Project Implementation and Management Expert
For Regional Industrial Clusters Development:
September 2016
Ministry of Industry, Federal Democratic Republic of Ethiopia
in collaboration with
Private Enterprise Programme Ethiopia
Background and IntroductionBackground
Clusters are internationally recognized as an effective means of promotion of small and medium enterprises and a successful tool of intervention for policy makers. Clusters are defined as geographically proximate sets of interrelated enterprises and institutions often linked to larger enterprises, with a range of commonalities and complementarities among them. It is well accepted that cluster based enterprises are able to better improve their competitiveness, performance and delivery.
In addition to having common technical infrastructure in the clusters that many small and medium enterprises may not be able to afford individually, many clusters can have common facility centres for assisting cluster members in procedures related to securing finance and complying with industry standards and government regulations. In addition, in clusters there can be the near availability of business development services.
Clusters can be set up to facilitate formation of linkages in all directions. Suppliers of raw materials, services and finance form backward linkages; distributors and customers constitute forward linkages; other enterprises with common inputs, complementary products or related skills or technologies form lateral linkages. Thus to meet the requirements of its members each cluster can be formed according to its own specific model with its own specific linkages.
Cluster construction is carried out according to a Master Plan, which takes into consideration all the attributes required for the successful operation of a cluster.
Introduction
In accordance with its 2nd (2015-2020) Growth and Transformation Plan (GTP-II), Ethiopia is striving to structurally transform the economy from agriculture dominated to industry in order to increase worker productivity and achieve middle-income status for the country by 2025. A key strategy outlined in GTP II to achieve this is development of the SME sector across regions with a strong focus on manufacturing through, among others, regional cluster development.
In this aspect, the Ministry of Industry had requested Enterprise Partners of the Private Enterprise Programme Ethiopia (PEPE) to provide technical and financial support to facilitate the setting up Regional Industrial Clusters through the preparation of the Cluster Master Plan. It further requested PEPE that as a part of the Cluster Master Plan, to facilitate the review of 18 building plans that have been worked out to house SMEs and suggest changes, if any, that may be required in them.
The preparation of this Master Plan is currently underway. It is now required to work out details of the construction work that will need to be carried out for the successful management and implementation of the Master Plan.
The key parties involved from Government of Ethiopia are the Ministry of Industry, the Federal Small and Medium Manufacturing Industry Development Agency and regional governments.
Objectives
and Expected Outcomes
Objectives
The key objective is facilitating regional SME growth through cluster development in accordance with the provisions of GTP-II. The strategy is to develop cluster master plan for different sizes (50, 100 and 250 hectares) that can be adapted to local realities and endowments at all regions. The study will consider Oromiya and Amhara regions for developing the master plan but will be implemented by all regions concurrently. The industries involved are textiles, leather, agro-processing, metal fabrication, furniture, electric and electronic goods, and also potential/emerging products from sectors like Information and Communication Technology, aquaculture, biotechnology as well as diversified value added products of other existing industries.
Cluster Construction Master Plan: A Cluster Construction Master Plan is a plan that guides the development of clusters as a concerted national project. It would contain measurable objectives which when achieved, would enable enterprises from the SME sector across the country to move into the cluster premises, start operations within a short time, secure and expand market shares and generate employment.
Expected Outcomes
The key outcome expected is that the Cluster Construction Master Plan will provide the engineering blueprint for the construction of the clusters, commencement of construction work. Enterprises established newly or existing ones are to move into the clusters and be able to commence their operations as soon as the construction work is completed.
Also, existing building plans to house SMEs would be revised if necessary and suitable engineering blueprints provided to form a part of the Cluster Construction Master Plan.
The overall aim is to provide infrastructure for the growth and development of a large number of enterprises of world class levels of competitiveness, generating exports and economic growth.
The project implementation and management expert will be expected to carry out his/her tasks under the supervision and guidance of the Ministry of Industry. His/her tasks would include complementing the Cluster Master Plan, advising the Ministry, the SMEs Agency and the Regional Governments on interpreting and effective implementation of the master plan and in management of the construction process.
The above would include carrying out the following tasks:
Scope, Preparation and Management of the Cluster Construction Master Plan: For this the expert can work out steps including:
Deliverables
Duration of Contract· Brief report on steps to be taken based on the recommendations of the Cluster Master Plan; regional visits undertaken, discussions held with stakeholders, and recommendations where speed and improvements are required in the implementation of the master plan.
· Incorporating feedback from stakeholders
· Carrying out other functions as per contract
One year
Reporting Arrangement
The project management expert will report to the MoI and SMMIDA.
Expertise required
The expert should have a mix of expertise in the following areas:
Engineering; procurement; knowledge of design; project and contract management in the design and implementation of clusters, knowledge of cluster operations; cluster development and commissioning, capacity building.
Consultant Qualifications
The consultant should be an Engineer with knowledge of project management and procurement, experience of design, architecture. He should also have studied Business Administration. He should have a minimum of 15 years of experience in projects and procurement as well as administration and management. Communication skills are critical.
Working arrangements
The Small and Medium Manufacturing Industry Development Agency / Ministry of Industry will lead and coordinate the assignment.
