INVESTMENT PROMOTION AND FINANCING FACILITY II (IPFF II) PROJECT BANGLADESH BANK, HEAD OFFICE, DHAKA Terms of Reference (ToR) For Package IPFF II - S1A # Firm for Technical advisory services to support PIU Background: The Government the People s Republic of Bangladesh (GoB) with support from the World Bank (WB) is undertaking the Investment Promotion and Financing Facility II (IPFF II) Project to help alleviate constraints in infrastructure financing. Development of infrastructure financing, which is by nature long term, is constrained in Bangladesh by the country s underdeveloped financial sector as well as the limited number of bankable infrastructure projects prepared/developed. IPFF II project follows the successful implementation of IPFF project, which was created in 2006 as a wholesale instrument providing liquidity required by primary lenders to extend longterm infrastructure loans. The IPFF project (implemented by IPFF Project Cell, Bangladesh Bank) was closed on 31 December, 2016. During this period total 21 infrastructure projects were financed under the IPFF project. GoB has received USD 356.70 million vide the Financing Agreement [IDA Credit No. 6004 ( Portion A) -BD & 6005 ( Portion- B) BD] signed on 05 November, 2017 as loans from the World Bank in order to implement IPFF II Project. GoB is also providing USD 60 million as counterpart fund to the Project. The total project cost stands at USD 416.70 million out of which on lending component is USD 403.70 million and Technical Assistance ( TA) component is USD 13.00 million. Duration of the project is 5 years (July 2017-June 2022). The main objective of the project is to build capacity of the financial institutions and other stakeholders i.e. Bangladesh Bank, PPP Authority, line ministries etc. for promoting private sector-led infrastructure financing in Bangladesh. Bangladesh Bank through IPFF II Project Cell, is implementing the project on behalf of Finance Division, Ministry of Finance. With a view to achieve the above mentioned objective, TA component (USD 13.00 million) will be utilized mainly in procuring goods and services, capacity building among various stakeholders and meeting operating expenses. Doing so, the Project will act as driving force in Long-Term Infrastructure Financing (USD 403.70 million) to the government approved or endorsed (by appropriate authority) or licensed (issued by competent authority in applicable Page 1 of 8
cases) infrastructure sub-projects in eligible sectors through Participating Financial Institutions (PFIs). Bangladesh Bank will provide loan to infrastructure projects through PFIs in the following key sectors (This list is indicative only): 1. Power generation, transmission, distribution, renewable energy, and services (with the exception of coal-fired and nuclear power plants) 2. Port development (sea, river, and land) including inland container terminals, inland container depots, and other services; 3. Environmental, industrial, and solid waste management projects; 4. Highways and expressways including mass-transit, bridges, tunnels, flyovers, interchanges, city roads, bus terminals, commercial car parking, and so on; 5. Airports, terminals, and related aviation facilities; 6. Water supply and distribution, sewerage, and drainage; 7. Industrial estates and parks development; 8. ICT; and 9. The social sector including health and education. The IPFF Project Cell [Project implementation unit ( PIU), Bangladesh Bank ( BB)] will provide loans to PFIs upon request of private investors to the PFIs for such loans. Once a PFI has taken the decision to finance an infrastructure project, the PFI forwards the loan file to the PIU for approval of the requested IPFF II financing. E&S qualified technical assistance/ implementation support partners engaged under the TA component will provide support and quality assurance on the E&S matters to the BB PIU, PFIs, and project sponsors during this review process, as needed. The BB PIU will not take commercial/credit decisions when reviewing the proposals. Rather the BB PIU, with support from technical advisor and E&S consultant as needed, reviews whether the investment projects to be financed meet predefined criteria: acceptable procurement, sufficient equity participation, sub-projects conform with E&S applicable requirements including adequate E&S impact assessment and management plans prepared or under preparation etc. Once the BB PIU has ensured that the investment project complies with the eligibility criteria, it will provide its no objection to the PFI, subject to prior acceptance/clearance by the World Bank. The IPFF II Project Cell is now seeking to hire a firm for Technical advisory services for IPFF II Project Cell (National) following the World Bank Procurement Regulations for IPF Borrower, July 2016. Objectives: Page 2 of 8
The purpose of consultancy service is to provide technical assistance to the IPFF II project in order to carry out project activities efficiently. Scope of Services: The Consultant is required to work with BB PIU, Participating Financial Institutions (PFIs), relevant market participants, relevant government authorities and other stakeholders to undertake the following tasks: Work Package 1 (WP1): Sub-project Pipeline Development The scope of services under WP1 is: Develop sub-project pipeline for IPFF II Project, undertake appropriate quantifiable measures for enlarging project pipeline and manage the pipeline of IPFF II Project on an ongoing basis. Identify potential investment projects (including creative unsolicited and/or free entry sub-projects) suitable for IPFF II funding and assist the concerned sponsors/entrepreneurs in drafting and signing purchasing/concession contract and other related contract with the related government agencies. Also facilitate sponsors to communicate with PFIs for IPFF II financing. Provide advisory services for having approval of creative unsolicited project from concerned agencies of Government of Bangladesh (GoB). Prepare an implementation plan for IPFF II On-lending component in consultation with IPFF II Project Cell, PFIs, Investment Enterprise, PPPA, different line Ministries and other stakeholders and update it quarterly or any time at the request of IPFF II Project Cell. Any other task related to project development and pipeline building assigned by IPFF II Project Cell. Work Package 2 (WP2): Review Financing Proposal The scope of services under WP2 is: Develop and revise a loan application form for facility loan application under IPFF II on-lending component and a check list/format for reviewing IPFF II facility loan application. Review loan proposals assessing technical and financial viability of the infrastructure project to be financed under IPFF II and compliance with the Page 3 of 8
eligibility criteria set forth in the Operational Manual (OM) of IPFF II Project, taking into account the recommendations/ suggestions of the concerned consultants of IPFF II Project Cell on Environmental and Social Risk Management issue (if available) and provide recommendation on the loan proposal. Review the procurement process of goods, services and works of infrastructure sub-project under consideration for IPFF II funding and ensure that concerned standard commercial practices have been followed by the investment sponsor in procurement of goods, services and works till the approval of the concerned project by World Bank. Assist IPFF II project Cell to fulfill the requirements of the World Bank to facilitate the provision of approval from the World Bank on infrastructure financing. Maintain liaison/contact with entrepreneurs, PFIs, line ministries and other relevant agencies to carry out the loan review process properly. Amend/update the review reports to incorporate any observation/comments of IPFF II Project Cell and/or the World Bank (WB) on the review report as and when required. Prepare Half Yearly Progress Report of IPFF II project in consultation with IPFF II Project cell. Any other tasks related to financial review of sub projects assigned by IPFF II project cell. Work Package 3 (WP3): Capacity Building Scope of services under WP3 is: Prepare Training Needs Assessment (TNA) report of IPFF II Project. Prepare overall Training Plan of IPFF II project considering TNA report and TAPP of IPFF II project. Formulate Policy Guidelines of overall Capacity Building Program of IPFF II project to implement Training Plan. Prepare or upgrade modules, schedules & presentations as needed for local capacity building program (except long term certificate courses) and conduct training session for the same. Conduct a study on previous long term local certificate courses of IPFF Project (PPP Series Training Program) and prepare a guideline for similar nature local courses of IPFF II project. Prepare Impact Assessment Report (at least two within the contract tenure) on Capacity Building program of IPFF II project. Page 4 of 8
Prepare quarterly report to inform IPFF II project about the global Trends/Changes/Innovations/Developments on PPP and Infrastructure Financing issues. Prepare and upgrade (as needed) brochure and promotional documents of IPFF II project. Any other tasks related to capacity building assigned by IPFF II project cell. Deliverables and time budget: Ref Deliverables Frequency / Time 1 Work plan and inception report One time [ First month (Second week after contract becomes effective)] 2 Monthly Progress Report on assessment of overall performance over the month 3 Six monthly report on assessment of overall performance over the last six months 4 Other deliverables as per scope of services 5 Final Report on assessment of overall performance over the period of the assignment Every Month Every seventh month ( second week) from the start of the contract As Agreed In the last Month of the Contract Estimated time for the services: Estimated time for doing the services is 52 staff months. Expected time requirement for doing the services is as follows: SLNo. Name of key expert Expected time/staff Month 1. Team leader 8 2. Project Development Specialist 5 3. Financial specialist ( will review at least 20 nos 16 infrastructure projects) 4 Procurement specialist 9 5 Training expert 14 Total 52 Page 5 of 8
The total services will need to be delivered over a contract period of 36 months, but may be increased or decreased depending on the performance of the consultant, project needs and budget. The consultants will work under an "Indefinite Delivery Contract" for the period of 36 months and therefore the actual input from individual expert will depend on the task performed/ assigned by IPFF II project cell. The input provided by individual expert in a particular month will be realised and monitored through monthly time sheet which will be used to calculate payment of the expert for that month considering his/her monthly rate as proposed in the proposal. Qualification and experiences: The firm should have at least 5 (five) years experience in the relevant type of services mentioned above. Firm will engage team leader, key professionals and other staffs to perform the said services. Qualification and experiences of key professional/ positions are mentioned below: Sl No. Personnel Qualification and Experience 1. Team leader ( team leader will be overall in- charge of leading the team, review the quality of deliverables and assign task to the team members. He/ She will ensure timely delivery of the assignment and coordinate with team members) The consultant must have a Masters degree in Engineering/Finance/ Accounting/ Business Administration/ Economics or an equivalent professional degree from reputable University/Institutions. Should previously worked as team leader in at least 2 ( two) related assignments. Must have in-depth knowledge and understanding in designing and implementing large infrastructure projects, good communication skills (oral and written) in Bangla and English, strong computer skill, crisis management skill, strong negotiating and persuading skill, ability to lead a team of professionals and ability to work under pressure. Minimum 15 years of work experience in supervisory/ management level in infrastructure projects. Higher degree with wide experience in infrastructure project financing and working experience in different donor funded projects, PPP projects would be an added advantage. 2. Project development specialist (WP1) The consultant must have at least Masters degree in Finance/Accounting/Economics/ Business Administration or an equivalent professional degree from reputable Universities/Institutions. Professional degree/ membership/ affiliation of any internationally recognized institution related with this task would be given preference. At least 8 (eight) years of practical experience in project development preferably in infrastructure projects. Should Page 6 of 8
have good communication skills (oral and written) in Bangla and English, interpersonal skill, strong computer skill etc. 3. Financial specialist (WP2) The consultant must have at least Masters in Finance/Accounting/Economics/ Project Finance or an equivalent professional degree from reputable University/Institutions. At least 10 ( ten) years relevant professional experience in development and finance of infrastructure project, sound knowledge of project cycle implementation principles, demonstrable experience in moving project to financial closure. Professional qualification like FCMA/CFA/ FCA would be given priority. Experience of evaluating Public Private Partnership (PPP) Infrastructure projects for funding would be an added advantage. Should have good communication skills (oral and written) in Bangla & English, interpersonal skill, strong computer skill etc. 4. Procurement specialist (WP2) The consultant must have a Bachelor degree in Engineering or Master s in Economics/ Business studies/ Finance/ Accounting/ Management/ Law/ procurement or any other relevant field. Professional degree/membership/affiliation of any internationally recognized institution related with procurement would be given preference. At least 8 (eight) years of experience in the field of Procurement/Engineering where the responsibility substantially covers procurement of goods, works and services. Should have strong communication skill in Bangla & English, interpersonal and computer skill. 5. Training expert (WP3) At least masters degree in Business Administration/ Finance/ Accounting/ Management information system or an equivalent degree from a reputed university. Professional degree/membership/affiliation of any internationally recognized institution related with this task would be given preference. At least 8 years experience in related field. Must have track record of preparing training need assessment, training plan & policy. Should have strong communication skill in Bangla & English, interpersonal and computer skill. Selection procedure : Page 7 of 8
The firm will be selected using the Quality and cost based selection [QCBS (National)] method of the World Bank Procurement Regulations for IPF Borrower, July 2016. Page 8 of 8