The World Bank is working with the Rwanda Business Development Fund (BDF) to develop and launch new risk-sharing mechanisms to  enhance access to credit to Micro, Small and Medium Enterprises (MSMEs) and mitigate climate related risks. To achieve this the project will support the development of  (i) a contingent bridge lending window (BLW) providing emergency loans to support MSMEs affected by  climatic shocks, and (ii) an insurance backstop mechanism for the BLW using market-based risk transfer instruments.

The objectives of this assignment are twofold: i) to assist BDF in finalizing and implementing the pilot phase of the BLW and establishing it within BDF and ii) to design and place an insurance product that will function as a protective backstop for the BLW, in a manner such that the payout is used to secure the capital allocated to the BLW and to provide surge capital in the event of a severe event.

The bridge loan product offered under the BLW will provide short-term lending to eligible and climatic shock affected MSMEs, covering their credit servicing costs for a limited time. The BLW will be activated during pre-defined floods/excess rain, droughts/lack of rains and landslides events that elevate the risk of non-performing loans. With BLW designed to cover frequent and lower-severity events, the window is expected to be activated on average every two to five years. Initially the target market will be loans guaranteed by the Business Development Fund (BDF).  Participating financial institutions (PFIs) receive concessional liquidity for rescheduling eligible MSME loans and the capital of the BDF guarantee is not called upon. PFIs will facilitate BLW loans to eligible businesses with an existing loan. From a systemic perspective, BLW will de-risk shock exposed MSMEs, facilitating greater overall lending. 

The insurance backstop's objective is to provide surge capital to the BLW in the event of severe shocks. The insurance backstop will provide rapid payouts that will augment the BLW's capital. The BDF can then use this surge capital to provide bridge loans to MSMEs affected by shocks and/or cover NPL cost.

SELECTION OF CONSULTING FIRMS BY THE WORLD BANK GROUP

REQUEST FOR EXPRESSION OF INTEREST (EOI)

Electronic Submissions through WBGeProcure RFx Now

ASSIGNMENT OVERVIEW

Assignment Title: Rwanda - Design and development of the Bridge Lending Window and Placement of Insurance Backstop

Assignment Countries:

• Rwanda

ASSIGNMENT DESCRIPTION

The World Bank is working with the Rwanda Business Development Fund (BDF) to develop and launch new risk-sharing mechanisms to enhance access to credit to Micro, Small and Medium Enterprises (MSMEs) and mitigate climate related risks. To achieve this the project will support the development of (i) a contingent bridge lending window (BLW) providing emergency loans to support MSMEs affected by climatic shocks, and (ii) an insurance backstop mechanism for the BLW using market-based risk transfer instruments.

The objectives of this assignment are twofold: i) to assist BDF in finalizing and implementing the pilot phase of the BLW and establishing it within BDF and ii) to design and place an insurance product that will function as a protective backstop for the BLW, in a manner such that the payout is used to secure the capital allocated to the BLW and to provide surge capital in the event of a severe event.

The bridge loan product offered under the BLW will provide short-term lending to eligible and climatic shock affected MSMEs, covering their credit servicing costs for a limited time. The BLW will be activated during pre-defined floods/excess rain, droughts/lack of rains and landslides events that elevate the risk of non-performing loans. With BLW designed to cover frequent and lower-severity events, the window is expected to be activated on average every two to five years. Initially the target market will be loans guaranteed by the Business Development Fund (BDF). Participating financial institutions (PFIs) receive concessional liquidity for rescheduling eligible MSME loans and the capital of the BDF guarantee is not called upon. PFIs will facilitate BLW loans to eligible businesses with an existing loan. From a systemic perspective, BLW will de-risk shock exposed MSMEs, facilitating greater overall lending.

The insurance backstop's objective is to provide surge capital to the BLW in the event of severe shocks. The insurance backstop will provide rapid payouts that will augment the BLW's capital. The BDF can then use this surge capital to provide bridge loans to MSMEs affected by shocks and/or cover NPL cost.

FUNDING SOURCE

The World Bank Group intends to finance the assignment / services described below under the following:

• BB: Bank Budget
• TF0B5808: SALNTF

ELIGIBILITY

Eligibility restrictions apply:

• [Please type list of restrictions]

SUBMISSION REQUIREMENTS

The World Bank Group invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Firms may associate to enhance their qualifications unless otherwise stated in the solicitation documents. Where a group of firms associate to submit an EOI, they must indicate which is the lead firm. If shortlisted, the firm identified in the EOI as the lead firm will be invited to the request for proposal (RFP) phase.

Expressions of Interest should be submitted, in English, electronically through WBGeProcure RFx Now

NOTES

Following this invitation for EOI, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.

Only those firms which have been shortlisted will be invited to participate in the RFP phase. No notification or debrief will be provided to firms which have not been shortlisted.

If you encounter technical difficulties while uploading documents, please send an e-mail to the Help Desk at corporateprocurement@worldbank.org prior to the submission deadline.