REPUBLIC OF RWANDA

FUND FOR ENVIRONMENT AND CLIMATE

CHANGE IN RWANDA (FONERWA)

EXPRESSION OF INTEREST FOR

CONSULTANTS

TITLE

Terms of Reference for Scoping Work to inform

potential initiatives to support ‘green’ private

sector innovation and provide technical

assistance to address environment and

climate change challenges in Rwanda

TYPE OF

CONTRACT:

INTERNATIONAL

DATE OF ISSUE 27th June 2015

1. Background and context

The concept of ‘green growth’ underpins Rwanda’s 2013-18 Economic

Development and Poverty Reduction Strategy (EDPRS2). A few key interventions

and institutions are already supporting this priority area, one of which is

FONERWA – Rwanda’s Environment and Climate Change Fund. FONERWA is a

challenge fund that sits within the GoR under the oversight of the Rwanda

Ministry for Natural Resources (MINIRENA). It aims to align government and

donor resources in order to support a wide range of climate adaptation and low

carbon development activities in Rwanda. Through regular calls for proposals,

the Fund accepts applications from a wide range of institutions including central

government, district government, the private sector, and Civil Society

Organizations (CSOs). Proposals are selected on the basis of agreed criteria with

a strong emphasis on value for money.

Significant progress has been made in a short timeframe. Since the Fund

Management Team (FMT) was appointed in October 2012, governance

arrangements have been formalised, technical assistance has been provided to

prospective bidders, a partnership with BRD (Development Bank of Rwanda) has

been developed to offer concessional loans to eligible private sector applicants

and five calls for proposals have been completed. Twenty three projects have

received approval for FONERWA funding (a total commitment of around £22m),

with eleven projects currently under implementation. More information is

available on the FONERWA website: www.fonerwa.org

However, FONERWA faces a number of challenges in achieving its objectives.

These challenges are also faced by others in Rwanda that are supporting the

government’s ambitious plans for mainstreaming climate and environment

issues and pursuing its green growth objectives. Key amongst these are:

A lack of data and evidence. Data and evidence is needed on a number

of fronts: (1) improved climate information for Rwanda (including higher

resolution modelling) to help understand the potential impacts of

weather-related shocks and climate change on particular sectors; (2)

development of national level indicators to track Rwanda’s

environmental performance and vulnerability to climate change over

time; (3) national accounting systems which capture environment and

climate change expenditure better and track the contribution of the

environment and natural resources to economic growth (4) wider

evidence related to low carbon and climate resilient growth in Rwanda

(particularly on macro-economic impacts and potential distributional

effects, including gender impacts) as well as evidence on which

approaches are most cost-effective to help inform strategic decisions on

how best to spend FONERWA resources going forward.

Limited technical capacity. Green growth and climate change are

relatively new concepts in Rwanda and are not well-understood by many

of the individuals and institutions that would benefit most from

mainstreaming. Evidence from the initial operation of FONERWA suggests

that most sectors and stakeholders require substantial support to develop

their ideas into fundable proposals. More broadly, capacity is needed

within key ministries (particularly MINAGRI and MININFRA) and at District

level to support climate and environment mainstreaming activities. There

is also scope for improved coordination between ministries involved in

environmental protection and climate change. The FONERWA team has

provided some such support but the size of the team and the fact that

most members have a broad knowledge of environmental management

and climate change rather than specialist technical knowledge has

meant that they are not always able to provide the support needed.

Limited financial resources. Estimating the total financing need is difficult

given uncertainty around the scale of climate change impacts. However,

conservative estimates as part of the FONERWA design work in 2013

suggest that sectors have already identified funding gaps in the region of

£44m per year. Other estimates suggest that the costs of adapting to

climate change could alone be in excess of £375m per year. However,

with its good public financial management and the existence of a well-

functioning national environment and climate fund, Rwanda is in a good

position to attract bilateral and international climate finance. Recent

successes in securing finance from the Adaptation Fund (AF), Least

Developed Countries’ Fund (LDCF) and Pilot Programme for Climate

Resilience (PPCR) highlight the opportunities. However, applying for such

resources, take substantial time and technical capacity which is already

constrained.

Weak private sector. Measures to improve the wider enabling

environment for private sector are needed but there are also specific

challenges related to ‘green’ investment including the fact that

environmental costs and benefits are not captured in market prices and

that companies in new areas (such as ‘green’ technologies) find it difficult

to signal their risk profile and therefore financial institutions consider them

riskier than they might be and apply higher interest rates for loans. The

development and deployment of innovative technologies are also

hampered by limited access to affordable finance, transaction costs of

turning innovation into commercial activities and the higher costs

associated with bringing products to market where current demand is

low. There are also other sector-specific barriers that merit further

consideration. Experience from FONERWA suggests that the quality of

proposals coming from private sector applicants is often poor and

significant technical support is required to get proposals to the standard

required for funding. FONERWA do not have the capacity to provide the

quantity of technical support needed.

One solution proposed in EDPRS2 to address this latter challenge is the

establishment of a Rwanda Environment and Climate Innovation Centre. Similar

Climate Innovation Centres (CICs) have been set up in the region and

elsewhere, although they are still a relatively new phenomenon. The centres

provide targeted services (such as training and finance) to assist the private

sector – especially entrepreneurs and small-medium enterprises – to proactively

and profitably develop innovative technology and business solutions to address

domestic energy, resource and environmental challenges.

As set out in EDPRS2, the scope of the Rwandan Environment and Climate

Change Innovation Centre (RECIC) is expected to include:

support for applied research, proof-of-concept, prototyping and

demonstration of low carbon and climate resilient technologies, through

links to industry and academia in Rwanda and internationally;

promoting technological innovation and adaptation of existing

technologies to local circumstances in priority sectors through business

advice and training;

linking innovation with finance through identifying international funding

sources, supporting proposal development and providing seed funding.

FONERWA is expected to play an instrumental role in this area;

providing analyses and information on market and sector trends to assist

entrepreneurs looking to enter key markets; and

proposing policy and regulatory reforms to help build an enabling

environment that encourages private sector investment in green

technologies and innovations.

The RECIC has the potential to support a wide variety of low carbon, climate

resilient technologies and approaches. For instance, renewable energy

technologies are likely to play a major role, but the RECIC could also support

research and innovation in other low carbon products and methods (e.g. low

carbon-construction materials and methods, resource efficient processes etc.)

and adaptation technologies. Given Rwanda’s strong reliance on agriculture,

we would expect an RECIC to have a particular focus on innovations in this

sector e.g. technologies that can support smallholder farmers adapt and

intensify production and technologies that can help food systems better

respond to climate stress.

There is also significant potential for direct positive impacts on gender equality

through opportunities for targeting women entrepreneurs; as well as indirect

impacts through the technologies and business models supported by an RECIC.

An RECIC could also form an important part of the global CIC network that is

currently being established (in most cases, through the World Bank’s InfoDev

facility). Within, the region, Kenya and Ethiopia have both recently established

CICs and have experience that could be applied to Rwanda. There are strong

opportunities for spill-overs and lesson sharing within the region and across the

wider network.

Whilst some other development partners and NGOs have programmes to

support local private sector development and the wider enabling environment

for private sector investment, there are few organisations or programmes

focusing on support for low carbon, climate resilient technologies and

approaches. Where these exist (e.g. GIZ’s results based finance programme for

solar lighting and off-grid energy), these tend to have a narrow remit and/or

focus on aspect of the solution (e.g. provision of finance) rather than the

package of support that an RECIC would offer. Scoping out other related

initiatives in Rwanda and the East Africa region and how they would sit

alongside a potential RECIC will be a key task of the scoping phase.

FONERWA is also providing some support to the private sector but is focused on

larger concepts (most private sector applicants are seeking funding in the

region of $300,000 or above) and is unable to provide the level of technical

assistance that many smaller companies need in order to develop proposals

that meet the standard required for funding. An RECIC could therefore strongly

complement FONERWA by providing targeted training and business advice that

would enable the private sector to develop innovative technologies which

could seek FONERWA funding for delivery at scale.

2. The Objective

The objectives of the contract are to undertake scoping work to:

a) understand the challenges and constraints faced by small and medium

sized enterprises (SMEs) wanting to invest in innovative ‘green’ business

opportunities in Rwanda; explore the case for an Environment and

Climate Change Innovation Centre in Rwanda (RECIC) to address these

challenges, as well as other alternative approaches; and provide clear

and detailed recommendations on how such a facility should be

designed to have most impact in the Rwandan context;

b) Identify broader requirements for technical assistance on mainstreaming

climate and environment in Rwanda and investigate options for a facility

to provide additional support in this area.

3. Recipient

The recipient is the Government of Rwanda (GoR). The Fund Management

Team of FONERWA – the Government of Rwanda’s Environment and

Climate Change Fund – will be managing the work.

4. Scope

The Service Provider will need to review the available literature and consult

with a wide range of stakeholders in order to produce a scoping report that

fulfils the needs of the recipient and allows this initiative to proceed to

implementation.

Key specific tasks will include:

a. Developing a methodology and a work plan for meeting the

requirements of these TORs;

b. Reviewing the available documentation and consulting with a wide

range of stakeholders (including those engaged in establishing and

operating innovation centres and other technical assistance facilities in

Rwanda and other countries) in order to address the following questions

as part of the scoping work. Other questions may be added as

appropriate:

On a facility to support private sector innovation:

i. What are the barriers to innovation and the requirements of local

entrepreneurs?

ii. Is there demand for an environment and climate innovation centre

in Rwanda or alternative facility? What is the nature and scale of

support required?

iii. How would such a facility address the barriers identified? What

services would it offer?

iv. What aims, objectives and targets would be appropriate/feasible

given the context?

v. What are others (NGOs, donors, multilateral organisations) doing to

support local entrepreneurs in Rwanda and the East African region?

And how would new facility sit alongside existing initiatives?

vi. What have been the key lessons learnt from designing and

implementing Climate Innovation Centres (CICs) elsewhere and

how should these lessons be applied to Rwanda?

vii. What are the alternative delivery/implementation options and their

pros and cons (including risks and opportunities)? For instance,

where might an innovation centre be hosted? Who are the

potential implementing partners? What are the longer term goals

and how might such a facility evolve over time? This should include

exploring opportunities to undertake innovative programming

outside government systems through an independent platform,

linking to academic and private sector initiatives. In assessing

alternative options it will be important to develop criteria against

which different options can be appraised.

viii. What are the expected upfront and operating costs of such an

initiative? How long would it take to establish? How does this vary

according to the delivery option?

ix. What management arrangements and funding modalities would

be appropriate?

x. What sources of funding exist? Who are the potential (government,

bilateral, multi-lateral, private sector) partners?

xi. How would a new facility work with/alongside FONERWA to

maximise impact and avoid any risk of duplication? Alternatively,

should such a facility be embedded within FONERWA?

xii. What specific opportunities and strategies exist to promote gender

equality as part of an innovation facility? How could benefits to the

rural poor be maximised (e.g. in focusing on particular

technologies/products)?

xiii. What are the key risks to delivery and how should they be

managed?

xiv. What are the options for ensuring sustainability and over what time

period may this be achievable? What funding streams exist?

On a separate technical assistance facility:

i. What are the key barriers to mainstreaming environment and

climate change in Rwanda? Is there demand for additional

technical support?

ii. Who would be the potential beneficiaries if additional technical

support were available and what are their requirements (in terms of

nature and scale of support needed)?

iii. How would such a facility address the challenges identified? What

should be the nature/range of support on offer?

iv. What aims, objectives and targets would be appropriate/feasible

given the context?

v. What are others (Government, donors, multilateral organisations,

NGOs) doing to support mainstreaming of environment and climate

change issues in Rwanda? And how would new facility sit

alongside existing initiatives?

vi. What have been the key lessons learnt from designing and

implementing technical assistance facilities in Rwanda and

elsewhere and how should these lessons be applied to this case?

vii. What are the alternative delivery/implementation options and their

pros and cons (including risks and opportunities)? For instance,

where might a technical assistance facility be hosted? How would it

operate in practice? Who are the potential implementing partners?

What are the longer term goals and how might such a facility

evolve over time? How could the impact of such a facility be

sustained in the long term? In assessing alternative options it will be

important to develop criteria against which different options can be

appraised.

viii. What are the expected upfront and operating costs of such a

facility? How does this vary according to the delivery option?

ix. What management arrangements and funding modalities would

be appropriate?

x. What sources of funding exist? Who are the potential partners?

xi. How would a new facility work with/alongside FONERWA to

maximise impact and avoid any risk of duplication? Alternatively,

should such a facility be embedded within FONERWA?

xii. What are the key risks to delivery and how should they be

managed?

c. Present implementation options and analysis to support the GoR to make

a decision on which options should be taken forward for more detailed

design work. This should include approximate cost estimates for

alternative options.

d. Develop ToRs for more detailed design work

The service provider should take a consultative approach and will work

closely with key GoR counterparts, Development Partners and other

stakeholders to develop options and analysis.

5. Approach

The service provider will take a consultative approach, building on country

and global knowledge, documentation and experience. This will require:

a) Collecting and reviewing literature on innovation and private sector

development in Rwanda and the region (particularly focusing on low

carbon and climate resilient technologies and investments), and global

evidence overviews

b) Consulting with those involved with other Climate Innovation Centres to

identify lessons learnt

c) Consulting with potential beneficiaries (e.g. by holding workshops with

local entrepreneurs) to understand the barriers to innovation and the

requirements of local entrepreneurs

d) Meetings with key counterparts in Government of Rwanda (e.g.

MINIRENA, MINICOM, Rwanda Energy Efficiency and Cleaner Production

Centre, FONERWA)

e) Meetings with key counterparts amongst development partners (UNDP,

DFID, SIDA, EU, KfW, GIZ, BTC, WB, etc.), private sector, academic

institutions and civil society organisations

f) Good communication with stakeholders to allow adequate discussion of

options.

The service provider is expected to spend the majority of the contracted

days in Rwanda, given the need for in-depth consultation with potential

beneficiaries, potential implementers and other stakeholders. However, it

may not be necessary to be in Rwanda for the full period.

6. Deliverables

Within one week of contract mobilisation, the service provider will present an

inception report of (maximum 5 pages) outlining the proposed approach

and draft work plan including the proposed interview/consultation schedule.

The service provider will be expected to present preliminary findings from

the scoping work around 6 weeks into the contract, followed by a draft final

scoping report and presentation of scoping work to the Steering Committee

around 4 weeks later. The final scoping report will be due within ten working

days of having received comments from the Steering Committee. The report

should comprise a maximum of 30 pages, including executive summary that

addresses the scope of work and specific tasks described above. Draft

Terms of Reference (ToRs) for more detailed design work should be provided

as annexes to the final report. Further additional information may be

provided as annexes if necessary.

7. Timeframe

(i) The contract is expected to start in August 2015 with the final reports to

be submitted by end of November 2015. A maximum of 80 input days

(including both international and national experts, excluding travel

time) including preparation, country visit and report writing are

chargeable for this assignment.

(ii) A first draft of the final scoping report will be submitted by the end of

October 2015. The draft will be shared with stakeholders and

comments will be fed back within a week following receipt of draft

report from the SP. A final report will be submitted within five working

days following receipt of final comments from stakeholders.

(iii) The timeframe for deliverables is summarized below:

Activity Timeframe

Contract mobilisation and inception

meeting

3rd August 2015

Inception report with work plan 10th August 2015

Presentation of initial results of scoping

work to Steering Committee

11th September 2015

First draft of scoping report submitted

including pros and cons of different

implementation options

25th September 2015

Presentation of scoping report to Steering

Committee

9th October 2015

Presentation of scoping report to ENR Joint

Sector Review (ENR JSR)

TBD

Comments on draft report from Steering

Committee members and ENR SWG

30th October 2015

Presentation of the report to FONERWA

fund management committee (FMC)

13th November 2015

Final draft of scoping report and draft ToRs

for detailed design work submitted

27th November 2015

8. Coordination and reporting

The Service Provider will ultimately report to Alex Mulisa, FONERWA Fund

Coordinator. The Coordinator will chair a Steering Committee which will

help guide the project. The Steering Committee will be made up of

individuals from a range of interested parties including the Rwanda

Environment Management Authority, Ministry of Environment and Natural

Resources, Ministry of Finance and Economic Planning, Ministry of Industry

and Trade (MINICOM) and relevant affiliate agencies; Private Sector

Federation and Development Partners.

9. Consultant’s profile

The service provider is expected to put forward a single consultant or small

team of consultants who between them demonstrate the following skills and

experience:

(i) Technical expertise:

Strong understanding of issues related to environmental sustainability and

climate change and experience of working with governments and other

stakeholders on these issues

In-depth understanding of, and expertise in, approaches to support private

sector innovation with a particular focus on low carbon, climate resilience

technologies

Experience in assessing stakeholder requirements/institutional weaknesses

Experienced in multi-stakeholder dialogue processes

Ability to draft clearly and concisely ideas and concepts in written form

using appropriate, but accessible language

(ii) Regional and country experience:

Familiarity with the local context as well as knowledge and experience of

how other countries, in particular in the East Africa region, are encouraging

innovation in low carbon, climate resilient technologies.

Experience of working in sub Saharan Africa

(iii) Programme Development:

Experience of designing logical frameworks (results frameworks)

Aid modalities and how development assistance can be delivered in a way

which builds Government’s capacities and does not undermine these

Experience in economic analysis including financial projections for

institutional set up and Budget preparation

10. Evaluation Criteria

The Evaluation Criteria and Weightings that will be applied to this terms of

reference are as follows:

Application procedure

To apply, please submit your expression of interest with a financial proposal and

all relevant documents such as; your updated Curriculum Vitae (CV), copies of

S/N Description Weighting

1 Quality of suggested consultant/consultants team

(including back up support and quality assurance

where necessary) and availability of named

individuals including national experts

30

2 Adherence to ToR’s specifications and related

requirements: Approach and methodology, clear

understanding of required deliverables

30

3 Experience of similar work (including experience in

working in Rwanda/the region)

25

4 Writing skills justified by previous work done and

language proficiency in English (French and

Kinyarwanda and advantage)

15

Overall Total 100

academic certificates, previous work done/references related to this

assignment through info@fonerwa.org . Please note that applications will only

be accepted if they have been submitted through the web by established

deadline (e-mail time stamp will be used for determining applications that were

submitted by the deadline). The deadline is 17th July at 5:00 pm (local time).

For more information, you may visit FONERWA website on www.fonerwa.org and

for more enquiries please contact us on info@fonerwa.org or telephone (+250)

252580769

Done at Kigali on 27/06/2015

Fatina MUKARUBIBI

Permanent Secretary

Ministry of Natural Resources (MINIRENA)