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Annex VII-b
SPECIFIC TERMS OF REFERENCE
Supporting the EU Delegation in identification of Annual Action Program 2017 in
Regional and Agricultural/Rural Development and Local (self) Governance
FWC BENEFICIARIES 2013 - LOT 1: Rural development and food security
EuropeAid/132633/C/SER/multi
1. BACKGROUND
Azerbaijan has made rapid economic progress over the last decade and has become a middle
income country with GNI per capita of USD 7 590, and USD 16 910 at PPP, in 2014. The
economic growth has to a large extent been dependent on the hydrocarbon resources of
Azerbaijan. Besides income all other social indicators have improved over the past 10 years.
As a result of strong growth and targeted social assistance programs, the poverty rate dropped
from around 50% in 2000 to 5% in 2014 according to official statistics. However, the
economy remains insufficiently diversified and is heavily dependent on extraction and export
of oil resources (39% of GDP in 2014), as shown recently by the change in the country’s
macroeconomic outlook following the substantial drop in global oil prices witnessed since
end 2014. Moreover, disparities between the capital city (and its agglomeration) and other
regions are still evident. For instance, regional per capita income lags behind the capital by a
factor of more than 4, while the poverty level in the regions is 6% compared to the country’s
average of 5% (and about 2% in Baku). The rate of investment per capita in the central
agglomeration is 6.3 times higher than in the regions and the agricultural sector (which
employs 37% of the workforce) generates only 5.3% of the GDP (2014).
Economic diversification is an overriding government priority for Azerbaijan. The macroeconomic outlook has changed considerably over the past year with the Brent spot price
falling from its peak of USD 112 in mid-2014 to USD 43 in April 2016. In the light of this
new situation, the GoA's priority of non-oil sector growth has become even more pressing.
Government has started to take new and immediate measures to develop the non-oil sector.
Very recently the GoAZ published the policy document “Main directions of strategic road
map on national economy and major sectors of economy”, approved on the 16th of March
2016 and rural/agricultural development is one of the eight priority areas outlined in the
strategy paper. Economic diversification is also highlighted as a key area to ensure economic
resilience in the neighbourhood by the ENP review. The EU has traditionally supported
Azerbaijan in regional and rural development by allocating substantial cooperation funds to
support business enabling environment. Pilot Regional Development Project (PRDP) (AAP
2012) and the Rural Development Budget Support Programme (AAP 2011), as well as
Support to Regional and Rural Development Program (AAP 2013) and Integrated Regional
Development Program (2015) support multiple dimensions of the economic diversification
efforts of the Government and EU's future support in this area (AAP 2017) can build on and
complement the results achieved. The EU continues its support in this sector, as manifested
by the adoption of the Single Support Framework for cooperation with Azerbaijan in the
period 2014-2017 in which regional and rural development is indicated as one of three focal
sectors of the EU assistance to Azerbaijan.
The rural/regional development focal sector of the SSF 2014-2017 envisages supporting the
Government efforts in the diversification of the economy while promoting a balanced and
inclusive growth, decrease regional disparities and improve rural livelihoods. It aims at:
Objective 1: To contribute to business development, investment promotion and employment
generation across economic regions of Azerbaijan.
Objective 2: To enhance democratic participation, institutional capacity and efficiency in the
field of local governance and regional development
Objective 3: To raise rural livelihoods and quality of life in rural areas.
The two objectives (Objective 1 and 3) that are mainly related to regional and rural
development aims at achieving the following results that have been partially addressed
through different action programmes described above:
 Increased competitiveness of regions and their enterprises;
 Improved basic rural infrastructure and business services;
 Community mobilisation ensured through strengthened rural institutions and organizations,
such as producer organizations and cooperatives;
 Market-driven pilot initiatives using a value-chain approach for employment generation in
areas related to agriculture, agro-processing, handicraft and tourism implemented.
 Improved infrastructure and access to social services for the rural population;
 Improved environmental sustainability and land management of rural areas;
 Increased diversification of economic activity and employment opportunities.
The second objective of the focal sector which is about enhancing democratic participation,
institutional capacity and efficiency in the field of local governance and regional
development is the area of intervention that the Annual Action Program will also focus on.
While the government has put significant efforts and resources in improving the basic
infrastructure (roads, water, energy, waste management) in the regions, there has been less
focus on improving the overall local self-governance system, including streamlining interinstitutional relations and promoting a more participatory and democratic approach to local
development. This objective that aims at achieving the following results targets to address the
gaps in the sector:
 Policy, legislative and institutional framework for the local self-governance in Azerbaijan
is aligned to European Charter of Local-Self-Government;
 Institutional capacity at national and regional level to plan, implement and administer
programmes in the field of regional development and territorial planning strengthened;
 Participatory and democratic approach to local development enhanced by fostering
partnership, participation and bottom-up initiatives at local (and regional) level;
 Improved efficiency, transparency, accountability and quality of service delivery at the
local level.
The situation with the local governance in the country is quite challenging in many terms. The
processes of regulating the local self-governance system in Azerbaijan are aimed at
reinforcing the trend towards greater centralisation of the authority of Azerbaijan’s local
executive bodies, which are directly subordinated to the central government authorities,
instead of drawing up and implementing comprehensive decentralisation reforms. According
to Article 124 and Chapter IX of the Constitution, local government is carried out by both
local executive authorities and state bodies and municipalities. The Constitution does not
define local self-government and merely refers to it as being “carried out by municipalities”,
which are elected bodies (Art. 142(I) and (II)). In particular, it does not regulate local selfgovernment in Section 3 on State Power, which implies that municipalities are not included
among the public authorities exercising state power. It does not define municipalities as
institutions forming part of the overall public administration1.
The EU through local and international NGO's worked before with local municipalities under
the NSA/LA programme. These projects were always initiated by NGOs and local
municipalities have never been leading these projects. In addition, cooperation at central level
with the Ministry of Justice and the Presidential Administration with its representative local
ExCom offices was always limited. However, the role of Presidential Administration in
relation with ExCom and the role of Ministry of Justice in the development of municipalities
are crucial.
Based on the overall objectives within the SSF 2014-2017 framework document, the
constraints and opportunities described above, the government priorities and overall situation,
the team is proposed 1) to identify feasible/realistic areas of intervention under the Annual
Action Program focusing on development of the regional and rural/agricultural sector in the
country with certain intervention targeting at local (self) governance system that would build
on and complement to the already achieved results or ongoing activities by the EU, other
donors, and the government and 2) to develop the draft version of the Action Document
(identification part) with LogFrame.
2. DESCRIPTION OF THE ASSIGNMENT
Global objective
The overall objective for undertaking this assignment is to support the European Union
Delegation in the identification of a realistic and coherent EU-funded programme – Annual
Action Program 2017 focusing on regional/rural development, including through agricultural
development and enhancing democratic participation, institutional capacity and efficiency in
the field of local governance that is in line with the SSF objectives, aligned with government
needs, and complementary to EU and other donors' ongoing and planned activities2.
Specific objective(s)
The specific objective of the assignment is to support the EU Delegation in Azerbaijan in (i)
analysing the country's post-oil-crisis and post-devaluation policy vis a vis economic
diversification, particularly regional and rural/agricultural development, (ii) exploring the
current direct and indirect interventions of EU support and support of other donors, as well as
government priorities to economic diversification with particular focus on
regional/rural/agricultural development; (iii) providing advice to the Delegation on the basis
of current situation, the work already done or ongoing, the government's strategy, and the
international best practice in this field on possible and feasible intervention options; (iv) as a
1
Public Administration Reform at the Local and Regional Level in the Eastern Partnership Countries: Developments since 2012 in the Field
of Decentralisation, Study Report, 2015, KANTOR Management Consultants Consortium
2
Objective 1: To contribute to business development, investment promotion and employment generation across economic regions of
Azerbaijan; Objective 2: To enhance democratic participation, institutional capacity and efficiency in the field of local governance and
regional development; Objective 3: To raise rural livelihoods and quality of life in rural areas.
part of the wider intervention under the Annual Action Programme, to recommend different
options that may be available to EUD in Azerbaijan for supporting local (self) governance to
develop in general and to more actively engage in local development initiatives through
analysing current situation and the government's policy on local (self) governance ideally
integrated to the broader rural development agenda; (v) recommend different aid modalities,
and appropriate combinations of them that could be deployed to support the regional and
rural/agricultural development, including improvement and engagement of local authorities
under the Annual Action Program 2017.
Requested services
A. Analysis of current situation: To analyse problems, challenges, reform intentions and
opportunities in the area of regional and rural/agricultural development and the local (self)
governance sector.
Output: Needs analysis in the sector of region and rural/agricultural development as well as
local (self) governance system in Azerbaijan based on review of relevant policy documents,
and meeting notes with key stakeholders.
B. Overview of existing initiatives by EU and other donors: To prepare a review of the
existing initiatives as well as projects in the pipeline in the field of regional and
rural/agricultural development and local (self) governance system implemented by different
donors in Azerbaijan. In carrying out the assignment, the team should closely cooperate with
relevant stakeholders; liaise with on-going donor-funded programmes and projects, and the
experts working in the targeted fields.
Output: Mapping of donor interventions and identification of gaps/recommendations for
possible EU support, ensuring complementarity and avoiding duplication or overlap.
C. Summary of findings – Draft Action Document and draft LogFrame: To summarise
the findings and elaborate identification part of the Action Document, including, overall logic
of the action and its coherence with Single Support Framework 2014-2017, implementation
modalities, and analysis and specific activities/results on cross-cutting themes - Gender,
IDPs, environment, private sector involvement.
Output: Draft Action Document and LogFrame, recommendations for moving forward in the
formulation of the program.
All documents produced should comply with the format and procedures applicable to EU
external assistance, according to current guidelines and regulations (PRAG, Financial
regulations, etc).
List of outputs are as following:
A. Needs analysis in Regional and Rural/Agricultural sector and Local Governance system in
the country;
B. Overview of existing and planned initiatives in Regional and Rural/Agricultural sector and
Local Governance system and recommendations for EU support
C. Draft Action Document (identification part) and LogFrame, including recommendations
for follow up in the formulation phase.
Required outputs
The outputs and the indicative timing of submission are detailed below.
Outputs (reports)
Identification Phase
A. Overview of current situation
B. Overview of
existing and planned
initiatives
C. Draft Action Document (identification
part) and LogFrame
Timing for submission
Fourth week of October, 2016
First week of November, 2016
Fourth week of November, 2016
Language of the Specific Contract
English
Subcontracting
No subcontracting is foreseen under this contract.
3. EXPERTS PROFILE or EXPERTISE REQUIRED
The assignment should be undertaken by two Category I experts (Senior) and one Category
III (Junior).
The framework contractor should design among the senior experts a Team Leader. The
chosen expert will have a proven track record of at least two projects where he acted as Team
Leader.
Senior Expert in Rural Development/Agriculture – 30 working days
Category and duration of equivalent experience
The expert should be Category I, hence with at least 12 years of professional experience.
Education – Qualifications and skills
 At least Master Degree, preferably in economics, social sciences or other relevant fields
 In the absence of the above degree, at least 12 years of professional experience relevant to
the field of expertise sought
Professional Experience
Minimum requirements:
 At least 10 years of general professional experience in rural development, after the
education and qualifications criteria have been met
 At least one professional experience in transition countries (see footnote number 3).
 At least 5 years of professional experience in the design (identification and formulation),
implementation, monitoring and/or evaluation of rural development/agriculture projects either
in managerial or advisory capacity
 Proven track record in the EU's Project Cycle Management Approach in at least 2 projects.
Language skills
 Fluency (both oral and written) in English
 Knowledge of Russian, Turkish or Azerbaijani will be considered as an asset.
Senior Expert in Regional and Local (self) Governance – 30 working days
Category and duration of equivalent experience
The expert should be Senior, hence with at least 12 years of professional experience.
Education – Qualifications and skills
 At least Master Degree, preferably in public policy, public administration, social sciences
or other relevant fields
 In the absence of the above degree, at least 12 years of professional experience relevant to
the field of expertise sought
Professional Experience
Minimum requirements
 At least 10 years of general professional experience, after the education and qualifications
criteria have been met, in policy, legislative and/or institutional reform of public
administration at regional and local levels, including local self-governance system;
 At least one professional experience in transition countries3.
 At least 5 years of professional experience in working with/building capacity of local
authorities preferably municipalities engaged in local and regional development.
 At least 5 years of professional experience in the identification, formulation, monitoring
and/or evaluation of projects in the field of local self-governance, with preferably at least one
EU funded project.
Preferred requirements:
 Knowledge of the EU or MSs rural and regional development design and management
with engagement of local authorities, including local (self) governance bodies;
Language skills
 Fluency (both oral and written) in English
 Knowledge of Russian, Turkish or Azerbaijani will be considered as an asset.
Junior Expert in Regional and Local (self) Governance with strong knowledge of regional
and rural/agricultural context – 25 working days
Category and duration of equivalent experience

3
Although the term "transition economies" usually covers the countries of Central and Eastern Europe and the Former Soviet Union,
this term may have a wider context. There are countries outside of Europe, emerging from a socialist-type command economy
towards a market-based economy (e.g., China). Moreover, in a wider sense the definition of transition economy refers to all countries
which attempt to change their basic constitutional elements towards market-style fundamentals. In 2000, the IMF listed the following
countries with transition economies: Albania, Armenia, Azerbaijan, Belarus, Bulgaria, Cambodia, China, Croatia, Czech Republic,
Estonia, Georgia, Hungary, Latvia, Lithuania, Kazakhstan, Kyrgyz Republic, Laos, Republic of Macedonia, Moldova, Poland, Romania,
Russia, Slovak Republic, Slovenia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Vietnam. In addition, in 2002 the World Bank defined
Bosnia and Herzegovina, and the Federal Republic of Yugoslavia (later Serbia and Montenegro) as transition economies. In 2009,
World Bank included Kosovo in the list of transition economies. Some World Bank studies also include Mongolia. The eight first-wave
accession countries, which joined the European Union on 1 May 2004 (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland,
Slovakia, Slovenia) and the two second-wave accession countries that joined in 1 January 2007 (Romania and Bulgaria) have
completed the transition process.
The expert should be Category III, hence with at least 3 years of professional experience.
Education – Qualifications
 At least Master Degree, preferably in economics, public policy, social sciences or relevant
fields
 In the absence of the above degree, 5 years of professional experience relevant to the field
of expertise sought
Professional Experience
Minimum requirements
 At least 3 years of general professional experience after the education and qualifications
criteria have been met ;
 At least 3 years of professional experience in the field of regional and local (self)
governance and/or rural development, with preferably at least one year in Azerbaijan
Preferred requirements
 Knowledge of institutional and legislative framework of the regional and local (self)
governance system in Azerbaijan and strong knowledge of regional and rural/agricultural
context of the country.
Language skills
 Fluency (both oral and written) in English is a requirement and in Azerbaijani is a strong
asset.
4. LOCATION AND DURATION
Starting period
The project implementation is due to start on 3rd of October 2016. The expected duration is of
3 (three) months. As part of the technical offer, the framework contractor must fill-in the
timetable in the Annex 2. This table shall not start by a precise date but by "day/week 1"
Foreseen finishing period or duration
End of December, 2016
Planning including the period for notification for placement of the staff as per art 16.4 a)
The project team is expected to undertake one mission to Azerbaijan starting in October 2016.
Indicative distribution of the Senior expert in Rural Development/Agriculture workdays is 5
home based days for desk review and report writing, the remaining 25 days spent in country.
Within these 25 days, at least two days shall be used for travel to the regions. Indicative
distribution of the Senior expert in Regional and Local (self) Governance workdays is 5 home
based days for desk review and report writing, the remaining 25 days spent in country. Within
these 25 days, at least two days shall be used for travel to the regions. The experts are
expected to undertake these in-country missions together.
The Junior expert is expected to spend 100% of his mission in Azerbaijan.
Location(s) of assignment: in case of more than 1 location of assignment, identify for
each location the working days per expert needed
The assignment will take place in Baku, Azerbaijan, with possible travels to the Regions
(indicatively one mission for each senior expert of maximum 2 days).
5. REPORTING
The team should provide the following reports:
1. An Inception report with a revised methodology, two weeks after the start of the mission.
2. A Final report, outlining all activities and achievements of the project. The final report
will include all relevant annexes and deliverables as per TORs. The final report is to be
submitted maximum two weeks after the end of the assignment.
Language of this contract is English and all reports should be submitted in English.
In terms of outputs, an Azerbaijani translated version is required for the final version of the
Action Document and Log Frame of the Annual Action Program 2017.
All outputs (see above) should be sent electronically to the programme manager at the EU
Delegation. The EU Delegation is responsible for approval of the outputs.
The contractor will submit three hard copies of the Final Report to the EU Delegation,
including all annexes.
6. INCIDENTAL EXPENDITURE
In addition to the per-diems and the international travel costs, the following are to be included
in the offer as incidental expenditure:
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Translation of outputs as per indicated above
Interpretation for meetings
Intercity transportation
Costs of visas
Printing of materials
Equipment
No equipment is to be purchased on behalf of the contracting Authority/beneficiary country
within the context of this contract.
7. MONITORING AND EVALUATION
The contractor is responsible to ensure proper monitoring and evaluation of the quality of the
performance of the team. As such, the following indicators of quality will be applied:
 Timely Delivery of outputs
 Quality of documents produced, in line with the EU procedures and Templates
 Quality of writing language skills of the team
8. TYPE OF CONTRACT AND ESTIMATED AMOUNT
This is a global-price contract. The maximum amount for this contract is 100,000 EUR.
Payments will follow contractual conditions and are subject to receipt and formal acceptance
by the Contracting authority, of:
A. Overview of current situation
B. Overview of existing and planned initiatives
C. Draft Action Document (identification part) and LogFrame
9. IMPORTANT INFORMATION
Framework contractor is strongly advised to start visa request procedures as soon as the
contract is signed. It is reminded to the framework contractors that visa for the experts are
under their sole responsibility and that the Delegation shall not provide any specific support
unless exceptional circumstances arise. Late submission of visa requests not allowing for visa
processing in time is not considered as exceptional circumstances.