Terms of Reference (TOR)

for

National Market Assessment for Low Cost Desludging Equipment and Vehicles in Bangladesh

Project: Up scaling Faridpur City best practices and continued support in Faridpur City, Bangladesh

1. Project Background

The Government of Bangladesh recently approved an institutional and regulatory framework for safe management of faecal sludge. The framework strongly encouraged municipalities and city corporations to replace manual system and introduce mechanical emptying services and safe transfer and disposal of collected sludge in treatment plants. Pumps, motors, equipment, and vehicles are required for mechanisation of emptying, storage, transfer and disposal of sludge. In last few years, LGED, DPHE, WASAs and a very few INGOs with support from development partners demonstrated few technologies i.e desludging trucks, vacutag, vacuum pumps for mechanisation of the faecal sludge management services. The cost of these mostly imported technologies are beyond the affordability of Urban LGIs in Bangladesh. Local capacity and availability of after sales services is also an issue for long-term operational sustainability of these technologies.

To address above challenges, Practical Action Consulting Ltd. piloted low cost, decentralised equipment, pumps and transporters and technologies in its innovation centre and tested in Faridpur and Satkhira municipality and found good feedback from emptiers despite few challenges. A number of technical and sanitation experts are continuously working to address the feedback from emptying service providers and users.

A number of attempts by the GoB, development partners and INGOs have been initiated recently to bring formal and informal private sectors for delivering improve mechanical emptying services and other functions of an effective faecal sludge management services in partnership with municipalities/city corporation and WASAs.

The light engineering, manufacturing and automobile industry in Bangladesh is growing for mechanisation of many sectors but yet in safely managed sanitation sector. This is because of not having any formal study on the potential of this sector.
   
Practical Action Consulting Ltd. is also looking for consultant(s) who will study to assess the market for desludging equipment, machines and vehicles. The objective of the study is to identify market size, capacity of market actors, identify relevant desludging technologies, market challenges and identify effective commercialization strategies. It is expected that this assessment will generate knowledge on market systems including value chain actors, support services and business environment. The outcome of the study will also be shared with the private organizations and financing institutes who have wiliness to participate and invest in this business.

2. Key objective of the study

The main objective of this assessment is to study the market stakeholders, such as value chain actors, policy makers, key enablers, possible competitions, customer segments and product demand for desludging machines and vehicles. The study would generate recommendations for entry, growth and mature operations through the market which can be utilised by relevant private companies to commercialize the technology. The study findings are required to be documented in brief, precise and understandable to non-technical people.

3. Specific Objectives of this study

• In consultation with relevant private sector companies, determine the scope of study
• Stocktaking of existing technologies¹ are used for desludging, transportation and disposal of sludge with cost and operational performance
• To draw a market map and identify actors in value chain, assess business environment and support services
• To define competition exists in the market and future market opportunities for entry and growth;
• To determine market profitability for entrepreneurs to establish business for manufacturing and after sales
• To identify the investment requirement and opportunities by relevant stakeholders in this sub sector

4. Scope of Work

To assess the national market, it is expected from the consultant(s) to include following topics but not limited with these.

• Identification of technologies available and being used, learning and challenges from application of these technologies
• Identification of national and regional manufacturers, suppliers and their marketing strategies  
• To assess the level and quality support/after sales services provided by manufacturers and marketing/local agents
• Identify the market stakeholders and draw market map to assess the capacity of actors involved in value chain, policy and business environment and supporting services
• Identification of Customer segments available in the market and analyze their procurement strategy  
• Assess regulatory and policy aspects which need to be taken care for establishment and operations of manufacturing/assembling business
• Market activation requirement for making entry and growth into the emptying machine business;
• Develop a business plan (short term, mid-term, and long term) for private sector companies  discussing with a private sector company suggested by Practical Action (e.g. how development organization can work with private sector companies, how private companies can develop a commercialization plan collaborating with a development organization and how to ensure sustainability in the private sector companies’ business)

The study need to include representative case study(ies) to understand success/failures in this subsector to build on for designing new investment programmes                                                                                                                   

5. Methodology

It is expected that the consultant(s) will develop their own methodology to conduct the national market assessment utilising both primary and secondary research methods. Practical Action will evaluate the proposals to see if the methodology covers the scope of works. The study is expected to be covering following chapters:

• Current Market Status;
• Market Competitiveness;
• Customer Group Status; and
• Market Opportunity

Along with the chapters mentioned, the study will cover the necessary areas required to understand the total situation of the market.
 

6. Outputs/ deliverables

• Consultation meeting with selected private companies to determine scope of study;
• A report document describing national market assessment with necessary graphs and figures;
• A MS-Powerpoint presentation describing key elements of the report;
• A two-pager document presentation describing key findings of the report.

7. Indicative timeframe

The selected consultant/firm will develop a detailed work plan and timeframe, and seek approval from Practical Action. However, the assignment needs to be completed by 15 November 2018. A tentative timeframe is added in the table below.

8. Coordination and reporting

The Consultant/firm will report to Mr. Md. Shareful Hassan, Manager- Monitoring & Evaluation, Learning and Research (MELR) for all sorts of communication and technical aspects. He can be reached through Shareful.Hassan@practicalaction.org.bd. For anything related to the project, Mr. Saif Ansari (saif.ansari@practicalaction.org.bd) can also be contacted.

9. Eligibility: The consultant/ firm must have

• At least 5 consultancy experience in conducting market assessment study. 3 out 5 experiences must be national level market study experience;
• Lead consultant must be a marketing or business professional having academic background in business, marketing or economics related field. The lead consultant must also have at least 10 years of experience of conducting business analysis, market assessment, value chain etc. consultancy;
• Consultant or team with prior knowledge on desludging technologies will be given more preference;
• The team should have strong proficiency in conducting market assessment and recommending marketing strategies.

10. Payment and Financial Modality  

• The payment for the consultancy will be made through check. All TAX and VAT will be deducted at source at the rate of movement of Bangladesh order for the year.
• 30% of the total budgeted amount will be paid on receipt of detailed methodology, survey tools and satisfactory work plan.  
• The remaining sum will be paid on receipt of a satisfactory final report presentation and submission. The payment will be done through account payee cheque.

11. Proposals evaluation

A proposal including both technical and financial aspects should be emailed to practicalaction@practicalaction.org.bd by 04 October 2018. Please include a detailed CV of the experts (only) highlighting relevant experience. No late and hard-copy submissions will be accepted. Practical Action reserves the sole right to select the consultant.