Procurement notice

Assignment Description (*see also clarifications at the end of this Notice)

The European Bank for Reconstruction and Development ("EBRD") is increasingly engaging with non-profit Non-Bank Microfinance Institutions ("NBMFIs") that are transforming or plan to transform into commercial for-profit entities.

The EBRD supports approximately 20 NBMFIs with financial products and technical assistance in its countries of operations. The market has evolved rapidly and several institutions can now rival banks and other financial institutions in terms of assets and profitability.

These NBMFIs often have a non-profit legal status, with often unclear ownership structure and with a formal/informal restriction to distribute their earnings. Some of these institutions have also been founded as part of Non-Governmental Organisations ("NGOs") networks and/or have benefited from the support of international donors and other public-funded institutions.

This assignment will focus on those NBMFIs that have a non-profit legal status; they are less regulated and in a less stringent way but are constrained in their product range and product characteristics, especially relating to deposit mobilisation. To overcome such obstacles as well as for other strategic reasons, several of these non-profit NBMFIs have started or aim to transform into commercial, shareholding companies with clear ownership structures that will allow them to distribute dividends to their owners and which will enable them to attract additional capital from investors thereby providing a strong platform for future growth. This process is complex and will inevitably lead to changes of the ownership structures of non-profit NBMFIs. The process and its results could represent reputation or operational risks for the EBRD. This project will provide information and recommendations which will enable ERBD to identify and mitigate these risks.

The assignment will consist of two stages. The first stage is a desk review of completed transformation experiences globally as well as in the EBRD?s countries of operations. The second stage will elaborate on the results of the first by obtaining information about the on-going transformation of approximately 5-8 selected NBMFIs as well as those that are planning to transform where EBRD envisages to participate with equity investments.

Assignment Duration: It is anticipated that the assignment will start in June 2008 and last for a period of up to 4 months.

Maximum Budget Available for the Assignment: EUR 65,000; exclusive of VAT.

The consultant must determine whether any VAT would be chargeable on the services and the basis for that determination, without taking into consideration the Bank's special status as an IFI and state this to the Bank in their response to the Invitation for Expressions of Interest. To the extent that a consultant incurs input VAT on goods and services purhcased in connection with the provision of services (e.g. VAT on airline ticket) which is not otherwise recoverable by the consultant from the local tax authority, the gross cost to the consultant of such expenses shall be treated as a reimbursable expense.

Funding Source: It is anticipated that the contract will be financed through "German Federal Ministry of Economics and Technology, Germany-EBRD Technical Cooperation Fund II ".

Eligibility: Firms must be registered in the Federal Republic of Germany. Experts must be citizens of the Federal Republic of Germany or employees of consulting firms registered in the Federal Republic of Germany. Local consultants from EBRD's countries of operations, either individual or through a firm may be sub-contracted by eligible German consultants. The amount used for the financing of such local consultants shall not exceed 20% of the total Contribution.

Consultant Profile:

The consultant should have the following experience and expertise:
(a) Relevant legal, fiscal and business experience to evaluate all the different aspects involved in the study
(b) A proven track record in analysing or working in NBMFIs or financial institutions at a senior level, with experience in analysing or working in the transformation of NBMFIs being a strong advantage;
(c) Ability to diagnose and propose recommendations on the areas related to the transformation process of NBMFIs, inter alia: (-) Operational, legal and fiscal issues related to the dissolution of foundations or NGOs and the establishment of commercial legal structures; (-) Corporate governance challenges and best practices of NBMFIs; (-) Best practices in microfinance legal frameworks.

Given the sensitivity of the assignment in terms of client relationships and expectations of EBRD involvement, the consultant should not have a direct association with a particular investor, to which it could be associated.

Submission Requirements: Interested consultants are hereby invited to submit expressions of interest.
In order to determine the qualifications and competence of consulting firms seeking to be shortlisted, the information submitted should include the following:
- company profile, organisation and staffing;
- details of experience or similar assignments undertaken in the previous five years, including their locations;
- CVs of staff who could be available to work on the assignment.

The above information should not exceed 10 pages excluding CVs.

Expressions of Interest should be submitted, in English, electronically through eSelection.

EBRD contact person: Mr Andrea Baldan
Telephone number: +44 207 338 7307
E-mail: baldana@ebrd.com

Note: Selection and contracting will normally be made from responses to this notification. The consultant will be selected from a shortlist, subject to availability of funding (from an appropriate donor - dependent on whether or not donor has approved funding).

* Clarifications in response to requests:
- The assignment is structured so that the 2nd stage builds on the findings of the 1st stage. The EBRD will provide contact information and documents to facilitate the 1st stage but it is expected that the desk review is mainly driven by the consultants? own research including communication with experts, key staff in the different stakeholders of NBMFIs and central banks. The 2nd stage is expected to include in situ research so that deeper insights can be gained through interviews with key actors in the field. A preparatory desk research is assumed to be needed and the EBRD will also provide contact information and documentation to facilitate meetings. Depending on the findings of the 1st stage, some of these visits can also be bundled so that the consultant can visit more than one institution in one country.