Feasibility Study for Establishing of Agro-food Exporting Co...

Terms of References (TORs) 

Feasibility Study for Establishing of Agro-food Exporting Company

1.0 Background: 

Small Enterprise Center (SEC) Association is a Palestinian non-profit organization that started in 2002 as a project within the framework of a former GIZ Private Sector Development  Program. In 2008, SEC has been officially registered as an independent non-profit organization governed by the Palestinian Law of Charitable Associations and Community Organizations No.1 for the year 2000. SEC began with an office in Ramallah and has grown to be a leading national organization serving Palestinian Micro, Small and Medium Enterprises (MSME) and social enterprises (including cooperatives).

Currently SEC is implementing phase-II of the project “Agro-processing in Palestine  Supporting SMEs and Entrepreneurship for Youth” in partnership with DROSOS FOUDNATION. Under this project scope, SEC is looking forward to establishing an Agro-Food Exporting Company in partnership with local private investors to support the Palestinian micro and small enterprises and cooperatives involved in the agro-food sector to export their products into the regional markets. The proposed Company will be acting as a leading Company in Palestine to export agro-food products to the external targeted markets. The feasibility study will provide analysis and scenarios to the company’s owners regarding the followings:

• The products to be exported by the company based on criteria such as the availability of products in large volumes, competitive advantage, prices, etc.
• The potential local suppliers (cooperatives, SMEs) and the most effective business relationship between the Company and the potential suppliers, as well as selection criteria for such potential suppliers
• The specific business activities options of the proposed Company will include (marketing finished processed products; semi-processed products to  be finished by the Company and then to be marketed outside; and finally, test the possibility of purchasing raw materials for processing and finalizing food products for export). 
• The potential for private labeling options. 

The final selection of the business model will be decided by the Company and consequently will has implication of the size of investment.  

Preparation of a feasibility study is considered as a necessary prerequisite step in strengthening the SEC’s role in supporting the micro and small enterprises as well as the cooperatives operating in this field. The feasibility study about the establishment of this Company, which will help SEC to be more financially sustainable, provides answers to all questions and inquiries related to the market feasibility, financial feasibility, size of investment, legal structure, ownership structure, economic, social, and environmental benefits,  investment plan, role of each party, operation and level of activities, etc. 

2.0 Purpose:

DROSOS FOUNDATION in cooperation with SEC is seeking technical and financial  offers from suitably qualified resource person/s to assist SEC and potential investors to develop a feasibility study for Agro-Food Exporting Company in a very structured, objective and qualifiable manner.  

The specific objectives of this TORs are to undertake the followings tasks:

1. Conduct market analysis situation in Palestine (products, supply chain, competitors, decision-making process, activities, potential partners, business model, desk review to identify market segments in potential external markets, level of competition, market entry cost, regulatory requirement for export, consumer behaviors, highest potential products, etc.)
2. Technical/operational for the most appropriate and feasible model of operation: Hardware, software, office equipment, processing equipment, communications, etc.
3. Conduct a financial analysis for the foreseen company including financial statements  
4. Develop a feasibility study report for this company (e.g. marketing feasibility, technical/operational feasibility, and financial feasibility).

3.0 Scope of work:

Expert/s will work closely with SEC staff, investors, and related stakeholders, to conduct a feasibility study of the Company.  

The expert/s shall assess the worthiness and sustainability of the proposed financing to establish an agro-food exporting company in Palestine that is targeting the Gulf countries, the Far East, and Europe  through establishing main marketing units in Qatar, Netherlands, and Far East Countries. In principle, three investors in the mentioned countries showed willingness to build partnerships with the foreseen Company to export the agro-food products in the three regions. The study shall cover, but not limited to the following aspects: markets and value chain analysis; demand analysis; supply analysis, investment alternative analysis; conceptual design of each of the three marketing units; operational plan,  risk assessment (including business and marketing risks); economic and financial analysis; business management model and governance including partnership arrangements; financial management assessment; procurement capacity assessment and procurement packaging; safeguard assessment and planning (including prepare documents for environment; and the workflow from the conceptual design to functional facilities.  It is required that close consultations, discussions, and surveys of potential stakeholders/SEC management to be conducted to ensure the business design are practical to the investors’ purpose, and the operation has high likelihood of sustainability. 

5.0 Deliverables: 

The contract will be signed between DROSOS FOUDNATION and the expert(s). The followings are the expected deliverables from the expert/s:

1. Inception report;
2. Meetings with SEC, DROSOS FOUNDATION, and investors to discuss and consult them during the feasibility study  development
3. Draft a final Feasibility Study Report 
4. Final Feasibility Study report after incorporating all comments and/or recommendations of the potential investors, SEC management, and DROSOS FOUNDATION management. 
5. Implementation plan including an investment plan
6. Final workshop to present the final deliverables. 

6.0 Qualifications and Work Experience of the Expert 

It is expected that the expert (s) has the following expertise:

• At least a master’s degree in Business Administration, Management or a related discipline 
• At least 7 year working experience / knowledge of agro-food sector 
• At least 7 years of experience in feasibility studies  development and strategic action 
• Provide samples of developed feasibility studies or related work
• Excellent skills in English and Arabic both written and spoken. 

7.0 Duration of Appointment: 

The expected level of effort of the expert is around 25 working days, within three months’ time are foreseen for developing a feasibility study from signing the contract. 

8.0 Logistic Support for The Consultant 

SEC and potential investors will provide information, documentation, venues for workshops and meetings, etc. The expert will be responsible for covering the field survey, transportation costs, and all other related costs. 

9.0 Deadlines for Submitting CVs and Technical and Financial Offers

The deadline for submitting CVs, Technical and Financial offers by latest July 19h, 2020 at 16:00 PM. 

Kindly send the offers to SEC email:  [email protected]