The EU signed an Association Agreement (AA) with Georgia in June 2014. This aims to deepen political and economic relations and to gradually integrate Georgia into the EU’s internal market. This entails, as one element, creating a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Georgia. Under Article 333 of the Association Agreement (Cooperation between the Parties in the field of agriculture and rural development), there is provision for ‘facilitating the mutual understanding of agricultural and rural development policies. To support Georgia improving rural development, the European Union (EU) launched its European Neighborhood Programme for Agriculture and Rural Development (ENPARD) in Georgia.

Rural development (RD) has an important role to play in the sustainable development of Georgia. Traditionally, RD focused on the exploitation of land-intensive natural resources such as agriculture and forestry. However, changes in global production networks, increased urbanization and dynamic links between rural and urban environments have changed the character of rural areas. Increasingly tourism, other service industries, niche products and recreation have replaced resource extraction and agriculture as dominant sources of income. These subsectors attract the rural population with higher labour productivity reflected in wage above those available in agriculture.

The government of Georgia approved the first ever National Rural Development Strategy and Action Plan in 2017. The goal of the Rural Development Strategy (RDS) for Georgia 2017-2020 is to support Georgia’s economic development through enhanced social-economic activities in rural areas and improved living condition of rural population. It provides the country’s vision for 2017-2020 in key areas of rural development – growth and diversification of local economies, improvement of social and public services, sustainable use of national resources and local engagement in the development process.

Within the framework of the third phase of ENPARD (ENPARD III), UNDP Georgia is implementing the project “Improving Rural Development in Georgia” (IRDG). Its main purpose is to promote inclusive and sustainable growth and development and creating employment and livelihoods in rural Georgia. The IRDG project will contribute to the overall objective of ENPARD III by supporting, among others, rural economic diversification and the improvement of environment, sustainable management of natural resources and climate action. The project’s activities will be carried out at national level, and focus at municipal level on Lagodekhi, Dedoplistskaro, Tetritskaro, Borjomi, Akhalkalaki, Kazbegi, Keda and Khulo municipalities. It will continue until December 2022.

Objectives of the IRDG project are to support MEPA in improved forest management and to diversify the rural economy. One of the problems the National Forest Agency (NFA) is facing is that it could not yet generate business interest in licenses for collecting and using forest waste. It is estimated that annually, about 120.000 cbm forest waste accumulate in Georgia’s forests. As forest benefit from such waste removal, the NFA could generate additional income through the sale of licenses and businesses could make profit by converting forest waste to energy, it should be a triple win situation. Yet, the market partners do not come together.

IRDG’s interest in this topic depends upon it, if one or more of its target municipalities can directly benefit commercially from such a scheme. Such commercial benefit should be measured in job and/or income generation in these municipalities. It is therefore important to identify, under which conditions there is a market potential.

The overall objective of this technical assistance is to support UNDP/IRDG and the NFA in identifying the conditions under which businesses engaging in forest waste to energy could be profitable. The consultant is therefore expected to closely cooperate with the NFA and UNDP/IRDG.

The consultant will work under the direct supervision of the Project Technical Leader and Manager of “Improving Rural Development in Georgia” Project in consultation with the UNDP Economic Development Team Leader.

Specifically, the consultant will conduct the following tasks:

• Provide overview of Georgia’s experience, including donor funded projects and businesses, related to collection and processing of forest waste including forest-waste-to-energy transformation.
• Provide overview and assessment of current regulations and practices on forest waste collection and processing and provide recommendations for its improvement in order to make this business more attractive for private sector;
• Identify the minimal quantities of forest waste and other preconditions needed to create a commercially viable business. This should include analysis, including sensitivity analysis, of varying factors such as: minimal concession area, energy content of forest waste, transportation distances and costs, price of forest waste as raw material which a business could pay to the government to still be commercially viable, market price of forest waste products (pallets, briquettes) which would be profitable for business and affordable for customers, etc.
• Consider varying sizes of businesses, concession areas, and other crucial factors impacting the profitability of the business.
• Consider various options for licensing the use of forest waste e.g. tendering, auctioning, direct contracting, etc. (should they yield a win-win for the government and business).
• Taking availability of forest waste and future projections of forest waste generation into consideration, identify if any of the projects’ target municipalities could be a preferred location for a forest-waste-to-energy business and provide a recommended ranking.
• Prepare a financial and business plan for the marginal business, i.e., the business which is according to location, size and other identified crucial factors just profitable. Incl. estimated set-up cost and jobs created.

Deliverables and payment modality:

The Consultant should submit the following deliverables:

• Work plan and framework – due by 6 November 2019; 20% of consultancy fee
• Final report presenting all results/findings, with financial and business plan – due by 13 December 2019; 80% of consultancy fee

The timely and high quality submission of the deliverables is a pre-condition of the payments. The official language of communication for the present contract is English.

While on duty, number of days will be allocated for the work from home (up to 18 days) and number of days allocated for the travel in the regions (up to 7 days).

Corporate competencies:

• Demonstrated commitment to UNDP’s mission, vision and values.
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability.
• Highest standards of integrity, discretion and loyalty.

Functional competencies:

Knowledge management and learning:

• Actively works towards continuing personal learning and development in one or more Practice Areas, acts on learning plan and applies newly acquired skills.
• Shares knowledge and experience.

Development and operational effectiveness:

• Ability to undertake analytical work.
• Proven ability to deliver quality output working under tight deadlines.
• Proven research and analytical skills.

Management and leadership:

• Focuses on result for the client and responses positively to feedback.

Education

• Bachelor’s degree in forestry, economics, business administration or other related discipline (minimum requirement – 8 points).

Experience: 

• 5 years of work experience in financial analysis and business planning for small and medium size companies (minimum requirement – 10 points);
• 3 years of experience in forestry or energy sector (minimum requirement – 10 points);
• Experience in biomass to energy transformation would be distinct advantage (7 points);
• Experience of working with Government and international organizations or INGOs would be an asset (5 points).

Language Requirements:

• Fluency in Georgian, English would be an advantage.

Evaluation:

Individual consultants will be evaluated based on the Cumulative analysis: Individual consultants will be evaluated against combination of technical and financial criteria. Technical evaluation stage encompasses desk review and interview of applications. Experts not meeting any of minimum technical qualification requirements will be automatically excluded from the list of candidates for further technical evaluation. Maximum obtainable score is 100, out of which the total score for technical criteria equals to 70 points (70%) and for financial criteria 30 (30%). Technical criteria composed of desk review (40 points) and interview (30 points). Offerors who pass 70% of maximum obtainable scores of the desk review (i.e. 40 x 70% = 28 points as a result of a desk review of applications will be invited for the interview. Those offerors who pass 70% of maximum obtainable scores for interviews (i.e. 30x 70% = 21 points) will be considered as short-listed offerors and included in the roster of qualified consultants.

Financial Proposal:

The financial proposal shall specify a total lump sum. Payments are based upon delivery of the services specified in the TOR.  All envisaged travel costs must be included in the financial proposal. This includes all travel to join duty station/repatriation travel.  In general, UNDP does not accept travel costs exceeding those of an economy class ticket. Should the IC wish to travel on a higher class he/she should do so using their own resources. In order, to assist the requesting unit in the comparison of financial proposals, the financial proposal will include a breakdown of this lump sum amount. The financial proposal shall specify a total lump sum including consultancy fee, travel costs and living allowances. A breakdown of those cost will be requested.