The Procurement Notice has been modified on 7 September 2016 - the changes are recorded in bold text.
Small and medium-sized enterprises ("SMEs") constitute a significant share in the total legal entities in Ukraine. They make a considerable contribution to job creation and of a value added to the GDP. However, the SME segment in Ukraine has been facing structural problems. Since 2014 local banks have substantially reduced their lending appetite, as a result of which availability of debt and equity financing for SMEs has become extremely limited. At the same time Ukrainian SMEs lack understanding of the standards and procedures they would need to comply with the EU standards, and need to modernise their production processes and adopt new technologies and international best practice in order to compete successfully.
In light of the challenges facing Ukrainian SMEs, the European Bank for Reconstruction and Development ("EBRD" or the "Bank") seeks to enhance their competitiveness by providing access to advisory services covering a wide range of areas, by increasing their access to finance through improved bankability and by financing directly those SMEs that have the greatest growth potential (the "Programme").
The expected outcome of the Programme is that up to 50 SMEs in Ukraine will benefit from the EBRD's direct financing. Direct financing means loans and equity by EBRD to creditworthy company, ca. 10 SMEs/year to benefit from that, ca. 50 SMEs during duration of the whole Programme, ca. EUR 100 mln total financing to be provided to these 50 SMEs subject to acceptable financial due diligence and /or IFRS restatement, among others.
The EBRD now wishes to engage consultants to assist with the pipeline preparation, project origination and implementation activities as well as post-investment monitoring and assistance.
Framework Agreements for the Programme
The EBRD intends to enter into Framework Agreements with at least three consultants (the "Framework Consultants" or the "Consultants") to enable the Bank to call upon a shortlist of pre-qualified firms, from which it can quickly and efficiently obtain reliable services. The Framework Agreements will establish, in advance, fee rates for experts, contract terms and procedures that will govern individual assignments (the "Assignments" or "Call-offs") to be required to implement the Programme. Under these Framework Agreements, the Bank will have the option, but not the obligation, to place individual Assignments with the selected Framework Consultants.
The Framework Consultants will be selected for individual Assignments in accordance with EBRD's Procurement Policies and Rules (PPR). The Bank may send to the Framework Consultant(s) specific Terms of Reference for the Assignment (the "Specific ToR"). The Specific ToR will include a description of the tasks to be performed, time-schedules and reporting instructions. The Framework Consultant(s) should respond by sending to the Bank a technical and financial proposal for the Assignment together with details of the expert(s) proposed to carry out the work. The Bank will then assess the response(s) and – subject to successful negotiations - issue a call-off notice (the "Call-Off Notice") for the individual Assignment to the selected Framework Consultant.
Description of Individual Assignments (Call-offs)
Consultancy services for individual Assignments are expected to include but not be limited to the following:
1. Financial analysis of management accounts and financial management system, which would include among other tasks:
a. Reviewing financial statements of an SME
b. Identifying key variables for the financial performance of the SME
c. Highlighting deviations from local standards
d. Reviewing the terms of existing debts
e. Analysing receivables/payables
f. Assessing management information systems and management accountability procedures
g. Assessing the quality of financial management (including working capital)
.2. Preparation of restated financial statements in accordance with the International Financial Reporting Standards ("IFRS"):
a. Restating the accounts of an SME in accordance with IFRS, including preparing detailed notes
b. Providing training to the SME's accountants/financial managers on reporting in accordance with IFRS
Status of Selection Process: Interested firms or groups of firms are hereby invited to submit expressions of interest.
Programme Start Date and Duration: The Programme started in April 2016, and the Framework Consultants are needed to commence services as soon as the Framework Agreements are concluded. The selected Framework Consultants will be engaged via Framework Agreements with a validity period of up to four years.
Cost Estimate for the Programme and Assignments: The cost estimate for individual Assignments will vary depending on their specific scope, but individual budgets are expected to be up to EUR 75,000 (exclusive of VAT).
The Consultant must determine whether any VAT would be chargeable on the services and the basis for that determination, without taking into consideration the special status of the Bank as an IFI and state this to the Bank in their response to the Invitation for Expressions of Interest. To the extent that a Consultant incurs input VAT on goods and services purchased in connection with the provision of services (e.g. VAT on airline ticket) which is not otherwise recoverable by the consultant from the local tax authority, the gross cost to the consultant of such expenses shall be treated as a reimbursable expense.
Funding Source: This Programme is expected to be funded by the European Union represented by the European Commission under the "EU4Business: Network of Business Centres in Ukraine" programme.
Eligibility: There are no eligibility restrictions.
Framework Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with relevant experience in all major areas of the financial services industry. The Consultant will have to have a relevant experience in Ukraine and/or in the region with similar financial requirements.The Consultant's experience in working with other IFIs would be an additional asset.
The Consultant's expert team is expected to include at least the following Key Experts:
a) Team Leader with preferably at least five years of previous professional experience in IFRS transformation and audit.
b) Senior Financial Expert with preferably at least four years of previous professional experience in IFRS transformation and audit.
c) Pool of additional Financial Experts with preferably at least two years of professional experience in IFRS transformation and audit.
The Consultant's team need to include experts with Ukrainian and/or Russian language skills.
Submission Requirements: In order to determine the capability and experience of Consultants seeking to be shortlisted for the Programme, the information submitted should include the following:
1. Company's/group of firms' profile, organisation and staffing.
2. Details of previous project experience or similar assignments, particularly undertaken in the past five years, including information on contract value, contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided (if different from duration), main activities and objectives.
3. CVs of Key Experts who could carry out the Assignments, detailing qualifications, experience in similar assignments, particularly assignments undertaken in the past five years, including information on contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided, assignment budget, main activities, objectives.
4. Completed Consultant Declaration Form and Contact Sheet, the template for which is available from the following web-link:
The above information should not exceed 15 pages excluding CVs and the Consultant Declaration Form and Contact Sheet.
Expressions of Interest should be submitted in English electronically through eSelection, to reach the Bank no later than the closing date. The complete expression of interest (including cover letter, CVs, Declaration and Contact Sheet etc.) shall be one file (pdf) to be uploaded to eSelection. The EBRD reserves the right to reject applications of experts submitting more than one file. Only if the permissible file size (4 MB) is exceeded, the Consultant may split the expression of interest into further files.
Bank Contact Person:
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 6765
e-mail: email@example.com (submissions should be sent through eSelection and NOT to this email address)
1. Following this invitation for expressions of interest, a shortlist of qualified firms will be formally invited to submit proposals.
2. The evaluation criteria are:
a) Firm's relevant experience in financial analysis of companies, IFRS accounting and auditing – 30%
b) Firm’s experience in Ukraine and/or in the region with similar legal and financial requirements – 20%
c) Calibre of the Key Experts – 30%
d) Ukrainian and/or Russian language knowledge – 10%
e) Firm's previous experience in working with IFIs – 10%
A new Law on Financial Restructuring (LFR) was adopted by the Ukrainian Parliament (“Verkhovna Rada of Ukraine”) on 14 June 2016 aimed at facilitating the systemic restructuring of non-performing loans (NPL) within the banking sector.
Under the LFR, the voluntary restructuring process will be administered by a technical secretariat (Secretariat), managed by the Independent Association of Banks of Ukraine (NABU) and tasked with processing and coordination of cases. The work of the Secretariat will be subject to the supervision of an oversight board (the Oversight Board), a coordination body tasked with organisation and conduct of the Kiev Approach. The Oversight Board will supervise the work of an arbitration committee (the Arbitration Committee), a body responsible for appointing arbitrators to assist with the resolution of specific disputes among debtors and creditors arising under the LFR.
The Secretariat will assist with administration of LFR cases and will be run by the NABU. It will be responsible for a number of tasks including:
• management of all administrative and procedural issues related to the LFR procedure, including registering applications for LFR and supporting the work of the Arbitration Committee in respect of any arbitral proceedings;
• preparation and submission of progress and performance reports to the Oversight Board regarding conduct of LFR cases;
• organisation and dissemination of information to parties participating in LFR proceedings; and
• development of recommendations concerning the LFR proceedings for participating parties.
Since the LFR procedure is entirely new and there is a lack of out-of-court restructuring culture in Ukraine, the Secretariat would benefit from external expert guidance from the outset on the new procedure and capacity-building for its members.
The LFR provides for creation of the Arbitration Committee and relies on the use of binding arbitration under The Law of Ukraine "On International Commercial Arbitration". This law is well-established in Ukraine and arbitral awards are recognized by Ukrainian courts. The debtor consents to arbitration of any disputes in its restructuring application and the banks may submit to arbitration where they sign a ‘Framework Agreement’ or ‘Restructuring Plan’ (each as defined in the LFR). The Arbitration Committee manages the dispute resolution process and is supported by qualified arbitrators.
The purpose of this Project is to assist with the establishment of the Secretariat and the Arbitration Committee and capacity building.
This will involve:
1) providing guidance on all matters related to the establishment of the Secretariat and the Arbitration Committee at the outset of the project;
2) Assistance with drafting an operation plan for both organisations and any template documents required to initiate a procedure before the Secretariat or the Arbitration Committee;
3) providing assistance to both organisations on a regular basis. This assistance shall include but it is not limited to guidance for the NABU on an effective financing structure for the Secretariat and the Arbitration Committee to be implemented following completion of the EBRD project;
4) Drafting of restructuring principles in line with international standards and best practices;
5) Developing and implementing training for representatives of the Secretariat and, if needed, the Arbitration Committee to ensure effective implementation of the framework.
The Bank now intends to engage an individual expert (the Consultant) to conduct the above activities aiming at supporting the NABU to implement the LFR (the Assignment).
The selected Consultant is expected to provide the following services:
Work closely with the NABU and provide guidance on all matters related to the establishment of the Secretariat and the Arbitration Committee at the outset of the project. The Consultant shall be required to draft an operation plan for both organisations and any template documents required to initiate a procedure before the Secretariat or the Arbitration Committee. After an initial period (of two to four weeks), the Consultant shall be required to provide assistance to both organisations on a regular basis for a period of at least one year. This assistance shall include guidance for the NABU on an effective financing structure for the Secretariat and the Arbitration Committee to be implemented following completion of the EBRD project.
Activity 2: Drafting restructuring guidelines
The Consultant shall be required to draft restructuring guidelines for management of financial restructuring cases by the Secretariat in line with international standards and best practices as instructed by the EBRD operation leader.
Activity 3: Development of training programme
The Consultant shall develop a three-day module for Secretariat representatives on selected topics relevant to the role of the Secretariat under the LFR. Training will guide Secretariat representatives on the purpose and scope of financial restructuring and aim to increase the capacity of the Secretariat to conduct certain tasks, notably reporting on the outcomes of financial restructuring to the Oversight Board.
Activity 4: Delivery of training
The Consultant shall deliver training to Secretariat members in accordance with the training programme developed by the Consultant under Activity 3. The Consultant shall also contribute, as requested, to any training of the Arbitration Committee members in restructuring-related matters.
Activity 5: Participation in stakeholder meetings
The Consultant shall organise and actively participate in any meetings regarding formation of the Secretariat and in any strategically important meetings organised by the Secretariat with a view to providing guidance on the organisation and responsibilities of the Secretariat under the LFR
The Consultant shall participate in the organisation and delivery of any public events (in collaboration with other experts where necessary) organised by the EBRD and the NABU to raise awareness of the LFR. The conference will be an opportunity to encourage discussion among key players and outreach to relevant parties within the private sector.
Activity 7: Monitoring and Reporting
The Consultant shall monitor the work of the Secretariat and the Arbitration Committee as applicable and report on their activities to the EBRD on a quarterly basis.
Status of Selection Process: Interested individual experts or firms proposing an individual expert are hereby invited to submit Expressions of Interest.
Assignment Start Date and Duration: The Assignment is expected to start at the end of August 2016 and has an estimated overall duration of 14 months.
Maximum Cost Estimate for the Assignment: EUR 74,840.00 (exclusive of VAT).
The Consultant must determine whether any VAT would be chargeable on the services and the basis for that determination, without taking into consideration the special status of the Bank as an IFI and state this to the Bank in their response to the Invitation for Expressions of Interest. To the extent that a Consultant incurs input VAT on goods and services purchased in connection with the provision of services (e.g. VAT on airline ticket) which is not otherwise recoverable by the Consultant from the local tax authority, the gross cost to the consultant of such expenses shall be treated as a reimbursable expense.
Funding Source: The Assignment is expected to be funded by the EBRD-Ukraine Stabilisation and Sustainable Growth Multi-Donor Account. Contracting will be subject to availability of funding.
Eligibility: There are no eligibility restrictions.
Consultant Profile: Individual services are required. The Consultant will be an individual with previous extensive local and international experience in legal and financial matters related to multi-creditor restructuring (including out-of-court restructurings ).
The Consultant should have preferably 10 years of previous professional experience in restructuring in an international environment and practical experience in managing/coordinating voluntary multi-creditor restructuring cases;
The Consultant shall be fluent in English. Working knowledge of Ukrainian will be an advantage.
Interested individual experts or firms proposing an individual expert are hereby invited to submit Expressions of Interest. In order to determine the qualifications and competence of experts seeking to be selected, experts or the firms proposing an expert must submit an Expression of Interest containing the following information:
- Cover letter including full contact details, inclusive of address of the individual (or company), phone and fax numbers, and email address;
- Detailed Curriculum Vitae;
- Details of the expert's detailing qualifications, experience in similar assignments, particularly assignments undertaken in the previous five years, including information on contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided, main activities, objectives;
-Completed Contact Sheet, the template for which is available from the following web-link:
Failure to provide the duly completed and signed Consultant Declaration may result in the applicant being disqualified from the selection process.
The Expression of Interest should not exceed 25 pages (excluding CVs, Consultant Declaration and Contact Sheet).
In case firms wish to submit more than one CV, they must register each CV with a unique e-mail address through e-Selection. Should this requirement not be met the EBRD reserves the right to consider any Expression of Interest containing more than one CV non-responsive.
Expressions of Interest should be submitted, in English, electronically through e-Selection, in PDF format or electronic formats compatible with Microsoft Office 2003 not later than the deadline mentioned above. DO NOT send Expressions of Interest to the EBRD's contact person.
The complete Expression of Interest (including CVs, Consultant Declaration and Contact Sheet) should be submitted, in English electronically through e-Selection, to reach the Bank not later than the closing date referred to above. The expression of interest shall be one file (pdf). The EBRD reserves the right to reject applications of firms submitting more than one file. Only if the permissible file size is exceeded (4MB), the Consultant may split the expression of interest into further files.
Bank Contact Person:
Advisor, Technical Co-operation
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 207 338 6577
e-mail: MatushiM@ebrd.com (submissions should be sent through eSelection and NOT to this email address)
1. The selection will normally be made from responses to this notification only. Consultants will not be asked to submit a proposal. The highest-ranked Consultant will be selected from a shortlist and be invited to negotiate the contract, subject to availability of funding.
2. The shortlist criteria are:
(a) Expert’s international and local experience in legal and financial matters related to multi-creditor restructurings - 50%
(d) Expert’s experience in restructuring in an international environment – 30%
(c) Expert’s practical experience in managing/coordinating voluntary multi-creditor restructuring cases – 20%