ToR: Assessing the Viability of Water Supply Business in Rulindo District

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TERMS OF REFERENCE FOR ASSESSING THE VIABILITY OF WATER SUPPLY BUSINESS IN RULINDO DISTRICT

  1. Background information

The Government of Rwanda, the District of Rulindo and Water For People—Rwanda launched, in October 2010, the Rulindo Challenge Program, a bold and game-changing initiative, whose goal is to ensure access to safe drinking water and sanitation services for every community, every school and every health care facility in Rulindo District, and to strengthen institutions and local capacity so there is water, Forever.

To ensure regular maintenance of water infrastructure, reliability of water services, and a proper planning for capital replacement of the water systems, the District of Rulindo hired private operators who are managing all water systems on daily basis on behalf of District. The district has also been working with its WASH (Water, Sanitation and Hygiene) to establish and build the capacity of the district WASH Board responsible for the day to day monitoring of the service delivery, building the capacity of the water users committees, and mobilizing water users for the payment of the water tariff, to name a few.

Much as the District and its partners appreciate the progress that has been made in the provision of water services to the District residents, there is still a lot to do to ensure that the water service providers make profit out of their business while satisfying customers’ needs.

It is against this background that Water For People, one of the partners of Rulindo District, would like to hire services of a qualified Consultant who has experience in business viability analysis and water infrastructure management to carry out a study on water business viability in Rulindo District, from the perspective of market viability, product/service viability, management model viability, operational viability, etc.  

The recommendations of the study will help Rulindo Challenge Program partners to plan for any further sustainability oriented activities that can be undertaken before and after full water infrastructure coverage has been achieved. 

2.    Scope of work and responsibilities

The consultant will carry out the following tasks:

  • Asses both the internal and external environment within which the water business in Rulindo is being run. This should include, but not limited to analyzing the existing strategy of engaging water users, support and collaboration from the District and its partners to the service providers, and any other factors which might be affecting the water service delivery in Rulindo;
  • Analyze the status of water business in Rulindo from legal and regulatory perspective;
  • Explore the relationship between the service provider and its served market. The consultant will assess the general understanding of the market place, the costing and pricing systems utilized by service provider/proposed by the service authority (District), the degree and effectiveness of promotional activities, customer demographics, and the movement and quality of services from the service provider to the customer;
  • Assess the relevance of the services to the wants and needs of the customers. The consultant will evaluate the breadth and depth of service offerings, and the relationship between service provider service offering features and end user benefits;
  • Assess the supply-demand status, current and target market, marketing strategy and determine their impact on water service delivery and water business viability;
  • Assess the level of understanding of customer buying preferences, and barriers to entry to served markets;
  • Evaluate management strength, structure, and depth.  The consultant will explore the decision-making process, training and cross-training, management capability and capacity to effectively lead the business in a sustainable growth mode, management systems and processes, and general leadership capabilities;
  • Determine the requirements for the successful business continuation including and not limited to finance, organization, skills, public sector inputs, infrastructure, support services, and equipment and tools required to run;
  • Assess the service provider’s ability to operate effectively and efficiently at current and projected volume levels. 
  • The consultant will evaluate process documentation and control, the ability of the service provider to handle future growth, the service provider’s supply chain, and the way physical assets are deployed and maintained;
  • Determine the extent to which capacity building and human resource development is required to ensure continuity of water service in Rulindo;
  • Determine possible barriers to water business in Rulindo including tariff, political and socio-cultural factors;
  • Analyze service provider financials and make recommendations.

3.    Expected outputs 

  1. Situational analysis report;
  2. Financial analysis report;
  3. Service provider and service authority capacity building/development plan;
  4. Business analysis, plan and projections. The consultant will provide:
    1. Analyzed expenses highlighting the costs for providing the water service in Rulindo supported by a cash-flow statement;
    2. Analyzed income projections: The consultant will report on the physical money moving in and out of the business based on sales forecasts, balance sheet items, and other assumptions. Analyze profit and loss statements and balance sheets from past years to serve as a basis for the forecasts;
    3. Analyzed assets and liabilities: The consultant will analyze assets and liabilities that aren't in the profits and loss statement and project the net worth of service provider business in the next five years;  
    4. Breakeven analysis report and recommendations that will lead to a better financial planning for water business in Rulindo District.

4.    Methodology

Part of the methodology that the consultant will use for this assignment is captured in section 2 (scope of work), but the consultant is expected to propose a more detailed and appropriate methodology in his/her technical proposal.

5.    Required competencies and Expertise 

Eligible Consultants should have the following qualifications and experience:

  1. Qualifications of key personnel:
  2. One (1) Financial Analyst, Economist or Certified Accountant with at least 10 years’ work experience or Masters with 5 years’ experience; and 
  3. Electromechanical Engineer or Electrical Engineer, A0 with 10 years’ experience or Masters with 5 years’ experience.

b)    Experience of the consultancy firm/individual consultants 

  • At least three (3) assignments successfully completed in business analysis;
  • At least two (2) water business viability analysis successfully completed in East Africa;
  • A similar assignment successfully completed in Rwanda would be an added advantage.

6.    Timeframe

This assignment is planned to be completed in a period not exceeding Sixty (60) calendar days counted from the signature of the contract. Below are the major steps of the process:

  • Submission of proposals, 22nd June 2018;
  • Commencement of contract, 3rd July 2018;
  • Submission and presentation of an inception report: 18th July 2018;
  • Submission and presentation of draft report: 31st August 2018;
  • Submission of final draft report:  14th September 2018.

7.    Proposal submission

Interested consultancy firms/individual consultants will hand deliver technical and financial proposals to Water For People’s office located in Rukatsa Village, Rukatsa Cell, Kagarama Sector, Kicukiro District, KK15 Rd, KK 371, KK 399 St. or send their bid documents via email at rwanda@waterforpeople.org not later than 22nd June 2018 by 5pm local time. 

Content of the technical proposal

The technical proposal will include, but will not be limited to the following:

  • Presentation of the firm /consultant;
  • Major comments on the Terms of Reference (only in case they can have any significant impact on the process and/or on the result);
  • Relevant references of the consultant;
  • Detailed methodology and work schedule for the assignment;
  • Detailed CV of the consultant’s team.

Content of the financial proposal

The financial proposal shall present in detail the following items and related cost in Rwandan Francs (RWF).

  • Number of working days;
  • Honorary per day and total;
  • Travel Allowances;
  • Transportation cost;
  • Office expenses;
  • Communication fees.

                                            Kigali, 31st May 2018