Request for Proposal (RFP): Business Plan Development

Terms of Reference

Consultancy to develop Business plan for the Bamboo treatment centers supported by the Impact 26 project.

1. Background

Habitat for Humanity Nepal’s (Habitat Nepal) Impact 2026 project Phase II (January 2021 – June 2025) will lay the foundation for scaling the adoption of safe (disaster-resilient), durable and affordable treated bamboo housing solutions among low-income families of the Eastern Terai, Nepal. Critical to scaling bamboo housing will be the successful identification and validation of strategies for reaching sustainability. Phase II follows Phase I (July 2019 – December 2020), which focused on researching market barriers and improving bamboo treatment and house designs. 

The goal of the Impact 2026 Project is: Adoption of safe (disaster-resilient), durable and affordable bamboo housing solutions significantly increased among low-income families of the Eastern terai over the next seven years.

An integral component in Phase II is a scalable market-based strategy for selling bamboo housing solutions. This component will require significant research, testing, and innovation, and will involve engaging low-income households, financial institutions, and other market actors to collectively promote sales of bamboo housing solutions – which might include incremental constructions or improvements. Solutions that improve acceptance and use of treated bamboo by low-income households will be given particular attention, as consideration and acceptance of this technology is one of the biggest barriers inhibiting use. 

Despite favorable legal and political contexts, broad market adoption of bamboo construction remains a challenge. Perceptions that bamboo is a “poor family’s material,” lack of awareness of treated bamboo as a viable building material, and rudimentary bamboo construction practices all contribute to the slow adoption.  Houses built via projects with Habitat Nepal are accepted, though not yet replicated.

Habitat Nepal’s primary reasons for promoting bamboo as a preferred house construction material are the following: 

• A familiar and widely available material. Bamboo is native to Nepal, where several varieties grow that are particularly suitable for construction purposes and is commonly utilized as a vernacular (or traditional), multi-purpose, and easily available construction material.  
• Affordable option. Bamboo is a lower cost option than similarly utilized materials, such as wood or concrete. Treated bamboo, which resists insect-related damage and deterioration, is less expensive than other locally available alternatives for housing. 
• An environmentally friendly construction material. Cultivation is low-cost, and plants grow quickly. Bamboo is both renewable and biodegradable. 
• Disaster-resilient properties. Bamboo’s lightweight and flexible properties make it particularly suitable to resist earthquake-related damage. Furthermore, bamboo cultivation prevents soil erosion, which can help mitigate the effects of seasonal flooding.

2. Objectives

• Consultations with the market actors and firms (about 10) that are supported by Impact 26 project 
  • Capture market factors affecting business operations 
• Business plan development for each bamboo treatment center.
  • Current operations, identifying strengths and weaknesses
  • Recommend strategies for scaling operations, market expansion and increasing profitability
  • Develop financial models and projections to guide future growth 
  • Provide actionable steps to enhance operational efficiency and sustainability
  • Provide a detail market trends and insight

3. Scope of Work

The scope of work shall include the following. However, it should be revised based on the findings

• Conduct an in-depth analysis of existing bamboo treatment center operations, financial status, and market positioning.
• Identify gaps in current operational models and areas for improvement.
• Evaluate market demand for treated bamboo products and assess the potential for expansion.
• Develop a comprehensive business plan that addresses financial, operational, marketing, and sustainability aspects.
• Ensure the business plan aligns with sustainable and eco-friendly practices to promote green growth.
• Recommendations and way forward to facilitate the implementation of these business plans

4. Activities

Bamboo treatment centers play a crucial role in extending the life and utility of bamboo by reducing susceptibility to pests, fungi, and decay. The current centers face challenges in scaling operations, enhancing productivity, optimizing costs, and entering new markets. A robust business plan is needed to guide the strategic growth and sustainability of these centers.

Here is the list of activities that are required:

• Preliminary Assessment
• Business Model Analysis 
• Market Analysis 
• Financial Analysis and Projections 
• Strategic Plan Development

5. Deliverables and Timeline expected from party

The party will deliver the following:  

• Inception report (2 weeks from the start): Detailing the methodology, work plan, timeline within two weeks of the commencement 
• Market operational Assessment report (6 weeks (about 1 and a half months) from the start): Summary of findings from the market and operational analysis.
• Draft Business Plan (8 weeks (about 2 months) from the start): A detailed draft business plan including financial models, market strategies, and recommendations for improvement.
• Final Business Plan (10-12 weeks (about 3 months) from the start): A final version incorporating feedback from stakeholders, with detailed financial projections, risk analysis, and implementation strategy.

6. Specific inputs from Habitat Nepal  

Habitat Nepal shall be responsible for backstop party for implementation of proposed plan for strengthen market system of treated bamboo and promotion of treated bamboo housing solution. Addition to this, the specific inputs from Habitat Nepal will be as following:  

• Inputs on development of work plan and implementation approach 
• Provide technical support for the implementation of work plan 
• Orientation on project structure and log-frame
• Facilitate identifying and organizing consultation meetings with local experts, actors and stakeholders as required
• Support to develop collaboration with local partners and stakeholders
• Provide project related documents and data/information as requested by the consultant 
• Provide input and comments on reports, findings, and studies
• Release budget as per agreed payment schedules

7. Queries on TOR 

In case of any confusion or clarification in this TOR, the firm/individual can send their issues to psparmar@habitatnepal.org

8. Payment

Please present the payment that includes travel costs, accommodation & food expenses, expert fee, etc. The budget will be paid in reimbursement monthly as per progress review and evaluation.

Note: Please be informed that Habitat Nepal will withhold applicable Tax Deduction at Source (TDS) and please include 13% VAT in your budget in the financial proposal.

9. Qualification and experiences required 

The consulting team should consist of experts with:

• Experience in business planning and strategy development.
• Expertise in bamboo treatment or similar industries.
• Strong financial analysis and modeling skills.
• Knowledge of sustainable business practices and market expansion strategies.
• Business entity/ individuals having at least 5 years of experience in treated bamboo will be considered beneficial  

10. Process and Deadline 

Firms interested in meeting the above qualifications are invited to submit a hard copy of your technical and financial proposal in a separate sealed envelope at the following address.

Habitat for Humanity International Nepal

House No 126, New Colony Marg

Dhobighat, Lalitpur, Nepal

Proposal should be received no later than 20th October 2024. The main body of proposal should include the following: 

• A cover letter showing an expression of interest 
• Tentative plan and deliverables, providing details where possible and needed as per format in annex
• Estimated budget based on proposed activity as per format in annex
• Organization’s brief profile.

Legal documents required

• A copy of registration certificate
• A copy of tax clearance certificate
• A copy of VAT certificate

11. Ethical Standards and Intellectual Property

In accordance with its foundational mission principles, Habitat for Humanity Nepal is committed to the highest ethical standards and opposes all forms of discrimination, exploitation, and abuse. We intend to create and maintain a work and living environment that is safe, productive, and respectful for our colleagues and for all we serve.

We require that all staff and representatives (consultants, contractors, vendors/suppliers, interns, volunteers, agents, and implementing partner organizations) take seriously their ethical responsibilities to Safeguarding (Child Protection, Prevention of Sexual Exploitation Harassment, and Abuse) our intended beneficiaries, their communities (especially children), and all those with whom we work.

Abiding with the organization, the consultancy service has responsibilities to maintain an environment that prevents harassment, sexual exploitation, and abuse, safeguards the rights of beneficiaries and community members (especially children), and promotes the implementation of Habitat for Humanity’s code of conduct.

Throughout the assignment engagements, the service providers are expected to adhere to Habitat Nepal’s code of conduct including the safeguarding policy ensuring that all measures are taken to protect the rights, safety, and welfare of the individuals and communities involved.

The service provider should guarantee that the analysis is technically accurate and reliable and is conducted in a transparent and impartial manner. All products resulting from this analysis will be owned by Habitat. The service provider will not be allowed, without prior authorization in writing, to present any of the results or use any product resulting from the analysis as his or her own or for private publication purposes.

Annex 1

Budget Template