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From: Indufor Oy on behalf of Private Forestry Programme (PFP)

20 February 2017

Helsinki/Iringa

Invitation to tender for provision of services to establish and strengthen Village Savings

and Loan Associations in the Southern Highlands of Tanzania. Indufor Oy on behalf of the Private Forestry Programme (PFP) and Ministry of Natural Resources

and Tourism (MNRT), invites tenders for the provision of services to establish and strengthen

Village Savings and Loans Associations (VSLAs) in each of three specific areas of the Southern

Highlands.

The specific areas for which specific tenders are invited are:

Area 1, Kilolo DC, Mufindi DC and Kilombero DC (southern part),

Area 2, Njombe TC, Njombe DC and Makete DC,

Area 3, Ludewa DC, Madaba DC, Mbinga DC and Nyasa DC.

PFP has piloted Village Community Banking in Area 1, Mufindi DC and the groups that have been

established need to be incorporated in any further work in that area (refer Annex 1).

The provision of these services will be for the use of the “Private Forestry Programme”.

Terms of Reference for this work are as presented in Annex 2. Key facts for tenderers are

presented in Annex 3. The minimum requirements for the service provider are described in detail

in Annex 4, tender evaluation criteria are presented in Annex 5, and intervention areas are

mapped in Annex 6.

Whilst PFP is currently only able to contract service providers for the period up to 31 December

2017, it anticipates that by September 2017 it will be able to contract service provision up to 31

December 2018.

Individual service provision contracts may be subject to mutually agreed amendments based on

performance and needs.

Tenders should clearly state their total price and staged payment requirements for services to be

provided up to December 2017, and in addition they should provide prices for completing the

assignments in 2018. They should discuss their understanding of the assignment, their

methodology and detailed plan for mobilizing resources to complete the work within their

proposed price and time frame.

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Based on the tenders, the MNRT and the representative of Indufor in Iringa will select one service

provider for each of the three specified areas.

The deadline for submission of tenders is Monday 27 March 2017 and procurement decisions will

be issued on or before Friday 31 March 2017. Contractors should then mobilize themselves

rapidly. All works including final reporting should be completed by 30 September 2018. The

maximum total all-inclusive prices for each area are EUR 255,000 for Area 1, EUR 305,000 for

Area 2 and EUR 340,000 for Area 3. The maximum total value for all three areas is EUR 900,000.

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Annex 1 Specifics of piloting work to be accounted for in tendering for Area 1

25 VICOBA groups with 689 members (refer Table 1) have been established and 15 more are in

process. In all 40 groups will therefore have to be taken over. Tenderers should plan on starting

groups from scratch and for taking over 40 existing groups. Support for these 40 existing groups

is already contracted up to 31 May 2017.

Table 1 Previously established PFP VICOBA groups

Group Name Formation date Group Type Group Location

TGA SME Village Cluster & Ward

Uwaminu 'A' 12/11/2016 x Nundwe Mafinga-Iharumba

Uwaminu 'B' 12/11/2016 x Nundwe Mafinga-Iharumba

Chapakazi 4/11/2016 x Vikula Mafinga-Iharumba

Tunaweza 31/12/2016 x Wamimbalwe Mafinga-Iharumba

Muungano 18/10/2016 x Nyololo Mafinga-Nyololo

Hapa Kzi Tu 25/10/2016 x Nyololo Mafinga-Nyololo

Umoja Women 30/10/2016 x Kinyanambo Mafinga-Kinyanambo

Mtazamo 30/10/2016 x Kinyanambo Mafinga-Kinyanambo

Customer 1/11/2016 x Igowole Mafinga-Igowole

Kiumui 1/11/2016 x Igowole Mafinga-Igowole

Umoja 20/11/2016 x Ibatu Mafinga-Igowole

Tukangale'a' 7/11/2016 x Iramba Mtambula-Itambula

Upendo 7/11/2016 x Iramba Mtambula-Itambula

Inuka 30/12/2016 x Ipilimo Mtambula-Itambula

Umoja Ni

Nguvu

30/12/2016 x Ipilimo Mtambula-Itambula

Shumasoki 'A' 3/11/2016 x Nyakipambo Mtambula-Itambula

Twilumba 12/12/2016 x Mtambula Mtambula-Itambula

Twitange 12/12/2016 x Mtambula Mtambula-Itambula

Ushindi 12/12/2016 x Mtambula Mtambula-Itambula

Uwamilug 'A' 2/11/2016 x Lugolofu Mgololo - Makungu

Uwamilug 'B' 2/11/2016 x Lugolofu Mgololo - Makungu

Uwamilu 'A' 2/11/2016 x Lugema Mgololo - Makungu

Uwamilu 'B' 2/11/2016 x Lugema Mgololo - Makungu

Uwamma 'A' 9/12/2016 x Magunguli Mgololo - Makungu

Amani 13/12/2016 x Kiyowela Mgololo - Makungu

Total: 25 18 7

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Annex 2 Terms of Reference for provision of services to establish and

strengthen Village Savings and Loans Associations in the Southern Highlands

of Tanzania

BACKGROUND

The Private Forestry Programme (PFP) increases rural income in the Southern Highlands of

Tanzania by strengthening small-holder plantation forestry and wood processing businesses.

The programme is funded and implemented by the Ministry for Foreign Affairs of Finland and the

Ministry of Natural Resources and Tourism of Tanzania. The programme management team has

its head office in Iringa, Tanzania.

The programme operates in Iringa, Njombe, Morogoro and Ruvuma regions where it supports

Tree Grower Associations (TGAs) and groups of small and medium forest enterprises (SMEs).

Lack of access to finance limits the ability of tree growers to invest in livelihood activities and

sustain their plantations to maturity. This absence of finance also makes it unmanageable for

small enterprises to invest in suitable machinery and skill development.

PFP is seeking to recruit service providers to create and mentor self-help, sustainable Village

Savings and Loans Associations (VSLAs) within TGAs based on CAREs most recent

methodology (version 4.04 or later). SME groups may require some adaptation of this baseline

model.

PFP will support with training and technical assistance on forestry and wood processing and so

tenderers do not have to provide this specialist expertise

OBJECTIVE OF THE WORK

To strengthen PFPs partner TGAs and SMEs by substantially improving their access to finance

and reducing their financial vulnerability.

SCOPE OF WORK

The overall intervention area is divided into three areas for tendering and service delivery

purposes.

Tenderers are invited to tender for any combination of these areas but separate technical and

financial proposals are required for each area.

Area 1, Kilolo DC, Mufindi DC and Kilombero DC (southern part), 15 SME VSLAs to be

established/strengthened and 78 VSLAs to be established/strengthened within at least the

following villages:

Kilolo DC: Kilolo, Lulanzi, Ilamba, Kidabaga, Lyamko, Ng'ang'ange, Boma la ng'ombe,

Ilamba

Kilombero DC: Mlimba "A", Lugala, Kitete, Uchindile, Rufuru, Lumumwe

Mufindi DC: Magunguli, Lugolofu, Kiyowela, Makungu, Nyakipambo, Mtambula, Holo,

Idete, Mpanga Tazara, Mafinga Mjini, Nundwe, Vikula, Ukami, Iramba, Igowole, Chogo,

Mapanda, Isaula, Wami and Lugema

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Area 2, Njombe TC, Njombe DC and Makete DC, 15 SME VSLAs to be established within the

area and 96 VSLAs to be established within at least the following villages:

Njombe TC: Iboya, Kifanya, Mgala, Mbega, Ngalanga, Ng'elamo, Mamongolo, Lilombwi,

Liwengi, Utalingolo

Njombe DC: Matembwe, Ikuna, Ikang'asi, Itambo, Nyombo, Mfriga

Makete DC: Mago, Nhungu, Kijyombo, Ibaga, Usagatikwa, Masisiwe, Ukwama, Lupila,

Ngoje, Utweve, Mang'oto, Makangalawe, Ukange, Igumbilo, Ihanga, Ng'onde, Kijyombo

Area 3, Ludewa DC, Madaba DC, Mbinga DC and Nyasa DC, 15 SME VSLAs to be established

within the area and 108 VSLAs to be established within at least the following villages:

Ludewa DC: Ludewa Mjini, Mavanga, Madope, Lusala, Amani, Ludende, Madindo,

Mundindi, Maholong'wa, Mkongobaki, Kitewele, Kiwe, Utilili, Masimbwe, Madilu, Njelela,

Ibumi, Mlangali, Madindo, Lugarawa

Madaba DC: Mwande, Igawisenga, Wino, Matetereka, Maweso, Ifinga, Mkongotema,

Lilondo, Kipingo,

Nyasa DC: Lundo, Lipingo, Nkali, Liuli, Nkalachi, Songambele and Mango

Mbinga DC: Ukimu, Lipumba, Kihangimahuki, Lukarasi, Matiri, Linda, Mapilipili, Lipilipili

The main tasks are:

Enable TGAs and SMEs to form village savings and loan associations for them to raise

internal capital for investment in income generating activities and social funds, and through

which access to formal financial services will be secured.

Raise awareness about feasible income generating and business development

opportunities, and strengthen member’s abilities to evaluate these opportunities. Provide

mentoring support to those involved in Income generating activities

Raise financial literacy particularly amongst women.

Raise awareness about potential financing opportunities among tree growers and SMEs.

Train group members and promote linkage for increasing the eligibility of tree growers and

companies to receive financing by increasing their capacity to provide the business plans,

transparent accounting and reporting, proven management skills, and evidence of a

business concept that lenders require.

Raise and broaden awareness among local financing institutions about the forestry

business.

KEY DELIVERABLES

It is expected that by the end of September 2018 the VSLAs will be inclusive of women and men

as well as both the poor and the relatively wealthy. It is expected that the groups will be actively

saving with funds for investments and for social safeguard purposes. The success will be

measured using the following indicators.

Timely establishment, registration and competence building of all required associations

Group inclusiveness

Group bank accounts

Group savings and disbursements

Group records including minutes of group meetings

Group evaluations of trainings and other received services

Reduced premature harvesting and increased investment in plantations

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Investment in improved log handling and sawmilling machinery

Training materials procured

INCLUSION OF ADDITIONAL PICK-AND-CHOOSE MODULES

PFP is open to tendering with flexible, optional “pick-and-choose” modules that are separately

priced. It must however be demonstrated how these are additional to the latest CARE

methodology and what value they add.

REPORTING AND MONITORING ARRANGEMENTS

Successful tenderers will be required to report monthly and quarterly to the Team Leader.

Independent physical verification of service delivery and outcomes will be organized externally

and by the Programme Management Team.

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Annex 3 Key facts for tenderers

Contract notice This is a reissue of a previous contract notice that was published on 21

December 2016 and later withdrawn.

This contract notice has also been published in the Finnish contract notice

portal HILMA on 22 February 2017.

Tender submission Individual area tenders should be provided to the Programme Finance

Development and Administration Manager at PFP Main Office, Plot no 21,

Block 1, Zone 1A, Gangilonga, Iringa, Tanzania by mid-day on Monday 27

March 2017. Procurement decisions will be made by close of business on

the Friday 31 March 2017.

Maximum value The maximum total and all-inclusive price per area will be Area 1 EUR

255,000, Area 2 EUR 305,000, and Area 3 EUR 340,000. The maximum

total value for all three areas is EUR 900,000.

Procedure The procurement will follow an open tendering procedure.

Content of tender The tender should include the total price for the specified services to be

provided and staged payment requirements for the period up to 31

December 2017, and separate prices for completion during 2018.

The tender should include completed tables relating to minimum

requirements as shown in Annex 4 and provide supporting documentation.

The tenderer should detail related experience of their organization in

Tanzania, CVs of experts to be assigned and minimum qualification

standards of support staff to be assigned. Supporting documents should

be provided.

The tenderer should demonstrate understanding of the assignment, how

they will integrate with PFP, and how they will be completely self-sufficient.

They should detail their methodology, their mobilization plans and describe

all the inputs they will deliver in terms of timing and quantities.

Staffing, accommodation, office accommodation, operations financing and

transport provisions should be detailed.

Selection criterion Understanding the methodology, resources to be committed to this work,

CVs of the proposed experts and relevant experience based selection.

Weight for technical and price tenders is 80/20.

The contracting authority maintains the right to exclude any of the tenders.

Partial tenders Partial tenders are not allowed.

Alternative tenders Alternative tenders and the use of subcontractors are not allowed.

Language of tenders The tenders must be in English.

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Other requirements The procurement will follow the Finnish law on Public procurements (law

348/2007) and when applicable the General Terms Public Procurement for

Finland (JYSE 2004).

The procurement is binding to the contracting authority only when the

contract has been signed. Written contracts will be signed which will follow

the form of the invitation to tender and the tender.

Deadline of tenders Mid-day on 27 March 2017

Delayed tenders Delayed tenders will be excluded.

Transparency The procurement decision and the annexes become public after the

decision has been signed. Other procurement documents become public

after the contract has been signed. The tenderer has the right to all

procurement-related documents after the procurement decision has been

signed.

If it is the tenderer's view that the document or a part thereof includes

information concerning the tenderer's business or professional secrets, the

tenderer shall send this information on a separate annex and clearly state

which information is secret. The contracting authority will decide whether

the perceived business or professional secrets are confidential by law. The

price is normally not considered a business secret.

More information More information about the procurement can be obtained from:

Team Leader

Private Forestry Programme

P.O.Box 2244

Iringa, Tanzania

Email: procurement@privateforestry.or.tz

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Annex 4 Minimum requirements for consideration of tenders

The minimum requirements of the supplier, minimum commercial requirements and other

commercial requirements that will be applied as shortlisting criteria are as set out below.

Tenderers should fill in each of the three tables relating to minimum requirements and include

them with their tender/s.

1. Minimum requirements for the supplier:

1 The tenderer is registered. The Tenderer shall confirm

its registration in the tender and provide the registration

number

Answer: Yes/ No

______________

Register

number:__________

2. The tenderer is formally qualified to provide services to

establish and strengthen the village savings and loan

associations

Answer: Yes/ No

______________

3. The tenderer has paid its taxes and other statutory

social contributions. Attestation (a document provided by

relevant authorities) of the tenderer’s paid tax liabilities

and pension contributions shall be presented as annexes

Answer: Yes/ No

______________

4. Experience in supporting the establishment and

strengthening of village savings and loan associations in

developing countries focusing on plantation forestry (min

4 years).

Answer: Yes/ No

______________

Failure to meet the minimum requirements will exclude an application from the shortlist and

negotiation stage.

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2. Minimum commercial requirements:

The tender is valid and binding at least 2 months after the

deadline stated in the invitation to tender.

Answer: Yes/ No

______________

Payment currency is EUR. Answer: Yes/No

_______________

The price of the services, delivered in respective district is

fixed.

Answer: Yes/No

_______________

This requirement is only applicable for companies.

Requirements for delivery: The supplier will provide a pro-

forma invoice for tax exemption. Customer will there after

provide necessary documents for VAT tax exemption.

Answer: Yes/ No

______________

Failure to meet the minimum requirements will exclude an applicant from the negotiation stage.

3. Other commercial requirements:

Terms of payment:

The contracting authority and the supplier will agree on

the terms of payment during the negotiation phase. If

there is no understanding of the terms of payment or they

are unacceptable for the buyer, the contracting authority

reserves the right to withdraw from the deal.

Terms of payment as

defined by the supplier:

Company/Organization_______________________________________________

Personal name:_____________________________________________________

Signature:_________________________________________________________

Date and place: ____________________________________________________

Contact Information:_________________________________________________

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Annex 5 Tender evaluation criteria

The award criterion is the most economically advantageous tender. The formula for calculating

the evaluation points is the following:

Score = A x (technical points of the tender / best technical points) +

B x (lowest price / price of the tender)

A = Weight of the technical tender (%)

B = Weight of the financial tender (%)

Criteria for tender evaluation are as set out below. Amongst the technical criteria ‘understanding

of the assignment, methodology and resources to be committed for this work’ are given most

emphasis whilst experience of the tendering organization and qualifications of key staff are also

important.

Technical evaluation criteria

Criterion Weighting

Pricing

20 points for lowest cost tender

Points allocated on a pro rata basis for other costings

20 %

Tenderer experience on related assignments in Tanzania

20 points for 5 years of directly relevant experience

15 points for 2 years of directly relevant experience

5 points for 1 year of directly relevant experience

20 %

Understanding of the assignment, methodology and resources

to be committed for this work

Organizations tendering for this work are required to demonstrate

their understanding of the assignment, how they will integrate with

PFP, how they will be completely self-sufficient, detail their

methodology, their mobilization plans and specify all the inputs they

will deliver.

It is necessary to specify staffing, accommodation, office

accommodation, operations financing and transport provisions in

detail.

40 %

CVs of assigned experts and support staff

Strength of team composition rated from 0 to 20 points by committee

of programme leading senior staff members and relevant programme

experts

20 %

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Annex 6 VSLA service provision locations