National Consultant to support MSMEs in business plan development and financing, with particular emphasis on innovative funding sources and mechanisms
I. BACKGROUND / PROJECT DESCRIPTION
The ongoing conflict in eastern Ukraine has had a direct and highly negative impact on economy, social cohesion, resilience, livelihoods, community security, and the rule of law. Recognizing the need to urgently address reconstruction, economic recovery and peacebuilding needs in areas affected both directly and indirectly by the conflict, in late 2014 the Government of Ukraine requested technical assistance and financial support from the international community to assess priority recovery needs. In late 2014, the United Nations (UN), the World Bank (WB) and the European Union (EU) conducted a Recovery and Peacebuilding Assessment, which was endorsed by the Cabinet of Ministers in mid-2015.
The United Nations Development Programme (UNDP) has been active and present in eastern Ukraine for the past decade, prior to the conflict, with a focus on community development, civil society development, and environmental protection. Work on addressing the specific conflict-related development challenges discussed above built on this earlier engagement, established partnerships, and started in 2015 through the United Nations Recovery and Peacebuilding Programme (UN RPP). The UN RPP is a multi-donor funded framework programme formulated and led by the UNDP in collaboration with the Government of Ukraine and in cooperation with a number of partnering UN agencies (UN Women, FAO, UNFPA).
The RPP was designed to respond to, and mitigate, the causes and effects of the conflict. It is based on findings of the Recovery and Peacebuilding Assessment (RPA) and is aligned to the State Target Programme for Recovery as well as to the two oblast development strategies up to 2020. It takes into account the opportunities that have arisen from the Minsk Protocol of September 2014 and the renewal of its cease-fire provisions (the latest cease-fire having been agreed in March 2018) and is also fully adjusted to the humanitarian-development nexus. It is an integral component of the UNDP Country Programme and is therefore fully aligned with the United Nations Partnership Framework (UNPF). It is closely interlinked with the Democratic Governance and Reform Programme, operating nationally and in all of Ukraine’s regions, and is consistent with the SDGs.
The Programme’s interventions are grouped under the following key Programme components, which reflect the region’s priority needs:
Component 1: Economic Recovery and Restoration of Critical Infrastructure
Component 2: Local Governance and Decentralization Reform
Component 3: Community Security and Social Cohesion.
The Programme, which operates on the basis of a pooled funding arrangement, follows a multi-sectoral programme-based approach and is implemented using an area-based methodology. It empoyes a concerted interventions framework for 13 projects funded by 13 international partners to the value in excess of USD 80 million (2019-2022).
In October 2018, four UN agencies (UNDP, UN Women, FAO and the UNFPA) have countersigned a new joint project document, funded by the EU. The overall objective of the project is to restore effective governance, support economic recovery and promote reconciliation in the crisis-affected communities of Donetsk, Luhansk and Zaporizhzhia oblasts in Ukraine, thereby enhancing the credibility and legitimacy of local governments in the government-controlled areas of the regions. It will contribute to peace build and prevent further escalation of conflict in Ukraine through effective and accountable decentralization, gender-responsive recovery planning and equal access to services, as well as enhanced economic recovery and development.
This endeavor will be achieved through the pursuit of the following specific objectives:
- Enhancing local capacity for gender-responsive decentralization and administrative reforms to improve governance, local development and the delivery of services.
- Stimulating employment and economic growth by providing assistance to Micro, Small and Medium Enterprise (MSME) development through demand-driven business development services and professional skills training.
- Enhancing social cohesion and reconciliation through promotion of civic initiatives.
- Supporting sector reforms and structural adjustments in health, education and critical public infrastructure to mitigate direct impacts of the conflict and enhance the capacity of governmental authorities for national the coordination of actions to cope with emergencies arising from the conflict zone.
- Supporting the implementation of the European Investment Bank’s Early Recovery Programme.
Under objective 2, the Programme aims to foster economic revitalization in eastern Ukraine and, specifically, stimulate employment and economic growth by providing assistance to Micro, Small and Medium Enterprises (MSMEs) development. The Programme supports demand-driven business development services, professional business skills training and strengthening institutional and educational infrastructure for the effective functioning of the regional economy. Due to the conflict, lending, leasing and providing other forms of credit have been limited. Thus, business owners have difficultly in accessing finance and, subsequently, markets in accross Ukraine and beyond, and expand their businesses. In order to achieve inclusive economic growth sustainable state support and the financial sector programmes for MSMEs in the priority sectors of the value chains are necessary. These sectors have already been identified in most areas of Luhansk and Donetsk (Government-Controlled Areas, hereinafter - GCAs) oblasts as well as in the areas of Donetsk and Zaporizhzhia oblasts along the Azov sea coastline, and now those identified value chains need development strategies for further interventions
In line with existing conflict, the COVID-19 pandemic and subsequent lockdown has impacted the socio-economic situation both on the regional and national levels. The crisis especially affects MSMEs that have significantly lower reserves and are less resilient than large businesses. Thus, in order to continue lending its support for the purpose of economic revitalization, UN RPP is seeking a National Consultant to support MSMEs in business plan development and financing, with particular emphasis on innovative funding sources and mechanisms (hereinafter – the Consultant) in government-controlled areas of Luhansk, Donetsk and Zaporizhzhia oblasts (hereinafter - the targeted regions).
Duties and Responsibilities
II. MAIN OBJECTIVES OF THE ASSIGNMENT
The main objective of the assignment is to support MSMEs from the targeted value chains in business plan development and business financing, including from alternative sources and using innovative mechanisms. The Consultant is expected to conduct a series of training sessions in business plan development and share the knowledge on innovative sources of financing.
The area of implementation covers three sub-regions: Luhansk, Donetsk and Zaporizhzhia oblast:
- Donetsk oblast - all rayons of GCA;
- Luhansk oblast - all rayons of GCA;
- Zaporizhzhia oblast (selected districts and cities): Berdiansk, Prymorsk, Pryazovia, Orikhiv, Guliaipole, Yakymivka and Bilmak rayons, the towns of Malitopol and Tokmak and Zaporizhzhia city.
The targeted value chains that fall under the assignment are listed below:
- Industry and Engineering Services
- Textiles and Clothing
- Food Processing
- Dairy and Beef
- Poultry and Eggs
- Grain and Oilseeds
- Fruits and Vegetables
III. DESCRIPTION OF RESPONSIBILITIES / SCOPE OF WORK
Under the direct supervision of Programme Coordinator, Economic Recovery and Restoration of Critical Infrastructure, the Consultant will be responsible for the implementation of the following tasks:
Initial stage (Output 1):
- Develop a detailed work plan, methodology to support MSMEs in business plan creation and searching of alternative funds, and agree with the direct supervisor. The influence of COVID-19 outbreak should be taken into consideration during developing the work plan and methodology;
- With referral to the Programme’s document provided by UN RPP (Assessment of business environment and market conditions resulted from COVID-19 pandemic in Donetsk, Luhansk, and Zaporizhzhia oblasts; Market analysis of prioritized value chains, including a detailed mapping of market stakeholders in Luhansk, Donetsk and Zaporizhzhia oblasts; assessment of National lead expert on clusters/groups/associations creation, etc.) to analyse MSMEs sector, current market trends, government market regulatory and control mechanisms within targeted value chains; analyze the resources and capacities of MSMEs within each of the target value chains to access services, credit, information and resources to develop and expand their activities; determine their gaps and needs within each of the targeted value chains;
- During the preparatory stage, the quarantine restrictions caused by the COVID-19 pandemic should be considered. The Consultant is required to establish the online channels for communication with the MSMEs in the forms of online webinars. All communication channels should be approved by UN RPP;
- Based on the collected data, develop the Inception report on the tasks to be fulfilled. The document should follow the next requirements: single spacing, Noto Sans, size 11, Ukrainian and English languages.
Coaching stage (Output 2):
- Develop an agenda for the training sessions on business plan development and innovative financing for MSMEs from the targeted value chains;
- Business plan development:
- Present and review the business plan templates, discuss the specificity of data entering and idea presenting;
- Review the narrative part of the business plan, duscuss how to deliver and “sell” the main idea;
- Review the financial part of the business plan, discuss the main points of data entering and specificity of financial calculations, review how to make a cash forecast, identify the problematic periods and breakeven point, etc.;
- Discuss the importance of pitch, explain how to prepare the pitch, etc.;
- Review the FAQs with regards to business plan presentations, discuss how to prepare yourself for ponential questions, etc.
b) Access to alternative funds:
- Review the financial and nonfinancial needs of MSMEs;
- Discuss the existing opportunities at the regional and national level for the MSMEs from each of the targeted value chains;
- Analyse the government and other support mechanisms and primary providers of financial services to MSMEs (micro-financing institutions, banks, equity funds etc.) in the target region and illustrate how the MSMEs can be linked with them for further cooperation and development;
- Review the international entrepreneurship and business support programmes on knowledge exchange and investments attraction to the business;
- Discuss the types of alternative and innovating financing which exists in Ukraine: angel investors, venture capital, social impact investment, crowdfunding, etc.; discuss their tendencies and growth;
- Develop a series of recommendations for MSMEs from targeted value chains on how to analyze the macroeconomic environment, demand and supply analysis, and how to identify the financial gaps in the business;
- Provide a series of recommendations on how to mitigate the potential risks and threats that can affect the business in current market conditions, including, in the context of COVID-19.
- Deliver the trainings on business plan development and innovative financing to the groups of MSMEs from each value chain (at least 3 (three) half a day sessions in each oblast via online channels of communication). The list of participants should be agreed with UN RPP;
- Develop one handbook on business plan development and innovative financing for MSMEs. The handbook should be developed in the Ukrainian language. The requirements to the handbook: up to 50 pages without annexes, A4 format, single spacing, Noto Sans font, size 11, pdf format. The handbook should be developed in doc/docx and pdf formats.
- Develop and submit the Final report that will include the agenda, statistics on the participants, lessons learnt from the discussions, reference to the handbook developed, etc. Requirements to the document: single spacing, Noto Sans, size 11, Ukrainian and English languages, up to 30 pages each.
Presentation of the results (Output 3):
- Based on the Final report, prepare MS PowerPoint Presentation (at least 20 slides each, Ukrainian and English languages, the presentation should include: background information, key points, description of the deliverables, lessons learnt, etc.);
- Conduct at least one half a day presentation session of results in one of the targeted regions (the location and mode are to be determined), facilitate discussions on the results achieved, and present the developed recommendations. Costs of conference services related to the arrangement of presentations will be covered by UN RPP.
- If applicale, incorporate all comments and recommendations received as a result of discussions, finalize and submit the Final report to UN RPP.
IV. DELIVERABLES AND IMPLEMENTATION SCHEDULE
A detailed work plan and methodology to deliver the trainings on business plan development and financing (incl. innovative sources and mechanisms) are designed and agreed with UN RPP.
Inception report is developed and approved by UN RPP.
Within 15 calendar days after the start of the assignment
At least 3 (three) training sessions on business plan development and financing for MSMEs from the targeted value chains have been conducted in each oblast.
A handbook on business plan development and financing for MSMEs is developed and approved by UN RPP.
Within 60 calendar days after the start of the assignment
Final report and MS PowerPoint Presentation have been developed and presented in the location determined by UN RPP.
Final report has been adjusted according to UN RPP’s requests.
Within 90 calendar days after the start of assignment
V. PROPOSED PAYMENT SCHEDULE
UN RPP will pay the negotated amount in 2 tranches as per delivery of the outputs outlined above.
The payments will be paid upon the full completion and acceptance of contractual obligations whereupon the Programme Coordinator signs the certification of acceptance.
50% of total contract amount upon completion of Deliverable 1 and 2
50 % of total contract amount upon completion of Deliverable 3
VI. MONITORING / REPORTING REQUIREMENTS
The Consultant will work under the overall guidance Programme Coordinator, Economic Recovery and Restoration of Critical Infrastructure of the Recovery and Peacebuilding Programme. The Consultant will directly report to the Programme Coordinator on a monthly basis through in-person meetings/by phone or Zoom, or sending electronic materials.
The Consultant should adhere to the system of monitoring, evaluation and quality control implemented by the UNDP and provide the necessary information, reports and statistics according to the preset schedule or as soon as possible (within a reasonable time).
Weekly operational email reports on the current stage of implementation should be submitted to UN RPP. The issues faced during the implementation process are also required to be raised.
UN RPP has the right to request brief reports on the progress of the assignment during any stage of implementation.
VII. EXPERIENCE AND QUALIFICATIONS REQUIREMENTS
- Education: at least Master’s or equivalent degree in Business Administration, Management, Economics or related fields;
- Experience: at least 5 (five) years of professional experience in fundraising, strategy design and optimization of private sector entities, etc.;
- Experience in conducting training sessions (reference to at least 2 (two) video-records or other open source materials provided);
- Experience in producing of handbooks or other knowledge materials (reference to at least 1 (one) handbook or other knowledge materials published);
- Language proficiency: excellent knowledge of Ukrainian and Russian, at least working knowledge of English.
VIII. DOCUMENTS TO BE INCLUDED WHEN SUBMITTING THE PROPOSALS
Applicants shall submit the following documents:
- Professional CV, including information about past experience in similar projects / assignments.
- Financial proposal using the UN RPP template (according to defined deliverables);
- References justifying experience in conducting training sessions (references to at least 2 (two) open sources) – to be specified in CV;
- References justifying experience in producing of handbooks or other knowledge materials (references to at least 1 (one) open source) - to be specified in CV;
- Reference letters from previous employers and/or customers (at least 2 (two) letters).
IX. FINANCIAL PROPOSAL
Lump sum contract
The financial proposal shall specify a total lump sum amount, and payment terms around specific and measurable (qualitative and quantitative) deliverables (i.e. whether payments fall in installments or upon completion of the entire contract). Payments are based upon delivery of the services specified in the TOR. In order to assist the requesting unit in the comparison of financial proposals, the financial proposal will include a breakdown of this lump sum amount.
The Consultant will be responsible for all personal administrative expenses associated with undertaking this assignment including office accommodation, printing, stationary, telephone and electronic communications, and report copies incurred in this assignment.
All envisaged travel costs must be included in the financial proposal. This includes all travel to join duty station/repatriation travel. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the IC wish to travel on a higher class he/she should do so using their own resources.
In the case of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and Individual Consultant, prior to travel and will be reimbursed. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the Consultant wish to travel on a higher class he/she should do so using their own resources.
Required Skills and Experience
X. EVALUATION CRITERIA
UNDP will use a two-stage procedure for evaluating applications with the evaluation of the technical proposal being completed prior to any price proposals are compared. The technical part will be evaluated on the basis of its relevance to the Terms of Reference.
The breakdown scores for qualifications and experience are as follows:
- Educational background – 10 points max [10 pts – PhD degree or higher; 5 pts – Master’s degree or equivalent];
- Professional experience in fundraising, strategy design and optimization of private sector entities, etc. - 20 points max [20 pts – 6 or more years; 15 pts – 5 years];
- Relevant professional experience in conducting training sessions - 20 points max [20 pts – 3 (three) and more video-records or other open source materials provided; 15 pts – 2 (two) video-records or other open source materials provided];
- Relevant professional experience in producing of handbooks or other knowledge materials – 15 points max [15pts – 2 (two) and more references on handbook or other knowledge materials in open sources; 10 pts – 1 (one) reference on handbook or other knowledge material in open sources];
- Language proficiency – 5 points max [5 pts – fluency in Ukrainian, Russian and English; 4 pts – fluency in Ukrainian and Russian, working level of English].
Contract award shall be made to the incumbent whose offer has been evaluated and determined as:
a) responsive/compliant/acceptable, and
b) having received the cumulative highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.
* Technical Criteria weight: 70%
* Financial Criteria weight: 30%
Only candidates meeting the minimum requirements and obtaining a minimum 70% from the maximum available technical score (49 points) would be considered for the Financial Evaluation.
The maximum number of points assigned to the financial proposal is allocated to the lowest price proposal and will equal to 30. All other price proposals will be evaluated and assigned points, as per below formula:
30 points [max points available for financial part] x [lowest of all evaluated offered prices among responsive offers] / [evaluated price].
The proposal obtaining the overall cumulatively highest score after adding the score of the technical proposal and the financial proposal will be considered as the most compliant offer and will be awarded a contract.
1. UNDP documents templates are available at the following the link: https://www.dropbox.com/sh/506vw4976ka77jy/AABF10LJ-JEqb843fiCK7btSa?dl=0
2. Online system does not recognise Russian or Ukrainian language, information you provide in on-line application should be in English
3. Online system allows to upload only 1 (one) file. Please combine all the files in one and then upload