TORs for

Feasibility of Community based Business Facilitation Center for Carpet Weaving Groups of Afghan Refugees

1.       Introduction of Taraqee Foundation:

and Pakistan in general.  Taraqee Foundation (TF) is registered with Security and Exchange Commission of Pakistan (SECP) under the Company’s Ordinance 1984 and Balochistan Charities Registration & Regulation Authority; and engaged in the field since 1994 in different development sectors of Balochistan i.e., Health, Education, Environment & Infrastructure, Livelihood, and emergency response.

2.       Introduction of Program

The ToRs are developed to conduct of assignment commissioned under the "Poverty Graduation Project for Afghan Refugees” for task of development of feasibility, financial forecast/modeling for social enterprise business model/business facilitation center. Services of individual consultant are required to deliver the following tasks against the set objectives of this assignment for a duration of 1 and half months.

3.       Background and Rational:

The idea and concept of this program is to establish 2 community-based business facilitation centers for carpet weaving with the support of UNHCR and PPAF and implementing by Taraqee Foundation which will be fully equipped with all the machinery and required tools for production and marketing need for the carpet weaving in Afghan refugees’ camps in Khyber Pakhtunkhwa, and Balochistan, 1 at each location, to boost and improve the livelihood capacity of the Afghan refugees and host community.  The objective is to enhance the livelihoods of Afghan Refugees through skill development and marketing of carpets, to bring them out from the poverty, and reduce their dependency syndrome, so that they will be able to start their own small business and can improve the existing ones. While in future during their return to country-of-origin i.e. Afghanistan, the acquired skills and market linkages will give them support in earnings by replicating the best practice and learnings through this social enterprise model.                                                             

The Business Facilitation Center is a one stop facility, that provides information, products and services related to production, marketing, technology, support in access to finance, regulatory compliance, business registration, taxation and capacity building support and services to the potential entrepreneurs around carpet weaving. The Business Facilitation Center (BFC) will help to create a network of weavers unified through a common goal where everyone makes a benefit. It will also allow people to take control of their economic future on sustainable basis. Moreover, the profits generated will either be reinvested in the BFC or returned to the members. The Business Facilitation Center (BFC) will enable Poor Carpet Producers to;

a)       Establish producers’ owned state of the art ONE STOP facility

b)      Provision of trainings, goods, and services

c)       Eliminate the unnecessary profits of middlemen

d)      Prevent the exploitation of the weaker members of group

e)      Promote mutual understanding and education among weavers

f)        Increase access to financial services & Saving Group Formation

g)       Increase access to high end markets (through MADE51 & PCMEA)

h)      Skilling in E-Commerce and Business Development Skills

4.       OBJETIVES OF THE ASSIGNMENT

The overall objective of the assignment is to help assess the financial and technical viability and sustainability of the proposed joint business models /Social Enterprises/business facilitation center   in PGP districts as well as support the development of professional financial and technical management capacities of these business models.

5.       SPECIFIC OBJECTIVE OF THE ASSIGNMENT

• To design and develop feasibility and financial models for businesses in craft , carpet weaving sector
• To develop investment plans with detail costing of inputs, projected revenue, income statement and yearly balance sheet. Taxation details.
• To develop detail budget, aggregated cash flows, and with or without project financial comparisons for cooperatives business models.
• To identify the legal embedment for business facilitation center OR to engage the government-owned location for their upgradation and provide the updated equipment/s (soft and hard)
• To identify the roles and responsibilities of business partners/members and profit-sharing mechanism (refugees as well as host members. Refugees’ rights should be protected in terms of profit sharing and responsibilities)
• To develop the production plan, feasibility and implementation plan for establishment of business facilitation center for carpet weavers.
• To conduct the orientation and training of business facilitation center personnel of partner organizations, resource person and businesses on financial and operational management.
• To develop the capacities of the Afghan refugees residing in the camp OR Urban locations for carpet/rugs weaving under this business facilitation center
• To identify the buyers (who is going to buy the products)
• To develop marketing plan for the developed products
• To identify backward and forward linkages for sustainability of the center

6.       DELIVERABLES OF THE ASSIGNMENT

1. Financial forecasts and risk/return analysis for business development plan made. This will include both desk work and field visit to the project area. Preparation of technical viability of the business model.
2. Develop a social enterprise model around existing skills related to carpet weaving in consultation with relevant stakeholders. Help create a self-governing structure for owning and operating the umbrella brand.
3. Registration of the social enterprise, clear mechanism of the community based social enterprise development model with the relevant authority.
4.  Identification of organizational structure/office bearers, of the center and clear roles and responsibilities mechanism will be required, (Community based social enterprise development center/model).
5. Legal bindings and land availability and acquisition, between the Afghan refugees and host community, government, proper agreement to be done to protect the rights of Afghan refugees.
6. Design of the structure of the prefabricated building of center . Preparation of BoQs Bill of Quantities and Budget for the structure
7. Preparation of List of machinery, equipment’s, and other tools, spinning machines availability for the carpet/rugs, other goods weaving etc. Finalization of machinery and all the relevant equipment’s required in the center
8. Proper budgeting for the structure and equipment.
9. Assessment of existing skills and to identify the production capacity of the producer and preparation of capacity building plan for production and marketing
10. List of buyers and linkages with the market both digital and through some of the other mechanism both on the national and international level that the producers can get valuable income for their produced goods.
11. Orientation and training of business development personnel, partner organization and business models. Orientation and training on financial management of cooperatives/business model
12. Detailed Final Report

7.       Deliverables, Timeline and Payment Milestones:

PPAF and Taraqee Foundation Responsibilities:

                     I.            PPAF Responsibility:

a)       Facilitation in processing disbursements of funds, provision of operational support in terms of Taraqee Foundation management, technical inputs, and necessary approval when and where required.

                   II.            Responsibility of Taraqee Foundation:

a)       Execution of all work as per stated the scope of the assignment and in line with the methodology agreed during work initiation.

b)      Emphasis would be given to timely achievements targets laid down under the heading of deliverables.

c)       As because of the tight time schedule, Taraqee Foundation must take quick and productive action to fulfil the assignment and establish a fully equipped center in the agreed time frame.

d)      Taraqee Foundation required to involve all the stake holders, like Afghan Shura members, Government authorities, CAR, and specifically the community members both Afghan refugees and host communities.

8.       Consultant’s Qualification:

1. MBA or equivalent from reputable institution; MS in related field will be preferred
2. Experience of working with international organizations will be preferred
3. Proven expertise in development of financial and technical feasibility of business models
4. Experience in registration of enterprises or cooperatives
5. Demonstrated competence in design, organization development and marketing.

9.       Budget and Payment Schedule:

Budgeted package will be paid to the consultant lump sum basis upon completion of his level deliverables i.e. timely submission of field visits reports (FVR) to project management.

Duration: 1 month