Request for Proposal (RFP) 30 March 2012 Dear Sir/Madam, RFP for the Provision of Consultancy Services for

Capacity Building for Staff and Clients of and other Microfinance Institutions and Microfinance Banks Apendix: Instructions to Offerors A. Introduction Annex III Term of Reference

Capacity Building for State Supported Microfinance Institutions and Microfinance Banks. Private Sector Development Programme

The Project .plan to organize an intensive participatory microfinance management training program for its Staffs and Clients as well as other companies involved in the provision of other financial services i.e. microfinance institutions and microfinance banks offering financial services to the poor. This training is expected to allow participating employees of these institutions develop the perspective and practical skills necessary to manage, improve and expand their microfinance services to the poor. This is focused at strengthening existing microfinance institutions, hence leading to an expanded base of private sector based of financial service providers targeting business and market development for SMEs in the country. To the clients of these companies, it is expected that the training will help meet the need of capacity development that has been the bane of such client to better manage the form of assistance offered them by their respective companies.
RFP for the Provision of Training Services for Capacity Building for Staffs and Clients. and other Microfinance Institutions and Microfinance Banks

Background Microfinance has been found to be the most appropriate way to provide financial services to majority of Ghanaians. More than three-fourth of the population of Ghana live under two dollars a day. Therefore, micro finance is probably the most appropriate way to rovide financial services to a majority of Ghanas population. Its therefore not surprising that the government perceives microfinance to be central to achieving the greater goal of poverty alleviation. Through microfinance the government aims to provide poor entrepreneurs, especially those in the informal sector, with greater access to customized financial services (Al-Bagdahi, 2002; Jha et al., 2006). Microfinance is an attractive development strategy for a wide spectrum of actors, combining values of market-driven service provision, entrepreneurship, self-help, and aid to the poor (Otero & Rhyne, 2001). According to CGAP (2009), it has enjoyed an unprecedented growth in emerging markets from 2004 to 2008. Microfinance as a sector has the potential to reduce poverty by bringing a significant improvement in the lives of the active poor who are largely women. Barnes (2001) found a positive impact of microfinance on the clients in Zimbabwe, India and Peru. Therefore, the potential of microfinance to reach large numbers of the poor is now well understood (Zeller & Meyer, 2002). Comprehensive impact studies have demonstrated that: microfinance helps very poor households meet basic needs such as to buy food, access healthcare, educate their children, put aside savings and lay the foundation for a better future and protect against risks; the use of financial services by low-income households is associated with improvements in household economic welfare and enterprise stability or growth; by supporting women's economic participation, microfinance help to empower women, thus promoting gender-equity and improving household well-being (Opportunity International, 2010). A growing body of evidence links the provision of credit to the poor and a reduction in poverty through the creation of employment, the earning of more regular income, and consumption smoothing. Availability of credit has the potential to enable poor individuals to become economically active; thus, earning more regular incomes; acquiring assets; and becoming collectively less vulnerable to risk. Hossain (1988) found that Grameen Bank clients were economically active in terms of employment. For example, the credit created new employment avenues for the unemployed, and extra employment for underemployed clients (mostly women) between July to November 1985 (the survey period) after they joined the scheme. In Ghana the, Microfinance as a sector has been tipped with the potential of reduce poverty by bringing a significant improvement in the lives of the active poor who are largely women. Unfortunately, this continues to be a

mirage over decades of microfinance finance inception in the country. A number of challenges have been found to confront both client of MFIs and the MFIs themselves. Some of the challenges confronting clients of MFIs are but not limited to: The poors inability to offer marketable collateral for loans Poor institutional viability of micro enterprises Lack of knowledge about microfinance services Shortage of financial capital or misallocation Inability to exploit growth opportunities Few organizational resources and poor governance Low bargaining power Capacity building

Some of the known challenges of MFIs include: Perceived High Risk of Micro Entrepreneurship and Small Businesses High costs involved in small transactions/micro lending Lack of debt and equity funds for MFIs to pass on to the poor Difficulty in measuring the social performance of MFIs Lack of customized solutions for the poor Lack of microfinance training for human resource in microfinance institutions Training and capacity to the stakeholders of the industry is one sure way through which both clients of MFIs and the MFIs can be empowered and strengthened to live up to the expectations of their set objectives. Over the years some service providers such as banks and other donor agencies and development partners have attempted to organize some form of training to stakeholders of the industry but it still remains inadequate and ineffective. This is because, such services so provided are not based on need-felt approach but have normally been on the bases of one size fit all.--------------------- having been in the industry for .. believes that both the company (in particular and other MFIs) can better deal with most of the challenges confronting practitioners and clients of the industry by providing training services for its staff and clients as well as other MFIs. The company therefore proposes a training service provider as a subsidiary to meet this need. Training Objective The objective of this assignment is to design and propose for implementation a training programme that is expected to build the capacity of Management and staff of MFIs as well as Clients and other relevant stakeholders. This is expected to effectively contribute to the better

performance of MFIs initiatives and non-bank financial institutions such as savings and loans companies, credit and other financial services to the poor within the country. The principal objective of the training programme/module to be designed by the proposed company and or third party consultants s is to:

Broaden participants understanding of the functions that contribute to successful performance Supplies an arsenal of tools that can assist managers to access to finance/microfinance initiatives strengthen the performance of their unit. Stimulate the sharing of experiences and strategies for meeting current challenges Expose managers to microfinance experience from other best practices from other parts of the world and inspire more innovative thinking about what might be possible in their pursuit for microfinance services.

A critical element of the proposed training is the design of customized propgrammes specific to the needs of clients and specific MFIs. Target Participants The capacity building programme is designed for any of the following Senior/management staff involved in microfinance operations: Senior Managers (CEOs, Managing Director, Directors, Genera Managers, Branch managers, Internal Auditors, Supervisors, etc) of MFI and NBFIs.. Clients of . And that of other MFIs. Scope of Work ------ will shoulder the responsibility to ensure quality assurance. The training will be coordinated with team of experts that ------- will provide and third party consults that may be outsourced on as and when the need arises. The training is planned for -----participants of the company and to be organized in ------ (Town) at ------ (venue) between the --------last week in --and first week in ----- (it may depends on you). Specific Task The responsibility of the training firm will include designing in Customer service and Book keeping and Accounting Practices, finance, Business development, Entrepreneurship etc (or suggesting) appropriate and detailed curriculum to deliver ---------- objective and the requirement of intended participants as described above. Specifically, they are expected to:

 Prepare suitable training materials and methods with case studies or business to illustrate the methodologies to be used, based on designed training programme Handle all logistics of the training programme Ensure adequate arrangement of participants accommodation and field visit transportation during the training (if relevant) Engage/propose at least two qualified and experience trainers as facilitators for the designed training programme Conduct the training in a more participatory manner Submit a set of training materials with all forms and exercises used Evaluate the effectiveness of training through pre and post test/evaluation of the participants Organize and coordinate field trip/visit during the training Arrange any other activities required for the successful completion of the training. Deliverables A participatory and intensive training module for participants A training inception report and a final report (may be submitted to the CEO of the company)

Reporting The training coordinator is required to submit the following reports: Training Inception Report submitted not later than 1 week after commencement of the assignment. The report will outline adjustment to the proposed designed module vis-a-vis .. (The companys) suggestions on quality assurance. Overview of methodology indicating the planned training session and administrative arrangements. This should also indicate arrangement and scheduling of the training streams with status on making adequate logistics arrangement for the training. Final Report to be submitted no later than 2 Weeks after conclusion of the training session. This will include detailed training programme documentation; including results achieved such as individual and state strategy developed by participants. It should also include participants feedback and both the pre and post training evaluation.
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Appendices Proposing Firm to Submit (may list as many as possible the various modules you intend to run) Statement of understanding of the scope of work with designed training module(s) to deliver the training scope and objective Detailed agenda for the proposed designed training module, methodology to be used and list of teaching materials and practical support to be used in the training process CVs Proposed training facilitators and coordinators Estimative budget of training services and guide elaboration, as well as cost of site visits to if required

Appendix

PROPOSAL SUBMISSION FORM/COVER LETTER Dear Sir / Madam, Having examined the Solicitation Documents, the receipt of which is hereby duly acknowledged, we, the undersigned, offer to provide Consultancy Services for the design and editing of UNDP Nigeria 6th Country Programme Report (2003 2008).for the sum as may be ascertained in accordance with the Price Schedule attached herewith and made part of this Proposal. We undertake, if our Proposal is accepted, to commence and complete delivery of all services specified in the contract within the time frame stipulated. We agree to abide by this Proposal for a period of ---- days from the date fixed for opening of Proposals in the Invitation for Proposal, and it shall remain binding upon us and may be accepted at any time before the expiration of that period. We understand that you are not bound to accept any Proposal you may receive.

Dated this day /month

of year

Signature

(In the capacity of)

Duly authorised to sign Proposal for and on behalf of

RFP for the Provision of Training Services for Capacity Building for Staffs and Clients. and other Microfinance Institutions and Microfinance Banks

ITEMS CONSULTANCY FEES Trainers Consultancy fees Accommodation Per diem Sub-total Participants Cost Per diem Accomodation Sub-total Training Firms Staff Cost Per diem Phone calls Accomodation Sub-total

Numb Daily er of Rate Staff AMOUNT (N)

Estimat ed Amount

RFP for the Provision of Training Services for Capacity Building for Staffs and Clients. and other Microfinance Institutions and Microfinance Banks

HALL & FEEDING Hall Tea break Lunch Refreshment Sub-total Training Material Training workbook Multimedia projector Printing of training materials Folders,flipboard charts,markers,writing pads etc Projector screen Sub-total Field Visit Visit to a institution Sub-total Total Admin Cost of (Specify %) Grand Total microfinance

Course Duration Additional Price Schedule (GHs) 1 days 2 days 3 days cost if certification required GHS Number of pages in the case study 6-10 Participants 11-20 pages 21-35 36+ pages 250 200 145 125 GHS 400 350 250 200 GHS 450 550 350 300 GHS

1. 2.

Terms and Conditions: I. II. Payments to be made only 100 % refund if we are unable to process your request or provide any solutions to you before the deadline.

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Apendix

PERFORMANCE SECURITY FORM To: . WHEREAS [name and address of Contractor] (hereinafter called the Contractor) has undertaken, in pursuance of Contract No. . dated . , to execute Services .. (hereinafter called the Contract): AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall furnish you with a Bank Guarantee by a recognised bank for the sum specified therein as security for compliance with his obligations in accordance with the Contract: AND WHEREAS we have agreed to give the Contractor such a Bank Guarantee: NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you, on behalf of the Contractor, up to a total of [amount of guarantee] [in words], such sum being payable in the types and proportions of currencies in which the Contract Price is payable, and we undertake to pay you, upon your first written demand and without cavil or argument, any sum or sums within the limits of [amount of guarantee as aforesaid] without your needing to prove or to show grounds or reasons for your demand for the sum specified therein. The guarantee shall be valid until a date 30 days from the date of issue of a satisfactory certificate of inspection and testing by the procuring UN entity.

B. SIGNATURE AND SEAL OF THE GUARANTOR Date ................................................................................................................ ......

RFP for the Provision of Training Services for Capacity Building for Staffs and Clients. and other Microfinance Institutions and Microfinance Banks

Name of Bank/Company ............................................................................................... .......... Address ........................................................................................................... ....

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