Description

Background:

Mercy Corps is a leading global organization powered by the belief that a better world is possible. In disaster, in hardship, in more than 40 countries worldwide, we partner to put bold solutions into action - helping people triumph over adversity and build stronger communities from within.

Mercy Corps has been operating in Ethiopia since 2004. In partnership with civil society organizations, academic institutions, private sector, and the government, Mercy Corps Ethiopia has reached more than five million Ethiopians with interventions to save lives and build secure livelihoods. Our programs emphasize market-driven solutions, reinforce social bonds, and help communities build resilience to the impacts of climate change. Currently in six regional states – Afar, Amhara, Gambella, Oromia, Somali, and South Nations, Nationalities and People’s Region (SNNPR), and in Dire Dawa Administration and the capital city of Ethiopia, Addis Ababa – Mercy Corps is driven by the mission to contribute the emergence of a peaceful, resilient, and prosperous Ethiopia which is inclusive of youth and women. Our strategic interventions focus on promoting inclusive and dynamic markets; promoting peace and social cohesion through strengthening formal/informal governance structures and citizen engagement; improved natural resource governance; and integrated humanitarian response.

Purpose / Project Description:

Mercy Corps seeks a Public-Private Partnerships (PPP) Expert for the Hilton Foundation-funded Research for Innovative and Sustainable Water in Ethiopia (RISE) project. The project will work to establish and strengthen reliable, affordable, and sustainable water supply services in the targeted woredas (Dera, Farta, and North Mecha) by exploring the potential of Public-Private Partnerships (PPPs). While PPPs are considered an alternative approach to enhance water service delivery by mitigating capital constraints in resource-limited environments, the Mercy Corps team recognizes that the model must be fit for purpose to ensure successful PPP implementation. Various PPP arrangements, including management contracts, leases, and full concessions, can crowd in additional resources and expertise needed to improve water service quality and delivery. While PPPs can improve water supply services' functionality and sustainability, the PPP model's viability and type must be selected based on key enabling factors and local market characteristics. To better determine those factors and validate the appropriate PPP model, the RISE team will conduct a series of evaluations before establishing any PPP model(s).

Consultant Objectives:

To assess the viability of a PPP model, RISE will employ a systematic approach, beginning with a series of interrelated comprehensive evaluations across the three target woredas. These evaluations will be guided by five key categories of enabling factors:

Technical Feasibility Report: Assessing the current condition of water supply infrastructure in the target areas and identifying necessary investments and rehabilitation efforts to enhance functionality and expand coverage.
Market Demand: Examining the demand for water supply services in the three woredas, including variations across different regions and population segments. Factors influencing water consumption patterns and affordability will also be explored.
Policy and Regulatory Framework: Analyzing existing policies, regulations, and institutional frameworks related to water supply, PPPs, and rural development at both the national and regional levels. This assessment will determine how these policies either support or hinder the implementation of a PPP model for water supply service delivery.
Stakeholder Commitment and Capacity: Evaluating the readiness and capacity of local stakeholders, such as government agencies, private sector entities, and community-based organizations, to engage in a PPP model for water supply services. This assessment will also identify potential roles, responsibilities, and levels of commitment among these stakeholders.
Financial Analysis Identifying the financial constraints and risks associated with implementing a PPP model across the three woredas. This evaluation will explore potential revenue streams and funding sources to ensure sustainability, affordability, and future expansion of water supply services.
Economic Analysis: Conducting a thorough examination of costs, benefits, and broader economic implications. This analysis will assess the affordability of services, sustainability, and potential funding sources while addressing risks and conducting scenario analyses. This analysis is essential to determine the economic viability and long-term benefits of the proposed PPP model for the communities involved.

The PPP Expert will serve as the subject matter expert for the full PPP evaluation (inclusive of all four assessments) to determine the viability and typology of a potential water PPP in Amhara, Ethiopia. S/he will be responsible for leading and/or developing the Terms of Reference for a series of assessments, reviewing assessment deliverables, providing feedback on deliverables, and comprehensively analyzing and synthesizing all the assessments to develop recommendations for the PPP model to inform its potential design. The PPP Expert will provide iterative technical guidance to field staff and local vendors as they conduct the assessments, ensuring the program has the critical information and data needed to properly assess the viability and structure of the PPP.

Consultant Activities & Deliverables:

The following separate but interrelated tasks will be conducted by the Consultant:

Task 1 – PPP project screening (~25 days of Level of Effort (LOE))

This phase aims to identify a shortlist of potential and viable PPPs. These are projects that generate support from stakeholders, are ready to be implemented, and can serve as proof of concept for other PPP projects in the sector. The Consultant will:

· Conduct a desk review of potential projects and context.

· Develop the project screening and prioritization methodology. The methodology should:

· Screen out projects that are either not a priority, or that are not suitable for a PPP structure.

· Prioritize, out of the projects that have not been screened out, which ones are most suitable to move ahead.

· The criteria may include, for example, the economic justification of the project, the legal feasibility of the project, the potential bankability of the project, its potential to attract private investors, project readiness, and the compatibility with criteria relating to socio-environmental aspects. Certain characteristics are essential to any strong and attractive PPP. If a project lacks a critical feature, and if it does not seem easy to address this gap in the short term, the Consultant should suggest eliminating it for the time being and postpone its review to a later date if appropriate. The Consultant will propose a methodology that uses a non-compensatory approach.

· Prepare a long list of approximately 8 projects suitable as PPPs. Shortlist approximately five projects and prioritize three projects for further technical study. The long list should be refined in partnership with the Ethiopia RISE Team Lead and Market Systems Development (MSD) Specialist through consultations with government counterparts.

Task 1 Deliverables:

· Brief inception report/work plan outlining approach to desk review and screening methodology development.

· Project screening and prioritization methodology.

· Project list in Excel format. Rows will list the identified projects, and columns will describe the characteristics of the projects, for example, project type, service to provide, estimated capital cost, and status. Identify the environmental and social obstacles that may jeopardize the feasibility of the most promising projects in the pipeline.

· Communication with Mercy Corps via scheduled telephone calls and meetings.

· Contribute to donor reports as requested.

Task 2 – Support Technical Feasibility Study (~8 days of LOE)

Based on the outcome of the initial PPP project screening, three projects will be identified to undergo a detailed legal, financial, economic, market, and technical analysis. This task includes preliminary activities related to reviewing and commenting on the technical feasibility’s terms of reference and inception report(s) to ensure appropriate data is collected. Review draft feasibility study to ensure inputs to financial and economic analysis are available and, if not, assist in determining how or if this information could be gathered alternatively. The Consultant should plan to establish and attend regular coordination meetings with Feasibility Report consultant/firm during which cost information is to be acquired and reviewed.

Task 2 Deliverables:

Comments on technical feasibility study TOR(s), inception report(s), and draft report(s).
Serve on the evaluation committee for feasibility study bids.
Meeting summary of meetings with engineering firm to coordinate estimates on probable construction cost, design life and O&M costs for each project element.

Task 3 – Market Demand Assessment (~15 days of LOE)

Evaluate water demand and population growth trends of the three identified potential PPP projects using available data sources. Coordinate projections with the feasibility study consultant/firm. Assess demand from residential customers as well as commercial customers including water truckers.
Develop methodology and questionnaire for affordability and willingness-to-pay (WTP) survey to gather insights on pricing sensitivity and customer preferences in the respective market(s). The questionnaire will be used to collect information from each project’s identified beneficiaries (households, farmers, industries, etc). The questionnaire should include four parts:
Demographic data
Water and sanitation needs for private consumption, irrigation, business and others
Current sources for water, sanitation, and irrigation services, prices paid, and willingness to pay for services
Other information related to households, farming, or business activities

This task will include technical support and guidance during data collection and processing for enumerator firm.

Support the procurement and selection process for an enumerator firm to conduct the affordability and willingness-to-pay surveys. This includes review of the TOR, serving on the bid evaluation committee, and provide technical oversight and support during enumerator training and data collection and processing.

Task 3 Deliverables:

· Affordability and willingness-to-pay survey methodology, questionnaire, and guidance note.

· Market demand forecast reports, including water demand, population growth trends, and customer preferences for three project sites.

· Summary of meeting with engineering firm to coordinate population projections and demands.

· Communication with Mercy Corps via periodic telephone calls and meetings.

· Contribute to monthly and quarterly reports.

Task 4 – Perform Policy and Regulatory Assessment (~15 days of LOE)

The policy and regulatory assessment will culminate in a legal due diligence report. The Consultant will survey all relevant legal and regulatory aspects that may affect the viability of the projects. The assessment will consider a range of issues including:

Whether the applicable legal, regulatory and institutional framework permits the implementation of the proposed projects as PPPs and the extent to which the proposed contracting authorities’ functions or use of public property can legally be performed by a private party in a possible PPP.
Recommendations on the mandatory project approvals and consents from relevant regulatory bodies.
Investigation of any regulatory matter such as tax, labor, environmental, foreign exchange, local content, public participation, competition, power sector, ICT and communications and other legislations that may impact or impede the private party’s ability to deliver the projects as expected.
Identification of all potential legal and regulatory risks to the projects and relevant mitigation measures.
Appropriate institutional arrangements for the projects, taking into consideration the roles and responsibilities of the proposed contracting authority and other government agencies and entities as well as the private party.
Ascertain the powers conferred on the proposed contracting authority to award and enter into long-term contracts, including the commitment of long-term budgetary appropriations.
Advice on matters relating to site and land use and planning consents specific to the proposed projects.
Advise on environmental, social and governance (ESG) legal and regulatory aspects including potential risks.
Advice on statutes relating to general commercial, contract, and banking law suitable to support PPP project financing. The solutions presented in the due diligence report should sit within the existing legal and regulatory framework in Ethiopia. If a project requires a change to statutes, then it will be removed from the list of potential projects.

Task 4 Deliverables:

Due diligence report, identifying risks, necessary approvals, licenses, compliance measures, and risk mitigation strategies. See the below Timeframe / Schedule section for further details.

Task 5 – Stakeholder Commitment and Capacity Assessment (~25 days of LOE)

It is critical that the program assesses the commitment and capacity of potential PPP project’s contracting authorities. To do so, the Consultant will work with the MSD Specialist to identify any institutional barriers to the projects, such as the contracting authorities’ capacity gaps (technical, financial, etc.) and possible solutions. In doing so, the Consultant will assess the contracting authorities’ strengths and weaknesses as relevant to each of the projects’ development and implementation. Based on these findings, the Consultant will develop a diagnostic report and a capacity building plan that will be incorporated into the design and implementation of the project’s next phase.

Task 5 Deliverables:

Design a comprehensive questionnaire for rapid key informant interviews (KIIs) to assess knowledge and interest in PPPs of potential contracting authorities and other relevant institutions (local financial institutions and private sector).
Design capacity (financial, technical, etc) assessments methodology for local government, private sector entities, and local financial institutions.
Provide technical support and oversight to the MSD Specialist as they conduct the capacity assessments.
Diagnostic report. See the below Timeframe / Schedule section for further details.
Capacity building plan that should include a PPP Readiness Checklist for potential contracting authorities.
Design and support the rollout of PPP training for potential contracting authorities. See the below Timeframe / Schedule section for further details.

Task 6 – Financial Analysis (~10 days of LOE)

The Consultant will provide technical oversight for the financial analysis of the three shortlisted projects. The Consultant will:

Develop the TOR for a financial model to determine full cost recovery tariff and estimate, if applicable, the viability gap funding. The Consultant will be responsible for overseeing the selection/recruitment of a qualified external consultant. The model will be based on:
Demand projections
Capacity requirements
Cost estimates
Financing assumptions
Provide oversight and quality assurance for the financial model to determine the full cost recovery tariff and estimate viability gap funding required if cost recovery tariff is greater than the tariff determined through the affordability and WTP study.

Task 6 Deliverables:

Comprehensive TOR for a financial modeler
Financial Analysis Report
Financial Model

Task 7 – Economic Analysis and Recommendations (~12 days of LOE)

Estimate economic costs and benefits associated with all three projects and all system elements to calculate the economic EIRR.
Develop financial projections for PPP projects, including income statement, balance sheet, and statement of cash flows for 10 years.
Conduct an analysis using financial metrics such as net present value (NPV), internal rate of return (IRR), and profitability ratios. Consider strategic factors, program objectives, stakeholder interests, and long-term strategic planning.

Task 7 Deliverables:

Economic analysis report, including financial projections, comparative analysis using financial metrics, and consideration of strategic factors and stakeholder interests.
Two-to-three-page brief summarizing the project and findings. See the below Timeframe / Schedule section for further details.

Level of Effort:

The total level of effort for Tasks 1-7 is estimated to be ~110 days.

Travel:

This assignment will include no more than five in-country trips. Travel and per diem costs will be in line with Mercy Corps class of travel and policies. All travel plans must first be approved by the Ethiopia RISE Team Lead.

Timeframe / Schedule:

Task 1 – PPP project screening

· Brief inception report/work plan outlining approach to desk review and screening methodology development

o Detailed work plan for the full assignment in GANNT chart form with accompanying narrative not to exceed 10 pages. A single annex, no more than 3 pages, outlining the approach to the desk review and screening methodology development.

o Due 14 days after consulting agreement is fully executed.

· Project screening and prioritization methodology

o Content and format to be agreed with during kick-off meeting with RISE team.

o Due 20 days after consulting agreement is fully executed.

· Final project list in Excel format

o Rows will list the identified projects, and columns will describe the characteristics of the projects, for example, project type, service to provide, estimated capital cost, and status. Identify the environmental and social obstacles that may jeopardize the feasibility of the most promising projects in the pipeline.

o Due January 15, 2024

Task 2 – Support Technical Feasibility Study

· Comments on technical feasibility study TOR(s), inception report(s), and draft report(s)

o Detailed and robust comments on the technical feasibility study in excel format. Comments should focus on coordination and data input needs to ensure alignment with economic studies.

o Due within 1 week of receiving documentation.

Task 3 – Market Demand Assessment

· Affordability and willingness-to-pay survey methodology, questionnaire, and guidance note

o Methodology: This document outlines the structured approach and techniques employed to conduct an in-depth affordability and willingness-to-pay survey. It will encompass sampling strategies, data collection methods, and statistical analyses, ensuring accurate insights into target demographics' financial capacity and purchasing inclinations.

o Questionnaire: This questionnaire should be comprehensive in its scope to capture critical insights into potential customers affordability thresholds and their willingness to pay for specific products/services. The questions employ a mix of Likert scale, open-ended, and multiple-choice formats to elicit nuanced responses that inform pricing and market strategies.

o Guidance Note: The guidance note should provide step-by-step instructions for implementing the affordability and willingness-to-pay survey aimed at enumerator firm staff. It will provide context on survey objectives, tips for effective administration, and recommendations for data collected, management, and processing.

o Due 10 working days after PPP shortlist is finalized.

· Market demand forecast outline

o Proposed outline of Market Demand (MD) report.

o Due 10 working days after all WTP survey data is processed, cleaned, and finalized.

· Market demand forecast report

o Final report and slide deck

o Due five working days after the MD outline is approved in writing by the RISE Team Lead and Global Water Security Director.

Task 4 – Perform Policy and Regulatory Assessment

· Policy and regulatory analytical framework

o Proposed framework and methodology for analyzing the policy and regulatory environment for PPPs in Amhara’s water sector.

o Due February 10, 2024

· Policy and regulatory assessment report outline

o Proposed report outline.

o Due May 31, 2024

· Consultant must have written approval of outline from the Team Lead and Global Water Security Director before finalizing report.

· Due Policy and regulatory assessment final report/Due Diligence Report

o Final report and slide deck.

o June 30, 2024

Task 5 – Stakeholder Commitment and Capacity Assessment

· Comprehensive questionnaire for rapid KIIs

o Content and format to be agreed with RISE Team Lead, Global Water Security Director, and MSD Specialist.

o Due February 29, 2024

· Capacity assessment methodology

o Content and format to be agreed with RISE Team Lead, Global Water Security Director, and MSD Specialist.

o Due April 1, 2024

· Diagnostic Report

o Content and format to be agreed with RISE Team Lead and Global Water Security Director.

o Due August 5, 2024

· PPP Readiness Checklist

o Content and format to be agreed with RISE Team Lead and Global Water Security Director.

o Due September 10, 2024

· PPP Training Materials

o Content and format to be agreed with RISE Team Lead and Global Water Security Director.

o Due October 20, 2024

· Capacity Building Plans

o Content and format to be agreed with RISE Team Lead and Global Water Security Director.

o Due November 10, 2024

Task 6 – Financial Analysis

· Comprehensive TOR for a financial modeler

o Develop detailed TOR for financial modeler. The TOR should include detailed scope of work with deliverables/milestones, timeline, estimated LOE, and evaluation criteria.

o Due April 15, 2024

· Financial Analysis Report inclusive of Financial Model

o Content and format to be agreed with RISE Team Lead and Global Water Security Director.

o Due September 1, 2024

Task 7 – Economic Analysis and Recommendations

· Economic Analysis Report Outline Proposed report outline

o Due August 15, 2024

· Consultant must have written approval of outline from the Team Lead and Global Water Security Director before finalizing report.

· Economic Analysis Report

o Final report and slide deck

o Due September 15, 2024

· 7a Briefer outline

o Proposed outline

o Due September 15, 2024

· Consultant must have written approval of outline from the Team Lead and Global Water Security Director before finalizing report.

· 7b Briefer

o Final report and slide deck

o Due September 30, 2024

The Consultant will report to:

Team Lead (with support from Global Water Security Director)

The Consultant will work closely with:

Entire RISE team, Global Water Security Director, MSD Specialist, Global Infrastructure team, and administrative/operations team

Required Experience & Skills:

Education and Expertise

Advanced degree (master's or Ph.D.) in business administration, public administration, economics, finance, or a related field is highly preferred.
Proven expertise in conducting business case assessments, economic analyses, and financial modeling for infrastructure projects, preferably with a focus on water, wastewater management or energy.

Professional Experience

· A minimum of eight years of professional experience in developing or advising on small-scale PPPs, preferably in the energy sector, water sector, or a related field.

· Knowledge of PPP and delegated management models, including advantages, challenges, and best practices.

· Experience supporting multiple PPPs to financial and commercial close is highly preferred.

· Familiarity with relevant laws, policies, and regulations for infrastructure development and PPPs in Ethiopia is preferred.

Proven track record of delivering high-quality economic analysis reports, including key financial metrics (NPV, IRR, etc.) and strategic recommendations.

Analytical Skills

Knowledge of regulatory frameworks and compliance requirements related to water supply and/or energy projects.
Strong analytical and quantitative skills, with the ability to interpret complex data and financial information accurately.
Proficiency in using financial analysis tools, spreadsheets, and software for economic modeling and forecasting.
Capability to conduct sensitivity analysis and scenario planning to assess the impact of various variables on the project's economic viability.

Communication and Reporting

Excellent written and verbal communication skills to effectively convey complex economic concepts to diverse stakeholders.
Creating and maintaining a conducive and participatory environment for the group process, using appropriate methods and tools to engage the participants, encourage dialogue, and foster collaboration.
Demonstrated ability to create clear and concise reports, presenting complex economic analysis findings in a straightforward manner.

Project Management

Experience in managing projects and meeting deadlines effectively.
Demonstrated ability to work independently and collaborate with multidisciplinary teams.

Sector-specific Expertise

Prior experience working on water infrastructure projects, water resource management, or water-related initiatives in a similar context would be advantageous.
Understanding of the specific challenges and opportunities in Ethiopia’s water sector is highly preferred.

Recruitment Process:

All applicants will undergo an initial review to ensure alignment with the job's requirements. Candidates who advance from the initial screening will be invited to provide a detailed concept note. This should be succinct, capped at 5 pages, illustrating their approach and understanding of the assignment. Alongside the concept note, shortlisted candidates should include a well-structured GANNT chart. This chart will provide a visual timeline showcasing the proposed steps and timeline to achieve the specified deliverables. Both the concept note and GANNT chart will play a crucial role in evaluating the candidate's strategic planning and project management capabilities.

Shortlisted candidates will also be asked to provide references from previous clients or employers. These references should be able to confirm the consultant's proficiency in conducting assignments of similar scope and size. In addition, candidates should present a portfolio containing past reports they have successfully completed. This will allow for an evaluation of their depth of experience and the quality of their past work.

**Diversity, Equity & Inclusion
**Achieving our mission begins with how we build our team and work together. Through our commitment to enriching our organization with people of different origins, beliefs, backgrounds, and ways of thinking, we are better able to leverage the collective power of our teams and solve the world’s most complex challenges. We strive for a culture of trust and respect, where everyone contributes their perspectives and authentic selves, reaches their potential as individuals and teams, and collaborates to do the best work of their lives.

We recognize that diversity and inclusion is a journey, and we are committed to learning, listening and evolving to become more diverse, equitable and inclusive than we are today.

Equal Employment OpportunityWe are committed to providing an environment of respect and psychological safety where equal employment opportunities are available to all. We do not engage in or tolerate discrimination on the basis of race, color, gender identity, gender expression, religion, age, sexual orientation, national or ethnic origin, disability (including HIV/AIDS status), marital status, military veteran status or any other protected group in the locations where we work.

Safeguarding & EthicsMercy Corps team members are expected to support all efforts toward accountability, specifically to our stakeholders and to international standards guiding international relief and development work, while actively engaging communities as equal partners in the design, monitoring and evaluation of our field projects. Team members are expected to conduct themselves in a professional manner and respect local laws, customs and MC's policies, procedures, and values at all times and in all in-country venues.