Consultancy Services: Commercial Viability Assessment for Selected Rural, Peri-urban & ASAL Water Projects

  • Senior-level, Short-term contract assignment
  • Posted on 17 November 2016
  • Kenya
  • Closing on 10 January 2017

Job Description

SNV Kenya is seeking to recruit for consultancy services on commercial viability assessment for selected rural, peri-urban and ASAL water projects.

Terms of Reference (ToR)

1. ABOUT SNV

SNV Netherlands Development Organization (SNV) is an International Development Organisation that delivers capacity development advisory services to over 2,000 clients in developing countries of Africa, Asia, Latin America and the Balkans. SNV’s current focus is in three key sectors namely Water, Sanitation and Hygiene (WASH); Agriculture; and Renewable Energy.

1.1 Water, Sanitation & Hygiene (WASH) Sector

In WASH, SNV aims to impact the lives of under-served communities in rural, peri-urban, and small town areas to improve their health and well-being through contribution to (1) adequate and sustainable access to safe, sufficient, and reliable drinking water; (2) access to improved sanitation and; (3) sustained hygiene behavior change as part of daily routines. SNV does this through a programmatic approach in the following key areas:

1) Sustainable Sanitation and Hygiene for All (SSH4A);

2) Functionality of Rural Water Supply Services (RWSS);

3) Sustainable Water Supply Services in Small Towns (and Peri-Urban Areas) (WSST);

4) Water and Sanitation in Schools.

2. CLIMATE RESILIENCE WATER SERVICES PROGRAMME (CREWS)

Kenya Markets Trust (KMT) works in partnership with the private sector and government to transform how markets work so they become more inclusive, more competitive and more productive. KMT’s long-term goal is to deliver large scale, sustainable change in our selected markets, benefiting all in the market, including poor producers and consumers. In the water sector, KMT has partnered with SNV to implement the Climate Resilience Water Services (CREWS) programme as part of its water sector strategy to realize transformational change in the sector. The CREWS programme embrases a market systems approach to water services delivery to address key barriers to systemic issues (e.g. policy, pricing mechanisms, financing, governance, accountability and capacity) that improve access to water.

There is a widespread and entrenched belief that the poor cannot afford to pay for piped water and that providers cannot afford to serve them. In fact, in some communities that lack access to piped water, the poor actually pay more than the current domestic tariff rates for households with piped water[1]. SNV & KMT has partnered with selected water utilities, private sector companies and other relevant organizations to develop a consumer-driven approach for the delivery of water services. It is envisaged that the water utilities will develop more sustainable services provision to the consumers and as a result reduce the cost of water.

SNV will facilitate emergence of Service Delivery Models (SDMs) for rural and peri-urban areas that would enhance reliable and consistent supply of clean and safe drinking water to consumers. It is anticipated that these service delivery models will also catalyse private sector participation at the core function of water services.

3. BACKGROUND TO SERVICE DELIVERY MODELS

Kenya has been classified as a water scarce country and therefore emphasis is placed on conservation and prudent use of the available potable water resource. Both the UN (through resolution 64/292, 2010) and the Constitution of Kenya (2010) recognise access to water and sanitation as a basic human right. Sustainable Development Goal (SDG) no. 6 aims to ensure availability and sustainable management of water and sanitation, while the target is to achieve universal and equitable access to safe and affordable drinking water for all by 2030.

Since the water reforms of 2002, the country has made substantial progress in increasing access and accelerating investment in the sector. The reform process embraced “socially responsible commercialization” which was anchored on running the water utilities as business entities and ring-fencing revenue for the sector to grow. However, despite the progress in the urban areas, rural water services continue to struggle with inefficiencies and stagnated growth.

Fostering better management practice at the core function of water services provision, facilitating enabling environments and strengthening relationships at the support function is largely expected to change how the market actors interact in the water market system. With the emergence of better SDMs, the poor are expected to benefit appropriately. The integration of a climate change component is further expected to open opportunities for the market actors in designing, implementing and adapting suitable climate smart technologies and make service provision affordable and responsive to environmental changes.

4. OBJECTIVE OF THE ASSIGNMENT

The overall objective of the assignment is to identify commercially viable water points that can be managed through partnerships between county government, community and micro, small and medium enterprises (MSMEs) through selected SDMs.

The specific objectives are to:

  • Assess the commercial viability of selected water systems in Kisumu (3), Nandi (7), Homa-Bay (6), Bungoma (4), Marsabit (5), Isiolo (2) & Kakamega (4). Other counties with projects to be identified include: Busia Turkana, Wajir, Baringo, Kitui & Makueni Counties. The analysis will include preparing technical, financial and socio-economic assessments.
  • Identify potential private enterprises to manage selected water systems on a commercial basis within the specified target counties.

A detailed list of the specific projects will be shared to the successful firm.

5. MAIN TASKS OF THE ASSIGNMENT

Preparation of an Inception Report

  • Internalize the ToR’s and review literature on market system development, M4P approach, private sector participation in water service delivery in Kenya.
  • Provide a methodology and assessment tools for commercial viability analysis of water projects in the above selected counties.
  • Submit an inception report on the approach and methodology, draft outline of the final report including the list of charts and graphs that will be included in the final report.

Assessment of commercially viable water projects

  • In collaboration with the selected county staff, conduct field visits to select water systems.
  • Assess the technical and financial performance of select water utilities using WASREB KPIs e.g. non-revenue water, collection efficiency, operating revenues, operational cost etc. The financial assessment should explore scenarios of projects to achieve break-even, projected amount of investment required for each water system to make it viable (e.g. repairs, rehabilitation, new equipment etc.) and potential for clustering.
  • Prepare comprehensive Commercial Viability Analysis (CVA) reports by counties assessed providing clear recommendations.

Socio-Economic Analysis of the target group

  • Conduct a socio-economic assessment of the targeted group i.e. ability to pay and willingness to pay assessments, sources of livelihood and income levels for the households in the select projects.

Identification of potential local private actors

  • Develop tools for identification, assessment & procurement of potential MSME’s for the selected commercially viable water utilities.
  • Present evidenced presentations to respective counties, SNV and other relevant stakeholders on the preferred models and potential private sector actors for the assessed projects.

6. DURATION OF THE ASSIGNMENT

The assignment is expected to take a total of 3 Months, from November 2016 to 31st January 2016. This duration is inclusive of reporting timeline.

7. RECOMMENDED APPROACH

The consulting firm is expected to work very closely with the County Government (CG), Water Service Providers, Water Services Trust Fund (WSTF), Water Services Regulatory Board (WASREB), SNV, KMT and relevant development partners on a regular basis and as may be required from time to time. Feedback from these actors will be incorporated in the subsequent reports/work.

8. KEY DELIVERABLES

The Consultant shall be responsible for proper planning and delivery of the assignment in close collaboration with respective CGs/WSP staff. The Consultant will further be expected to deliver the following to SNV:

a) Inception report based on desk study, incorporating a wider integrated approach, activity plan and timelines to undertake the assignment and proposed reporting format.

b) Concise note on consultations at various stakeholder levels including county Government and interest groups.

c) Comprehensive CVA reports on counties assessed, this will include financial, infrastructural investment gap analysis, socio-economic and political economy.

d) List of potential private enterprises by counties identified.

The consultant’s team will be expected to submit weekly time sheets to SNV detailing number of days delivered for internal administrative purposes. All the deliverables will be submitted in soft and hard formats.

Final payment for the assignment will only be made upon successful implementation of the activities and submission of satisfactory reports as outlined above.

9. PERFORMANCE INDICATOR

Quality/completeness and timely delivery of the assignment as per agreed schedule will be essential.

10. REPORTING

The Consultant will report directly to respective county governments and CREWS Project Manager at SNV Kenya and will work closely with SNV Advisors responsible for the project. SNV will provide advisory support throughout the delivery process, including linkage of the Consultant to WSPs, stakeholders and partners involved.

11. QUALIFICATIONS OF KEY STAFF

Eligible Consulting Firms (“Consultants”) are invited to indicate their interest in providing the Services. Consultants may associate with other firms in the form of a joint venture or a sub-consultancy to enhance their qualifications. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The short listing criteria are:

  • Previous experience in similar assignments;
  • Team lead with very strong and advanced financial background;
  • Advanced degree in Sociology/Economic/Business;
  • Water engineering background will be added advantage;
  • Experience in Kenyan water sector context including ASAL;
  • Understanding of private sector promotion and business environment in Kenya including ASAL;
  • Conversant with political economy in Kenya including ASAL;
  • Availability of appropriate skills among staff;

12. BUDGET

Interested consultants are encouraged to submit a technical and financial proposal required for this assignment in the most efficient manner to produce a high quality product.

The budget should cover all eligible costs required to undertake the assignment (excluding travel costs and per diems which will be provided/reimbursed based on actual/SNV rates. These exclusions should however be estimated on a separate schedule in the proposal).

Proposals will be evaluated based on both their technical merit and their price competitiveness.

13. SUBMISSION OF PROPOSAL

Kindly submit your financial and technical proposal and CVs of proposed staff by COB on Wednesday 10th January, 2017 to the following address:

Programme Manager,

SNV Kenya – WASH,

P.o Box 30776, 00100 Nairobi, Kenya

Ngong Lane, off Ngong Road, Nairobi.
Email to: lnaserian@snvworld.org & CC egakahu@snvworld.org

[1] USAID: Enabling water services delivery for the urban poor in Asia best practices review and workshop

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