TERMS OF REFERENCE FOR THE DEVELOPMENT OF RESOURCE MOBILZATION STRATEGY AND PROCEDURES FOR EBID

Transcription

1 TERMS OF REFERENCE FOR THE DEVELOPMENT OF RESOURCE MOBILZATION STRATEGY AND PROCEDURES FOR EBID May 2014 ToR for the Preparation of Resource Mobilization Strategy and Procedures for EBID Page - 1 -

2 I. BACKGROUND EBID, the financial arm of ECOWAS, is a financial institution established by the fifteen (15) Member States of the Economic Community of West African States, including Benin, Burkina Faso, Cape Verde, Côte d Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. Its Headquarters are located in Lome, Togo. EBID emerged following the transformation in December 2003 of the ex-ecowas Fund for Cooperation, Compensation and Development (established in the same year with ECOWAS in 1975 and became operational in 1979). Its share capital stands at 1 Billion UA 1, (US$1 518 million). Member States control 70% of the capital and the remaining 30% is offered for subscription by non-regional members. In carrying out its mission as a privileged instrument for the fight against poverty, creation of wealth and employment for the well-being of the people of the sub-region, EBID works in close collaboration with the ECOWAS Commission which provides strategic guidelines and political impetus. The vision of EBID is to become the leading regional investment and development finance institution in West Africa and an efficient instrument for fight against poverty, creation of wealth and employment for the well-being of the people of the sub-region. EBID has set itself the task of creating a conducive environment for the emergence of an economically sound, industrialized, prosperous and perfectly integrated West Africa internally as well as at the global economic-level with a view to cashing in on opportunities and prospects of globalization. In June 2010, the Bank adopted a strategic plan to enable it to inject in the sub-regional economy, about US$1.5 billion, for an annual average of US$ 300 million. The promotion and development of the regional private sector remains one of the three main objectives of the Banks business plan. To finance its activities, the Bank draws from two major categories of resources: resources mobilized from the Community and external resources. The Bank s own resources are resources mobilized in the sub-region including specifically, capital resources, resources from the regional equity markets, resources from the Community Levy and Special Funds to be set up. The external resources are resources mobilized from bilateral or multilateral technical and financial partners such as governments, multilateral and development banks or other banks or international finance institutions. The resource needs of EBID fall into two categories: 1 1 UA = SDR (Special Drawing Right) ToR for the Preparation of Resource Mobilization Strategy and Procedures for EBID Page - 2 -

3 Concessional resources to significantly boost the Bank s intervention through the financing of basic infrastructure projects which are vital to the economic development of the sub-region and to the promotion of a dynamic private sector which is the engine of growth. Unfortunately, the ripple effects of the global financial crisis have resulted in dwindling concessional resources at the international level, leading to a drastic fall or even a change in the international aid architecture. In spite of this complex situation, EBID obtained two lines of credit totalling US$500 million over a period of 20 years with a 5- year grace period. This period unfortunately fell short of meeting the terms and conditions of concessionality of the Breton Woods institutions as far as loans are concerned in the United States. EBID was therefore compelled to extend the loan duration to 30 years with a 9-year grace period so as to ensure direct loans to Member States despite the resulting pressure on cash-flow as the Bank will have no option but use own funds, thus deteriorating its financial position; Commercial resources to finance the private sector. In this regard, the Bank has already mobilized F CFA66 billion and US$95 million from the various financial partners. In the near future, the Bank intends to raise funds from the financial markets in Ghana and Nigeria and hopes to have the necessary internal expertise to raise resources at much lower costs on the international capital markets. All these efforts remain inadequate in view of the enormous requests for financing the Bank receives from Member States. Similarly, three years after launching its strategic plan, mobilizing sufficient resources remains one of the major constraints identified by the Bank. Against this background, the Bank urgently needs to look for innovative ways to finance its projects in a coherent framework. These Terms of Reference are being developed as part of efforts to hire a firm to prepare and execute a real resource mobilization strategy for the Bank. II. OBJECTIVES OF THE MISSION The purpose of any resource mobilization strategy is to identify, gather and organize the necessary inflow of funds for the implementation of projects and programmes identified. In the context of EBID, the strategy to be developed must address two key issues, namely: - Sources of resources with best conditions in terms of interest rates, duration and repayment terms, and; ToR for the Preparation of Resource Mobilization Strategy and Procedures for EBID Page - 3 -

4 - How can these resources be mobilized? III. SPECIFIC TASKS OF THE CONSULTANT Below, are the specific tasks of the Consultant. - Identify the various sources of resource mobilization that can help EBID to finance the development of its activities. - Propose for each category of resources, the mechanisms, techniques and human means required to mobilize them. - Assist EBID in developing resource mobilization procedures. - Assist the Bank to prepare and implement medium and long-term financial policies and plans, more particularly the preparation of financial outlooks and their monitoring. - Study the conditions of the capital markets in the ECOWAS Member States and on other financial platforms and make recommendations in respect of the Bank s operations on these markets, notably in raising equity. - Propose mechanisms to help strengthen the synergies to be developed between EBID and the ECOWAS Commission. - Propose the measures necessary for raising funds on the financial markets in Ghana and Nigeria. - Propose the measures required in obtaining lines of credit and equity participation into the Bank s capital from Financial and Development Institutions. - Identify special funds such as the EPAs and propose how they can be channeled to EBID. - Propose the measures necessary for the paying-up of the Bank s capital by Member States. - Identify the emerging countries that are more and more attracted to Africa such as China, Turkey, Venezuela, Brazil etc and draw up efficient mechanisms of mobilizing resources from these countries. - Propose innovative resource mobilization mechanisms especially through the PPP. - Identify high level contact persons to sponsor the Bank s resource mobilization activities. - Identify efficient professionals to serve as brokers to facilitate resource mobilization. - Propose efficient mechanisms for the coordination of resource mobilization activities. ToR for the Preparation of Resource Mobilization Strategy and Procedures for EBID Page - 4 -

5 - Specifically identify resources that can be mobilized to feed into (i) a Research Fund to boost sound project identification practices in building a wealthy project pipeline; (ii) a Fund to help subsidize interest rates currently applied by EBID in line with what pertains in UEMOA; (iii) a trust fund like the Nigeria Special Fund set up in 1976 by agreement between the African Development Bank (ADB) and the Government of the Federal Republic of Nigeria; (iv) and any other funds to be managed by the Bank. - See to the implementation of the resource mobilization strategy with its action plan. - Specifically assist EBID to transform its Telecom Fund into an Investment Fund to serve as leverage in funding telecommunication infrastructure. IV. EXPECTED OUTCOMES At the end of the mission, EBID shall be provided with: - A comprehensive and coherent resource mobilization strategy; - Resource mobilization-related procedures; - A resource mobilization plan; - A well-trained staff in a resource mobilization strategy and related procedures; - A database of the sources of resource mobilization with terms and conditions of mobilization; - A database of high level contact entities capable of sponsoring resource mobilization and efficient professionals who can mobilize internal and external resources; - An efficient strategy to strengthen the synergy to be generated between EBID and the ECOWAS Commission; - Innovative and efficient mechanisms to mobilize resources through syndication projects and resources to set up research funds; - Precise guidelines for the creation of a research fund, an interest rate subsidy fund and a trust fund; - A framework for the preparation of the Bank s medium-term financial outlooks; - Internal expertise in raising capital on the regional and international markets (at least the professional staff of the Bank have been trained in resource mobilization strategy and its action plan ; - A business plan for the transformation of the Telecom fund of EBID into an investment fund for the financing of modern communication infrastructure ; ToR for the Preparation of Resource Mobilization Strategy and Procedures for EBID Page - 5 -

6 V. PROFILE OF THE CONSULTANTS The Consulting firms selected to bid must: - Have an established international reputation with a thorough knowledge of ECOWAS. - Be in compliance with the tax-administration of their country and with social groups in honouring all social security and pension obligations; - Have carried out similar missions by way of their complex nature. The Consultants must have the following experience and qualifications: - Post-graduate level certificate in economics-finance and development-related fields; - At least ten (10) year- experience in a Finance Development Institution; - At least five (05) year-experience as an international consultant or collaborator in an international consultancy firm and having undertaken at least two (02) similar missions; - Effective communication skills in, both oral and written French and/or English and a sound knowledge of the other language. A proven track-record in stock exchange and/or assets management or brokerage companies will be an added advantage. The following criteria shall be used to evaluate the proposals submitted by applicants: - General qualifications and ability to execute the tasks : 40% - Experience in the tasks specified in the Terms of Reference: 40% - Experience in dealing with international donors: 10% - Language ability : 05% - Knowledge of the (ECOWAS) region: 05% Only bids scoring 70 or above shall be considered for the task. All insurance and medical expenses shall be borne by the service provider during the entire duration of his/her mission. The service provider shall take steps to obtain visas and residence permits required for the execution of his/her tasks and shall bear the costs of such services as stipulated in the contract. The Bank shall assist the service provider, as and when necessary, in his/her efforts to obtain the said documents. ToR for the Preparation of Resource Mobilization Strategy and Procedures for EBID Page - 6 -

7 VI. DELIVERABLES - A Resource Mobilization Strategy document with its plan of action in hard copy (five copies) and electronic version in both French and English; - A manual of procedures on the implementation of the resource mobilization strategy in hard copy (5 copies) and in electronic version in both French and English; - Report on training courses dispensed in hard copy (5 copies) and electronic version in both French and English. VII. DURATION OF THE MISSION The mission is scheduled to be completed in five (05) months. ToR for the Preparation of Resource Mobilization Strategy and Procedures for EBID Page - 7 -