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African Development Bank

Official Publication Evaluation Report of submissions for ADB AFT project Project 7014

Jul , 9
Official Publication Evaluation Report of submissions for ADB AFT project Project 7014

The notice services as official publication of receipt of REOI for evaluation and the processes for such evaluation (ranking, scoring, rules,etc).

 

NAME OF RECIPIENT:      Go Africa LLC / GOAE Trading Limited                            DATE:

Evaluation Report on Consultant’s Qualification Method of Selection: (open publication

Country:  Nigeria

 

Project Name: CASHEW FEASIBILITY STUDY

 

Source of Funds: Agriculture Fast Track Fund (AFT)

 

Title of Consulting Services:  Feasibility Study for;

1. Technical, 2. Marketing, 3. Financial and 4. Environmental Social Impact

For [Cashew processing Plant in Nigeria] Project

Date of Submission: ……07/08/2019

 

 

Background:

GOAE Trading Limited / Go Africa LLC and its affiliates (the “Company”) GOAE Trading Limited / Go Africa LLC seeks to develop world class commodities processing facilities as well as a trading platform that provide the most transparent, efficient, and cost-effective supply chain ecosystem that delivers the best African products to customers (commercial, wholesale and retail) all over the globe.

GOAE Trading Limited / Go Africa LLC intends to expand its Cashew nut processing operations via the development of Cashew processing Plant in Nigeria  (the “Project”). The Company deals in the production and processing of cashews, coffee, cocoa, teas, and nuts for retail and wholesale sales and consumption.

In order to pursue the policies of Federal Government of Nigeria for maximizing local production and reducing the country’s dependence on imports, the Company plans to invest massively in backward integration including development of proposals to increase cashew production methods and best practices  in order to boost the local production.

The Company is currently looking forward to expand its local production in Nigeria as follows:

·       Increase its farming capacity for Cashew production;

·       Training and best practices for continued development;

·       Setting up a Processing plant with higher capacity to boost output.

 

The Company is now in the process of raising debt capital to finance the capital expenditure requirements for the Project.

 

 

 

Assignment Objectives:

The Company has positioned itself to launch a business that will improve local production of Cashews & Cashew by-products and the objective of this assignment is to investigate and report on Technical, Marketing, Financial &Environmental Social Impact feasibility, with an independent view of the Company’s capability to execute the business plan.

 

This will involve a detailed review of the Company’s existing assets, technology, business operations as well as a review of the forecast of the future capital expenditure and operating expenditure needed to support the expansion and overall business plan. The Consultant will be required to visit the Company’s offices and farm sites, interact with the operational teams and confirm the robustness of business model and assumptions with regards to the revenue and capital costs forecasts.

 

The overall goal of the preparation studies is to provide expert knowledge on the target location to enhance the bankability of the Cashew processing Plant in Nigeria Project.

 

The specific objectives of Component 1 of the preparatory studies are:

i.         Carry out a detailed Technical Study of the design of the project along with the cashew processing equipment selected.

ii.         Undertake a Market feasibility study in order to evaluate the demand of Cashews & Cashew by-products in Nigerian Market in order to determine the capacity of production being proposed.

iii.              Evaluate the Financial model prepared for the Cashew processing Plant in Nigeria project by the company and develop a bankable financial model. Inclusive with projected earnings for next 5 years inclusive of payback schedule for potential investors

iv.         Undertake the Environmental impact assessment studies at all the locations where GOAE Trading Limited / Go Africa LLC  Resources proposes to expand its project namely Lagos State.

 

 

General Scope of assignment:

The Consulting Services to be provided for the study will, inter alia, cover:

 

3.1        Detailed Technical Study

  1. Detailed Assessment and Review of Existing and Proposed Facilities and Infrastructure

 

  1. Review the existing and proposed facilities and infrastructure, and recommending the capacity and quality of the infrastructure required for the Company’s future business plan including;
    1. Plant and equipment required to meet the Project’s objectives:
      • Processing equipment;
      • Handling equipment;
      • Storage equipment;
      • Packaging equipment;
    2. Requirements for Buildings, Civil Works, etc:
      • for Cashew Processing plant;
      • Utilities;
      • Office, warehouse/ storage facilities, workshop, etc.;
      • Drainage, walkways, sewerage, etc.;
  • Provision of appropriate Utilities:
    • All utilities including electricity, water, steam, ventilation;
    • Waste management and appropriate effluent treatment facilities;
    • Communication;
    • Transportation;
  1. Review the proposed production technologies in line with the overall business plan;
  2. Following review of (a) and (b) above, make proposals on additional equipment or machinery required to achieve the projected production output;
  3. Comment on the age, useful economic life and efficiency of the facility;
  4. Undertake a detailed review the Company’s existing and proposed outputs to determine if the Company has the capacity to deliver the projected output based on capital outlay;
  5. Assess raw material requirements for the construction of the facilities;
  6. Assess raw materials for day to day production;
  7. Assess spare parts and maintenance requirements;

 

  1. Detailed review of the projected capital costs

 

  1. Review and opine on the capital costs of the planned expansion plan and time required to complete the Project;
  2. Prepare a comprehensive technical risk analysis of the proposed capital expenditure projects, including an analysis of the required contingencies incorporated in the project Budget;
  3. Technical appraisal of the proposed equipment to verify that the conceptual design meets the desired outputs and Company goals;
  4. Review and opine on the adequacy of budget contingencies;

 

  1. Production strategy and management

 

  1. Determine whether output levels projected based on the intended capital investments are reasonable and attainable;
  2. Comment on the Company’s existing production methods and proposed production technologies to be utilized;
  3. Comment on the Company’s execution plan for the Project
  4. Opine on the viability and sustainability of the outgrowing farming model currently in place and the proposed plans;
  5. Comment on existing and proposed quality control and bio-security practices in place. Indicate improvements that may be considered necessary;
  6. The Consultant shall also identify issues and risks likely to threaten the operational sustainability of the Project and recommend ways of minimizing the effects of such risks on the operations of the Project;

 

  1. Review of Technical Capabilities of the staff

 

  1. Review the technical staff capabilities of the Company and comment on their ability to carry out specified tasks as detailed;
  2. Review the management and organizational structure of the Company and comment on the staff adequacy of the existing staff and future needs of human resources;

 

  1. Permitting process

 

  1. Ascertain and report on the technical and regulatory appropriateness of existing approvals, consents and permits which the Company already has in place and advise on any additional approvals that may be required.

 

3.2   Market Study

The Consultant is required to undertake a detailed assessment of the Nigerian Cashew and nut agriculture sector in relation to The Company’s business. The Consultant’s study should comprise of a review of specialist research of relevant industry prospects, expected trends, competitor information and economic data, discussions with the Company’s personnel and the Company’s own records and data sources as available.

 

The market report should include market size and key industry trends, growth drivers and opportunities, customer segments and their evolving needs, a regulatory analysis, impact of evolving technology and the competitive environment. The aim of the report will be to examine and address the following critical questions;

 

  • What are the market dynamics; size, trends and structure?
  • What is the Company’s current market position and market share?
  • How does the Company compare with its competitors – SWOT?
  • What are the growth drivers and opportunities?
  • How does government policy affect the Company’s long term plans?

 

The Company will provide a detailed plan regarding their distribution/marketing strategy. The Consultant will be required to opine from an independent point of view on the feasibility of the proposed marketing plan in light of current demand and any anticipated developments in the market. To achieve this, the Consultant is required to undertake the following:

 

  1. Assess present marketing and pricing arrangements, marketing costs/fees, principal customers, and the marketability of the company’s products, taking into account quality and volume;
  2. Opine on the Company’s marketing strategy and proposition;
  3. Assess current and proposed markets;
  4. Compare the Company’s marketing plans with similar companies, under similar circumstances in other jurisdictions;
  5. Review the portfolio of intended service offerings and compare their value with similar products in the market;
  6. Estimate current market share and competitor profiles (including strengths and weaknesses)
  7. Estimate current demand and forecast future demand;

 

In addition to a detailed section on the above listed items, the market report should also include but not be limited to the following;

 

  1. Overview of the Nigerian cashews and nut Agriculture Sector
  2. Historical Overview;
  3. Recent Developments and forth coming developments;
  • Market Segmentation;
  1. Market size and growth prospects;
  2. SWOT Analysis;
  3. Cashew Market
  4. Introduction and statistical overview;
  5. Market analysis – recent developments, demand/supply gaps;
  • Market economics (asset structure, cost structure and profitability);
  1. Market penetration strategy;
  2. Key trends in competitive landscape (profiles, strengths and weaknesses of key competitors);
  3. Profiles of key players
    • Pricing strategy of key players;
    • Business strategy of key players;
    • Marketing Strategy of key players;
    • Operational Strategy of key players;
  4. Industry Forecasts – Cashew Consumption & production (2017-2023):
  5. Regulatory Environment
  6. Existing standards & specifications for agriculture products;
  7. Key regulators;
  • Regulatory requirements;
  1. Outlook for regulation;
  2. Key Success Factors
  3. Management Overview
    1. Review of agriculture experience of key management staff; and
    2. Board strategy and medium term plans
  4. Critical Risks and Mitigants

 

 

3.3 Financial Feasibility Study

Review and opine on the Financial Model prepared for the expansion of the capacity in light of the company’s current position and expected commercial developments in the Cashew sector:

 

  1. Historical Financial performance of the company
  2. Validity of the inputs/assumptions used in the financial model with a particular focus on revenue, margins, capex, maintenance, variable and fixed costs;
  3. Reasonableness and adequacy of parameters of the financial model sensitivity scenarios;
  4. The adequacy of the working capital, major maintenance requirements, inventory, projected operating budget for the expansion and other relevant technical aspects that should be considered in the financial model;
  5. Develop the Financial model to a bankable proposal

 

3.4 Environmental Impact Assessment

The Consultant is also required to act as an independent environmental and social specialist that will carry out an Assessment of the Project with the following objectives:

 

  1. Conduct a detailed review of the Project planning process and documentation of the proposed development site for the cashew processing facility;
  2. Conduct an Environmental and Social Impact Assessment (ESIA), Environmental and Social Management Plan (ESMP) and required stakeholder engagement plan;
  3. Identify areas of non-compliance with the International Finance Corporations (IFC) Performance Standards on Environmental and Social Sustainability (2012) and applicable World Bank Group Environmental, Health & Safety (EHS) guidelines (“Applicable Standards”)and where applicable comment on whether deviation from the Applicable Standards (that are not legal requirements) is justified;
  4. Identify remedial actions and provide timelines and recommendations for further work to be undertaken to comply with the Applicable Standards;
  5. The Consultants shall determine/assess the environmental impact of the Project, with emphasis on the following:
  • land usage and sustainability of cashew processing activities in relation to:
    • Sustainable agronomic practices and integrated pest management;
    • Effective and responsible use of vaccines and medicines;
    • Water use, depletion and impact on soil;
    • Collection, treatment and disposal of all solid and liquid wastes;
    • Any other issues of environmental concern identified;
  1. The Consultant shall determine the social impacts of the project and make proposals for mitigation of any negative impacts with emphasis on the following:

 Safety and Health

  • Identify safety and health hazards associated with the project and make proposals for their mitigation with special attention to hazards introduced by generated wastes and by-products;
  • Propose measures to secure the good health of the communities and recommend any necessary facilities to be provided by the government or the Company;

 Employment

  • Identify and evaluate opportunities for job creation consistent with economic viability:
    • Directly through production of cashew and cashew by-products;
    • Indirectly through further processing/marketing of cashews and cashew by-products;

 

 

  1. Deliverables
  2. A detailed work plan for the execution of this component
  3. A comprehensive report on the four separate assignments are:
  • Technical report on the Plans and Equipment selection
  • Detailed Market study report on prospects of cashew nuts production in Nigeria
  • Detailed Financial model with Balance Sheets and Cash Flows
  • Environmental Impact Assessment reports

 

 

TECHNICAL EVALUATION

General Information

Grant Recipient:

  1. Name: GOAE Trading Limited / Go Africa LLC
  2. Address: Mulliner Towers, 7th floor, 39 Alfred Rewane Road Ikoyi, Lagos, Nigeria
  3. Type of Assignment: Consultancy

Method of Selection: Consultants’ Qualifications Selection (CQS) process.

Request for expression of interest:

  1. Channel used: Request for Expression of Interest (REOI), attached in Annex 1 of this document was approved by the African Development Bank on the on 7/9/2019 and was published in the local newspaper and on AFDB and UNDB website.
  2. Number of Consulting Firm Responses 11
  3. Shortlisting:

The Consultant Firm Selection Process:

The Request for Expression of Interest (REOI) was published in the local newspaper and on  AFDB and UNDB website, Below is the list of express of interested firms who submitted  their interest to participate to the assignment of feasibility studies commissioned by [Go Africa LLC / GOAE Trading Limited] showing those that responded and otherwise.

S/N Name of Consulting Firm Address of Firm country Remarks
1  

A’S INITIATIVE, LLC

 

1518 Brown Owl Dr Office (919) 758-8634 Raleigh, NC 27610

USA  
2 PROINT SYSTEMS LTD MO 75/1, ARS, Local Government Area, Madina, Accra Ghana JVC with Kholone Global Logistics
3 Kholone Global Logistics NO 9 Akilo Rd, Ijaiye 100218, Lagos, Nigeria Nigeria JVC with PROINT SYSTEMS LTD
4 ACERDEN 22, Second Avenue, Trans-Ekulu, Enugu, Enugu State, Nigeria Nigeria (Late submission over 2 days late)
5 ASPPEC Consultancy Office 304 B, Aspin Commercial Tower,

Sheikh Zayed Road, P.O Box 41314,

Dubai, United Arab Emirates

United Arab Emirates  
6 Highnet Resources Ltd Suite 205, Meros Plaza,

718B Somide Odujinrin Avenue,

Omole Phase 2, Isheri Olowora

Nigeria  
7 PricewaterhouseCoopers

 

Landmark Towers, Plot 5B Water Corporation Road, Oniru, Victoria Island, Lagos, Nigeria Nigeria  
8 SHARON CONSULTATIVE AND RESEARCH MANAGEMENT

 

12 Bori Road

Rumuibekwe Housing Estate

Port Harcourt, Nigeria

Nigera  
9 SOFRECO 92-98 boulevard Victor Hugo – 92115 Clichy Cedex – France France  
10 ISA Engineers and Consultants 44/1 Kodambakkam Road, W Mambalam

Chennai-600 033. India

India JMSF Agribusiness Limited
11 Wider Perspectives Limited

M a n a g e m e n t C o n s u l t a n t s

Ground Floor, No 222 Aba Road After Areta Farms, P.O. Box 4908, Port Harcourt Rivers State, Nigeria Nigeria  
12 ZEPCON ENGINEERING Wittenburger Str. 8

D-23879 Mölln

Germany

Germany  

 

  1. Go Africa LLC /GOAE Trading Limited Evaluation Committee:

In order to complete a transparent to thorough evaluation of the various EOI received, GOAE Trading Limited / Go Africa LLC has put together a Selection Committee constituted of several team members, whose skills and responsibilities would cover a wide range of fields hence ensure more efficient selection process. (Should include a minimum of three and in proportion of odd numbers. The essence is should there be need for voting, there should not be an even chance both ways. Normally we include: an expert in the subject matter, User department member and the procurement officer as secretary, (if any). The CEO GOAE Trading Limited  is not a member of the committee, since s/he has the approval right for internal control sake.

The Selection Committee is constituted 5 members whose unique responsibility is to commonly assess the EOI and score them against the Evaluation criterion spelt out in the TOR.

Members of the Selection Committee are:

S/N Name Position Tel Mail
1 Dr. Samuel Jones SVP, Chief Medical Officer 646 838-1330  ext 803 Sjones@goAfricallc.com
2 Mr. Lincoln Osho Senior Administrative officer +234 014489282 losho@goafricallc.com
3 Mr.Richard Iyasere SVP Health and Operational Safety +234 014489282 or 646 838-1330  ext 847 riyasere@goafricallc.com
4 Mr.Majeed Iddrisu SVP Special Operations Field and Production + 233 0302633259 mIddrisu@goafricallc.com
5 Mr.Haruna Musah CFO & SVP + 233 0302633259 hmusah@goafricallc.com

 

 

 

 

 

 

 

  1. Evaluation Criteria (100 points total)
  2. (15pts) Firm’s legal status (Certificates of registration, licenses, …);
  3. (10 pts) Firm’ staff/organization structure (firm’s staff, services and organization structure);

 

  1. (40 pts) Proposed staff qualifications, experience and skills in the areas listed below
8 points for each item below Allocation of points suggestions/scenarios
1.     Team Leader (with 15yrs experience in managing similar assignment with similar scale particularly in the West African sub-region) (8pts)

 

·      University degree with 3yrs -6yrs of experience in the field 2pts

·      University degree similar experience with 6-9yrs =4pts

·      University degree with similar 9-11yrs of experience in the field 6pts

·      University degree with 11-15 plus yrs. of experience in the field 8pts.

2.     Technical Expert with 10 yrs of experience in Cashew and/or nut processing projects (8pts) ·      Similar with 2yrs -4yrs of experience in the field 2pts

·      Years of experience in the field or similar with 4-6yrs=4pts

·      Years of experience in the field or similar with 6-8yrs=4pts

·      8-10 yrs & plus yrs. of experience in the field 8pts.

3.     Expert with experience to undertake marketing strategy. (8pts) Same as above
4.     A Financial expert with minimum ICAN qualification

(8pts)

Same as above
5.     Environmental Expert to conduct

Environment Impact Assessment; land usage and sustainability of processing activities (8pts)

Same as above

 

 

 

 

 

 

  1. (25 pts) Experience in similar projects in the areas of assignment focus 25 points:
5points for each item below Allocation of points suggestions/scenarios
1.     Experience with Technical feasibility study: @ 7points

1.1.   Revision of facilities and infrastructure 2

1.2.   review of the projected capital costs2

1.3.   Production strategy and management 2

1.4.   Review of Technical Capabilities of the staff 1pts

 

1 to 2 Technical Study:

1.1.   Revision of facilities and infrastructure 2pts

1.2.   review of the projected capital costs2pts

1.3.   Production strategy and management 2pts

1.4.   Review of Technical Capabilities of the staff 1pts

 

 

2.     The market development and study 6pts 1-2 market Studies 2pts

2-3 market Studies 4pts

3-4plus market Studies 6pts

3.     Financial Feasibility Study @ 6points 1 to 2yrs or 2projects of Financial Feasibility Study in Agriculture or in another field: 2pts

3 yrs. or 3 projects of Financial Feasibility Study in Agriculture or in another field: 4pts

4-5yrs of Financial Feasibility Study in Agriculture or in another field 6pts

4.     Environment Impact Assessment @ 6points 1 to 2 EIA in the fields of environmental science, aquaculture, agriculture or EIA in another field not Aquaculture =2 pts

3- EIA in the fields of environmental science, aquaculture or 3 EIA in another field not Aquaculture = 4pts

4 to 5EIA in in the fields of environmental science, aquaculture /EIA in another field than Aquaculture 6pts

 

(10 pts) Familiarity with West African sub-region culture and context, its social dimension, legal framework

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