The Slovak Republic International Investment Bank Technical Assistance Fund

1

The Slovak Republic – International Investment Bank Technical Assistance Fund

TAF/002/2018

TERMS OF REFERENCE

for provision of technical assistance to PeWaSs.r.o. in regardto the

verification of the AquaholderTMproducts and their suitability for agricultural production in Vietnam

Technical Assistance Classification:

• Country:Vietnam
• Business Sector: Agriculture

1.Background to the Project

The company PeWaSs.r.o. (Pewas)is a Slovak research and development company specializing in the alternative use of traditional superabsorbing polymers (well-known from the hygiene industry – baby diapers, hygienic pads, etc.) in agriculture and industry since 2002. It has developed an innovative way of water retention in soil suitable for farmers, fruit growers and horticulturists. Aquaholder™ product portfolio is based on superabsorbents, which, when added to soil or seeds, are able to absorb 200 to 500 times the amount of water to their weight, maintain the moisture at plant roots and gradually release it in time of shortage. Otherwise, precipitation or irrigation water would run into the subsoil waters and would only use a fraction of its potential. A more efficient use of water is crucial in dry areas or areas without the possibility of irrigation, especially during the germination period. AquaholderTM can thus make agricultural production more efficient or even enable it in conditions where it has been difficult to accomplish.

First product designed for agriculture, the AquaholderTM Agro,is intended for simple application of superabsorbing polymer based product directly into the soil, where it works as reservoir of water and soil conditioner. Further enhancements of product made by Pewas research team resulted into the development ofPewasAquaholder™ Seed+concept –a special formula consisting of superabsorbing polymer and other substances – patent pending.

Within the Project, the Consultantwillassist Pewas withverification of the effect of two Aquaholder™ products under the conditions of Vietnamese agriculture:

AquaholderTM Seed+(later labelled as AQS+)

• is a highly innovative product with the global potential developed entirely for a seed industry. Asmall amount of AQS+ applied directly onto the seed is able to effectively bind sufficient amount of water and support growth of plants in their initial phase. As a result,a significant increase of seed emergence and subsequently hectare yields are expected to be achieved.

AquaholderTM Agro

• isa crystal form substance designed for application directly into the soil before or during sowing or planting process. Here it acts as a soil conditioner, which improves soil characteristics, water retention and water management allowing touse water which would otherwise be unusable for vegetation.

Aquaholder™ has been successfully tested in European conditions and in Afghanistan. The test results showed an increase in germination rate and higher hectare yield using Aquaholder™. It is also possible to achieve up to 50% water savings.

The Project has a significant development effect because it is aimed at the mitigation of the drought hazard in Vietnam. In the recent years, Vietnam has become increasingly exposed to drought risks. Since mid-2015, 52 of 63 provinces – more than 83 percent of the country – have been affected by drought. This has not only left two million people suffering acute water shortages and requiring humanitarian assistance, but also damaged a total of 425 900 hectares of cropland, including 320000 ha of the staple rice crop. As a result, an 1.75 million people have lost their incomes due to the impact of the drought on the agriculture sector[1].In response to this unprecedented emergency, the Vietnamese Government even had to request FAO’s help as part of international assistance.[2]

Another potential positive development impact of the Project may be a potential synergy with the Food Security Program implemented in Vietnam by the International Financial Corporation (IFC) under the Slovak Republic – IFC Trust Fund in 2017-2019 and designed for leading agribusiness farms and their supply chains.

In this context, the following positive impactsmight be achieved as a result of this Project:

• introducing a new sustainable development technologythat will contribute to the increase of crop resiliency to drought in Vietnam;
• saving resources – better water management;
• verification of the attractiveness, technical and commercial feasibility of Aquaholder™product portfolio for the Vietnamese agriculture;
• modernization and upgrades - adjustment of Aquaholder™ products design for Vietnamese conditions as well as for Southeast Asia region;
• support of a Slovak innovative agricultural start-up project;
• improvement of research and business cooperation between Slovakia and Vietnam;
• laying down the cornerstones for future commercial activities between the Slovak and Vietnamese entities

2.Description of the Assignment Objectives

The overall objective of the Assignment is to get results and concrete suggestions regarding the suitability of the Pewas products for Vietnamese agriculture.

The knowledge gained by the Consultant will serve as a basis for further product research and development in Slovakia, as so far the product has been tested mostly in the climate conditions of Europe and Afghanistan. With such knowledge, it is possible to move the product to the next stage and prepare for penetration into other markets with similar climate conditions as in Vietnam.

3.Scope of Services

Within the Assignment, the Consultant will be contracted to carry out the following three main activities:

Activity 1: Preparation of the Project Feasibility Study

1.1. Elaboration of the Input Factor Analysis (PESTLE) report

Description:The Input Factor Analysis (PESTLE) Reportwill containthe analysisof the particular needs of Vietnamese agriculture with a respect to the following areas:

Political:These factors determine the extent to which a government may influence the economy or a certain industry.

Economic:These factors are determinants of an economy’s performance that directly impact a company and have resonating long term effects.

Social:These factors scrutinize the social environment of the market, and gauge determinants like cultural trends, demographics, population analytics etc.

Technological:These factors pertain to innovations in technology that may affect the operations of the industry and the market favorably or unfavorably.

Legal:These factors have both external and internal sides. There are certain laws that affect the business environment in a certain country while there are certain policies that companies maintain for themselves.

Environmental:These factors include all those that influence or are determined by the surrounding environment. This aspect is crucial for certain industries particularly farmingand agriculture etc.

1.2. Description of the mainissues / the mosturgent needs of the Vietnamese agriculture sector

Description: The consultant willidentify and analyzethe current situation in the Vietnamese agriculture sector as far as the main issues and needs for the future are concerned.

1.3. Identification of the needs which could be targeted by Aquaholder™ products

Description: Following the description of the major issues, the ones which could have the biggest potential to be targeted by Aquaholder™ products will be identified.Crop selection, the most suitable conditions (regions, climate conditions, etc.) will be an integrated part of the Project, which will be consulted with the Local Partner and will be based on the requirements of the Vietnamese agriculture.

1.4. Final elaboration of the Project Feasibility Study

Description: The Project Feasibility Study will be a summary of the most important input data of the project. Its goal is to process the accumulated information and results and to evaluate them for further development of the project.

Activity 2: Testing of Aquaholder™ products in Vietnam

2.1. Establishing Cooperation with the Local Partner

The Consultant will help Pewas to establish cooperation with a preselected qualified Local Partner organization (Vietnam Academy of Science and Technology, hereinafter – the Local Partner) for testing Aquaholder™ products in Vietnam, and facilitate negotiations between the Local Partner and Pewas.

2.2. Sample production of AquaholderTM Seed+ (AQS+) and AquaholderTM Agro (a crystalline product) for the testing purposes and preparation of the methodology for setting up and monitoring laboratory tests/small scale field trials

Description:Speciallytreated seeds designed for laboratory and/or small-scale field tests and crystalline product for direct application to the soilwill be provided byPewas to the Local Partner to be tested in Vietnam.

The methodology includes a precise description of planting, use of AquaholderTM products, monitored parameters and description how to measure them (tracking method, frequency). It will be important to state the right conditions in which the experiment will have valid results.

2.3. Administration of transport related services

Description: Transportation is an extremely important part of the project. The success of the project depends significantly on this aspect.The Consultant will arranhe the transportation of the samples of coated seeds,Aquaholder™ Seed+to Vietnam together with AquaholderTM Agro samples. This process is administratively complicated as the seed is subject to customs control, so a sufficient time reserve is required for the transportation of seeds.

2.4. Performing laboratory tests/small scale field trials tests and monitoring of selected parameters

Description: The launch of laboratory tests/small scale field trials. This process must be fully in line with the agreed methodology.

The sowing is followed by monitoring activities. Monitoring procedure must be fully in accordance with the agreed methodology.

2.5. Evaluation and analysis of laboratory tests/ small scalefield trial testing results and preparation of the “Laboratory and small scale field trials tests report”

Description: Analysis of the results evaluated in accordance with the stated methodology.

Activity 3: Elaboration of the Project Final Report

Description: The Consultant will prepare the Project Final Report containing comprehensive analysis and suggestions for the use of AquaholderTM in Vietnam, based on the experience and information gained during the Activities 1-2 of the Assignment.

Activity 4: Organization of the information seminar on the Project outcomes for Key Local Stakeholders

The results and lessons learned during the Project will be communicatedto key local stakeholders at the information seminar, organized by the Consultant in cooperation with the Local Partner and the Embassy of the Slovak Republic in Vietnam.

The exact identification of Key Local Stakeholders such as local farmers and Vietnam agricultural government agencies will be carried out by the Consultant in cooperation with the Local Partner.

The Consultant will prepare, on the basis of the Project Final Report, information material in Vietnamese language for the Key Local Stakeholders.

The Consultant will arrange the publication of press release about the seminar and the information material at the Local Partner’s website and two Vietnam’s reputable agricultural industry websites.

4. Expected Key Deliverables

The Consultant will be required to produce the following key deliverables:

•Completed Project Feasibility Study including the areas/chapters to be addressed;

•Signed agreement with the Local Partner;

•Completed Final Report of the Project including test results, lessons learned, recommendations for further activities in relation to use of Aquaholder™ products in the context of the building of crop resiliency to drought in Vietnam;

• Organization, in coordination and with the support of the Local Partner, of the information seminar on the Project outcomes for key local stakeholders (at least 10 entities).

5. Methodology

5.1. General provisions

The Consultant shall work together with Pewas experts and Local Partner experts from Vietnam under an integrated mixed team to help ensure that all deliverables are accomplished according to the defined scope and schedule.

Consultant will secure all actions needed to performfeasibility study regarding the suitability of AquaholderTMproducts under Vietnamese agriculture and the testing of the product in Vietnam (this can be contractually outsourced activity to the local partner in the value of up to 20% of project’s budget).

Trials will be carried out on selected crops (the most suitable based on the feasibility study up to 3) using AquaholderTM products, and their impact on germination level, reduction of irrigation. Tests will be carried out in laboratory conditions and/or small-scale field tests.

5.2. Methodology of small scalefield experiments and laboratory tests

Field experiments will be identical for all selected crops. Each test will be performed in 4 variants and 4 repetitions:

(a) control field, untreated seed without Aquaholder™ application;

(b) seed treated by AquaholderTM Seed+

(c) untreated seed with AquaholderTM Agro application to the soil;

(d) seed treated by Aquaholder™ Seed+ and application of AquaholderTM Agro into the soil.

Each variant will be tested in area of10-20 m² to ensure high accuracy and reliability.For each crop, standard fertilization will be carried out under the conditions of Vietnamese agriculture. The same fertilization will be done for each variant – with and without AquaholderTM products.

The impact of soil and water on the effect of AquaholderTM products will also be assessed in the case of partner's good laboratory equipment. Soil fertility will be considered by performing soil sampling from each experimental field followed by a laboratory analysis of the main soil properties such as an organic content, pH, soil texture, bulk density, electrical conductivity, cation exchange capacity and nitrogen, phosphorus and potassium content.

To protect crops from pests and diseases, suitable treatments will be applied for each variant.

Laboratory tests will be executed based on the standardized germination tests including the measurement of roots and shoots.

6.Qualifications and Experience Required

•Substantial knowledge of the Vietnamese agricultural market and industry, including regulatory issues;

•A proventrack record of at least three successful consultancy research & development projects in the area of agriculture, agricultural chemistry, forestry industry and/or bio-economy;

•Good facilities and sufficient resources, strong international team, strong technical expertise, combined with local knowledge to deliver tailored solutions. In the offer, it is necessary to include Consultant’s project team members’ CVs;

• No internal restrictions to carry out projects jointly with governmental bodies (e.g. Embassy of the Slovak Republic in Vietnam).

7. Duration and Timing

The Consultant will be required to complete his assignment in 10 months after the signing of the contract between the IIB and Consultant.

The Consultant will conduct the assignment in accordance with timeline below. The Consultant will be expected to finalize this timeline with any relevant changes in theInput Factor Analysis Report.

KeyDeliverable / Month
1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10
Completed Project Feasibility Study including the areas/chapters to be addressed
Signed Agreement with the Local Partner
Laboratory and small-scale field tests
Completed Final Report
Organization of the information seminar on the Project outcomes for key local stakeholders and dissemination of the seminar materials

8.Eligibility

Duly qualified Consultants that are registered in the Slovak Republic (legal entities) or Slovak nationals (individuals) are eligible to participate in the Project. Up to 25% of the overall budget assigned to the contracted Consultant can be further outsourced to a Consultant registered or domiciled in Slovakia or another member state of the IIB.

9.Reporting Requirements

The Consultant will report to the PeWaSs.r.o. General Manager Mr.JánHorváth ().

All deliverables should be in electronic format (.doc/.docx, .ppt/.pptx, and .pdf) in English.

10.Implementation Arrangements

The contracting entity for the selection of Consultants will be IIB.

The Consultant will be selected through a competitive procedure in accordance with the criteria laid down in “Quality and Cost Based Selection” (QCBS) method set out in the internal IIB “Regulation on Procurement of Consultancy Services under the Slovak Republic – International Investment Bank Technical Assistance Fund” (Regulation).

The Invitation for Expression of Interest (EOI) will be made available on the open resource internet website in order to inform as many eligible Consultants as possible.

The Invitation for EOI covering the technical, cost, and time parameters shall be published at the URL specified in the preceding paragraph for the period of four weeks starting within one week after the approval of these Terms of Reference by the Ministry of Finance of the Slovak Republic.

Information provided by the Consultants in the EOIs will be used by contracting entity to prepare a short list of the most qualified Consultants that will subsequently be invited to submit technical and financial proposals for an assignment.

Thereafter the proposals will be reviewed by the contracting entity and the decision concerning the selection of the Consultant company will be made known in writing, and published on the same website, in accordance with the Regulation. The selected Consultant will be expected to enter into a contract with the IIB.

During carrying out the assignment, the Consultant shall provide regular bi-weekly progress reports signed off by its representative to authorized IIB officers – Mr. Igor Barat, Director, European Regional Office (,) and Mr. Roman Senin, Head of Unit, Compliance Department ().

All reports shall be submitted in electronic format (.doc/.docx and .pdf) in English.

The source of funding (SR-IIB TAF) shall be referred to on the cover sheet of all reports, documents and/or presentations, if applicable.

[1] According to the World Bank, annually disasters cost Vietnam an average of up to 1.5 percent of its GDP. In the event of a major disaster, this can go as high as 4 percent of GDP.An Integrated Strategy Can Help Vietnam Manage Disaster Risks: Joint World Bank – Vietnam Conference // Press Release, 13 October 2017. World Bank. .

[2] FAO rapidly responds to severe drought in Viet Nam // .