TERMS OF REFERENCE Consultancy Service

TERMS OF REFERENCE

Consultancy Service 

for

Feasibility/ Viability Assessment: Vegetable Market in Melamchi Municipality: 

KISAN II Project Overview

The USAID-funded Feed the Future Knowledge-based Integrated Sustainable Agriculture in Nepal (KISAN) II project operates in 25 districts within four provinces. By focusing on five commodities: vegetables, rice, maize, lentil, and goats, KISAN II is working to increase the resilience, inclusiveness, and sustainability of income growth through agriculture development. Through a private sector-led facilitative approach, KISAN II identifies and addresses constraints within key market systems to strengthen and improve agriculture markets, improve value chain efficiency, and manage unexpected shocks. The project contributes to the objectives of the Government of Nepal’s agriculture development strategy and the US Government’s Feed the Future Initiative. The KISAN II project has five specific components: 

• Improved productivity of selected agricultural market systems, 
• Strengthened competitiveness, resilience, and inclusiveness, of selected agricultural market systems, 
• Strengthened enabling environment of selected agricultural market systems, 
• Increased ability of vulnerable communities to act on business opportunities within selected market systems, and 
• Collaboration, learning and adaptation (CLA) applied to market systems development. 

KISAN II works in the following Zone of Influence (ZOI) 4 provinces and 25 districts given below:

• Bagmati Province: Makawanpur, Kavrepalanchowk, Sindhupalchowk, Nuwakot
• Lumbini Province: Kapilbastu, Palpa, Arghakhanchi, Gulmi, Dang, Banke, Bardiya, Pyuthan, Rolpa and Rukum (eastern part)
• Karnali Province: Dailekh, Surkhet, Jajarkot, Salyan, Rukum (western part)
• Sudur Paschim Province: Doti, Accham, Kailali, Kanchanpur, Dadeldhura, Baitadi

1.   Rationale and Approach of the Feasibility study 

Melamchi Municipality is located in the southwest part of Sindhupalchowk District in Province 3. It covers160.63 km2 plus 2.44 km2 in Shivapuri Nagarjun National Park. The municipality has 13 wards bounded to the north by Helambu Gaunpalika and Panchpokhari Thangpal Gaunpalika; East by Indrawati Gaunpalika and Panchpokhari Thangpal Gaunpalika; South by Kathmandu and Kavrepalanchok Districts; and West by Kathmandu and Nuwakot Districts. A total 52814 populations(20.43% of district’s population), higher population density (410 persons/km2), and higher population growth rate of 5.2% since 2011 (CBS, 2016). 

Agriculture is the main source of livelihoods in this municipality and the trend of agricultural growth has been tremendously increasing. Agriculture in this region is integrated, smallholder, subsistence type, and transferring towards semi-commercial scale. Major agricultural commodities grown in this area are cereals, seasonal and off seasonal vegetables, potato, cash crops, fruits, goats and dairy products, etc. Most of the agricultural products are locally collected by middle man in unstructured manner and sell out to the Melamchi bazar and in the distance markets such as Kavre, Bhaktapur, Kathmandu, and Lalitpur. Melamchi bazaar is the main market hub where the products are collected mainly from Melamchi, Helambu, and Indrawati Municipalities and surrounding areas in Sindhupalchowk district. 

Farmers in this area have been encountered constraints by lack of access to markets of their products due to lengthy and complicated marketing channel and small quantity of marketable surplus. There is higher marketing margin; the farm gate price is too low (sometimes below than the cost of production) and consumer price is too high. This situation eventually discourages farmers to engage in agriculture and food production. Local farmers and cooperatives, including existing and potential KISAN II grantees, engaged in vegetable and fruit farming, have identified the need of market collection center/ collection points within municipality.  In order to cater the marketing constraints of the farmers, this feasibility study for establishing market collection center has been carried out in Melamchi municipality.

2.   KISAN II Intervention

Melamchi is one of the market hub for the agricultural production along the Melamchi-Helambu corridor in Sindhupalchowk district. In the past, major vegetable/fruits are imported from Kathmandu, Dhulikhel and other production sites whereas it has been reversed that Melamchi is supplying vegetables and fruits towards the Kathmandu markets after KISAN II intervention. After working with 7 grantees (2 agrovet and 5 cooperatives) (Table 1) in Sindhupalchok, farmers have started growing commercial production with technical services rendered by grantee's technical staffs of the  KISAN II. The intervention of the KISAN II has empowered the technical staffs, farmers, market actors and even Palika representative for developing commercial agriculture and explored market opportunities.

Table 1. Details of KISAN II grantee

Existing and potential grantee cooperatives identified the need for market collection center in Melamchi bazar and collection points in different strategic places to sell their vegetable/ fruit products. They are expecting collectively establishing market collection center and collection points linked to the forward markets at Banepa, Koteswor, Kalimati and Lagankhel markets.In the meantime, Melamchi municipality also prioritized to establish such market collection center linking to the farmers in collaboration with development partners and concerned stakeholders.There is a possibility for municipality to developing an infrastructural development program, either of its own initiative, or in partnership with private sector /cooperatives and other stakeholders to establish feasible agricultural markets. 

Series of consultations being made of KISAN II team with Mayor, Deputy Mayor, and Municipality team, farming community, cooperatives and traders for establishing such market collection center and increase supply of the agricultural products in the distance markets. The KISAN II representatives emphasized marketing issues and constraints as well as the importance of creating infrastructural collection facilities, to serve as market hubs, which can facilitate easy access to farmers’ produces in local and regional markets. The local cooperatives, KISAN II team members, KISAN II grantees, and Palika representatives agreed to support for the feasibility study. Thus, as a part of building capacity of local government agencies to improve investments in support of market system development (Activity 3.4.1.2), KISAN II will assist Palika in undertaking a feasibility study to establish and operate new market collection center for fresh vegetables/fruits produced within the vicinity of Melamchi Municipality. 

3.   Objectives of the Feasibility Study 

The overall objective of the proposed feasibility study is to analyze the feasibility for establishing and operating new market collection center in the Melamchi bazar and collection points nearby production areas within and around Melamchi Municipality to ensure access to market of farmers’ products. The specific objectives of the study are:

1. Analyze the agricultural production trends (vegetable, fruits, cash crops, potato, etc.), marketable surplus and predict the prospect of expansion of production areas and quantity of production within the vicinity of Melamchi Municipality and surrounding areas.
2. Assess the situation of existing collection centers and identification of potential sites for establishing new market collection centers in Melamchi Bazaar, and collection points nearby production areas.
3. Analyze the prospect of establishing market linkages/outlets in Kathmandu, Banepa, Dhulikhel, Bhaktapur, and Lalitpur.

4.    Methodology of the Study

The proposal should clearly include the methodology how the study will be carried out, including data collection methods (survey, focus group discussion, etc.) and tools and methods of data analysis. The structure of the study report should be summary of the report, background/introduction, constraints and challenges related to study, methodology, results and discussions, and recommendations. The reference style should be consistent with APA style.

5.   Specific tasks to be considered in the Feasibility Study

• Estimate the current situation of agricultural products (mainly vegetable, fruits and other cash crops), marketable surplus and supply in local and distance markets.
• Assess the constraints, challenges and opportunity, and recommendations to establish market collection center.
• Suggest type and size of market collection center, market facilities needed in the proposed location.
• Specify desirable market characteristics, including physical, traffic, environmental/solid waste, supply and demand prospects, socials aspects, and support needed from local society.
• Assess the marketing practices/ system, marketing channel and mapping out local and distance markets, traders, middlemen, transporters, and different marketing intermediaries.
• Identify socio-cultural and environmental issues, risks, or problems that may need to be addressed.
• Suggest the design, estimation and institutional arrangements or operation of the market collection center. 
• Identify potential stakeholders and investors such as municipalities, traders, banks, other private companies, cooperatives and individual investors to contribute in public- private partnership (PPP) model.
• Recommend a legal framework including new market regulations and support services (including accessibility to transportation, security, banking, vehicle parking, packhouse operation, etc.).
• Assess the potential expansion of production areas, forecast the production quantity and prospects of fostering agribusiness enterprises after establishing the market center.
• Suggest user-friendly functional MIS linkages using ICT via modern means, such as internet, cell phones, FM radios, etc.
• Suggestions for future market expansion and the prospect of establishing market linkages with bigger regional or terminal markets.

6.   Reporting Modality

The consultant reports to Enabling Environment Director KISAN II and will prepare a report based on the feasibility study in three stages: 

In first stage, the consultant will implement a field survey and conduct consultation meetings with stakeholders to generate the information required for the specific tasks. The consultant will share preliminary findings in a consultative review meeting with the Municipal authority (Mayor, Deputy Mayor, and other officials) and with other key stakeholders /potential partners, who will then agree on options and interim recommendations based on location, size of market, potential resource mobilization, possibility of public private partnership (PPP), and legal/administrative requirements. 

In the second stage,the consultant will prepare a ‘pre-feasibility’ study report based on in-depth analysis and recommendations agreed in the first stage and submit to KISAN II for getting feedback.

In the third stage, the consultant will submit a final report of the market feasibility study incorporating necessary suggestions from all the stakeholders including municipality and KISAN II on establishing and operating modality of the market collection center. 

7.    Requirements on qualifications and Experience of the Consultant

The consultant should be a Nepali Citizen, have at least a Master’s degree (preferred PhD degree) in agricultural economics or business management, along with 10+ years’ experience in agricultural market development activities, as well as prior experience preparing feasibility studies for agricultural markets. 

8.   Level of Effort of Consultant

The proposed level of effort (LOE) for this consultancy is 45 days, inclusive of approximately 15 days of field works (survey, meetings, etc.)in and around Melamchi Municipality (the production and market catchment areas). KISAN II will make available assistance to the Consultant in field data/information collection.

9.   Time schedule for the Assignment

The proposed timeline for this consultancy is for 3 months period with 45 days LOE. Consultant is expected/allowed to work maximum 6 days a week. For official travel and stay (means of transportation, lodging, per diem) will be applicable/paid as per KISAN II norms in addition to daily rate.

10.   Selection Criteria and Weightage 

Consultant will be selected based on the following weightage value of Technical and Financial point.

11.   Deliverables and timelines:

The consultant will prepare and submit the following deliverables: 

1. Submit an inception report (pre-feasibility study report) consisting of complete research methodology including questionnaire, action plan and milestone setting of the activities of the study to KISAN II for getting feedbacks and suggestions.
2. Submit a first draft report to KISAN II and give a presentation for getting feedbacks, comments and suggestions.
3. Submit a final report to KISAN II adjusting comments and suggestions.

Applicants should submit:

• Application letter and stating why you are suitable for the assignment including relevant experience
• Short proposal on methodology of the study
• Updated CV
• Propose daily rate along with copy of contract/agreement, or other proof of two latest assignments
• PAN registration certificate (copy of VAT certificate is must if the total consultancy value exceeds or equal to NRs. 500,000

Disclaimer:

Issuance of this notice does not obligate Winrock International to award a Consultancy Service, nor will Winrock International pay any costs associated with the preparation or submission of application.  Furthermore, Winrock International reserves the right to reject any and all applications, if such action is considered to be in the best interest of Winrock International.  The consultancy service is contingent upon donor approval.

How to Apply:

Interested candidates can post the required documents eoi.KISAN@winrock.org within February 7, 2021. Applicants should reference Consultant-Vegetable Market in Melamchi Municipality in the subject line. Applications received after the stipulated date will not be entertained.