Terms of Reference
Consultancy service Developing and Piloting the Payment for Environmental Services Framework
Location Palu, Sigi district, Central Sulawesi
Duration 7 (seven) months
Expected starting date 04 October 2025
1. About SNV
SNV is a global development partner rooted in the African and Asian countries where we operate. With 60 years of experience and a team of approximately 1,600 people, it is our mission to strengthen capacities and catalyse partnerships that transform the agri-food, energy, and water systems to enable sustainable and more equitable lives for all.
2. Background and objectives of assignment
The Sustainable Agriculture for Forest Ecosystem (SAFE) project is a joint agenda between the Directorate of Food and Agriculture-Bappenas and GIZ. The project is supported by funding from the German Federal Government and the European Union. The main objective of the SAFE project is to contribute to the "inclusive transition of agricultural commodity production towards sustainable supply chains, for Indonesian smallholders"
In the implementation of the SAFE project in Central Sulawesi, GIZ has signed a collaboration with a consortium consisting of SNV, GCB and Mondelez, which implement the project in the Sigi area, namely SCORES (Sustainable Cocoa for Forest Ecosystems). The SAFE SCORES project aims to produce cocoa sustainably while preserving the ecosystem in adjacent rainforest areas. It will enable cocoa buyers to source from traceable and more reliable (deforestation-free) producing areas, securing their access to the EU market. Smallholder cocoa farmers will receive higher and diversified incomes from cocoa agroforestry, including incentives for protecting tree coverage in cocoa-forest conjunction areas, reforestation, and other environmental risk mitigation actions. Higher income will convince them to stay in cocoa production in the long run.
One of the project's main components is to establish a robust and sustainable incentive mechanism system that drives long-term commitment to reforestation and ecosystem conservation. To achieve this, we will first undertake a comprehensive assessment of current reforestation initiatives, identifying successful approaches, key challenges, and potential areas for improvement.
Building on these findings, the project will design and pilot an integrated incentive model that combines Payment for Environmental Services (PES) with local funding sources. This model is intended not only to provide direct rewards to stakeholders engaged in conservation activities but also to ensure financial self-reliance and continuity beyond the project’s lifetime. To achieve this objective, SNV is seeking to hire a consultant (individual or team) to carry out an assessment and pilot a PES initiative within the project area.
3. Assignment overview and scope of work / deliverables
The overall objective of this task is to produce a framework for the design and implementation of a pilot PES scheme in the Sigi district. The deliverables will involve a series of activities organized into four key areas that are essential for the successful implementation of the project:
- Conduct Assessment of various Payment Environmental Services (PES) mechanisms
- Conduct a literature review on existing PES schemes at local levels (district and provincial levels).
- Identify potential PES scheme assessment that align with local context and program objectives
- Map stakeholders (service providers, users, regulators, intermediaries), and Identifying institutions that can act as facilitators for PES, with the role of connecting and aligning viable PES scheme options
- Analyze policy and regulatory frameworks affecting PES implementation.
2. Develop technical guidance of PES mechanism in Collaboration with Local Authorities and Relevant Stakeholders
- Facilitate multi-stakeholder consultations and workshops.
- Determine the legal framework for PES initiative and align PES mechanism design with local regulations and environmental policies
- Develop step-by-step instructions for the PES mechanism, including defining clear roles, responsibilities, and benefit-sharing arrangements, and establishing transparent monitoring and reporting protocols.
3. Establish Communication Materials (Support Role) to raise awareness of agroforestry's importance and benefits, incorporating with the PES roll-out.
- Provide support in developing draft educational materials such as fact sheets, brochures, posters and infographics relevant to the PES model and implementation
- Provide information, data, and visual examples to enhance credibility on the communication materials
- Implement a workshop to build the commitment of companies with the potential to become users of environmental services.
4. Pilot a PES model featuring an integrated and collective incentive system, with participation from at least five farmer groups (~400 farmers) who actively engage in and benefit from the initiative.
- Select pilot sites and PES service provider based on environmental value and community readiness.
- Co-create incentive schemes with community input (cash, inputs, technical support) and integrate with agroforestry and regenerative farming activities.
- Set-up and implement participatory monitoring and evaluation for the PES initiative
5. Produce a final report that documents the complete process, achievements, challenges, and lessons learned from the PES initiative, providing a reference for future replication and scale-up
Table 1: List of deliverables, outputs, and quality expectations
4. Evaluation criteria
The award of the contract shall be made to the consultant who has received the highest score out of pre-determined technical and financial criteria specific to the solicitation as follows:
5. Contract project fees and duration
The expected duration of the assignment is eight (8) months, from October 2025 until May 2026
6. Payment terms
The financial proposal (RFQ) must clearly outline the proposed payment terms, including specific deadlines for each deliverable. Please note that SNV reserves the right to seek clarification and conduct negotiations with candidates.
7. Qualification Requirements
The individual or consulting team must meet the following requirements:
- The individual or team member possesses a degree in environmental science, natural resource management, forestry, agricultural economics, environmental policy or a related discipline.
- At least 10 years of work experience in developing frameworks, strategies, and implementing the Payment Environmental Services initiative, preferably in Indonesia
- Proven experience in designing, implementing, or evaluating Payment for Environmental Services (PES) schemes, preferably in forestry, watershed management or agroforestry contexts.
- Proficiency in socio-economic analysis, policy review, and legal framework assessments related to PES.
- Prior experience working with government agencies, private sector actors, local communities, and international development organizations.
- Strong understanding of ecosystem service valuation methods, environmental economics, and incentive-based conservation approaches.
- Knowledge of EUDR (EU Deforestation Regulation) compliance requirements and relevant international frameworks.
- Demonstrated skills in stakeholder engagement, multi-stakeholder coordination, and participatory planning processes.
8. Due diligence instructions
Selected consultant engaged under this assignment are required to comply with SNV’s internal policies, donor requirements, and international standards of integrity, sustainability, and accountability.
Specifically, compliance with SNV Policies: Adherence to SNV’s Code of Conduct, safeguarding policy, and integrity standards (zero tolerance for fraud, corruption, child labour, gender-based violence, and discrimination).
9. How to Apply
If you believe your qualifications match the outlined profile, we invite you to submit a comprehensive proposal no later than 17th September 2025 to the following email address: indonesia-procurement@snv.org with Subject “PR202 Develop-Piloting PES Framework-BidProposal”
Your submission should include the following documents:
- CV or Company Profile
(for individual consultant or team) - Technical and Financial (RFQ) Proposals
- Technical Proposal should include:
• Proposed methodology and approach
• Implementation plan and timeline - Financial Proposal (RFQ) should include a breakdown of:
• Professional fees (including roles and number of personnel involved)
• Travel and accommodation costs (if applicable)
• Costs for meetings, workshops, or advocacy activities
• Any other relevant costs (please specify) - Sample of Previous Work
Preferably a similar assignment or assessment related to PES or environmental policy frameworks. - List of Relevant Past Assignments
Please include detailed descriptions and timelines of similar projects you or your organization have implemented.
You can access the shared folder containing the Terms of Reference (TOR) and Request for Quotation (RFQ) for this consultancy service via the following link:
https://bit.ly/InfoService-Develop_PES_Framework
10. Aanwijzing
SNV has scheduled a half-day clarification session (“Aanwijzing”) for interested individuals or consulting teams (bidders/applicants) on Wednesday, 10 September 2025, from 08:00 to 11:00 AM.
Bidders/applicants may also submit their questions in advance by email to indonesia-procurement@snv.org with the subject line: “PR202 Develop-Piloting PES Framework – Aanwijzing”.
All questions received will be compiled, and SNV will provide responses to all bidders via email on the following day.
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