Consultancy on Innovative financing for anticipatory action – RFP-RO01-002191 Consultancy

Request for Proposal No. RFP-RO01-002191

Terms of Reference (TOR) for Consultancy on Innovative financing for anticipatory action

Who is the Danish Refugee Council

Founded in 1956, the Danish Refugee Council (DRC) is a leading international NGO and one of the few with a specific expertise in forced displacement. Active in 40 countries with 9,000 employees and supported by 7,500 volunteers, DRC protects, advocates, and builds sustainable futures for refugees and other displacement affected people and communities. DRC works during displacement at all stages: In the acute crisis, in displacement, when settling and integrating in a new place, or upon return. DRC provides protection and life-saving humanitarian assistance; supports displaced persons in becoming self-reliant and included into hosting societies; and works with civil society and responsible authorities to promote protection of rights and peaceful coexistence.

Purpose of the consultancy

The Danish Refugee Council seeks proposals from a consultant(s) to explore alternative financing approaches to sustainably financing anticipatory action, focusing specifically on a project in Somalia currently being implemented.

Background

Anticipatory action is gaining traction as an effective and much needed way to support communities and help them be prepared against climate shocks and stresses. However, effective financing of anticipatory action is an ongoing challenge and often hampers further roll out of anticipatory action mechanisms to support people of concern.

DRC is piloting an anticipatory action approach to support drought-affected communities in Somalia, testing a predictive model that looks at potential displacement caused by drought events and triggering anticipatory actions to support communities before displacement occurs. While the project is using some project funds to finance actions for the pilot, there is an awareness of the lack of finance available in the anticipatory action ecosystem to support larger scale interventions. DRCs Somalia pilot forms part of an anticipatory action toolbox that is being developed, and a key gap is to understand effective approaches and options to financing anticipatory action beyond donor pilot grant funding.

As such, DRC would like to engage a consultant to explore alternative financing modalities that could be used to support the financing of anticipatory action as a pathway to further roll out of anticipatory action mechanisms among communities impacted by drought and climate change events. An area we would like to focus on would be to highlight the cost-effectiveness of anticipatory action versus emergency response and would like to use the pilot in Somalia to develop a business case for anticipatory action that highlights the cost effectiveness of the approach with the aim of this opening up alternative pathways for funding.

Objective of the consultancy

DRC is currently implementing the anticipatory action pilot in Somalia and so would like to use the pilot as a case study for this consultancy while allowing for wider exploration of ideas and approaches beyond the limits of the project in its current form. As such, we would like to engage a consultant to:

• Gather insights and data during the anticipatory action pilot that can be used to build a business case for the cost-effectiveness of anticipatory action versus emergency response
• Develop a business case from findings that clearly highlights the cost-effectiveness of anticipatory action
• Explore macro-level finance mechanisms, identifying potential financing modalities that could be relevant for anticipatory action, using the business case of cost-effectiveness developed through the case study as a starting point to look at mechanisms such as impact bonds
• Explore micro-level finance options that could be relevant for anticipatory action, including community-level co-funding, crowdfunding and connections to savings groups to assess whether and how anticipatory action can be financed in a more effective way at the community level

Scope of work and Methodology

DRC is looking to contract the services of an individual or consultancy team with relevant experience and qualifications for an assessment of innovative financing of anticipatory action. The consultancy is expected to include:

• Desk research of potential innovative finance mechanisms that could be relevant for anticipatory action, both at micro and macro levels
• Engagement with the DRC Somalia team in the gathering of relevant data to build a business case for the effectiveness of anticipatory action versus emergency response
• Development of finance ideas with the DRC innovative finance team that could finance anticipatory action in a more effective way
• Development of a report that details the business case for anticipatory action and the potential financing mechanisms that could be used to support further roll out of innovative finance

The Consultant will be required to prepare a detailed methodology and work plan indicating how

the objectives of the project will be achieved, and the support required from DRC.

Deliverables

The Consultant will submit the following deliverables as mentioned below:

The consultant(s) are expected to deliver the following:

• An assessment report (30 pages max) covering as a minimum the following:
  • A short overview of existing approaches to financing anticipatory action
  • A detailed section focused on findings from data and insights gathered from the anticipatory action pilot in Somalia, including the development of a business case that highlights the cost-effectiveness of anticipatory action
  • A section that explores potential financing mechanisms based on the business case at a macro level
  • A section that explores micro and community level financing mechanisms and their place within the financing infrastructure
  • A roadmap to how DRC could use innovative financing in anticipatory action to support further scale up of AA mechanisms

The consultant(s) is expected to provide i) a report design overview, ii) a draft report for comments and input, and based on this, iii) a final report with professional lay-out taking into account the comments and input provided by DRC.

Duration, timeline, and payment

The consultancy is expected to last 1-2 months, with final report to be provided within 30 days of finalisation of data gathering

The consultant shall be prepared to complete the assignment no later than July 2023.

Eligibility, qualification, and experience required

The successful candidate(s) must be able to work independently to deliver the required outputs working with a variety of internal and external stakeholders. Qualifications will include:

• Minimum 3 years of experience in exploring innovative finance mechanisms in development or humanitarian settings
• Relevant background in development of business cases based on data gathered
• Preferable experience in east Africa with an understanding of anticipatory action and humanitarian response in drought settings
• Proven track record in conducting similar studies and assessments
• Ability to structure complex insights into written and visual products that bring out key features and enable decision making

Technical supervision

The selected consultant will work under the supervision of:

• Alistair Cowan, EAGL Programme Innovation Coordinator
• David Browning, Somalia Head of Programmes

Location and support

The Consultant will provide her/his own computer, mobile telephone and any other applicable equipment.

Travel

The assignment will be largely conducted remotely, however travel to Somalia can be organised if required for the assignment. Travel facilitation can be organised through DRC but MUST be budgeted for within the consultancy budget.

Submission process

Interested bidders must submit as a minimum:

• Document 1: Updated CV(s) of consultant or consultant team – if bidding as a company, a company profile should also be included
• Document 2: A brief document (3 pages max) outlining a basic strategy and technical approach to the TOR, team composition and timeline, clearly indicating the level of effort required
• Document 3: A brief document (3 pages max) showing portfolio of previous relevant assignments or work. Where possible, this should include links to published work and/or references from the organizations that contracted the work. Include sample reports and 3 contracts on previous similar assignment.
• Document 4: A separate financing proposal in USD with a breakdown of budget covering consultancy fees and all related expenses to implement the activities of the consultancy, including travel and transportation, accommodation and all logistical requirements.

Evaluation of bids

All bidders will be scored on a scale from 1 – 10 for each of the below criteria and will be assessed for profile and qualifications (document 1), technical approach (document 2), and similar experience (document 3).

DRC will conduct reference checks from at least 2 previous works as an additional mandatory requirement.

Please find complete bidding documents in the following link: RFP-RO01-002191 – Consultancy on Innovative financing for anticipatory action

Tagged as: Danish Refugee Council, Somalia