Detalles del proyecto

Visión general

Título del Proyecto

Freight Transport Market Analysis and Political Economy Analysis - Benin and Niger

Request for quotation
16 sep 2020
Clarification / Questions & Answers
9 oct 2020

Publicado

16 septiembre 2020

Fecha limite

21 octubre 2020

Presupuesto

 


Tipo de aprovisionamiento


Consultores individuales

Referencia

MCCZ209799

Agencia de Financiación

MCC - Millennium Challenge Corporation


Duración estimada

12 meses


Países

Benin, Níger, Estados Unidos de América

General Information
  • Contract Opportunity Type: Combined Synopsis/Solicitation (Original)
  • All Dates/Times are: (UTC-04:00) EASTERN STANDARD TIME, NEW YORK, USA
  • Original Date Offers Due: Oct 21, 2020 01:00 pm EDT
  • Inactive Policy: Manual
  • Original Inactive Date: Nov 21, 2020
  • Initiative: None
Classification
  • Original Set Aside:
  • Product Service Code: R410 - SUPPORT- PROFESSIONAL: PROGRAM EVALUATION/REVIEW/DEVELOPMENT
  • NAICS Code: 541690 - Other Scientific and Technical Consulting Services
  • Place of Performance:
Description

Benin & Niger Regional Integration Transport Program Background

MCC's potential Benin & Niger Regional Integration Transport Program involves rehabilitating portions of the existing transport corridor between Cotonou in Benin and Niamey in Niger, while addressing some of the institutional and market constraints that raise the financial and time costs of transporting goods along this corridor. This corridor is considered one of the most heavily traveled north-south corridors in West Africa, at up to 5,000 vehicles per day, with a high percentage of trucks. The Benin-Niger border crossing is perhaps the busiest crossing between any coastal and land-locked country in the region, with an average of approximately 1,000 vehicles per day.

Important market and institutional constraints along this corridor include uncompetitive and extractive freight allocation arrangements; inefficient trucking industries; dysfunctional border crossings and customs processing; weak maintenance regimes, especially in Benin; and weak application of regional axel load limit regulations. A concurrent regional program involving this transport corridor would therefore need to be accompanied, and perhaps preceded, by reforms to address one or more of these constraints. While fully understanding these issues will be time consuming and addressing them challenging, the pay-off to unlocking them could be quite high. 


Objectives of the Freight Transport Market Analysis and Political Economy Analysis for the Cotonou-Niamey Corridor

The objective of these analyses is to develop and refine an understanding of the causes or influences underlying the following obstacles to economic growth and poverty reduction through regional integration:

  • High freight prices
  • High and variable freight shipment duration
  • Rapid road deterioration

Both the competitiveness of Benin and Niger's exports and the purchasing power of their consumers are highly dependent on efficient importation of production inputs and consumer goods. High freight prices and inventory expenses raise the cost of these inputs and consumer goods, reducing returns on private investment and lowering consumer purchasing power. High shipment duration raises the working capital tied up in inventory in transit, while variable duration requires either uncertainty coping expenses (such as purchase and storage of excess inventory) or interruption of production activities dependent on inputs whose shipment is delayed. The third obstacle, rapid road deterioration, contributes to high freight transport costs (separate and distinct from high freight prices), while potentially diverting scarce government and donor funds from other critical investments. Related policy and institutional reform (PIR) issues along the portion of the corridor in Benin appear to have substantially shifted following the start of the Talon administration in April 2016, necessitating a current assessment of the magnitude and root causes of these obstacles that 

  • Assesses barriers to freight transport sector competitiveness and their impact on freight prices, as well as freight shipment duration and variability in duration.
  • Describes the key institutions (both formal and informal) and individual actors that structure activity in the freight transport and road maintenance sectors.
  • Recommends potential policy and institutional reform options to address the key obstacles identified above.
  • Identifies entry points for dialogue with key stakeholders on these potential reforms, as well as key challenges and risks associated with successful implementation within a 5-year project timeframe

Our central concern is the potential for transport market structures and political economy factors to undermine the objectives of the project, which may include reducing freight transport prices, freight transport duration and variability in duration, and road deterioration rates. MCC requires that the objective of each project satisfy the following conditions: (i) can be measured cost-effectively through an independent evaluation; (ii) is clearly specified, such that there is no ambiguity about what would be measured or how to interpret results (e.g. has a quantitative target that is derived from a documented baseline); (iii) is achievable within a reasonable period of time  usually no more than five years  following completion of the compact; (iv) is clearly linked to the benefit streams modeled in the cost-benefit analysis and summarized in the economic rate of return (ERR) estimate; and (v) based on available evidence and literature, can be directly attributed to the proposed set of investments to be funded via the project.


The three key sub-questions are:

1) How and to what extent does the freight transport market structure drive up freight prices and could continue to do so despite potential MCC investment in rehabilitating road infrastructure

2) What is the allocation of profit across the freight transport sector value chain actors, with particular attention to middlemen;

3) To what extent does the market structure create uncertainty (or, conversely, transparency) for transporters, and how does that uncertainty (or transparency) affect transporter decision-making?


Period of Performance

The overall anticipated period of performance of this contract is as follows:

Date of Award through 12 months thereafter (est. 12/18/2020  12/17/2021)

Note: While the intention is to complete this work within six (6) months, the period of performance for the contract will be set at 12 months from the date of award to account for potential fieldwork delays due to COVID-19.


Place of Performance

Work will take place at the Contractor's offices, with field work in Benin and Niger, and presentations at MCC headquarters in Washington DC or via video conference as necessary


Hyperlinks to Related Project Dossiers:


'https://beta.sam.gov/api/prod/opps/v3/opportunities/resources/files/518c0b9a285b4428b32e2bfb34d922b5/download?api_key=null&token=' RFQ No. 95332420Q0067 - Freight Transport Market Analysis and Political Economy Analysis - Benin and Niger


'https://beta.sam.gov/api/prod/opps/v3/opportunities/resources/files/41ed9881c71d4bee92758df1fb895974/download?api_key=null&token=' Attachment J.2. - Past Performance Questionnaire


'https://beta.sam.gov/api/prod/opps/v3/opportunities/resources/files/76fe80034625434d97a5e6ef9afbfe08/download?api_key=null&token=' Attachment J.1 – What is Political Economy Analysis and Why is it Important