Terms of Reference (TOR) for Consulting Service to Prepare DPR of Boutique Dairy Plant in Sindhuli

Terms of Reference (TOR) for Consulting Service to Prepare DPR of Boutique Dairy Plant in Sindhuli

1. Background

Heifer Project Nepal (HPN) is implementing a signature program “Milky Way- Transforming Dairy sector of Nepal”. Under the initiatives, there is a plan for establishing a new state of art boutique dairy industry to cater the increasing demand and substitute the import of dairy products in Nepal and to encourage the dairy farmers to increase quality milk production capabilities to meet the growing demand for processed milk & dairy products. To achieve this, we seek the services of a qualified and experienced consultant to develop a comprehensive and detailed plan (technical feasibility, structural and financial) for the establishment of boutique dairy plant.

2. Objective

The objective of this consultancy is to provide a detailed plan for the establishment of a boutique dairy plant, including feasibility analysis, design and layout planning, cost estimation, equipment selection and vendor listing for equipments and implementation strategy from preparing SOP, flowcharts, quality standards to plant installation, commissioning and start-up and training.

3. Scope of Work

The project has envisioned to establish a boutique dairy plant with 10,000 lpd processing capacity. The consultant will be required to undertake the following tasks:

i. Feasibility Study:

• Consultative meeting with government authorities (MoALD), Ministry of Industry, Commerce and Supplies, Department of Commerce, DLS, NDDB, DFTQC etc.) and dairy industries   
• Assess the market demand for various dairy products in the country particularly being imported from other countries.
• Assess supply of various dairy products in the country including dairy products being marketed in major cities / towns including Kamalamai Municipality.
• Assess current milk production and projected production potential over the next 5 years in Kamalamai municipality.
• Estimate water (Quantity, Quality) supply system needed for dairy plant
• Evaluate the financial viability of the project at 50% and 100% operation against installed capacity of 10,000 lit/day
• Finalize line of dairy products that will be produced in the dairy plant based on the market information 
• Evaluate cost of production for each dairy product to assess competitiveness with the existing imports.
• Explore potential conflicts that might arise during establishment and operationalization and suggest mitigation strategies.
• Consult with municipality for regulation and sustainability – to avoid future conflict and secure technical assistance and resources
• Develop Boutique Dairy Business Plan

ii. Site Selection and Analysis:

• Evaluate the technical / environmental feasibility of proposed land for establishing boutique dairy. If the selected site is found to be unsuitable, support identification of proper government land area within the municipality/ recommend potential locations for the dairy plant.
• Conduct site assessments considering factors such as proximity to raw material sources, transportation, utilities, and environmental impact.

iii. Plant Design and Layout:

• Develop the architectural and engineering design of the dairy plant.
• Create a detailed layout plan including production, storage, administrative, and auxiliary facilities.
• Develop a layout plan from milk receiving section to storage of processed milk and milk products taking into consideration all the technical aspects and future scale-up.

iv. Equipment Selection:

• Identify and recommend appropriate machinery and equipment for milk processing, packaging, storage, and quality control based on the demand analysis
• Provide specifications and cost estimates and list of potential sources/suppliers for the for the plant and machinery.

v. Investment and Revenue Estimation:

• Prepare a detailed cost estimate covering all aspects of the project including construction, equipment, labor, and operating costs.
• Develop a financial model including projected revenue, expenses, and profitability analysis. Analyse ROI, CB Ratio, Payback Period, NPV, cash flow and other financial parameters

vi. Operationalization and Sustainability Plan:

• Identify operationalization modalities (Social Entrepreneur Women Cooperative (SEWC)/ Private Dairy/ Joint Venture/ Government/ PPP model)
• Develop multiple business plans considering potential sources of investment (e.g. Project Concept submitted to MAFRA, S. Korea, Government of Nepal, private sectors)
• Develop a comprehensive project implementation plan with timelines and milestones.
• Identify potential risks and propose mitigation strategies. 
• Develop boutique dairy sustainability plan 
• Develop SOP, Flow charts and Production plan for each product.
• Develop quality standards.

vii. Regulatory Compliance:

• Ensure that the plant design and operations comply with local, national, and international standards and regulations.
• Provide guidance in obtaining necessary permits and licenses.
• Conduct an environmental impact assessment and propose measures to minimize adverse effects (e.g. effluent plant).

viii.Assessment of human resources (technical and others) to run the boutique dairy

4. Deliverables

The consultant will provide the following deliverables:

1. Inception Report: Outline the methodology, work plan, and timelines.

2. Draft DPR of Boutique Dairy plant. The report should include but not limited to :

• Feasibility Report: Detailed market analysis, supply chain assessment, and financial viability.
• Site Selection Report: Evaluation of potential sites and recommended location.
• Design and Layout Plan: Architectural and engineering designs with detailed layout.
• Equipment List and Specifications: Recommendations for machinery and equipment with cost estimates.
• Cost Estimate and Financial Viability Report: Detailed project cost including construction, equipment, and operational costs.
• Implementation Plan: Comprehensive project timeline with milestones and risk mitigation strategies.
• Regulatory Compliance Report: Summary of regulatory requirements and compliance measures.

3. Final DPR of Boutique Dairy plant. 

5. Duration

The consultancy is expected to be completed within 2.5 months from the date of signing the contract.

6. Required Qualifications

• A minimum of Master Degree from a recognized university or equivalent in Dairy Technology, Dairy Engineering, Animal Sciences, Business Administration or other related field and at least five (5) years of related experience.
• At least five years of experience in the dairy industry, Plant or food and production plant related field.
• Proven track record of developing detailed plans for dairy plants or similar industrial projects.
• Strong understanding of dairy processing technologies and equipment.
• Strong understanding of dairy products manufacturing. 
• Excellent analytical, project management, and communication skills.
• Familiarity with local and international standards and regulations in the dairy industry.

7. Required Documents

Interested consultants from same field is requested to submit application along with the following documents mentioning email subject line “Application for Boutique Dairy DPR” through email to Procurement-NP@heifer.org  by 17th February 2026, 5: 00 PM.

• Letter of interest 
• Curriculum Vitae of the lead consultant and key team members (if any)
• A detailed methodology and work plan
• Expected consultancy fee with breakdown
• Examples of similar projects undertaken 
• Copy of VAT/PAN registration certificate 
• A copy of Nepali citizenship certificate

8. Evaluation Criteria

Proposals will be evaluated based on:

• Understanding of the project scope and objectives.
• Proposed methodology and approach.
• Relevant experience, qualifications and older projects
• Cost-effectiveness of the proposal.

Note: VAT-registered vendors are encouraged to apply.

HPN reserves the right to accept or reject any proposal.