Building Beirut Businesses Back & Better (B5) Fund (Ливан - Тендер #59978325)

• Project ID

P176013

• Project Title

Building Beirut Businesses Back & Better (B5) Fund

• Country

Lebanon

• Notice No

OP00328778

• Notice Type

Request for Expression of Interest

• Notice Status

Published

• Borrower Bid Reference

LB-KAFALAT-466385-CS-INDV

• Procurement Method

Individual Consultant Selection

• Language of Notice

English

• Submission Deadline Date/Time

Dec 22, 2024 14:00

• Published Date

Dec 16, 2024

• CONTACT INFORMATION
• Organization/Department

Kafalat sal

• Name

Yolla Serieddine

• Address

Beirut, Lebanon

• City

• Province/State

Lebanon

• Postal Code

• Country

Lebanon

• Phone

01346255

• Email

yolla@kafalat.com.lb

• Website

The B5 Fund is a US$28 million grant that aims to support the recovery of Micro and Small Enterprises (MSEs) damaged by the Port of Beirut (PoB) explosion of August 4, 2020, and sustain the operations of Microfinance Institutions (MFIs). It is financed by the Lebanon Financing Facility (LFF). It is financed by the Lebanon Financing Facility (LFF), a multi-donor trust fund established in December 2020 and managed by the World Bank to pool and coordinate grants resources from donors in support of the immediate socio-economic recovery of vulnerable people and businesses impacted by the explosion in August 2020.

Project components and activities include:

• Component 1 – Grants to MSEs (: Grants to eligible MSEs impacted by the explosion to support their rehabilitation and recovery.
• Component 2 – Grant to MFIs (US$7.7 million)
• 2.1 Grants to select MFIs to cover part of MFIs’ operating expenses over 18 months
• 2.2 Grants to select MFIs for on lending to eligible MSMEs
• 2.3 Technical Assistance to a selected MFI
• Component 3 – Project Management and Gender Support: This component will finance training and capacity building activities to beneficiary women owed or led (WOL) and disabled owned or led (PWD) MSEs. It will also cover project management costs.

The MFI is a Lebanese non-profit organization founded in 1984 and committed to enhancing the living conditions of individuals by supporting their professional endeavors. It provides micro-loans to those who face challenges in securing conventional financing. It prioritizes individuals responsible for dependents, those with limited or modest incomes, and those who encounter difficulties in obtaining bank loans. It empowers these individuals by offering the necessary financial support to initiate or expand sustainable and productive professional projects. Beyond its microfinance initiatives, it also engages in a modest enterprise of producing and selling chocolates.

Constrained by its limited size and financial resources, the microfinance NGO faces challenges in refining its processes while continuing its operations. The financial crisis that has afflicted Lebanon since 2019 has further strained its capabilities. Nevertheless, it has shown a resilient determination to improve its processes. It resumed its lending activities in 2023, and as of December 2023, had an outstanding loan portfolio of US$ 217,000 and served 350 active clients thanks to ~10 full-time equivalent staff members.

Objectives

Against this background, the B5 project aims at bolstering the institutional capacity of the microfinance NGO by offering technical assistance to strengthen its strategy, business planning, controls, and overall operational efficiency. This will also contribute to its development, enabling it to sustainably provide loans to its clientele, while enhancing expertise of board and staff.

Scope of work & Deliverables

The assistance will primarily tackle the existing deficiencies identified in the microfinance NGO’s evaluation for the B5 project and will focus on the following key areas: (i) overall steering and management, including business and fundraising strategy, and accompanying financial projections; (ii) sustainable product and pricing strategy, along with the associated underwriting process; and (iii) related lending policies and controls, comprising risk-based internal controls, internal audit, and anti-money laundering measures.

The consultant will be responsible for the following activities:

Activity 1: Microfinance NGO steering and management

The first activity will:

• Support the microfinance NGO in breaking down its existing institutional plan into a clear vision and mission, accompanied by a well-defined plan for its microfinance activities for the next 2 and 5 years, including specific lending targets and standard indicators (10 to 15 indicators), ideally displayed on a dashboard that shows quarterly trends and is straightforward to update;
• Assess the existing funding strategy and develop a plan to diversify financing sources, such as identifying at least 5 new potential lenders or donors, including blended-finance funds and concessional loans from philanthropic institutions;
• Evaluate the roles and responsibilities of the microfinance NGO’s Senior Management and Board of Directors as they related to its microfinance activities to identify any overlaps, conflicts of interest due to the limited staff size and their involvement in operations, and pinpoint any gaps in the oversight or direction of its activities;
• Create job descriptions for Senior Management positions and define overall responsibility of the Board of Directors to effectively delineate the separation of duties between management and supervisory functions.

Activity 1 deliverables:

• A one-pager describing the microfinance NGO’s vision and mission;
• A business plan for the microfinance activity with related financial projections for the lending activity and funding strategy;
• A dashboard with standard microfinance indicators;
• Job description for senior management members and role of the board of directors.

Activity 2: Product definition and pricing

The second activity will:

• Analyze the two existing products (size, customer segment, current price vs. market price, collateral requirements) to assess their relevance with regards to the strategy designed in the first activity and propose either modifications to existing products or new products to match needs and strategy of microfinance NGO and its customers;
• Using the microfinance NGO’s profit and loss statement for the microfinance activity and relevant cost items (e.g. cost of funding, non-performing loans, and other fixed and variable costs), define the viable price of lending products, breakeven objectives, and a time horizon at which repricing should be performed.

Activity 2 deliverables:

• An Excel sheet with the minimum viable price of each of the two products, breaking down the costs of the minimum viable price;
• An Excel file with the profit and loss statement for the lending activity that can be easily updated.

Activity 3: Lending policies and control mechanisms

The third activity will:

• Review and update the current underwriting processes to include ongoing internal controls (e.g. segregation of duties, compliance, etc.) and reflect the results of activities 1 and 2;
• Develop a simple risk map showing where current risks are for the main areas of activities (lending operations, human resources, IT, accounting & finance, compliance);
• Draft a concise risk-based guide for the internal audit periodic controls, comprising simple report templates, a rating scale (e.g. Satisfactory/Needs improvement/Insufficient/Not satisfactory), and related audit plan;
• Identify, together with the board and senior management, the best person(s) to carry out the different controls.

Activity 3 deliverables:

A review of the current control system in place and loopholes identified (Word or PPT):

• An updated underwriting process with relevant controls;
• A risk map (Excel);
• A risk-based internal audit guide, including relevant templates and audit plan for 1 year.

Language

The deliverables should be written in English. Most of the work related to this consultancy is expected to be conducted in either English or Arabic. Proficiency in Arabic is a must.

Duration

This consultancy is expected to last for a period of 5 months.

Reporting

Periodic check-in calls with Kafalat and the World Bank teams are anticipated with the consultant responsible for the technical assistance. No additional reporting is required beyond the deliverables outlined in the scope of work section.

Budget and Payment Schedule

The maximum budget for this consultancy is USD 50,000 including potential expenses related to any on-site visit.

Required qualifications and experience

The consultant should have the following qualifications:

• At least 10 years of professional experience in microfinance operations and/or in working, assessing or providing technical assistance;
• A significant knowledge and understanding of microfinance operations, preferably in the MENA region;
• Strong capacity to assess existing systems and procedures as well as formulating recommendations;
• Experience in designing operational guides and manuals;
• Capacity to draft in English and Arabic.

Confidentiality

All knowledge and information not already within the public domain which the consultant may acquire from the Microfinance NGO , Kafalat, the World Bank or its employees or by virtue of the assignment shall for all time and for all purposes be regarded as strictly confidential and held in confidence and shall not be directly or indirectly disclosed to any person whatsoever excepting with the written permission of both the World Bank and the Microfinance NGO . All outputs of the work, materials produced in the course of the work, and all by-products shall remain confidential unless the World Bank authorizes public release.

Documents provided by the Microfinance NGO to the consultant within the framework of the consultancy will be treated as confidential documents. the Microfinance NGO may require the signature of a non-disclosure agreement to ensure full confidentiality of the documents developed, especially the strategy.

Ownership

This consultancy cannot be performed by individuals having direct economic interests in a microfinance institution in Lebanon.

Источник закупки

Импорт - Экспорт по стране Ливан