice into project implementation procedures. 4. To develop, and support the delivery of, project proposals and research studies that are being implemented and prepared by the Hub; 5. To develop and strengthen the management capacity of the Hub and its core staff to serve as a strategic resource to the Ethiopian business community during and beyond the program period. 6. To facilitate international networking between the Hub Project and the global PSD environment and advise and assist the Hub in its endeavors to promote viable intervention projects and studies. The project comprises a six month inception phase, expected to end by August 31, 2016, followed by an implementation phase up to December 31, 2020. Transition from the Inception phase to the Implementation phase will be subject to the approval of an inception phase report and an implementation plan. The approving authorities will be Sida and the SB. 3.2.1 Technical Support Resources The technical support resources required for the project, will include the following. 1. One Senior BMO Advisor, acting as primary interface of support (advice, mentoring, coaching) to the Hub management while also advising upon (in the context of international good practice) contributions and interventions from short term technical advisors (STTAs) as below. 2. A pool of specialist STTA who will be available to provide specified short term consultancy services in priority areas. The Senior BMO Advisor (SA) will be mainly based from their home office and will support the Hub manager, through advising and transferring knowledge. This knowledge is most likely to be predicated on the international expertise of the SA in managing the development of BMOs and will include, inter alia, professional BMO management and operational techniques and intervention project work methodologies. Advice provided by the SA should be embedded in the local context but drawn from proven international BMO practices and techniques in other relevant countries. Operational techniques and professional BMO management will include, but not be limited to, the promotion of sustainable BMO services, stakeholder coordination and partnership, facilitation, capacity building approaches and results management, diplomacy and consensus building as well as in depth understanding of inclusive markets, financial, social and environmental sustainability, transparency and ethics. The nature of the support will be in the form of reactive mentoring and advice on documentation, approaches and wider activities. It is not intended that this support will be intensive, but more supportive through the provision of backstopping support.
6 The SA will assist the Hub in t h e identification, selection, contracting and in-country management of international short term experts as required by the project. It is envisaged that this work will be undertaken mainly from the home office of the SA. Tasks, specifically performed by the SA, are expected to include, but are not limited to, the following; Proactive mentoring for the Hub in supporting an effective and sustainable path for Public- Private dialogue through relevant Chamber players and other institutions important to the PSD Advocacy system in Ethiopia. Proactive mentoring for the Hub in its scoping, assessing, planning, preparing, proposing, managing, developing, monitoring and reporting activities for new and ongoing income generating membership services projects. This task includes monitoring of, and participation in the procurement of, specialized Technical Assistance, including t h e development of relevant assessment criteria and guidelines for service selection and the Terms of References for TA once relevant services have been selected. Proactive mentoring in the establishment of high quality policies, procedures and guidelines for the Hub, in line with policies and frameworks established during the inception phase of the project Acting as a sounding board and providing quality assurance in the development of procedures and manuals covering Hub functions, during and after the inception phase, with an emphasis on the following. Effective and efficient processes and policies for managing the screening of options for income generating services, including frameworks for procurement and transfer of funds to qualified members of ECCSA, as well as internal approvals for projects by the SB and Sida Pre-screening of, and commentary on, project proposals being forwarded for decision by the SB and Sida Adopting a balanced management approach to those projects approved by the SB and Sida, taking into consideration the various needs and capacities of member associations as well as those of external stakeholders in the advocacy and BDS system of Ethiopia Integrating the initial pipeline of Hub projects and capacity development efforts into work plans and results frameworks, which will be based on results from a demand survey independently commissioned, and form a part of the Inception Phase report/draft Implementation plan for approval by the end of the inception phase Supporting the Hub in reviewing progress and financial reports for quality assurance before submitting such reports to the SB and Sida. The SA is expected to advise the Hub management in coordinating the SSTA to be provided by the consultancy organization in order to achieve project objectives.
7 3.2.2 Pool Short Term Technical Advisers (STTA) The successful Consulting Firm will make available a pool of STTAs, as needed in complementing the SA in the fulfilment of required works. These people will be specialists, complementing the skills and experience of the SA. This complementary STTA expertise should be available to the Hub throughout the duration of the project. The purpose of the pool of STTAs is to provide short term technical support and consulting services, in their respective specialized areas, as agreed between the SA and the Hub management when support needs can t be fulfilled by the SA. STTA services will be provided by Individual experts from the tendering company, an associated (consortium or sub-contracted) bidding organization or through a network of specialists that have been offered as an integral part of the tender. If listed consultants become unavailable through the lifetime of the agreement, equal or superior candidates should be presented to the Hub management for approval. Additional external specialists can be identified and recruited on an ad-hoc basis for shortterm assignments, if agreed by the Hub management, in collaboration with the SA. There are four primary fields of international expertise for STTA and these are as follows. Capacity Building and Organizational and Human Resource Development of BMOs. IT systems and data management Statistics relating to BMOs. Marketing and Communication relating to BMOs. Project Planning, Project Management; Monitoring, Evaluation, Organizational Learning and Knowledge Management, in relation to BMOs. It is not possible to list the exact expertise, or the number of input days, required to be utilized over the life of the project. Detailed Terms of Reference for each task, requiring STTA inputs, will thus be agreed between the SA and Hub Management as the project evolves. The coverage of the fields of specialization, within the proposed STTA pool, should be as broad as possible to accommodate the wide range of activities of the Hub. However, when circumstances arise where the Hub requires personnel that are beyond the specializations offered, the consulting firm will be required to source appropriate experts and provide the Hub with at least three CVs of potential candidates along with their corresponding daily fee rates. 3.2.3 SA Performance and STTA Engagement Process The appointed consulting organization or consortium will be responsible for the performance of the SA in delivering the requirements, as well as the quality of services, described above. All STTA services scribed above, will carried out only upon receipt of a written request and pre-agreed expert input days, terms of reference (ToR) and reimbursable costs. Payments will be endorsed only upon acceptance of the deliverables as set out in the individual ToR and will be based on pre-established rates, as listed in the proposal of the appointed consultancy organization.
8 4. Qualification and Experience of the Tendering Firm 4.1 Requirements from the Consultancy Organization and its Personnel The bidding consultancy organization should have 10 years proven experience with private sector development, BMOs and project management delivered through donor financed projects in developing countries, specifically those in Africa. The bidding consulting organization should illustrate that it has an adequate number of in-house staff to provide quality backstopping services to the project. The firm has relevant experience of working in Low income Countries. Relevant experience in Ethiopia is a distinct advantage. An understanding of, and experience in developing market systems in the context of business environment reform. The SA should have a relevant post graduate degree from a recognized University and she or he should have a comprehensive understanding of the nature of developing country economies. The SA should have at least ten years of project management and consulting experience from relevant PSD programs, such as advocacy and sustainability programs for BMOs in developing countries. She or he should also understand relevant Low Income Country contexts, and should have proven skills and experience in the capacity strengthening of successful BMOs. The SA should have excellent written and spoken English language skills, proven management capabilities and a well formed sensitivity to local conditions. Related experience in Ethiopia is a distinct advantage. The listed STTAs are expected to have five years of relevant and proven experience within their specialist areas, applied within the context of donor funded PSD programs in developing countries. The listed STTAs are expected to have relevant academic and practical qualifications as well as knowledge and skills in their subject areas. The consulting organization should provide three references that serve to demonstrate experience, within the last five years, in complex international projects of a similar nature to that described in these ToR, including the provision of long term personnel overseas. All personnel deployed for delivery of services under these ToR must have a good command of the English language in both written and spoken form, and should be knowledgeable regarding the political economy, cultural and socio economic work environment in developing countries. Related experience in Ethiopia is a distinct advantage.
9 5. Proposal requirements, time frames and contact details The SA is required to be based in their home office for a substantial duration of the project, on the basis of 50 days per year. Provision should be made for complementary STTA inputs of up to 25 days per year, depending on needs as agreed with the SA. Interested consultancy organizations are now requested to submit a technical and financial proposal which is no longer than 20 pages. The technical element for the proposal should include an introduction that demonstrates relevant firm and TA experience and understanding of the challenges of BMOs in developing countries, with particular observations and approaches relevant for Ethiopia at the core. In addition, a three page CV of the proposed SA, and one page CVs of proposed complementary STTA experts. The technical proposal should include three relevant company references. The technical proposal will comprise 80% of the evaluation score. Technical evaluation criteria are as follows. Introduction, as outlined above - 20% Relevant experience, as set out in the CV of the SA 40% Relevant experience, as set out in the CVs of the STTAs 20% Relevant experience of the consultancy organization 20% The financial proposal should clearly set out daily fee rates for the SA and any associated costs. Each STTA CV provided should indicate only a daily fee price. This will be evaluated on the basis of value for money and will account for 20% of the evaluation marks. Please note that the financial evaluation will be based on the total cost (fees and incidentals) of the SA, based on 50 days of inputs per year, and the individual daily rates for the complementary STTAs that have been listed (CVs provided) in the technical proposal. Specific STTA input days and associated costs will be subject to individual (for each intervention) contracts. A) The original and two copies of the technical and financial proposal should be sent, by courier, to the PSD Hub office in t h e Ethiopian Chamber of commerce and sectorial Associations through address: P.O. Box 517, Addis Ababa, Ethiopia. In addition, an electronic version of thetechnical and financial proposal should be sent, via e-mail to ethchamb@ethionet.et; hariaw@ethiopianchamber.com; asterm@ethiopianchamber.com; and mastu3mark@gmail.com B) Proposals (electronic and paper original and copies) should be submitted, as above, by 12h00 local time on Friday 24 June, 2016 C) Please address any queries or requests for clarification to Aster Mihret, ethchamb@ethionet.et; hariaw@ethiopianchamber.com; asterm@ethiopianchamber.com, and mastu3mark@gmail.com by 17h00 local time on Friday 10 June and responses will be circulated by 12h00 local time on Tuesday 14 June, 2016. D) The evaluation of proposals and contracting process will be completed by July 1 and the tentative project start date will be Monday, July 11.