EOI for PO selection under ICS Program

REQUEST FOR EXPRESSION OF INTEREST
For Selection of
Non-Governmental Organizations (NGO)/Micro-Finance Institutions (MFIs)/ Private Entities
for Implementation of:
IDCOL’s Improved Cook Stove (ICS) Program
Infrastructure Development Company Limited (IDCOL)
UTC Building, Level – 16
8 Panthapath, Kawranbazar Dhaka-1215
March 2015
Infrastructure Development Company Limited (“IDCOL”)
Section 1: Invitation to Participate in Improved Cook Stove (ICS) Program
Program
IDCOL is a public-private sector institution promoting economic development in Bangladesh by
encouraging private sector investment in infrastructure, renewable energy and other eco-friendly
sectors. IDCOL seeks applications from non-governmental organizations (“NGOs”)/ micro-finance
institutions (“MFIs”)/ private entities for selection as Partner Organizations (hereafter referred to
as “POs”) under its Renewable Energy Program for installation of Improved Cook Stoves (ICSs) in
areas where traditional cook stoves are used as the primary mode of cooking (the “Project”).
Selection of new POs will accelerate dissemination of ICSs across Bangladesh which will fulfill the
basic energy requirements in the rural areas as well as reduce exposure to indoor air pollution.
NGOs / MFIs / private entities having successful track record of doing business and/or micro-credit
operations and interested to work in the field of renewable energy may apply to become a PO of
IDCOL’s ICS Program. IDCOL will provide institutional development grant and technical assistance,
as applicable, sourced from the World Bank and other development partners to POs for
implementation of the project. IDCOL has a target of financing installation of 1 million ICSs by 2018.
Interested organizations are requested to download complete application package from the link
provided below. Application package may also be collected from IDCOL office at a cost of BDT500
(non-refundable). Completed applications must be submitted to the address mentioned below
before 4:00 p.m. on 15 April, 2015.
Applications will be evaluated by an independent selection committee in accordance with the
criteria described in the application package. Selected POs will be required to sign Participation
Agreements with IDCOL. IDCOL reserves the right to accept or reject any application without
assigning any reason.
The Applications should be sent to the following address:
Infrastructure Development Company Limited
UTC Building, Level – 17,
8 Panthapath, Kawranbazar, Dhaka-1215.
Should you have any queries or need any clarification, please contact:
Phone: 9102171-8 (Ext-255)
Fax: +880-2-8116663
E-mail: ics@idcol.org
Complete application package can be found at www.idcol.org
IDCOL reserves the right to accept or reject any application without explaining any reason.
An Overview of IDCOL’s ICS Program
Infrastructure Development Company Limited (IDCOL) with support from the World Bank has
undertaken to disseminate one million ICS under IDCOL’s ICS Program. The objective of the
program is to increase thermal efficiency of the stoves while reducing Indoor Air Pollution (IAP)
exposure especially for women and children through strengthening supply of acceptable stoves,
establishing supply chain of alternative fuels and establishing a strong base for achieving 100%
clean cooking solutions by 2030.
IDCOL aims to install 1 million ICS by 2018 and the year wise installation target is given in the table
below:
Year
2015
2016
2017
2018
Installation Target 100,000 200,000 300,000 400,000
IDCOL is currently implementing the program through 42 POs in 186 Upazilas. It adopted a cluster
based approach for implementing the program. Each Upazila consists a cluster and only one PO
works in a particular cluster. The program became operational since August, 2014 and 16,057
stoves installed till February, 2015. Under the program, IDCOL provides BDT 505.26 per ICS as
grant to the POs for awareness and capacity building of Improved Cook Stove Sector in Bangladesh.
Notably, IDCOL does not provide any subsidy for stoves.
Besides the grant, IDCOL assist the POs in their capacity building through regular arrangement of
technician training, mason training, field promotion training, IT training, management training etc.
On the other hand, IDCOL is going to run a countrywide promotional campaign of its ICS Program.
Furthermore, IDCOL provide various promotional materials like leaflet, user manual, calendar etc.
to its POs.
Currently six selected models of stoves are being disseminated under the program which are made
of concrete. These stoves are being produced by POs and local entrepreneurs. The thermal
efficiency of the selected stoves ranges from 20% to 25% while the efficiency of the traditional
stoves is around 8%. Recently IDCOL invited national and international stove manufacturers for
certification of their higher level thermal efficiency (> 25%) ICSs which in turn, if certified, will be
disseminated under IDCOL’s ICS Program. On the other hand, IDCOL has a continuous effort for
research and development in this sector. IDCOL engaged ‘Department of Chemical Engineering’ of
BUET to develop improved models of ICSs and low cost clean fuels such as briquette and pellet.
Implementation Arrangements
IDCOL aims to achieve this target through implementing a market oriented approach that involves:


Partnering with non-governmental/private sector organizations operating throughout
Bangladesh
Creating ICS clusters throughout the country. Each cluster having an installation target
between 2,000 to 10,000 ICSs, thus allowing for broader market penetration



Developing entrepreneur /enterprise/ ICS manufacturing unit in each cluster who will be
responsible for manufacturing, supplying and ensuring the after sales service. The PO may
have its own manufacturing unit in the cluster.
Providing grant facilities to the POs amounting BDT 505.26 per ICS for institutional and
market development, while encouraging the POs to undertake post-installation service of
the installed ICSs
Offering technical assistance such as households (HHs) and POs training, publicity
campaign, quality assurance programs, ICS model testing and approval, impact study on
health, among others.
Grants
IDCOL is providing grant facilities to the POs to encourage them to conduct ICS demand creation
activities. The grant component of the project is split between the PO and the entrepreneur/ICSmanufacturers of the ICS in the following format:
For POs
Tk. 405.26 per stove
For Entrepreneurs
*Tk. 100 per stove
Total Grant
Tk. 505.26
*The PO will retain it if the PO has own ICS manufacturing unit
Technical assistance
IDCOL provides Technical Assistance to the POs including support for (a) households and POs
training; (b) publicity campaign; (c) quality assurance programs; (d) developing the commercial
capabilities of ICS manufacturers; and (e) other activities as considered relevant by IDCOL for
project implementation. Roles of other stakeholders in this project are described below:
Households
Households (HHs) referred to those who are using traditional cook stoves for their cooking needs.
The HHs and small businesses in rural/semi-urban/urban communities will purchase these ICSs.
Individual HHs have to buy directly from the enterprises/entrepreneurs/POs.
Partner Organizations (POs)
The POs operate at HHs’ end in this project. The Project proposes to implement ICS program in 488
upazilas in the country by the Partner Organizations(POs) selected based on field presence and
proven institutional capacity as described in their proposal in response to request for Expression of
Interest (EOI) floated by IDCOL. The role of the POs starts with providing information on their
project areas and their existing presence in those areas. The POs may submit proposal for one or
multiple clusters. The number of clusters awarded will be based on the discretion of IDCOL. IDCOL
will select POs for the project following specific selection criteria (described in the Data sheet). POs
will identify potential customers in their operational area and educate them about ICS and help
them select a package that matches their requirement and affordability. The PO will select
entrepreneur(s) to be established in a particular cluster for manufacturing the ICSs as per IDCOL
approved model(s). The PO may have its own ICS manufacturing unit and in such case that PO has
to manufacture, supply and ensure the after sales service to the installed ICSs. The PO must also
ensure one-year warranty and after sales service to the ICSs. Troubleshooting and training the HHs
about the proper use of ICS are also the responsibilities of POs. Along with maintaining relationship
with HHs and manufacturers, POs need to submit disbursement applications in prescribed format
(included in the Participation Agreement) to claim grants from IDCOL.
Technical Committee
For the ICS Program, an independent Technical Committee (TC) is formed to determine the
technical standards as well as approve the eligible models. TC comprises members from
engineering university, national ICS expert, Local Government Engineering Division (LGED),
Department of Environment, IDCOL and others, if any.
Operations Committee:
Operations Committee is a committee which meets monthly to discuss different operational issues
under the Program, consisting of program-in-charges from all POs selected under the Program and
relevant officials of IDCOL and to be chaired by the Executive Director and CEO of IDCOL or his/her
representative.
Section 2: Information to NGO/MFI/Private Entity
1. Introduction
1.1
The Infrastructure Development Company Limited (IDCOL) will select Partner
Organizations (POs) in accordance with the selection criteria specified in the Data Sheet.
1.2
The NGO/MFI/Private Entity are invited to submit a Business Plan for the assignment
named in the Data Sheet. The Business Plan will be one of the bases for selection of PO and
IDCOL will ultimately sign Participation Agreement (sample agreement is given in Section
6) with the selected organization. Once the agreement is signed, activities of the
NGO/MFI/Private Entity shall be governed according to the terms and conditions of the
Participation Agreement.
1.3
The PO may submit Business Plan with a project target within the range of 2,000 ~ 10,000
as they feel being capable to implement. However, this target may later be annually revised
as per the provision of the Participation Agreement.
1.4
Please note that (i) the costs of preparing the EOI including visits to IDCOL are not
reimbursable as a direct cost of the EOI; and (ii) IDCOL is not bound to accept the Business
Plans submitted by the applicant.
1.5
IDCOL policy requires that NGO/MFI/Private Entity provide professional, objective, and
impartial services and at all times hold IDCOL’s interests paramount, without any
consideration for future work, and strictly avoid conflicts with other assignments or their
own corporate interests. NGO/MFI/Private Entity shall not be hired for any assignment that
would be in conflict with their prior or current obligations to other Executing Agencies, or
that may place them in a position of not being able to carry out the project activities in the
best interest of IDCOL.
1.6
Without limitation on the generality of sub-section 1.5, NGO/MFI/Private Entity shall not be
hired under the circumstances set forth below:
(a) NGO/MFI/Private Entity shall not be hired for any project activity, which, by its nature,
may be in conflict with another assignment of the NGO/MFI/Private Entity.
2. Clarification and Amendment of EOI Documents
2.1
NGO/MFI/Private Entity may request a clarification of any of the EOI documents up to the
number of days indicated in the Data Sheet before the Business Plan submission date.
2.2
At any time before the submission of Business Plans, IDCOL may, for any reason, amend the
EOI. IDCOL may at its discretion extend the deadline for the submission of Business Plans.
3. Preparation of EOI Documents
3.1
NGO/MFI/Private Entity is requested to submit the documents in English language.
3.2
In preparing the Business Plan, NGO/MFI/Private Entity is expected to examine the
documents constituting this EOI in detail.
3.3
While preparing the Business Plan, NGO/MFI/Private Entity must give particular
attention to the following:
(i) It is desirable that the majority of the key professional staff proposed be
permanent employees of the NGO/MFI/Private Entity or has an extended and stable
working relationship with it.
(ii) Reports to be issued by the NGO/MFI/Private Entity as part of this assignment
shall be in English language.
3.4
Institutional capacity: The institutional capacity of the NGO/MFI/Private Entity
should be described in detail to adequately document the capability of the
NGO/MFI/Private Entity.
(a) The composition of the organization’s professional and managerial staff and
type of staff, their qualifications and the tasks that are assigned to each staff team
member should be described in the Annex to Business Plan. The composition of the
proposed professional and managerial staff and type of staff, their qualifications and
the tasks that would be assigned to each staff team member should be described in
the Annex to Business Plan.
(b) CV of the Chief Executive Officer (CEO)/ Executive Director (ED)/ Managing
Director (MD) of the NGO/MFI/Private Entity shall be recently signed by the CEO
and the authorized representative submitting the Business Plan. Key information
should include academic qualification, number of years working for the NGO and
degree of responsibility held in various assignments during the last five (5) years.
(c) Financial management capacity and efficiency should be described with the
Business Plan highlighting the financial situation as reflected in the audit reports. To
demonstrate the financial management capacity, the Audit report of the last three
financial years and bank transaction statement of the same period should be
included with the Annex to Business Plan.
(d) Organizational structure of the NGO/MFI/Private Entity should be included in
the Business Plan in the Annex to Business Plan.
(e) Familiarity with the proposed working area should be described and its
documentary evidence should also be attached to the Business Plan. This will
include maintaining of a regular office during project implementation in the
proposed working area and working experience in the area in any field.
(f) Working experience with various government and non-governmental
institutions. Documentary evidence should be included in the Annex to Business
Plan.
(g) Integrated community development activities undertaken by the
NGO/MGI/Private Entity specifically in the field of renewable energy skill training,
health, nutrition, credit, social development activities etc. Documentary evidence
should be included in the Annex to Business Plan.
4. Submission, Receipt, and Opening of Business Plans
4.1
The original Business Plan and Application shall be prepared in indelible ink. It shall
contain no interlineations or overwriting, except as necessary to correct errors
made by the NGO/MFI/Private Entity itself. Any such corrections must be initialed
by the persons or person who sign(s) the Business Plans.
4.2
An authorized representative of the NGO/MFI/Private Entity shall initial all pages of
the Business Plan.
4.3
The completed Business Plan and Application Form must be delivered at the
submission address on or before the time and date stated in the Data Sheet.
4.4
As soon as available the Business Plan shall be opened by the evaluation committee.
5. Business Plan Evaluation
5.1
Any effort by the NGO/MFI/Private Entity to influence IDCOL in the IDCOL’s
evaluation of EOI, or selection process shall result in the outright rejection of the
application of the concerned NGO/MFI/Private Entity.
5.2
The information provided in the Business Plan received will be enquired into by
IDCOL through various methods including physical inspection, if required.
5.3
The evaluation committee appointed by IDCOL as a whole and each of its members
individually, evaluates the Business Plans on the basis of the eligibility criteria
detailed in the Data Sheet.
5.4
The detailed evaluation criteria and the number of points to be given under each of
the evaluation criteria for POs are:
Subject
Points
1. Financial Performance
i.
10
Equity
ii. Profit on RLF/ROE
2. Institutional Capacity
i.
20
Audit report findings
ii.
Number and type of staff i.e. team composition and task
assignments
iii. Academic qualification of Chief Executive Officer (CEO)
iv. Experience of CEO
v.
Qualification and experience of proposed professional staff
3. Familiarity in the Program Area
i.
10
Working experience in the program area
4. Linkage and Network
10
i.
Working experience with various government or nongovernmental institutions
ii. Membership and networking with professional bodies
iii. Experience in integrated community development activities
undertaken by the NGO highlighting the credit activities, skill
training, health, nutrition, social development etc.
Total
50
6. Signing of Participation Agreement
6.1
Participation Agreement will be signed with the successful NGO/MFI/Private Entity,
which will provide for mutual rights and obligations of both parties under the
Project.
7. Confidentiality
7.1
Information relating to evaluation of Business Plans and recommendations
concerning awards shall not be disclosed to the NGO/MFI/Private Entity who
submitted the Business Plans or to other persons not officially concerned with the
process, until the winning NGO/MFI/Private Entity has been notified that it has
been selected as a PO under the project.
Section 3: Data Sheet
Clause
Subject
2.1
Clarifications may be requested within 7 days before the submission date.
4.3
The Business Plan and Application submission address is:
Infrastructure Development Company Limited (IDCOL)
UTC Building, Level - 17,
8 Panthapath, Kawran Bazar,
Dhaka-1215
Phones: 9102171-8 (Ext-255) Fax: 8116663
E-mail: ics@idcol.org
Web: www.idcol.org
Business Plans must be submitted no later than the following date and time: 4:00 PM Dhaka
Standard Time, 15 April, 2015.
5.3
Eligibility Criteria for Participating Organizations (POs)
For All Participating Organizations
(a) Satisfactory business plan approved by the PO’s Board of Directors as to the overall
planning in relation to the use of the IDCOL Grant under the Project, and containing
inter-alia; proposed internal organization to implement the business plan, details of
responsible business team, capacity to originate, evaluate and approve proposals,
manage subsequent follow-up monitoring.
(b) Particulars of the operational and financial results of the PO for at least the previous
three (3) years based on an acceptable audited report. The PO’s operations should
be profitable for at least the past two years. However, in reaching an assessment
about potential profitability, IDCOL will also consider (i) forward looking business
prospects and potential for profitable operations; and (ii) if the PO is operating a
ICS/Biogas program, the performance of their ICS business.
(c) After fulfilling the eligibility criteria by PO for project entry, the PO shall continue to
meet the eligibility aforementioned criteria, satisfactory to IDCOL, which shall
monitor PO’s compliance therewith annually. If the PO fails at any time to satisfy the
above specified criteria IDCOL reserves the right to suspend “Grant” under the
Project until the PO has taken specific steps to address its problems in a manner
satisfactory to IDCOL.
(d) PO has established and maintained sound and transparent accounting, MIS and
internal audit system.
(e) Accounts are audited by a reputable external auditor on an annual basis.
(f) A lawful entity organized under the laws of Bangladesh, complying with pertinent
laws and regulations regarding capital adequacy (minimum Tk. 1,000,000),
classification of assets, non-accrual of interest and provisioning, exposure limits,
etc.
(g) Capable of managing rural renewable energy program, as evidenced by satisfactory
business plan and operating results.
Section 4: Application Form
Infrastructure Development Company Limited
UTC Building, Level - 17, 8 Panthapath, Kawran Bazar, Dhaka-1215, Bangladesh
Phone: 880-2-9102171-8, Fax: 880-2-8116663, E-mail: ics@idcol.org, Web:
www.idcol.org
APPLICATION FORM FOR SELECTION AS PARTNER ORGANIZATION (“PO”)
SL.
Subject
1.
Name of the
NGO/MFI/Private
Entity
2.
Year of
establishment
3.
Nature of business
4.
Address of the
head office
Telephone
Information
Fax
SL.
Subject
Information
E-mail
5.
6.
Web-site
Registration
Registration Body
(a).
Microcredit
regulatory Authority
(b).
NGO Affairs Bureau
(c).
Directorate of Social
Welfare
(d).
Joint Stock Company
(e).
Other (specify)
Registration no.
Address of the
registered office, if
different from
head office
Telephone
Fax
Date
SL.
Subject
Information
E-mail
Web-site
7.
Ownership
structure of the
organization
8.
List the core
activities /
programs
9.
Affiliation
10.
Affiliated With
(a).
Palli Karma Sahayak
Foundation (“PKSF”)
(b).
Bank of Small
Industries and
Commerce (”BASIC”)
(c).
Other (specify)
Program outreach
Local
Yes/No
Date of affiliation
Divisional
National
SL.
Subject
Information
11.
Area of operation
(name of
Districts)
12.
Total staff
strength
13.
Total number of
branch offices
14.
Has a renewable
energy / ICS
program?
Yes
If yes, name of
program
Date
program
started
No
Date
program
ended
No. of system
installed so far
Source of fund
(a). Solar home
system
(“SHS”)
(b). Wind
(c). Hydro
(d). Biomass
(e). ICS
(f). Other
(specify)
15.
(a). Financial
information
(as per the
fiscal years)
(a). Total assets
31 December 2012/
30 June 2012
31 December 2013/
30 June 2013
31 December 2014 /
30 June 2014
(Taka)
(Taka)
(Taka)
SL.
Subject
Information
(b). Total
Liabilities
(c). Total equity
capital
(d). RLF
(e). Total
revenues
(f). Total
operating
expenses
(g). Total
operating
income
(h). Interest
expense
(i). Net income
Section 5 Business Plan
OUTLINE OF PRO-FORMA BUSINESS PLAN FOR NGO/MFI
1. Executive Summary
a. Objectives for participating in the project
b. Summary of the main assumptions for the project
c. The management structure for implementing the project
2. Presentation of organizations for:
I) NGO/MFI
a. Track record in micro-credit (amounts, numbers of clients, types of credit, recovery rates)
b. Plans and/or track record in ICS, lessons learnt in previous projects
II) Private businesses/entities
a. Track record in business/operation (amounts, numbers of clients, types of activities,
profitability)
b. Plans and/or track record in ICS, lessons learnt in previous projects
3. Operational Plan
a. Identification of HHs (e.g. selection criteria, assumed monthly energy-budget, verification
of lower income level).
b. Project areas (i.e., clusters)
c. Target. Name the number of ICS the NGO/MFI/Private Entity is envisaging to promote
over the Project life (2015 - 2018)
d. Identification of product range (e.g. service level, performance criteria, various items in
range, maintenance and guarantee issues)
e. Operational procedures, e.g.
i. Marketing methods
ii. Supply: quality and procurement; service and guarantees




Partnership with ICS entrepreneurs for a long term business horizon
Clear arrangement about service and maintenance
Training
Warranty arrangements: very specific with respect to ICS guarantee
to avoid disputes and HH dissatisfaction guarantee not just on
components but also on performance
iii. Installation: needs; staff; equipment etc.
iv. Maintenance and service
v. Reporting, accounting and monitoring.
4. Financial Paragraphs
a. Separate project accounting
b. Break down to local offices and then aggregate for the total project
c. Budgets:
i. Financing: e.g. break down of financing of ICS (grants + NGO/MFI own funds),
d. Full financial forecasts, including Statement of Cash Flow, Balance Sheet, and Income
Statement
5. Key Issues
a. Challenges (identify the factors that are considered as major constraints by the
MFI/NGO/Private Entity in promoting ICS Project)
b. Quality issues: Quality above Quantity
i. Learning by doing
ii. Flexible targets
iii. Adjustments allowed
c. Service and maintenance arrangements
d. Start easy:
i. Low barrier areas first



Lower operational costs if close by MFI’s/NGO’s/Private Entity’s local office
Higher income so better repayment
Kick Start in numbers installed
ii. More complex and remote areas next
6. Closing Remarks, Pending Issues, Questions
Annex to Business Plan
1. Organizational Information
[Please attach the memorandum and articles association of your organization, copy of registration
certificates mentioned in the application form, brochures, annual reports, etc.]
2. Composition of Organizational Staff Team
Name
…….
……..
Professional/Managerial Staff
Position
Task
3. Composition of Proposed Staff Team
Professional/Managerial Staff
SL
Proposed
Qualification
Experience
Position
Name of Upazila
Remark
4. Format of Curriculum Vitae (CV) of Chief Executive Officer (CEO)/Executive Director
(ED)/Managing Director (MD)
Name:
Designation:
Date of Birth:
Years with NGO /Entity:
Nationality:
Membership in Professional Societies:
Detailed Tasks Assigned:
Key Qualifications:
[Give an outline of experience and training. Describe degree of responsibility on relevant previous
assignments and give dates and locations. Use about half a page.]
Education:
[Summarize college/university and other specialized education, giving names of schools, dates attended, and degrees obtained (Enclose photograph, copy of key qualification certificates). Use about
one quarter of a page.]
Employment Record:
[Starting with present position, list in reverse order every employment held. List all positions held since
graduation including dates, names of employing NGOs, titles of positions held, and locations of
assignments. For experience in last ten years, also give types of activities performed and Executing
Agency references, where appropriate. Use about two pages.]
Languages:
[For each language indicates proficiency: excellent, good, fair, or poor in speaking, reading, and
writing.]
Certification:
I, the undersigned, certify that to the best of my knowledge and belief, these data correctly describe
my qualifications, my experience, and me.
[Signature of CEO and authorized representative of the MFI/NGO/Private Entity] Day/Month/Year
Full name of CEO/ED/MD:____________________________________________
Full name of authorized representative: ___________________________
5. Audit Report
[Please enclose the certified Audit Report for the last three years (2011-2012 & 2012-2013 & 20132014)]
6. Financial Solvency
[Please enclose Bank Statement of the period for which audit report has been submitted and de-tailed
Bank Information (Name of the bank with address, Account Number(s) with operational
arrangement) here]
7. Organizational Structure of the NGO
[Please insert the Organizational structure of the organization i.e. how it is managing its activities and
how it is planning to implement the Post-Literacy and continuing Program]
8. Familiarity of the MFI/NGO/Private Entity in the proposed project area
[Describe the details of office establishment and years of working experience in the proposed
Thana/Upazila]
9. Working Experience of the NGO
Working Experience with various government or non-governmental institutions
[This is a sample format, NGO/MFI may use different format if they desired]
Status of the
Name of
Organization
Assignment
SL
Organization
(Governmental or Duration
Major Tasks
Worked With
Nongovernmental)
Integrated community development activities of the NGO
[This should include credit, skill training, health, nutrition, social development and other related
activities of the NGO. This is a sample format, NGO may use different format if they desired]
SL.
Title of the
Target
Achievements to Lessons Learned
Program
Population
Date
etc.