TERMS OF REFERENCE POST TITLE: AGENCY/PROJECT NAME: PLACE OF ASSIGNMENT: BRANCHLESS AND MOBILE BANKING REGULATORY EXPERT MOBILE MONEY FOR THE POOR Monrovia (Liberia), Vientiane (Lao PDR) and Off-Site 1) GENERAL BACKGROUND UNCDF is the UN s capital investment agency for the world s 48 least developed countries. It creates new opportunities for poor people and their communities by increasing access to microfinance and investment capital. UNCDF focuses on Africa and the poorest countries of Asia, with a special commitment to countries emerging from conflict or crisis. It provides seed capital grants and loans and technical support to help financial service providers reach more poor households and small businesses, and local governments finance the capital investments that will improve poor peoples lives. Financial inclusion means universal access, at a reasonable cost, to a wide range of financial services, provided by a variety of sound and sustainable institutions. The range of financial services includes savings, short and long-term credit, leasing and factoring, mortgages, insurance, pensions, payments, local money transfers and international remittances. UNCDF recognizes the importance of branchless banking (BB) and mobile financial services (MFS) to achieve (i) lower cost domestic transfers and international remittances, (ii) more convenient, affordable, savings options, (iii) a potential platform for microinsurance, government payments and other services, UNCDF, Sida and AusAID are launching a new global programme currently known as Mobile Money for the Poor (MM4P), to work with governments, private and non-profit partners in the LDCs to hasten the scale-up their mobile money operations and to improve the variety of products and services needed reach rural and low income households. MM4P takes an ecosystem approach and is working in a limited group of countries. MM4P identifies the key barriers to the scale up of services in each focus country and then provides a mixture of technical and financial support to key stakeholders (regulators, banks, MNOs, agent networks, and their partners) which are operating in some of the most difficulty and needy markets, including in post-conflict contexts. In doing so, the programme hopes to develop scalable models that can be replicated in other challenging markets. To ensure its success, the programme will work closely with regulators in the host countries and will coordinate efforts closely with other organizations involved in similar work. In Liberia, UNCDF has been active in supporting inclusive finance since 2005 through joint Launch of an Inclusive Finance Sector (LIFS) programme, a joint programme with UNDP in partnership with the Central Bank of Liberia (CBL). The central bank issued Guidelines for Mobile Money Services in April 2011 to respond to the market demand to launch services. At present Liberia has a single mobile money provider, Lonestar, and at least on other mobile network operator (MNO) and perhaps one or more banks are interested in offering BB and MFS. At the request of the central bank MM4P conducted a scoping mission in 2012 and then a further regulatory market assessment mission in 2013. The result of these actions is that LIFS, MM4P and CBL have identified a number of activities to undertake in the country to accelerate the development of BB
and MFS, including support to regulators to draft revised guidelines that creates a more enabling environment. LIFS currently has a full-time technical advisor based in Liberia who is working closely with CBL and MM4P. As the LIFS programme ends in 2014, MM4P is committing its own resources to pursue these activities. In Lao PDR, UNCDF s Making Access to Finance More Inclusive for Poor People (MAFIPP) is a joint UNCDF- UNDP sector support programme in partnership with the Bank of Lao PDR (BOL) which seeks to improve access of poor rural households to a variety of financial services and markets, improving rural household incomes. In July 2012 a team from MM4P was invited by MAFIPP to conduct a scoping mission in regard to the potential for branchless and mobile financial services in helping UNCDF reach its goals. BB and MFS was included as one of four focus areas for MAFIPP, supported by AusAID Lao PDR through an agreement completed in early 2013. At present there are no providers of BB or MFS, however MAFIPP is supporting one MNO and one bank in designing a strategies and plans to do so and other MNOs and banks are also interested. In Lao PDR, there is currently no BB and MFS regulation and appropriate guidelines need to be drafted together with the central bank. MAFIPP has a full-time technical advisor in Laos as well as a part-time expert consultant on BB and MFS. This activity will be completed with MAFIPP resources. The objective of this TOR is to provide support to UNCDF in completing some of the activities related to BB and MFS regulation in both countries. Information on UNCDF may be found at www.uncdf.org 2) OBJECTIVES OF THE ASSIGNMENT The overall objectives are as follows: A. In Lao PDR and in accordance with the MAFIPP annual work plan, to assist MAFIPP and MM4P: in drafting guidelines with the central bank that enable both branchless banking and mobile financial services to be piloted and launched which create an even playing field between banks and approved non-bank providers in designing and implementing the right organization, procedures and documentation within Bank of Lao to receive, analyze and decide on applications for BB and MFS pilots from providers in supporting Bank of Lao to process first applications in advising the central bank s newly formed interdepartmental team on BB and MFS on a watch and see approach to the development of proportional regulation that is FATF compliant in drafting e-money guidelines that enable non-bank providers to safely offer e-wallets B. In Liberia, to assist MM4P and CBL in drafting improved BB and MFS guidelines that create and even playing field between banks an approved non-bank providers, including use of agents in drafting appropriate e-money guidelines that allow for non-bank providers to safely offer e- wallets. At the consultant s discretion and in consultation with BoL, MAFIPP and MM4P, the e- money guidelines may be used to replace the existing Mobile Money Guidelines rather than issuing two new sets of guidelines
3) SCOPE OF WORK AND FINAL PRODUCTS The work will be a mixture of off-site support and on-site assistance in Lao and Liberia to UNCDF, its partners and other identified key stakeholders. Given the quick pace of change in the BB and MFS industry in Lao PDR, and Liberia these activities may be amended or changes from time to time. C. In Lao PDR, to assist MAFIPP and MM4P: Activities Deliverables MAFIPP Workplan Activity: Process to deal with application A. Assist in drafting simple, initial guidelines for the BoL on BB and MFS that give providers adequate flexibility and certainly to pursue pilot projects with use of agents B. Design organization, process and procedures within BoL (department and people involved) to efficiently receive and manage applications C. Design documents/ templates for the process including approvals (letter of no-objection) D. Design efficient process to follow-up pilot projects to ensure that pilots can move smoothly to launch E. Support Bank of Lao to process first applications, identifying key areas of risk relevant to the central bank Simple draft guidelines to enable pilot projects and launch of service Organization and application process for BB and MFS providers Letter of no-objection format Organization and process to follow-up pilots Brief (2-3 page) trip report for each trip in country MAFIPP Workplan Activity: drafting e-money guidelines A. Review documentation about Lao PDR to understand BB and MFS context as well as the existing laws and pending draft laws on banking and payments B. Draft initial version of e-money guidelines and submit to BoL Lao C. Review draft with BoL and sector s stakeholders to update and come with final version draft e-money guidelines for Lao PDR BoL and stakeholders feedback recorded Final version of e-money guidelines for Lao PDR Bank of Lao approval of guidelines MAFIPP Workplan Activity: set up branchless banking working group A. Advise the newly formed interdepartmental BB and MFS working group on the best role and use of the working group B. Advise group on a watch and learn approach to further development of guidelines and regulations that is FATF compliant Draft recommendations on role and working order of BB and MFS working group Draft recommendations on group s plan to implement a watch and learn approach that highlights the appropriate time for the next steps
D. In Liberia, to assist MM4P and CBL in drafting enhanced e-money guidelines A. Review documentation about Liberia to understand BB and MFS context and existing regulation about payments. Review concept note for CBL s governor with main changes for the regulation B. Draft revised Mobile Money Guidelines and/or an initial version of e-money guidelines and submit to CBL C. Review with CBL and involved sector s stakeholders to update and come with final version Draft e-money guidelines for Liberia CBL and stakeholders feedback Final version of mobile money and/or e-money guidelines for Liberia Central Bank of Liberia approval of guidelines Brief trip report (2-3 pages) for the in-country trip 4) TIMELINE, DURATION OF ASSIGNMENT, DUTY STATION AND EXPECTED PLACES OF TRAVEL Indicate the duration of the assignment, duty station and expected places of travel. TIMELINE: Liberia: 1 February, 2014 up to 15 March 2014 Lao PDR: 15 February 2014 30 June 2014 LOCATION(S): Off-site, Lao PDR (Vientiane), Liberia (Monrovia) TOTAL NUMBER OF WORKING DAYS FOR ASSIGNMENT: Liberia: 10 days off-site, 5 days on-site (1 travel) Lao PDR: 15 days off-site, 15 days on-site (2 travels) Estimated Total Number of Working Days: 45 5) PROVISION OF QUALITY, MONITORING AND PROGRESS CONTROLS Monitoring of progress shall be measured both according to the activities of the contractor as well as the performance of the UNCDF partners. A. The contractor must secure approval from UNCDF prior to any on-site trip. The contractor will provide a brief TOR for the trip and the names of the contractors employees conducting the mission. Submissions should be made to mm4p@uncdf.org B. The contractor will conduct briefings to the UNCDF on-site country technical advisors prior to departure of on-site missions upon request of UNCDF. C. The contractor will organize a monthly conference call with the partner, UNCDF, and contractor to discuss progress under the MOU, organized by the contractor. D. The contractor shall submit a monthly Report the activities (no more than 5 pages) in the country
The primary contact for this TOR shall be the MM4P technical specialist: François Coupienne (françois.coupienne@uncdf.org). The primary in-country contact in Liberia shall be the UNCDF Country Technical Advisor: Amani M Bale (amani.mbale@uncdf.org) The primary in-country contact in Lao PDR shall be the UNCDF Country Technical Advisor: Cedric Javery (cedric.javery@uncdf.org) and the in-country expert consultant Krishna U.M. Thacker (krishna@microsave.net) 6) CONSULTING FEES,STANDARD TRAVEL COSTS AND LIVING EXPENSES : Consulting Fees/Personnel Costs Applicants should note that the maximum daily rate under UNCDF policy is US$1000 for individual consultants and the total fee should include off-site and in-country time, but not travel and DSA costs) Travel Costs/Living expenses All envisaged travel and DSA costs must be included in the financial proposal. Travel costs: include all travel to join duty station/repatriation travel. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the IC wish to travel on a higher class he/she should do so using their own resources. In the case of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and Individual Consultant, prior to travel and will be reimbursed Terminal Expenses: refer to the transport costs to and from airports. The current terminal is 38 USD for both Monrovia and Vientiane. Terminal; fees may not exceed the rates listed above but applicants may choose to offer a lower DSA rate in their financial proposal. Living expenses (DSA including hotels, meals, and incidentals): shall not exceed the maximum rate allowed in accordance with the International Civil Service Commission ICSC rates and the UNCDF travel rules. The current Daily Sustenance Allowance (DSA) is US$235 per day for Monrovia, Liberia. And US$151 for Vientiane, Lao PDR. DSA may not exceed the rates listed above but applicants may choose to offer a lower DSA rate in their financial proposal. Please refer to the template in Annex II for further information. The payment schedule related to this assignment shall be made in tranches upon the completion of the following deliverables: Signature of the contract 20% Upon completion of the Liberia deliverables: 80% To assist MM4P and CBL in drafting enhanced e-money guidelines Upon completion of the Lao PDR deliverables: To assist MAFIPP and MM4P as per work plan activity Total 100% 7) QUALIFICATIONS AND LEVEL OF CONSULTANTS
Education: Post graduate degree in Economics, Finance, Banking, Law, Development, Education or related fields or equivalent experience; Experience: Experience working on the legal and regulatory issues related to branchless and mobile financial services, including the drafting of guidelines, policies, regulations, laws or similar documents; Strong knowledge on the business models of mobile and branchless financial services for banks and non-banks in the developing country context; Knowledge of payment systems laws and regulations; Experience working directly with central bankers in developing countries; Familiarity with the concepts in to financial inclusion, a broad knowledge of related disciplines, as well as an in-depth knowledge of relevant organizational policies and procedures; Familiarity in best practices in agent banking agents; Previous work in Liberia and/or Lao PDR or a similar environment preferred; Fluent in English; Work Style: Demonstrated excellent written and oral communication skills in English (a technical writing sample may be requested); Strong ability to communicate and function effectively in international/multicultural environment; High level planning, organisational and time management skills, including flexibility, attention to detail and the ability to work under pressure to meet changing deadlines; Well developed interpersonal skills, including the ability to liaise effectively at very senior levels; Analytical and problem solving skills of a high order, including the ability to formulate recommendations and advice 8) APPLICATION Applications close on Wednesday, 22 January, 2014, at 17:01 Central European Time. Applications will be rated on both technical and financial submissions. The best proposal that will be awarded the contract shall be selected through the following method: Highest rated proposal using the combined scoring method, which assigns the weight distribution between the technical and financial proposals as set out in the RFP. The weight distribution shall be 70% technical and 30% financial. All applications must contain the following information: (i) (ii) (iii) (iv) (v) Cover letter with a summary statement of competencies in relation to the TOR Earliest availability and proposed schedule for consultancy Curriculum Vitae Completed P11 Personal History Form with names and current contacts of 3 referees (available from http://sas.undp.org/documents/p11_personal_history_form.doc) Financial proposal for the full months assignment outlining: - Total professional fee (excluding travel, DSA and incidentals but including all other professional expenses such as insurance, taxes, etc.) - Total air travel to and from place of assignment and terminals (transport to and from international airport) for the full number of days in-country - Other expenses including: o Other expenses incurred while offsite Applications are to be sent to:
By mail: UNCDF UN House Rue Montoyer 14, 5 th Floor 1000 Brussels, Belgium Attention: Carlos Escrivá Gil Or electronically : mm4p@uncdf.org referencing UNCDF Regulatory Specialist Both individual consultants and individual employed by a company or institution are welcome to apply. Any individual employed by a company or institution who would like to submit an offer in response to a Procurement Notice for IC must do so in their individual capacity (providing a CV so that their qualifications may be judged accordingly). Please not that in such case the company institution will be asked to issue an i RLA. Women candidates or women-owned businesses are strongly encouraged to apply. i Reimbursable Loan Agreement (RLA): A legal instrument between UNCDF and a Company/institution, according to which, the latter makes available the services of an individual delivering time-bound and quantifiable outputs that are directly linked to payments. An RLA is governed by the provisions of this policy.