Consultancy Services for the Design and Establishment of a Wholesale (Apex) Development Finance Framework

REQUEST FOR EXPRESSIONS OF INTEREST (CONSULTING SERVICES – FIRMS SELECTION)

FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA ADELE PROJECT (P171742)

Credit No.: IDA 68570

Assignment Title: Consultancy Services for the Design and Establishment of a Wholesale (Apex) Development Finance Framework

Reference No. ET-DBE-571276-CS-QCBS The Federal Democratic Republic of Ethiopia has received World Bank financing for the Access to Distributed Electricity and Lighting in Ethiopia (ADELE) Project. It intends to apply part of the proceeds to consulting services.

The Development Bank of Ethiopia (DBE) is one of the state-owned financial institutions providing project finance and lease financing for small and medium enterprises (SMEs) to support the country's overall economic development. In addition to financing projects, the bank serves as a financial intermediary that administers funds and appraises and monitors participating financial institutions through its wholesale financing program, ensuring successful project implementation. 2. DBE invites expressions of interest (EOIs) from legally formed consulting firms to provide consultancy services for the Design and Establishment of a Wholesale (Apex) Development Finance Framework. 3. The consulting services (“the Services”) comprise technical assistance to the Development Bank of Ethiopia (DBE) to design, document, and prepare for implementation a wholesale (apex) development finance capability as an institutional pillar of the Bank. The services include the design of a wholesale banking framework covering the lending model and the intermediary engagement model; an assessment of the institutional, legal, and delivery structure options for housing the wholesale function; the development of a Wholesale Lending Policy and Operational Manual and of a credit guarantee and de-risking framework grounded in an explicit additionality framework; the design of a technical advisory and capacity-building program for participating financial institutions, including a dedicated module on expanding outreach to women entrepreneurs and women consumers; the integration of environmental and social risk management into intermediary accreditation and supervision; and support to DBE in preparing pilot wholesale arrangements and the associated portfolio segregation and ring-fencing arrangements. The assignment is financed under Sub-component 5.3 of the project. The implementation period is approximately twenty (20) weeks from contract signature, with the consultant based primarily in Addis Ababa for the core design and approval phases. 4. The Development Bank of Ethiopia now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the Services. Interested consultants should provide information demonstrating the required qualifications and relevant experience to perform the services. The shortlisting criteria are:

4.1. Relevant experience of the firm

Assignments count only if completed within the last ten (10) years and only where the consultant acted as lead firm or joint venture member – sub-consultancy roles do not count. A single assignment may satisfy more than one of the requirements listed below. At least three (3) completed assignments involving the design of wholesale or apex lending frameworks, on-lending or refinancing facilities, blended-finance or credit-guarantee structures, or DFI institutional design. Of these, at least one (1) was carried out for a development finance institution, state-owned development bank or apex financial institution. At least one (1) assignment involving the design or operationalization of a credit guarantee, first-loss, risk-sharing or partial credit guarantee instrument, including its pricing, eligibility and claims arrangements. At least one (1) assignment on a World Bank or other multilateral-financed line of credit, apex facility or financial intermediary lending operation. At least two (2) assignments delivered in Sub-Saharan Africa or comparable frontier and emerging markets. For this purpose, a country is a comparable frontier or emerging market if, as at the date of the EOI submission deadline, it is (a) eligible for IDA financing (including blend countries), (b) classified by the World Bank as a low-income or lower-middle-income economy, or (c) a constituent of the MSCI Frontier Markets Index. Consultants must state, for each assignment relied upon, the country and the limb (a), (b) or (c) relied upon.

Assignments consisting solely of the following do not count under this sub-section 4.1: general management or organizational consulting; audit, tax or accounting services; IT or core-banking system implementation; training delivery without design content; market or feasibility studies without design of a lending framework or instrument; retail or corporate lending work with no financial-intermediary component.

4.2. Technical and Managerial Capability of the Firm

The consultant demonstrates in-house coverage of the following disciplines through named permanent professional staff: development finance/apex lending; credit risk; financial modeling; institutional or organizational design; inclusive/gender-responsive finance. An organogram and headcount by discipline are required. There is no minimum total headcount ; the in-country mobilization requirement set out below tests capacity to deliver at the scale of this assignment. The Consultant has a documented quality assurance and project management system (ISO 9001 certification or an equivalent internal QA manual, described in no more than one page). The Consultant has completed at least one (1) assignment in the last seven (7) years in which it mobilized and sustained a team of five (5) or more international and national experts in-country for a period of four (4) months or more , demonstrating capacity to deploy in Addis Ababa for an engagement of approximately 20 weeks. Evidence: client name and contact, assignment dates, team size and composition, a