Consulting Services to Conduct Financial and Economic Feasibility for Rehabilitation of the Klay Fish Hatchery at Klay, Bomi County, Liberia


Terms of Reference


Consulting Services to Conduct Financial and Economic Feasibility for Rehabilitation of the Klay Fish Hatchery at Klay, Bomi County, Liberia

for the National Fisheries and Aquaculture Authority (NaFAA)

February 2021

1.0 Introduction

The Government of Liberia through the National Fisheries and Aquaculture Authority (NaFAA) has apportioned funds from its internally generated revenue and desires to apply part of the proceeds towards eligible payment of the services of a consultant for the conduct of financial and economic feasibility for Rehabilitation of the Klay Fish Hatchery at Klay, Bomi County, Liberia. The purpose of this terms of reference is to solicit the interest of qualified consultants to conduct the feasibility assessment. 

2.0 Background

Liberia has a coastline of some 590km, a relatively narrow shelf with an average width of 31km, and total Economic Exclusion Zone (EEZ) of around 18,400km2. The coastline of Liberia is dotted with about 114 fish landings sites but, from North to South, four large clusters are located around the large towns of Robertsport, Monrovia, Buchanan and Harper.  The key landing sites include: Kru & Fanti Town in Robertsport; West Point, New Kru town, Banjor, King Gray and ELWA in Monrovia; Marshall, Little Bassa, Small & Big Fanti Town in Bassa & Margibi counties; Cestos city; Greenville; Sasstown and Grandcess in Grand Kru; and Cavalla & Harper in Maryland County.

The main oceanic pelagic resources are tuna and tuna-like species such as bonito and marlin, and the sardinella stocks; S. aurita and S. maderensis. The shelf is slightly narrower in northern waters and rather broader in the south, where it virtually provides the starting point for the Gulf of Guinea. Unlike the coastal regions to the north such as Sierra Leone and Guinea, Liberia is not affected by the upwelling effects of the Canary Current, which therefore limits its productivity, although it does receive heavy seasonal discharges from the numerous rivers and their estuaries; these provide productive conditions for shrimp fisheries. The lack of upwelling does not favour the production of the small pelagic sardine-like species so plentiful further north but, nevertheless, they are sufficiently prolific as to provide a significant element in the fishery.

The artisanal fishery is estimated to provide a means of livelihood for about 33,120 full-time fisher folk and processors in both marine and inland waters, about 61% of whom are Liberians and 60% females. The Liberians are mainly Kru and the foreigners are mainly Fanti and Popoe fishers who migrated to Liberia from Benin, Ghana and Cote D’Ivoire, with recent additions of Gambian and Senegalese fishermen in Cape Mount County. Grand Kru County with 35 landing sites and Sinoe County with 30 have the largest number of landing sites and are dominated by indigenous fisher folk, but land substantially less fish annually than Grand Cape

Mount County with 14 sites and Grand Bassa County with 18 sites; a reflection of the smaller boats used by indigenous fisher folk.

Aquaculture production holds a largely untapped potential for Liberia and other countries in the West Africa region. Aquaculture development in Liberia dates back to the 1950s when experiments with common carp, African catfish and tilapia varieties were conducted in small dugout ponds at the now Central Agriculture Research Institute in Bong County. An unprecedented annual production of 45 tons was achieved in 1989, just before the civil crisis. However, currently the Liberia aquaculture sector is miniscule, despite a suitable natural environment, which Liberia offers as a potential investment destination for aquaculture. This sub-component will finance the revamping of one of the government-run hatchery at Klay. Common goal of the hatchery is to address the challenges mentioned and contribute to enhancing fish production for the promotion of food security. The nature of the project investment on the hatchery will depend on the result of experts’ verifications on the feasibility of the project interventions. In addition, experts will provide further clarifications on how far the project could promote aquaculture for private sector investment for commercial scale activities or for pond culture for subsistence level food security.

3. Objective of the assignment

The Government of Liberia through NaFAA is soliciting the services of a qualified Consultant for a financial and economic feasibility of rehabilitation work at the Klay Hatchery Specifically, the Feasibility Analysis (FA) will provide the decision makers in the GoL, the World Bank Group and other partners with the necessary baseline and information to justify the proposed investment from an economic sustainability point of view, including the proposed financing and implementation modalities. To this end, the assessment is to determine economic and financial feasibility based on projections of financing, operating costs, revenues and profitability, as well as sensitivity analyses in relation to key internal and external parameters and constraints and the investment’s impacts on the economic objectives of the country. Financial feasibility will be informed by analyses of the economic, operational, environmental, and social aspects. This is basically establishing the business case, including assessing and determining whether the identified investment is likely to produce the anticipated benefits, in an economically viable and environmentally and socially acceptable manner.

4.0 Scope of Feasibility Analysis/Study

The consultant will undertake a financial and economic feasibility analysis/study of the proposed rehabilitation work at the Klay hatchery, including, operational, environmental, and social aspects. The studies will be conducted in close collaboration with the local stakeholders and take into consideration the previous works done at the hatchery by local and foreign expertise. The consultant will compile and review all relevant background information to the feasibility study and collect additional information, including holding meetings with stakeholders to the aquaculture sector (e.g. fish farmers,  retailers, processors, hatchery  operators, Government authorities and research institutions) to obtain their input.

The scope of the proposed consultancy will include the following tasks:

  • Assess aquaculture production from available data, and estimate production values likely to sustain economic viability of the hatchery, in view of the added investment in infrastructure and equipment under the project.
  1. Collect, analyze, describe and up-to-date the socio-economic information available to justify project rationale, geographic location and target project beneficiaries;
  • Evaluate the markets and revenues where these fish and feed produced at the hatchery may best be targeted.
  • Assess the types of fish needed for farming, investment costs, potential profitability and financial returns.
  • Assess the needs of the hatchery including the proposals for a fish health laboratory, provision of a fish feed mill, and indoor hatchery facility and rearing tanks.
  • Estimate operating costs and potential revenues from the hatchery.
  • Assess the skills gaps within Liberia to operate the hatchery.
  • Carry out initial consultations with key project stakeholder and beneficiaries of proposed investments. Provide record of stakeholder consultations;

5.0 Methodology

In order to carry out the above tasks, the Consultant will apply methodologies that incorporate the following so as to meet the objective of this consultancy:

  • Economic and Financial Feasibility Assessment

In accordance with guidelines acceptable to the client as well as good international industry practices (GIIP), the consultant will carry out an economic and financial assessment for the proposed investments to be supported by the project at the Klay Hatchery. The Consultant will do so by using economic and financial valuation methods that can best demonstrate all expected consequences in costs and positive effects between the interventions and project beneficiaries within a time horizon which is long enough to justify the project interventions and derive development impacts. The Consultant will create a baseline scenario that allows to compare with “project investments” scenarios. including:

  • Identification of all assets to be financed by NaFAA, including all initial costs (infrastructure, equipment, marketing) required to commence operation (i.e. total estimated project cost)
  • Development of fully-allocated operating models (including employment) according to the proposed operational plan for the Klay facility and alternative operational options)
  • Construction of a financial model for the proposed rehabilitation and operation that enables forecasting of cash flow, revenue and profitability requirements against current and incremental operating costs, debt repayments and dividends over a period of at least 10-years. The model should provide for cost overruns and other contingencies, and
  • Application of the financial model for sensitivity analyses with respect to key operating and financial parameters, including volumes of fish harvested, fish prices on domestic and export markets, labour and utility costs, and variation in sales volumes, for which the following parameters will be finalized:
  • Net Present Value (NPV) considering a 15% discount rate;
  • Benefit-Cost Ratio (BCR) considering a 15% discount rate; and
  • Internal Rate of Return (IRR).

B. Institutional and management feasibility assessment

a. Assess the capacity and capacity building needs at NaFAA for the operations, management and maintenance of the proposed infrastructure.

b.  Assess institutional capacity for gender awareness in aquaculture and hatchery management. Identify gender gaps and recommend relevant measures for filling the gaps including gender integration and capacity building, and suggest optimum levels of female participation and staffing in the operations, management and maintenance of the proposed infrastructure.

c.  Develop an outline of the capacity building plan for NaFAA with a timeline that meets the management and operational needs of the hatchery.

C. Environmental and Social Assessment

The Consultant will carry out an initial/preliminary assessment for environmental and social risks/impacts of the rehabilitation and operation of the hatchery. This will constitute a review of initial processes of planning and selection of project sites, considering the proposed locations and interventions recommended from previous reports. Through physical, biological and socio-economic assessments of the project location, and consultations with project communities, the Consultant will determine the features of the sites and factors that can influence their selection and the ensuing positive or negative characteristics as a result of the project. The Consultant should be familiar with environmental and social conditions, norms, and national regulations, and effective land/coastal use in the zone identified for the project investment. The outcome of the environmental and social assessments will allow to determine early on, if project interventions are feasible or not, if they will require modifications or adjustments to be carried out on the project design. The consultant will recommend the extent of ESIA to be carried out for the infrastructure investments in order to meet the EPA’s requirements for upfront detailed/in-depth impact assessment prior to project activity approvals. The consultant will prepare an environmental and social management plan for the project site.

D. Technical Feasibility Assessment

  • Technical feasibility assessment for the proposed infrastructure investments, including long-term sustainability of operation and maintenance, and possible cost recovery provisions. This includes the technical feasibility for rehabilitation of the hatchery for fingerling and fish production, and establishing of a fish feed mill as well as the detailed assessment of the technical, architectural and design feasibility of all infrastructure investments planned for the hatchery site.
  • Assess gender needs, roles, and dynamics with attention to constraints, risks, and opportunities for women, youth and the disable. Identify sectors where action should be taken and recommend activities to enhance inclusive economic participation of gender in decision-making in the operations and management of the proposed facility.

6.0 Project Area

The feasibility study will cover the Klay Hatchery community, fish farmers, markets and institutions in Bomi, Cape Mount, Montserrado and Margibi Counties.

7.0 Qualification Requirements and Composition of Study Team

The minimum requirements for the consultant are (i) extensive and proven experience in conducting financial and economic feasibility studies for establishing aquaculture or agriculture nursery and production infrastructures, especially in developing countries; (ii) It is preferred that the consultant has a recent and solid experience in preparing feasibility studies, and must have successfully implemented at least 3 similar projects in the past 7 years.

The consultant is expected to have substantial experience (no less than 10 years) and adequate educational background (Master’s degree and higher) in finance, economics, management or related relevant areas of specialization.

The consultant is expected to have the following:

  • Strong analytical and report writing skills
  • Strong communication and facilitation skills
  • High computer literacy, and
  • Full proficiency in English

8. Deliverables, Schedule of Deliverables

I. Deliverables.

The Consultant will produce the following deliverables (described further below):

  1. Inception Report for Feasibility Assessment;
  2. Draft Feasibility Assessment Report;
  3. Final Feasibility Assessment Report
  4. Environmental and Social Management Plan (ESMP)

The preparation and delivery of the above documents will be organized as outlined in Annex 1, and presented in three steps, as follows:

  1. Inception Report submitted within two (2) weeks of contract signing: The Consultant will submit an Inception Report detailing the methodological approach for the entire assignment covering all items under” Scope of Services” and “Methodology” as outlined in this Terms of Reference. The Inception Report will inter alia describe the method of data collection including field work plan, verification, field work with project stakeholders and beneficiaries, and analysis. The Inception Report will provide a list of the available/collected information and timeline to fill in the gaps. This Inception Report will be subject to review and comment by NaFAA. The Consultant will revise the inception report based on those comments. The final Inception Report will be submitted to the NaFAA after incorporation of comments.
  2. Draft Feasibility Assessment (FA) Report submitted 6 weeks after contract signing: The Consultant will prepare a Draft FA Report covering all tasks under the assignment with specific recommendations on the feasibility of project interventions. It will be accompanied by a draft executive summary. After submission of the draft reports, a presentation shall be disseminated to the Client for obtaining feedback. The Client’s comments on the draft final report will be incorporated in the final report.
  3. The consultant will prepare and submit a separate ESMP within 8 weeks of contract signing.
  4. Final Feasibility Assessment Report submitted 12 weeks after contract signing: This deliverable should include all the comments suggested by the client and other relevant stakeholders. It will include all relevant data in a tabulated format used by the Consultant for the baseline, raw and processed data, toolkits and questionnaires used for the social-economic assessment, and other supplemental information that will constitute the project file. The Report will be prepared in the English language following the format outlined in annex 1.

The total duration of the consultancy services will be 12 weeks from the date of contract signing.

9. Institutional Arrangements

NaFAA is the implementing agency of the project, hence the Consultant will work under the direct supervision of the Director of Aquaculture and Inland Fisheries in consultation with the Office of the Director General. NaFAA will assist the consultant as required, particularly with regard to aquaculture data and information on the key stakeholders in the study area.

The Department of Aquaculture and Inland Fisheries will support the Consultant to ensure the objectives of the assignment, as detailed in the ToR, are achieved within the agreed time schedule, and that the contents of the report are acceptable to the client; He will support the execution of the feasibility assessment and will monitor progress according to the objectives set in the ToR.

The Director of Aquaculture will facilitate meetings between the consultant and NaFAA professional staffs to discuss technical issues. Any unresolved issues, either technical or otherwise, will be taken up with NaFAA’s top Management as required.

Payments against approved deliverables will be authorized by NaFAA, through the Office of the Director General.  NaFAA designated counterparts will make all possible efforts to make available the following data, services and facilities to the Consultant as per the existing rules at NaFAA:

  • All available aquaculture and inland fisheries data and records for the sector;
  • Available reports and study related documents;
  • Any other services, available with NaFAA to help the consultant carry out the data collection and analysis as per the ToR.

10. Consultant Responsibilities

Data, personnel, facilities and services will be provided by the Consultant as detailed in this ToR. The Consultant will be responsible for the effective delivery of the services as stipulated in the scope of works and ToR. The Consultant will carry out the services in the best interest of the Client, the GoL represented by NaFAA, with reasonable care, skills and diligence in line with sound professional, administrative and financial practices. Field surveys and field data collection will be carried out in coordination with the Departments of Aquaculture and Inland Fisheries, and Research and Statistics. The Consultant will be responsible to the client for the execution of the contract according to the terms and conditions spelled out therein. Consultant will organize presentations and dissemination events to enable the monitoring of progress and study results by the relevant NaFAA personnel.

11.0 Payment Schedule

Payment will be made according to the following schedule:

  • 5% after signing the Contract
  • 25% after submitting the Inception report

      (ii)       40% after submitting the draft feasibility report

  • 30% after submitting the final report

All the payments will be made only after acceptance of the reports and deliverables by the Client.

12.0 Selection method:  Consultant Qualification Selection (CQS)

13. Submission Deadline and Mode:

The proposal subject line should clearly read, “EOI: Financial and Economic Feasibility for Rehabilitation of the Klay Fish Hatchery at Klay, Bomi County, Liberia

The proposal should be addressed to: Zizi A. S. Kpadeh, Director of Aquaculture & Inland Fisheries, National Fisheries & Aquaculture Authority, Republic of Liberia

Interested firms may choose to submit their proposals in hard copies or electronically to the following email: This email address is being protected from spambots. You need JavaScript enabled to view it.; This email address is being protected from spambots. You need JavaScript enabled to view it. and This email address is being protected from spambots. You need JavaScript enabled to view it.  

The deadline for submission of the proposal is: 17 March 2021 at/or before 15:00 hours.



ANNEX 1: Feasibility Assessment Report Outline

The Feasibility Assessment Report will include at a minimum the following elements:

  1. Summary
  2. Sector background
    1. Policy, legal and administrative framework
    2. Socio-economic status of the hatchery and farming communities in project area
  3. Project design description
  4. Methodology
  5. Description of data used for the assessment and data validation
  6. Results of the assessment
    1. Financial and Socio-Economic Feasibility
    2. Institutional and Management Feasibility
    3. Environmental and Social Assessment ( including a separate ESMP)
    4. Technical feasibility
  7. Recommendations
    1. Project implementation arrangements and flow of funds
    2. Risks Assessment
    3. Project coverage and selection of targeted locations and international markets for ensuring maximum returns, and criteria used for selection;
    4. Any further actions needed to secure project financing and implementation, such as tender documents for consultancy services;
    5. Sustainability of project results;
    6. Monitoring and Evaluation of Project results;
  8. Summary of results of public consultations
  9. Conclusions
  10. Annexes
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