Foreign economic-aid-related services

Tender description

The Ethiopian Infrastructure Advisory Facility Phase II (EIAF II) will provide technical assistance to the Ethiopian Government to improve the effectiveness of public investments that will improve the environment for exporters. DFID seeks to appoint a local or international supplier to deliver the EIAF II contract circa October 2019 for an initial term of up to 4.5 years (ending in March 2024) with an overall budget of 60 000 000 GBP(inclusive of applicable taxes including UK VAT). DFID may extend the contract for up to an additional 2 years with a maximum additional budget of 15 000 000 GBP (inclusive of all applicable taxes including UK VAT). The Ethiopian Infrastructure Advisory Facility started in 2016 and provides impartial analytical capabilities and expertise to the Government of Ethiopia (GoE) to improve public investment management and in areas that are critical constraints to growing the export manufacturing base. For example, a public investment management diagnostic (see Terms of Reference, Annex D) provided a set of recommendations for systemic change to the way public investment decisions are made that could result in dramatic savings and investments that address constraints in a more cost-effective manner. In trade logistics, it has identified areas to reduce costs and clearance times along the Djibouti corridor and provided transaction advice on infrastructure deals. A shortage of worker accommodation, especially at Hawassa Industrial Park, was identified as a bottleneck to more investment and it has developed various options to finance and build appropriate accommodation. Because 9 State Owned Enterprises (SOE) contribute 16 % of GDP and drive around 40 % of the infrastructure investment in the Government’s Second Growth and Transformation Plan, it is working with GoE to reform SOE governance and transform a selection of them in the context of potential privatisation. It also helped to reduce electricity grid losses and to accelerate change in the tax system, which generates the revenue for public investment and debt repayments. EIAF generated strong demand (e.g. in tax) and this has meant that funds are expected to be exhausted in 2019, earlier than planned (2021). In addition, the new reform push is expected to increase demand for assistance in EIAF’s core areas. DFID is now seeking to appoint a supplier to deliver a second phase of EIAF (EIAF II) that will continue the flexible, demand-led assistance to GoE throughout this period of change along with a more explicit focus on systemic improvements to the PIM system. DFID will award the EIAF II Contract to a single legal entitiy who will be responsible for delivering the outcomes of the programme. The Supplier will provide programme management and programme delivery services to the GoE with an explicit focus on systemic improvementsto the Public Investment Management (PIM) system to deliver the following outcomes: 1) Strengthened effectiveness of growth enhancing public investment; 2) Improved enabling environment for exporters.