Impact Credit Guarantee Limited (ICGL)- Expression Of Interest For Consultancy Services

DEADLINE: 25^TH OCTOBER, 2021
IMPACT CREDIT GUARANTEE LIMITED (ICGL) 
TERMS OF REFERENCE (CONSULTING SERVICES – FIRMS SELECTION) 
ASSIGNMENT TITLE: INSTITUTIONAL ASSESSMENT AND CAPACITY BUILDING OF SELECT PARTICIPATING FINANCIAL INSTITUTIONS ONBOARDED BY IMPACT CREDIT GUARANTEE LIMITED, WITH THE AIM TO IMPROVE THE UPTAKE OF CREDIT GUARANTEE PRODUCTS  
REFERENCE: NG-DBN-230977-CS-QCBS 

I. Background
Using the proceeds of a loan from the International PFI for Reconstruction and Development (IBRD), the Federal Government of Nigeria (FGN) intends to engage 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.

The capacity building shall include areas such as technology, product development, training and closing the MSME information asymmetry.
The 2017 National Survey on MSMEs reports approximately 41.5 million MSMEs, contributing 49.9 percent to the national Gross Domestic Product. However, less than 5% of MSMEs have access to finance.

This TA is planned to support the roll-out of the credit guarantee products of Impact Credit Guarantee Limited (ICGL), a wholly owned subsidiary of the Development PFI of Nigeria (DBN). ICGL commenced operations in 2019, issuing its first guarantee in December 2019.

As of 31 December 2020, ICGL had guaranteed loans totaling NGN 10.4 billion from 6 PFIs, reaching 1,750 MSMEs, of which 20.9 percent were first time borrowers and 36.9 percent were youths.

ICGL has selected the top 5 PFIs, comprising 4 commercial banks and 1 microfinance bank as being eligible; given the need and opportunity to ramp up guarantee volumes from these PFIs.

• Length of relationship between ICG Land PF: PFl’s in relationship with ICGL for not less than 6 months.
• Volume of business: Average monthly guarantee volume of less than N500 million.
• Capacity of PFI to do more business with ICGL, based on the size of its MSME portfolio relative to the business with KCGL Level of difficulty currently experienced with the PFL

In addition to the review of selected PFI’s, 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.

II. Objectives of the Assignment

ICGL intends to engage a consulting firm (“the Consultant”) to provide support in identifying the capacity requirements of the select PFIs, with a view to improving the uptake of the ICGL’s credit guarantee products, expanding outreach to MSMEs; recommending appropriate solutions to the identified gap(s) and need(s); and facilitating deployment of the solutions.

III. Scope of the Services
The consultant is expected to support the selected 5 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-19strategy.

2. 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: bit.ly/ta2pfiTOR

The DBN invites eligible consulting firms (‘Consultants’) to indicate their interest in providing these Services. Interested Consultants should provide information demonstrating the required qualification and 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
2. Evidence of experience with other credit guarantee funds
3. Evidence of experience in setting up and training staff in MSME finance units of large commercial PFI’s; in supporting PFl’s to reach out to MSMEs beyond their traditional client base, including women-owned/operated MSME’s; and in the utilization of digital solutions.
4. Evidence of extensive capacity building experience related to strengthening the understanding and usage of credit guarantees to facilitate lending, appropriate lending techniques (e.g. cash-flow based), 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

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 for each partner firm, Information to be provided shall take the following format:

 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 BRD 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 (IVM, 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 (UV or sub-consultancy) should include the following:

• A cover letter stating the type of association or partnership, signed by member firms.
• 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:
To: ndinwoke@devbankng.com
CC: audit@devbankng.com; 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.