TC Programme for Project Preparation on Industry, Commerce and Agribusiness (ICA) Investment Projects

Location:

Regional

TCRS Number:

15925

Business sector:

Agribusiness

Notice type:

Public

Status:

Approved

PSD disclosed:

11 Nov 2021

Project Description

Agribusiness Advisory currently manages seven technical cooperation (TC) programmes that cover environmental, financial, legal & technical/commercial due diligence (project preparation) on investment projects in the Agribusiness, Manufacturing & Services (M&S), Natural Resources, Property & Tourism (P&T) and Telecommunications, Media & Technology (TMT) sectors (ICA). Each TC programme covers a different theme/sector/region/country:

• Project Preparation Support Programme for Agribusiness Projects in Ukraine
• Improving Animal Welfare Standards in Agribusiness
• Project Preparation & Implementation Support for Scaling up the Knowledge Economy Initiative (KEI) in Corporate Sector
• Green Economy Transition (GET) Project Preparation Support in Corporate Sector
• Project Preparation Support of Gender & Economic Inclusion Projects in Corporate Sector
• Project Preparation & Procurement Support for Internet Infrastructure Projects in Central Asia
• Addressing Impact of Covid-19 on Online Business Models

These TC programmes have the same standardised scope of work (SoW), budget methodology and ranges approved by the Grant Review Unit (GRU), which has granted to ICA the delegated authority to engage consultants against TOR based on the approved standardised SoW. It has been agreed with GRU that ICA will develop a new, unified TC programme for project preparation, which is the subject of this project summary document (PSD), and that ICA's seven legacy TC programmes for project preparation will be gradually phased out and will not be consolidated under this new unified TC programme.

ICA processes an average of 30 contracts a year for TC-funded due diligence against its legacy TC programmes, but this is not representative of the true demand, since many investment projects do not meet the thematic/sectoral/regional/country eligibility criteria for funding. While not all investment projects need due diligence, having a unified TC programme with delegated authority to support those that do, will enable Agribusiness Advisory to meet the needs of ICA OLs with agility and speed, and to support projects that may not qualify for funding under the seven legacy TC programmes. Typically, OLs may have tight deadlines for project approval, and may need donor funding because asking their clients to pay in full for due diligence will make the transaction commercially unviable. There is a steady pipeline of investment projects (already Agribusiness and M&S each have a pipeline of more than 20 projects for 2022).

The Team will fundraise either on an ad hoc basis for specific investment projects, or for a larger pot of money to be used against pipeline projects, and will monitor and observe donor requirements at the assignment/earmark level.

The Bank will be the main beneficiary of the services, as follows:

Activity 1: Environmental Due Diligence to determine how potential environmental, social, health & safety, and animal welfare impacts and associated financial, legal and reputational risks should be addressed in the project planning, implementation and operation:

• Review of corporate policies and practices
• Environmental audit of existing facilities
• Environmental & Social Action Plan
• Stakeholder Engagement Plan

Activity 2: Financial Due Diligence of enterprises that may not have experience in international standard accounting/auditing

• Assessment of earnings and underlying growth and margin trends
• Balance sheet analysis
• Review management information system
• Valuation of Company

Activity 3: Legal Due Diligence
• English legal opinion
• Prepare letter of information
• Corporate check of Company
• Draft financing agreements

Activity 4: Technical/Commercial Due Diligence to review current and expected market conditions and appropriateness of the business plan in light of relevant market trends.

• Market analysis
• Assessment of Company's competitive positioning
• Assessment of Company's business plan
• Assessment of Company's and competitors' product offerings
• Comment on Company's CAPEX programme

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

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