Azerbaijan: Financial Intermediaries Capacity Building Technical Co-operation Programme

Location:

Azerbaijan

TCRS Number:

11535

Business sector:

Financial institutions

Notice type:

Public

Status:

Approved

PSD disclosed:

03 Jul 2019

Project Description

In 1995-2015, Azerbaijan was one of the fastest-growing economies globally with the real GDP rising sixfold on the back of abundant natural resources and rallying oil prices. However, the steep oil price drop in 2015 resulted in a host of countrywide operating challenges, including economic recession, significant Local Currency (LCY) devaluation, bringing the banking sector under severe stress. As a result, numerous banks came to face capital deficiency issues, leading to the liquidation of a number of banks in post-crisis period.

Despite the recent gradual recovery the financial and banking sector remains under pressure and experience difficulties in executing its full potential. In response to this, EBRD (“the Bank”) is planning to launch the Capacity Building Technical Co-operation (“TC”) Programme for selected financial institutions in the country (Participating Financial Institutions (“PFIs”). The ultimate objective of this TC package is to help existing and potential PFIs restore and strengthen their resilience and sustainability in the post-crisis environment via:

1) increasing efficiency and transparency of internal processes, including decision-making;
2) enhancing organisational structures and ability to deal with problem loans;
3) training of the local staff;
4) strengthening MSME lending capacity; and, as a result of all of the above
5) improving balance sheet structure and profitability.

The Programme envisages support to be provided to up to five PFIs in the country.

TC Services:
EBRD intends to engage consultants to assist Azerbaijan’s PFIs with capacity-building measures in six areas through the two interrelated pillars (assignments).    

The first assignment, titled “Strengthening PFI Resilience and Sustainability”, will cover five modules with preliminary composition outlined below:

1. Strategy and business planning;
2. Risk management enhancement;
3. NPL workout and  resolution;
4. IT function review;
5. Compliance.

The second assignment, titled “MSME Lending Capacity Building””, will provide support to PFIs with:

1. Development of MSME lending operations of individual PFIs, including design of an MSME lending methodology, implementation of an appropriate organisational structure;
2. Creation of a marketing strategy;
3. Training of local managers in MSME loan analysis, and
4. Setup of the MSME monitoring and recovery units.

The donor-funded Programme with the estimated budget of up  to EUR 2 million is expected to have a duration of two years, but may be extended in time subject to the pace of implementation. Two consultants will be selected for implementation of two assignments under the Programme.

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

Email: eSelection@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

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