1. Title of Consulting Service

Developing Reference Manual on Internal Control System (ICS)

2. Background

National Tea and Coffee Development Board (NTCDB) is a commodity-based board established on 1993/06/02, under the aegis of Ministry of Agricultural Development, by Tea and Coffee Development Board Act 1992 of Nepal. National Tea and Coffee Development Act, 1993 has mandated to promote and strengthen Tea and Coffee sector through policy formulation, technical and managerial support. With this, NTCDB has been implementing number of initiatives and “Nepal’s Increased Sustainable Tea Exports Project” (NISTEP) is one of them.

The Ministry of Industry, Commerce and Supplies (MoICS) with the support from Enhanced Integrated Framework (EIF/Tier 2) is implementing a project entitled “Nepal’s Increased Sustainable Tea Exports” (NISTEP) aimed at boosting the international competitiveness of orthodox tea from Nepal. The project aims at stimulating growth in export market of orthodox tea by enhancing international competitiveness of concerned stakeholders in the supply chain through introduction and institutionalization of technology based traceability system, organic certification scheme and collective trade mark promotion of Nepal Tea. A number of capacity building interventions are underway to help induce measurable results in terms of increased exports and income, export diversification and job creation with a particular focus on youths and women. The Ministry of Industry, Commerce and Supplies (MoICS) is the Main Implementing Entity (MIE). MoICS works closely with National Tea and Coffee Development Board (NTCDB), an implementing entity to execute Outcome One of the project stated below. A Project Steering Committee (PSC), representing national and local level stakeholders, is established to oversee the project implementation.

In particular, the project strives to deliver concrete results in terms of: I) Improved Compliance to international standards of Nepal Tea through a) Technology based traceability and, b) Institutionalization of Organic certification practices, and II) Improved access to international markets through a) Strengthening, Promotion and establishment of Collective trademark “Nepal Tea” Quality from the Himalayas, b) Increased access and sales to new markets c) Formulation of tea sector investment strategies. 

In this regard, to improve compliance with the organic production standards and other related requirements of the targeted markets and thereby enhance the international competitiveness of organic orthodox tea, the project intends to carry out the capacity development activities for subsequent certification of potential small producer groups/cooperatives, processors, collectors and other actors involved in the supply chain. These interventions will complement the introduction of technology based traceability system, as well. In this connection, NTDB has planned to develop a Reference Manual on Internal Control System (ICS) targeting Internal Control Inspectors (ICIs) and seeking services to prepare a Reference Manual on Internal Control System (ICS) and train 30-40 local Internal Control Inspectors as given in Table-1. The Service Provider will carry out the activities and sub-activities in close coordination with NTCDB, National Project Coordinator and Technical Expert.

3. Objective and Scope

• Objectives

The overall objective of hiring the consultancy/firm (as a service provider) is to facilitate the process of institutionalization of organic certification schemes applying standard Internal Control system (ICS) at production and processing level in Illam district.

The specific objectives include:

• To build the capacity of producers' groups, cooperatives and processors at local level on organic practices that meets required international standards for organic certification.
• To guide the setting up of internal control systems that will guide selected farmers groups, cooperatives to follow organic farming norms and practices that meet certification standards and market quality requirements.
• To develop local level Internal Control Inspectors (30-40) providing special training and capacity building opportunity.
• To strengthen the internal control systems and ensure that concerned processors follow policies and guidelines to meet the required standards.

• Scope of work

The proposed interventions are planned to support producers organized in groups and cooperatives, processors and collection centres, through trained and qualified internal control inspectors, in obtaining organic certification and be the part of the traceability system. The focus will be put on developing capacity of Field Officers who are directly involved with producers, processors and other actors. The Internal Control System Manual will be based on review of existing organic certification guidelines and procedures available with NTCDB and with MoALD.  

• As a part of Organic Certification Scheme design reference materials for strengthening Internal Control System at production and processing level in organic orthodox tea sector
• Develop the capacity of Internal Inspectors through training and coaching at field level
• Develop human resource capacity at processing units to maintain standards and process of Good Manufacturing Practices (GMP).
• Provide guidance to improve and conform existing Internal Control System to required standards including traceability in both production and processing level
• Propose measures to comply with the terms and conditions of international organic certification for producers and Good Manufacturing Practices (GMP) for processors.

4. Team Composition and Responsibility

The consultant(s) for development of reference materials in the form of manual on ICS will be Nepali nationals proposed by bid winning company or an individual. The selected company or individual will have sufficient experiences on introducing and management of similar type of assignments. Preferences will be given to those that have experience in organic agriculture promotion and tea sector. In case of a consulting company, besides proposing the team of key experts listed above it is must that the firm /company has over seven years of field experience on organic agriculture practices, preferably related to national and international organic inspection and certification system. Priority will be given to those consulting firms or company that has exposure to tea cultivation and processing. Proven knowledge on Tea Certification and Traceability system in Nepal will be an added advantage.

• Team composition

The consultant shall be required to form a team for this assignment. The consultant’s team shall be manned with an adequate number of experts having relevant experience in similar assignments. The service provider should provide a list of key experts for the service as given below.

Table 2: Indicatives on key experts (National)