Technical Audit and Valuation of the Gambia Groundnut Corporation (GGC)

Country:

Gambia, The

City/Locality:

Banjul

Notice/Contract Number:

Gateway Ex / 012-CS

Publication Date:

Jul 13, 2008

Deadline:

Aug 7, 2008

Funding Agency:

World Bank

Buyer:

Gateway Program Project
the Department of State for Trade, Industry and Employment (DOSTIE)

Eligibility of Bidders:

The list of expertise required to successfully undertake the proposed assignment. The contractor should feel free to propose an alternative cast of expertise to carry out the tasks under this consultancy:
a) Groundnut Sector Specialist with experience in both the economic and operational aspects of the Groundnut Industry.
b) Organizational Expert with experience in the organizational and operational aspects of the Groundnut Industry.
c) Financial Specialist with experience in similar types of assignment in the Groundnut Sector, with demonstrated experience in carrying out valuation exercises.
c) Legal Expert with experience in the Groundnut Sector.

The specialists proposed by the consultant must have demonstrable experience in carrying out similar assignments. Experts with direct management or other relevant working experience in the Groundnut Industry are preferred

Original Language:

English

Address:

Mr. Kebba Njie.
Gambia Investment Promotion & Free Zones Agency
48 Kairaba Ave.
Serekunda
Banjul , Serekunda 757
Gambia, The

Telephone:

(220) 4377624-5

Fax:

(220) 4377379

Email:

Click here

Web Site:

www.gipfza.gm

Expressions of Interest

Financing: World Bank/Government of the Gambia
Abstract: Technical Audit and Valuation of the Gambia Groundnut Corporation (GGC)
Country: The Republic of The Gambia

Credit Number: 3606GM
Project Title: Gateway Project
Contract Ref: Gateway Ex / 012-CS
Procurement Method: Quality & Cost Base Selection

Project: C. 3 Divestiture Studies & Other Support
Sector: Consulting Services
Deadline: August 7th 2008; 16.30GMT

The Gambia Government has received a loan from the International Development Association towards the cost of the Gateway Project and intends to apply part of the proceeds to cover eligible payments under the Contract for Technical Audit and Valuation of the Gambia Groundnut Corporation (GGC).

The Gambia Investment Promotion & Free Zones Agency (GIPFZA) on behalf of the Government of The Gambia, the implementing agency of the Gateway Project hereby invites qualified eligible consultants to submit ‘Expressions of Interest and Qualifications Statements’ in providing the services.

The Gambian Government has approved the Groundnut sub Sector Roadmap Implementation Framework, which incorporates the privatization through a management contract of the Gambia Groundnut Corporation (GGC) in 2008. To start this process, there is a need to launch a technical diagnosis and financial audit of the GGC in order to constitute a basis for the preparation of the turn around of the firm and the sector’s performance.

Objectives of the Assignment
The objective of the proposed assignment is three folds:
a. Undertake a diagnostic and a complete Technical Audit of GGC in the context of the Groundnut Sector in The Gambia, the region and worldwide;
b. Assess the value of the company by various appropriate methods;
c. Assess the different divestiture options which could be used to bring about a private sector participation in GGC.

Scope of the Assignment
Based on existing documentation relating to Gambia Groundnut Corporation, the Premier Agro Oils Groundnut Industrial Complex Ltd (PAOGL) located at the Denton Bridge, the GAMCO crushing Plant operations and on its own investigation and interviews with the company’s management and staff, responsible officials in the Ministry, relevant Ministries and entities, as well as GGC’S clients, the consultant should:

a) Review and diagnose in detail the operations and activities of GGC, PAOGL and GAMCO, their asset composition, its existing and potential markets, services offered, operating and financial performance, etc. The diagnosis should include a detailed investigation of each business department/directorate in GGC, in order to identify the company’s strengths and weaknesses, including the quality of products and its assets and liabilities. These various services departments are River Transport, Depots and Logistics, Shelling and Crushing, and Quality Control. The review would also include the Premier Agro Oils Industrial Complex, with particular emphasis to its following industrial assets;

 The Crushing plant which has been functioning during the past years;
 The Pelletising Unit: Non-functional since 2003/4-Season
 The Solvent Extraction Plant: Non-functional since 2003/4-Season
 The Detoxification Plant: Installation incomplete…

b) Establish the technical performance level, capacity, efficiency and functionality (according to industrial standards and norms and/or asset’s/plant’s potential norms) of each of the various operational components of the entire Groundnut Industrial Assets (GGC, GAMCO, PAOGL) comprising but not limited to: River transport, Shelling, Depots, Crushing, Pelletiser, Solvent Extraction, Tank-farms etc…

c) Establish the assets potential in handling an average throughput of 30,000Mt and as the case may be, the investments required to handle such throughput, including the maintenance/enhancement of the quality of the handled/processed groundnut products;

d) Conduct a valuation of GGC and PAOGL by various appropriate methods, including at least, adjusted book value and discounted cash flow. The consultant should provide the rationale for the assumptions made in the valuation done based on discounted cash flow. This includes the valuation of all asset including the GGC wharves, quays and dry dock;

e) Carry out a complete organizational diagnosis of GCC, PAOGL and GAMCO using methods such as SWOT analysis and include a review of the staffing level in comparison with the industry standards, as well as its productivity;

f) Develop a new organizational structured for an improved competitiveness of the Groundnut Sector. The report should also provide a time bound action plan on how the new organizational structure would be put in place;

g) Identify and analyze all constraints and opportunities, including policy, environmental and regulatory issues, which might deter or attract the completion of the private sector participation in GCC. In carrying out this task the consultant will determine and report on any critical asset situation that may hinder the operation of the various industrial assets as a going concern;

h) Provide practical recommendations to mitigate such identified constraints/hindrances (if any) to ensure the operation of the Industrial Assets as Going Concerns.

i) Develop and analyze appropriate private sector participation options, taking into account the need for an improved performance at GCC as well as the need to bring additional investment well beyond those currently provided through the Gambia Gateway Project and the need to introduce the required operational know-how and the potential access to new markets;

j) Define a "profile" for the type of private sector investor which would appear best suited to: (i) bring modern management techniques in the operation of the future GCC, and (ii) ensure that the company contributes significantly to the increased production and quality of products in the groundnut sector; (iii) invest in the sector and (iv) possess market knowledge and access.

k) Develop and present an appropriate marketing strategy for the attraction of good candidates as management contractors in GGC;

l) Identify prospective partners, establish contacts and interview potential interested candidates;

Qualifications of the consultant

The list of expertise required to successfully undertake the proposed assignment. The contractor should feel free to propose an alternative cast of expertise to carry out the tasks under this consultancy:
a) Groundnut Sector Specialist with experience in both the economic and operational aspects of the Groundnut Industry.
b) Organizational Expert with experience in the organizational and operational aspects of the Groundnut Industry.
c) Financial Specialist with experience in similar types of assignment in the Groundnut Sector, with demonstrated experience in carrying out valuation exercises.
c) Legal Expert with experience in the Groundnut Sector.

The specialists proposed by the consultant must have demonstrable experience in carrying out similar assignments. Experts with direct management or other relevant working experience in the Groundnut Industry are preferred.

Eligible consultants are invited to indicate their interest in providing the required services. Interested consultants must provide the following information indicating that;
• they are qualified in the field of assignment.
• the technical and managerial capabilities of the firm.
• their core business and years in business.
• the qualifications of key staff.

It is anticipated that the assignment will be completed within a period of 5-6 person-months from the date of signing the agreement between GIPFZA and the Firm.

The Consultant will be selected in accordance with the procedures set out in the World Bank’s guidelines “Selection and Employment of Consultants by World Bank Borrowers” January 1997, Revised September 1997, January 1999 and May 2002 to determine the most qualified firm.

Expressions of interest shall be submitted to the undersigned on or before 16.30GMT August 7th 2008, clearly marked “Request for Expression of Interest (EOI) for Technical Audit and Valuation of the Gambia Groundnut Corporation (GCC)

Interested firms may obtain further information at the address below during this period from 0800 to 1600 GMT Mondays to Thursdays and 0800 to 1230 GMT Fridays.

Chief Executive
Gambia Investment Promotion & Free Zones Agency
GIPFZA-House
48Kairaba Avenue, Serekunda
P. O. Box 391, Banjul, The Gambia
Tel: 220-4377377/8
Fax: 220-4377379
ceo.gipfza@qanet.gm / ktn@gipfza.gm

Technical Audit and Valuation of the Gambia Groundnut Corporation (GGC)

Request For Expressions of Interest

General Information

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Assignments

Original Text

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