Feasibility Studies for Industrial Zones
Source: World Bank — Ethiopia Competitiveness and Job Creation Project
REQUEST FOR EXPRESSIONS OF INTEREST
(CONSULTING SERVICES – FIRMS SELECTION)
COUNTRY: ETHIOPIA
PROJECT: COMPETITIVENESS & JOB CREATION PROJECT
Preparation Advance No.: Q868-ET
Assignment Title: Feasibility Studies for Industrial Zones
The Federal Democratic Republic of Ethiopia (FDRE) has secured financing from the World Bank towards the cost of the preparation of the proposed Competitiveness & Job Creation (CJC) Project, and intends to apply part of the proceeds for consulting services for feasibility studies on two industrial zones. This CJC Project will contribute to GoE's employment creation goals by attracting investments and enhancing enterprise competitiveness in targeted industrial zones (IZ) in Ethiopia. This will be achieved by: (i) strengthening institutional and regulatory framework for IZ development, and capacity building; (ii) supporting industrial infrastructure development of IZs; and (iii) enhancing IZ linkages to small and medium enterprises (SMEs) through targeted interventions. A phased approach will be adopted for both the targeted Kilinto and Bole Lemi industrial zones sites that arelocated in the capital city, Addis Ababa.
The Consulting services ("theServices") will comprehensively cover the policy, legal and institutional framework, demand assessment based on priority sectors identified aspart of the work, investment generation, indicative master planning, engineering costs, options for public-private partnerships (PPP), sitespecific environmental and social assessments, and economic & financial analyses, etc. The feasibility studies will build on existing work and will include the following components:
(i) Detailed market assessment and demand analysis. The Market Assessment evaluates the potential market demand for the proposed industrial zones based on their comparative & competitive advantages, and provides a strategy for attracting investments specifically to the zones. This market assessment is expected to go beyond typical demand assessment studies and will also explore the industry dynamics, the relevant value chains, the necessary eco-system, and competitiveness issues. This component will include tasks such as establishing the IZs' comparative and competitive advantages based on specific industries identified through a sound methodology; assessment of the existing IZ policy; legal and institutional framework; study of the major sectors and target markets for an effective investment generation campaign; demand analysis and forecasts; overview of the latest global and regional IZ investment flows; and development of a vision and a value proposition for the IZs, etc.
(ii)
(iii) Site specific environmental and social impact assessments. The Environmental and Social Impact Assessment (ESIA) will cover not only the phase II of the project sites, but will also audit whether environmental and social issues were properly tackled in Phase I of the industrial sites, using the World Bank Group standards. The objective of the impact assessments is to: (1) identify and assess key adverse environmental and social impacts that may result from the activities of the IZs project and (2) recommend appropriate mitigation measures to remove or minimize the adverseimpacts identified. The tasks will include an analysis of existing environmental and social characteristics of the site; stakeholder consultation process; determination of legal and regulatory considerations; identification of potential environmental and social impacts of the IZdevelopment and provision of mitigation measures, etc.
(iv)Economic and financial analyses. To understand the long-term viability and sustainability of the IZs, an economic and financial assessment is required. As such, the Consulting Team is required to look at the short, medium and long-term costs and benefits to developing theIZs. The main indicator is the Economic Rate of Return (ERR), the Internal Rate of Return (IRR) and the impact of job creation on the economy. In addition, an economic and financial strategy is required to ensure that the IZ remains financially competitive in the future. The tasks will include a financial model, an economic model, PPP options etc.Combined with the above components, especially component (i), the team is also expected to propose most suitable IZ PPP models to consider in Ethiopia (with specific examples of how they are applied elsewhere).
The Ministry of Industry, Ethiopia now invites eligible consulting firms ("Consultants") to indicate their interest in providing the Services. Interested consultants must provide information indicating that they are qualified to perform the Services. The Short listing criteria are core business and years in business, qualificationsin the field of the assignment, technical and managerial organizationof the firm, general qualifications and number of key staff. .
The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank's Guidelines: Selection and Employment of Consultants [under IBRD Loans and IDA Credits & Grants] byWorld Bank Borrowers ("Consultant Guidelines"), setting forth the World Bank's policy on conflict of interest.
Consultants may associate with other firms in the form of a joint venture ora sub-consultancy to enhance their qualifications. A Consultant will be selected in accordancewith the QCBS method set out in the Consultant Guidelines. Further information can be obtained at the address below during office hours i.e. 0830 to 1730 hours.
Expressions of Interest should be submitted, in the English language, and must be delivered in a written form to the address below(in person, or by mail, or by fax, or by e-mail) by August 27, 2013.
Attention: Mr. Milkias Teklegiorgis
Project Coordination Unit
P.O. Box 5641, Former ExportPromotion Building
Room 202, Bole Road, Addis Ababa, Ethiopia
Tel: +251-11-5504175; Fax: 251-11-5504172; E-mail: miltgt@gmail.com
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