Terms of Reference

Consultancy for Preparation of the Feasibility Study for the Albania Tourism Ecosystem Development Project

1. Background and Context

The Government of Albania, with support from the World Bank, is preparing the Albania Tourism Ecosystem Development Project. The proposed Project aims to support implementation of Albania’s National Tourism Strategy 2024–2030 by improving the competitiveness, sustainability, and service quality of tourism destinations, thereby contributing to more and better-paid jobs.

The Project would build on the experience of the Project for Integrated Urban and Tourism Development, which is closing in June 2026, and support Albania’s transition from rapid, volume-driven tourism growth toward a more integrated, higher-value, spatially balanced, and sustainable tourism model. It is expected to adopt a tourism ecosystem development approach that combines destination management, strategic prioritization of tourism clusters, selective infrastructure and asset upgrading, tourism MSME competitiveness, workforce skills development, and stronger public-private coordination.

The Project concept includes four broad areas: strengthening institutions and destination management to shape higher-value demand; developing integrated infrastructure and tourism assets in priority clusters; mobilizing private investment and strengthening MSME competitiveness and tourism workforce skills through a potential Tourism Fund; and supporting project management, coordination, fiduciary, environmental and social, monitoring, and communication functions.

The Project is expected to support Albania’s hub-and-spoke tourism development model by linking established tourism centers with surrounding rural areas, cultural and natural assets, agritourism opportunities, village stays, trails, and nature-based experiences. Initial geographic focus is expected to include the Inland South cluster, building on ADF’s Third Wave Concept, with additional potential clusters to be defined during project preparation based on investment readiness, development impact, and the agreed lending envelope.

The Albanian Development Fund is expected to serve as the main implementing agency, while the Ministry of Tourism, Culture and Sports will act as the main counterpart and provide overall strategic guidance. Close coordination will be maintained with the Ministry of Finance and other relevant sector institutions, including agencies responsible for tourism promotion, investment development, employment and skills, protected areas, and local governments in selected destinations.

Consulting Firm

A qualified consulting firm will be engaged to support the preparation of the Feasibility Study for the Albania Tourism Ecosystem Development Project. The consulting firm will be responsible for mobilizing the expertise required to prepare and deliver the Feasibility Study and all associated outputs in accordance with these Terms of Reference.

Consulting Firm

2. Objective of the Assignment

The objective of the assignment is to support the Government of Albania and the World Bank in preparing a complete Feasibility Study for the proposed Albania Tourism Ecosystem Development Project, in accordance with the requirements of VKM 877 dated 27.12.2022 and the domestic public investment approval process.

The consulting firm (herein after referred to as “The Consultant”) will be responsible for preparing and consolidating all required sections of the Feasibility Study, including the technical, institutional, environmental, social, implementation, cost, financial, economic, risk, sensitivity, sustainability, and feasibility conclusion sections. The consultant will draw on available diagnostics, Government strategies, stakeholder consultations, upstream pipeline assessment outputs, and targeted gap analysis, and will coordinate with the World Bank, Government counterparts, and specialized experts as needed.

The assignment will be undertaken by a consulting firm, which shall be responsible for preparing, coordinating, consolidating, and delivering the complete Feasibility Study.

The Consultant shall mobilize a team with the appropriate combination of expertise required to address the technical, institutional, implementation, financial, economic, environmental, social, sustainability, and risk-related aspects of the assignment.

The Consultant shall remain fully responsible for the quality, completeness, consistency, accuracy, and timely delivery of all outputs and deliverables under this assignment.

The Consultant shall designate a Team Leader who will serve as the primary focal point for communication and coordination with the Albanian Development Fund, the Ministry of Tourism, Culture and Sports and the Ministry of Finance.

Consulting Firm. The Feasibility Study will translate the Project concept and agreed preparation priorities into a structured, evidence-based document suitable for domestic project processing. It will articulate the Project rationale, preferred option, component logic, institutional arrangements, implementation readiness requirements, environmental and social considerations, financing and cost implications, key risks, and feasibility conclusions.

3. Scope of Work and Methodology

Under this assignment, the Consultant  will:

• Prepare the Feasibility Study for the proposed Albania Tourism Ecosystem Development Project in close coordination with the World Bank, the Ministry of Tourism, Culture and Sports, the Ministry of Finance, the Albanian Development Fund, the National Tourism Agency, the Albanian Investment Development Agency, the National Agency for Employment and Skills, local governments, and other relevant stakeholders. Coordinate the preparation process, compile available information, engage relevant counterparts, identify gaps, and prepare all required Feasibility Study outputs. The assignment should be carried out through an iterative and consultative process, with regular review meetings and progressive validation of key sections of the Feasibility Study. Ensure that the Feasibility Study reflects the agreed project preparation milestones, including the December 2026 approval of the Domestic Feasibility Study for inclusion in the National Single Project Pipeline, February 2027 implementation readiness review, and expected Board approval before the end of Quarter 3 (Q3) FY2027 (31 of March 2027)

The scope of work will be organized in three phases:

Phase 1: Inception and Scoping

The consultant will prepare an inception report confirming the methodology, work plan, data needs, consultation plan, and proposed structure of the Feasibility Study in line with VKM 877 dated 27.12.2022. The inception phase will confirm how the consultant will prepare each Feasibility Study section, identify required data and inputs, and establish the process for obtaining specialized contributions while retaining overall responsibility for the full Feasibility Study.

Phase 1 outputs

The inception report should include, at a minimum:

• A concise work plan, timeline, methodology, and quality assurance process for preparing the Feasibility Study.
• A mapping of VKM 877 requirements against available information from the National Tourism Strategy 2024–2030, existing diagnostics, upstream pipeline assessment outputs, planned analytical inputs, and sections to be completed by the consultant.
• A data collection and verification plan, including a list of critical data gaps and responsible parties.
• An annotated Feasibility Study outline based on VKM 877 dated 27.12.2022 and tailored to the Albania Tourism Ecosystem Development Project, including a timeline for preparing each section and identifying required inputs from Government and other counterparts’ experts.

2. Executive Summary
3. Analysis of the Existing Context
4. Project Needs and Objectives
5. Demand Analysis
6. Analysis of Options
7. Technical Studies
8. Final Project Object / Proposed Project Description
9. Project Costs and Implementation Plan
10. Financial Analysis
11. Economic Analysis
12. Environmental and Social Impacts
13. Implementation and Operational Sustainability
14. Risk Assessment and Sensitivity Analysis
15. Conclusions on Project Feasibility

Phase 2: Project Concept Note Preparation and Validation

• Prepare a concise Project Concept Note as an interim step toward the Draft Feasibility Study, setting out the project rationale, development objective, theory of change, proposed results, and alignment with Albania’s National Tourism Strategy 2024–2030.
• Use the Project Concept Note to confirm the project component structure to be elaborated in Phase 3, including institutions and destination management, integrated tourism infrastructure and asset upgrading, Tourism Fund-related MSME competitiveness, private investment and skills support, and project management and implementation arrangements.
• Define the preliminary geographic focus, investment logic, and options to be tested in Phase 3, including priority tourism clusters, the hub-and-spoke development approach, public and private investment linkages, and the relationship to upstream pipeline assessment outputs.
• Set out initial implementation arrangements and readiness assumptions to be developed further in the Feasibility Study, including institutional roles, coordination mechanisms, fiduciary considerations, environmental and social risk considerations, and sequencing of preparatory actions.
• Identify the Feasibility Study sections, analyses, data gaps, assumptions, options, and technical inputs to be completed in Phase 3, and provide a clear roadmap for moving from the Project Concept Note to the Draft Feasibility Study.

Phase 3: Draft and Final Feasibility Study

• Prepare a complete draft Feasibility Study consolidating the technical, institutional, implementation, environmental, social, risk, cost, sustainability, and coordination inputs required under VKM 877 dated 27.12.2022 for the Albania Tourism Ecosystem Development Project.
• Identify and clearly flag any remaining data gaps, assumptions, or specialized inputs required for completion of specific sections, while retaining responsibility for preparing and consolidating the full Feasibility Study.

4. Deliverables and Timeline

The Consultant will submit the deliverables listed below. All deliverables will be subject to review and written acceptance by ADF, in consultation with relevant Government counterparts.

Deliverable 1: Inception Report and Feasibility Study Work Plan

Due: Within three weeks of contract signing

• Confirmed methodology, work plan, timeline, and quality assurance process for preparing the Feasibility Study.
• Annotated Feasibility Study outline mapped against the sections required under VKM 877 dated 27.12.2022.
• Data request, consultation plan, stakeholder list, and identification of key information gaps.
• Initial mapping of how outputs from the upstream Tourism Investment Pipeline Assessment and Development assignment will be used as inputs for the Feasibility Study.
• Technical Input Plan identifying the specialized short-term expertise that might be required for specific sections of the Feasibility Study.

Deliverable 2: Project Concept Note

Due: Within eight weeks of contract signing

• Concise Project Concept Note setting out the project rationale, development objective, theory of change, proposed results, and alignment with Albania’s National Tourism Strategy 2024–2030.
• Proposed project component structure, including institutions and destination management, integrated tourism infrastructure and asset upgrading, Tourism Fund-related MSME competitiveness, private investment and skills support, and project management and implementation arrangements.
• Preliminary geographic focus and investment logic, including priority tourism clusters, hub-and-spoke development approach, public and private investment linkages, and relationship to upstream pipeline assessment outputs.
• Initial implementation arrangements, including proposed institutional roles, coordination mechanisms, fiduciary considerations, environmental and social risk considerations, and implementation readiness requirements.
• Summary of key issues requiring further analysis in the Feasibility Study, including data gaps, assumptions, options to be tested, and follow-up actions for the draft Feasibility Study.

Deliverable 3: Draft Feasibility Study

Due: Within sixteen weeks of contract signing

• Complete draft Feasibility Study covering all sections required under VKM 877 dated 27.12.2022.
• Draft executive summary, analysis of existing context, project needs and objectives, demand analysis, options analysis, technical studies, and proposed project description.
• Draft project cost estimates, implementation plan, financial analysis, economic analysis, environmental and social impacts, operational sustainability, risk assessment, sensitivity analysis, and feasibility conclusions.
• Draft analysis of implementation readiness requirements, including coordination arrangements among MoTCS, ADF, MoF, and other stakeholders; procurement and fiduciary considerations; environmental and social risk management requirements; and linkages with GFPP-financed preparatory activities.
• Annexes, data tables, consultation summaries, and supporting materials necessary for review by the World Bank and Government counterparts.
• Technical notes, calculations, models, maps, assumptions, and other supporting materials prepared by specialized experts and used in the Draft Feasibility Study.

Deliverable 4: Final Feasibility Study

Due: Within twenty weeks of contract signing

• Final Feasibility Study incorporating comments from the World Bank task team, Government counterparts, and relevant stakeholders.
• Finalized analysis, assumptions, conclusions, and annexes, with all sections internally consistent and aligned with VKM 877 requirements.
• Clear identification of the preferred project option, implementation arrangements, estimated costs, financing considerations, risks, mitigation measures, and feasibility conclusions.
• Final integration of project preparation priorities, including higher-value tourism, spatial rebalancing, hub-and-spoke cluster development, destination management reform, private capital mobilization, MSME upgrading, workforce skills development, and implementation readiness.
• Version suitable for submission to the relevant Albanian authorities as part of the domestic project preparation and approval process.
• Albanian-language version of the Final Feasibility Study, fully consistent with the accepted English version and suitable for submission to the relevant Albanian authorities as part of the domestic project preparation and approval process.

Deliverable 5: Summary Presentation and Handover Package

Due: Within twenty-two weeks of contract signing

• Concise presentation summarizing the Feasibility Study findings, project rationale, preferred option, implementation arrangements, cost and financing considerations, risks, and key decisions required.
• Handover package including final editable files, supporting annexes, data tables, consultation materials, and any additional documentation used to prepare the Feasibility Study.
• Short note summarizing remaining issues, assumptions, and recommended next steps for downstream project preparation, approval, and implementation readiness.

The assignment is expected to be carried out over a period of approximately twenty-two weeks from contract signing.

5. Reporting and Coordination

The Consultant will report to and be supervised by the Albanian Development Fund ADF. The Consultant will coordinate closely with the Ministry of Tourism, Culture and Sports, the Ministry of Finance, the Albanian Development Fund, and other relevant counterparts for data collection, consultations, review of draft outputs, and validation of the Feasibility Study.

The Consultant will participate, as requested, in project preparation discussions and review meetings related to GFPP follow-up, technical design review, and the domestic feasibility submission process. The Consultant will ensure that comments, guidance, and decisions from these discussions are reflected in the draft and final Feasibility Study.

The Consultant shall coordinate and supervise any specialized experts engaged under the assignment. Specialized experts shall communicate with ADF through, or with the knowledge of, the Consultant, unless otherwise requested by ADF.

Communication will take place through email, virtual and in-person meetings, and the submission of electronic versions of reports and supporting materials, unless otherwise agreed with the World Bank task team.

6. Consultant Qualifications. The consulting firm shall demonstrate:

Substantial experience in preparing feasibility studies, tourism development studies, destination management plans, regional development strategies, investment plans, or similar assignments.

Experience in tourism development, destination management, tourism infrastructure, private sector development, MSME competitiveness, workforce skills development, or related economic development sectors.

Experience in preparing or coordinating feasibility studies, project concept documents, investment plans, or technical inputs for government-funded or development partner-funded operations.

Experience in coordinating multidisciplinary assignments involving technical, institutional, financial, economic, environmental, and social aspects.

Capacity to consolidate inputs from multiple technical disciplines into coherent analytical and planning documents.

Familiarity with public investment planning requirements, feasibility study preparation, institutional analysis, implementation arrangements, costing methodologies, risk assessment, and environmental and social considerations.

Experience working with government institutions, international financial institutions, development partners, private sector stakeholders, and local governments.

Knowledge of Albania’s tourism sector, public investment system, institutional framework, or experience in comparable regional contexts will be considered an advantage.

7. Staffing and Level of Effort

The consulting firm shall determine and propose the level of effort and staffing inputs required to successfully complete the assignment and deliver all outputs described in these Terms of Reference. The proposed level of effort shall be commensurate with the scope, complexity, and timeline of the assignment.

Indicative Expertise

The consulting firm should demonstrate access to expertise in tourism development, destination management, economics and financial analysis, infrastructure and spatial planning, institutional development, environmental and social considerations, stakeholder engagement, and feasibility study preparation, as relevant to the assignment.

Key Experts

The Consulting firm shall propose a team commensurate with the scope and complexity of the assignment. The proposed team should collectively demonstrate expertise in tourism development, destination management, economics and financial analysis, infrastructure and spatial planning, institutional development, environmental and social considerations, stakeholder engagement, and feasibility study preparation.

The Team Leader should possess:

• An advanced university degree in a relevant field such as tourism development, urban or regional planning, economics, public policy, infrastructure planning, business administration, public administration, development studies, or a related discipline.
• At least ten (10) years of relevant professional experience in feasibility studies, investment planning, or similar assignments.
• Excellent written and spoken Albanian and English.

8. Contract price, Deliverables and Payments.

The assignment will be contracted on a lump-sum basis. The contract price shall be inclusive of the Consulting Firm’s remuneration, personnel costs, travel, translation, consultations, data acquisition, and any other expenses necessary to deliver the outputs specified in Section 4.

Payments will be made against written acceptance of the deliverables, in accordance with the following schedule: