Development Finance Project: Institutional Assessment and Capacity Building for Impact Credit Guarantee Limited's Participating Financial Institutions, with the aim to improve the uptake of Credit Guarantee Products

Project ID: P146319

Project Title: Development Finance Project

Borrower Bid Reference: NG-DBN-230977-CS-QCBS

REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – FIRM SELECTION) 

DEVELOPMENT FINANCE PROJECT

Assignment Title: Institutional Assessment and Capacity Building of Participating Financial Institutions onboarded by Impact Credit Guarantee Limited, with the aim to improve the uptake of Credit Guarantee Products 

Reference Number: NG-DBN-230977-CS-QCBS

The Development Bank of Nigeria (DBN) Plc has received a loan from the International Bank of Reconstruction and Development (IBRD) and intends to apply part of the proceeds of this loan in engaging a qualified consulting firm to provide Technical Assistance (TA) to select Participating Financial Institutions (PFIs), aimed at expanding the scope of their lending to Micro, Small and Medium Enterprises (MSMEs), through credit guarantee product.

The goal of the TA is to augment the level of formal credit and financial services made available to MSMEs, by improving the capacity of PFIs to increase their uptake of Impact Credit Guarantee Limited’s credit guarantee products (ICGL is a wholly owned subsidiary of the Development Bank of Nigeria); recommend appropriate solutions to identified gap(s) and need(s); and facilitate the deployment of solutions. Capacity building shall cover areas such as technology, product development, training and closing the MSME information asymmetry.  

Five eligible PFIs have been selected for this TA from the pool of PFIs currently cooperating with ICGL. They include four commercial banks and one microfinance bank. Selection was based on need and potential to ramp up guarantee volumes from these PFIs. The selection criteria are as follows:

• Length of relationship between ICGL and PFI: PFIs in relationship with ICGL for not less than 6 months.
• Volume of business: Average monthly guarantee volume of less than N500million.
• Capacity of PFI to do more business with ICGL, based on the size of its MSME portfolio relative to the business with ICGL.
• Level of difficulty currently experienced with the PFI.

In addition to the review of selected PFIs, this TA will cover the review of ICGL’s products and the development of products necessary to support the implementation of ICGL’s COVID-19 strategy.

The consultant is expected to support the selected PFIs through a two-phase process:

1. Phase one entails undertaking an institutional assessment of the selected PFIs’ specific needs and the development of a detailed work plan for each PFI, including suggestions as regards product design; identification of possible solutions most suited to address identified gaps; and the development of products/programs required for the implementation of ICGL’s COVID-19 strategy.

1. Phase two involves supporting the roll-out of agreed solutions from phase one.

The above outlined Services are described in detail in the Terms of Reference which can be found on DBN’s website at the following link https://bit.ly/ta2pfiTOR 

The DBN invites eligible consulting firms (“Consultants”) to indicate their interest in providing these Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform these Services. 

Minimum shortlisting criteria are:

1. Evidence of vast experience (local and/or international) with similar projects related to MSME credit guarantee and financing. 

1. Evidence of experience with other credit guarantee funds.

1. Evidence of experience in setting up and training staff in MSME finance units of large commercial PFIs; in supporting PFIs to reach out to MSMEs beyond their traditional client base, including women-owned/operated MSMEs; and in the utilization of digital solutions. 

1. Evidence of extensive capacity building experience related to strengthening the understanding and usage of credit guarantees to facilitate lending, appropriate (e.g., cash-flow based) lending techniques, use of digital solutions and process automation tailored to emerging market environments where MSMEs’ financial record keeping and access to collateral is limited, and where weaknesses in the financial infrastructure inhibit efficient foreclosure on collateral.

The following additional criteria would be considered an advantage for Consultants who meet the above-mentioned criteria: i) demonstrated evidence of successful implementation of similar projects in Nigeria or Africa; ii) experience in similar projects financed by international development institutions such as the World Bank Group, European Bank for Reconstruction and Development, and/or other relevant institutions.

Detailed information on similar assignments executed should be presented in the format provided in Appendix 1 below. 

The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’s Guidelines: Selection and Employment of Consultants under IBRD and IDA Credits & Grants by World Bank Borrowers, May 2011, revised in July 2014 (“Consultant Guidelines”), setting forth the World Bank’s policy on conflict of interest.  Consultants may associate with other firms in the form of a Joint Venture or a sub-consultancy to enhance their qualifications. For Joint Ventures (JV), each member firm shall be evaluated independently and should be reasonably qualified to undertake the assignment in case of withdrawal by any of the members. Expression of Interests must clearly demonstrate the qualification of each member against the minimum criteria. 

Expressions of Interest from firms in association (JV or sub-consultancy) should include the following:

1. A cover letter stating the type of association or partnership, signed by member firms.
2. A draft agreement or letter of intent to form an association.

A Consultant will be selected in accordance with the Quality and Cost Based Selection method set out in the Consultant Guidelines. 

Expressions of Interest must be submitted electronically to the following email address: ndinwoke@devbankng.com

cc audit@devbankng.com

cc procurement@devbankng.com

Addressed to:

The Project Coordinator

Development Bank of Nigeria (DBN)

The Clan Place,

1386A, Tigris Crescent

Maitama, Abuja,

Nigeria.

All Expressions of Interest must be a maximum of 15 pages

Submission Deadline: October 25, 2021.

Appendix 1: Similar Assignments Executed  

Interested Consultants are expected to list relevant projects (previously executed projects of a similar nature) against each criterion stated above. Information requested in the table below should be provided for each project. Firms in a Joint Venture/ Consortium should provide the required information for each partner firm (separately) to allow for an isolated assessment of each partner firm.

Information provided shall take the following format: 

CONTACT INFORMATION
Organization/Department Development Bank of Nigeria (DBN).
Name Nene Dinwoke
Address Abuja Nigeria
City 
Province/State Nigeria
Postal Code 
Country Nigeria
Phone 08090281663
Email ndinwoke@devbankng.com