RFI ERDA - 72039121RFI00002.pdf

Request for Information (RFI)

To: All Interested International or Local Pakistani Organizations

Subject: Economic Recovery and Development Activity (ERDA)

Reference Number : ERDA Activity Release Date : February 4, 2021 Response Due Date: February 19, 2021, 16:30 (Pakistan Standard Time (PST)

I. Request for Information

This Request for Information (RFI) is a preliminary call for expressions of interest to provide services for the activity titled, “Economic Recovery and Development Activity”.

USAID/Pakistan’s Economic Recovery and Development Activity (ERDA) is a $20-25 million, five-year (2021-2026) activity designed to expand economic opportunities in the Newly Merged Districts (NMDs) of Pakistan’s Khyber Pakhtunkhwa (KP) province by strengthening and modernizing the agriculture sector and promoting farm and off-farm micro- and small enterprises (MSEs). Interventions under this activity will promote sustainable economic growth by improving agriculture sector capacity and supporting allied MSEs in the non-agriculture sectors. Additionally, the activity will leverage planned public sector development initiatives and will support policy reforms to create an enabling environment for private sector investments in sectors that offer the highest potential for economic growth. The activity will provide targeted technical assistance to the Government of Khyber Pakhtunkhwa (GoKP) to maximize the impact of planned public sector economic growth initiatives in the NMDs and promote sustainable economic activity in the region.

In addition, USAID seeks input regarding our proposed approach listed in Attachment A. The place of performance for this activity is Newly Merged Districts of Khyber Pakhtunkhwa Province of Pakistan.

USAID/Pakistan intends to issue one Award for the provision of these services. The period of performance under this award will be for five years. An estimated award ceiling is between $20 - $25 million.

The selected awardee will be required to successfully register their organization to operate in Pakistan and obtain the necessary No Objection Certificate from the concerned host government agencies. Also the organizations will be subject to partner vetting requirements. As per the USAID/Pakistan’s Vetting Mission Order, key individuals of the offeror and that of any proposed sub-awardees will be required to comply with the vetting requirement.

Interested parties wishing to participate should submit an expression of interest (5-10 pages) which addresses their capacity and capability for performing this activity. USAID relies on the recency and relevancy of past performance information when determining awards to recipients. Recency is defined as the awards recipient has performance as either a prime or subrecipient within the last 3-5 years. Relevancy is defined as awards the recipient has received for projects with a similar scope and magnitude as this requirement. Please include three examples of past performance history meeting this criteria.

HOW TO SUBMIT A RESPONSE

Interested parties wishing to participate should submit their capabilities statements electronically to pkcontract@usaid.gov with a copy to Mr. Aaqib Hameed at aahameed@usaid.gov. Responses to this RFI will be accepted through as stated above in response due date. You will receive only an electronic confirmation acknowledging receipt of your response, but will not receive individualized feedback or suggestions.

Responses may contribute to upcoming activity design(s). However, this RFI will not be construed as a commitment by the U.S. Government to issue any solicitation, award any grant, or pay for any information submitted as a result of this request. Responders are responsible for adequately marking proprietary or restricted information contained in their response.

No basis for claims against the U.S. Government shall arise as a result of a response to this Request for Information or from the U.S. Government’s use of such information. Specific questions about this RFI should be directed only to the email addresses identified above. This office will not respond to any telephone or other inquiries regarding this notice.

The submitted information must not exceed 10 pages. The submitted response should include:

Reference Number: ERDA Name / Email Affiliation/ Organization Address

● Short narrative, including capabilities, strengths, and expected contributions;

● Comments on ERDA objectives;

● Questions/clarifications regarding our proposed strategy listed in Attachment A; and

● Experience - Past Performance references (3).

Please attach any documents that support your comments to the above questions. Please note USAID is not seeking technical or cost proposals at this time. Do not submit any proposal/application at this time in response to this RFI. Only the information as requested above or in Attachment A will be considered. Issuance of this notice does not constitute an award commitment to international or local Pakistani not-for-profit organizations on part of the U.S.

Government, nor does it commit the Government to pay for any costs incurred in the preparation of comments. Questions regarding this notice can be directed to Mr. Muhammad Ali Bilal, Administrative Agreement Officer, at mbilal@usaid.gov with a copy to Aaqib Hameed, at aahameed@usaid.gov and Saadi Akhtar, at sakhtar@usaid.gov.

Issued By: USAID/Pakistan’s Office of Acquisition and Assistance mailto:pkcontract@usaid.gov mailto:mbilal@usaid.gov mailto:aahameed@usaid.gov mailto:sakhtar@usaid.gov

Attachment - A

1. BACKGROUND

The NMDs are some of the most remote, least integrated regions of Pakistan which have historically been deprived of mainstream economic development. Over 70 percent of the NMD’s population lives in multidimensional poverty1 due to the lack of any significant income and revenue-generation sources. Per capita income in the NMDs is believed to be as little as half of the national per capita income2. The NMDs have remained deprived of any meaningful economic infrastructure due to decades of neglect and a lack of investments that would provide the population with sustainable livelihood opportunities. Over a decade of militancy and military operations exacerbated economic conditions of the local population, significantly damaging the economic infrastructure and causing displacement of more than 3 million people from their hometowns.

The NMDs economy is mostly informal with the majority of the population engaged in subsistence agriculture, livestock rearing, or micro- and small business enterprises. Before the merger with Khyber Pakhtunkhwa in May, 2018, there was no legal and regulatory framework for private businesses. The economy of NMDs has historically been based significantly around the Pakistan-Afghanistan transit trade.

The NMDs enjoy a 2,500 km border with Afghanistan with 260 formal and informal cross-border trade routes, and tribes living on both sides of the border have benefited from these historic trade ties. Formal as well as informal trade with Afghanistan has been a mainstay of NMDs economy. However, stringent border controls in recent years due to security concerns has significantly impacted trade activity resulting in the closure of informal trading routes. Due to limited economic opportunities, a significant portion of NMDs youth migrate to the Middle East and other parts of the country, particularly Karachi, for employment.

The 2018 merger and the FATA reforms initiative provide an opportunity to promote private sector-led economic activity in high potential sectors. The Government of Pakistan launched a comprehensive development plan, Tribal Decade Strategy (TDS), to promote sustainable development in the erstwhile FATA region and bring the region’s socioeconomic indicators at par with the rest of the province. Economic development of the merged districts is a major focus of the TDS. The GoKP has a strong commitment3 to the sustained development, prosperity and well-being of the people of the Merged Areas (MA) and intends to carry out an accelerated development program to enhance human potential, generate economic opportunities and improve livelihoods to facilitate economic integration of the merged areas.

2. OBJECTIVES

The objective of the Economic Recovery and Development Activity (ERDA) is to expand economic opportunities in the NMDs by strengthening and modernizing the agriculture sector and promoting micro-and small enterprises in potential sectors.

Sub Objective 1

1 UNDP 2016 Poverty Index Report and Economic Survey of Pakistan 2015-16 2 Global Security report at https://www.globalsecurity.org/military/world/pakistan/fata.htm#:~:text=The%20FATA's%20per%20capita%20inc Areasome,third%20of%20the%20national%20average.

3 Tribal Decade Strategy https://www.globalsecurity.org/military/world/pakistan/fata.htm#:~:text=The%20FATA's%20per%20capita%20income,third%20of%20the%20national%20average https://www.globalsecurity.org/military/world/pakistan/fata.htm#:~:text=The%20FATA's%20per%20capita%20income,third%20of%20the%20national%20average

The sub objective 1 is to enhance agriculture sector capacity by strengthening agriculture production resources and modernize the sector by improving the productivity of market-oriented and nutrient-rich crops and livestock.

Sub Objective 2 The sub objective 2 is to strengthen micro- and small business in both farm and non-farm sectors through improved access to finance; develop value chains in potential sectors; improve business enabling environment for private sector investments.

3. PROGRAM DESCRIPTION

ERDA is expected to be a $20-25 million five-year activity with an overarching objective to expand economic opportunities in the NMDs. The activity will take a comprehensive approach to promote economic activity in both agriculture and non-agriculture sectors. Building on the merger initiative and the development objectives in Tribal Decade Strategy, the activity seeks to stimulate private sector-led economic activity in the NMDs. The activity will leverage planned public sector development initiatives and will support policy reforms to create an enabling environment for private sector investments in high potential sectors. The activity will provide targeted technical assistance to the GoKP to maximize impact of planned public sector economic growth initiatives in the NMDs. Together, these interventions will expand economic opportunities and will contribute to economic mainstreaming of the NMDs.

4. QUESTIONS

USAID/Pakistan is interested in gathering information on the following:

● Identification of international or local Pakistani organizations with a capability to successfully implement ERDA.

● Identification of organizations with NMDs and adjoining areas of Khyber Pakhtunkhwa Province.

● Identification of activity challenges, constraints, and limitations in NMDs in particular and KP region in general.

● Identification of organizational best practices for these activities in Pakistan or similar environments.

● Identification of similar activities being implemented by other development partners and how this project will compliment these efforts.