MCC-17-RFQ-0003.pdf

PAGE 1 OF 1. REQUISITION NO.

2. CONTRACT NO. 3. AWARD/EFFECTIVE DATE 4. ORDER NO. 5. SOLICITATION NUMBER 6. SOLICITATION ISSUE DATE

a. NAME b. TELEPHONE NO. (No Collect Calls) 8. QUOTE DUE DATE/LOCAL

TIME

9. ISSUED BY CODE 10. THIS ACQUISITION IS UNRESTRICTED OR SET ASIDE: % FOR:

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

8(A)

NAICS:

SIZE STANDARD:

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13b. RATING

14. METHOD OF SOLICITATION

RFQ IFB RFP

15. DELIVER TO CODE 16. ADMINISTERED BY CODE

17a. CONTRACTOR/QUOTER CODE FACILITY CODE 18a. PAYMENT WILL BE MADE BY CODE

TELEPHONE NO. DUNS: DUNS+4:

PHONE: FAX:

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN QUOTE

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW IS CHECKED

SEE ADDENDUM

19. 20. 21. 22. 23. 24.

ITEM NO. SCHEDULE OF SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA 26. TOTAL AWARD AMOUNT (For Govt. Use Only)

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA ARE ARE NOT ATTACHED.

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA ARE ARE NOT ATTACHED

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN _______________ 29. AWARD OF CONTRACT: REF. ___________________________________ QUOTE

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DATED ________________________________. YOUR QUOTE ON SOLICITATION

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY (BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED SET FORTH HEREIN IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF QUOTER/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT) 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (TYPE OR PRINT) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION (REV. 2/2012)

PREVIOUS EDITION IS NOT USABLE Prescribed by GSA - FAR (48 CFR) 53.212

7. FOR SOLICITATION

INFORMATION CALL:

STANDARD FORM 1449

QUOTER TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS 79

20160524

MCC-17-RFQ-0003 10-04-2016

AYLA-REBEKA BROOKS 202-772-6458 11-03-2016

10:00 AM EST

Millennium Challenge Corporation

Contracts and Grants Management Division

1099 Fourteenth Street NW

Suite 700 - Ayla-Rebeka Brooks

Washington DC 20005

X

N/A

CGM

1099 Fourteenth Street NW, Suite 700

Contracts and Grants Management Division

1099 Fourteenth Street NW

Suite 700

To All Offerors

Interior Business Center

Interior Business Center

M/S D-2773

7301 West Mansfield Avenue

Lakewood CO 80235-2230

See CONTINUATION Page

This Request for Proposals (RFP) is for the

Industrial Land Due Diligence Support Services

Cote d’Ivoire Compact Development

See CONTINUATION Page

X X

X X

WOLF TAYLOR

MCC-17-RFQ-0003

Table of Contents

SECTION B – SCHEDULE OF SUPPLIES OR SERVICES

B.1 PURPOSE

B.2 CONTRACT TYPE

B.3 SCHEDULE OF SERVICES AND PAYMENT SCHEDULE

B.4 ADDITIONAL LABOR CATEGORIES

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 INTRODUCTION

C.2 BACKGROUND AND ANALYSIS TO DATE

C.3 COMPACT PROPOSAL AND SMART URBANIZATION PROJECT

C.4 MCC’S COMPACT DEVELOPMENT TIMELINE FOR COTE D’IVOIRE

C.5 OBJECTIVES AND SCOPE

C.6 TASKS

C.8 KEY PERSONNEL AND MINIMUM QUALIFICATIONS

C.9 CONFLICT OF INTEREST

C.9 TRAVEL

C.10 SUBCONTRACTING

SECTION D - PACKAGING AND MARKING

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 GENERAL INSPECTION AND ACCEPTANCE

E.2 DELIVERABLES ACCEPTANCE CRITERIA

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE AND LEVEL OF EFFORT

F.3 PLACE OF PERFORMANCE

F.4 MCC TECHNICAL DIRECTION

F.5 DELIVERABLES

SECTION G - CONTRACT ADMINISTRATION DATA

G.1 MCC 52.201-70 CONTRACTING OFFICER’S REPRESENTATIVE (COR) AND/OR PROJECT MONITOR (PM) JULY

2012)

G.2 MCC 52.232-70 INVOICE INSTRUCTIONS (MAY 2013)

G.3 ACCEPTANCE AND APPROVAL

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 KEY PERSONNEL

H.2 MCC 52.203-70 CONTRACTOR NON-DISCLOSURE AGREEMENT (JULY 2012)

H.3 MCC 52.232-72 LIMITATIONS OF FUNDS – INCREMENTALLY FUNDED CONTRACTS (NOV 2006)

H.4 MCC 52.232-73 TRAVEL REIMBURSEMENT (MAY 2013)

H.5 MCC 52.232-74 ODC REIMBURSEMENT (JAN 2007)

H.6 MCC 52.242-70 CONTRACTOR PERFORMANCE ASSESSMENT RATING SYSTEM (CPARs) REGISTRATION (AUG

2011)

H.7 CONFIDENTIALITY AND OWNERSHIP OF INTELLECTUAL PROPERTY

H.8 CONTRACTOR’S STAFF SUPPORT, AND ADMINISTRATIVE AND LOGISTICS ARRANGEMENTS

H.9 MCC 52.209-70 ORGANIZATIONAL CONFLICTS OF INTEREST: PRECLUSION FROM IMPLEMENTATION

CONTRACT (JULY 2012)

H.10 MCC 52.245-70 CONTRACTOR ACQUIRED MCC GOVERNMENT PROPERTY OVERSEAS (JULY 2012)

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE

ORDERS—COMMERCIAL ITEMS (JUL 2014)

I.3 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

I.4 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

I.5 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

I.6 FAR 52.212-2 EVALUATION-COMMERCIAL ITEMS (JANUARY 1999)

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF ATTACHMENTS

J.1 Attachment 1: SAMPLE PRICE TEMPLATE

J.1 Attachment 2: MEDICAL ACCOMODATION PROCEDURES

J.2 Attachment 3: DS-4086: Special Seating Request Form for Business Class Air Travel and

J.3 Attachment 4: DS-4085A: Business Class Upgrade Medical Questionnaire

J.4 Attachment 5: SOW: Cote d’Ivoire Industrial Land – Illustrative Problem Tree and Root Cause Analysis ... 60

J.5 Attachment 6: SOW: Illustrative Problem MCC Economic Framework for Land Sector Interventions

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF QUOTERS

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO QUOTERS

L.1 52.216-1 TYPE OF CONTRACT (APR 1984)

L.2 RFQ FORMAT

L.3 ELECTRONIC COPY SUBMISSION

L.3 QUOTE PREPARATION & INSTRUCTIONS

L.3.1 VOLUME I –TECHNICAL CAPABILITY

L.3.2 VOLUME II - PAST PERFORMANCE

L.3.3 VOLUME III – PRICE/BUSINESS QUOTE

(a) Part 1 - Standard Form (SF) 33

(b) Part 2 - Proposed Prices

L.5 QUOTE SUBMISSION INSTRUCTIONS

L.5.1 QUESTIONS/REQUEST FOR CLARIFICATION REGARDING SOLICITATION

L.6 NEGOTIATIONS/DISCUSSIONS

L.7 EXCLUSION OF QUOTES AND COMMUNICATIONS

L.8 52.233-2 SERVICE OF PROTEST (SEP 2006)

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 BASIS OF AWARD

M.2 EVALUATION FACTORS AND SUBFACTORS

M.3 EVALUATION METHODOLOGY

SECTION B – SCHEDULE OF SUPPLIES OR SERVICES

B.1 PURPOSE

The purpose of this contract is for the contractor to provide services and expert skills to MCC for the due diligence of industrial land components as part of an MCC Compact with Cote d’Ivoire. The MCC Compact investment will be undertaken in partnership with The Government of Cote d’Ivoire and in consultation with the private sector. The Contractor shall serve as an advisor to MCC providing due diligence and design improvement recommendations on The Government of Cote d’Ivoire’s proposed industrial land components; the Contractor is not a technical advisor to The Government of Cote d’Ivoire.

B.2 CONTRACT TYPE

This is a time and materials (T&M) type contract. For the consideration set forth in the contract, the Contractor shall provide the deliverables described in Section C and comply with all contract’s requirements.

B.3 SCHEDULE OF SERVICES AND PAYMENT SCHEDULE

The Total NTE Price of this contract is $ TBD.

The maximum dollar value awarded to the contractor cannot exceed the Total NTE Price.

The Contractor shall furnish all personnel required to provide services to the MCC in accordance with Section C – Description/Specifications/Statement of Work, and the terms and conditions contained herein. The Contractor shall furnish all personnel, facilities, equipment, supplies, transportation, and other services required to provide services to the MCC in accordance with Section C, Statement of Work, and the terms and conditions contained herein.

Item Information:

CLIN Items Q-ty Unit Total Price

Payment Amount

0001 Task 0 Final Work Plan, Task 1 Demand Study, and Task 2 Zone Profiles Base Period, one year POP Begin: TBD POP End: TBD

1 NTE $TBD Payment according to Section G.2 Invoice Instructions

0001A Direct Labor 1 See Direct Labor Rates & Categories in Section C

$TBD $TBD

0001B Other Direct Costs 1 LOT $TBD $TBD

0002 Task 3 Industrial Land Productivity Due Diligence Reports Base Period, one year POP Begin: TBD POP End: TBD

1 NTE $TBD Payment according to Section G.2 Invoice Instructions

In accordance with clause MCC52.232-72, “Limitation of Funds – Incrementally Funded Contracts,” funds in the amount of [fill in amount] have been allotted to this contract. It is contemplated that funds now obligated under this contract will cover the work to be performed until [fill in date]. The Contractor shall not perform work on the contract which exceeds the total amount actually allotted by the Government to the contract. The Government is not obligated to reimburse the Contractor for costs incurred in excess of the total amount allotted by the Government to this contract. The contractor assumes the risk for any increased costs beyond what the Government obligates.

LABOR RATES

CLINs Labor Category Base Year Labor Rates

Option Year 1

Option Year 2

Option Year 3

0002A Direct Labor 1 See Direct Labor Rates & Categories in Section C

$TBD

0002B Other Direct Costs 1 LOT $TBD

1001 MCC industrial land components and investment and due diligence support for Cote d’Ivoire Option Year One Period, one year POP Begin: TBD POP End: TBD

1 NTE $TBD Payment according to Section G.2 Invoice Instructions

1001A Direct Labor 1 See Direct Labor Rates & Categories in Section C

$TBD

1001B Other Direct Costs 1 LOT $TBD

SubTOTAL NTE AMOUNT $TBD

2001 MCC industrial land components and investment and due diligence support for Cote d’Ivoire Option Year Two Period, one year POP Begin: TBD POP End: TBD

1 NTE $TBD Payment according to Section G.2 Invoice Instructions

2001A Direct Labor 1 See Direct Labor Rates & Categories in Section C

$TBD

2001B Other Direct Costs 1 LOT $TBD

SubTOTAL NTE AMOUNT $TBD

3001 MCC industrial land components and investment and due diligence support for Cote d’Ivoire Option Year Three Period, one year POP Begin: TBD POP End: TBD

1 NTE $TBD Payment according to Section G.2 Invoice Instructions

3001A Direct Labor 1 See Direct Labor Rates & Categories in Section C

$TBD

3001B Other Direct Costs 1 LOT $TBD

SubTOTAL NTE AMOUNT $TBD

Labor Rates

Labor Rates

Labor Rates

All CLINs Team Leader Expert - Industrial and Commercial RE Markets Expert - Real Estate Finance/Transaction Structuring Expert - Legal and Regulatory Frameworks Expert – Industrial Real Estate Development Expert - Land Use Planning and Land Administration Expert - Industrial Zone Operations and Management Expert- Industrial Zone Infrastructure Sites/Services Expert - Social and Gender Expert - Environmental Planning, ESMS Specialist - Health and Safety Specialist - Resettlement Economist

TBD TBD TBD TBD

TOTAL LABOR HOURS

CLINs Labor Category Base Year TOTAL Labor

Hours

Option Year 1 TOTAL Labor

Hours

Option Year 2 TOTAL Labor

Hours

Option Year 3 TOTAL Labor

Hours

All CLINs

All Labor Categories TBD TBD TBD TBD

B.4 ADDITIONAL LABOR CATEGORIES

In the performance of this task order, it may become desirable to add new labor categories to Section B. In such cases, the Government or the Contractor may identify additional labor categories and the Contractor may propose additional labor categories and rates.

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 INTRODUCTION

The Millennium Challenge Corporation (MCC) is working with the Government of Cote d’Ivoire (GOCI) on the development of Cote d’Ivoire’s first MCC Compact. MCC requires consultancy services to support the due diligence of projects and activities that will effectively address land-related constraints to industrial productivity and economic growth in Cote d’Ivoire. The overall objective of these services is to advise MCC on the formulation of an investment program related to industrial land that can be justified in terms of economic returns, implementability, and sustainability. Technical advisory support will be required for a base period and up to three option periods. Once a contract is signed, work as described below will be mobilized by MCC via more detailed Technical Directives.

Once a Compact with Cote d’Ivoire enters into force – expected in 2018 – the GOCI entity accountable for Compact implementation will use MCC Compact funds to procure the consulting services necessary to execute each of the Compact projects. Note: Quoters on this present MCC procurement are advised that the firm awarded a contract by MCC for these due diligence services will also be eligible to bid on subsequent procurements by the eventual GOCI entity responsible for actual implementation of Compact projects using MCC funds1. For avoidance of conflicts associated with future GOCI procurements, Quoters are advised that MCC will make available copies of certain of the deliverables under this contract to the GOCI entity responsible for implementation of the Compact, for the GOCI to then distribute as appropriate to provide relevant background information to all interested Quoters on future related procurements.

C.2 BACKGROUND AND ANALYSIS TO DATE

This section summarizes analysis work done to date. The contractor will pay particular attention to the information provided in this section and to other analyses provided by MCC upon contract signing and/or identified by the contractor. The contractor is expected to build from the analytic and consultative work already done by MCC and the Government of Cote d’Ivoire, avoiding duplication of analysis that already exists or is already well known and understood by key stakeholders.

A. Context

A Constraints Analysis is conducted during the first phase of engagement between MCC and a partner country to identify the most binding constraints to private investment and entrepreneurship that hold back economic growth. The results of this analysis enable Côte d’Ivoire, in partnership with MCC, to select activities that are most likely to contribute to sustainable poverty-reducing growth.

The Cote d’Ivoire Constraints Analysis identified lack of access to industrial land as one of the binding constraints to economic growth in Côte d’Ivoire, noting that investors seeking to expand existing operations or to open new industrial facilities frequently have difficulty accessing well-serviced land that meets their needs2. The mismatch of supply and

1 However would not be able to simultaneously hold contracts with both MCC and the GOCI or the eventual MCA-Cote d’Ivoire

2 The other binding constraints to economic growth identified by the Constraints Analysis were 1) low level of basic and technical/vocational skills, 2) barriers to moving goods and people, and 3) administrative burden and unpredictability of paying taxes.

demand is evidenced by the approximately 386 unmet applications for industrial land currently pending with the GOCI, some of which have been pending for years.

As part of the constraints analysis, the GOCI undertook combined preliminary consultations in June 2015 in Abidjan, Yamoussoukro, and Bouaké with government officials, civil society organizations, and various private sector representatives, including large and small enterprises, agricultural cooperatives, and women’s groups. MCC also consulted with the World Bank, International Monetary Fund, and Organization for Economic Co-operation and Development on their recent economic analyses of Côte d’Ivoire, and met with the international donor coordination group (chaired by the Agence Française de Développement) in Abidjan. A workshop in November 2015 organized by the GOCI convened representatives from ministries, the private sector, and customary leaders to review root causes of the lack of access to industrial land in Abidjan that meets demand. The Annexes contain a graphic depiction of the illustrative root causes identified.

Lack of access to industrial land has been caused in part by the decades-long crisis in Côte d’Ivoire, during which no new industrial zones were developed. Existing zones, including those in Abidjan, are saturated, while also accounting for nearly all of the country’s national production facilities, are severely degraded because of lack of regular maintenance and absence of effective management.

As Côte d’Ivoire has emerged from crisis, the GOCI has a goal of significantly increasing the contribution of the industrial sector to GDP to well above its current 22% and, in the process, diversifying and increasing the competitiveness of its economy. To achieve this objective, the GOCI has adopted reform strategies and policies to stimulate construction and rehabilitation of industrial infrastructure, focusing on development of industrial zones that are responsive to the needs of modern industry. Implementation of these reforms is led by the Ministry of Industry and Mines (MIM), which generally oversees the industrial land sector.

B. Problem Summary

Since 2011, industrial production in Côte d’Ivoire has increased across the board, driven by the return of stability and the implementation of significant institutional and policy reforms along with major public infrastructure projects.

Nonetheless, the State continues to play a dominant role in development, operation and maintenance of industrial zones and the sector continues to suffer from an insufficient supply of industrial land that responds to private sector demand.

The following issues, some of which are described in the Constraints Analysis, underlie the constraint of lack of access to industrial land:

The city of Abidjan generates nearly 90% of industrial production and has three industrial areas totaling 885Ha:

Yopougon (645Ha), Kumasi (120 Ha) and Vridi (120Ha). These three areas are saturated and face several problems described in more detail below due to insufficient investments in maintenance during the long crisis that the country experienced.

While there is a limited market for privately-owned land in urban areas, the quantity and quality of available land is insufficient to meet the needs of large industrial operations. Urban land markets do not function well and do not respond to the need for industrial land. To assemble land for industrial use within urban areas through market transactions would be too expensive and complicated to be practicable for most users of industrial land.

To assemble sufficient land in peri-urban or rural areas is similarly challenging because most of this land is managed under customary law and is not subject to formally documented private rights. The complexities and lack of clarity of tenure relationships in these peri-urban and rural areas make it almost impossible for private industrial developers to acquire sufficiently secure rights to land using market mechanisms. Further, the process for securing authorizations to convert this land from agricultural or rural use to industrial use requires an investment of time and money that is beyond the capacity of most investors.

As a result of difficulties in assembling industrial land, there has been little, if any, private development of industrial zones; most manufacturing and industrial operations either lease or buy land within industrial zones owned and developed by the government. Notwithstanding the apparent strong demand for new zones, the GOCI has been slow in bringing new industrial land into service to meet that demand and almost all the land within the three state-developed industrial zones in and around Abidjan has already been allocated so is considered to be fully occupied.

The problems caused by the slow pace of development of new industrial zones are exacerbated by the severe deterioration of existing zones and the lack of investment in ongoing maintenance of supporting infrastructure, including drainage, internal roads, and utilities such as water, sewage, wastewater treatment and electricity.

Moreover, management of ongoing operations of the zones is almost completely absent resulting in some areas in land speculation, unauthorized subleasing and the intrusion of residential and other non-industrial uses.

Occupants of these zones frequently cite severe problems of access and flooding, especially during the rainy season, unreliable electricity, lack of security, and the inability to find a government interlocutor responsible for addressing these problems. To the extent there is vacant and unused land in these existing industrial zones, there are very few incentives for the holders of that land either to put the land into use or to transfer it.

Notwithstanding these challenges related to the State-driven model of development and operation of industrial zones, the State is likely to continue to play a central role in facilitating the development of new industrial land and the ongoing management and maintenance of existing zones in the short, medium and, perhaps, longer term because the State is perhaps the only actor that can assemble enough land to respond to demand. At the same time, there is clear recognition by the GOCI and other stakeholders of the need to increase private sector involvement and to re-balance the roles of the State and the private sector in the industrial land sector.

The “Lack of Access to Industrial Land” constraint is very closely linked to the other three constraints identified in the Constraints Analysis, namely: (1) the low level of basic and technical/vocational skills; (2) the administrative burdens and unpredictability of paying taxes; and (3) the barriers to moving goods and people. Industrial investors often cite the need for a capable and reliable work force, clarity and predictability of tax and customs administration, and easy accessibility to their industrial facilities for inputs, finished products and staff as integral to a decision to invest in an industrial facility in Côte d’Ivoire.

C. Reforms

Over the past few years, the GOCI has undertaken significant policy and institutional reforms in the industrial land sector and has initiated several projects to rehabilitate existing industrial zones and bring new zones online.

Institutional Reforms: AGEDI and FODI

In May 2013, the GOCI began significant reform of the legal and institutional framework related to industrial land starting with the creation of the Agency for the Management and Development of Industrial Infrastructure (L’Agence de Gestion et de Développement des Infrastructure Industrielles, or AGEDI). AGEDI was created specifically to reinvigorate industrial investment by putting in place a comprehensive and transparent framework for the development and management of industrial areas and for the allocation of industrial land parcels by the GOCI. AGEDI was conferred with three principle missions: the creation of new economic areas for industrial use; the attribution of lots to those seeking access to industrial land; and the management of economic areas for industrial use. These measures were taken to reduce the delays in accessing industrial land and to more efficiently manage new and existing zones.

The concentration in AGEDI of authorities that had previously been dispersed among other agencies or one-stop-shop approach (guichet unique) is intended to create a single interlocutor with increased accountability to those seeking access to industrial land and those already operating facilities in industrial zones.

In late 2014, the GOCI complemented AGEDI with the creation of the Fund for the Development of Industrial Infrastructure (Le Fonds de Développement des Infrastructures Industrielles, or FODI), with the principal mission of mobilizing financial resources for industrial development. FODI was specifically empowered to finance the development, management, maintenance and rehabilitation of industrial zones, the purging of customary land rights and compensation of holders of those rights on lands that are being brought into industrial use, and capacity building related to industrial activities. FODI was authorized to borrow funds and undertake investments, and to receive rent payments for the occupation of industrial land, state budget allocations, donations, bequests and grants. According to representatives of FODI, it has already obtained loans from commercial banks (approximately 35 billion CFA of the 50 billion CFA being sought), borrowing against future revenues from rents in industrial zones.

FODI relies on the Direction Générale des Impôts (DGI) for the collections of rents in industrial zones. Rental revenues are channeled from regional DGI offices to the Trésor National and then to FODI. FODI estimates the payment rates on rents in industrial zones at approximately 60%.

AGEDI and FODI operate under the authority of the Ministry of Industry and Mines but are financially and legally independent and have their own management bodies.

Along with the creation of AGEDI and FODI, reorganization of MIM has strengthened the General Directorate of Private Sector Promotion, which aims to ensure the promotion of the private sector and monitoring of private investment in the industrial field. The General Directorate has three branches: Private Investment Promotion;

Infrastructure and Industrial Security; and Planning, Statistics and Industrial Cooperation.

The Directorate of Infrastructure and Industrial Safety is responsible for: (1) developing the implementation strategy of industrial infrastructure to promote and contribute to the organization and monitoring of industrial areas; and (2) defining and contributing to the organization of regulations and industrial safety standards.

Pricing Reforms

In response to high demand for industrial land and to help generate revenue for FODI to use to finance infrastructure related to industrial zones, the GOCI has increased the price per square meter to lease industrial land from less than $0.20 per year to the following ranges in different areas:

Zone A (District of Abidjan): from $3.33 to $24.94 m²/year;

Zone B (areas with a population of 60,000 or more): from $1.66 to $12.47 m²/year; and

Zone C (areas with populations less than 60,000 as well as areas designated by decree as special economic zones based on regional programs): from $0.17 to $1.24 m²/year.3

These rent levels were established in consultation with organizations representing the private sector based on:

(1) the cost of infrastructure rehabilitation works needed within existing zones; (2) the annual cost of zone maintenance; and (3) the need to subsidize operation and maintenance of zones outside of greater Abidjan.

They do not necessarily reflect market demand or the relative value of land within particular zones. The increases are being phased in based on reductions of 50% and 60% of the new rent levels for 2014 and 2015, respectively.

3 Zones A, B et C are defined by Decree n°2012-1123 of 30 November 2012 which establishes the mechanism for implementing l’Ordonnance n°2012-487 du 07 juin 2012 portant Code des Investissements.

The rent increases bring the official price of industrial land in line with regional comparators but are still significantly lower than prices on the quasi-legal secondary market, which can be significantly higher at over $60 per square meter (ECOWAS Business Climate Study, 2013). There is anecdotal evidence that the price increases have already caused some industrial users to cede excess unused land back to the State for potential reallocation to other industrial users.

Procedural Streamlining

The GOCI has also streamlined the procedure for obtaining industrial land and made it more transparent and responsive to the needs of applicants. The consolidated procedure includes four stages: the submission of an application to the Center for Promotion of Investments in Côte d’Ivoire (Centre de Promotion des Investissements en Côte d’Ivoire, or CEPICI); the issuance of a letter of authorization to put a parcel into use; the issuance of an order of occupation; and the issuance of a long-term lease (bail emphytéotique), ranging from 18 to 99 years, which is co-signed by the Ministry of Industry and Mines and the Ministry of Construction. After submission of the application to CEPICI, AGEDI becomes the applicant’s sole interlocutor, thereby eliminating the applicant’s need to consult with multiple agencies. Specific deadlines and notification requirements for each of the steps in the process are designed to shorten delays and increase accountability into the process.

D. GOCI Plans for the Future

Rehabilitation of Existing Zones

The GOCI has undertaken an ambitious program of rehabilitation, starting with the industrial ne of Yopougon, a 645 HA industrial zone located on the northwest edge of Abidjan along the Northern Highway (Autoroute du Nord). The project, financed by FODI, will rehabilitate the road and sewage networks, as well as improve the supply of potable water and electricity, and is expected to cost approximately 20 billion CFA ($33.2 million).

Work began in February 2015 and was originally estimated to be completed in ten months but delays have pushed the expected completion date back to March 2016. The National Office for Technical Studies and Development (Bureau National d’Etudes Techniques et de Développement, or BNETD) produced the feasibility studies and designs and is overseeing the work. AGEDI represents the government as the owner-delegate (maître d’ouvrage délégué) of the site.

New Zone Development

The GOCI has also launched the development of a new 940 HA industrial zone known as PK24 ocated at the 24 KM mark on the Northern Highway (l’Autoroute du Nord) within the District of Abidjan. Concessions for site development will be granted in three phases. The GOCI launched a Request for Proposals to develop the first phase of 209 HA in May, 2014 using a public-private partnership (PPP) model. The GOCI and the winning developer, China Harbor Engineering Company (CHEC), signed a framework agreement on October 5, 2015 and are expected to sign a PPP agreement in 2016.

Under the PPP arrangement, CHEC will be responsible for obtaining financing, conducting studies, developing the site and operating and marketing it for the duration of the PPP contract. The GOCI will be responsible for financing the primary work of roads, potable water, sanitation, and electricity for the site.

In order to respond to demand for industrial land on an urgent basis, the GOCI is developing a 62 HA area within PK24 at the estimated cost of 12 billion FCFA ($20 million). Work being overseen by BNEDT is already underway on trunk infrastructure, including access roads. In addition, the GOCI has reserved an area of 30 HA to be developed by the Chamber of Commerce and Industry of Côte d’Ivoire, which is looking for partners to develop the area for exclusive use of SMEs.

Development in and around PK24 will also include a logistics/transport platform, sometimes referred to as PK26, being developed by the Ministry of Transport to serve PK24 and facilitate linkages to the Port of Abidjan and to neighboring countries such as Burkina Faso and Mali.

To obtain the land for PK24, the GOCI has initiated a process of acquiring the land rights from holders of customary rights. This process began with the Declaration of Public Use in March 2014. In June, 2015, the GOCI delivered checks to the first group of holders of customary rights. Acquisition of the full 940HA site is expected to cost 23.5 billion FCFA ($39.1 million) at the rates established by the GOCI and will be financed by FODI in phases between 2015 and 2019. Moreover, a process of compensation for lost agricultural cultivation has also been undertaken by the Ministry of Agriculture.

The rehabilitation of Yopougon and development of PK24 constitute the core of the GOCI’s strategy to urgently increase the supply of industrial land. The GOCI’s medium- to long-term strategy for the industrial land sector includes: (i) rehabilitation of the other two industrial zones in Abidjan; (ii) rehabilitation and/or development of zones in the interior of the country, with five priority zones already identified; (iii) development of free-trade zones on Île Boulay, which is in direct proximity to the port in Abidjan, and in Bouaké; and (iv) development of a specialized agro-industrial zone of Bonoua to be located 60 KM from Abidjan.

Funding Strategy

Faced with these important needs, the GOCI’s funding strategy includes:

revenues generated from the rate increases described above;

loans obtained by FODI based on expected rental revenues; and mobilization of private financing through PPPs.

The GOCI is also seeking funding from international donors (e.g., the World Bank, African Development Bank, Islamic Development Bank and JICA) for development of zones in the interior of the country, which might not generate sufficient revenues and returns in the short run to be attractive to private investors.

E. Remaining Priorities

Despite the GOCI’s ambitious plans and reforms, important challenges remain in the sector.

Insufficient supply of industrial land. The supply of industrial land that responds to the needs of industrial enterprises remains severely limited because land in existing industrial zones in Abidjan is saturated and potential developers of new industrial zones are unable to access well-located and appropriately serviced land through urban and rural land markets. Prices to obtain land for new large industrial zones in urban areas in Abidjan, and likely in other urban centers, are expensive and urban land markets do not function well enough to allow purchasers to obtain land through market transactions. In peri-urban and rural areas, land that might be desirable for development of industrial zones is burdened by customary rights that are not formally documented and are almost impossible for a private developer to acquire without the intervention of the State. Moreover, this land needs to be reclassified for urban/industrial use and provided with necessary supporting infrastructure.

As a result of these difficulties, the State, in the short run, is likely to have a key role in assembling land and making it available to private investors and developers. This will require the continued recalibration of public and private roles and continued refinement of policies that incentivize private investment and participation in the sustainable development, operation, management and maintenance of industrial zones. Provision of land by the State, particularly in “secondary industrial poles” such as San-Pédro and Bouaké, must be based on robust market studies to ensure that zones are developed in locations and according to specifications that respond to market demand. The models and solutions being implemented at PK24 may need to be tailored for applicability elsewhere.

Poor condition and continued deterioration of existing industrial estate. Although the GOCI has undertaken an ambitious program to rehabilitate Yopougon and is eventually planning to expand that program to the other existing zones in Abidjan, the existing industrial estate will continue to deteriorate. Moreover, even if these zones are rehabilitated, their long term sustainability will not be ensured unless an incentive structure to engage the private sector is put in place and new financing mechanisms are found to generate funding for ongoing maintenance and future rehabilitation.

Knowledge, capacity experience and financing. Although the GOCI has undertaken significant reforms to streamline procedures for accessing industrial land, has created new institutions to develop and manage industrial zones, has put in place new financing mechanisms, and has initiated large-scale projects to rehabilitate old zones and develop new ones, these reforms and projects will take some time to show results. Experience and knowledge necessary to implement these reforms, including expertise in developing, managing and maintaining zones, in allocating land, and in structuring, negotiating and executing PPP transactions, and funds to finance these activities, are severely limited and require substantial augmentation.

Land markets. Mechanisms must be put in place to increase transparency of industrial land markets and to create linkages between developers of industrial land and businesses looking for industrial sites. Ultimately, a well-functioning market in industrial land is the best way to ensure that supply and demand reach equilibrium.

Growth Poles Outside Abidjan. There remains a need to expand the reach of the reforms to other areas of the country if demand for industrial land is sufficiently strong to support the development of zones that will be financially sustainable.

Environmental, Gender and Social Considerations. Effective urban planning of zones and their surrounding areas and coordination of all the relevant national and local stakeholders continue to be challenging. This can potentially result in development of industrial zones in areas that are not adequately planned or in which there are incompatible uses or insufficient infrastructure to support needs of transport, water, wastewater, electricity and solid waste disposal.

Preliminary analysis to date indicates that social and gender assessments are not systematically conducted and used to inform the development of new industrial zones and the management of existing zones, potentially leading to increased risk for vulnerable populations. For example, existing industrial zones have a significant amount of informal non-industrial economic activity (e.g. food vendors, mechanics, convenience stores) as well as informal housing settlements for workers and their families. The living and labor conditions within these zones are precarious and expose these populations to health and safety risks, in addition to increasing operational risks to enterprises formally occupying these zones.

Additionally, while the process used by the GOCI to “purge” existing customary rights during the acquisition of land is clear and participatory, the compensation paid or to be paid to dispossessed rights holders appears to be below the market value of the land. Therefore, in the case of PK24, the impacted persons, even though they are not necessarily displaced, are often unable to replace their lost economic assets (i.e. land for productive use).

Moreover, the focus on monetary compensation, without additional ancillary measures, has been insufficient to enable some impacted parties and disadvantaged groups, such as women and youth, to participate fully in the economic growth and poverty reduction benefits of industrial zone development.

F. Potential Areas of MCC Investment

To deepen, broaden and accelerate the reforms already in process and to further address the underlying causes of the lack of access to industrial land, the following areas of potential investment are being considered:

Tools for ongoing monitoring of demand for industrial land and demand trends. Some studies of demand for industrial land have already been conducted, notably a study completed by “COMETE” in the context of a project to assist SMEs financed by the World Bank. Further study of demand, including in growth centers outside Abidjan, would help ensure that policies and projects are appropriately targeted to demand of industrial land users and will incentivize the participation of the private sector. This will also contribute to a better understanding of needs for transportation and other infrastructure as well as opportunities to expand regional trade and linkages to regional markets.

Reforms to enable land markets to respond to demand for industrial land. As a practical matter, there is no formal market in industrial land as land within existing industrial zones is controlled by the State. The State continues to exercise strong control in order to ensure that land in industrial zones is put into industrial use and complies with applicable standards. In the longer run, however, the State should begin to explore ways in which the objectives of ensuring development and appropriate use of industrial parcels can be achieved while allowing market forces to work to connect suppliers of industrial land with buyers. Many countries have developed information platforms for the marketing of industrial land, either by the State or by private holders, to link suppliers or sellers of industrial land with those who are seeking it, and to assist government actors to better manage public land and to more efficiently facilitate market transactions.

Further building of the capacity and improving coordination of AGEDI, FODI and other key actors. AGEDI and FODI are in their early stages and are charged with an extremely ambitious reform agenda. Their capacity, in terms of human resources, technical capacity and geographic coverage will need to be augmented for the reforms to be implemented and sustained. Institutional organizational and financial sustainability studies should inform the future staffing of these agencies as they inevitably expand. Technical capacity building will also be needed. Even with the creation of these new agencies with consolidated authorities, there remain challenges related to effective coordination of national and local agencies, including the Ministries of Industry, Transport and Construction. Further, successful industrial development requires a workforce that responds to the needs of industrial firms. Opportunities with the Ministry of Education and providers of technical and vocational training should be explored.

Refining and expanding the use of PPPs. As noted, the GOCI has already embraced the use of PPPs to attract private participation in the industrial land sector. There remain opportunities to refine the PPP approach to invest more in the up-front preparation of projects, including more robust feasibility studies and the involvement of transaction advisors in the structuring and marketing of the PPP transaction. International experience indicates that more up-front investment in project preparation is likely to increase bidder interest, reduce negotiation time, and ensure that the eventual project meets the public sector’s objectives. The use of the PPPs and other models to catalyze private investment can also be expanded to zones outside greater Abidjan, once market demand is confirmed.

Improvement of environmental, social and gender performance. Adoption of measures that will mitigate potential negative effects of industrial development on the environment and on local populations and will allow them, and disadvantage groups such as women and youth, to participate in the economic growth and poverty reduction benefits of the industrial sector. This could include specific measures to improve the “purging” and compensation processes and to expand opportunities for impacted populations (including informal economic actors) to benefit from the economic growth generated from industrial development. Technical and capacity building support to key GOCI partners on the incorporation of social and gender considerations into policies and practices around the development and management of industrial zones would further help ensure that impacted populations benefit from the economic growth generated from the industrial zones. Finally, new ways of incentivizing investment in more efficient and sustainable energy technologies and compliance with improved environmental standards are proving to be successful in other countries seeking to stimulate industrial development.

C.3 COMPACT PROPOSAL AND SMART URBANIZATION PROJECT

As a result of the binding constraints identified in the Constraints Analysis, it has been agreed that Cote d’Ivoire will submit to MCC two projects for funding, 1) an Employability Project, which will address the education constraints, and 2) a Smart Urbanization project, which will focus on Abidjan and address, in combined fashion, the transport constraint (barriers to moving goods and people), and the industrial land constraint (lack of access to industrial land). Services contracted as a result of this procurement will support due diligence of the industrial land portion of the Abidjan Smart Urbanization Project.

The proposed Abidjan Smart Urbanization project would address the economic constraints associated with transport of goods and people and with industrial productivity. A first activity in the project is expected support sustained improved performance of urban planning overall and the performance of institutions with a responsibility for transport and for the competitiveness of industrial areas in Greater Abidjan. A second activity would provide funding for targeted infrastructure works or for advisory assistance to the GOCI for obtaining private sector financing for targeted infrastructure. An illustrative list of the types of industrial land-related components that may be included in each Activity appears below:

NOTE - the precise project organizing structure of Activities and Sub-Activities may evolve, however the core problems to be solved and project components will remain those of urban planning, institutional performance of transport- and industrial land – related institutions, and direct funding of transport and industrial land infrastructure and revitalization and/or transaction advisory/TA support for third party financing of new works or of revitalization works.

Area 1 –Institutions and Planning

Urban Planning/Planning Institutions Investments

Urban Transport Institutional Investments

Institutional Investments

Area 2 – Infrastructure and Infrastructure Financing/PPP

Abidjan Transport Infrastructure

Abidjan Industrial Productivity Infrastructure

ILLUSTRATIVE DETAIL - Area 1: Institutions and Planning

Components financed by MCC may include:

Urban Planning/Planning Institutions Investments

Investments supporting the GOCI to strengthen planning, planning coordination, and planning enforcement in Greater Abidjan, and planning for future urban growth.

Urban Transport Institutional Investments

Investments supporting the GOCI to strengthen urban transport planning, transport system operations, management and maintenance and sustainability

Industrial Zone Competitiveness Institutional Investments

Components in this area are the main emphasis of services provided under this contract. An illustrative list of the potential types of MCC investments follows. Additional elements will be added, and/or refinements made, by the time of the August 30 Project Proposal submission as a result of additional GOCI and MCC design and due diligence work, and further during the Project Development Phase ending in April 2017 as a result of the contractor’s work under this present procurement.

The initial institutions that will be supported will be the Ministry of Infrastructure and Mines, AGEDI, and FODI.

Institutional capacity building will target the combined core missions of the three entities: 1) management of existing and new zones, 2) rehabilitation of existing zones, and 3) development of new zones.

Develop Industrial Sector Strategy - Schema Directeur

i. This component would assist the GOCI to document trends, identify strategic directions, strategic regions, and have planning mechanisms to monitor trends and adapt accordingly on a continuous basis. This component is inspired by the Schema Directeur for Infrastructure Routier, and would build on existing industrial sector studies completed by the World Bank and IFC.

Make Industrial Land Market More Dynamic

i. This component would support the establishment of an industrial land market information system, to make more real-time information available about industrial lots available for allocation to industrial firms to set up new operations or expand existing operations.

Establish Dedicated PPP and Procurement Units

i. This component would support the establishment of a PPP unit and a procurement unit specifically responsible for industrial zone development, rehabilitation, and zone service management

ii. The PPP skills needed will be montage and negotiation of PPP opportunities, and management of PPP arrangements by FODI and AGEDI per the responsibilities of each. These units will be developed in coordination with existing GOCI PPP unit, to balance responsibilities across the relevant institutions. FODI is currently the entity responsible for any GOCI obligations incurred as a result of PPP agreements related to industrial land/industrial zones.

iii. The procurement skills needed will be to enable AGEDI and FODI to directly procure services for feasibility studies, works, or management or maintenance services in zones. This may also include skills related to viable concession arrangements for service delivery and maintenance.

Zone Rehabilitation Financing and Rehabilitation Project Management Model

i. This component would be to support the GOCI to establish a feasible model for financing and management of immediate rehabilitation of 3 existing zones in Abidjan

ii. Transaction advisory services to support the testing application of the model could be funded

iii. Support to AGEDI and FODI to build capacity to directly oversee and/or manage rehabilitation activities

Develop Zone Management Models

i. This component could identify and test feasibility of concession arrangements for zone operations/zone service delivery

ii. Strengthen as needed procedures for land seizure to be undertaken by the competent entity if current tenants are not developing or using land for the anticipated productive activities

iii. Incorporate environmental and social performance tools into zone management models and approaches, this could include components such as…