Seascape Financing feasibility assessment for Inhambane Seascape (Mozambique)

Posted on 25 October 2024

Terms of Reference

Title                     :  Seascape Financing feasibility assessment for Inhambane Seascape (Mozambique)
Department      : Conservation
Project                 :  MG 205000
Supervisor       : SWIO Blue Finance Lead
Type of contract : Consultancy (international)
Date                      : November 2024 – January 2025

Context

The South West Indian Ocean (SWIO) region encompasses around 12,000 km of coastline across the countries of Kenya, Madagascar, Mozambique, South Africa and Tanzania. This area contains the world’s second richest marine biodiversity hotspot, hosting large coral reefs, extensive mangrove forests and important breeding grounds for various fish species. It also supports a fast-growing blue economy which, with an economic output of around US$20.8 billion, is a fundamental component of the livelihoods of around 60 million people.
To enhance impact and improve overall coordination, WWF is applying a seascape approach in the 05 SWIO countries.  A seascape approach recognizes the strong interdependence of ecological, social, economic and institutional perspectives. It aims to cultivate a sense of shared commitment across seascape actors (government, communities and private sector) and a vehicle for attracting finance at scale.
●      From an ecological perspective: marine and coastal ecosystems are highly connected and as such; to be effective, management is required at a scale matching that of the ecosystems within them. Taking an ecosystem-based management approach within a seascape ensures that the carrying capacity of that region is not exceeded and that the cumulative demands are understood and sustainably managed.
●      From a social perspective: coastal communities rely upon a range of stacked services provided by interconnected ecosystems within a seascape (ecosystems services) and the associated marine resources (goods) for their livelihoods, food supply and wellbeing. Coral reefs and mangroves further provide a buffering effect protecting communities and infrastructure from tropical storms, tidal surges etc.
●      From a gender perspective: women and men have different knowledge, capabilities, and needs related to the use and management of coastal ecosystems and marine resources. The seascape approach recognizes the gender-differentiated roles (in managing and using ecosystem goods and services) and barriers (to resource governance, policy, financing) and calls for inclusive and sustainable approaches that explicitly consider gender and inclusivity in decision-making and equitable benefit sharing.

From an economic and finance perspective: developing strong governance and business planning across a seascape creates an investment scale (potential ticket size) that enables larger-scale finance to flow. This approach strongly follows a blue entrepreneurship and value chain development approach to transform the livelihoods of coastal communities and sectors, particularly women, in a manner that is fully environmentally sustainable and preserves coral reefs and blue forest ecosystems. The approach also supports entrepreneurs to identify risks, barriers and sustainable growth opportunities in their business models.

WWF is advocating for a transition toward a more sustainable blue economy which requires securing funding to implement these activities. However, this can be extremely challenging, particularly for remote communities. Some grant funding is available, but this tends to be limited in supply, short-term, and highly competitive to secure. In order to overcome these challenges, novel financial instruments are being explored including a Seascape financing approach. This approach aims to strategically coordinate funding and management across a portfolio of aggregated natural capital assets and enterprises to deliver a range of diverse income streams and social and environmental benefits across a seascape.
The seascape financing approach is among the very first step for the establishment of the SWIO venture Builder which is an inclusive, multi-sectoral and multi-stakeholder initiative designed to support MSMEs from inception to investment-readiness. It is meant to bridge the development gap that exists between the philanthropy-driven development of community MSMEs and the incubation of investment-ready businesses that will go on to deliver a sustainable income for communities and returns for financiers.
In 2023, WWF supported by one of its partners conducted a study to test the feasibility of developing a seascape financing approach for a seascape in Madagascar. This involved exploring revenue generating opportunities, governance structures and building an understanding of the local operating environment, supported by a field visit to the concerned seascape. WWF team seeks to replicate this assessment in Inhambane Seascape, Mozambique.
The Inhambane seascape includes the Bazaruto Archipelago National Park and Wild Sanctuary of Vilankulo Shrine, in districts of Vilankulos, Inhassoro and Govuro. This region is renowned for its rich biodiversity and ecosystems such as coral reefs, seagrass beds and mangrove forests. It is also a critical area for nesting, breeding and feeding areas for marine turtles, the last viable population of dugongs, a species listed as vulnerable by IUCN, in Mozambique and in East Africa, and breeding and feeding areas for a number of marine mammals (e.g. whales and dolphins) and other marine megafauna (e.g. marine turtle, sharks and rays). Due to its high ecological importance the Bazaruto Archipelago has been recognized as an Important Marine Mammal Area (IMMA) and a Key Biodiversity Area (KBA), highlighting its critical role in marine conservation on a global scale. Most communities in Inhambane seascape rely on fisheries and small-scale agriculture for their livelihoods. However, tourism is also an important livelihood, as Inhambane is Mozambique’s best tourism destination, attracting national, regional and international visitors. The area's stunning natural beauty and biodiversity make it a key spot for ecotourism, which contributes significantly to the local economy.

Objective of the study

The primary objective of the study is to explore the feasibility for the implementation of a seascape financing approach in the Inhambane seascape (Mozambique), a potential local mechanism that increase financing in biodiversity conservation as well as sustainable livelihoods for coastal communities. As such this process will also contribute toward the implementation of the SWIO Seascape Venture Builder:

Key activities

The assignment consists of two main activities: a) undertake a revenue stream assessment potential for sustainable livelihoods and enterprises in the seascape in order to understand financial viability and potential for scaling and b) conduct feasibility testing of the seascape approach to financing, an innovative financial mechanism that aggregate these revenues to refinance livelihoods and biodiversity conservation.
Table 1: Summary of key activities expected under this consultancy

Key Activity	Description of activity	Deliverable	Deadline
1- Inception meeting	Consultant will present detailed methodology and workplan to WWF team, and agree with the deliverables and related deadlines	1. Inception report	December 2nd, 2024
2- Revenue stream assessment	Mapping of key stakeholders (and ongoing engagement and consultation with key stakeholder during the project)	2. Assessment of priority revenue generating opportunities	December 20th, 2024
	In-country visit to gather data, consult with relevant stakeholders etc. (travel costs excluded)
	Identification of the most promising revenue streams
	Assessment of business models including costs revenue projections, commercial maturity and impact
	Needs assessment to develop portfolio incl. financial and non-financial needs
3- Seascape Approach Feasibility Testing	Assessment of aggregation financing models incl. high level governance, operational and legal structure(s)	3. Feasibility report	January 31st, 2025
	In-country visit and workshop to gather information and discuss findings with regional stakeholders (travel costs excluded)
	Drafting of seascape feasibility report detailing findings and key next steps required for potential implementation

WWF Technical Supervisor will have ten (10) days to validate each deliverable. In the event of late submission of reports/products, WWF reserves the right to deduct 1‰ per day of delay from the total due fees.

Eligibility and qualification of the consultant

Individual, team of consultants, or firm, with demonstrable experience and expertise in this type of research especially in the field of Community enterprises assessment and designing financing mechanism. In addition, the consultants should have previous experience and expertise in the followings:

Community livelihoods development and or incubation.
Conservation finance and blue blended finance design and implementation.
Have previously conducted similar works in one or more countries in the South West Indian Ocean (SWIO).

Have experience in proposal development and fundraising related to blue economy finance and ocean conservation.

Relationship management and project governance

The project will be managed by WWF Madagascar represented by the SWIO seascape Blue Finance Lead. The consultant will be expected to liaise regularly with the project manager and especially with the WWF Mozambique Inhambane team for coordination, data collection and stakeholders’ engagement as needed.

Application

Those interested are required to submit the following by email to procurement@wwf.mg with the reference “AO-029/TNR/2024 Seascape Financing feasibility assessment for Inhambane Seascape (Mozambique) – MG2050.00” in subject line delivered not later than 11 November 2024 at 17.00 pm EAT time with:
-       A technical offer including:
o   Description of the project plan that would be applied to delivering these requirements.
o   A short overview of the organisation and his/her overall skill base.
o   Structure of the proposed team including resume, description of roles and qualifications. Template for the resume is available on the link https://bit.ly/2H2M8Ed  (or request to be sent to procurement@wwf.mg)
o   And other relevant information if appropriate.

-       A financial offer in USD. The budget should give details of consultancy days by category as well as daily rates, along with management secretariat costs (if appropriate). Daily rates and expenditures should be shown separately. The offer should also show tax-exempt and taxable costs. Where costs are tax-exempt, explanations should be provided.

WWF will directly pay for all expenses related to travels, so those expenses should not appear in the consultant offer. The rate of Per diem and Accommodation should not exceed WWF’s rate and the airfare is based on Economic class.

Evaluation of Applications

An evaluation committee will review and rank the received offers.  The evaluation of the technical proposal being completed prior to any price proposal being opened and compared.

Applications will be evaluated as follows:
-                Understanding and technical soundness and merit of methodology to execute the assignment (40 points);
-                Organizational capacity and expertise to execute the assignment (25 points);
-                Past experience and performance relevant to the assignment (25 points);
-                Timetable (10 points)

The adjudication returns to the technical best offer (among those higher than or equal to 70/100) whose financial offer does not exceed the budget available. The possibility of negotiation is not excluded in conditions that the technical best offer makes a financial offer exceeding available budget.

Notes on canceling the current tender

The current offer may be canceled under the following conditions:

Competitiveness is not adequate;
No offers meet the requirements ;

· Received offers significantly overreach the proposed budget.

Conditions of the tender

The proposed work will be carried out under contract attached as an annex to the present TORs. The contact will be drawn up after the offer has been confirmed. The consultant will assume all fiscal responsibilities relative to his/her tax status. As an independent employee, the consultant is responsible for the payment of any tax that might be demanded within the framework of this agreement, assuming that he is able to justify he is in good standing and up to date vis-à-vis administrative and tax authorities; otherwise, and in accordance with the law, WWF is obliged to withhold at source on the amount of its services or fees / bills, the percentage to be paid to the taxes authorities. For the particular case of non-resident consultants, the consultant is subject to the payment of the Tax on Income from Non-Resident (under Article 01.01.14.'s Tax Code CGI) up to 10% (or 5 % if based in Mauritius). A remark on this tax should appear in the financial offer.

Payment of fees

Payments will be made in three installments as follows:

-       25% on successful delivery of Deliverable 1.
-       50% on successful delivery of Deliverable 2.
-       25% on successful delivery of Deliverable 3.

The invoice must contain the following information: name and address of the consultant, invoice date, unique invoice number, amount of fees free of charges, amount of taxes, service rendered, deliverable and/or number of hours charged, period in which service was provided, bank details.

WWF cannot grant in advance honorary fees. Though, field trip expenses, in accordance with WWF procedures, are payable in advance once the consultancy contract established.

Fraud, corruption and conflict of interest declaration

Candidates have read entirely the WWF Policy for interests and the WWF Policy Conflicts for Prevention and the Survey of Fraud and Corruption. He understands his responsibilities to comply, and fully commit to it. He acknowledges he has no conflicts, as described in the WWF's Policy on Conflicts of Interest: https://bit.ly/2H2M8Ed

Ethics

Candidates must respect the professional rules of conduct without any reproach in the conduct of its mandate. Furthermore, the contractor will ensure not to tarnish the image of the WWF execution of its mandate. WWF gives the right to terminate the agreement in proven cases of misconduct that can harm the WWF.