EXPRESSION OF INTEREST/CALL FOR PROPOSAL

RFP No. EOI-EAGC-2019-004
Issue date Monday, April 30, 2019
Title INVESTMENT IN WAREHOUSE CONSTRUCTION, EXPANSION OR RENOVATION AND DIRECT FARMERS’ GRAIN PROCUREMENT
Submission of proposal procurement@eagc.org

Hard copies delivered can be dropped at Eastern Africa Grain Council -Dar es Salaam Office by 6th May 2019. The EOI should be clearly labelled “GRAIN WAREHOUSE CONSTRUCTION”

Email address for submission of questions procurement@eagc.org

The email address in the synopsis is the sole point of contact at EAGC for any questions. Deadline for submission of questions is 16th April 2019

Deadline for Receipt of Proposals Monday, 6th May 2019 at 1700hrs East Africa Time
Anticipated Award Type Fixed Price Consultancy Contract.

EAGC anticipates awarding a contract to the successful bidder for the provision of specific services or deliverables. The amount will not to be adjusted if the actual costs are higher or lower than the fixed price amount. Offerors should include all costs, direct and indirect, into their total proposed price.

Basis for Award The award will be made based on the experience of the individual to offer similar services. The award will be issued to the responsible and reasonable offeror who provides the best value to EAGC using a combination of technical and cost/price factors.

 

INTRODUCTION

Eastern Africa Grain Council (EAGC) is a regional private sector membership, Not-for-Profit organization founded in 2006. Our mandate operation span over 10 countries in Eastern Africa region including Tanzania, Kenya, Uganda, Rwanda, Burundi, DR Congo, Zambia, Malawi, Ethiopia and South Sudan. The membership comprise of; Active members -those directly dealing in handling grains including Grain producers, Grain Traders and Grain Processors/Millers; Affiliate members – Regional and national business associations for the farmers, traders or processors who affiliate as an organization and Associate members-service providers to the grain sector including inputs, financial institutions and international organizations with an interest in the grain sector. Its mandate is to develop, promote, and influence structured grain trading system in the Eastern Africa region with defined rules and regulations; improve the policy and trading environment in the regional grain trade, strengthen market linkages and reduce constraints along the grain value chain.

EAGC is one of the partners currently implementing a 3-year AGRA funded project known as Transformation and Industrialization through Joint Agricultural initiatives (TIJA) Tanzania. The overall goal of the TIJA is to increase income and improved market access by smallholder farmers, youth and women through market led production, service provision and commercialization. The project is being implemented in Ihemi and Ludewa Cluster that comprises of Iringa, Njombe and Ruvuma regions.

The EAGC is inviting applications from grain businesses willing to co-invest in warehouse construction, expansion or renovation. Interested grain businesses are requested to submit their Expression of Interest in the prescribed format. The intended purpose for this support is facilitate increased market access to smallholder farmers within the warehouse catchment area. The construction, expansion or renovation of the warehouse must therefore generate a viable financial return to the investor and deliver a measurable market access impact to farmers. With the warehouse investment, the applicant should aim at setting up the warehouse as a centralized grain business hub. The grain hub should be linked to a network of farmers through organized groups within the warehouse proximity. The farmers must benefit from direct procurement leading to improve market access and income generation.

To apply, please complete the application form according to instructions. Applications are to be made in English only as the EAGC cannot provide for translation of proposals submitted in other languages.

ELIGIBLE ENTITIES AND CO-FINANCING REQUIREMENTS

All legal private entities are eligible to apply under this Call for Proposals, provided they:

  1. Support EAGC’s project goal mentioned in the first paragraph above.
  2. Possess a warehouse that needs renovation or extension. Alternatively, they possess a business plan to construct a new warehouse. The warehouse should have the potential to be inspected and certified by EAGC or other appropriate authorities.
  3. Demonstrate access to existing markets and potential to expand such markets; along with ability to source their commodities from farmer operated village aggregating centers within Ihemi/ Ludewa cluster and beyond.
  4. Operate in grain commodity value chain and registered in Tanzania and can prove the existence of business in Iringa, Njombe and Ruvuma regions.
  5. Are registered members of EAGC or willing to pay for a 5-year membership subscription before the award.
  6. Adaptable to recommendations on financial systems to implement the grant and account for grant funds transparently.
  7. Able to match up to 49% of an investment which is not exceeding US $ 20,000. The applicant will be responsible for the remainder of the funding which can be in form of cash, staff, equipment or loans). The balancing amount of co-financing is to be provided by the applicant and/or by other co-financiers. Such co-financing should be relative to the new funding requirement for the (investment) project. Sunk cost are not eligible to be considered as a financial contribution.
  8. Are willing to undergo thorough assessment of the co-financing available will form part of EAGC’s final due diligence verification.
  9. Have a proven relevant track record of sound financial operations in their current and / or proposed activities over a period of at least 3 years, which can be documented by means of (audited) financial statements.

Application:

Interested applicants should apply directly through Grain Warehouse Construction Application Form. The Expression of Interest to be submitted online must contain the following details for it to be considered by EAGC:

  • Company Information: Name of business or the organization, Contact person, full address and telephone number and email address
  • Company Business Profile
  • Company Competencies and Current Outreach
  • Current Operations
  • Problem Statement
  • Proposed intervention
  • Projected Reach and impact
  • Description of Total Costs
  • Description of Cost Sharing Element
  • Warehouse Refurbishment/Extension or Construction Timelines
  • Annexures
    1. Bill of Quantities
    2. Civil Works Supervision/ Environment Impact Assessment (EIA) Report
    3. Short Business Plan
    4. Current Audited Financial Statement

SELECTION CRITERIA

Each application will be assessed against the following criteria:

Assessment Criteria Weight (%)
The Proposal meeting the EAGC’s project goal as stated in the Call. 25%
The track record of the applicant and its technical, managerial and financial capacity to execute the project in stipulated time. 20%
The quality of the application in terms of completeness and the logic of the project design. 15%
The quality and transparency of the underlying financial information provided. 10%
Sound Business Plan 20%
Completed and well quantified Bill of Quantity. 10%
Total 100%

TIMELINES FOR EXECUTION OF THE PROJECT

7th May to 10th May 2019:          Screening of applications and selection by the EAGC Procurement Committee

15th to 18th May 2019:               Negotiation of the key terms and conditions and signing of the Co-financing Agreement

1st June 2019:                            Commencement of Works

 

31st August 2019:                    Completion of the Works

 

Download the EOI

Grain Warehouse Construction Application Form

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