Tender on Preparation of Business Plans
 
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Ad title: Tender on Preparation of Business Plans
Provided by: IFAD
Published: Dec 4 / Updated: Dec 7 / Deadline: Dec 18
International Fund for Agricultural Development (IFAD) funded The Agriculture Modernization, Market Access and Resilience Project (AMMAR) invites experienced companies to express interest for the following assignment:

Technical Assistance Services on Business Plans development for fund obtaining under the DANIDA Programme - Inclusive Growth and Employment for Young Entrepreneurs in Georgia.

Apart from the strategic alignment with the Georgian government`s priorities, Denmark`s support is integrated into a larger programme (AMMAR) implemented by the Georgian Ministry of Agriculture (MoA) and International Fund for Agricultural Development (IFAD). The overall development objective of the larger programme is to create sustainable increase in incomes and to reduce poverty for men and women in rural Georgia. The programme is organised in two components: (1) irrigation and agricultural value chain investments, and (2) climate smart agricultural and value chain development. The Danish support described in the following, falls under both components and is integrated into the overall programme (DANIDA Grant Programme) in terms of implementation, management and reporting.

The Danish support targets the youth with the overall aim to increase sustainable private led rural growth for targeted young talent in Georgia and the specific objective is to promote rural economic growth and reduce poverty by improving access to financial services, capacity development and entrepreneurship mentoring for rural youth. This will lead to creation of additional jobs in the rural areas in total estimated 800-1000 permanent jobs created. The project will target young emerging talent (male up to 35 years and female up to 40 years old), of which at least 30 percent will be female. The programme will seek to increase the incentives available to retain this crucial segment of the population through a carefully composed package of credits, grants and advisory services, and links to the private sector, which combined can reverse the trend of increased rural poverty, widening of regional disparities and emigration.

The Programme is implemented by the IFAD funded AMMAR Project Implementation Unit in the Ministry of Agriculture. The grant facility will be administered by Agriculture Project Management Agency (APMA). The Programme will provide support through the following key steps in the promotion of rural youth entrepreneurship and talent retention:

** Step I - Pre-financing support which will include information dissemination to attract young rural talent to the scheme, thus ensuring that the most impact in terms of income and job generation is achieved. Subsequently, potential applicants will receive pre-financing training aimed at filling any potential business gaps along with the formulation of their business idea.
** Step II - Finance and business launch facilitation which will focus on assisting applications in developing realistic and fundable business plans, which comply with both the banks` and the programmes` requirements. The Danish support will provide matching grant that constitute 40 percent of the investment cost up to app. GEL 67,000 (USD 25,000). The grants will be given to successful applicants who have secured private sources or a credit from a bank that constitutes 60 percent of the investment.
** Step III - Post-financing support and impact evaluation, will mostly consist in business coaching for successful applicants, including follow up on the businesses financed and support on the actual implementation of the business plan, and dedicated assistance to those who face particular challenges thus ensuring higher success and repayment rates. Moreover, specific efforts will be made to evidence the impact made in terms of incomes, employment and rural poverty reduction.

Now AMMAR project is seeking up to 10 Service Providers (here and after "Consultants") to provide support for Step II - Finance and business launch facilitation - to prepare Business Plan - for grant applicants (programme beneficiaries). Geographically the area of services covers all regions throughout Georgia.

Each Consultant shall cover at least 90 business plans preparation per year. The total estimated number of business plans to be prepared for the AMMAR project in frames of DANIDA Grant Programme is 900. Consultant(s) can apply for 90 or more business plans up to 900 per year according to the capacity and proven ability of the firm to mobilize sufficient number of key experts. The Expression of Interest shall clearly specify the numbers of business plans that Consultant is able to prepare.

Scope of work and tasks of the assignment:

While preparing the business plans, each Consultant provides the assistance to applicants as described in the respective Terms of Reference (TOR):

Business plans preparation:

** In close collaboration with the Beneficiary, the Consultant shall develop a business idea proposed by a potential beneficiary into a project and prepare a business plan for obtaining co-financing;
** A Business Plan shall be prepared based on the template provided in Annex No1 of the ToR;;
** A Business Plan shall include all the issues specified in Annex No1 of the ToR;;
** The calculations and coefficients in the financial statements provided in the template of a Business Plan should be accurate and justified. The methods of justification are stipulated in Annex No1 of the ToR;;
** The business risks, including financial risks, shall be assessed (including the potential needs for additional funds);
** The Consultant shall prepare each Business Plan within 14 working days after the receipt of an application for a business plan preparation (if the Consultant cannot prepare a Business Plan in the specified time period, they shall give the Employer a five-day notice in writing).
** The Consultant shall engage an industry expert in the development of the technological part of a Business Plan (detailed description of the operating processes) if the sphere of the project is processing industry and the total investment cost exceeds GEL 25,000.00.
** The Consultant shall visit the project site
** The Consultant shall inform a potential beneficiary of the business failure and financial risks of the project (including the need for additional financing in order to implement the project). The Consultant shall document the fact of informing a beneficiary. Such a document signed by a beneficiary shall describe all the risks and a beneficiary`s willingness to take them.
** The Consultant shall be responsible for the quality of a Business Plan (the quality assessment is based on the compliance with the template provide din Annex No1 of the ToR;).

If APMA does not approve the business plan:

** Consultant informs the grant applicant, and helps him/her to address key issues that prevented grant approval (e.g. project too ambitious, market not ascertained, lack of administration skills, etc.)
** Consultant continues delivering coaching for a maximum three months that may (or may not) result in the development of a new business plan and grant application.

Please find Annex 1 in the ToR at: https://www.dropbox.com/s/p29e30oiytt41mw/Business%20Plans%20Preparation_ToR%20_as%20issued.docx?dl=0

Reporting Obligations and Payment:

** Consultant is expected to submit the business plans 3 times per month (10th, 20th and the last work day of the month, if the mentioned date is not working day, the business plan should be submitted on next working day )
** On the fifth of every month, the Consultant shall provide the AMMAR with a summary report of the previous calendar month and a quarterly progress report of the project, specifying the number of the prepared business plans, and their costs as well as the number of business plans under preparation;
** The Consultant shall receive its due payment on monthly basis, according to the number of prepared (standard relevant) business plan and upon the submission of above referred (part III / section B) monthly reports.

Key outputs:

** Totally at least 1200 applications will be reviewed
** Totally at least 900 business plans for potential beneficiaries will be developed
** One Consultant is expected to deliver at least 90 business plans.

Organizational Qualification Requirements:

Consultant shall meet the following criteria:

** At least 3 years of experience in preparation of business plans for the development of small and medium size enterprises in different sectors, with a focus on agricultural/agro-processing business in rural areas
** The ability to mobilize sufficient number of qualified financial, marketing as well as qualified technical experts in different sectors (in case they are needed) is a pre-requisite to prepare at least 7-8 small size business plans per month. The database of experts shall be provided;
** Intensive experience in training activities concerning the development of rural businesses of economic agents / small and medium enterprises in rural areas;
** The reference letters from respective clients shall be provided as well as follow up analysis on the implementation and outcomes of business plans prepared during the previous 3 years.

Qualification Requirements for key staff experts:

Consultant shall propose the CVs of experts available to be involved in the project during the coming 1 year for preparation business plans for young entrepreneurs in rural area. For the minimum quantity, which is 90 Business Plans per year, the working group shall include 3-4 Team Leaders; 7-8 Marketing Specialists; 7-8 Financial Specialists and several sector experts from the possible areas, who will be actively involved in preparation of business plans and whose latest filed knowledge will be shared with young entrepreneurs.

Team Leader shall have:

** At least 5 years of professional experience in leading of working groups for preparation of business plans for small and medium scale businesses, preferably in rural area.
** Expert shall have training skills to share knowledge of business plans preparation with the young entrepreneurs.

Marketing Specialists shall have:

** At least 5 years of experience on the position of Marketing Expert in preparation of business plans;
** Experience in conducting of Market researches and market analysis;
** Expert shall have training skills to share knowledge of business plans preparation with the young entrepreneurs.

Financial Specialists shall have:

** At least 5 years of experience on the position of Financial Expert in preparation of business plans;
** Experience in preparation of financial statements and future financial forecasts and analysis, calculation of financial profitability of a project, return on investment analysis; calculation of investment and working capital needed for the project.
** Expert shall have training skills to share knowledge of business plans preparation with the young entrepreneurs.

Sector Experts shall have: At least of 10 years of professional experience in sector on the respective position.

It should be an asset if consultant have working experience as a team previous projects.

Expressions of Interest with supported information shall be submitted to the address below. The Consultant will be selected using procedures set for Selection based on the Consultants` Qualification (CQS) method by IFAD Procurement Handbook (issued on 19th of August, 2010).

Interested companies must provide information verifying that they are qualified to perform the services and meet minimum required experience criteria.

Submitted information shall include:

** Company profile;
** Track records of carrying out of similar assignments;
** The database of experts shall be provided (If Consultant express interest for the minimum quantity, which is 90 Business Plans per year, the working group shall include at least CVs of 3-4 Team Leaders; 7-8 Marketing Specialists; 7-8 Financial Specialists and several sector experts from the possible areas, who will be actively involved in preparation of business plans and whose latest filed knowledge will be shared with young entrepreneurs. For more quantity of Business Plans the team capacity shall be increased proportionally).

Expressions of interest can be delivered electronically to the address below not later than December 18, 2017, 12:00.

Interested companies may obtain detailed information on the assignment at the address below from 12:00 - 16:00 (local time).

Ministry of Agriculture of Georgia
6 Marshal Gelovani Ave., Tbilisi 0159, Georgia
Tel/Fax: +995-32-237-80-38
Contact person: Ms. Ketevan Sharabidze, Value Chain Coordinator
E-mail: Ketevan.Sharabidze@moa.gov.ge
CC: Nana.Kupunia@moa.gov.ge
 
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