Small Business Initiative: Investment Preparation for EU4Business - Financial Services

Location:

Ukraine

Business sector:

Agribusiness, Telecoms, informatics and media, , Other, , , , Transport, , Sustainable Resources and Climate Change, , Natural resources, Power and energy

Project number:

65878

Funding source:

Not Yet Determined

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

02 Sep 2016

Closing date:

26 Sep 2016   at  23:59   London

Access eSelection

The Procurement Notice has been modified on 7 September 2016 - the changes are recorded in bold text.

Programme Description:

Small and medium-sized enterprises ("SMEs") constitute a significant share in the total legal entities in Ukraine. They make a considerable contribution to job creation and of a value added to the GDP. However, the SME segment in Ukraine has been facing structural problems. Since 2014 local banks have substantially reduced their lending appetite, as a result of which availability of debt and equity financing for SMEs has become extremely limited. At the same time Ukrainian SMEs lack understanding of the standards and procedures they would need to comply with the EU standards, and need to modernise their production processes and adopt new technologies and international best practice in order to compete successfully.

In light of the challenges facing Ukrainian SMEs, the European Bank for Reconstruction and Development ("EBRD" or the "Bank") seeks to enhance their competitiveness by providing access to advisory services covering a wide range of areas, by increasing their access to finance through improved bankability and by financing directly those SMEs that have the greatest growth potential (the "Programme").

The expected outcome of the Programme is that up to 50 SMEs in Ukraine will benefit from the EBRD's direct financing. Direct financing means loans and equity by EBRD to creditworthy company, ca. 10 SMEs/year to benefit from that, ca. 50 SMEs during duration of the whole Programme, ca. EUR 100 mln total financing to be provided to these 50 SMEs subject to acceptable financial due diligence and /or IFRS restatement, among others.

The EBRD now wishes to engage consultants to assist with the pipeline preparation, project origination and implementation activities as well as post-investment monitoring and assistance.

Framework Agreements for the Programme

The EBRD intends to enter into Framework Agreements with at least three consultants (the "Framework Consultants" or the "Consultants") to enable the Bank to call upon a shortlist of pre-qualified firms, from which it can quickly and efficiently obtain reliable services. The Framework Agreements will establish, in advance, fee rates for experts, contract terms and procedures that will govern individual assignments (the "Assignments" or "Call-offs") to be required to implement the Programme. Under these Framework Agreements, the Bank will have the option, but not the obligation, to place individual Assignments with the selected Framework Consultants.

The Framework Consultants will be selected for individual Assignments in accordance with EBRD's Procurement Policies and Rules (PPR). The Bank may send to the Framework Consultant(s) specific Terms of Reference for the Assignment (the "Specific ToR"). The Specific ToR will include a description of the tasks to be performed, time-schedules and reporting instructions. The Framework Consultant(s) should respond by sending to the Bank a technical and financial proposal for the Assignment together with details of the expert(s) proposed to carry out the work. The Bank will then assess the response(s) and – subject to successful negotiations - issue a call-off notice (the "Call-Off Notice") for the individual Assignment to the selected Framework Consultant.

Description of Individual Assignments (Call-offs)

Consultancy services for individual Assignments are expected to include but not be limited to the following:

1. Financial analysis of management accounts and financial management system, which would include among other tasks:

a. Reviewing financial statements of an SME

b. Identifying key variables for the financial performance of the SME

c. Highlighting deviations from local standards

d. Reviewing the terms of existing debts

e. Analysing receivables/payables

f. Assessing management information systems and management accountability procedures

g. Assessing the quality of financial management (including working capital)

.2. Preparation of restated financial statements in accordance with the International Financial Reporting Standards ("IFRS"):

a. Restating the accounts of an SME in accordance with IFRS, including preparing detailed notes

b. Providing training to the SME's accountants/financial managers on reporting in accordance with IFRS

Status of Selection Process: Interested firms or groups of firms are hereby invited to submit expressions of interest.

Programme Start Date and Duration: The Programme started in April 2016, and the Framework Consultants are needed to commence services as soon as the Framework Agreements are concluded. The selected Framework Consultants will be engaged via Framework Agreements with a validity period of up to four years.

Cost Estimate for the Programme and Assignments: The cost estimate for individual Assignments will vary depending on their specific scope, but individual budgets are expected to be up to EUR 75,000 (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 special status of the Bank 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 purchased 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: This Programme is expected to be funded by the European Union represented by the European Commission under the "EU4Business: Network of Business Centres in Ukraine" programme.

Eligibility: There are no eligibility restrictions.

Framework Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with relevant experience in all major areas of the financial services industry. The Consultant will have to have a relevant experience in Ukraine and/or in the region with similar financial requirements.The Consultant's experience in working with other IFIs would be an additional asset.

The Consultant's expert team is expected to include at least the following Key Experts:

a) Team Leader with preferably at least five years of previous professional experience in IFRS transformation and audit.

b) Senior Financial Expert with preferably at least four years of previous professional experience in IFRS transformation and audit.

c) Pool of additional Financial Experts with preferably at least two years of professional experience in IFRS transformation and audit.

The Consultant's team need to include experts with Ukrainian and/or Russian language skills.

Submission Requirements: In order to determine the capability and experience of Consultants seeking to be shortlisted for the Programme, the information submitted should include the following:

1. Company's/group of firms' profile, organisation and staffing.

2. Details of previous project experience or similar assignments, particularly undertaken in the past five years, including information on contract value, contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided (if different from duration), main activities and objectives.

3. CVs of Key Experts who could carry out the Assignments, detailing qualifications, experience in similar assignments, particularly assignments undertaken in the past 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.

4. Completed Consultant Declaration Form and Contact Sheet, the template for which is available from the following web-link:

http://www.ebrd.com/pages/workingwithus/procurement/notices/csu/contact_sheet.doc.

The above information should not exceed 15 pages excluding CVs and the Consultant Declaration Form and Contact Sheet.

Expressions of Interest should be submitted in English electronically through eSelection, to reach the Bank no later than the closing date. The complete expression of interest (including cover letter, CVs, Declaration and Contact Sheet etc.) shall be one file (pdf) to be uploaded to eSelection. The EBRD reserves the right to reject applications of experts submitting more than one file. Only if the permissible file size (4 MB) is exceeded, the Consultant may split the expression of interest into further files.

Bank Contact Person:

Elena Kolodiy

Technical Co-operation

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

Tel: + 44 20 7338 6765

e-mail: kolodiyo@ebrd.com (submissions should be sent through eSelection and NOT to this email address)

Notes:

1. Following this invitation for expressions of interest, a shortlist of qualified firms will be formally invited to submit proposals.

2. The evaluation criteria are:

a) Firm's relevant experience in financial analysis of companies, IFRS accounting and auditing – 30%

b) Firm’s experience in Ukraine and/or in the region with similar legal and financial requirements – 20%

c) Calibre of the Key Experts – 30%

d) Ukrainian and/or Russian language knowledge – 10%

e) Firm's previous experience in working with IFIs – 10%