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RFP – Mapping diagnostics analytics and assessments of the draft legislation and implementation of a national warehouse system in Nigeria

REQUEST FOR PROPOSAL

RFP/0912/PA/2020

MAPPING, DIAGNOSIS AND ANALYSIS OF OPTIONS FOR IMPLEMENTATION OF A NATIONAL WAREHOUSE RECEIPT SYSTEM IN NIGERIA

CLIENT: ALLIANCE FOR GREEN REVOLUTION IN AFRICA (AGRA)

___________________________________________________________________________

AGRA reserves the right to determine the structure of the process, number of short-listed participants, the right to withdraw from the proposal process, the right to change this timetable at any time without notice and reserves the right to withdraw this tender at any time, without prior notice and without liability to compensate and/or reimburse any party.


Synopsis of the Request for Proposal (Regional and International Consultancy Firms)

Solicitation Reference No.RFP/0912/PA/2020  
Title of SolicitationMapping, diagnostics, analytics and assessments of the draft legislation and implementation of a national warehouse system in Nigeria”.
Issuing Office & AddressAlliance for a Green Revolution in Africa (AGRA) Website: www.agra.org
Point of contact for clarifications, questions and ammendmentsAGRA General Procurement, Procurement@agra.org
Email Address for submission of Proposals/ QuotesAGRA General Procurement, Procurement@agra.org
Solicitation Issue DateJune 19th , 2020
Deadline for submission questions and clarificationsJune 23rd, 2020 1700 hours, East African Time
Deadline for Answering questions and clarificationsJune 26th,  2020
Deadline for Submission of ProposalsJuly 3rd , 2020 1700 hours, East African Time  
Anticipated Award TypeCONSULTANCY AGREEMENT
Submission and Evaluation CriteriaBidder must provide the below listed information in the submitted proposal:   Mandatory Eligibility Requirement: Must be a registered, accredited organisationProvide a Certificate of Incorporation/RegistrationProvide valid tax clearance certificates   Evaluation Criteria summary: Experience in similar assignments and Organizational capacity – 30%Proposed methodology and work plan for carrying out the assignment – 30%Key personnel – 40%   Weightage Technical Proposal will be weighted out of 80%Financial Proposal will be weighted out of 20%   NB. Only bidders who score above 75% of the technical score will be appraised for financial review.  

 

Terms of Reference – Annex A

1.Background

The Alliance for a Green Revolution in Africa (AGRA),  www.agra.org is a not-for-profit organization working with African governments, other donors, NGOs, the private sector and African farmers to significantly and sustainably improve the productivity and incomes of resource poor smallholder farmers in Africa. AGRA aims to ensure that smallholder farmers have what they need to succeed good seeds and healthy soils; access to markets, information, financing, storage and transport; and policies that provide them with comprehensive support. Through developing Africa’s high-potential breadbasket areas, while also boosting farm productivity across more challenging environments, AGRA works to transform smallholder agriculture into a highly productive, efficient, sustainable and competitive system, while protecting the environment.

AGRA’s mission is to catalyze an agricultural transformation in Africa through innovation-driven, sustainable, productivity increases and access to finance that improve the livelihoods of smallholder farmers.

In April 2018 AGRA funded National Programme for Food Security (NPFS) to carry out consultations with relevant stakeholders and re-activate the abandoned Commodity Exchange and Warehouse bills which were in the National Assembly since 2015 but had never been brought up before the 8th Assembly from 2017 to 2018. The bills are presented in the table below:

SNTitleNo.SponsorStatus
1Nigeria Independent Warehouse Regulatory Agency (Establishment) Bill, 2018HB 1495Hon. Chukwudi Victor Jones Onyereri*Presented on 7th July, 2018; *First reading only
2Warehouse Receipts Bill, 2017HB 1052Senator Sam O. Egwu*presented on 6th June, 2017 * First reading
3Commodities Exchange Bill, 2015  HB 31Hon. Abonta Uzoma Nkem*Presented on 29th October, 2015 *Awaiting Committee Report

In 2018, AGRA supported the Nigerian Economic Summit Group (NESG), www.nesgroup.org , a private sector led think-tank organization that promotes public-private dialogue, sustainable growth and development in the Nigerian on advocacy and sensitization on the Warehouse Receipt System Bill, which was passed by both Houses of the National Assembly. NESG worked with other partners like AFEX, the Central Bank of Nigeria (FSS2020), and the Security and Exchange Commission (SEC), to raise awareness on the value of the bill if signed into law. Unfortunately, the Independent Warehouse Receipt System Bill was not signed because it was seen as lacking some of the key perspectives on current realities on WRS and the direction of government.

One of the biggest challenges Nigerian farmers especially smallholders face is the lack of access to credit to meet their financing needs due to lack of collateral and are often forced to sell their commodities immediately after harvest, often at lower prices, as a result of inadequate postharvest infrastructure. The 2019 Warehouse Receipts Bill was designed to introduce the Warehouse Receipts System (WRS) in Nigeria, hence provide Nigerian farmers leverage as collateral for loans from financial institutions, reduce postharvest losses, which is as high as 30% in some value chains, and increase their investment in input technologies to increase their yield.  The WRS was supposed to define the protocols of financing and trading agricultural outputs based on a warehouse receipt, a document guaranteeing the existence and availability of a given quality and quantity of commodity in storage for safekeeping. The system finances agricultural commodity owners by using their commodity as collateral.   However, the legislative instrument was rejected as it was seen as lacking some of the key perspectives on current affairs on the direction of government.

AGRA believes that a well-designed National Agricultural Warehouse System can provide many benefits to smallholder farmers, cooperatives, traders and other players across the agricultural value chain. However, the failure of the bill from becoming law necessitated the need for stakeholder consultations in the country to review the best approach towards developing the commodities trade and reduction in post-harvest losses. Stakeholders   noted that a National Systems approach should be employed based on the many practical applications of warehouse receipt financing models.

The Enabling the Business of Agriculture assessments of laws and regulations in agriculture carried out by the World Bank in 2019 included measures of thematic scores on accessing to finance using warehouse receipts index using data from 101 countries around the world. Nigeria was bottom ranked with a country score of zero. This is because the response was no to the question of whether there is a law regulating the operation of warehouse receipts.  Similarly, the responses were no to follow up questions whether warehouse operators must provide any of the following performance guarantees; file a bond with a regulator; pay into an indemnity or guarantee fund to secure performance of obligations; and insure a warehouse or the stored goods against damage. Likewise, the responses were no to warehouse receipts be negotiable; are electronic warehouse receipts legally recognized; and must warehouse receipts contain information on security interests over the goods. These rankings suggest that supporting the Government to put in place Warehouse Receipt Legislation and regulations is a priority actionable reform to remove obstacles for farmers seeking to increase access to finance and grow their business.

To this effect, AGRA working with NESG and other stakeholders in Nigeria wishes to support analytical studies to:

  1. Map and assess the different types of storage asset in the country Consult and build consensus with key government institutions, the private sector and farmers’ on points of leverage for implementing a warehouse receipt system
  2. Assess the constraints that impede the functioning of a viable national warehouse system for Nigeria
  3. Review analysis and decisions that were taken in earlier stages of design Warehouse Receipts Bill and complementary bills (Nigeria Independent Warehouse Regulatory Agency (Establishment) and Commodities Exchange Bills and draw on these to inform driving the Bill through government decision-making and supporting implementation
  4.  Identify policy and regulatory systems reforms options towards implementation of a National Warehouse System for bankable Receipts
  5. Identify existing policy and regulatory instruments that will require institutional changes for effective operation of a National Warehouse System for bankable Receipts

2. Objectives of the Consultancy

The consultancy aims to identify the constraints that impede the development of a National Storage, Formal Trading and Financing Mechanisms for Agricultural Commodities in Nigeria. It will provide analytics and evidence to support policy and regulatory reforms and investments that will enable public and private sectors to develop a functional National commodities sector development master plan and a National Warehouse System for bankable Receipts in Nigeria. 

3. Scope of Work

The consultancy is structured as a review piece, focused on understanding the operating conditions, business models and bankability of Warehouses and Silos in Nigeria. The assessment will take place across the six (6) regions in Nigeria, focusing on highly tradable commodities and major trading clusters within the regions agreed upon with key stakeholders and AGRA. The result of the assessment will feed into the development of a National Agricultural Storage System for Nigeria including policy, legal and regulatory framework towards implementing the Commodities Exchange Masterplan developed by the Securities and Exchange Commission (SEC).

The selection criteria for the study locations will aim to ensure that at least in each region;

  1. Private and public storage assets are critically assessed, focusing on capacity, utilization, focus commodities and viability
  2. Trade flows in and out of the region, understanding timing, volume of supply and demand
  3. Financing structure and gaps for both storage infrastructure as well as working capital and structured commodity trade finance
  4. Opportunities for structured trading of commodities via commodity exchanges

4. The consultancy will include the following tasks:

  1. A clear mapping of the different types of storage asset in the country, their locations, capacity and conditions
  2. Estimating capacity for community, state, regional and national storage capacity and utilization rates
  3. A stakeholder mapping of all the roles and actors in the commodities subsector in Nigeria
  4. Mapping and assessment of the agricultural warehouse ecosystem in the country
  5. Multi-sectoral consultation to build consensus with key government institutions, the private sector and farmers’ on points of leverage for implementing a warehouse receipt system
  6. assessment of the constraints that impede the functioning of a viable national warehouse system for Nigeria
  7. Identify policy and regulatory systems reforms options towards implementation of a National Warehouse System for bankable Receipts (regulatory impact assessment)
  8. Identify and review existing policy and regulatory instruments that may require institutional changes for effective operation of a National Warehouse System for bankable Receipts (legal assessment)
  9. design  a National Warehouse Master Plan that will entail; a clear policy, legislative and regulatory direction and processes to bring them to implementation;

5. Deliverables

The consultancy will be expected to deliver, the following outputs:

  1. Submit inception report (including detailed work plan, proposed methodology) after contract is signed providing:
  2. Methodology for diagnostics, analytics and assessments , data collection, data sources, stakeholders’ analysis and initial list of stakeholders to be engaged and or consulted
  3. Submit four sets of consultancy report detailing:
    1. Mapping and assessment of the agricultural storage asset in the country, their locations, capacity, the general agricultural warehouse ecosystem in the country and the constraints that impede the functioning of a viable national commodities/warehouse system. 
    2. Regulatory impact assessment on policy and regulatory systems reforms options towards implementation of a National Warehouse System for bankable Receipts
    3. Legal assessment of the WRS bill and other instruments that may require legal and institutional changes for effective operation of a National Warehouse System for bankable Receipts
  4. Deliver a summary not more than 20pages on the sets of reports above and brief the AGRA country teams, relevant government agencies, private stakeholders, farmers’ organizations and civil society on findings.
  5. The consultant will receive detailed feedback on the draft summary reports and then refine the final report incorporating the feedback from AGRA and other partners
  6. Present the revised final report to AGRA and other stakeholders through a validation meeting.
  7. Submit final report capturing agreed inputs from validation meeting.

6. Competencies required:

  • A consultancy firm with strong demonstrated knowledge and experience of agriculture policy reform process, and credibility
  • Previous experience of conducting similar mapping, assessment, economic, legal, and regulatory impact assessment and Cost-Benefit Analyses
  • Strong understanding of commodities ecosystem in Nigeria and other African countries
  • Previous experience of having conducted similar work in the agricultural sector
  • Ability to simplify reports in easy to understand language
  • The Consultancy should take no more than three months.

7. Duration of the assignment:

8. Reporting arrangements: 

The consultant will report to the Country Manager, AGRA office, Nigeria and the Program officer Policy and Partnership throughout the engagement period.

10. Proposal Submission

This consultancy is open to consultancy firms with sound experience in the services outlined above. Interested consultancy firms are invited to submit a Technical Proposal and a Financial Proposal.

10.1 Technical Proposal

Interested and qualified consultants are invited to submit their proposal(s) comprising of the following elements:

  1. An understanding of the consultancy requirements
  2. Proposed methodology and work-plan for performing the assignment
  3. Project delivery plan with clear timelines
  4. Summary of key staff/team composition with resume(s) 
  5. Detailed reference list indicating the scope and magnitude of similar assignments
  6. Evidence of previous consultancies outlining experience of the firm/consultant (attach evidence of  minimum of two concrete samples of similar work done for other organizations)

10.2 Financial Proposal

FINANCIAL PROPOSAL must be provided in the prescribed format, RFP ANNEX B, supported with a breakdown analysis and will provide the following information, but is not limited to:

  1. Professional fees chargeable
  2. Breakdown of the fees and disbursements
  3. Must be submitted using the format provided, RFP Annex B: Financial Proposal
  4. Price must be quoted in US Dollars (USD)
  5. All applicable taxes (VAT and withholding taxes) shall be included. If the financial proposal is silent on taxes, AGRA shall assume that these are inclusive;
  6. Financial proposal shall be valid for a period of 90 days from the date of bid closure.
  7. Financial proposal shall be sent as a separate attachment and MUST be password protected.

11. Evaluation Criteria

  1. Experience in similar assignments and Organizational capacity: (30%)
  2. Proposed methodology and work plan for carrying out the assignment: (30%)
  3. Proposed Key personnel: (40%)
    • Share CVs of key staff
    • Share roles of key staff and staffing schedule
      Total: (100%)

12. Submission Requirements

  1. Technical proposal, detailed CV and Financial Proposals must be submitted separately to procurement@agra.org the deadline indicated in the synopsis.
  2. The subject of the email MUST read “RFP/0912/PA/2020”. AGRA shall not be liable for not opening proposals that are submitted with a different subject. 
  3. Technical and Financial proposals will need to be submitted as separate documents. Financial proposals will not be opened until the conclusion of the technical evaluation.
  4. Neither technical nor financial proposals should exceed 10MB.
  5. The financial proposal MUST be password protected. The password shall be requested from firms that meet the minimum technical score of 75%
  6. The Financial proposals shall include all applicable taxes quoted separately. If taxes are not mentioned in the financial proposal, AGRA shall consider that they are included in the prices provided.

 

ANNEX B: Financial Proposal Form FPF-2 Summary of Costs

ItemCost  
 
{Insert Foreign Currency # 1}USD valueTotal cost
Cost of the Financial Proposal, including   
(1) Remuneration   
(2) [Reimbursables]   
Total Cost of the Financial Proposal:     
Indirect Local Tax Estimates – to be discussed and finalized at the negotiations if the Contract is awarded
{insert type of tax. e.g., VAT or sales tax}     
{e.g., income tax on non-resident experts}     
{insert type of tax}   
Total Estimate for Indirect Local Tax:      

Note: Payments will be made in USD

Annex B2: Financial Proposal Form FPF-3 Breakdown of Remuneration  

When used for Lump-Sum contract assignment, information to be provided in this Form shall only be used to demonstrate the basis for the calculation of the Contract’s amount; to calculate applicable taxes at contract negotiations; and, if needed, to establish payments to the Consultant for possible additional services requested by the AGRA. This Form shall not be used as a basis for payments under Lump-Sum contracts

A. Remuneration                                          
No.NamePositionPerson-month Remuneration RateTime Input in Man-days{Currency)USDTotal USD cost
 Key Experts         
K-1  [Home]    
 [Field]    
K-2       
      
      
        
      
      
 Non-Key  Experts       
N-1  [Home]     
N-2[Field]  
           
    
    
    Total Costs    

Annex B3: Financial Proposal Form Fpf-4 Breakdown Of [Reimbursable Expenses]

When used for Lump-Sum contract assignment, information to be provided in this Form shall only be used to demonstrate the basis for calculation of the Contract amount, to calculate applicable taxes at contract negotiations and, if needed, to establish payments to the Consultant for possible additional services

Type of [Reimbursable Expenses]UnitUnit CostQuantity{Currency}Total value in USD
 {e.g., Per diem allowances**}{Day}    
 {e.g., International flights}{Ticket}    
 {e.g., In/out airport transportation}{Trip}    
 {e.g., Communication costs between Insert place and Insert place}     
 { e.g., reproduction of reports}     
 {e.g. consumables     
 ………………………………     
                                                               Total Costs