Cost-Benefit Analysis of Climate

Vétérinaires Sans Frontières Switzerland (VSF-Suisse), in collaboration with the World Food Programme (WFP), is inviting eligible consultancy firms or individual consultants to express their interest in conducting a consultancy service for the cost-benefit analysis of climate-smart technologies and investments in value-added equipment, as well as facilitating the market and value chain assessment in the Haroreys, Awbare, and Tuliguled Woredas of the Fafan Zone.

The aim of this consultancy is twofold: firstly, to assess the economic feasibility, benefits, and potential returns on investment associated with adopting selected climate-smart technologies and investments in value-added equipment. Secondly, to gain a deeper understanding of the existing market dynamics and value chains in the project areas, which will inform the development of strategies and interventions to enhance market access and value chain efficiency for smallholder farmers.

The cost-benefit analysis will provide evidence-based insights into the economic viability and potential benefits of adopting climate-smart technologies and value-added equipment in the agricultural sector. By understanding the potential returns on investment, project stakeholders can make informed decisions regarding the prioritization and allocation of resources to promote sustainable agricultural practices and improve the livelihoods of smallholder farmers.

Additionally, the market and value chain assessment will focus on identifying the key actors, stakeholders, and dynamics within the agricultural value chains in Haroreys, Awbare, and Tuliguled Woredas. The assessment will explore market linkages, value-addition opportunities, challenges, and constraints faced by smallholder farmers, as well as potential interventions to enhance market access, value chain efficiency, and income generation.

The selected consultant(s) will work closely with VSF-Suisse and project stakeholders to conduct a comprehensive cost-benefit analysis and facilitate the market and value chain assessment. The consultant(s) will be responsible for providing a detailed report on the cost-benefit analysis findings, including recommendations for adopting specific climate-smart technologies and investments in value-added equipment. Furthermore, the consultant(s) will deliver a comprehensive report on the market and value chain assessment, identifying key findings, challenges, and proposed interventions to strengthen market linkages and value chain efficiency.

Interested consulting firms or individual consultants are invited to submit their expressions of interest, demonstrating their qualifications, experience, and capacity to undertake the proposed consultancy. Eligible consultants must possess relevant expertise in cost-benefit analysis, agricultural economics, market analysis, and value chain development and have a strong understanding of climate-smart technologies.

This Call for Expression of Interest provides the necessary information regarding the project background, objectives, scope of work, eligibility criteria, timeline, deliverables, qualifications, and submission process. It is essential that interested consultants carefully review the requirements and guidelines outlined in this document and submit their expression of interest in accordance with the provided instructions.

VSF-Suisse and the project stakeholders are looking forward to receiving expressions of interest from qualified and experienced consulting firms or individual consultants who can contribute to the successful implementation of this important consultancy service, ensuring the sustainable development of smallholder farming communities and the improvement of market access and value chain efficiency in Haroreys, Awbare, and Tuliguled Woredas.

Project Background:

This Integrated Smallholder Farmers Resilience and Livelihood Support in the Jijiga Area Project, implemented by Vétérinaires Sans Frontières Switzerland (VSF-Suisse) in collaboration with the World Food Programme (WFP), aims to enhance agricultural productivity and improve the livelihoods of smallholder farmers in the Haroreys, Awbare, and Tuli-Guled Woredas of the Fafan Zone. This project aligns with WFP's strategy to scale up transformative and resilient local food systems in Ethiopia from 2023 to 2026 and VSF-Suisse's global strategy for 2021–2024, which focuses on enhancing livestock-based livelihoods and improving food and nutrition security.

Smallholder farmers in the target areas face various challenges that hinder their agricultural productivity and livelihoods. These challenges include limited access to modern technologies, inadequate value-addition capabilities, and climate change impacts. The project aims to identify and assess the potential benefits and economic viability of climate-smart technologies and investments in value addition equipment to address these challenges and promote sustainable agricultural development.

Climate-smart technologies encompass a range of practices, techniques, and tools that enable farmers to adapt to and mitigate the impacts of climate change while improving productivity and sustainability. These technologies can include efficient irrigation systems, resilient crop varieties, precision farming techniques, soil and water conservation measures, and renewable energy solutions. On the other hand, value addition equipment refers to machinery, tools, and processing facilities that enhance the post-harvest handling, storage, and processing of agricultural products, increasing their value and marketability.

The cost-benefit analysis of climate-smart technologies and investments, in value addition equipment will provide valuable insights into the economic feasibility, potential returns, and benefits of adopting these interventions. This evidence-based analysis will guide decision-making processes, enabling the project to prioritize the most suitable and beneficial interventions for smallholder farmers. By promoting the adoption of climate-smart technologies and value addition equipment, the project aims to maximize its impact, enhance agricultural productivity, and improve the resilience and livelihoods of smallholder farmers in the project areas.

In addition to the cost-benefit analysis, the project recognizes the importance of understanding market dynamics and value chains in creating sustainable and inclusive agricultural systems. Therefore, a market and value chain assessment will be conducted to identify key actors, market opportunities, and value chain constraints. This assessment will provide valuable insights for the project to foster market linkages, identify potential partnerships, and support smallholder farmers in accessing profitable markets.

The market and value chain assessment will be carried out in Haroreys, Awbare, and Tuli-Guled Woredas. These areas were selected based on their significance in agricultural production and the livelihoods of smallholder farmers. The assessment will provide a comprehensive understanding of the existing market dynamics, value chains, and potential opportunities for smallholder farmers in these woredas.

conducting both the cost-benefit analysis and market and value chain assessment, the project aims to make informed decisions, allocate resources effectively, and design interventions that address smallholder farmers' specific needs and challenges. The findings and recommendations from these assessments will contribute to the project's overall objectives of enhancing agricultural productivity, improving livelihoods, and building climate resilience in the target areas.

Objective:

The objective of this consultancy service is to conduct a comprehensive cost-benefit analysis and facilitate a Market and Value Chain Assessment to evaluate the economic viability, potential returns on investment, market dynamics, and value chain systems in Awbare, Tuliguled, and Haroreys woredas of Fafan Zone in the Somali region.

1. Cost-Benefit Analysis of Climate-Smart Technologies and Investments in Value-Added Equipment:

•  Assess the economic feasibility, benefits, and potential returns on investment associated with adopting selected climate-smart technologies and investments in value-added equipment in the agricultural sector.

•  Provide evidence-based insights into the economic viability of adopting these technologies and investments, enabling informed decision-making by project stakeholders.

• Recommend specific climate-smart technologies and value-added equipment that have the potential to enhance agricultural productivity, reduce post-harvest losses, and improve the overall resilience and livelihoods of smallholder farmers in the target woredas.

2. Facilitating Market and Value Chain Assessment:

•   Gain a deeper understanding of the existing market dynamics and value chains in Awbare, Tuliguled, and Haroreys woredas.

•   Identify key actors, stakeholders, and market linkages within the agricultural value chains, including input suppliers, producers, aggregators, processors, and buyers.

•   Identify challenges, constraints, and opportunities for smallholder farmers in accessing markets, value addition, and value chain development.

•   Propose interventions and strategies to enhance market access, value chain efficiency, income generation, and sustainable agricultural development in the target woredas.

Scope of Work:  

The scope of work for the consulting service includes, but is not limited to, the following activities:

Cost-Benefit Analysis of Climate-Smart Technologies and Investments in Value-Added Equipment:

• Conduct a comprehensive assessment of selected climate-smart technologies and investments in value-added equipment in Awbare, Tuliguled, and Haroreys woredas.

• Collect data and information on the costs associated with adopting and implementing these technologies and investments.

• Analyze the selected technologies and investments' potential benefits, returns on investment, and cost-effectiveness.

•  Evaluate the economic viability and financial feasibility of adopting these technologies and investments for smallholder farmers in the target woredas.

•   Assess the potential impact of the technologies and investments on agricultural productivity, post-harvest losses, income generation, and overall resilience of smallholder farmers.

•   Provide evidence-based recommendations on the most suitable climate-smart technologies and value-added equipment to be adopted in the target woredas.

Facilitating Market and Value Chain Assessment:

•  Conduct a comprehensive analysis of the market dynamics and value chain systems in Awbare, Tuliguled, and Haroreys woredas.

•   Identify key actors, stakeholders, and market linkages within the agricultural value chains, including input suppliers, producers, aggregators, processors, and buyers.

•  Assess smallholder farmers' existing market structures, pricing mechanisms, and market access opportunities.

•   Identify challenges, constraints, and opportunities for smallholder farmers in accessing markets, value addition, and value chain development.

•   Analyze the potential for value addition, market diversification, and income generation within the agricultural value chains.

•   Develop strategies and interventions to enhance market access, value chain efficiency, income generation, and sustainable agricultural development in the target woredas.

Timeline:

The timeline for the consultancy service for the Cost-Benefit Analysis and Market and Value Chain Assessment in Awbare, Tuliguled, and Haroreys woredas is as follows:

Inception Phase (1 week):

•   Review project documents and background materials.

•   Conduct initial consultations with VSF-Suisse and project stakeholders.

•   Develop a detailed work plan and methodology.

Data Collection Phase (4 weeks):

•  Collect relevant data and information on climate-smart technologies, value-added equipment, market dynamics, and value chain systems.

•  Conduct interviews, surveys, and focus group discussions with key stakeholders, including farmers, market actors, and value chain participants.

• Visit project sites in Awbare, Tuliguled, and Haroreys woredas to gather firsthand information.

Data Analysis and Reporting Phase (3 weeks):

• Analyze the collected data and information using appropriate analytical tools and techniques.

• Prepare a comprehensive report on the cost-benefit analysis of climate-smart technologies and investments in value-added equipment, including findings, analysis, and recommendations.

•  Prepare a separate report on the Market and Value Chain Assessment, highlighting key findings, challenges, and proposed interventions.

Presentation and Validation Phase (1 week):

•   Present the analysis findings and assessment reports to project stakeholders, including VSF-Suisse, WFP, government agencies, and other relevant institutions.

•   Facilitate discussions and validations of the findings and recommendations with stakeholders.

•   Incorporate feedback and finalize the reports.

Final Report and Documentation (1 week):

•   Prepare the final reports, incorporating feedback and recommendations from stakeholders.

•  Submit the final reports to VSF-Suisse and WFP.

•   Provide any additional documentation or supporting materials as required.

The total duration of the consultancy service, including all phases, is estimated to be approximately ten weeks.

Deliverables

The consultancy service for the Cost-Benefit Analysis and Market and Value Chain Assessment in Awbare, Tuliguled, and Haroreys woredas will require the following deliverables:

1. Inception Report:

•  A detailed inception report outlining the proposed work plan, methodology, data collection tools, and analysis framework.

•  The report should also include a clear timeline for the different activities to be conducted during the consultancy.

2. Data Collection and Analysis:

•   Comprehensive data collection on climate-smart technologies, value-added equipment, market dynamics, and value chain systems in the target woredas.

•  Analysis of the collected data using appropriate analytical tools and techniques ensures the findings' accuracy and reliability.

3. Cost-Benefit Analysis Report:

•  A comprehensive report on the cost-benefit analysis of selected climate-smart technologies and investments in value-added equipment.

•   The report should include findings, analysis, and recommendations regarding the economic feasibility, benefits, and potential returns on investment.

•  Recommendations should highlight specific climate-smart technologies and value-added equipment that have the potential to enhance agricultural productivity and improve the livelihoods of smallholder farmers.

4. Market and Value Chain Assessment Report:

•  A separate report on the Market and Value Chain Assessment analyses existing market dynamics and value chain systems in Awbare, Tuliguled, and Haroreys woredas.

•   The report should highlight key actors, stakeholders, market linkages, challenges, and opportunities for smallholder farmers.

•   Recommendations should propose interventions and strategies to enhance market access, value chain efficiency, income generation, and sustainable agricultural development.

5. Presentation of Findings:

• Present the analysis findings and assessment reports to project stakeholders, including VSF-Suisse, WFP, government agencies, and other relevant institutions.

•   Facilitate discussions and validations of the findings and recommendations with stakeholders, ensuring their understanding and buy-in.

6. Final Reports and Documentation:

•  Finalize the cost-benefit analysis report, incorporating feedback and recommendations from stakeholders.

•   Finalize the Market and Value Chain Assessment report, incorporating stakeholder feedback and recommendations.

•   Submit the final reports to VSF-Suisse.

•   Provide any additional documentation or supporting materials as required by the project.

The consultant(s) will be responsible for ensuring the timely delivery of high-quality deliverables. Regular progress updates and consultations with VSF-Suisse will be required throughout the consultancy to ensure the deliverables align with the project's objectives and expectations.

Eligibility Criteria

Consultancy firms or individual consultants interested in providing the Cost-Benefit Analysis and Market and Value Chain Assessment services must meet the following eligibility criteria:

•  Demonstrated experience in conducting cost-benefit analyses, market assessments, and value chain analyses in the agricultural sector.
•   Proven track record of working on climate-smart technologies, value addition, and agricultural development projects.

•   Experience in working with smallholder farmers, rural communities, and relevant stakeholders in similar contexts.

• Expertise in agricultural economics, rural development, value chain analysis, market assessments, and cost-benefit analysis.

•  Familiarity with climate-smart technologies and investments in value-added equipment.

•  Knowledge of market dynamics, value chain systems, and market linkages in agricultural sectors.

•   Strong research and data collection skills, including qualitative and quantitative data analysis.

• Proficiency in using analytical tools, software, and statistical methods for data analysis.

•   Ability to interpret and present complex findings clearly and concisely.

•   Familiarity with the agricultural context, challenges, and opportunities in Awbare, Tuliguled, and Haroreys woredas of Fafan Zone, Somali region.

•   Understanding of the socio-economic factors, market structures, and value chain actors in the target areas.

•   Knowledge of local languages and cultural dynamics that facilitate effective communication and engagement with local communities.

•   Sufficient human resources and capacity to carry out the required activities within the agreed timeline.

•   Access to necessary research tools, data collection instruments, and analysis software.

•   Ability to travel to the project locations and conduct fieldwork as required.

•   Compliance with all relevant laws, regulations, and ethical standards in conducting the consultancy.

•  Adherence to the principles of transparency, accountability, and integrity in all aspects of the work.

Interested consultants or consultancy firms must provide a detailed expression of interest, clearly demonstrating how they meet the eligibility criteria. This should include a description of their relevant experience, expertise, and resources, along with CVs or company profiles, references, and other supporting documents showcasing their qualifications.

Interested consultancy firms or individual consultants should submit their Expression of Interest electronically in PDF format to the following email <[email protected]>. The email's subject line should be "Expression of Interest - Cost-Benefit Analysis of Climate-Smart Technologies and Investments in Value Addition Equipment."

Interested consultancy firms or individual consultants should submit their Expression of Interest electronically in PDF format to the provided email address.

The submission should include the required documentation outlined in the Call for Expression of Interest, such as

•  The company profile or consultant's resume,
• Description of previous similar assignments,
• Proposed methodology and work plan,
• Estimated budget and cost breakdown,
•  Any additional relevant information or supporting documents.

Please ensure that all submitted documents are clear, concise, and well-organized. The evaluation and selection process will be based on the quality and relevance of the submitted documents.

Note: Only shortlisted candidates will be contacted for further evaluation and potential engagement.

The deadline for an Expression of Interest submission is September 02,2023. Submissions must be on time to be accepted.

For any inquiries or further information, please contact Selamawit Zewge using the email above.