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Verification Consultant: Egypt Value Chain Facility

Egypt, 07 October 2019

Project Description:

The European Bank for Reconstruction and Development (EBRD or the Bank) wishes to engage a consultant to help deliver the Egypt Value Chain Facility ("The Facility").

SMEs play a major part in the economy of Egypt, accounting for 55% of GDP. However, SMEs face a number of hurdles in their day to day operations, such as difficulties around business creation and registration, and access to credit, amongst other issues. Very few SMEs engage in export activities, instead they focus on serving local markets, as they lack the internal skills and access to finance needed to implement improvements necessary to meet export market (e.g. EU) requirements.

In this context, EBRD has developed the Egypt Value Chain Facility ("The Facility") to help address these challenges by providing up to EUR 70 mln in the form of senior unsecured loans to participating financial institutions (PFIs) in Egypt, including banks and leasing companies, to on-lend to SMEs[i] for eligible capex investments. Specifically, the Facility targets SMEs that supply to aggregators of value chains, e.g. export-oriented buyers, local processing companies and off-takers, in industries such as agribusiness, manufacturing and services, logistics and distribution, and information and communication technologies (ICT). Improved value chains will support Egyptian SMEs in innovating processes and production, and contribute to increased access to the European Union (EU) market and other advanced markets. The Egypt Value Chain Facility will provide an integrated package of loans, technical assistance, and access to grant mechanisms (concessional finance for partner banks and financial incentives for eligible sub-borrowers).

The majority of the Facility funds will be reserved for capital investments in green economy technologies (e.g. machinery, tools and equipment). This aims to address the lack of available capital and experience that hinders the uptake of green technologies and practices in the local market. The objective is to help reach a critical mass of green technology investment, thus contributing to building a competitive, low-carbon and climate-resilient economy and accelerating the penetration of green technologies and services supporting Green Economy Transition ("GET technologies and services").

Assignment Description:

EBRD intends to select and contract a Verification Consultant.

The expected outcome of the Assignment is the verification of all sub-projects implemented under the Value Chain approach of the Facility, which will incorporate incentive grants, and other approaches involving grants as they are developed. The Verification Consultant (or VC) will undertake the monitoring and verification of completed Value Chain sub-loans by checking and confirming that all Sub-projects have been completed in accordance with the relevant investment plans described in the relevant assessment reports (as prepared and/or reviewed by the Project Consultant), have complied with the Policy Statement of the Facility, and if the project is classified as a green investment, are on track to achieve the planned energy savings.

The selected Verification Consultant is expected to provide the following services:

  • The Verification Consultant will receive a completed Verification Request Form and supporting documents and where necessary will schedule a date for the site visit with the Sub-borrower. The Verification Consultant will conduct ex-post monitoring site visits to all complex (Assisted) Sub-projects, and to a randomly selected sample of at least 10% and up to 20% of the Pre-approved Technology based Sub-projects, to verify proper implementation. All other Pre-approved Technology based Sub-projects will be verified as completed on the basis of a desk-based document review, confirming delivery and installation of the Pre-approved Technology based investment.

  • The Verification Consultant will conduct Verification Reviews (VR) for all Sub-projects implemented under the Facility using the format and procedures provided by the EBRD.

  • The Verification will result in a Verification Report confirming and providing sufficient evidence that the Sub-project has been completed in line with the eligibility criteria of the Facility. Where the Sub-project is classified as a green investment, the Verification Consultant will confirm the investment is on track to achieve the planned energy savings.

  • The Verification Consultant will be responsible for calculating the amount of EU-funded incentive payment due to sub-borrowers.

  • For all Sub-projects classified as green investments, the Verification Consultant will record all verification information related to financed sub-projects in the EBRD Management Information System (MIS) database after verification. For the green portion of the Facility, the MIS database will provide for Facility progress tracking as well as a centralised filing system for uploading of deliverables. The consultant shall maintain tracking, monitoring and reporting in the MIS and ensure the use of standard forms and accurate data. The MIS will provide the necessary information on Sub-projects, generate reports to the EBRD and reconcile the records of PFIs and the EBRD.

  • For Sub-projects which do not meet the eligibility criteria for green investments, the Verification Consultant will undertake an offline excel-based standardized report.

  • The Consultant will report to the Operation Leader at the EBRD and will submit all reports and deliverables for approval through the MIS in case of green investments and directly to EBRD Operation Leader for non-green investments. The EBRD will monitor the activities of the Consultant and the PFIs.

  • The Consultant will be available for any meetings organised by the EBRD and will discuss and evaluate any area of concern with the execution of work under the Assignment or for any matter related to the Facility.

The Verification Consultant will work with the Project Consultant to implement the Facility. The firm which is selected for the Egypt Value Chain - Project Consultant assignment will not be eligible to apply for the Egypt Value Chain - Verification Consultant assignment and vice versa.

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