Comprehensive Market Assessment, Feasibility Study & Business Plan Documents for Water Well Drilling in Ethiopia At Netherlands Red Cross

Netherland Red Cross Society

Terms of Reference (ToR)

for

Consultancy Service of Conducting Comprehensive Market Assessment, Feasibility Study & Business Plan Documents for Water Well Drilling Income Generating Business of the ERCS

1. Introduction

The Netherlands Red Cross (NLRC) is seeking an experienced consultant agency or individuals in Ethiopia to support Ethiopia Red Cross Society (ERCS) with conducting of market feasibility and develop a business plan for water drilling services in Ethiopia. This assignment is part of ERCS efforts to a WASH utility unit. Specifically the consultant is to undertake a comprehensive market assessment to establish the level of demand for the water well drilling income generating business and prepare a scientific feasibility study the market and the viability of operating a viable water drilling services in Ethiopia.

2. Objectives of the Consultant for Establishing a Water Drilling Rig Business Unit for ERCS

The consultant will be responsible for conducting a thorough market analysis and developing a comprehensive business plan to establish a sustainable water drilling rig business unit for ERCS.

Specific Objectives and deliverables

2.1 Market Analysis of Water Drilling Services in Ethiopia

• Assess the current business environment for water drilling services, including demand and supply dynamics, regulatory frameworks, and industry trends.
• Identify key market players, their operational models, and competitive advantages.
• Evaluate the types, availability, and costs of water drilling machines and technologies in the Ethiopian market.
• Analyze investment requirements, revenue potential, and cost structures for operating a water drilling service.
• Assess pricing trends, service frequency, and potential customer segments, including humanitarian, government, and private sector clients.
• Identify potential challenges and risks in the market, including logistical, operational, and financial constraints.

2.2. Development of a Comprehensive Water Drilling Service Business Plan for ERCS

• Define the mission, vision, goals, and objectives of the ERCS water drilling business unit.
• Develop a business model that outlines service offerings, pricing strategies, and operational approaches.
• Establish an organizational structure, including roles, responsibilities, and required human resources.
• Formulate a marketing and sales strategy to position ERCS competitively in the drilling sector.
• Identify potential funding sources and financial sustainability mechanisms.
• Provide a detailed financial analysis, including investment requirements, revenue forecasts, cost estimates, and profitability projections.
• Develop an operational plan, including procurement, logistics, and service delivery mechanisms.
• Outline a risk management strategy to address potential operational, financial, and regulatory challenges.

These deliverables will provide ERCS with a clear roadmap to establish and operate a successful and sustainable water drilling business unit, ensuring both financial viability and alignment with its humanitarian mission.

3. Deliverables of the assignment

As deliverables of the consulting engagement, the consulting firm will be providing the following deliverables:

1. An inception report presenting detail description on the understanding of the assignment with clear methodology to undertake and confirming the deliverables, assigned team of consultants and plan of actions for completing the project
2. A comprehensive market assessment report
3. A business plan for ERCS Water Drilling Services in Ethiopia

4. Time frame

For the completion of this task, the consulting services will be offered a total of 60 calendar days from the date of signing of the contract. The inception report is due within 10 calendar days of signing the contract.

5. Management and Roles & Responsibilities of the Consultancy

The consultancy contract will be managed at NLRC Head Quarters in the Haque and in collaboration with ERCS, the NLRC through its Ethiopia Country will provide strategic, operational and technical guidance, while the consulting firm will be responsible for executing the project with professionalism and adherence to agreed timelines.

Specifically:

5.1 NLRC and ERCS

• Provide overall project coordination, monitoring, and evaluation.
• Supply necessary information, feedback, and logistical support.
• Review and validate deliverables, ensuring alignment with project goals.

5.2 Consulting Firm

• Deploy qualified experts, tools, and resources for the assignment.
• Submit draft and final reports, incorporate feedback, and present findings at validation workshops.

6. Qualifications/ Eligibility requirements

• An interested consulting firm/institution/Enterprise/ or company applying for the mentioned consultancy assignment should have proven previous work experience in undertaking similar assignments.
• Must have a legally established office or representation in Ethiopia
• The consulting firm meets the eligibility criteria and can demonstrate its capacity and readiness to undertake assignment should ensure having the following qualification and experiences.

6.1 Relevant Experience Requirements

• Proven Expertise: Minimum 10 years of experience in market assessments, feasibility studies, and business planning for private, humanitarian, or government sectors.
• Qualified Team: Must deploy experts in marketing, business administration, engineering, hydrogeology, and environmental science, led by an experienced consultant.
• Strong Track Record: Demonstrated success in delivering similar projects, supported by achievement testimonials.
• Sector Knowledge: Deep understanding of Ethiopian WASH business management and familiarity with humanitarian organizations in Ethiopia
• Ethical Compliance: Adherence to confidentiality, ethical standards, and conflict of interest policies.

6.2 Expertise and Qualifications:

The Consultants – the Lead Consultant:

• The lead consultant should have a minimum of a Master’s degree or equivalent in Business Administration, Marketing Management, Management, Economics & related fields.
• The lead consultant shall have a minimum of 5 years of demonstrated experience leading or coordinating similar consultancy assignments.
• The lead consultant should possess a minimum of 3 years of demonstrated experience in undertaking consultancy assignments of a comprehensive market assessment, feasibility study & preparation of business plan for new business venture establishments.

Additional team composition

• At least one team Hydrogeologist with good understanding of Ethiopia context
• One water/civil engineer with experience in water drilling activities in Ethiopia

The applicant is to submit the following documents to the below mentioned contacts:

6.3 Technical Proposal

A technical proposal containing , at a minimum, the following details: Company background, comprehension of the Terms of Reference (ToR), the firm’s track record in handling comparable assignments, a catalog of successfully executed consultations/contracts along with their references, a lucid description of the approach, methodology, and work plan for the contract execution, team composition, and a concise summary of information along with the curriculum vitae of the proposed professionals.

6.4 Financial Proposal

A separate financial proposal, cross-referenced with the technical proposal, is required. It should comprise total costs, a cost summary, and a breakdown of eligible costs (including VAT and other applicable taxes) to facilitate cost analysis

6.5 Ethical Consideration

Ethical considerations play a pivotal role in guiding the conduct of the assignment to conduct ERCS keeps the principles such as confidentiality, informed consent, and equity to ensure that all stakeholders’ rights and interests are respected throughout the project. The consultative firm must commit to safeguarding sensitive information, obtaining informed consent from participants, and promoting fairness and inclusivity in all aspects of the assignment. By adhering to those ethical considerations, the consulting firm aims to conduct the assignment with integrity, professionalism, and a steadfast commitment to ethical conduct, ultimately fostering trust, accountability, and positive outcomes for all stakeholders involved.

Please submit your application via email to: logistics@recross.nl

Analysis Criteria

– Evaluation criteria focusing on the practical approach of bid

– Evaluation criteria focusing on the theoretical methodology of bid.

– Capacity of proposal to meet all deliverables and objectives set out in ToR.

– Proposal shows understanding of the way NLRC and the RCRC Movement operate.

– Service Provider has proven experience carrying out similar assignments.

– Service Provider has experience working in the similar regions and contexts.

– Quality of previous work examples.

– Team Leader has relevant degree and at least 5 years’ experience within the required field.

– Concise, well written proposal in language matching ToR.

– Layout and presentation of proposal.