TERMS OF REFERENCE FOR PREPARING A STRATEGY AND PROCEDURES FOR INTERVENTION IN THE PRIVATE SECTOR April 2014 Terms of Reference for Preparing a Strategy and Procedures for Intervention in the Private Sector Page - 1 -
I. BACKGROUND EBID, the The financial arm of ECOWAS is an international financial institution established by the fifteen Member States of the Economic Community of West African States (ECOWAS) namely, Benin, Burkina Faso, Cap Verde, Côte d Ivoire, the Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. The headquarters of the Bank is in Lome, Togo. EBID emerged from the transformation of the erstwhile ECOWAS Fund for Cooperation, Compensation, and Development in December 1999. (The Fund was established in 1975 at the same time as ECOWAS in 1975 and became operational in 1979). The Bank s capital is in the amount of 1billion UA 1, (USD1 518 million). 70% of the capital is held by Member States. The remaining 30% is open to subscription by non regional members. In order to fulfill its mission as an effective tool for poverty reduction, wealth creation, employment promotion for the well-being of the people of the sub-region, EBID works in collaboration with the ECOWAS Commission which provides the strategic orientations and political impetus. The vision of the Bank is to become the leading regional investment and development financial institution in West Africa and an effective instrument for poverty reduction, wealth creation and job promotion for the well-being of the people of the region. The mission of EBID is to assist in creating favourable conditions for the emergence of of an economically strong, industrialized and prosperous West Africa that is fully integrated into the global economic system in order to benefit from the opportunities and prospects offered by globalization. In 2010 the Bank adopted a strategic plan for 2010-2014 expected to inject about 1.5billion US dollars representing, an average of 300 million US dollars per annum into the economy of the sub-region. The promotion and development of the sub-region s private sector is one of the three key areas of the Bank s activities. In view of the considerable needs but limited resources available, EBID aims to improve the structure of the Bank s interventions in the private sector and include other areas or instruments such as Public, Private Partnership, loan syndication, financial arrangements, trade financing and project structuring, etc. capable of boosting private sector financing in the sub-region. 1 UA1 = SDR (Special Drawing Right) Terms of Reference for Preparing a Strategy and Procedures for Intervention in the Private Sector Page - 2 -
This is the context for the terms of reference relating to the recruitment of a consultancy firm to prepare and put in place a specific strategy for the Bank s intervention in the private sector including the procedures for a more efficient approach. II. PURPOSE OF THE MISSION The purpose of the mission is to prepare a strategy and specific procedures for EBID s intervention in the private sector. The strategy will make it possible to (i) define positioning through the most appropriate sector and services; (ii) identify the major initiatives required for project identification in line with poisitioning; (iii) develop the skills needed within the Bank for the appraisal, financing and management of private sector projects specifically, Public- Private Partnerships (PPP), trade financing, syndication, financing arrangements, commissions especially financial engineering initiatives-advisory services-structuring etc. including other products or private sector financing tools to be proposed. III. SPECIFIC TASKS OF THE CONSULTANT The specific tasks of the CONSULTANT are: To prepare a general strategy for intervention in the private sector in line with the vision and missions of the Bank (General Policy, conditions of intervention etc.), the ECOWAS Commission s vision for the private sector and the good practice in force within institutions around the world that have the same status as EBID (ADB, BOAD, AFC, DBSA, IDB, etc.). Therefore, the strategy should clearly indicate: o priority sectors of intervention; o EBID s conditions for intervention (interest rates, various commissions, duration, grace period, time frames for the processing of requests, guarantees, etc.) for each type of beneficiary (financial private sector and / or non financial private sector) including justification for the proposals taking into consideration the realities of the target market and competition; o modes of financing and the types of resources to be allocated; An analytical review of the existing procedures. Preparation of standard procedures for the Department in charge of the Private Sector, in respect of the evaluation of PPP projects, trade finance, Terms of Reference for Preparing a Strategy and Procedures for Intervention in the Private Sector Page - 3 -
syndication which should include scenarios on the likelihood of raising resources from capital markets, and identification of the appropriate tools for the management and monitoring of projects; Preparation of standard procedures for the Department in charge of the Private Sector, for the evaluation of commission based services in particular, financial engineering, advisory services and structuring. Preparation of post project evaluation procedures for the Internal Audit Department. Preparation of procedures for the Department of Private Sector Operations, aimed at defining and clarifying the working relationships among the various structures involved in the project cycle namely: the Department of Private Sector Operations Department of Risk Analysis Legal Services Department Loan Administration-Treasury. Proposal of methods capable of fostering synergies with some structures in the ECOWAS Commission in particular, the Private Sector Department, the Unit in charge of Preparing and Developing Projects and the Regional Fund for Agriculture and Food (ECWADF). The last two entities are located in EBID. IV. EXPECTED OUTCOMES At the end of the mission, the Bank s capacity should be enhanced in terms of: the identification, preparation and processing of private sector projects in general and PPP projects, arrangement, trade financing, equity participation, guarantees and syndication in particular; commission based services especially, financial engineering, advisory services and structuring; adequate tools for the management and monitoring of projects; working relationship among the various structures involved in the private sector project cycle; methods that could enable the Department of Private Sector Operations develop synergies with some structures in the ECOWAS Commission in particular, the Private Sector Department, the Projects Preparation and Development and the Regional Fund for Agriculture and Food (ECOWADF). The last two of the ECOWAS Commission entities are located in EBID; legal packaging of private sector projects in general and PPP projects, arrangements, trade financing, equity participation, guarantees, and syndication, financial engineering, advisory services and structuring, in particular; Terms of Reference for Preparing a Strategy and Procedures for Intervention in the Private Sector Page - 4 -
supervision of private sector projects in general and PPP projects, arrangements, trade financing, equity participation, guarantees, syndication, financial engineering, advisory services and structuring, in particular; post evaluation of projects; V. RELEVANT QUALIFICATIONS The consultancy firms applying should: - Be of international standing and have a good knowledge of the ECOWAS region. - Have discharged all tax obligations (taxes, social security and pensions funds) to the authorities of their country); - Have a record of having accomplished similar complex missions. Experts from the firm must have the following qualifications and working experience: - a post graduate level training in economics finance or related development field; - not less than ten (10) years experience in a Development Financial Institution; - not less than five (5) years experience as international consultant or having worked in an international consultancy firm and conducted not less than two (02) similar missions; - good command of written and spoken English and or French with a good knowledge of the other language. Applications would be evaluated on the following criteria: - general qualifications and aptitude for the task to be assigned : 40% - experience in the task indicated in the terms of reference : 40% - experience with international donnors: 10% - language skills: 05% - knowledge of the region (ECOWAS): 05% Only the bids that obtain 70 points or more would be considered for the task. The service provider shall pay for his insurance or medical bills for the duration of his services. The service provider shall take steps to obtain the relevant visas or residence permits required to implement his tasks and discharge his obligations as stipulated in the contract. The Bank shall assist the service provider whenever the need arises. Terms of Reference for Preparing a Strategy and Procedures for Intervention in the Private Sector Page - 5 -
VI. DURATION OF THE MISSION The mission period is two (03) months. VII. DELIVERABLES - A strategy document on EBID s intervention in the private sector in five (5) printed copies and one electronic support in English or French. - Manual of Procedures for EBID s Department of Private Sector Operations in five (5) printed copies and one electronic support in English or French. Terms of Reference for Preparing a Strategy and Procedures for Intervention in the Private Sector Page - 6 -