Terms of Reference (ToR)

Feasibility Study on Agriculture Digitalization

1. General information

1. About Initiative for Agricultural Development of Kosovo (IADK)

Initiative for Agricultural Development of Kosovo (IADK) is a non-profit, non-governmental organization that was established officially in 2005 in Kosovo. IADK’s mission is to promote the socio-economic development of rural areas, reduce unemployment and create income-generating opportunities to contribute to reducing migration to urban areas and to support farmers and agricultural activities. Taking into account gender equality, the involvement of minorities and increasing awareness of environmental protection in Kosovo are also important concerns of IADK’s mission. To fulfil its mission and vision IADK implements strategies to support its target groups improving the quality and quantity of agricultural production, increasing the knowledge and competitiveness of farmers and strengthening their role, and empowering rural women, agriculture students and youth, including returnees and ethnic minorities. IADK cooperates closely with farmers in Kosovo and their associations, public and private agricultural advisory specialists, other non-governmental organizations, municipalities and government authorities such as Ministry of Agriculture. IADK is currently composed of a team of 20 professional staff which is covering different agricultural areas. IADK is mainly funded by different international donors through funding projects in fulfilment of the IADK mission. Since its establishment, IADK has implemented more than 150 funding contracts, mainly funded by the European Union (EU), Bread for the World (BftW), Swiss Agency for Development and Cooperation (SDC), GIZ, DRC, CFD and MAFRD.

1. Project Context and Background

Kosovo has a population around of 1.78 million where the majority of the population is from the Albanian community (above 92%), followed by Serbian and other communities. Being a small state imposes several challenges to growth, such as a small internal market, a narrow production base, limited scope for diversification, and vulnerability to an economic shock.

The majority of the population in Kosovo 60% of them live in rural parts of the country, where almost all of them depend on agricultural activities. 54% of the total area of the country is dedicated to agriculture. According to the data, 22% of all jobs created are in agriculture, the contribution of the agriculture sector to the GDP is only 7.4% (2021), and Kosovo’s trade balance shows an extraordinary deficit, where the imports correspond to around 10% of exports which equal approximate 1 billion euro. It’s worth mentioning that 10% of exports come about from prepared foodstuff, beverages and tobacco. Despite its relatively large GDP contribution, agriculture is plagued by structural issues that result in low worker efficiency and high-cost production. According to the data from Kosovo Agriculture Census, there are 362,700 persons working in the agriculture sector. Based on the Green Report 2021 by MAFRD, the total used area of agricultural land is 420,210 ha.

1. The objective of the Consultancy

The main purpose of the feasibility study is to oversee the current situation concerning digitalisation in agriculture and to generate possible interventions – models which can be integrated into the project implementation period. Therefore, the IADK wishes to engage an experienced consultant with significant knowledge of digitalisation in agriculture.

The specific objectives of the consultant are the following:

1. Conduct a feasibility study – analysis for digital agriculture needs/gaps and capacity assessment;
2. Generate the technical recommendations – interventions for the small farmers about the utilisation of digitalisation in agriculture, also analyse and identify the positive and negative factors affecting the introduction and implementation of digital interventions;
3. Provide at least four (4) ideas – interventions for the currently implemented sectors, interventions that would contribute to the better integration of the digital elements in agriculture;
4. Provide support to the IADK team to adapt an intervention approach that helps the team to pilot and implement the best models for the introduction of digitalisation in agriculture;

The above-mentioned objectives are expected to be achieved through the following activities (but not limited):

• Reviewing existing reports prepared for digitalisation in agriculture;
• Through field visits, participate in a series of consultation discussions with relevant stakeholders (NGOs, companies, donors, experts and institutions) engaged in digitalisation, more specifically in digitalisation in agriculture;
• Conduct meetings with the IADK team and experts, and finally organize a workshop with the team at the end of the mission to present findings, results and possible interventions for better digitalisation in agriculture.

1. Work plan/Time frame

The feasibility study is anticipated to take 10 working days, including preparation, field work and reporting. The feasibility study is expected to commence in 4th of September 2023 and be finished in 20th of September 2023. The report (with results and recommendations for interventions) is due by 25th of September 2023. The dates are tentatively and can be adjusted as per discussion and agreement with consultant/s.

A tentative work plan is suggested:

The allocation of time during fact-finding and suggestion may be altered within the overall framework of total agreed-upon days, depending on the feasibility study plan presented by the consultant.

1. Expected outputs of the consultancy

The main output expected from the consultancy is the feasibility study – an analysis of digitalization in agriculture for small farmers and possible intervention. The consultant/s is expected to deliver the expected outputs/outcomes:

• A detailed report of the feasibility study with findings, results and at least four (4) interventions, the report should include (but not limited):
• the proposed intervention for digitalisation in agriculture;
• ensure that all proposed interventions are robustly designed and investments are well planned;
• outline the intervention plan and possibly include main cost categories, further, outline a realistic timeline for the proposed set of interventions – activities;
• Identify the barriers and challenges – if any – that could determine the sustainability of the interventions related to digitalisation.

1. Qualifications of the Consultant

The consultation team will be composed by an international consultant – specialist who will be a team leader in the study and supported from a local consultant who should have an agriculture expertise.

The IADK is looking for an international consultant (team leader) who possesses the following abilities and qualifications:

• The consultant has relevant competent professionals comprising at least a Postgraduate degree in digitalization, agriculture digitalization and/or any other relevant degree;
• At least three (3) years of experience in digitalization, agriculture digitalization;
• The required consultant shall have experience in having completed at least three similar assignments (in nature and magnitude);
• Significant experience in the field of rural development, agriculture sector development, and working with farmers;
• Strong analytical skills; exceptional ability in communication, negotiations and writing;
• Excellent communication skills in the English language.

The local consultant must have:

• Master degree in agriculture;
• At least three (3) years of professional experience in the field of agriculture and/or economic development;
• Good communication in local languages and English language.

1. Application Process

Interested candidates/companies are asked to submit an electronic copy of their expression of interest/proposal to [email protected] by 16th of June 2023, at 16:00 (GMT+1) in local time in Kosovo with the subject:

“Feasibility Study on Agriculture and Food Digitalization”

Economic operators can obtain the tender dossier in writing through e-mail by contacting the contracting authority at [email protected] no later than 12th of June 2023. The deadline for explanations 14th of June 2023 can be received by emailing [email protected].

The following documents must be submitted by the applicant(s):

• Professional profile (CVs, if applying as a company, then CVs of the team), indicating all experience in the field of the feasibility study, more exactly in the field of digitalisation in agriculture, contact details (email and telephone number), including the CV and other data of the local consultant:
• Three reference letters for specific tasks performed, one of them must be with digitalisation in agriculture;
• Technical proposal with a short explanation and justification of the methods;
• Financial proposal;
• TOR document (stamped and/or signed).

Bidders must provide a price per unit and have authorised signatures and stamps in the appropriate places. The price should be stated in gross, in accordance with the current Kosovo regulations.

1. Selection criteria

The offer will be evaluated by using the best value for money approach (combined scoring method). Technical proposal will be evaluated on 70%, whereas the financial one will be evaluated on 30%. Technical evaluation of bids: the evaluation committee will evaluate the bids based on their responsiveness to the Terms of Reference. Each responsive bid will receive a technical score. The bid will be rejected if it does not meet the important aspects of the Terms of Reference or if it fails to reach the minimum technical note. Only tenderers with an average score of at least 60 points, qualify for the financial evaluation. The technical score will be calculated as follows: Technical score = final score of the technical offer in question / final score of the best technical offer) x 100.

Below is the breakdown of the technical proposal on 100% which will be brought to 70%.

If the technical proposal achieves the minimum of 60 points, the competitiveness of the financial proposal will be taken into account in the following manner:

Financial score = lowest financial bid/bid being considered x 100 (The lowest financial bid will have a financial score of 100 points). Tenders will be ranked according to their combined technical and financial scores using the following formula: Final score = (technical score x [70]%) + (financial score x [30]%). The bid that achieves the highest combined score will be the selected bid and the service provider (consultants) will be invited to execute the contract.

1. Additional Information

• International travelling from EU countries is covered by IADK and paid directly to the consultant as per the invoice presented. While the transport within Kosovo will be covered by IADK (with its car). IADK will take over the accommodation, the consultant can either choose to stay at IADK premises or can be accommodated at the hotel;
• The payment for consultancy days will be made through bank transfer after the final report is delivered and approved by IADK. IADK will cover the expenditures for bank transactions;
• IADK will not cover the expenses for insurance and any other expenses e.g. per diems;
• IADK will respect the legislation in place, therefore as per laws in force for every service engagement for the companies/individuals who are resident and non-resident, income tax will be counted.