Bosnia & Herzegovina - MI BOSPO – Institution Building Corporate Governance and Marketing Support

Location:

Bosnia and Herzegovina

Business sector:

Non-bank financial institutions

Funding source:

Western Balkans Multi Donor Fund

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

05 Dec 2014

Closing date:

09 Jan 2015   at  14:00   Sarajevo

Assignement Description:
In June 2013, the European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) extended a third loan to the microcredit foundation MI-BOSPO in the amount of EUR 3 million for on-lending to micro and small business under the Bank’s Micro, Small and Medium Enterprise (“MSME”) Finance Framework for Western Balkans  The Framework is designed to support the Western Balkan countries in their transition to a market economy by strengthening the financial system and increasing MSEs access to finance via the non-bank MFI and leasing sectors, thereby enabling the MSEs to increase production and employment.

BOSPO was founded by the Danish Refugee Council, DRC, in 1995, after the war in Bosnia and Herzegovina. BOSPO implemented a psychosocial assistance project to the displaced population, predominantly women/mothers, children and the aged. BOSPO launched a microcredit program in 1996. In 2000, as required by the law, BOSPO established the Microcredit Organization MI-BOSPO in Tuzla as an independent legal entity. Its mission was to provide women access to credit and cash and to support them in maintaining and developing their economic activity. Within approximately two years of post war activities, 70% of loan recipients were displaced women.  In line with additional changes in the law, the microcredit organization MI-BOSPO was re-registered into a microcredit foundation in April 2008.

Today, MI-BOSPO is a non-banking microfinance institution that provides loans to micro and small businesses in rural and urban parts of the country. The ongoing MI-BOSPO mission is providing long-term access to financial services for low income women.  Its portfolio is mostly distributed amongst the following sectors:  agriculture 21%, services 9%, small production 3%, trade 7% and secondary loans 21%. It has one of the largest coverages of North-East Bosnia and Herzegovina through its 12 branch offices and 24 offices serviced by 78 loan officers.

In order to further strengthen its institutional and operational capacity, MI-BOSPO wishes to engage an experienced consultant (the “Consultant”) who will undertake the following tasks:
  • Review the operation of MI-BOSPO’s existing corporate governance arrangements and provide recommendations based on  best practice examples and strategy orientation.
  • Review the branding and visual identity of MI-BOSPO and its products o versus mission and social performance management as well as profitability and provide recommendations on how to improve serving its clients, especially women, and measure the impact of its marketing and promotional campaigns;
  • Assess the existing range of products offered to local  enterprises and propose recommendations how to optimise MI-BOSPO’s comparative advantage in a range of potential new products (including use of modern technology and/or strategic partners/alliances);
  • Review current policies and procedures and provide recommendations for strengthening the HR function.
  • Ensure the sustainability of technical co-operation interventions by building the internal capacities of MI-BOSPO in the aforementioned areas through seminars and on-the-job training.
The assignment is expected to contribute to the strengthening of MI-BOSPO’s current capacity and opportunities and assist in the necessary development and growth of the institution.
 
Assignment Start Date and Duration: This assignment is expected to commence in March 2015 with a duration of approximately one year until March 2016.  
 
Maximum Budget available for the Assignment: EUR 92,000; Exclusive of VAT.
The assignment may be extended, subject to availability of funding, excellent performance of the selected Consultant and the specific needs. 

The Consultant must determine whether any indirect taxes/VAT are chargeable on the proposed services and state the basis for such determination in their response to this notification. If any indirect taxes/VAT are payable, the Client will have to pay indirect taxes/VAT element of the services directly to the consultant/s unless otherwise agreed
 
Funding Source: It is anticipated that the contract will be financed through the Western Balkans Multi Donor Fund.  Selection and contracting is subject to the availability of funding.
 
Eligibility: There are no eligibility restrictions.
 
Consultant Profile: Corporate services are sought. The Consultant is expected to be a firm or a group of firms with relevant experience in commercial banking, MSE, and rural finance in transition countries as well as in change management. The Consultant should demonstrate the following competencies:
  • A solid track record in providing advisory services in banking and financial aspects to a variety of financial institutions preferably in transition economies;
  • Experience in corporate governance best practice, evolution of governance structures from the legal and commercial point of view;
  • Experience in a professional microfinance or small and medium-sized enterprise finance environment, including excellent knowledge of best practice, individual microfinance lending methodologies;
  • Experience in marketing – positioning, segmentation, product development (profitability measures), social performance indicators – putting clients in the centre;
  • Experience in training and coaching credit, marketing and HR staff and developing training programs;
  • Experience of working with financial intermediaries that have transformed from non-bank microfinance institutions into a commercial company or commercial bank would be an advantage;
  • Local language skills would be an advantage;
  • Expertise in marketing and technology introduction (product / branding);
  • Experience in Human Resource.
It is expected that the Consultant’s team of key experts will consist of:
  • Key Expert 1: Corporate Governance Expert with practical experience in advising non-bank microfinance institutions on the adequacy of corporate governance in a non-bank microfinance institution.  
  • Key Expert 2: Marketing and Product Development Expert with project experience related to the implementation of marketing and sales in non-bank microfinance institutions to advising them on the factors contributing to successful product development or refinement based on market forces and strategic goals.
  • Key Expert 3:  Human Resources Expert with practical experience in helping non-bank microfinance institutions develop optimal human capacity to support its operations and goals including change management, innovation and human-centred design.
Submission Requirements: In order to determine the capability and experience of consulting firms seeking to be selected, the information submitted should include the following:
(a) brief overview of the firm/group of firms including company profile, organisation and staffing;
 
(b) details of similar experience of firm or group of firms and related assignments particularly 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.
Evaluation of the Expressions of Interest will be based on the following criteria and their respective weightings:
  1. Firm's experience in the microfinance sector, including development and marketing of financial products - 25%
  2. Firm’s experience in change management (corporate governance, HR, training) - 25%
  3. Firm's experience working in the region - 10%
  4. CVs of key experts with relevant experience as per above - 40%.
Submission Requirements: Expressions of interest (EOI), in response to the notification are to be submitted in English, by email, preferably as one file not exceeding 2MB and clearly labelled "Expression of Interest for MI-BOSPO – Institution Building Corporate Governance and Marketing Support, to the Executing Agency's contact person given below no later than the closing date/time.  The EOI should be accompanied by completed Consultant Declaration Form and Contact Sheet, the template for which is available from the following web-link:
The above information should not exceed 20 pages excluding CVs and the Consultant’s Declaration and Contact Sheet.
 
Executing Agency: MI-BOSPO
 
The Executing Agency’s Contact Person: Nejira Nalić, Director
Address:  Bosne srebrene bb, 75000 Tuzla, Bosnia and Herzegovina
Tel: +387 35 304 630, Fax + 387 35 252 448
E-mail: nnalic@mi-bospo.org
 
A further copy, in English, shall be submitted, by e-mail, to the EBRD by the same date, addressed to the following contact person:
 
EBRD Contact: Yvonne Wilkinson
European Bank for Reconstruction and Development
One Exchange Square, London EC2A 2JN
Tel: +44 20 7338 7030, Fax: +44 20 7338 7451
wilkinsy@ebrd.com
 
Important Notes:
Selection will normally be made from responses to this notification only. Consultants will not be asked to submit a proposal. The highest-ranked Consultant will be selected from a shortlist and be invited to negotiate the contract, subject to confirmation of funding.