Fund For Inclusive Finance Mannual Laos

Government of Lao Peoples Democratic Republic Bank of the Lao PDR
The Fund for Inclusive Finance Operations Manual

Project ID: 00076452 Programme Name: Making Access to Finance More Inclusive for Poor People
FIF, Operational Manual 1 | P a g e
Acronyms AusAID BOL DTMFI FIF FSP FSSO IC Lao PDR MAFIPP NDTMFI NFSP NIM NPD NPM PBA PMC RFP SCU TA/ta TS UNCDF Australian Agency for International Development The Bank of the Lao PDR (Central Bank of Laos) Deposit Taking Microfinance Institution Fund for Inclusive Finance Financial Service Providers Financial Sector Support Organization Investment Committee Laos People Democratic Republic Making Access to Finance more Inclusive for Poor People Non deposit taking microfinance institution Non- Financial Service Providers National Implementation Modality National Project Director National Project Manager Performance Based Agreement Programme Management Committee Request for Proposal Savings and Credit Union Technical Assistance Technical Specialist United Nations Capital Development Fund
Ex rate: 1 $US= 7,969Kip
Contents
Acronyms ........................................................................................................................................ 2 Introduction .................................................................................................................................... 4 1. 2. 3. 4. 5. 6. 7. 8. 9. Raison dtre - Fund for Inclusive Finance in Lao PDR .......................................................... 5 FIF Focus ................................................................................................................................. 5 FIF Support Instruments ......................................................................................................... 7 FIF Size, Duration and Additional Funding .......................................................................... 10 FIF Eligibility ...................................................................................................................... 1110 Language and Currency .................................................................................................... 1413 FIF Process from Expression of Interest to Disbursement Step by Step ........................ 1413 Management of FIF facility .............................................................................................. 2322 Changes to Manual........................................................................................................... 2322
List of Tables Table 1 FIF support thematic areas......................................................................................................... 5 Table 2 Institutional Age and Windows of Support .............................................................................. 98 Table 3 FIF Fund Amount Limits per instrument .................................................................................. 98 Table 4 Minimum Eligibility Criteria for Institutions Applying under Innovative window................ 1211 Table 5 Level of Due Diligence .......................................................................................................... 1615 Table 6 FIF process flow chart........................................................................................................... 2221 List of Annexes Annex 1 Loan Policy .......................................................................................................................... 2524 Annex 2 Call for Expression of Interest ............................................................................................. 2625 Annex 3 Expression of Interest Template ......................................................................................... 3029 Annex 4 EOI Workshop Agenda tentative ...................................................................................... 3433 Annex 5 EOI Assessment Criteria ...................................................................................................... 3534 Annex 6 EOI decision minutes of meeting ........................................................................................ 3937 Annex 7 FIF Application RFP and Forms............................................................................................ 4038 Annex 8 Pre Application Technical Assistance guideline .................................................................. 4448 Annex 9 Due Diligence Assessment and Report ............................................................................... 4549 Annex 10 Investment Committee Guidelines ................................................................................... 5357 Annex 11 FIF Appraisal Format ......................................................................................................... 5559 Annex 12 IC approval format ............................................................................................................ 5762 Annex 13 Performance Based Agreements ...................................................................................... 5964 Annex 14 Performance Based Agreement Template for Grants ...................................................... 6165 Annex 15 Performance Based Agreement Template for Loans ........................................................ 6973 Annex 16 Performance Based Agreement Template for Technical Assistance ................................ 7074 Annex 17 Funding Request Process .................................................................................................. 7781
Introduction
Making Access to Finance More Inclusive for Poor People (MAFIPP) is a four year UNCDFs initiative founded by AusAID and implemented by the Bank of the Lao PDR (BOL). MAFIPPs objective is to increase access to financial services to low income households and microentrepreneurs on a sustainable basis. In this sector based programme, MAFIPP will play a role of market facilitator to advance financial inclusion in the Lao PDR. Therefore, MAFIPP interventions are at micro, meso and macro levels. At macro level MAFIPP will undertake, for the first time in the Lao PDR, a comprehensive financial diagnostic survey to provide market information on the depth offinancial inclusion in the Lao PDR, and it will make this information available to the market actors. In addition, MAFIPP will work on regulatory and policy issues. At meso level MAFIPP will build capacity of financial service support organizations so that they can provide continuing support to the retail sector. Finally, at retail level MAFIPP will provide technical assistance and financing support to a broad array of market players to strengthen institutional capacity and facilitate the development of the retail actors to advance financial inclusion. As a result of these efforts 140,000 low income people will be left with better financial products and services. Within this context, MAFIPP goals are to: Increase numbers of people who have access to financial services in the Lao PDRwith a focus on low income people. Improve financial and operational performance of organizations serving low income and poor people. Diversify financial product offerings for low income consumers. Strengthen willingness and ability of commercial banks to understand and respond to the needs of low income groups. Improve technical capacity of financial service support organizations. Improve scope and accuracy of market information and build body of knowledge, and; Build a body of local experts on microfinance and inclusive finance. In order to meet its role, of a market facilitator, MAFIPP programme has developed a specifically designed modality Fund for Inclusive Finance(FIF) to meet programme objectives. This document (hereafter referred to as Operations Manual) outlines the ways FIF will operate.
1. Raison dtre - Fund for Inclusive Financein Lao PDR

1.1. Lao financial sector is in nascent stage. There are relatively few financial institutions with strong capacity to serve the financial needs of low income people in the Lao PDR. Market information is weak, and technical capacity of the market actors is low. Combined together, these factors contribute to low financial inclusion in the Lao PDR. Given MAFIPP mandate, the FIF role is to improve market intelligence, build capacity of market actors and provide financial incentives to market actors to advance financial inclusion in the Lao PDR. FIF is MAFIPPs specifically designed modality to meet programme objectives.
1.2.
1.3.
2. FIF Focus
2.1. MAFIPP is a sector based programme advancing financial inclusion in the Lao PDR. Given its broad objectives, and the level of financial inclusion in the Lao PDR. FIF will provide support under two windows: Innovative and Strategic window. Each window will support a number of themes that combined together advance financial inclusion
Table 1 FIF support thematic areas
Innovative Window Thematic Areas 1 Financial Product Innovations 2 Delivery Methodologies 3 Payment Systems
Strategic Window Thematic Areas 4 Market Information and Intelligence 5 Expansion 6 Operational and Financial Systems Development 7 Capacity Building 8 Graduation 9 Responsible Finance and Client Protection
2.2.
Innovative window is seen as a support and encouragement for organizations to innovate by making the strategic and business shifts necessary to develop a better range of products and services to accelerate financial inclusion. FIF will support three thematic areas of innovations: 2.2.1. Thematic Area 1: Financial Product Innovations for low income consumers. This thematic area focuses on innovations in product features and types of products available for low income people. Broadly, financial products of interest will be: loans, savings and micro-insurance family of financial products. 2.2.2. Thematic Area 2: Delivery methodologies to expand outreach of financial services. This thematic area focuses on innovations in delivery methodologies
through which low income people can access services. Broadly, delivery methodologies of interest will be: individual based methodologies, group based methodologies or other innovative ways to broaden access to finance. 2.2.3. Thematic Area 3: Payment systems though use of technology . This thematic area focuses on leveraging technology to accelerate uptake of financial products and services. Broadly, technology of interest will be: mobile banking, electronic payments, branchless banking, ATMs, POS, and other similar technology based solutions. 2.3. Strategic window is seen as a support and encouragement for organizations to seek ways to improve cost effectiveness, maximize long term sustainability and profitability so that the sector can reach maturity and scale. FIF will support 5 thematic areas under its strategic window: 2.3.1. Thematic area 4: Market Information and Intelligence. This thematic area focuses on acceleration of the production and application of knowledge products, including research and tools aimed at both government and market actors engaged in (or considering to) support financial inclusion actors. Broadly, market information of interest will be: financial inclusion diagnostic studies, market research, evaluations and other similar studies that broaden understanding of the supply and demand for financial services. 2.3.2. Thematic area 5: Expansion. This thematic area focuses on acceleration of outreach with a focus on rural and hard to reach areas. Broadly, expansion will focus on branch expansion. 2.3.3. Thematic area 6: Operational and Financial system development at retail level.This thematic area focuses on identification and support of strengthening of operational and financial systems of market actors. Broadly, operational and financial systems of interest will be: MIS systems, HR, Marketing and other areas of operation within financial institutions. 2.3.4. Thematic area 7: Capacity building meso and macro market actors. This thematic area will focus on working with meso and macro level actors to help strengthen dialogue, to help them design, strengthen and launch professional technical assistance services as well as to strengthen dialogue between market actors and the regulator and policy makers. Broadly, capacity building of interest will be: course design, training of meso level actors, business plan support, advocacy and promotion of dialogue among sector actors and regulator, sector coordination and the like activities. 2.3.5. Thematic area 8: Graduation from registered to licensed institutional form. This thematic area will focus on supporting those market actors that wish to graduate from one institutional form to the other. Broadly this will involve technical assistance targeting institutional transformation. 2.3.6. Thematic area 9: Responsible Finance and Client Protection. This thematic area will focus on improving transparency of financial sector and accountability to the customers. Broadly, responsible finance areas of interest will be: Awareness around MIX market performance reporting (social
and financial performance), financial literacy, fair interest rate training, research into financial behaviours and the like. 2.4. In principle, FIF will work with those market actors that: 2.4.1. Have a mandate to expand their services to low income clients, and/or rural areas. 2.4.2. Wish to graduate from registered to licensed organizations. 2.4.3. Wish to improve their financial and operational performance. 2.4.4. Wish to innovate and offer new products and delivery channels to low income clients. 2.4.5. Willingly apply responsible finance principles. 2.4.6. Wish to support retail level institutions through research, technical assistance and strengthening of market intelligence, and 2.4.7. Have the potential to have greatest impactwith the scale of their operations. FIF broadly distinguishes between Financial Service Providers (FSPs) and NonFinancial Service Providers (NFSPs). FSPs are retail level financial institutions that offer financial products and services to clients. NFSPs are those organizations that indirectly work with FSPs and/or have the potential to provide financial services at a large scale but are not registered as financial institutions. Considering items 2.4. and2.5. FIF support can be extended, but not limited to, the following types of market actors: 2.6.1. Financial Service Providers 2.6.1.1. Deposit Taking MFIs, 2.6.1.2. Non Deposit Taking MFIs, 2.6.1.3. Savings and Credit Unions; and, 2.6.1.4. Commercial Banks. 2.6.2. Non-Financial Service Providers 2.6.2.1. Training Institutes, Consulting companies and Research Institutions, 2.6.2.2. Postal services, insurance companies, mobile network providers (MNOs), and similar companies, and, 2.6.2.3. Networks and Associations supporting the financial sector. FIF will periodically issue the Call for Expression of Interest to build a pipeline of partners to support. See section 7 for details.
2.5.
2.6.
2.7.
3. FIF Support Instruments

3.1. FIF will operate under five guiding principles to ensure market development: 3.1.1. Coordination FIF will coordinate its resources and actionswith other market players to minimize duplication and ensure leveraging of its resources. 3.1.2. Scalable Business models- FIF will support those models that are demand driven and demonstrate a strong business case and a great likelihood of success.
3.1.3. Performance Based - Support will be linked to achievement of targets. See section Annex 12FIF Appraisal Format 3.1.4. This appraisal format is the document FIF will use to prepare each application to be
submitted to the IC committee. This format will be attached to Request for IC approval. The FIF team will prepare Appraisal format based on the documents received from the applying institutions. Appraisal Format
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Formatted: List Paragraph, Left, Outline numbered + Level: 3 + Numbering Style: 2, 3, + Start at: 1 + Alignment: Left + Aligned at: 0.49" + Indent at: 0.99"
Institutional Name: Reference Number: 1. Proposal Outline 1a. Background 1b. Objective 1c. Funding Period 1d. Key outputs to be achieved Key Outputs <Example # of clients> Key Activities <Example: Opening of a new branch>
2. FIF Appraisal 2a. The extent to which the proposed plan meets the FIF objectives. 2b. Institutional Capacity 2c. Financial Viability 2d. Likelihood of Success 2e. Contribution to Financial Inclusion groups, number of clients and the like
3. Risk Assessment Risk/Threat Institutional Capacity <Insert Other> Description Probability* Mitigation Prob abili ty: Low, Med
ium, High
4. Partnerships and Linkages Any partnerships or linkages contributing to the success. If yes, describe.
5. Technical Assistance Received Mechanisms Timing Scope By Who
6. Conditions and Performance Targets Output/Activity Baseline Minimum Proposed Targets Maximum
7. Proposed Funding Total Amount Funding Period Trench # 1 2 3 <From To> / <# of Months> Amount Purpose
Disbursement Conditions
8. Budget Requested
Item
Total cost
FIF contribution
Institutional Contribution
Notes
9. Monitoring and Evaluation
Mechanisms
Timing
Scope
Responsibility
KEY DOCUMENTS: EOI response RFP submitted Due Diligence Report Supporting documentation (e.g. financial statements, legal document etc) Other
Annex 13 IC approval format
REQUEST FOR IC Approval <Institutional Name>
Amount Requested: <insert amount> Type of Support: <insert type of support> Output: < # clients, knowledge management output> Submitted by: <Insert name> File reference: <File Number> Date:
INVESTMENT COMITEE DECISSION Meeting place: <Insert name/Virtual> Meeting date: <Insert Date> IC members present: <List all names of IC members> Decision: Rejected/ Approved/ Resubmission Conditions: <List all Conditions of decision>
IC chairperson: _____________________________________________________________________ (Name and Signature)
Attachments:
3.1.3.3.1.5. Annex 14 Performance Based AgreementsAnnex 11 Performance Based Agreements for details. 3.1.4.3.1.6. Concessional - Given that the market is in nascent stage, financial support will be concessional in nature. FIF will meet portion of costs, offer loans an interbank rates and provide grants. 3.1.5.3.1.7. Matched FIF will support only those institutions that are willing to contribute a portion of their resources to the execution of their business or strategic plans meeting financial inclusion objectives. FIF will not support more than 75% of the costs. 3.2. FIF has the following instruments at its disposal for both innovative and strategic window: 3.2.1. Direct Technical Assistance 3.2.1.1. Direct Technical Assistancewill be directly extended by FIF to the applying institution/s. The direct technical assistance will focus on technical capacity building of organizations, and will be directly delivered by MAFIPP/FIF to the institution. 3.2.2. Technical Assistance Grants 3.2.2.1. Technical Assistance grants will be extended to institutions that have the capacity to manage technical assistance grants on their own. These grants will be performance based - see Annex 14 Performance Based AgreementsAnnex 13 Performance Based Agreements for details. 3.2.3. Risk Capital Grants 3.2.3.1. Risk capital grants will be extended to those institutions that have strategic intent to, for example, a. move into a new area, orb.offer new products, or c. serve new target groups but need seed capital . Risk capital grants facilitate market development where FIF meets a portion of capital needed. Risk Capital grants will be performance based see Annex 14 Performance Based AgreementsAnnex 13 Performance Based Agreements for details. 3.2.4. Loans 3.2.4.1. Loans will be extended to those institutions that cannot meet the loan demand due to liquidity constraints. Loans will be extended only to mature organizations as per loan policy in the manual. 3.2.4.2. Loans will be concessional in nature. Where the interbank interest rate will be used as a benchmark. 3.2.4.3. Loans will be short in duration between 12 18 months and performance based (see Annex 14 Performance Based AgreementsAnnex 13 Performance Based Agreements) for details.
Formatted: Font: 12 pt Comment [AKA1]: You can call this seed capital grants if youd like.
3.3.
FIF financial support has to be strategic and catalytic. Financial support should not deter commercial investments, rather it should complement, facilitate or create incentives for commercial investment. The financial support has to be meaningful and stimulate market growth. The financial support amounts should match institutional age and stimulate further growth.
3.4.
Table 2 Institutional Age and Windows of Support
Institutional Age* Window Thematic Areas FIF Instrument
0.5 3 yrs. Strategic 6,7,8 Direct TA TA Grant
Institutional Type
DTMFI NDTMFI SCU Associations
3.1 4.9 yrs. Strategic Innovative 19 Direct TA TA Grant Risk Capital Grant DTMFI NDTMFI SCU Commercial Banks Research Institutions Associations
5 and above Strategic Innovative 1-9 Direct TA TA Grant Risk Capital Grant Loan** DTMFI NDTMFI SCU Commercial Banks Research Institutions Associations
* FIF defines age as years of proven track record in delivering services. ** For the details of loans please seeAnnex 1 Loan Policy. 3.5. Within the limitations of FIF resources, the amounts set out below showcase the maximum amounts per institution:
Table 3 FIF Fund Amount Limits per instrument
Instrument Min. amount per institution Max. amount per institution Window Uses
Direct Technical Assistance US$ 10,000 (KIP79,690,000)
Technical Assistance Grants US$ 10,000 (KIP79,690,000)
Risk Capital Grants US$ 50,000 (KIP398,450,000)
Loans US$ 500,000 (KIP 3,984,500,000)
US$ 200,000 (KIP 1,593,800,000) Strategic and Innovative As per 3.63.6
US$ 500,000 (KIP 3,984,500,000) Strategic and Innovative As per 3.63.6
US$ 1,000,000 (KIP 7,969,000,000) Strategic and Innovative As per 3.63.6
US$ 2,000,000 (KIP 15,938,000,000)
Strategic Loan Capital Only

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Restrictions
As per 3.7
As per 3.7.
Institutions must be in operation for a minimum of 3 full years
Institutions must be in operations for a minimum of 5 full years
3.6.
In terms of uses of support, the applying institutions will have to demonstrate a direct or indirect link between the use of support and improvement of one or more of the following, but not limited to: 3.6.1. Quality of Operations -Operational and Financial Sustainability. 3.6.2. Outreach and Expansion. 3.6.3. Improvement of technical knowledge, technical resources and market intelligence for and by market actors. 3.6.4. Improvement of services. 3.6.5. Improvement of efficiency. 3.6.6. Improvement in client acquisition numbersand outreach. 3.6.7. Improvement in payment systems and use of technology, and 3.6.8. Staff costs salary payments for new staff up to 8 months. 3.6.9. Examples of uses can include, but not limited to: Business and Strategic Plan development, Purchasing of MIS software, training, market research and other knowledge management activities, marketing, study tours, procurement of fixed items (furniture) for opening of branches, procurement of payment devices (such as ATM cards, POS machines) consultancy services from third parties, study tours, audits, ratings and so forth. FIF support cannot be used for: 3.7.1. Purchasing of vehicles. 3.7.2. Dividend payments, any type of payments to board members, CEO salaries or any other monetary incentives of that kind. 3.7.3. Leisure activities, holidays or any similar activities. 3.7.4. Administrative costs such as payment of phone bills, utilities or other similar costs. The institutions can apply, based on eligibility criteria, for a grant or a loan, however FIF Investment Committee (IC) will ultimately determine the size and instrument of the support, as well as its final use based on the argument set forth by the institutions. Given that market situation changes, FIF will review and adjust these amounts from time to time to ensure they remain relevant and supportive within the market context.
3.7.
3.8.
3.9.
4. FIF Size, Duration and Additional Funding

4.1. FIF size
4.1.1. Overall MAFIPP programme budget determines the amounts allocated for FIF activities. MAFIPP has allocated US$ 1 million(KIP 7,969,000,000) to the activities of FIF. 4.1.2. FIF size may increase or decrease from time to time dependent on the funding available. Such changes will be reviewed and approved annually by the Programme Management Committee (PMC). 4.1.3. MAFIPP will actively fundraise to increase the size of funds available under FIF. 4.2. FIF Duration 4.2.1. FIF facility is linked to the duration of MAFIPP programme. All financial support extended under FIF has to cease by end of MAFIPP unless otherwise agreed by UNCDF, AusAID and BOL. 4.2.2. FIF facility can be extended, beyond current duration, if there is both a need and an opportunity for FIF to continue further acceleration of financial inclusion in order for the field to reach maturity, scale and sustainability.
5. FIF Eligibility
5.1. FIF eligibility criteria is determined in line with support options as discussed under item Error! Reference source not found.5Error! Reference source not found.FIF Types of Support. Therefore, eligibility criteria differ for Innovative and Strategic window support. Minimum eligibility criteria are outlined in Table 4Table 4 on pages 11 - 12. Given that market situation changes, FIF will review and adjust these eligibility criteria from time to time to ensure the criteria remain relevant.
5.2. 5.3.
Table 4Minimum Eligibility Criteria for Institutions Applying under Innovative window
Criteria Institutional Age Institutional Type Thematic Area FIF Instrument
INNOVATIVE 3.1 4.9 yrs. 5 and above FSP FSP 1,2 1,2,3 Direct TA Direct TA TA Grant TA Grant Risk Capital Risk Capital Grant Grant Yes with BOL Yes with BOL
0.5 3 yrs. FSP 7,8,9 Direct TA TA Grant
Licensed or register
Board in place with proof Management Capacity Full time paid staff In compliance with regulatory requirements Number of clients
Yes CV of CEO or equivalent Yes Yes
Yes CV of CEO or equivalent Yes Yes
Yes with BOL or written proof of in process No CV of CEO or equivalent At least 3 Yes
STRATEGIC 3.1 4.9 yrs. FSP NFSP 1,2,4,5,8,9,10 4,7,8,10 Direct TA Direct TA TA Grant TA Grant Risk Capital Grant Yes with BOL Yes with relevant body Yes CV of CEO or equivalent Yes Yes Yes CV of CEO or equivalent At least 3 Yes
5 and above FSP NFSP 1,2,3,4,5,6,7,8,10 4,7,8,10 Direct TA Direct TA TA Grant TA Grant Risk Capital Grant Loan** Yes with Yes with BOL relevant body Yes CV of CEO or equivalent Yes Yes Yes CV of CEO or equivalent At least 5 Yes
Minimum 1,500
Minimum 2000
Has to demonstrate positive growth (10%) in client acquisition in the last three years
Minimum 700
Has to demonstrate business case
Minimum 5000
Has to demonstrate business case
Portfolio at Risk at 30 days
Less than 10% or positive trend in the last 3 quarter Yes For the last 3 years Yes
Less than 10% or positive trend in the last the 3 quarters Yes For the last 3 years Yes Yes For the last 3 years Yes
Financial statements
Letter from BOD in support of
Less than 10% or positive trend in the last the 3 quarters Yes For the last 3 years Yes
Not relevant
Less than 6%
Not relevant
Yes For the last 3 years Yes
application Business plan Audited statements
Yes Determined based on request amount Yes
Yes Determined based on request amount
Yes Determined based on request amount
Willingness to share the cost
Yes
Yes
** For the details of loans please see Annex 1 Loan Policy
6. Language and Currency

6.1. 6.2. All documentation submitted to FIF has to be in Lao and in English. Grants and loans will be denominated in the Lao KIP. FIF will use UNDP monthly exchange log to convert USD to local currency. The duration of the support will not exceed the duration of MAFIPP programme or 3 years, whichever is shorter. FIF requires partnering institutions to share the portion of the costs. A case by case approach will be taken, however a goal of FIF is to fund no more than 75% of the total proposed costs.
6.3.
6.4.
7. FIF Process from Expression of Interest to Disbursement Step by Step

7.1. FIF will follow tenkey steps which are outlined below. Details of each step are further discussed under items 7.2 to 7.11. Refer to Table 6FIF process flow chartTable 6FIF process flow chart. Step 1: Expression of Interest (EOI)(7.2) Step 2: EOI Workshop(7.3) Step 3: EOI review(7.4) Step 4: Business Plan Application Preparation (7.5) Step 5: Due Diligence (7.6) Step 6: Investment Committee Meeting (7.7) Step 7: Contracting (7.8) Step 8: Disbursement according to contract (7.9) Step 9: Monitoring (7.10) Step 10: Contract Closure (7.11) Step 1: Expression of Interest (EOI) 7.2.1. Step 1 has to be completed within 15 working days. 7.2.2. FIF will call for EOIs two times in a fiscal year or more frequent if needed. The times of the Call for EOI will be determined by the IC. Alternative to Call for EOI, FIF can undertake an independent market scoping and based on results FIF can invite organizations to applywithout going through EOI. In an instance where Alternative to Call for EOI is applied, FIF will skip Steps 1 3 and directly go to step 4. 7.2.3. FIF will share EOI with IC before publishing. FIF will allow for 5 days to receive comments from IC. If none received FIF will proceed with the Call for EOI. 7.2.4. FIF will publish the Call for EOI through electronic, print or other appropriate advertising channels in accordance to MAFIPP procurement rules and regulations.
7.2.
7.2.5. FIF will request partners to submit basic financial and operational information as well as a short description of how support from FIF will help institutionsachieve their goals including a need for technical assistance to prepare their applications. 7.2.6. Interested institutions will have the opportunity to attend EOI preparation workshop and thereafter have 10 working daysto submit EOI forms. 7.2.7. Interested institutions will submit the information using standardized EOI form. 7.2.8. Annex 2 Call for Expression of InterestAnnex 2 Call for Expression of Interest 7.2.9. Annex 3 Expression of Interest TemplateAnnex 3 Expression of Interest Template 7.3. Step 2: EOI Workshop 7.3.1. Step 2 has to be completed within 3 working days. 7.3.2. EOI workshop has to take place within 4 working days from the Call for EOI. For example, if FIF calls for EOI on Dec 1, the workshop has to happen by Dec 5. 7.3.3. The purpose of the workshop is to train the participants on EOI format and requirements as well as to answer any questions regarding EOI process . 7.3.4. EOI workshop date and time will be communicated in the Call for Expression of Interest. See Annex 2 Call for Expression of Interest. 7.3.5. FIF can organize 1 or 2 day/s workshop. The number of days will depend on the complexity of the EOI. 7.3.6. FIF will prepare attendance list (Name, Institutions, Title, Contact Details) for each workshop and keep this information on file. 7.3.7. Annex 4 EOI Workshop Agenda tentative Step 3: EOI review 7.4.1. Step 3has to be completed with 10 working days. 7.4.2. Technical Specialist will lead the EOI review process. 7.4.3. The review will consist of compliance and technical merit review. Compliance review will examine if institutionsmeets eligibility criteria based on FIF guidelines as set forth in this manual, and technical merit review will focus on examining the extent to and ways in whichthe proposed solution meets the FIF objectives. In some cases, FIF may decide to call on external expert to join in the review meeting. 7.4.4. The EOI review will be documented and discussed with National Project Manager (NPM). 7.4.5. Technical Specialist and NPM will decide which EOIs qualify for the next step of selection (Step 4: Call for Business and Strategic Plans) and which do not. This decision will be documented and note put to file. 7.4.6. FIF team will inform institutions in writing (via email) of its decision vis a vis their EOIs within 10 working days. 7.4.7. Institutions that successfully pass EOI will be requested to submit Business Plan Application to FIF. 7.4.8. Annex 5 EOI Assessment CriteriaAnnex 5 EOI Assessment Criteria
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7.4.
7.4.9. Annex 6 EOI decision minutes of meetingAnnex 6 EOI decision minutes of meeting 7.5. Step 4: Request for Proposals - Business or Strategic Plan 7.5.1. Step 4 process has to be completed within 5 weeks or 25 working days. That is, the institutions will be given 25 working days to submit their applications. 7.5.2. FIF will provide technical assistance on a need to basis during this time with the objective to help institutions successfully develop business and/or strategic plans. 7.5.3. Technical Assistance is not binding and does not guarantee selection. See Annex 9 Pre Application Technical Assistance Annex 8 Pre Application Technical Assistance for guidelines. 7.5.4. Interested institutions will submit the information using standardized FIF Application form. 7.5.5. Technical Specialist will designate a team member to each institution in an effort to move applications fast through application process. 7.5.6. Once submitted, each application will receive a unique code and details of the application will be maintained electronically, in Excel for example. 7.5.7. All received applications will be considered as proprietary in nature. 7.5.7. Annex 7 FIF Business/Strategic Application and Forms 7.5.8. Annex7 FIF Application RFP and Forms 7.5.9. Annex 9 Pre Application Technical Assistance Annex 8 Pre Application Technical Assistance Step 5: Due Diligence 7.6.1. Step 5 has to be completed within 10 working days per institution. 7.6.2. Due Diligence is a technical and institutional verification process undertaken by FIF to ensure the information in the application form is accurate and true. 7.6.3. Technical Specialist will write a recommendation explaining the level of due diligence needed as per 7.6.5 guidelines, and jointly with NPM decide on the due diligence requirement. This decision will be documented and note put to file. 7.6.4. Due Diligence canconsist of one or a combination of the above elements: 7.6.4.1. Review of Strategic and/or Business Plans. 7.6.4.2. Verification of documentation submitted. 7.6.4.3. Verification and/or assessment of claims made in the business or strategic plan. 7.6.4.4. Field visit and assessment of operations. 7.6.4.5. Verification of legal status. 7.6.4.6. Interviews with top management and/or board members. 7.6.4.7. Audit, and 7.6.4.8. Rating. 7.6.5. The level of due diligence is determined based on the amount requested and the type of support.
Table 5 Level of Due DiligenceGuidelines
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7.6.
Amount in US$
Level of Due
Due Diligence Elements
For amounts up to 50,000(kip 398,450,000) For amounts from 50,001 to 499,999.(KIP 398,457,969 to 3,984,492,000) For amounts above 500,000 (KIP 3,984,500,000)
Diligence Light
Basic
Advanced
For Loans regardless of the amount
Highly Advanced
Review and verification of strategic and business plans Verification of documentation Verification of legal status Field visit Review of Strategic and/or Business Plans Verification of Documentation Verification of Legal Status Interviews with top management Field visit Review of Strategic and/or Business Plans Verification of Documentation Verification of Legal Status Interviews with top management and board members Verification and assessment of claims made in the business plan Audited statements (last 2 years) Field visit and assessment of operations Verification of documentation submitted Verification and assessment of claims made in the business plan Field visit and assessment of operations Verification of legal status Interviews with top management and board members. Audit (last 3 years) and Rating
7.6.6. Due diligence exceptions: 7.6.6.1. Field visit and assessment of operations can be waived for amounts up to US$ 500,000 (kip3,984,500,000) if costs and logistical reasons make it undesirable. 7.6.6.2. Parts of due diligence elements can be waived if MAFIPP, UNCDF or qualified third party (for example Investor, Donor or the alike) visited the institution in the past 6 months and has reports or other written documents as evidence. 7.6.7. Due diligence exceptions do not apply to loan applications regardless of the amount. All those applying for loans have to undergo advanced due diligence without fail. 7.6.8. FIF understands that audited statements or rating reports are not readily available by market actors in the Lao PDR. FIF can allocate its resources to undertake audit and rating assessments of applying institutions. 7.6.8.1. Technical specialist can make a recommendation and audit requirement can be waived. However, such a recommendation must be brought to the attention of IC members, who must give consent for an audit waiver. 7.6.8.2. Audits, however are a mandatory requirement for any loan application without exceptions. 7.6.8.3. Rating assessments are not mandatory and are at a discretion of TS.
7.6.9. Due diligence can be undertaken by MAFIPP staff, UNCDF staff, consultancy firms and individual consultants. TS will decide and recommend to NPM on appropriate way to undertake due diligence. 7.6.10. Due diligence process will be documented using Due Diligence Report, and will form a list of documents in support of Business Plan Application Form. 7.6.11. Annex 10Due Diligence Assessment and ReportAnnex 8 Due Diligence Assessment and Report 7.7. Step 7: Investment Committee Meetingand Approval 7.7.1. Step 7has to be completed within 7 days. 7.7.2. Technical Specialist will organize a meeting with NPM to inform NPM of applications that will be presented to IC. Technical Specialist has to review all applications for completeness, NPM will verify before these are submitted to IC. 7.7.3. NPM will instruct Technical Specialist to call for IC meeting. 7.7.4. Technical Specialist will send an email to IC meeting members. Upon agreeing on the meeting date, TS will forward all applications to IC members electronically. Full Applications packages need to be shared at least 10 working days in advance of the IC meeting. Application package for each institution includes FIF Appraisal Format. See Annex 12FIF Appraisal FormatAnnex 11 FIF Appraisal Format. 7.7.5. Investment committee has the sole authority to approve, partially approve or decline the applications. In instance of partial or conditional approvals IC will instruct the TS on additional requirements needed. 7.7.6. 7.7.7. However not all applications have to be brought to the attention of the Investment committee. As per Investment Committee guidelines (Annex 11 Investment Committee GuidelinesAnnex 10 Investment Committee Guidelines) the following applies: 7.7.7.1. For direct technical assistance and technical assistance grants up to US$ 10,000 Technical Specialist can make a recommendation and NPM, and NPD can approve the grant with ratification fromUNCDF Senior Regional Advisor Asia. The contracting process does not change. 7.7.7.2. For all other amounts applications need to be brought to the attention of IC. 7.7.8. Investment Committee will operate according to Investment Committee Guidelines. 7.7.9. Upon approval of the application, IC Chair will instruct TS to inform applicants of IC decisions and move to contracting stage for approved applicants. 7.7.10. Investment Committees discussions and decisions will be documented through Minutes of Meeting, and note put to file. 7.7.11. TS will inform institutions of the IC decision within 5 working days from IC meeting. 7.7.12. Annex 11 Investment Committee GuidelinesAnnex 10 Investment Committee Guidelines. 7.7.13. Annex 12FIF Appraisal FormatAnnex 11 FIF Appraisal Format
Formatted: Font: 12 pt Formatted: Font: 12 pt
7.7.14. Annex 12Annex 11 IC approval format. 7.8. Step 7: Contracting 7.8.1. Step 7has to be completed within 3 weeks (15 working days) of IC decision. 7.8.2. TS will lead the work on contract preparation. TS will call a meeting with each of the successful applicants and explain the contract format and provide support in finalization of the same. 7.8.3. TS will support BOL in contracting and take a lead the contracting process within UNCDF. 7.8.4. FIF will contract all partners using Performance Based Agreement (PBA) contract type as follows: 7.8.4.1. For Risk Capital Grant Agreements PBA Grant template will apply. 7.8.4.2. For Loan Agreements PBA Loan template will apply. 7.8.4.3. For Technical Assistance Grants PBA Technical assistance template will apply. 7.8.5. The contract agreements will be in English and translated to Lao. 7.8.6. TS will draft the first PBA, and share it with the partnering institution. Partnering institution will review and comment. 7.8.7. Upon receiving partner comments and incorporation, TS will then share PBA with BOL and UNCDF. These institutions need to review and comment on PBA within 5 working days. 7.8.8. TS will finalize the PBA and send for signing to BOL, UNCDF and Partnering institution. These institutions need to complete their internal processes and sign the agreement within 7 working days. 7.8.9. PBAs will be tripartite agreements among BOL, UNCDF and Partnering Institutions. 7.8.10. Signed agreements will be filed electronically and in hard copies. MAFIPP will keep two copies (original and a copy), BOL 1 copy and UNCDF 1 copy. 7.8.11. Annex 12FIF Appraisal Format 7.8.12. This appraisal format is the document FIF will use to prepare each application to be
submitted to the IC committee. This format will be attached to Request for IC approval. The FIF team will prepare Appraisal format based on the documents received from the applying institutions. Appraisal Format
Formatted: List Paragraph, Justified, Indent: Left: 0.49", Outline numbered + Level: 3 + Numbering Style: 1, 2, 3, + Start at: 1 + Alignment: Left + Aligned at 0.49" + Indent at: 0.99" Formatted: Font: 12 pt
Institutional Name: Reference Number: 10. Proposal Outline 1a. Background 1b. Objective
Formatted: List Paragraph, Left, Indent: Left: 0.49", Outline numbered + Level: 3 Numbering Style: 1, 2, 3, + Start at: 1 + Alignment: Left + Aligned at: 0.49" + Indent at: 0.99"
1c. Funding Period 1d. Key outputs to be achieved Key Outputs <Example # of clients> Key Activities <Example: Opening of a new branch>
11. FIF Appraisal 2a. The extent to which the proposed plan meets the FIF objectives. 2b. Institutional Capacity 2c. Financial Viability 2d. Likelihood of Success 2e. Contribution to Financial Inclusion groups, number of clients and the like
12. Risk Assessment Risk/Threat Institutional Capacity <Insert Other> Description Probability* Mitigation Prob abili ty: Low, Med
ium, High
13. Partnerships and Linkages Any partnerships or linkages contributing to the success. If yes, describe.
14. Technical Assistance Received Mechanisms Timing Scope By Who FIF, Operational Manual 25 | P a g e
15. Conditions and Performance Targets Output/Activity Baseline Minimum Proposed Targets Maximum
16. Proposed Funding Total Amount Funding Period Trench # 1 2 3 <From To> / <# of Months> Amount Purpose
17. Budget Requested
Item
Total cost
FIF contribution
Notes
18. Monitoring and Evaluation
Mechanisms
Timing
Scope
Responsibility
KEY DOCUMENTS: EOI response FIF, Operational Manual 26 | P a g e
RFP submitted Due Diligence Report Supporting documentation (e.g. financial statements, legal document etc) Other
Attachments:
7.8.11.7.8.13. Annex 14 Performance Based AgreementsAnnex 11 Performance Based Agreements 7.8.12.7.8.14. Annex 15 Performance Based Agreement Template for GrantsAnnex 12 Performance Based Agreement Template for Grants 7.8.13.7.8.15. Annex 16 Performance Based Agreement Template for LoansAnnex 13 Performance Based Agreement Template for Loans 7.8.14.7.8.16. Annex 17 Performance Based Agreement Template for Technical AssistanceAnnex 14 Performance Based Agreement Template for Technical Assistance 7.9. Step 8: Disbursement according to contract 7.9.1. Step 8 has to be completed as per PBA contract, payments will be made in accordance to PBA dates. 7.9.2. TS will organize a meeting with partnering institutions and explain how partnering institutions will submit disbursement request for each trench and how this will be processed. 7.9.3. FIF Fund is held in UNCDF account. The disbursement of funds will happen as follows:
Formatted: Font: 12 pt Formatted: Font: 12 pt Formatted: Font: 12 pt
Technical Specialist will prepare Quarterly Progress report. Based on the report he/she will prepare a PBA disbursement recommendation. 7.9.3.2. The recommendation will be submitted to NPM for approval. 7.9.3.3. NPM will submit the request to NPD. 7.9.3.4. NPD will approve the request and forward the request to UNCDFs Regional Office addressed to Role of Senior Regional Technical Advisor who will approve the disbursements and release them in accordance with NIM guidelines. 7.9.4. Annex 18 Funding Request ProcessAnnex 15 Funding Request Process 7.10. Step 9: Monitoring 7.10.1. FIF monitoring is aligned with MAFIPP Monitoring Policy. Apart from alignment with the policy this manual sets key monitoring guidelines for FIF funds. 7.10.2. The main focus of FIF monitoring will be to: Ensure the delivery as per PBAs signed with partner FSPs, andIdentify problems and devise corrective measures to solve them. 7.10.3. FIF monitoring has to focus on the following areas: Verification of reported outputs and targets achieved; Verification of the grant utilization for purposes of the achievements of PBAs; Verification of adherence to the additional fund disbursement conditions; Verification of target groups reached and impact on their livelihood Progress on implementation of innovations, and; Documentation of lessons learnt. 7.10.4. FIF partners have to report in accordance with PBA agreement that will outline reporting and disbursement requirements. FIF partners will submit the reports on quarterly basis. 7.10.5. FIF partners have to submit portfolio related data to MIX Market that will verify and clean the data for errors. TS will inform programme partners of MIX Market requirements and provide training, if and when necessary. 7.10.6. FIF has to ensure that a minimum of two physical visits per year are conducted for each partner.. 7.10.7. TS will report about theprogress of each partner to NPM on regular bi weekly or monthly basis, or as agreed. NPM in turn reports to PMC on quarterly basis. 7.10.8. Evaluations, impact studies or similar studies examining the results will be at discretion of PMC. These studies will be undertaken in accordance with programme document, and annual workplans. Step 10: Contract Management and Closure 7.11.1. Contract management will be undertaken by TS in FIF. 7.11.2. TS has no authority to make changes to PBA agreements once these are signed.
7.9.3.1.
7.11.
7.11.3. Any modifications to signed PBA contracts, have to be appropriately documented and PBAs amended accordingly. These changes need to be endorsed by signing authorities of BOL, UNCDF and partnering institution.Should there be a case for modification to existing PBAs the following will apply: 7.11.3.1. TS has to prepare a technical recommendation and justification that outlines the reasons modification is needed and how modification will aid or hurt programme objectives. IC and PMC must be presented with a full details of the case to enable them to make a decision. This recommendation must be endorsed by NMP before the recommendation is brought to ICs and PMCs attention. 7.11.3.2. Modification will be discussed and IC and PMC level and decision to approve or not will be made. 7.11.3.3. PMC will instruct PM, and TS on the next steps. The decision must be documented, and note put on file. 7.11.4. Partial achievements of targets may trigger changes in payments. In instances where partnering institutions do not deliver 100% of agreed contract targets PBAs automatically allow for 90 days grace period to meet the target. Should partnering institution still fail to meet the targets past 90 days grace period, then partial payments are possible. In such instances the following will apply: 7.11.4.1. TS will communicate with partnering institution informing them of 90 days grace period to meet the PBA target. 7.11.4.2. TS will prepare a technical recommendation with supporting evidence for partial payments as well as partners plan to achieve programme targets, and seek endorsement from NPM. 7.11.4.3. Only if NPM endorses the payments, the recommendation will be passed onto IC. 7.11.4.4. IC can virtually endorse partial payments. These endorsements will be included at next PMC meeting and included in the Minutes of Meeting. 7.11.5. The following are closure procedures: 7.11.5.1. PBAs automatically close on the expiry date as set in the contract. In instances where contractual obligations are completed in full TS will send a note to that effect to partnering institutions, as well as to IC members informing them of contract closure. 7.11.6. Extension of PBAs past expiry date is possible if a partnering institution needs additional time to complete the agreed deliverables. Should there be a need for PBA extension the following will apply: 7.11.6.1. TS will prepare a technical recommendation with supporting evidence for extension of PBAs at least 6 months before extension is needed. TS will seek endorsement from NPM. 7.11.6.2. Only if NPM endorses the extension, the recommendation will be passed onto IC.
7.11.6.3.
7.11.6.4. 7.11.6.5.
IC can virtually endorse extension. These endorsements will be included at next PMC meeting and included in the Minutes of Meeting. PBAs can be extended only once. PBAs cannot be extended past MAFIPP duration.
Table 6FIF process flow chart
8. Management of FIF facility

8.1. 8.2. FIF facility is housed in MAFIPP. FIF is embedded in existing MAFIPP structure. (insert MAFIPP structure)
Figure 1 FIF structure within MAFIPP
8.3. 8.4.
8.5. 8.6. 8.7. 8.8. 8.9. 8.10. 8.11.
FIF facility will be led by the Technical Specialist. Technical Specialist position is an international position recruited by UN Capital Development Fund. The roles and responsibilities are defined within TS job description. Technical Specialist will be supported by 3 MAFIPP staff members, FIF support officers (2) and FIF Analyst. Technical Specialist will manage activities under FIF in accordance with this operations manual. Technical Specialist will be responsible for monitoring and reporting of FIF facility and partnering institutions. Technical Specialist reports to National Project Manager. The approval of Business plan applications is vested with the Investment Committee. The Investment Committee is a sub committee of PMC. Annex 11 Investment Committee GuidelinesAnnex 10 Investment Committee Guidelines
9. Changes to Manual
9.1. Market conditions will change. Therefore, to remain relevant, this document will be reviewed and, if need be, amended on regular basis (bi annually). Changes to this
manual follow a common sense approach. That is, changes should be made only when they make sense and will lead to improved operations of FIF, without jeopardizing the integrity of MAFIPP or FIF. 9.2. Changes to this document cannot be undertaken without discussions with IC and PMC. The PMC, being a supervisory body must approve any changes to the manual. All changes must be documented in writing and issued as Policy Memo, and a note to file must be maintained of such changes. Currently, FIF is modality of MAFIPP, and is not a separate legal body. Market conditions may change, and in the future, AusAid, UNCDF and BOL may see a need to spin off FIF channel as an independent stand-alone modality or body. In such instance, this manual will have to be amended and changed.
9.3.
9.4.
Annex 1 Loan Policy
FIF will assess, manage and offer loans under UN Capital Development Fund Loan Policy. <INSERT LOAN POLICY UNCDF document>
FIF, Operations Manual 36 | P a g e
Annex 2 Call for Expression of Interest
Dear <Company/Individual consultant>:
<INSERT DATE>
Invitation for Expression of Interest The United Nations Development Programme (UNDP) on behalf of the UN Capital Development Funds (UNCDF) Making Access to Finance More Inclusive for Poor People MAFIPP programme is calling for Expression of Interest (EOI).
GOAL of EOI
Making Access to Finance Mora Inclusive for Poor People (MAFIPP) is a four year UNCDFs initiative founded by AusAID and implemented by the Bank of the Lao PDR (BOL). MAFIPPs objective is to increase access to financial services to low income households and microentrepreneurs on sustainable basis. In this sector based programme, MAFIPP takes a role of market facilitator to advance financial inclusion in the Lao PDR. Therefore, MAFIPP interventions are at micro, meso and macro levels. At macro level MAFIPP introduces, for the first time in Lao PDR, a comprehensive financial diagnostic survey to improve the accuracy of information to market actors on financial inclusion in Laos, and then makes this information available to the market actors. At meso level MAFIPP, works with financial service support organizations to build capacity of selected institution to provide on going technical assistance to the sector. Finally, at retail level MAFIPP supports and provides a set of incentives to market actors as a way to strengthen institutional capacity and facilitate the development of the actors that advances financial inclusion. At this time, MAFIPP wishes to solicit Expressions of Interest to participate in the Invitation to Bid. At this time we are seeking EOIs under theme <INSERT THEME NAME AND NUMBER AND PROVIDE A BRIEF DESCRIPTIN OF PURPOSE OF THE THEME> ELIGIBLE INSTITUTIONS MAFIPP programme is calling for Expression of Interest (EOI) from the following types of companies/consultants <ADJUST PER NEED> 1. Financial Service Providers namely: a. Deposit Taking Microfinance Institutions (DTMFs); b. Non Deposit Taking Microfinance Institutions (NDTMFIs); c. Savings and Credit Unions (SCU), and; d. Commercial Banks with downscaling or rural outreach projects. 2. Non-Financial Service Providersnamely: a. Microfinance Service Providers;
b. c. d. e.
Training Institutes; IT/MIS vendors, Research Organizations and; Auditors.
As part of the prequalification process, UNCDF-MAFIPP may visit the locations of the interested parties to access their capacity as stated on the EOI form. Only those prequalified will be invited to participate in the Request for Application process. Any unsolicited attempt to influence UNDP internal selection process in favour of a particular vendor will result in the immediate disqualification. TYPES AND USES OF SUPPORT In terms of uses of support, the applying institutions can use the support to improve: Quality of Operations -Operational and Financial Sustainability, efficiency Outreach and Expansion. Technical knowledge, technical resources and market intelligence for and by market actors. Information technology, MIS or payment systems. Staff costs salary payments for new staff up to 8 months Examples of uses can include, but not limited to: Business and Strategic Plan development, Purchasing of MIS software, training, market research and other knowledge management activities, marketing, study tours, procurement of fixed items (furniture) for opening of branches, procurement of payment devices (such as ATM cards, POS machines) consultancy services from third parties, study tours, audits, ratings and so forth. Support cannot be used for: Purchasing of vehicles. Dividend payments, any type of payments to board members, CEO salaries or any other monetary incentives of that kind. Leisure activities, holidays or any similar activities. Administrative costs such as payment of phone bills, utilities or other similar costs. Institutions applying for support that MAFIPP cannot cover will not be considered. TENTATIVE CALENDER OF EVENTS The following table enlists important milestones and timelines for completion of EOI activities: # 1 2 3 4 5 6 Milestone Release of EOI <xx> EOI Workshop <xx> Last date of submission of written questions by <xx> EOI bidders Response to Questions <xx> Last day for submission of EOIs <xx> Opening of EOI responses <xx> Date and Time
Declaration of Short Listed Firms
<xx>
EoI DOCUMENTS All interested parties are requested to visit UNDP Website: <INSERT WEB PAGE> to see details of EOI and download EOI form. All parties that wish to participate in the process are required to complete the below EOI form. The companies are expected to examine all instructions, forms, terms, requirements and other details in the EoI documents. Failure to furnish complete information as mentioned in the EoIform in every respect will be at the bidder's risk and may result in rejection of the submission.The information provided will be used to access your company suitability to qualify for invitation to participate in the Invitation to Bid. EoI WORKSHOP UNDP will host EoI workshop at <INSERT ADDRESS> on <INSERT DATE>. Interested parties (restricted to two persons per organization) may attend the workshop at their own cost. The purpose of the workshop is to answer questions and provide clarifications regarding the EoI.
EoI CLOSING DATE
The closing date for this EOI is <INSERT TIME> local time <INSERT DATE>. The documents must be received in a sealed envelope titled MAFIPP Expression of Interest Response. Documents sent by e-mail or facsimile will not be accepted. EOI received after the above deadline will not be considered. All submissions must be made to the following address: <INSERT FULL NAME, ADDRESS> EoICLARIFICATIONS For any clarification on any aspect of this Expression of Interest advert, please send an email to <INSERT NAME> quoting MAFIPP Expression of Interest UNDP Laosinthe subject of the e-mail. UNDP will not respond to individual queries, rather questions will be received until <INSERT DATE> and responses to all questions will be published on UNDP website <INSERT WEBSITE> by <INSERT DATE>. Any changes to this EOI will be published on UNDP website <INSERT WEBSITE>, interested parties are encouraged to check this website regularly for updates. **************************************************** Nothing in this EOI shall be taken to form a binding legal contract. The potential subsequent procurement will be governed by the rules and regulations of the United Nations Development Programme (UNDP). Companies/Consultants will be selected in accordance with the procedure set out in the UNDP Procurement Guidelines and UNDP Financial Rules and Regulations.
We thank you for your interest in doing business with us.
This Call for Expression of Interest does not amount to a commitment on the part of the UNDP financially or otherwise. UNDP reserves the right to accept or reject any or all the Proposals without any obligation to inform the affected applicants of the ground for the acceptance or rejection.
Annex 3 Expression of Interest Template
EXPRESSION OF INTEREST TEMPLATE Instructions: This form should be completed clearly and accurately ensuring all questions are answered and all supporting documents are attached. Forms need to be completed in English. Self Complete Checklist Completed Form before submission All supporting documents attached A,B,C Form is signed Company stamp attached SECTION 1: COMPANY DETAILS 1. Full legal name
2. Mission/Vision
3. Contact Details
Name and Title of Contact Person Phone Number Email
Physical Address Postal Address
4. Subsidiaries, Associations (List any subsidiaries or associations with any organizations)
5. Nature of Business (Tick only one Box) 6. Type of Business (Tick Only one box)
Financial service provider

NGO COMMERICAL BANK SCU NDTMFI
Non-financial service provider

DTMFI RESEARCH INSTITUTE
7. Years in operation 8. License/Registration number (In instances your organization is in process of obtaining it write IN PROCESS) 9. License/registration valid until
8. Number of full time paid staff
Attach License/Registration Proof OR Proof of Applying for one
_____/_______/______ (Mon) Day Year
SECTION 2: FINANCIAL INFORMATION
10. Annual income 10. Annual expenses
2013 2013
2012 2012
2011 2011
2010 2010
13. Do you have yearly financial statements (audited and/or non audited)? (Tick only one box) 14. List areas in Laos where you operate? 15. Majority of your clients are <Tick only one box) 16. Portfolio Information Value of loans outstanding Total savings Number of active clients Number of savers Number of borrowers % of women as borrowers Average outstanding loan balance per borrower Average outstanding savings balance per saver Write off ratio Portfolio at Risk (> 30 days)
Yes
No
If yes, attach the most recent financial statement, or financial report.
SECTION 3: PORTFOLIO INFORMATION (IF YOU ARE A NON FSP SKIPP THIS SECTION)
From rural areas 2013
From urban areas 2012 2011
Mixed urban & rural 2010
SECTION 4: TECHNICAL CAPABILITY 17. List up to 6 core services you offer Description of Core Service (one per line)
18. What kind of experience does your organization have in working directly or indirectly with low income
populations or vulnerable groups? SECTION 5 PROPOSED IDEA FOR WHICH YOU SEEK FUDNING SUPPORT 18. What is your proposed idea in relation to thematic area? 19. What market gap are you addressing?
20. Which group are you targeting?
21. How will you manage this work to ensure it is successful? 22. What will be outcome/benefits of your proposed idea? 23. How will you ensure the idea is sustainable and profitable? 24. Describe your institutional and management capacity to undertake this idea Attach CV of CEO/ Director/head of organization 25. To undertake this idea how much financial support you require? In $US C
Total estimated costs Support requested from MAFIPP Your company contribution
26. How would you like to utilize this support? 27. What are the key risks associated with execution of your idea/business plan that could undermine your success? 28. If selected for the next step, what type of technical assistance, if
any, would you require to successfully prepare your application? SECTION 6: CURRENT CONTRACTS WITH INTERNATIONAL AGENCIES, DONORS, GOVERNMENT (You must list all support from third parties regardless of the amount) 29. Regardless of the amount do you have any financial or technical Yes No support or are negotiating financial or technical support from a third party? (Tick only one box) Organization Contract Value Purpose of Support Expiry date US$
30.Has any support (financial or technical) ever been suspended to your organization?
Yes
No
If yes, provide details
SECTION 7: CERTIFICATION I, undersigned, warrant that the information provided in this form is true and correct. I understand that any false information will result in immediate disqualification from the process.
Signature Signatory Name
Title COMPANY SEAL Date
The closing date for this EOI is <INSERT TIME> local time <INSERT DATE>. The documents must be received in a sealed envelope titled MAFIPP Expression of Interest Response. Documents sent by e-mail or facsimile will not be accepted. EOI received after the above deadline will not be considered. All submissions must be made to the following address: <INSERT FULL NAME, ADDRESS>
Annex 4 EOI Workshop Agenda tentative
Making Access to Finance More Inclusive For Poor People - MAFIPP Expression of Interest Workshop Date Time Day and Date 8:30 AM 9:00 AM 9:15 AM 9:25 AM 9:45 AM 10:35 AM 10:50 AM 11:25 AM 1:00 PM 2:00 PM 3:10 PM 3:30 PM 3:45 PM 4:15 PM 1. Registration 2. Introductions 3. Welcome remarks 4. Workshop Objectives 5. MAFIPP overview (including Thematic Areas) BREAK 6. What is EOI? 7.Understanding EOI form LUNCH BREAK 8. Understanding EOI process 10. Questions and Answers BREAK 11. EOI submission process End of Day Activities Facilitator
Annex 5 EOI Assessment Criteria
EOI will be assessed and scored by the FIF team, with Technical Specialist as a lead against the criteria set out in the table below. The obtainable number of points specified for each evaluation criterion indicates the relative significance or weight of the item in the overall evaluation process. Only those EOIs that have attained minimum of 750 points out of maximum 1000 points (i.e. 75% score) in the evaluation will be considered for the next step in the process.
EOI Evaluation Component EOI A. Capacity and Experience of organization submitting the proposal Score Score Weight 15%
Experience with working with low income people with financial services and at what scale, target group and focus areas Organizational Capability which is likely to affect implementation. Such as size of organizations, managerial capacity, key staff involved Quality of portfolio, growth trend and size
40%
B. Proposed Approach
Services that will be provided as a result Innovation of the approach or idea Replicability and Scalability long term within Laos market Potential Risks with execution of the idea that could undermine the success Business management to ensure delivery
30%
C. Compatibility with MAFIPP/FIF objectives
Correspondence with MAFIPP objectives Enhancement of IF in Laos

15%
D. Cost Effectiveness
Current donor support in place Total 100% *These criteria are indicative, FIF will have to adjust/adapt the criteria based on specific EOIs issued, portfolio Quality is not relevant for NFSP applying therefore should be omitted from scoring of NFSPs
Good value for money Feasibility
EOI name: File: ___________________________________ A. Capacity and Experience of organization submitting the proposal A1 Experience (with working with low income people with financial services and at what scale,
target group and focus areas)
Score
W/Score
Comment
A2 A3
Organizational Capability(likely to affect implementation, such as size of organizations,

managerial capacity, key staff involved)
Portfolio Quality
B. Proposed Approach B1 Services that will be provided as a result B2 B3 B4 B5 Innovation of the approach or idea Replicability and Scalability long term within Laos market Potential Risks with execution of the idea that could undermine the success Business management to ensure delivery
C. Compatibility with MAFIPP/FIF objectives C1 Correspondence with MAFIPP objectives C2 D. D1 D2 Inclusive finance enhancement Cost effectiveness Good value for money Feasibility
Instru ctions : This Total EOI evaluation form is a template to assist FIF in evaluating EOI applications in a comparative manner. Each EOI should be evaluated separately. See Excel Sheet for calculations.
D3
Level of current donor support
Annex 6 EOI decision minutes of meeting
Meeting Date: Present (tick applicable): Note taker Institutional Name Unique Reference Number Activities Proposed Activities/Outputs Documentation Provided (Verification) TA recommendation <List and verify all documentation> Outputs <INSERT NAME> <INSERT NAME>
<Explain if and what type of TA is needed>
Key decision points Decision (circle applicable)
<Note key discussion on EOI> Accepted for Request to Submit full proposal /Rejected for Request to Submit Full proposal/Resubmission <List any conditions linked to the decision, such as documentation needed, further information, due diligence visit etc.> <Explain level of due diligence needed>
Conditions Due Diligence
Recommended by:
Technical Specialist
Approved by:
National Project Manager
Approved by:
National Project Director
Annex 7 FIF Business/Strategic Application and Forms
FIF Application Format Business and Strategic Plan

1. Summary In your summary, cover the following issues: Specific Objectives of your initiative Description of the proposed solution and summary of the key tasks Major results you plan to achieve
Maximum 1 page 2. Technical description including the state of development Describe your proposed solution covering all the following issues: Description of the idea, process you plan to undertake to execute the idea including its innovation aspects. Please detail the physical location where this work will be undertaken Description of possible risksthat could undermine your success such as political, financial and technical and describe a way you plan to address them. A flowchart showing the implementation of your idea.
Maximum 4 pages 3. Overview of the market conditions and relevant regulatory framework In your description, cover the following issues: Short-term and potential market size for uptake of your solution Identified market barriers to the proposed solution Market demand and/or results of market analyses Legislative/ policy frameworks and how they affect the implementation of your solution.
Maximum 3 pages 4. Business Case Describe these four points (as relevant): Marketing strategy / expected return on investment / business plan or strategic plan Transferability and replication Cost effectiveness Target groups you will reach/serve Business Case
Maximum 3 pages
5. Results Please explain: Sustainability (cost benefit) Results you plan to achieve and how they relate to MAFIPP objectives. Ways you will measure success (performance indicators)
Maximum 2 pages 6. Correspondence to FIF/MAFIPP objectives Please explain: Ways your idea meets FIF objectives
Maximum 1 page 7. Description of your institution and capability to undertake the work Please explain: Institutional nature and type of business Competencies of your senior management and staff and organizational capability to undertake the work
Maximum 2 pages 8. Financial and Operational Soundness You are requested to submit the following in support of your applications <INSERT REPORTS/STATEMENTS REQUIRED, FIF THIS SECTION HAS TO BE ADJUSTED TO THE NEEDS OF EACH RFP>. In this table indicate the following information:
Name of Indicator A 1 2 3 4 5 6 B 7 8 Value of (US$,000) Outreach Number of Active Borrowers Loans Outstanding 2013 2012 2011 2010
Voluntary Savings (US$,000) Total Savings (US$,000) Percent Women Active Borrowers Percent of Depositors Women Voluntary
Client Poverty Level Average Outstanding Balance per Borrower Average Outstanding Balance per Saver Loan Savings
9 10 C 11 12 D 13 E 14 15 F 16 17
Average Loan Balance Borrower/ GNI per Capita
per
Average Savings Balance per Saver/ GNI per capita Collection Performance Portfolio at Risk (PAR) Ratio > 30 days Write Off Ratio Sustainability Operational Self-Sufficiency (OSS) (annualized) Efficiency Operating (annualized) Cost per (annualized) Adjusted (AROA) Expense Active Ratio Client
Overall Financial Performance Return on Assets
Financial Self Sufficiency (FSS)
Attach: Business Plan//Strategic Plan
Annex 8IC Assessment elements
Applications will be assessed by IC in accordance with the below criteria.
<TO BE ENHANCED BY TECHNICAL SPECIALIST AS PER NEED>
# 1. 1.1. 1.2.
1.3.
1.4. 1.5
Description of Assessment Criteria TECHNICAL AREAS Expertise of organization submitting the proposal Demonstrated track record, knowledge and experience Organizational Capability which is likely to affect implementation. Size of Organization and staff capacity , Managerial capacity, Financial Standing and Capacity , Level of resources available Quality assurance procedures in place - these refer to a processes or procedures which FSP will put in place to ensure the delivery as per proposal, and in the Soundness and sustainability of the institution
Weight/Score 25%
Robust MIS in place (type of MIS used, its operability, staff dedicated to manage MIS, its functionality) 1.6. Key personnel involved - CVs of personnel to be engaged in implementation must be included 1.7. Experience of key managers: CVs of key managers that will manage the project need to be included 2. Proposed Approach 2.1. Cost Effectiveness 2.2. Innovation 2.3. Transparent Pricing 2.4. Scalability 2.5. Likelihood of Success 2.6. Demonstrated or likely market demand for the proposed service(s), products, model, or delivery mechanism 2.7. Risks and minimization of risks 2.8. Strength of Business Case 2.9. Correspondence to FIF goals, MAFIPP mandate 3. Business Management 3.1. Quality of operational management - proposed time frame, and implementation plan, clear specification of roles and responsibilities and the like 3.2. 4.1. 4.2. Feasibility of execution FINANCIAL ELEMENTS Cost effectiveness Value for Money
25%
20%
30%
4.3.
Other outstanding commitments
Annex 9 Pre Application Technical Assistance guideline
FIF has the opportunity to offer technical assistance to applying institutions on need to basis. The purpose of technical assistance is to support the institutions in preparation of their applications for funding. FIF, however has very limited resources to offer technical assistance. Technical assistance is not guaranteed to applying institution and is entirely upon FIF discretion. Dependent on funding available, FIF should clearly stipulate before issuing EOI if technical assistance will be available to applicants or not. In the EOI form all the institution responding to the call for EOI will be able to express their need for TA, but it will not be possible for all institutions to receive TA of the same type and duration. Based on the EOI submissions, Technical Specialist will decide on type, duration and amount of technical assistance. Technical Assistance provided by FIF will focus on: Preparation of Business Plans and Strategic plans for submission to IC; Technical Assistance can be delivered by Technical Specialist, other MAFIPP staff, international consultants or UNCDF staff. Technical Assistance is not a guarantee for funding award. The extent of any technical support will be disclosed to IC.
Annex 10Due Diligence Assessment and Report
DUE DILIGENCE ASSESSMENT TEMPLATE
DUE DILIGENCE REPORT FOR
<INSTITUTION NAME> FIF File # _________________________
CONDUCTED BY:
<INSERT PERSONS/INSTITUTIONS NAMES>
PERIOD: <START TO END>
Summary:
Name of Organization:
Type of Organization:
Location:
Years in Operations:
FIF support requested: US$ _________________KIP _________________
Own investment: US$ _________________KIP _________________
Due diligence recommendation: US$ _____________________________ FIF, Operations Manual 56 | P a g e KIP _____________________________
Type of support:
__________________________________________
Due Diligence Report
Recommendation The due diligence team recommends a support of US $___________________________

KIP __________________________________ in the form of _______________________
Type of Due Diligence Due Diligence undertaken by Period of due diligence Due Diligence included (tick all elements that were included)
Note: Due diligence has to be adjusted to FSP and NFSP, for example portfolio information not relevant to NFSPs.
Attachments (list all attached documents as relevant) Has any element of due diligence be waived? Circle ONLY one answer. If yes, explain what and why.
<Light, Basic, Advanced> <Persons names> <Insert time> Market Environment Review Financial Reports and Accounting Practices Verification of legal status Verification of documentation submitted Field visit and assessment of operations Managerial capacity Review Financial Performance (Income statement, Balance Sheets etc.) Portfolio Performance (size, quality etc.) Review Operational Performance (MIS, credit policies and procedures etc.) Audit Rating Review Business plan/Strategic Plan 1 Business Plan 2 Strategic Plan 3 <Document name> Why waived: YES NO
A. Brief FIF Support outlines (business plan, project to be funded) Briefly describe for what the organization is requesting support for, objectives results Idea Objective Results Key activities Target Group/s Amount US$ ________________________ KIP ________________________ Requested Institutional US$ _______________________ KIP ________________________ contribution % of total amount _______________ B. Market Conditions Key issues to consider: What is the growth potential of the organization at this market? How does the organization respond to market needs? How organization deals with competition? What types of products and services it offers? Market Conditions Due Diligence Findings General Market Information Competition Strategy Target Customers C. Management and Organizational Capacity Key issues to consider: What is the level of commitment of management? What is management capacity? What is organizational capacity? Management Due Diligence Findings
D. Products and Services Key issues to consider: What products and services the organization offers at the moment? What institutions plans to offer with FIF support? How unique, innovative are these products and services? How do they enhance the market and contribute to financial inclusion?
Product and Services Due Diligence
E. Portfolio Performance Key issues to consider: Is overall portfolio performance consistent with international best practices? What is portfolio quality like, measured over time? Is institution growing at a sustainable rate? Is overall management and operations consistent with international best practices? Quality of MIS? Portfolio Performance Due Diligence
Key Portfolio Indicator Portfolio Size Total number of clients # of borrowers # of savers PAR less than 30 days % of women among clients
Projection<2014>
2013
2012
2011
This table can be modified based on need
F. Financial Performance Key issues to consider: Operational self sufficiency Financial self sufficiency Strength of balance sheet Financial Performance Due Diligence
Portfolio Indicator
Projection <2014>
2013
2012
2011
Profit Annual Income Annual Expenditures OSS FSS Other This table can be modified based on need
G. Synergy with FIF goals and purpose Key issues to consider: How does idea meet/synergizes (as elaborated in the business plan, strategic plan and/or application) with FIF objectives?
Synergy Analysis
H. Eligibility Compliance Key issues to consider: Does this organization meet FIF compliance criteria as per EOI and RFP?
Compliance Analysis (include attachments when relevant)
I. Risk Assessment Outline key risks that could impact the success. Risk/Threat Description Probability Mitigation
Risk analysis
J.
Technical Assistance received and other donor support or funding
Technical Assistance Mechanism Timing Scope By Who
Other Funding Funder Contract Value Purpose Expiry
Technical Assistance and other Donor Support assessment FIF, Operations Manual 61 | P a g e
K. Additional Comments Additional Comments as relevant
Encl.
Attachments
Annex 11 Investment Committee Guidelines
The purpose of the FIF Investment Committee (IC) guideline is to define the composition, authority,
role and responsibilities of the IC members. 1. The Investment Committee is a sub committee of MAFIPP Programme Management Committee (PMC). 2. The role of IC is to: Appraise funding applications, and; Approve, partially approve and not approve funding applications. 3. All applications above US$25,001 have to be brought to IC attention regardless of purpose, amount of instrument. For direct technical assistance and technical assistance grants up to US$ 25,000 Technical Specialist can make a recommendation and NPM, and NPD can approve the grant with ratification of UNCDF Senior Regional advisor Asia. The contracting process as described under item 7 does not change. 4. IC shall be composed of PMC members. National Project Director (NPD), National Project Manager (NPM), Donor (AusAid), Regional Senior Advisor (UNCDF), Technical Specialist (MAFIPP). 5. On need to basic, IC may invite an external technical expert to attend the meeting and participate in the appraisal process. However, he/she will have no say in approval of applications. 6. In an instance, when an IC member cannot participate in IC meeting, he/she may appoint a designate. 7. If an IC member and his/her alternate are unable to attend meetings, may provide their input in advance to the IC Secretary or may delegate authority to another IC member. 8. IC decisions should be made by unanimous consent, by one person one vote principle. If consensus cannot be reached, the majority vote will prevail. 9. IC may hold meetings either virtually with members providing comments via e-mail, videoconference, teleconference, in person or, when necessary, a combination of each. The IC may also agree, by special arrangement (e-mail, telephone calls), when timely decisions are required. 10. The meetings will be chaired by NPD. 11. In an instance NPD is not available, the meeting will be chaired by NPM.
12. MAFIPP programme officer will be invited to IC meetings to act as a Secretary. Secretary does not vote. Secretary will keep notes of the discussion. Type those notes and share them with Technical Specialist for completion. Technical Specialist will finalize the notes and share them with IC members for signature. Minutes will be filed. 13. Technical Specialist is responsible for scheduling, organizing and preparing documentation for IC meetings. Technical Specialist may assign this task to another MAFIPP staff. 14. Partners performance will be monitored according to MAFIPP Monitoring and Evaluation Policy. 15. Members of the IC will keep in strict confidence all proprietary, commercial or other sensitive information that it may come across in the course of their role and responsibility in the IC. 16. If a member of the IC believes he or she may have a conflict of interest in any matter being considered by the IC, this conflict of interest must be reported immediately to the Chairperson who, in consultation with other IC members, shall rule on the appropriate action to take; including, but not limited to, the member abstaining from contributing to a decision on the matter at hand.
Annex 1213FIF Appraisal Format
This appraisal format is the document FIF will use to prepare each application to be submitted to the IC committee. This format will be attached to Request for IC approval. The FIF team will prepare Appraisal format based on the documents received from the applying institutions.
Appraisal Format
Institutional Name: Reference Number: 1.19. Proposal Outline
1a. Background 1b. Objective 1c. Funding Period 1d. Key outputs to be achieved Key Outputs <Example # of clients> Key Activities <Example: Opening of a new branch>
2.20.
FIF Appraisal
2a. The extent to which the proposed plan meets the FIF objectives. 2b. Institutional Capacity 2c. Financial Viability 2d. Likelihood of Success 2e. Contribution to Financial Inclusion groups, number of clients and the like
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3.21.
Risk Assessment Description Probability* Mitigation Prob abili ty: Low, Med
Risk/Threat Institutional Capacity <Insert Other>
ium, High
4.22.
Partnerships and Linkages
Any partnerships or linkages contributing to the success. If yes, describe.
5.23.
Technical Assistance Received Timing Scope By Who
Mechanisms
6.24. Output/Activity
Conditions and Performance Targets Baseline Minimum Proposed Targets Maximum
7.25. Total Amount Funding Period Trench # 1 2 3
Proposed Funding <From To> / <# of Months> Amount Purpose
8.26.
Budget Requested
Item
Total cost
FIF contribution
Notes
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9.27.
Monitoring and Evaluation
Mechanisms
Timing
Scope
Responsibility
KEY DOCUMENTS: EOI response RFP submitted Due Diligence Report Supporting documentation (e.g. financial statements, legal document etc) Other
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Attachments:
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Annex 1415 Performance Based Agreements
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Performance Based Agreements (PBAs) are contracts signed between recipient institution and
a donor. In the case of MAFIPP, this will be: BOL, UNCDF and Recipient Institution. In the PBAsthe payments to recipient institutions are linked to Recipient Institution meeting mutually pre agreed targets. For example, if a total grant amount equals US$100,000, the amount will be disbursed once key milestones are achieved. Other characteristics include: Ensuring some funding is based on meeting targets in later years; Minimizing transaction costs by having one or two [maximum] payment[s] per year; Focusing on only a few key targets to release payments; and Payment dates come after due date for reporting milestone. Commonly 10 20% of overall grant is disbursed upon signing of the contract to assist the partnering institution start the work. All other disbursements are commonly made semi annually and, if a target is not met, institutions receive a 90 day grace period. In instances where targets are not met even upon additional grace period, institutions are assessed and a decision is made to continue or discontinue the support. Theuseof grantsand technical assistanceforstrengthening outreachisaglobalbestpractice,especiallywhen tiedwith performance-basedagreements(PBAs)foreachpartnerreceiving assistance. Attached below find PBA for Grant Agreements (Annex 15 Performance Based Agreement Template for GrantsAnnex 12 Performance Based Agreement Template for Grants), and PBA for Loan Agreements Template (Annex 16 Performance Based Agreement Template for LoansAnnex 13 Performance Based Agreement Template for Loans) and PBA for Technical Assistance Template (Annex Annex 17 Performance Based Agreement Template for Technical AssistanceAnnex 14 Performance Based Agreement Template for Technical Assistance).
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Annex 1516 Performance Based Agreement Template for Grants
GRANT AGREEMENT Between THE UNITED NATIONS CAPITAL DEVELOPMENT FUND (UNCDF)
And
Recipient Institution
A.
GRANT AGREEMENT
Grant Agreement (hereinafter referred to as the Agreement) made between the United Nations Capital Development Fund (UNCDF or Grantor), andRecipient Institutionthe Recipient Institution, hereinafter referred to as the financial service provider or Recipient Institution). WHEREAS the Grantor desires to provide funding to the Recipient Institution in the context of a Programme and on the terms and conditions hereinafter set forth, WHEREAS the Recipient Institution is ready and willing to accept such funds from the Grantor for the above mentioned activities on the said terms and conditions. NOW, therefore, the parties hereto agree as follows: I. Responsibilities of the Recipient Institution
1.1 The Recipient Institution agrees to: complete the key results/milestones specified in the Section III below, including providing reports and statements to the grantor in accordance with the Monitoring Schedule. The Recipient Institution shall be responsible for verifying the accuracy of all reports. Funds provided pursuant to this Agreement shall be used to achieve these results/milestones. The Recipient Institution shall be free to reallocate resources as needed in order to produce the expected results.
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If the Recipient Institution fails to meet the minimum performance indicators in Section III within ninety (90) days of the timeframe specified, the Grantor may suspend or terminate this agreement at its discretion. The suspension will remain in effect until the Recipient Institution has met the targets or until the Grantor has agreed in writing to modify the performance targets. 1.2 The Recipient Institution agrees to inform the Grantor about any problems it may face in a timely fashion or any anticipated failure to complete the activities or achieve the expected results. The Recipient Institution also agrees to immediately report any incidence of fraud, theft, or significant operational loss that negatively impact its ability to fulfil the terms of this Agreement or threaten or have a relevant impact on its ability to continue as a going concern. 1.3 The Recipient Institution agrees to notify the Grantor of any <grant funds/loan funds> for the purpose of completing the <Business Plan> it may receive prior to signature of those funding agreements. The Grantor reserves the right to adjust the amount of funding in this Agreement if it determines that its funds are no longer necessary as the result of other funding agreements.
II.
Duration
2.1 This Agreement will come into effect on September 5, 2010 and shall expireon July 15, 2012 covering the anticipated term of the project. It can be extended, if necessary by exchange of letters, noting the new expiration date.
III.
Key Results/Milestone and Payments
3.1 The Grantor shall provide funds to the Recipient Institution of an amount of US$16,665.00 according the schedule set out below. Payments are subject to the Recipient Institution achieving the Expected Results as well as the disbursement conditions set forth in this article, if any. Upon signature of this Agreement: Payment/Date 20th September 2010 Amount UNCDF: 8,333 UNCDF: 3,332 15th 2011 March Disbursement Conditions Base Line Total Active Approval of Business plan Clients: 52,000 (Mid April Agreement signed 2010) Report on refined model for (By 15 January 2011) expansion through market research Total Active Client : 53,260 Mix market registration/update Statement of fund utilization Annual report up to July 15, 2010 Annual audit report up to July 15, 2010 Quarterly progress report up to 73 | P a g e Results/Milestone to Be Achieved
October 15, 2010 Quarterly progress report up to January 15, 2011 Funding request from EAFSP/NRB 15th September 2011 UNCDF: 2,500 (By 15 July 2011) Total Active Client : 55,320 Statement of fund utilization Quarterly progress report up to April 15, 2011 Quarterly progress report up to July 15, 2011 Funding request from EAFSP/NRB UNCDF: 2,500 (By 15 January 2012) Total Active Client : 58,392 Mix market update Statement of fund utilization Annual report up to July 15, 2011 Annual audit report up to July 15, 2011 Quarterly progress report up to October 15, 2011 Quarterly progress report up to January 15, 2012 Funding request from EAFSP/NRB (By 15 July 2012) Total Active Client : 63,604 Annual Audit report up to July 15 2012 Annual report up to July 15, 2012 Quarterly progress report up to April 15, 2012 Quarterly progress report up to July 15, 2012 Statement of fund utilization. Project Completion Report Total UNCDF: 16,665.00
15th 2012
March
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3.2
Detailed Results (outreach and performance) targets are as follows: End of Year BASELINE End of Year July 15, 2011 Proposed Minimum Target Proposed Minimum Target 15 July, 2012
RECEPIENT INSTITUTION
Mid April 2010
Number of Active Clients % of Female Clients Financial SelfSufficiency) Operational SelfSufficiency Portfolio at Risk at 30 days
52,000 5 137 156 0.59
56,150 10 133 158 4
55,320 10 100 100 5
66,505 20 130 225 4
63,604 20 100 100 5
3.3
Disbursement conditions shall include meeting reporting requirements: Timing/Due Date 15th November 2010 15th February 2011 15th May 2011 15th August 2011 15th November 2011 15th February 2012 15th May 2012 15th August 2012 Scope Annex 1 Report Format Responsibility Recipient InstitutionRECEPIENT INSTITUTION
Mechanism Quarterly Reports
Mid-term evaluation Final evaluation
15th September 2011
UNCDF (primary), Recipient Institution to be available to evaluators UNCDF (primary), Recipient Institution to be available
October-November 2012
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to evaluators Audited Financial Statements Mix Market 15 September 2011 15th September 2012 30th September 2010 30 September 2011 30th September 2012
th th
Final Report
15th August 2012
3.4 The Recipient Institution shall request disbursements with the supporting information to show that disbursement conditions have been met. All payments shall be deposited into the Recipient Institutions bank account of which the details are as follows: Name of the Bank: Bank Routing Number: SWIFT Code: Beneficiary Account Name: Beneficiary Account Number: Address of Bank: 3.5 The amount of payment of such funds is not subject to any adjustment or revision because of price or currency fluctuations or the actual costs incurred by the Recipient Institution in the performance of the activities under this Agreement. IV. 4.1 4.2 Records, Information and Reports The Recipient Institution shall maintain clear, accurate and complete records in respect of the funds received under this Agreement. The Recipient Institution agrees to provide reports and fulfil its obligations accordance with the Monitoring and Evaluation schedule (section III). It agrees to reasonable requests to make its personnel available to participate in on-site monitoring visits and further rating assignment. Within sixty (60) days after completion of project activities, the Recipient Institution shall provide the Grantor with a final financial report describing how the expenditures were utilized.
4.3
All further correspondence regarding the implementation of this Agreement should be addressed to: For UNCDF: Executive Secretary, UNCDF For BOL, Name and Title For the Recipient Institution: Name, Title, Address, Contact details
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V.
General Provisions
5.1 This Agreement and the Annexes attached hereto shall form the entire Agreement betweenthe Recipient Institution, and the Grantor, superseding the contents of any other negotiations and/or agreements, whether oral or in writing, pertaining to the subject of this Agreement. 5.2 The Recipient Institution shall carry out all activities described in paragraph 1.1 with due diligence and efficiency and shall have exclusive control over the administration and implementation of those activities. The Grantor shall not interfere in the exercise of such control. If in the Grantors determination the Recipient Institution is not carrying out the activities described in paragraph 1.1, the Grantor may: (i) withhold payment of funds until in its opinion the situation has been corrected; or (ii) declare this Agreement terminated by written notice to the Recipient Institution as described in paragraph 5.7 below; and /or seek any other remedy as may be necessary. The Grantors determination shall be binding and conclusive upon the Recipient Institution insofar as payments are concerned. 5.3 The Grantor undertake no responsibilities in respect of life, health, accident, travel or any other insurance coverage for any person which may be necessary or desirable for the purpose of this Agreement or for any personnel undertaking activities under this Agreement. Such responsibilities shall be borne by the Recipient Institution. 5.4 The rights and obligations of the Recipient Institution are limited to the terms and conditions of this Agreement. Accordingly, the Recipient Institution and personnel performing services on its behalf shall not be entitled to any benefit, payment, compensation or entitlement except as expressly provided in this Agreement. 5.5 The Recipient Institution shall be solely liable for claims by third parties arising from the Recipient Institutions acts or omissions in the course of performing this Agreement and under no circumstances shall the Grantor be held liable for such claims by third parties. 5.6 Grant funds disbursed to the Recipient Institution shall be considered to be the property of the Grantor and shall not become the property of the Recipient Institution until one or more of the following conditions have been met: (i) the Recipient Institution has verifiably complied with all conditions in this grant agreement; (ii) the Grantor advises the Recipient Institution in writing that it has fulfilled the conditions to the Grantors satisfaction; (iii) the Grantor otherwise notifies the Recipient Institution in writing that it releases the Recipient Institution from any obligation to repay funds. In the case of multiple payments in paragraph 3.1, the Grantors approval of a payment shall be considered a notification of fulfilment of conditions for all previous payments. If within ninety (90) days after the end date of the Agreement there has been no written communication from the Grantor in regard to the disposition of the funds, the funds shall be considered the property of the Recipient Institution. In cases where the above conditions have not been met, the Grantor may at its discretion require the Recipient Institution to return of some or all of the funds and the Recipient Institution has thirty (30) days to comply with this request. 5.7 This Agreement may be terminated by either party before completion of the Agreement by giving thirty-day (30) written notice to the other party. In the case of termination by the Grantor, the disposition of funds shall be governed by paragraph 5.6. In case of termination by the Recipient Institution, the Grantor may at its discretion require 77 | P a g e
the Recipient Institution to return all or part of the funds. The Recipient Institution has thirty (30) days to comply with this request. If the Grantor fails to request the return of funds within ninety (90) days of the termination notice, the funds shall be considered the property of the Recipient Institution. 5.8 The Recipient Institution acknowledges that the Grantor has made no actual or implied promise of funding except for the amounts specified by this Agreement. 5.9 No modification of or change to this Agreement, waiver of any of its provisions or additional contractual provisions shall be valid or enforceable unless previously approved in writing by the parties to this Agreement or their duly authorized representatives in the form of an amendment to this Agreement duly signed by the parties hereto. 5.10 Any controversy or claim arising out of, or in accordance with this Agreement or any breach thereof, shall unless it is settled by direct negotiation, be settled in accordance with the UNCITRAL Arbitration Rules as at present in force. Where, in the course of such direct negotiation referred to above, the parties wish to seek an amicable settlement of such dispute, controversy or claim by conciliation, the conciliation shall take place in accordance with the UNCITRAL Conciliation Rules as at present in force. The parties shall be bound by any arbitration award rendered as a result of such arbitration as the final adjudication of any such controversy or claim. 5.11 Nothing in or relating to this Agreement shall be deemed a waiver of any privileges and immunities of the United Nations. IN WITNESS WHEREOF, the undersigned, duly appointed representatives of the Grantor, and the Recipient Institution, respectively, have on behalf of the Grantor and the Recipient Institution signed the present Memorandum of Agreement on the dates indicated below their respective signatures. On behalf of UNCDF: Name: ________________ Title: Date: On behalf of the Bank of Lao: Name: _______________________________ Title: _______________________________ Date: _______________________________ Executive Secretary On behalf of the Recipient Institution: Name: _____________________ Title: ______________________ Date: _____________________
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Output Information From: Stand ard code Name of Indicator Q4 Mid-Jul Outreach O1 O2 O3 O4 O5 O6 O7 Value of (US$,000) Loans Outstanding Number of Active Borrowers Q3
2010/2011 Quarterly Indicators Q2 Mid-Jan. Q1 MidOct.
2010 Annual Base Line Mid April
Mid-Apr.
Voluntary Savings (US$,000) Total Savings (US$,000) Percent Women Active Borrowers Percent of Depositors Women Voluntary
Client Poverty Level CPL1 CPL2 CPL3 CPL4 Average Outstanding Loan Balance per Borrower Average Outstanding Balance per Saver Savings per per
Average Loan Balance Borrower/ GNI per Capita Average Savings Balance Saver/ GNI per capita Collection Performance
CP1 CP2 S1
Portfolio at Risk (PAR) Ratio > 30 days Write Off Ratio Sustainability Operational Self-Sufficiency (OSS) (annualized) Efficiency Operating (annualized) Expense Ratio
E1 E2
Cost per Active Client (annualized) Overall Financial Performance Adjusted Return on Assets (AROA) Only Need Last Fiscal Annual Indicator Only Need Last Fiscal Annual Indicator 201 1/12
OFP1 OFP2 Financial Self Sufficiency (FSS) Targets Target Indicators T1 T2 T3 T4 T5 Number of Active Borrowers Number of Voluntary Depositors Portfolio At Risk Financial Self-Sufficiency Cost Per Active Client Mid April 2010 2010/11
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Annex 1617 Performance Based Agreement Template for Loans
<INSERT TEMPLATE>
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Annex 1718 Performance Based Agreement Template for Technical Assistance
TECHNICAL ASSISTANCE AGREEMENT
Between THE UNITED NATIONS CAPITAL DEVELOPMENT FUND (UNCDF) And

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A.
TECHNICAL ASSISTANCE AGREEMENT
AGREEMENT BETWEEN UNCDF AND RECIPIENT INSTITUTION FOR THE PROVISION OF TECHNICAL ASSISTANCE
Technical Assistance Agreement (hereinafter referred to as the Agreement) made between the United Nations Capital Development Fund (UNCDF), (the Technical Service Provider or TSP) and Recipient Institution, hereinafter referred to as the Recipient Institution. The Technical Service Provider will sign its own agreement directly with the Recipient Institution, as necessary. WHEREAS the UNCDF desires to provide technical assistance to the Recipient Institution in the context of a MAFIPP Programme and on the terms and conditions hereinafter set forth, WHEREAS the Recipient Institution is ready and willing to accept such Technical Assistance in the form of activities undertaken by the Technical Service Provider for the abovementioned activities on the said terms and conditions.
NOW, therefore, the parties hereto agree as follows:
I.
Responsibilities of the Recipient Institution
1.1 The Recipient Institution agrees to: complete the key results/milestones specified in the Section III below and the Project Description included in Annex 2 and providing reports and statements to UNCDF. The Recipient Institution shall be responsible for verifying the accuracy of all reports. Technical Assistance provided pursuant to this Agreement shall be used to achieve these results/milestones. 1.2 The Recipient Institution commits to facilitating the deployment and activities undertaken by UNCDF and the Technical Service Provider to complete the Project Description included in Annex 2, including but not limited to: Carrying out its own part of the activities and deliverables detailed in the Annex 2; Supporting the Technical Service Provider to fulfil the Project Description, including providing a physical space and contact with the recipient institutions staff for completion of work on the Recipients premises, as needed; Providing guidance on background and preparation of on-site visits of the Technical Service Provider and UNCDF; Assistance in the daily management of the Technical Service Provider; Providing Quality Assurance of the deliverables provided by the Technical Service Provider.
1.3 If the Recipient Institution fails to meet the minimum performance indicators in Section III within ninety (90) days of the timeframe specified, UNCDF may suspend or 82 | P a g e
terminate this agreement at its discretion. The suspension will remain in effect until the Recipient Institution has met the targets or until UNCDF has agreed in writing to modify the performance targets. 1.4 The Recipient Institution agrees to inform UNCDF about any problems it may face in a timely fashion or any anticipated failure to complete the activities or achieve the expected results. The Recipient Institution also agrees to immediately report any incidence of fraud, theft, or significant operational loss that negatively impact its ability to fulfil the terms of this Agreement or threaten or has a relevant impact on its ability to continue as a going concern. The Recipient Institution also agrees to notify UNCDF should problems or concerns arise with the Technical Service Provider, such as failure to adequately complete the activities required. 1.5 The Recipient Institution agrees to notify UNCDF of any external funds or technical assistance for the purpose of completing the activities and deliverables in Annex 2 it may receive prior to signature of those funds/ technical assistance agreements. The UNCDF reserves the right to adjust the amount of technical assistance in this Agreement if it determines that its technical assistance is no longer necessary as the result of other funding or technical assistance agreements. 1.6 UNCDF strongly encourages all Recipient Institutions to endorse the Client Protection Principles of the Smart Campaign which are listed below. A full description of the six principles can be found at: http://smartcampaign.org/ Appropriate product design and delivery Prevention of over-indebtedness Transparency Responsible Pricing Fair and respectful treatment of clients Privacy of client data Mechanisms for complaint resolution
The Recipient Institution will inform UNCDF when it has endorsed the campaign principles. By endorsing the principles, the Recipient Institution commits to incorporate the principles in the Recipient Institution policies and practices, and to monitor their implementation.
II.
Duration
2.1 This Agreement will come into effect and shall expireon the dates mentioned in the section 2.4 Project period of the annex 2: Project description covering the anticipated term of the project. It can be extended, if necessary by exchange of letters, noting the new expiration date.
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III.
Key Results/Milestones
3.1 UNCDF and the Technical Service Provider shall provide the following technical assistance services to the Recipient Institution according to the schedule set out below. Technical Assistance is subject to the Recipient Institution achieving the Detailed Results as well as the implementation of the conditions set forth in this article, if any.
Upon signature of this Agreement:

Estimated date November 2013 Areas of support Business Case Activities Realization of the ETL strategy for Branchless Banking and Mobile Financial Services Realization of the Application to the Bank of Lao Conditions This agreement signed ETL team ready to start
January 2014
Application to Bank of Lao
All reporting up to date Business Case finalized and presented to Bank of Lao
3.2
Detailed Results (outreach and performance) targets are as follows:
See section 2.3: Key project figures and results of the Annex 2: Project description.
3.3 The Recipient Institution agrees to meet all reporting requirements for the continued engagement of UNCDF and the Technical Service Provider.
Mechanism Debriefing
Timing/Due Date Monthly
Scope In-person or phone debriefing meeting
Responsibility Recipient institution and Technical Service Providerto UNCDF by phone
Progress report
Quarterly on calendar quarter Quarterly during the project period and then semi-annually until end of 2017 45 days after expiration of the Agreement
1 page narrative
Recipient Institution and Technical Service Provider, submitted to UNCDF Recipient Institution, submitted to UNCDF
Key indicators
MM4P Reporting Format (Annex 1)
Final Report
Summary of follow up steps resulting from the technical assistance (max 10 pages) Estimation of total resources committed to project by recipient institution, direct expenses and in-kind (i.e. staff time)
Recipient Institution, submitted to UNCDF
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IV. 4.1
Records, Information and Reports The Recipient Institution agrees to provide reports and fulfil its obligations accordance with the Section III. It agrees to reasonable requests to make its personnel available to participate in on-site monitoring visits.
All further correspondence regarding the implementation of this Agreement should be addressed to:
For UNCDF:
For the Recipient Institution:
V.
General Provisions
5.1 This Agreement and the Annexes attached hereto shall form the entire Agreement between the Recipient Institution, and UNCDF, superseding the contents of any other negotiations and/or agreements, whether oral or in writing, pertaining to the subject of this Agreement.
5.2 The Recipient Institution shall carry out all activities described in paragraph 1.1 and Annex 2 with due diligence and efficiency and shall have exclusive control over the administration and implementation of those activities. UNCDF shall not interfere in the exercise of such control. If in UNCDFs determination the Recipient Institution is not carrying out the activities described in paragraph 1.1, UNCDF may: (i) stop technical assistance until in its opinion the situation has been corrected; or (ii) declare this Agreement terminated by written notice to the Recipient Institution as described in paragraph 5.7 below; and /or seek any other remedy as may be necessary. UNCDFs determination shall be binding and conclusive upon the Recipient Institution insofar as the provision of technical assistance is concerned.
5.3 UNCDF undertakes no responsibilities in respect of life, health, accident, travel or any other insurance coverage for any person which may be necessary or desirable for the purpose of this Agreement or for any personnel undertaking activities under this Agreement. Such responsibilities shall be borne by the Recipient Institution.
5.4 The rights and obligations of the Recipient Institution are limited to the terms and conditions of this Agreement. Accordingly, the Recipient Institution and personnel
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performing services on its behalf shall not be entitled to any benefit, payment, compensation or entitlement except as expressly provided in this Agreement.
5.5 The Recipient Institution shall be solely liable for claims by the Technical Service Provider or third parties arising from the Recipient Institutions acts or omissions in the course of performing this Agreement and under no circumstances shall UNCDF be held liable for such claims by third parties.
5.6 This activity includes procurement and contracting of a Technical Service Provider. UNCDF will act as the as the sole contracting authority in accordance with UNCDF rules and regulations. The Parties shall agree on the final version of the Project Description included in Annex 2 for procurement of external consultants. Once the recipient institution is notified in writing of the selection of the Technical Service Providers, should the Recipient Institution not wish the selected Technical Service Provider to provide the services it must provide written notice within fifteen days (15) of notification or terminate this agreement in accordance with section 5.7.
5.7 This Agreement may be terminated by either party before completion of the Agreement by giving thirty-day (30) written notice to the other party. In case of termination by the Recipient Institution, the Recipient Institution agrees to fulfill its reporting obligations under Section 3.3 until the end of the calendar year of the termination and to fulfill its reporting obligations of Detailed Results in Section 3.2 until the end of 2017
5.8 The Recipient Institution acknowledges that UNCDF has made no actual or implied promise of technical assistance except for services specified by this Agreement.
5.9 No modification of or change to this Agreement, waiver of any of its provisions or additional contractual provisions shall be valid or enforceable unless previously approved in writing by the parties to this Agreement or their duly authorized representatives in the form of an amendment to this Agreement duly signed by the parties hereto.
5.10 Any controversy or claim arising out of, or in accordance with this Agreement or any breach thereof, shall unless it is settled by direct negotiation, be settled in accordance with the UNCITRAL Arbitration Rules as at present in force. Where, in the course of such direct negotiation referred to above, the parties wish to seek an amicable settlement of such dispute, controversy or claim by conciliation, the conciliation shall take place in accordance with the UNCITRAL Conciliation Rules as at present in force. The parties shall be bound by any arbitration award rendered as a result of such arbitration as the final adjudication of any such controversy or claim.
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5.11 Nothing in or relating to this Agreement shall be deemed a waiver of any privileges and immunities of the United Nations.
IN WITNESS WHEREOF, the undersigned, duly appointed representatives of UNCDF, and the Recipient Institution, respectively, have on behalf of UNCDF and the Recipient Institution signed the present Memorandum of Agreement on the dates indicated below their respective signatures.
On behalf of UNCDF: Institution:
On
behalf
of
the
Recipient
Name:
Name: ______________________
Title:
Title:
______________________
Date:
Date:
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Annex 1819 Funding Request Process
To: National Project Director via National Project ManagerDate:
Re: Disbursement Verification Letter Dear Sir/Madam: With this letter I am providing information on disbursement conditions as per PBA. Institution Name/Conditions Example Example Met Target Yes Yes Quarterly Report No No PBA target PBA target Recommended Disbursement No No
Note: The PBA conditions will have to be included upon PBA agreements are signed with partnering institutions.
Thank you for your kind cooperation and support extended to the project. Yours sincerely,
.. Technical Specialist - - MAFIPP
I approve/not approve ....
this
recommendation:
National Project Manager
Instructions: If approved, the Request for Release of Funds letter should be prepared and sent to UNCDF regional office.
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To: Senior Technical Advisor, UNCDF, Bangkok Date:

Re: Request to release funds to partnering FSPs Dear Sir/Madam: With this letter I am requesting release or withholding of grant fundingas follows: Institution Name Example Instalment # 1 Release/With-hold Release Brief Explanation Met PBA target Supporting Documents Attached Quarterly Progress Report Disbursement Verification Letter Ibid
Example
2 Total Release Total Withhold
Withhold
Not met PBA target
Thank you for your kind cooperation and support extended to the project. Yours sincerely,
.. National Programme Director- - MAFIPP Bank of Laos CC: National Programme Manager, BOL Technical Specialist, UNCDF MAFIPP Programme Officer, UNCDF Programme Officer, UNCDF
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Fund For Inclusive Finance Mannual Laos

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Government of Lao Peoples Democratic Republic Bank of the Lao PDR

The Fund for Inclusive Finance Operations Manual

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Ex rate: 1 $US= 7,969Kip

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1. Raison dtre - Fund for Inclusive Financein Lao PDR

Table 1 FIF support thematic areas

3. FIF Support Instruments

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5. Technical Assistance Received Mechanisms Timing Scope By Who

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9. Monitoring and Evaluation

Annex 13 IC approval format

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REQUEST FOR IC Approval <Institutional Name>

IC chairperson: _____________________________________________________________________ (Name and Signature)

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Table 2 Institutional Age and Windows of Support

Institutional Age* Window Thematic Areas FIF Instrument

0.5 3 yrs. Strategic 6,7,8 Direct TA TA Grant

DTMFI NDTMFI SCU Associations

Direct Technical Assistance US$ 10,000 (KIP79,690,000)

Technical Assistance Grants US$ 10,000 (KIP79,690,000)

Risk Capital Grants US$ 50,000 (KIP398,450,000)

Loans US$ 500,000 (KIP 3,984,500,000)

US$ 200,000 (KIP 1,593,800,000) Strategic and Innovative As per 3.63.6

US$ 500,000 (KIP 3,984,500,000) Strategic and Innovative As per 3.63.6

US$ 1,000,000 (KIP 7,969,000,000) Strategic and Innovative As per 3.63.6

US$ 2,000,000 (KIP 15,938,000,000)

Strategic Loan Capital Only

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Institutions must be in operation for a minimum of 3 full years

Institutions must be in operations for a minimum of 5 full years

4. FIF Size, Duration and Additional Funding

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Criteria Institutional Age Institutional Type Thematic Area FIF Instrument

0.5 3 yrs. FSP 7,8,9 Direct TA TA Grant

Yes CV of CEO or equivalent Yes Yes

Yes CV of CEO or equivalent Yes Yes

Has to demonstrate business case

Has to demonstrate business case

Portfolio at Risk at 30 days

Letter from BOD in support of

Yes For the last 3 years Yes

Yes For the last 3 years Yes

Yes For the last 3 years Yes

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application Business plan Audited statements

Yes Determined based on request amount Yes

Yes Determined based on request amount

Yes Determined based on request amount

Yes Determined based on request amount Yes

Yes Determined based on request amount Yes

Yes Determined based on request amount Yes

Willingness to share the cost

Yes Determined based on request amount Yes

** For the details of loans please see Annex 1 Loan Policy

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6. Language and Currency

_/_/____ (Mon) Day Year