Uzbekistan: Financial Intermediaries Capacity Building TC Programme

Description

Country:

Uzbekistan

Business sector:

Financial institutions

Project number:

70053

Funding source:

TC

Contract type:

Consultancy Services

Notice type:

Invitation for expressions of interest (CSU)

Issue date:

26 Jul 2017

Closing date:

01 Sep 2017 at 17:00 London

Access eSelection

Project Description: The proposed Technical Cooperation Programme (the “Programme”) supports the European Bank for Reconstruction and Development’s (the “Bank” or “EBRD”) re-engagement with the financial sector in Uzbekistan. This TC Programme will complement EBRD’s investment transactions with up to ten EBRD partner financial institutions (“PFIs”) in the country. The main objectives of the Programme can be broken down into two categories:

1) Near-term objectives:

• PFIs are supported in the implementation of targeted MSME lending programmes by assessing the existing potential and building capacity for the new or improved lending operations based on sound banking principles;

• Risk management framework is strengthened allowing PFIs to operate independent, business-minded control systems with the prime objective to contribute to the sustainability of risk adjusted returns;

• Appropriate MIS systems are in place to enable PFIs to report to EBRD in line with EBRD requirements.

2) Longer-term objectives:

• Appropriate institutional foundations are put in place to enable PFIs to grow sustainably and achieve their business objectives;

• PFIs are assisted in strategic planning business plan preparation and implementation of the same;

• All key operational areas are developed and strengthened paying particular attention to the application of the prudent banking and good corporate governance principles.

A tailored programme will be designed to address specific risks and concerns facing each individual PFI.

Assignment Description:

The Bank now intends to enter into a Framework Contract with one (1) consultant (Framework Consultant or Consultant) to assist the Uzbek PFIs to enhance their institutional capacities in implementation of sound banking principles, a comprehensive risk management framework and best practice corporate governance structures. It will also foster the development of tailored lending activities to micro, small and medium enterprises (“MSME”) in Uzbekistan.

The Framework Contract will enable the Bank to call upon a pre-qualified firm from which it can quickly and efficiently obtain reliable services. The Framework Contract will establish, in advance, fee rates for experts, the contract terms and agreements, and procedures that will govern individual assignments (Assignments or Call-offs) to be required to implement the Programme. Under the Framework Contract the Bank will have the option, but not the obligation, to place individual Assignments with the selected Framework Consultant.

The Bank may send to the selected Framework Consultant specific Terms of Reference for the Assignment (Specific ToR). The Specific ToR will include a description of the tasks to be performed, time-schedules and reporting instructions. The Framework Consultant 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 (Call-Off Notice) for the individual Assignment.

Description of individual Assignments (Call-offs)

Consultancy services for individual Assignments in support of PFIs and Programme objectives are expected to include the following:

1) Development of a risk management module covering areas of credit risk, asset and liability management (ALM), market risk and operational risk;

2) Design of a targeted lending programme and credit advisory service to complement the Bank’s debt transactions for MSME lending operations. Consultant support will be needed for (i) the design of the implementation process; (ii) marketing strategy; (iii) human resource development programme, which will include a ‘train the trainer’ programme; and (iv) support of PFIs in setting up monitoring and recovery units. Steps will be taken to include the relevant ‘EBRD Environmental and Social Risk Management Procedures for MSME’ into the design of the classroom training. The PFIs will be encouraged to register for access to the EBRD on-line training programme for their reference;

3) Review and provision of recommendations on corporate governance and organisational structure focused on the (i) adequacy of the governance structure in the form of Supervisory and Management Boards; (ii) effective oversight and control through a comprehensive range of Committees and (iii) review of Internal Audit function;

4) Support with strategic planning and business plan preparation focused on three main areas: (i) development of a comprehensive three-to-five year strategy with financial and operational projections and targets; (ii) business planning capacity building and (iii) design and implementation of a working plan to facilitate implementation of the strategy document and on-going monitoring;

5) Review of PFIs’ Information technology (IT) structure and recommendations of appropriate enhancements. The assessment will focus on areas such as (i) hardware and software needs, and (ii) adequacy of PFI’s MIS/reporting systems;

6) Identification of cost optimisation potentials with aim to improve operating efficiency and support the sustainability of PFIs business model; and

7) Organisation of centralised training sessions, workshops and seminars to take place periodically covering topics outlined in the individual modules above. Participation will be open to all PFIs and, as applicable, other relevant stakeholders.

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

Assignment Start Date and Duration: The Programme is expected to start in January 2018. The selected Framework Consultant will be engaged via a Framework Contract with a validity period of up to five years.

Maximum Cost Estimate for the Programme and Assignment: up to EUR 5,000,000; (exclusive of VAT). Subject to availability of funding, the performance of the selected Framework Consultant and the specific needs of the Bank the Framework Contract may be extended beyond the current scope. The cost estimate for individual Assignments is expected to vary significantly depending on their specific scope, but it is envisaged that TC to support individual PFIs, delivered through one or several Assignments, will be in the estimated amount of EUR 450,000 (exclusive of VAT) on average.

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 EBRD Technical Cooperation Funds Programme. Please note selection and contracting will be subject to the availability of funding.

Eligibility: There are no eligibility restrictions.

Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with previous project experience related to implementing capacity building programs and MSME projects through commercial banks in the countries of Eastern Europe, Caucasus and Central Asia or other similar environments.

The Consultant will be requested to have a permanent presence in Uzbekistan for the entire duration of the assignment unless this requirement is waived by the Bank depending on operational priorities under this Assignment. The Consultant will be requested to optimise the cost structure and have adequate staffing and reasonable level of direct and reimbursable expenses to accurately reflect the level of effort necessary to do the work. The Consultant must demonstrate internal capacity to oversee the assignment, provide a strategic input as and when needed, have strong back-office support and ability to “scale up” or “downsize” the level of engagement depending on the requirements and the pace of Programme implementation.

It is expected that the Consultant’s team will comprise the following key experts:

· Key Expert 1: Key Expert/Programme Manager for overall Programme management and communication with extensive experience in managing similar assignments.

· Key Expert 2: Risk Management Expert

· Key Expert 3: MSME Lending Expert

· Key Experts 4: MIS/IT Expert

· Key Experts 5: a Pool of Banking Specialist with experience in (i) internal audit, (ii) marketing and sales, (iii) human resources, (iv) credit scoring, (v) financial planning (vi) operational (non-credit) processes, (vii) financial risk management, (viii) corporate governance; (ix) strategic planning.

The team of Key Experts provided by the Consultant should have experience in all components of the program listed under the Description of individual Assignments section. Knowledge of local operating environment, financial/banking sector and regulations will be essential.

In addition, several Non-Key Experts for specific tasks may be required at certain stages of Programme implementation.

Long-term Key Experts should be proficient in Russian and English; Non-Key Experts should be proficient in Russian. Knowledge of Uzbek language may be beneficial for implementation of certain tasks. Work experience with the financial/banking sector and applicable regulations in similar operating environments will be essential; knowledge of local financial/banking sector will be an advantage.

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:


a) Company/group of firms" profile, organization and staffing (max. 4 pages).

b) Details of previous project experience or similar 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 (if different from duration) , main activities, objectives.

c) CVs of key experts who will carry out the Assignments 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 25 pages, excluding CVs and Consultant Declaration Form and Contact Sheet.

Expressions of Interest should be submitted in English electronically through e-Selection, to reach the Bank not later than the closing date. The complete expression of interest (including cover letter, CV, 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:

Sophie Medert

Technical Co-operation

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

Tel: Fax: +44 20 7338 7371

E-mail: mederts@ebrd.com

(submissions should be sent through eSelection and NOT to this email address)

Important Notes:

1. Following this invitation for Expressions of Interest, a shortlist of qualified consultants will be formally invited to submit proposals. Consultant selection and contracting will be subject to availability of funding.

2. Evaluation of the Expressions of Interest and shortlisting will be based on the following criteria and their respective weightings:

a) Firm’s previous project experience implementing capacity building and MSME lending assignments in the past five years – 30%;

b) Firm’s previous relevant project experience in banking sectors in transition economies, particularly Eastern Europe, Caucasus and Central Asia or other similar environments – 30%;

c) CVs of Key Experts - 40%.