TERMS OF REFERENCE
FOR
Provision of Service for Technical Study on Slaughterhouse By-Products Utilization and Treatment
Output#1
UNIDO is a specialized agency of the United Nations to promote industrial development for poverty reduction, inclusive globalization and environmental sustainability. In this regard, along with the FDRE Ministry of Trade and Industry as a counterpart, UNIDO is implementing a Leather Initiative for Sustainable Employment Creation (UNIDO-LISEC), financed by the EU Emergency Trust Fund (EUTF). This initiative aims to contribute in the reduction of the irregular migration of people from Ethiopia by creating greater economic and employment opportunities especially for young women and men through enhancing the development of the Ethiopian leather sector along the value chain.
UNIDO-LISEC applies an implementation modality called Program for Country Partnership (PCP) which anticipates the engagement of the beneficiary country, in this case Ethiopia, in general and the relevant stakeholders in particular.
2. Background of the specific assignment
As stated above, UNIDO is directly responsible for executing the UNIDO-LISEC Initiative. This initiative anticipates to realize the following three outputs along the leather value chain.
Output 1: Improve quality and quantity of raw H&S (including improving training and awareness raising framework, raw H&S marketing regulatory framework and grading system, supporting or providing with quality enhancing tools and equipment for selected beneficiaries and recommending them to implement restructuring good practices).
Output 2: Support tanneries (processing and producing finished leather) towards integration into the leather global value chain through competitiveness gains/environmental compliance, including the creation of a LIDI Regional Center.
Output 3: Promote investments in/around Modjo Leather City (including MSMEs clusters) for both domestic and foreign companies.
As part of Output 1 package of activities, a technical and economic feasibility study on slaughterhouses’ by-products utilization and treatment is anticipated, in the outset.
The current global business setup in the slaughterhouses is very competitive; through the inclusion of other revenue streams by commercializing by-products which would enable higher profitability. In this case, the objective of the study is to identify commercial uses of slaughterhouse by-products and possible markets (e.g., for energy generation, for organic fertilizer production, for animal feeds, for detergent industry and/or glue and capsule production). On the way, it will contribute to the reduction of carbon footprint in the meat value chain. The study shall identify technically, economically and socially feasible recommendations in line with global best practices. The feasibility study document shall be used to promote the establishment of an integrated by-product rendering and utilizing plant by the slaughterhouses themselves or independently by young and women entrepreneurs. To realize this, the assignment shall be subcontracted to a competent consultancy firm or consortium of experts.
3. Purpose of the by-products utilization feasibility study
The purpose of conducting the anticipated study is to generate a technically and financially feasible document that will help to establish slaughterhouses by-production utilization rendering plants so that the slaughterhouses can harness and enhance their business or young and women entrepreneurs can use this opportunity to establish new feasible start-ups. On the other hand, the purpose of hiring a competent subcontracting firm or consortium of experts is to conduct technical and economic feasibility of slaughterhouses’ by-products utilization and treatment based on the scope of the work detailed below.
4. Scope of the technical study for the slaughterhouses’ by-products utilization and treatment
The anticipated technical study on slaughterhouses by-products utilization and treatment will focus on the geographic areas of East Shoa Zone of Oromia including Modjo, Adama, Bishoftu and Dukem as well as Addis Ababa and its outskirts. In terms of activity scope, the assignment to the potential subcontracting firm or to the consortium of experts in the field shall include benchmarking of at least three international facilities that have commercialised slaughterhouse by-product utilisation and treatment through desk research. Specifically, the feasibility study shall consist of identifying and characterizing slaughterhouses’ by-products (from cattle and sheep/goat) in Ethiopian cultural context, estimating annual volumes of by-products generated by selected 6 slaughterhouses, assessing their current knowhow of by-products rendering and economic value-addition practices, assessing the current market of the rendered or green by-products, the treatment practices of unused by-products, the current environmental and safety load of the by-products generated from the slaughterhouse and the skill level of supervisors and operators of the existing rendering plants. On the other hand, the study seeks to be conducted based on the international references and the local legal frameworks required or applied; without compromising local and global ethical, safety and environmental requirements. Finally, the feasibility study document of the by-products utilization and treatment, as a major deliverable, should incorporate separate recommendations of the technical feasibility with well-defined technical process design, selected equipment and tools, business administration and skills required for each identified saleable products from different by-products and financial feasibility indicated by cash flow, income statement, NPV, PB, sensitivity analysis for each selected product or integrated rendering units. All activities including the submission of the final study document endorsed by the TWG and the PSC of the initiative shall be accomplished in 110 working days.
5. Approach or methodology
Generally, the feasibility study approach is to follow a holistic processed-based or mass-balance approach to characterize and quantify all by-product items that can be used as inputs for the intended rendering plants. Then, the technical and financial feasibility studies, starting from the demand side, shall be holistically approached; incorporating all the required significant factors of production and implied costs and the current market prices of the intended products along with the legal and quality requirements. Relevant current cost and market price parameters are expected to be collected verifiably from trusted institutions, with survey type approach using standardized questionnaire or checklist. It is anticipated to follow the generally accepted technical and financial feasibility study approach; in direct contrast with best practices available. In fact, the specific approach to be followed by the contending subcontracting firm or consortium of experts should be clearly and explicitly addressed in the application proposal or in the inception report expected. Analysis results should be depicted with appropriates pictures, tables, formulas, charts, graphs etc. along with appropriate technical descriptions. The study shall strictly adhere to best practice norms and ethical collection of data which should be accurate, reliable and based on informed consent.
You can get Full description of the ToR from the link below
TOR_01-03_Slaughterhouse By-product Utilization.pdf
Minimum Qualification and Experiences Required