Grenada. RG X1044 Compete Caribbean Program

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1 Grenada RG X1044 Compete Caribbean Program STRENGTHENING EXPORT COMPETITIVENESS IN THE GRENADA AGRICULTURE (GD CC2067) Consultancy to develop Legal Drafts of Reforms to the Grenada Cooperative Association (GCA), the Grenada Cooperative Nutmeg Association (GCNA) and the Grenada Minor Spices Association Legislation/Regulations to Strengthen Cooperative Association Governance and Institutional Capacity Background TERMS OF REFERENCE COMPETE CARIBBEAN is a private sector development program jointly funded by the Inter American Development Bank (IDB), the United Kingdom Department of International Development (DFID) and the Government of Canada [formerly the Foreign Affairs, Trade and Development Canada (DFATD)] to provide technical assistance grants and investment funding to support productive development policies, business climate reforms, clustering initiatives and Small and Medium Size Enterprise (SME) development activities in the Caribbean region. The objective of the Program is to help increase: (i) donor harmonization and coherence, equity and sustainability of national and regional private sector strategies; (ii) the efficiency and effectiveness of Caribbean governments to promote a competitive, growth oriented business and investment climate; and (iii) innovation, productivity, value added production, sales and sustainability in key Caribbean clusters and value chains, and product sophistication, productivity and exports of individual firms. For over 150 years, Grenada has been one of the world s leading exporters of nutmeg. In 2002, nutmeg exports were responsible for as much as 35% of total agricultural yields and was approximated at 2% of total gross domestic product. According to the draft Private Sector Assessment Report (2013) completed for Grenada, prior to 2004 there were over 30,000 people, 30% of Grenada s population benefitted financially from nutmeg farming with approximately 6,570 of these persons being farmers. In 2004 and 2005, Grenada was affected by two hurricanes. As a result of the hurricanes, nutmeg harvesting was reduced by approximately 90% of its pre hurricane levels and the number of farmers has fallen to 2,500. 1

2 Since its inception, the legal framework to govern the development of the nutmeg sector has not kept pace with international standards and practices. Through a 1946 Ordinance, the Grenada Cooperative Nutmeg Association (GCNA) became the sole exporter of nutmegs from Grenada. The objective in establishing the GCNA was to eliminate price competition between exporters, to stabilize prices and to enhance export quality. In recent times, this Ordinance, that created the association s monopoly export rights, has been a point of contention and has been unsuccessfully challenged three times. The GCNA s Board of Directors has six farmer representatives and three government appointed representatives. The Association owns 19 Buying Stations and Processing Centers but as a result of the decrease in production following the 2004/5 hurricanes, just two centers are now operating. The Association also established an Organic Processing Station prior to the hurricanes, but that is not now in use due to the low volumes. The purpose of the project is to advance agribusiness development in Grenada by improving the regulatory framework that governs the administration of the country s two major agricultural export sectors: nutmeg and cocoa, under the Compete Caribbean Business Climate and Competitiveness Enhancement Facility. This consultancy will address the need to reinforce and strengthen the institutional role or capabilities of nutmeg and cocoa exporters. The underlying reason why cooperative association governance is so strongly focused on short term priorities (e.g. maximizing the proportion of export revenue returned to growers while ignoring developmental and sustainability priorities) is that growers have been highly effective at demanding that directors adhere to their singular priority of maximizing price returns from the market. In other words, the Associations are extremely accurate reflections of the very narrow concerns of their members. Logically therefore, any improvements in Association governance must come from the bottom up rather than be imposed by the Board of Directors or management especially since prior attempts to improve governance without the members (i.e. farmers) knowledge or consent have been firmly resisted by them. Under this consultancy, the contractual will collaborate with a project team to design a wellcoordinated approach to improve the legal framework that governs the operation of the nutmeg and cocoa sectors in Grenada. Consultancy Objective(s) The objective of this consultancy is to improve and strengthen the legislation governing the roles, functions and responsibilities of the Grenada Cooperative Nutmeg Association (GCNA), the Grenada Cocoa Association (GCA) and the Grenada Minor Spices Association based on the recommendations provided by an international Cooperative Expert and an Incentive Framework Expert. Under this consultancy, the contractual will collaborate with a project team and the Experts to design a wellcoordinated approach to improve the legal/regulatory framework that governs the operations of the nutmeg and cocoa sub sectors in Grenada. Main Activities 2

3 The selected candidate will: Task A Cooperatives: (1) Draft the proposed new/revised legislation in a legal format and using the appropriate terminology to ensure that the changes clearly reflect the content of the resolution(s) approved by the Boards of Directors of GCNA, GCA and the Minor Spices Association. (2) Assist the Government in obtaining approval from the Boards of Directors of the GCNA, GCA and the Minor Spices Association for the draft new/revised legislation as well as seek the endorsement of the legal fraternity in Grenada prior to engaging Government s legal department into the reform advancement process (i.e. enacting into a Bill and then into an amended Act of Parliament). (3) Assist in establishing a time bound implementation plan with Government of Grenada for the Legal Department to advance the modifications to the existing legislation through the legal process of enacting these changes into law. (4) Assist in the presentation the draft legislation to Cabinet for its consideration. (5) Monitor the progress being made by the Government of Grenada s legal department and provide technical clarifications to them on an as needed basis and provide periodic progress updates to the Associations on actions being taken by Government to advance/complete the enactment of the revised legislation into law over the duration of the consultancy. Task B Investment Framework: (1) Draft the proposed new/revised legislation in a legal format and using the appropriate terminology to ensure that the changes clearly reflect the content produced under the incentive framework consultancy to support the revision of incentives to support the agriculture sector in Grenada and as approved by the main stakeholders. (2) Assist the Government in securing approval of the draft revised legislation from the key stakeholders including the endorsement of the legal fraternity in Grenada prior to engaging Government s legal department into the reform advancement process (i.e. enacting into a Bill and then into an amended Act of Parliament). 3

4 (3) Assist in establishing a time bound implementation plan with Government of Grenada for the Legal Department to advance the modifications to the existing legislation through the legal process of enacting these changes into law. (4) Assist in the presentation of the draft legislation to Cabinet for its consideration. (5) Monitor the progress being made by the Government of Grenada s legal department and provide technical clarifications to them on an as needed basis and provide periodic progress updates to the stakeholders on actions being taken by Government to advance/complete the enactment of the revised legislation into law over the duration of the consultancy. Reports / Deliverables The contractual will produce the following deliverables: (1) A detailed work plan with a schedule of activities and deliverables, including the list of stakeholders with whom he/she would like to consult during project preparation; (2) Draft new/revised legislation for Grenada Cocoa Association, Grenada Cooperative Nutmeg Association and the Minor Spices Association to strengthen Cooperative Association governance and institutional capacity based on the recommendation of the Cooperative Expert. (3) Draft new/revised legislation/amendments in support of the approved recommendations made by the expert under the Review of the Incentive Framework for Agriculture in Grenada. (4) Presentation(s) to stakeholders in order to validate the findings/recommendations of the consultancy and/or clarify any specific comments made on the outputs of the consultancy. (5) Presentations of the draft legislation to Cabinet (These presentations may be in person or may be developed by the contractual and presented to Cabinet by the appropriate Government authority). The contractual will be invited to attend an initial meeting with the Compete Caribbean and local project teams soon after the signing of the contract with the Bank. Every report must be submitted to the Bank in an electronic file. The report should include cover, main document, and all annexes. Payment Schedule Payments will be made in three lump sums as follows: 4

5 20% on contract signing; 30% on the acceptance and approval of the Draft Legislation under Deliverable 2. 30% on the acceptance and approval of the Draft Legislation under Deliverable 3. 10% following the presentation of the Draft Legislation to Cabinet (Deliverable 2) 10% following the presentation of the Draft Legislation to Cabinet (Deliverable 3) Qualifications The Contractual should have: An advanced degree in law and a comprehensive understanding of Grenada s constitution and the laws of Grenada At least 10 years working experience in drafting legislation and amendments at national levels. A familiarity with the legislative framework to support improved governance and control of cooperative associations. At least five years experience drafting and tabling legislation and a strong understanding of the respective roles of Parliamentary processes and the specific processes associated with revising/modifying Bills and Acts of Parliament Proven track record in the definition, discussion, and negotiation of competitiveness projects with a wide range of counterpart organizations is desired. Experience working with Cooperatives in the Caribbean is desired. Computer literacy and familiarity with standard office software is required. Characteristics of the Consultancy Consultancy Category & Modality: Products and Services (PEC) Lump Sum Duration: From October 2015 until Feb 2016 Work Location: External consultancy Travel: Maximum of 3 trips to Grenada approximately five days each Coordination The technical and administrative responsibilities of this consultancy will be coordinated by Alejandro Escobar, Senior Specialist, Multi lateral Investment Fund. Administrative responsibility of this consultancy will be coordinated by Michael P. Hennessey, Operations Senior Associate (IFD/CTI and Compete Caribbean s Operations Coordinator). The day to day technical coordination of the consultancy 5

6 will be the responsibility of the Ministry of Agriculture, Lands, Forestry, Fisheries and the Environment in Grenada. Payment and Conditions: Compensation will be determined in accordance with Bank s policies and procedures. In addition, candidates must be citizens of an IDB member country. Consanguinity: Pursuant to applicable Bank policy, candidates with relatives (including the fourth degree of consanguinity and the second degree of affinity, including spouse) working for the Bank as staff members or Complementary Workforce contractual, will not be eligible to provide services for the Bank. Diversity: The Bank is committed to diversity and inclusion and to providing equal opportunities to all candidates. We embrace diversity on the basis of gender, age, education, national origin, ethnic origin, race, disability, sexual orientation, religion, and HIV/AIDs status. We encourage women, Afrodescendants and persons of indigenous origins to apply. 6

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