Consultant for the Conduct of Commercial Review of Potential Routes to Market for the Seaweeds Production Project
DETAILS

Contractor: Kabang Kalikasan ng Pilipinas Foundation,Inc. 
Activity: Conducting High-level commercial review of potential routes to market of Amogues Fisherfolk Association in Sitio Amogues, Barangay Calawag, Taytay, Palawan 
Project Location: Taytay, Palawan, Philippines

BACKGROUND

The Philippines is in the Coral Triangle, home of the most diverse coral reefs in the world. Considering that the entire country sits within the Triangle, the province of Palawan is considered an ecological hotspot. The island’s coral reefs and mangrove forests comprise 42% and 36% respectively of the Philippine total. Its fisheries generate twice the yield of land-based agriculture at Php1.2B (USD27 million) a year. Among 81 provinces in the Philippines, Palawan is the highest producer of national fishery overall at 551,641 MT or 12% of the total fishery with a production value twice that of the next province in rank. It has high rankings in various categories and sectors. For example, in 2019, it was one of the top 10 richest provinces in the country per CEO bWorld, it has the biggest fishing area and the biggest Marine Protected Area, #1 in annual average fishery production, #1 in annual average aquaculture production, #1 in seaweed production, biggest offshore natural gas reserve, among others. However, per the National Competitiveness Council of the Philippines (NCCP), Palawan ranked 72nd out of 76 provinces in 2019 in terms of overall competitiveness comprising economic dynamism, infrastructure and government efficiency and resiliency. Despite its richness in natural resources, it is the 12th poorest province, an irony for its almost 800,000 inhabitants.

WWF has been working in Palawan since 1991, providing technical assistance in establishing several protected areas, most notably the Tubbataha Reefs, a world-renowned dive site, a UNESCO World Heritage Site (WHS), and touted as the best-managed Marine Protected Area (MPA) in the country. What began with a USD2,000 research grant for the Live Reef Fish Food Trade (LRFFT) paved the way for a USD3 million program under the Coral Triangle Initiative on Coral Reefs, Fisheries and Food Security (CTI-CFF). This program, however, ended in 2013 and WWF Philippines continues to build on its successes and pursue its work on MPAs and fisheries.

To further institutionalize the management of coastal and fishery management, another initiative entitled “Marine Protected Areas for Improved Fisheries in Palawan, Philippines implemented between May 2016 to June 2019. The long-term goal of the project is to secure livelihoods and food security in Palawan, Philippines through an effectively managed network of Marine Protected Areas (MPAs) that supports the Reef Food Fish (RFF) industry. Also, the Conservation of Marine Protected Area Network was implemented between June 2020 to August 2023, covering the Northeastern Cluster 5 MPAs. It holds that the Northeast Palawan MPA Network habitats are protected while supporting people's livelihoods and food security. The project also aims at contributing to two ACAIs of the Oceans Practice on: 1. Resilient Coastal Habitats- by setting up an enforcement mechanism in the MPA Network within one million hectares of co-managed marine area; 2. Working with Coastal Communities to Secure their Ocean Futures through effective local MPA management of spawning sites. 

Sustainable Seaweed Project

In 2023, WWF-Philippines was selected by the Nature-based Solutions Accelerator, an initiative of WWF-UK, WRI and HSBC, to lead a project on sustainable seaweed production in the marine protected areas of Taytay, Palawan. The project is geared towards achieving environmentally sound ecosystems, attaining food security, and improving the economic conditions of coastal communities. Its aim is to be a viable nature-based solution that does not only provide conservation efforts but also boosts the seaweed farms towards investment readiness with a primary focus on the establishment of a seaweed nursery and the formulation of a feasibility and business plan for raw dried seaweeds which in the long run will attract investors and generate higher income. 

This project will be implemented to the existing NEP-MPAN project which is piloted in the municipality of Taytay, Palawan and the primary beneficiary of this project is the Amogues Fisherfolk Association, existing and established People’s Organization (PO). This is also a great opportunity for the municipality of Taytay, as it is seen to be a viable nature-based solution that does not only provide conservation efforts, but also as an enterprise that can attract investors and generate income for the seaweed farmers.

The project is aligned with the national seaweed roadmap of the Philippines. Expected outcome includes improved planning for seaweed production resulting in an increase in seaweed production by 2% growth annually for 5 consecutive years (2022-2026), a decrease in poverty incidence of coastal communities, and zero net loss in marine habitats.

High-level commercial review of potential contractual routes to market 

WWF-Philippines is seeking consultant to conduct High level commercial review of potential contractual routes to market to provide technical expertise and insight for this project. There is a need to understand legal compliance for the commercial project organization, Exploratory meetings with private and financial institutions and development of Sustainability Plan for the Amogues Fisherfolk Association. The scope of work below lays out the specific tasks the consultant would be required to complete.

SCOPE OF WORK

High-level commercial review of potential contractual routes to market of Amogues Fisherfolk Association. The consultant should be familiar with the ThreeSevens reports and environmental baseline assessment reports (final or draft) commissioned by the project where feasible before the proposal is made or before this scope of work commences. 

Within the context of a time horizon of the next [5] years and developing a blueprint for a Scale-up and Sustainability Plan for the AFA and its members as a key output of this scope of work. 

  1. Define the Product and Market 
    1. Assess and model the production scale-up potential of the AFA seaweed farmers, the mix of seaweed species grown and product(s) produced, also in the context of possible changing market demand and industry buyers 
    2. Assess the role and changes required if relevant, of the nursery operation to support the envisaged production scale-up and the product mix, and if feasible assess and model the scale-up potential of nursery production, the mix of species grown, product(s) produced for sale to third parties outside of the AFA community 
  2. Conduct Market Study
    1. What seaweed market(s) are the AFA selling into now and how could these market(s) change in the future (what are the potential drivers of this change(s)) e.g. local v regional v national markets 
    2. How is market demand expected to change e.g. in terms of the seaweed species, quality, certification (e.g. for sustainability), new types of end customers
    3. Are there expected to be structural changes in the seaweed market in terms of buyers and processors, e.g. could processors integrate backwards to be closer to producers or producers aggregate and rely less on buyers 
    4. Nursery seedlings. A high level review of the market demand, the nature of that demand for seedlings and how it may change in the future 
  3. Identify potential contractual routes to market (RTM) and routes evaluation 
    1. Assess the current RTM(s), contractual arrangements and how they could be improved with higher selling prices being achieved for the AFA seaweed farmers
    2. Identify and assess existing alternative RTM(s), contractual arrangements for their potential attractiveness which are new to AFA seaweed farmers and changes that could be required at the AFA and or individual seaweed farmer level 
    3. What RTM ‘barriers’ generally exist to reduce the selling price to AFA seaweed farmers (besides quality) e.g. uncertainty as to timing and volume of production for sale, asymmetrical (lack) price information in the market, limited knowledge of the requirements of processors, and logistical challenges? How could these hurdles be overcome? 
  4. Scale-up and Sustainability Plan for AFA (the Plan)
    1. Synthesising the work undertaken for this scope of work, the output of other reports commissioned for this project and the knowledge and experience of the consultant 
    2. The Plan for the AFA, its members and the nursery should include the growth objectives for production, changing product mix, customers served and routes to market and a roadmap of the operational and organisational changes that will need to be made (e.g. there may be more communal activities such as solar powered drying, selling, quality control and nursery production) 
    3. An analysis of the risks associated with the Plan and potential mitigants 
    4. High-level financial analysis and modeling of the Plan activities demonstrating how the economic livelihoods of the AFA seaweed farmers will be improved compared to their current position and the financing needs (estimates of amounts) of the AFA and of the seaweed farmers to help deliver the growth objectives of the Plan 
  5. The project organization to deliver the Plan and compliance advice 
    1. This is assumed to be the AFA, but other entity structure(s) should be considered for the role of project delivery organization and an alternative recommended if considered appropriate; consideration should be given to whether the entity is a social enterprise or a profit-making entity
    2. Advice should be given as to the recommended legal entity status of the proposed project delivery organization and its compliance requirements for commercial, employment environment, fiscal, legal, regulatory matters; if the AFA is recommended as the project delivery organization changing its legal entity status should also be considered for the purposes of delivering the Plan and if so what change is recommended
    3. Advice should be provided as to the legal feasibility of a third party such as an equity investor providing capital (and therefore expecting a return of capital, dividends in the future) or a donor (returnable) grant providing funding) to the recommended project delivery organization
  6.  Stakeholder consultation and exploratory meetings 
    1. Identify relevant stakeholders and how they will be engaged 

DELIVERABLES

  1. A comprehensive report outlining the evaluation and recommendations concerning increased seaweed and seedling production, product mix and routes to market
  2. Detailed Scaling up and Sustainability Plan report (the Plan)
  3. Recommendation of the organization to deliver the Plan and a report on its compliance requirements for commercial, employment environment, fiscal, legal and regulatory matters, as well as equity capital raising and grant-receiving powers
  4. Presentation of findings, recommendations, and reports to relevant stakeholders for their consideration and their views documented
  5. Presentation of the draft and the final Plan, report findings recommendations to the project team
  6. All documentation, records review, photos will be included to the submission to WWF-Philippines

​Logistical Arrangements

KKP shall provide transportation, meals and accommodation for the Consultant Team during travel/field activity.

​Consultant credentials and expertise

The opportunity is open to consulting firms and organizations with available experts who have technical experience in nature-based solutions, seaweed market, production and business analysis, formulating business development plans for implementation, and stakeholder engagement. 

Minimum Eligibility Requirements: 

  1. Commercial Eligibility Requirements 
    1. SEC Registration or equivalent legal document 
    2. BIR Registration 
    3. Valid Business Permit 
    4. Overview of average annual revenue for the last three financial years (2020-2022)
    5. Average number of employees for the last three years (2020-2022) 
  2. Technical Eligibility Requirements 
    1. Competencies 
      1. Relevant experience in seaweed markets, production, supply chains, and sustainability
      2. Relevant experience in market analysis, business development plans and stakeholder consultations
      3. Good knowledge of business concepts and models for seaweed production
      4. Good knowledge of different legal entity types in particular for people organizations such as the AFA and cooperatives and their compliance  requirements 
      5. Research and analytical skills, including data gathering and analyzing information using both qualitative and quantitative methods.  
      6. Ability to establish rapport and work in multi-disciplinary and multi-cultural teams
      7. Excellent communication skills, including the ability to write in a clear and concise manner, and to communicate effectively
    2. Qualifications and Experience  
      1. Demonstrated previous experience in undertaking market assessments,  route to market planning
      2. Formulating business development plans for implementation, stakeholder  consultations and report writing
      3. Experience working with NGO clients
    3. Updated Company/Organization Profile with years of experience and description  of services offered 
    4. List of clients from various organizations 
    5. List of all on-going and completed contracts related to engagement 
      1. Name and location of project 
      2. Client organization 
      3. Type of consultancy services rendered, with date of engagement / contract 

HOW TO APPLY

Interested firms/organizations must submit their Letter of Expression of Interest and the minimum eligibility requirements to apply@wwf.org.ph with the following email subject: EOI and Eligibility Documents – High-level commercial review of potential contractual routes to market consultant