Terms of Reference (ToR) - Cost-Benefit Analysis (CBA) of Nature-Based Solutions (NbS) Interventions under DCA-Funded Projects

Terms of Reference (ToR)

Cost-Benefit Analysis (CBA) of Nature-Based Solutions (NbS) Interventions under DCA-Funded Projects

1. Background

DanChurchAid (DCA), through its partners ISET-Nepal, NNSWA, and Action Nepal, has been implementing Nature-based Solutions (NbS) interventions under the NEXUS Project in Changunarayan Municipality (Bhaktapur), SUDRIDH Project in Bhimdatt and Dodhara Chandani Municipalities (Kanchanpur), and Promoting DRR Initiatives in most vulnerable communities in Dhading District. These interventions aim to strengthen climate resilience, ecosystem services, biodiversity conservation, and community livelihoods.

To generate evidence on the effectiveness and value of these investments, ISET-Nepal, in collaboration with NNSWA and Action Nepal, seeks to undertake a joint Cost-Benefit Analysis (CBA) of selected NbS interventions implemented across the project areas.

2. Objectives

The study aims to:

• Develop criteria and indicators for assessing the cost-benefit and cost-effectiveness of NbS interventions.
• Assess the economic, social, environmental, and resilience benefits of NbS investments.
• Compare NbS interventions with conventional grey infrastructure alternatives where applicable.
• Generate evidence and recommendations for scaling and replication of effective NbS approaches.
• Produce a comprehensive analytical report and policy brief.

3. Scope of Work

The consultant/team will:

• Review project documents, relevant policies, and literature.
• Design and apply appropriate CBA and cost-effectiveness assessment methodologies.
• Assess selected NbS interventions, including: Conduct field visits, stakeholder consultations, and data collection in all project locations.
• Calculate key economic indicators such as NPV, IRR, BCR, and cost-effectiveness measures.
• Assess adaptation and resilience benefits of interventions.
• Prepare a final report and journal manuscript.

4. Methodology

The consultant shall adopt a mixed-method approach combining:

• Desk review and secondary data analysis.
• Field verification and technical assessment of interventions.
• Household surveys, FGDs, and key informant interviews.
• Participatory consultations with communities and local governments.
• Cost-benefit and cost-effectiveness analysis, including sensitivity analysis where appropriate.

5. Deliverables

• Inception Report and Work Plan.
• Data Collection and Analysis Summary.
• Draft CBA Report.
• Final Report with recommendations.
• Draft Manuscript of policy brief for publication.

6. Timeframe

The assignment is expected to be completed within 8–10 weeks from the date of contract signing.

7. Coordination and Cost Sharing

The assignment will be jointly managed by ISET-Nepal, NNSWA, and Action Nepal. A joint technical review committee will provide guidance throughout the assignment.

The consultancy costs will be shared jointly by the NEXUS, SUDRIDH, and Promoting DRR Initiatives in most vulnerable communities in Dhading, based on a mutually agreed cost-sharing arrangement among the partners.

8. Consultant Qualification

The consultant/team should have demonstrated experience in:

• Environmental and natural resource economics.
• Cost-benefit and cost-effectiveness analysis.
• Climate change adaptation and resilience.
• Nature-based Solutions (NbS).
• Socio-economic and environmental assessments in Nepal.

9. Proposal Submission

Interested firms/consultants are requested to submit:

• Technical Proposal
• Financial Proposal
• Company Profile and Relevant Experience
• CVs of Proposed Team Members
• Required legal and tax registration documents

Lead Organization: ISET-Nepal

Collaborating Organizations: NNSWA and Action Nepal

Funding: Jointly financed by DCA-funded NEXUS, SUDRIDH, and Promoting DRR Initiatives in the most vulnerable communities in Dhading District projects.

Links: 

Proposal Submission Form

RFP-NBS

Applicants are required to carefully review the attached documents: the RFQ Sheet and the Proposal Submission Form.

• The Proposal Submission Form must be fully completed, and applicants must sign on each page.
• The RFQ Sheet must be reviewed and signed (signature only required).