Hiring of Credit Consulting Firm
Report to: Head of CIC
Please find below the relevant TORs for the required consultant.
Please submit your technical and financial proposals at:
- Scope of Work/Term of Reference
- Work Item 1 – DEVELOP PROGRAM’S FRAMEWORK / POLICES AND PROCEDURES:
Establish a transaction framework including all policies and terms and conditions to be followed as part of Karandaaz SME financing program:
- Develop an Operational Framework, which may include:
- Due diligence procedure to be adapted in the Selection/Onboarding of Corporates/SMEs eligible for Karandaaz financing.
- Develop the Process for and responsibilities of the individuals involved in the credit Initiation, Approval and Monitoring of the financing facility.
- Develop the mechanism for the monitoring of facility security.
- Identify the Departmental Responsibilities with respect to the Reporting of financing facilities.
- Develop the process for Portfolio Management and Review.
- Recommend Early Warning System & Reporting Guidelines.
- Align the Karandaaz Financing Program operations with the Approved Investment Policy of Karandaaz.
- Work Item 2 – TRANSACTION & PROGRAM MONITORING-ONGOING:
As determined by Karandaaz, the consultant will:
- Obtain Financial Reports as per Agreed Term Sheet from the Corporates and SMEs within ten (10) business days after the end of each monthly period.
- Obtain Impact Reports as per Agreed Term Sheet from the Corporates and SMEs within thirty (30) business days after each quarterly period.
- Inspect Corporate’s books, records, financial statements related to the Program at the principal places of business.
- Inspect SMEs bank account statements, books and records related to the Program at the principal places of business.
- Meet and obtain data directly from the Management of the Corporates and SMEs.
- Conduct full review of the books, records and financial statements of SMEs and Corporates if Karandaaz suspects fraud related to the Program.
- INDIVIDUAL TRANSACTION REVIEW:
On case to case basis, and as determined by Karandaaz, the consultant will:
- Monitor the principal and interest repayment cycle and notify the Karandaaz for any corrective action if required.
- Monitor covenants with respect to the approved facilities.
- Review the Facility Security Position and report any instance of discrepancies.
- Authenticate the ultimate beneficiary of the funds.
On a periodic basis, as determined by Karandaaz, the consultant will:
- Review the quality of portfolio including but not limited to infection ratio, payment delays and breach of covenants.
- Identify any gaps or inefficiencies in the program and suggest areas of improvement.
- In the Phase-I of the engagement the Consultant will be required to develop the Framework as per Work Item-I
- In the Phase-II, the Consultant will be engaged on the ongoing basis for the Monitoring & Review of Transaction/Program on the ongoing basis.
- The Engagement is expected to begin in November 2018. The Consultant will be paid a fixed price per transaction over its tenor.
- The Consultant will be required to provide reports to Karandaaz from the SMEs and Corporates as mentioned in the Program Review.
- Karandaaz may terminate the Engagement at any time at its sole discretion, with the obligation to pay only the pro rata fees for actual time and costs incurred at the point of termination.
- Vendor Requirements (including explanations)
- The evaluation criteria, relevant sub-criteria, and point system to be used to evaluate the Technical Proposals shall be: Technical Proposal (100% of total score). Minimum score of 50 (fifty) for qualification is required.
Competencies of Firm (40%)
- Adequate knowledge about credit processes of the financial institutions,
- Substantial track record in conducting similar assignments relevant to this TOR,
- Strong on ground presence in Pakistan of firm or associated firm in case of a consortium
Firm experience (40%)
- At least 10 years of experience in creating operational framework for financial instructions,
- At least 5 years of experience in post deal monitoring for financial institutions,
- Previous work in Pakistan is a requirement
- Qualifications and competence of personnel assigned to the project to be provided bearing in mind the following:
- Proven experience in financial intuitions on related subjects.
- Qualified staff with Master’s in Finance or business administration or Accounting degree;
- Well written and spoken English;
- Complete list of deployed team members with their skill level and time durations that they will be committed for this project
Please provide your proposals by COB 12th November 2018, please make sure that your proposals are inclusive of all applicable taxes.