FINCA Jordan – Strengthening of Institutional Capacities for Micro and Small Enterprises Lending

Procurement ref:

46377

Location:

Jordan

Business sector:

Financial institutions

Project number:

45531

Funding source:

Southern and Eastern Mediterranean Multi-Donor Account

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

06 Feb 2015

Closing date:

27 Feb 2015   at  11:42   Amman

The Executing Agency: FINCA Jordan
 
Assignment Description: FINCA Jordan (“FJ”) intends to engage a consultant (the "Consultant") to support a leading microfinance institution in the country, with strengthening its institutional capacities for efficient MSE lending (the "Assignment"). 
 
The microfinance industry remains an important provider of financing to smaller sized companies and individual entrepreneurs and the Bank is committed to support local microfinance institutions by providing long-term financing and technical assistance to improve their lending methodologies and increase their outreach.
 
Jordan depends heavily on micro and small businesses to drive its economy: 98% of Jordanian businesses are classified as micro, small and medium sized enterprises (“MSME”) and account for 70% of new jobs created in Jordan. Yet in terms of access to finance they remain vastly underserved.
 
FJ has traditionally focused on group lending, but now plans to lend to micro and small enterprises (“MSE”). This is a natural extension from their successful micro and group lending. The proposed assignment will help FJ strengthen their lending methodology, risk management and overall institutional capacities.
 
The Consultant will:
  1. Define and develop an end to end lending methodology for MSE loans distinct from its existing micro credit lending process;
  2. Train and coach specialized bank staff in MSE lending based on the new lending methodology;
  3. Bolster FJ’s internal control procedures  with increased management buy-in;
  4. Enhance performance measurement and reporting to maintain quality management discussions as FJ’s micro lending business grows and expands.
Assignment Duration: The assignment is expected to start in April 2015 and have an estimated overall duration of twelve (12) months.
 
Maximum budget Available for the Assignment: EUR 120,000; exclusive of VAT
The Consultant must determine whether any indirect taxes/VAT are chargeable on the proposed services and state the basis for such. If any indirect taxes/VAT are payable, the Client will have to pay indirect taxes/VAT element to the services directly to the Consultant unless otherwise agreed.
 
Funding Source: It is anticipated that the contract will be financed through the EBRD’s donor funded Southern and Eastern Mediterranean Multi-Donor Account.

Eligibility: There are no eligibility restrictions; however, consultant selection and contracting will be subject to availability of funding.
 
Consultant Profile: Corporate services are required.
The consultant will be a firm or consortium of firms providing experts with relevant experience and professional qualifications in commercial banking and microfinance in transition or preferably Middle Eastern countries. The firm should have extensive relevant experience in developing MSE lending operations in banks and microfinance institutions (“MFI”), as well as experience in conducting training courses for bank or MFI staff, and have previous experience with similar projects.
The Consultant should have a solid functional experience in all areas set out in the scope of the assignment (MSE lending methodology and implementation, training, internal control, performance measurement) and a track record in the practical implementation of respective tasks. Knowledge of the Jordanian financial sector and the MSME finance situation will be an advantage.
The consultant’s team is expected to comprise at a minimum of the following types of experts:
  • Key Expert No. 1: Project Manager (PM) with proven track record in successfully leading the development and implementation of MSME strategy, MSME lending methodologies and business processes (including MIS).  The PM should have significant professional experience (10 years or more) in managing similar assignments in transition or preferably Middle Eastern countries; Excellent communication, training, and presentation skills.
  • Key Expert No. 2: Senior MSME Lending Expert with project experience related to MSME lending; Significant professional experience in MSME lending in a non-bank microfinance  and/or a consultancy firm in a similar region; Excellent management skills, experience in hiring and training of staff.
  • Key Expert No. 3: Risk Management Expert with a proven track record in making recommendations to non-bank microfinance institutions in the areas of risk management, internal control and credit scoring and helping non-bank microfinance institutions implement them.
All experts should ideally have approximately five (5) or more years of practical experience in the field of their expertise, unless specified differently. All experts must be fluent in English, bi-lingual (Arabic/English) experts may be required for specific tasks.
 
Submission Requirements: In order to determine the capability and experience of consulting firm, the information submitted should include the following:

a) Brief overview of the firm/group of firms including company profile, organization and staffing;
b) Details of previous project experience of firm or group of firms and related assignments undertaken in the previous five years, including information on contract value, contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided , assignment budget, percentage carried out by consultant in case of association of firms or subcontracting, main activities, objectives;
c) CVs of key experts who could carry out the Assignment detailing qualifications, experience in similar assignments (particularly assignments undertaken in the previous five years), including information on contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided, assignment budget, main activities, objectives;
d) Completed Consultant Declaration Form and Contact Sheet, the template for which is available at: http://www.ebrd.com/pages/workingwithus/procurement/notices/csu/contact_sheet.doc .
The above information should not exceed 20 pages, excluding CVs and Consultant Declaration Form and Contact Sheet.

The complete expression of interest (including CVs, Contact Sheet, Declaration Form) are to be submitted in English, by e-mail, preferable as one file (pdf or Word), not exceeding 2MB, clearly labelled “Expression of Interest for FINCA Jordan: Strengthening of Institutional Capacities for Micro and Small Enterprises Lending”, to the Executing Agency’s contact person given below with a copy to EBRD no later than the closing date.
 
Executing Agency: FINCA Jordan
The Executing Agency’s Contact Person: John Yancura, Chief Executive Officer
Address:  Al-Farid Building, 3rd Floor, Al-Abdali, Amman, P.O. Box 926939, Amman 11190, Jordan
Tel: +962-6-5664627    
E-mail: john.yancura@finca.org

The EBRD's Contact Person:
Larissa Gosling
Address: One Exchange Square, London, EC2A 2JN
Tel: +44 207 338 6338
Email: goslingL@ebrd.com   
Important Notes:
1. Consultant selection will normally be made from responses to this notification. Only the highest-ranked consultant selected from a shortlist of qualified consultant will be invited to prepare a proposal and negotiate the contract, subject to availability of funding.
2. The evaluation criteria are as follows:
- Consultancy firm(s)’ previous experience in the field of assisting banks with development of MSME business and marketing strategies, strengthening credit and risk management (30%)
- Firm(s)’ experience in the developed and emerging markets (20%)
- CVs of key experts (50%)