Background

1. Background Information on the Project:

The ongoing military aggression of Russian Federation against Ukraine has had a direct and highly negative impact on social cohesion, resilience, livelihoods, community security, and the rule of law throughout the country. Recognizing the need to urgently address reconstruction, economic recovery and peacebuilding needs in areas affected both directly and indirectly by the war, the government of Ukraine requested technical assistance and financial support from the international community.

The United Nations Development Programme (UNDP) has been present and active in eastern Ukraine for the past decade, even prior to the conflict in 2014, with a focus on community development, civil society development, and environmental protection. Work on addressing the specific, conflict-related development challenges started in 2015 through the United Nations Recovery and Peacebuilding Programme (UN RPP), building on this earlier engagement and establishing new partnerships. Today, the UN RPP is being implemented by four United Nations agencies: The United Nations Development Programme (UNDP), the UN Entity for Gender Equality and the Empowerment of Women (UN Women), the United Nations Population Fund (UNFPA) and the Food and Agriculture Organization of the United Nations (FAO).

The programme is supported by 12 international partners: the European Union, the European Investment Bank and the governments of Canada, Denmark, Japan, the Netherlands, Norway, Poland, Sweden, Switzerland, UK and USA.

The UN RPP was designed to respond to, and mitigate, the causes and effects of the conflict in eastern Ukraine. It is based on the findings of the Recovery and Peacebuilding Assessment (RPA) and is aligned to the State Target Programme for Recovery, as well as to the two oblast (Donetsk and Luhansk) development strategies up to 2020. UN RPP is also fully adjusted to the humanitarian-development nexus. It is an integral component of the UNDP Country Programme and is therefore fully aligned with the United Nations Partnership Framework (UNPF).

The programme’s interventions are grouped under the following key programme components, which reflect the region’s priority needs:

• Component 1: Economic Recovery and Restoration of Critical Infrastructure
• Component 2: Local Governance and Decentralisation Reform
• Component 3: Community Security and Social Cohesion

The Programme, which operates on the basis of a pooled funding arrangement, follows a multi-sectoral programme-based approach and is implemented using an area-based methodology. It is a unifying interventions framework for 12 projects funded by 12 international partners, and is worth over 80 million USD.

In October 2018, four UN agencies (UNDP, UN Women, FAO and the UNFPA) countersigned a new joint project document, funded by the EU. The overall objective of the project is to restore effective governance and promote reconciliation in the crisis-affected communities of Donetsk, Luhansk and Zaporizhzhia oblasts of Ukraine, thereby enhancing the credibility and legitimacy of local authorities in the government-controlled areas (GCAs) of the oblasts. It will contribute to peace building and prevent further escalation of conflict in Ukraine through achieving effective and accountable decentralization, gender-responsive recovery planning, and equal access to services, as well as enhancing community security and social cohesion.

This will be achieved through the pursuit of the following specific objectives:

1.         Enhance local capacity for gender-responsive decentralization and administrative reforms to improve governance, local development and the delivery of services.

2.         Stimulate employment and economic growth by providing assistance to Micro, Small and Medium Enterprises (MSMEs) development through demand-driven business development services and professional skills training.

3.         Enhance social cohesion and reconciliation through the promotion of civic initiatives.

4.         Support sectoral reforms and structural adjustments in the health, education and critical public infrastructure to mitigate the direct impacts of the conflict.

One of the main objectives of UN RPP is to foster economic revitalization of the war-torn areas of Ukraine and, specifically, stimulate employment and economic growth by providing assistance to MSME development through demand-driven business development services and professional skills training as well as restoration and strengthening institutional and educational infrastructure needed for effective functioning of agriculture and non-agriculture sectors of regional economy.

In 2015-2021, some 4,300 new jobs were created in Ukraine with the support of UN RPP and the governments of Japan, Poland, the UK and the Czech Republic. Some 1,400 of them are in Donetsk and Luhansk oblasts. 1461 MSMEs were supported through business grants programme. The variety of fields and locations covered by the programme is impressive.

Russia’s invasion of Ukraine have triggered economic disruptions at four levels: direct, blowback, spillover, and systemic. Ukraine’s economy is expected to shrink by an estimated 45% this year, although the magnitude of the contraction will depend on the duration and intensity of the war, according to World Bank[1]. Already, the war has led to thousands of civilian casualties and driven millions of Ukrainians to flee to neighboring countries, with millions more on the move internally.

On 9 May, Ukraine’s government reported that the country loses USD 170 million every day due to cut off from access to the sea and the national export capacity had been more than halved[2]. The country’s four seaports in the Programme’s target areas in Donetsk, Kherson, and Zaporizhzhia oblasts are being occupied by the Russian forces (namely, the ports of Berdiansk, Kherson, Mariupol, and Skadovsk).

The exact magnitude of the contraction will depend on the duration and intensity of the war, and the levels of destruction of productive capacity, damage to arable lands, and labour supply. The UNDP analysis also suggests that development setbacks for Ukraine will be significant, including increased inequalities and poverty rates; the country’s economy, its social fabric, and the environment will also suffer. Eighteen years of socio-economic achievements in Ukraine are at risk, and to mitigate such dramatic development setbacks, an effective humanitarian-development-peace nexus approach will be critical including the strategic interventions to increase resilience of MSME sector. According to Ukraine’s Ministry of Economy, as of late April 2022, the government has processed more than a thousand applications for the relocation of businesses from the areas under active military hostilities[3]. At the same time, as of November 2021, there were 31400 active enterprises in Donetsk Oblast and 14801 in Luhansk Oblast[4]. According to a survey conducted by the European Business Association[5] between 11 and 14 of March, among Small and Medium Enterprises (SME) representatives in Ukraine, 42% of all small businesses are not operational anymore and 31% have suspended their operations with plans for resumption in the future. Similarly, the results of the Kyiv School of Economics survey conducted on 22 March 2022, showed that 86% of companies slowed down, reduced, and even stopped their activities, while the estimated total economic losses from the war were up to USD 600 billion as of 2 May 2022[6]. Thus, there are over a quarter MSMEs still operational in the GSAs of Luhansk and Donetsk oblasts or those who moved to the safer areas and are in urgent need of operational consulting and support in reintegration in the host communities. 

To support MSMEs producing essential products and services, create new business opportunities for entrepreneurs relocated from the war-affected regions, and facilitate their access to new markets, UNDP seeks for a highly qualified and experienced Ukrainian professional for the position of the National Consultant on provision of coaching services for MSMEs on access to the European Union (hereafter – EU) markets during crisis times.

[1] Russian Invasion to Shrink Ukraine Economy by 45 Percent this Year https://www.worldbank.org/en/news/press-release/2022/04/10/russian-invasion-to-shrink-ukraine-economy-by-45-percent-this-year

[2] Prime Minister of Ukraine and President of the European Council coordinated joint steps to solve the problem of exporting Ukrainian agricultural products https://www.kmu.gov.ua/en/news/premyer-ministr-ukrayini-ta-prezident-yevroradi-skoordinuvali-spilni-kroki-dlya-rozvyazannya-problemi-eksportu-ukrayinskoyi-agroprodukciyi

[3] Business Relocation: More than 200 businesses have resumed operations in safe areashttps://www.me.gov.ua/News/Detail?lang=uk-UA&id=b0867fbf-b443-41f0-a10d-4a369f5c304b&title=RelokatsiiaBiznesu-Ponad200-PidprimstvVidnoviliSvoiuRobotuUBezpechnikhOblastiakh

[4] State Statistic Service of Ukraine http://www.ukrstat.gov.ua/operativ/operativ2022/kap/kap_ue_22.xls

[5] A quarter of small businesses in Ukraine have already exhausted their financial resources https://eba.com.ua/en/finansovi-rezervy-chverti-predstavnykiv-malogo-biznesu-vzhe-vycherpani

[6] Ukrainian business expects from the government tax holidays https://kse.ua/about-the-school/news/naybilshe-ochikuvannya-biznesa-vid-uryadu-sogodni-podatkovi-kanikuli

Duties and Responsibilities

2. Main objectives of the assignment

Under the direct supervision of the Business Development Specialist, the National Consultant on provision of coaching services for MSMEs on access to the European Union markets during crisis times (hereafter – the Contractor) will be responsible for the implementation of the UNDP activities aimed at fostering economic revitalization of Ukraine and, specifically, stimulation of networking and provision of remote group information and consultation sessions for MSMEs from Donetsk, Luhansk, Zaporizhzhia, Kherson, Dnipro, Kharkiv, Sumy and Poltava oblasts (hereafter – targeted areas) who are willing to expand their business activities to the EU markets during crisis times.

The sessions should cover (but not be limited to) legal, accounting, marketing, and operational areas, as well as the issues of quality control and certification of products of Ukrainian MSMEs functioning in or cooperating with the EU.

3. Description of Responsibilities/Scope of Work

Specifically, the Contractor will perform the following key tasks in close coordination with the Programme personnel:

Initial stage

1. Develop a work plan and agree with the direct supervisor;
2. Develop and approve a registration mechanism for information and consultation sessions (disseminate information in the media sources, develop registration form such as Google Form or similar, develop the participants’ database);
3. Submit and approve the Inception report of the activities to be implemented within the estimated period of the assignment. All developed documents should be attached to the report. The requirements for the document: up to 5 pages, Ukrainian and English languages, single spacing, Noto Sans font, size 11.

Coaching stage

1. Deliver at least one remote introduction session and ensure the provision of at least two (2) in-person info-sessions (a whole-day each) in Poltava and Dnipro* on the following topics:

• trends of the EU markets, potential access to them;
• general conditions of export and doing business in the EU during crisis times;
• market analysis and formation of export strategy for MSMEs;
• specific features of business activities in the EU for Ukrainian MSMEs;
• business relocation to the EU, specificities of the countries’ regulations, issues, opportunities;
• development ways in new business environment, investments involvement, etc.
• road maps for MSME from different economy sectors;
• tools for business internationalization;
• lifehacks and success stories from Ukrainian MSMEs;
• any other relevant topic can be proposed and or requested by the MSMEs during wartimes.

1. Ensure the provision of the remote consultation sessions in the areas of export and conducting business activities in the EU during crisis times to at least 120 MSMEs via established channel of communication approved by the UNDP (distance mode). The duration of the group consultation can be up to 2 hours , preceded by preparatory activities including analysis of the company profile, shallow market research and identifying potential solutions for each recipient*.

*The consultation sessions should be provided during office hours (Monday to Friday from 9 am till 6 pm);

1. Register all consultation sessions using the mechanism agreed with the direct supervisor.

All sessions should be recorded and shared with the UNDP.

*Travelling to Poltava and Dnipro cities should be agreed in advance with the UNDP. The travels can be considered only if the security and/or pandemic situation allow, in other case the information sessions and the coaching stage should be transferred to the online mode. All arrangements expenses of the offline events are to be covered by the UNDP.

Final stage

1. Develop and approve the Final report (up to 20 pages, single spacing, Noto Sans font, size 11, Ukrainian and English languages) on the results of activities performed that should include, but not be limited to the following components:

1. Scope of work and objectives of the assignment;
2. Description of the approach used;
3. Recommendations and lessons learned;
4. Annexes: registration database, registry with the indicated volumes of consulting service provided, links to the records of info-sessions, etc.

4. Deliverables, Deadlines and Proposed Payment Schedule

Lump sum contract

UNDP will pay the negotiated amount in 3 (three) tranches as per delivery of the outputs outlined above.

The payments will be paid upon the full completion, provision of the reports and acceptance of contractual obligations whereupon the Programme Coordinator signs the certification of acceptance.

5. Monitoring/Reporting Requirements

The Contractor will work under the direct coordination the Business Development Specialist and directly report to the responsible Specialist on a fortnightly basis through in-person meetings/by phone or Skype/Zoom or sending electronic materials. The Contractor will duly inform UNDP of any problems, issues or delays arising in the course of the implementation of the assignment and take the necessary steps to address them.

As a quality assurance measure, the UNDP reserves the right to initiate remote spot checks of the people who have received consultations to conduct interviews and obtain comments and suggestions regarding the quality of the services.

Competencies

6. Experience and qualifications requirements

Education:

• Higher education in Economics, Social sciences, Management, Public administration, Management of Foreign Economic activities or another related field.

Experience and competencies:

Please note that the required experience should be clearly reflected in the CV

• At least 4 years of proven experience in business consulting or advisory support to MSMEs in the area of business activities in the EU, export to the EU markets, specifically, in support of Ukrainian MSMEs in their legalization on the markets of EU countries, international trade
• Experience in conducting information sessions/trainings/seminars (at least three video materials regarding information sessions/trainings/seminars conducted within 3 (three) last years to be provided);

• Experience in producing knowledge materials/analytical documents/policy recommendations on business activities in the EU/export to the EU markets/foreign economic activities/etc. (at least 2 examples/samples of knowledge materials in the open source);
• Fluency in Ukrainian, Russian is required; working knowledge of English;
• Experience in working with relevant stakeholders from the governmental and non-governmental institutions involved into economic recovery at the sub-national level (at least 1 (one) year of experience);

• Working experience with UN agencies relevant to the field of assignment will be considered as an advantage.

7. Documents to be included when submitting the proposals

Applicants shall submit the following documents:

8. Financial proposal

Lump sum contract

The financial proposal shall specify a total lump sum amount, and payment terms around specific and measurable (qualitative and quantitative) deliverables (i.e. whether payments fall in instalments or upon completion of the entire contract). Payments are based upon delivery of the services specified in the TOR. 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 Contractor will be responsible for all personal administrative expenses associated with undertaking this assignment including office accommodation, printing, stationery, telephone and electronic communications, and report copies incurred in this assignment.

Travel costs

All envisaged travel costs must be included in the financial proposal. This includes all travel to join duty station/repatriation travel. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the Contractor wish to travel on a higher class he/she should do so using their own resources.

In the case of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and the Contractor, prior to travel and will be reimbursed. 

Required Skills and Experience

9. Evaluation criteria

The breakdown scores for qualifications and experience are as follows:

• University degree in Economics, Social sciences, Management, Public administration, Management of Foreign Economic activities or other related field - 10 points max [10 pts – PhD degree or equivalent; 9 pts – Master’s degree or equivalent; 7 pts – Bachelor’s degree];
• At least 4 years of experience in business consulting or advisory support to MSMEs in the area of business activities in the EU, export to the EU markets, specifically, in support of Ukrainian MSMEs in their legalization on the markets of EU countries, international trade (- 20 points max [20 pts – 5 or more years; 16 pts – 4 years];
• Experience in conducting information sessions/trainings/seminars (at least three video materials regarding information sessions/trainings/seminars conducted within 3 (three) last years - 20 points max [20 pts – 4 or more video materials; 16 pts – 3 video materials];
• Language skills - 7 points max [7 pts – fluent knowledge of Ukrainian and Russian languages, Fluent knowledge of English; 5 points – fluent knowledge of Ukrainian and Russian languages, Working knowledge of English];
• Experience in working with relevant stakeholders from the governmental and non-governmental institutions involved into economic recovery at the sub-national level- 8 points max [5 pts – 1 year; 2 years or more - 8 pts];
• Working experience with UN agencies relevant to the field of assignment  – 5 points max [5 pts – has experience; 0 pts – no experience].

10. Evaluation method

 Cumulative analysis

Contract award shall be made to the incumbent whose offer has been evaluated and determined as:

a) responsive/compliant/acceptable, and

b) having received the cumulative highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.

* Technical Criteria weight: 70%

* Financial Criteria weight: 30%

Only candidates obtaining a minimum of 70% from the maximum available technical score (49 points) would be considered for the Financial Evaluation

The maximum number of points assigned to the financial proposal is allocated to the lowest price proposal and will equal to 30. All other price proposals will be evaluated and assigned points, as per below formula:

30 points [max points available for financial part] x [lowest of all evaluated offered prices among responsive offers] / [evaluated price].

The proposal obtaining the overall cumulatively highest score after adding the score of the technical proposal and the financial proposal will be considered as the most compliant offer and will be awarded a contract.