Background

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’. This was the basis for the formulation of a Rural Development Strategy for Georgia which will in turn yield specification of measures which will benefit from funding under the European Neighborhood Programme for Agriculture and Rural Development (ENPARD).

Rural development has an important role to play in the development of Georgia. 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), lasting until November 2022. Its main purpose is to promote economic diversification for achieving inclusive and sustainable growth and development and creating employment and livelihoods in rural Georgia.

In its eight target municipalities - Akhalkalaki, Borjomi, Dedoplistskaro, Kazbegi, Keda, Khulo, Lagodekhi and Tetritskaro- IRDG attempts to instill a process from exogenous on the path to endogenous municipal development, among others, by emphasizing its principle of portfolio-based interventions and identifying seedbeds of regional growth poles or clusters. This is being supported through the establishment of municipal working groups, representing besides the municipality and the Local Action group (LAG) representatives of the key ministries responsible for rural development (represented in the Interagency Co-ordination Council – IACC).

Repeatedly, rural growth poles have been identified as one of the few approaches for rural diversification (e.g. Brookings Institution). An international consulting confirmed that there are incipient seedbeds for rural growth poles in Dedoplistskaro and Lagodekhi, anchored on agroclimatic advantage in Lagodekhi. These growth poles relate to predominantly to essential oils, but also to cut flowers.

An investment of about US$3million by an international investor in Lagodekhi (https://www.greenvillage.ge/who-we-are) involves production of rose oil using 85 ha of roses. A refinery has also been constructed for producing rose oil. There are several other smaller growers in the area producing crops that could be used for essential oils, including eucalyptus and bay. There was essential oils production in Lagodekhi during the socialist era, but this ended following the breakup of the Soviet Union. In the past, essential oils were produced from rose, geranium, basil, eucalyptus, bay, citrus, and wildflowers. Producers had access to refineries working as wineries do now – they could sell their flowers or other raw materials to the refinery. This is important since most growers are too small to justify building their own refinery.

Reflecting the same agroclimatic advantage for flowers for essential oil production, there are signs of the emergence of cut-flower production in Lagodekhi. Growers and volumes remain small in Lagodekhi. This has not yet brought benefits of agglomeration but there are some nascent signs of concentration given that there are some 25 producers, albeit small-scale. Georgian producers currently supply the domestic market and are not yet able to export.

 

Duties and Responsibilities

The overall objective of this technical assistance is to support IRDG in conducting an in-depth feasibility study on the beforementioned rural growth poles (disaggregated by their respective products like roses, geranium, etc.). Specifically, the Consultant will:

  • Familiarize with IRDG and its objectives.
  • Concretely identify the development potential of essential oils and cut-flower growth poles in the municipalities of Dedoplistskaro and Lagodekhi and their immediately surrounding municipalities. This includes agro- and agro-climate conditions, land incl. land titles, available skills and interest from the municipality and major stakeholders.
  • Concretely identify the market potential of essential oils and cut-flowers grown in the municipalities of Dedoplistskaro and Lagodekhi and their immediately surrounding municipalities. This includes the identification of potential domestic and international markets and first estimates on quantities and required competitive pricing and quality.
  • Outline the key elements that need to be strengthened or created to develop and exploit the existing potentials. This may include policies, laws, infrastructure, skills and finance. Make a first assessment on the timing and financial resources required to establish and/or strengthen those key elements.
  • Make a first assessment on the potential impact, by year of implementation, of the number of jobs created and potential income generated.
  • Present the results to local stakeholders and adjust.
  • Elaborate the in-depth feasibility study and present the adjusted results to IRDG and adjust.
  • Present the final results to IACC and facilitate discussion.

The outcome of this assignment is an in-depth feasibility study.

The Consultant will work with IRDG’s Economic Diversification Coordinator under the direct supervision of Project Manager and Technical Leader of the “Improving Rural Development in Georgia” project and in consultation with the UNDP Economic Development Team Leader.

Deliverables and payments:

The Consultant should submit the following deliverables:

  • Report on development potential on both growth poles, due by 30 January 2021; 30% of the consultancy fee
  • Report on market potential of both growth poles, due by 28 February 2021, 30% of the consultancy fee
  • Final in-depth feasibility study including report on presentation to local and IACC stakeholders, due by 30 March 2021; 40% of the consultancy fee

Competencies

Core 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:

  • Shares knowledge and experience.

evelopment and Operational Effectiveness:

  • Ability to undertake analytical work and prepare narrative parts of working papers, reports and studies.
  • Strong communication skills.
  • Advanced computer skills including Microsoft Office and web-based applications.
  • Proven ability to deliver quality output working under tight deadlines.
  • Excellent communication and facilitation skills.
  • Outstanding writing skills for a range of different audiences.
  • Strong and proven research and analytical skills.

Leadership and Self-Management:

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

 

Required Skills and Experience

Education        

  • Master’s degree in argo-economics, economics or other related discipline (minimum requirement: 6 points).

Experience:

  • Minimum 8 years of relevant work experience with a particular focus on assessing the feasibility of products (minimum requirement; 8 points).
  • Minimum 3 years of experience in business development in rural areas (minimum requirement: 7 points).
  • Minimal 1 year experience in agriculture and/or agro-economics (minimum requirement: 7 points).
  • Experience in assessment/analysis and/or promotion of essential oils and/or cut flowers a distinct advantage (4 points).
  • Prior experience of working in multi-stakeholder environment and formats an advantage (4 points).
  • Experience of working with Government and international organizations or INGOs an advantage (4 points).

Language requirements:

  • Fluency in English and Georgian (both written and oral).

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 because of a desk review of applications will be invited for the interview. Those offerors who pass 70% of maximum obtainable scores for interviews of (i.e. 30x 70% = 21 points) will be considered as short-listed offerors and requested to provide financail proposals.

Financial Proposal:

The financial proposal shall specify a total lump sum supported by the respective breakdown of the total fee. Payments are based upon delivery of the services specified in the TOR.