UNCDF provides investment capital and technical support to both the public and the private sector. It provides capital financing -- in the forms of grants, soft loans and credit enhancement – and the technical expertise to unleash sustainable financing at the local level.
UNCDF’s work on inclusive finance seeks to develop inclusive financial systems and ensure that a range of financial products is available to all segments of society, at a reasonable cost, and on a sustainable basis. UNCDF supports a wide range of providers (e.g. microfinance institutions, banks, cooperatives, money transfer companies) and a variety of financial products and services (e.g. savings, credit, insurance, payments, and remittances). UNCDF also supports newer delivery channels (e.g. mobile phone networks) that offer tremendous potential for scale.
CleanStart Programme:
The CleanStart Programme’s vision is to expand financing for low-income consumers and small enterprises whom/which want to transition to cleaner and more efficient energy. To make this happen it partners with microfinance institutions and energy enterprises – offering risk capital grants, as well as other types of financing and advice – to test scalable financing solutions in varying market conditions.
As a global programme, CleanStart aims to support low-income consumers in six countries to transition to cleaner and more efficient energy through microfinance by 2017. The programme is designed to provide risk capital and technical assistance to competitively selected financial service providers and energy enterprises to:
- Develop and refine scalable consumer financing models (Output 1: Finance for Clean Energy);
- Increase the ‘scale’ potential of these models by tackling critical bottlenecks in the value chain (e.g. distribution, consumer awareness) (Output 2: Technical Assistance for Clean Energy);
- Make research and tools generated in the process widely available to the industry (Output 3: Global Knowledge and Learning);
- Advocate for positive industry-wide changes and broker partnerships with upstream value chain actors (e.g. investors, policy makers) (Output 4: Advocacy and Partnerships).
CleanStart encourages the brokering of risk-sharing partnerships between downstream as well as upstream value chain actors, as well as de-risking some investment opportunities. In so doing, CleanStart is supporting a range of enterprises beyond microfinance institutions, and promoting financing solutions that go beyond credit for energy.
CleanStart was launched as a global programme in 2012. CleanStart was first launched at country-level in Nepal where it is partnering with four financial services providers that provide energy lending for solar and improved cooking solutions.
In addition to Nepal as well as Uganda, CleanStart will now focus its additional activities in Ethiopia and possibly Tanzania and/or Cambodia. The programme will focus on the following key interventions to promote energy financing, and selectively deploy in these geographies depending on market needs and where CleanStart can add most value:
- Support microfinance institutions on energy lending through grants and technical assistance;
- Support energy enterprises with viable business models to achieve market breakthroughs through seed capital and technical assistance;
- Supporting the development of guarantee mechanisms to microfinance institutions and banks lending to MSMEs and SMEs (with an energy focus);
- Strategically collaborate with UNCDF’s financial inclusion and local development finance initiatives in areas such as mobile money (MM4P), demand-side surveys and research (MAP), and private-public financing for energy projects that focus on energy access;
- Develop toolkits for energy lending and produce consumer-side impact research;
- Expand rural energy finance footprint in partnership with Participatory Microfinance Group for Africa (PAMIGA), a network of locally-owned African microfinance institutions developing rural finance in sub-Saharan African countries. PAMIGA is currently implementing their Energy and Microfinance Programme in Cameroon, Ethiopia, and planning for Burkina Faso, Senegal, Tanzania, and Kenya. CleanStart is part funding this Programme with a view to co-benefit from the knowledge and experiences that are generated from it, as well as linking with PAMIGA’s investment fund, PAMIGA Finance, S.A.;
- Engage closely with government partners and regional/global initiatives to influence high-level dialogue and policies that help create an enabling environment for energy markets for low-income markets to flourish.
CleanStart already has four financial institution partners in Nepal. CleanStart may select three to four financial service provider and energy enterprise partners each in Uganda and Ethiopia; and up to two financial service provider and/or energy enterprise partners in Tanzania and/or Cambodia.
CleanStart is now looking to supplement its core programme team with one Decentralized Energy Investment Advisor. The Advisor will work closely with the CleanStart programme team, the Financial Inclusion Practice Area team in New York, and other UNCDF programmes which have linkages with the energy sector, such as agricultural finance, mobile money and financial inclusion sector diagnostics. The Advisor may also have to collaborate with or seek support from external advisors and partners of the Programme.
UNCDF shall enter into a non-exclusive long term agreement (LTA) with the selected Consultant(s) and shall provide specific deliverables and time frames for each task, as and when required. Prospective individuals are requested to take note of the following:
- This solicitation is for a Long-Term Agreement (LTA) for one year and renewable up to three years linked to satisfactory performance of the individual consultant. “LTA” refers to a mutual arrangement whereby the Consultant will provide services as required, over a specific period of time;
- An LTA is a mutual arrangement between UNCDF and an individual to provide the required services at prescribed prices or provisions over a period of 12-36 months, with potential extension of one year. UNCDF reserves the right to rescind the agreement during that period should performance of the consultant not meet its requirements;
- Under an LTA, UNCDF does not warrant that any quantity of services shall be purchased during the term of this Agreement. Where a request for services arises, UNCDF shall directly contract the consultant based on its need to carry out those activities. A specific Term of Reference (TOR) outlining the outputs for each assignment shall be provided and an Individual Contract would be issued to the consultant, detailing the time frame.
The objective of this consultancy is to assist CleanStart in developing an investment agenda for energy access and explore investment vehicles for positioning UNCDF not only on clean energy, but also in a broader investment agenda related to the "real economy" space (SME including in areas such as agriculture value chain, digital finance "plus" application, etc.).
This will be accomplished in the following ways:
- Identify the niche area(s) that is(are) currently not serviced by the investors and TA providers, and where CleanStart can play a niche role crowding in private finance and TA, so as to support financial intermediaries and energy enterprises leverage and grow to expand their outreach; analyze the opportunity cost of choosing such niche area(s);
- Assists with the development of the relevant tools, models and Standard Operating Procedures for a CleanStart Investment agenda;
- Documents role of CleanStart (UNCDF) in moving into the SME investment space.
Duties and Responsibilities
Summary of Key Responsibilities:
Propose and validate the position of UNCDF and CleanStart within the wider energy access investment landscape (both private and public):
- Analyze the demand and supply of investment for third/forth tier opportunities in the energy enterprise space in Asia and Africa;
- Model the various leverage possibilities for different funding modalities and the cost/benefit of each in terms of complexity involved and quick wins, for example, the use of: 1) concessional loans, 2) credit enhancements (such as a first loss facility) 3) other guarantee; 4) quasi equity; 5) advisory services (such as TA); 6) a special purpose or ad hoc Investment Vehicle (managed by UNCDF or other partners) that targets energy access—or a combination of the above;
- Make recommendations for course of action on where on the investment spectrum to play a role (and at what stage), considering UNCDF’s internal capacity to position itself (for example underwriting capacity for debt);
- Ascertain the viability and relative added value of setting up an ad hoc capitalized entity or fund for investment at UNCDF and building a specialized management team to advise the fund on investment opportunities;
- Validate UNCDF/CleanStart approach with selected stakeholders/peers in this field (including but not limited to impact investment funds, banks and corporate players of the energy sector).
Develop specific tools and standard operating procedures for employing various funding instruments and consider the legal implications and requirements:
- Design key tools that CleanStart requires for its investment agenda (following the identification of the niche area(s) which CleanStart will occupy—including a detailed analysis of setting up of an in-house investment fund and investment team;
- Develop a business plan for roll-out of tools with a clear timeframe and critical-path milestones and budget;
- Develop a pipeline of potential investees and validating their financial and TA needs;
- Set up a financial projection tool that can be used for different funding scenarios;
- Mapping the legal means and instruments required to execute new activities.
Knowledge management:
- Document process of developing investment agenda for CleanStart (and by extension UNCDF), providing a clear rationale for choices made, recognizing UNCDF’s unique public role and neutrality;
- Produce a knowledge product that provides a clear narrative for the CleanStart investment agenda, to unlock private and public finance for energy access.
Travel:
- The schedule of travel will be negotiated with the consultant according to the requirements of each Programme country.
- A separate ToR with clear deliverables, budget and timelines will be prepared and agreed prior to each field mission within the terms of this ToR.
Monitoring and Progress Control:
- The consultant will work under the direct supervision of the CleanStart Programme Manager and Director of the Financial Inclusion Practice Area, UNCDF.
Competencies
Corporate Competencies:
- Promotes the vision, mission and strategic goals of UNCDF;
- Demonstrate integrity by modelling the UN's values and ethical standards;
- Displays cultural, gender, religion, race and age sensitivity and adaptability.
Functional Competencies:
- Understands how financial service providers and/or small to medium scale enterprises serving low-income markets operate;
- Understands investments needs of enterprises and the mix of debt/equity required at different growth stages—from incubation to scaling up to commercial viability;
- Strong quantitative and financial abilities, such as making financial projections and analyzing statistics and financial statements;
- Strong analytical writing skills; experienced in producing concise, executive level reports (PowerPoint) and presentations, training modules and materials;
- Good interpersonal skills and experience in working effectively in a multi-cultural environment, with sensitivity to diverse opinions;
- Ability to articulate strategic thinking in a bottom-up approach.
Required Skills and Experience
Education:
- Masters level qualifications in business, finance, law, marketing, economics, accounting, energy, engineering or related fields;
Experience:
- At least 10 years hands-on experience in working in the finance/investment industry—either in banking, fund management, insurance, underwriting, refinancing or financial consultancy business;
- Experience with business planning and financial projections is a must;
- Experience in managing or setting up an investment fund or investment vehicle is a must;
- Full familiarity with a range of debt and equity instruments;
- Work experience with energy access businesses is a plus.
Language:
- Fluency in English is required.
- Knowledge of French is desireable.
Candidate Evaluation Methodology:
- ?Screening: Applications will be screened and only candidates meeting the following minimum criteria will progress to the pool for shortlisting:
- Education: Masters level qualifications in business, finance, law, marketing, economics, accounting, energy, engineering or related fields;
- Experience: At least 10 years hands-on experience in working in the finance/investment industry—either in banking, fund management, insurance, underwriting, refinancing or financial consultancy business;
Shortlisting by Desk Review. UNCDF will conduct a desk review to produce a shortlist of candidates by evaluating the following criteria with the corresponding points (100 points)
- Education/Qualification (20 points);
- Experience (relevance, geographical coverage, etc) (70 points);
- Language (Fluency in English is required) (10 points).
- Interview. TUp to 3 candidates who score the highest in the desk review and also meet the minimum threshold (70 points) will be invited for a Skype interview.he shortlisted candidates will be invited for a skype interview and evaluated against the following criteria: Relevant experience; Topic/sector knowledge; Team work and management skills.
- Financial Proposals: The shortlisted candidates will be rated on both technical and financial submissions, providing a weight of 70% to the technical offer and 30% to the financial offer.
- Final Evaluation. The Final evaluation will combine the scores of desk review, interview and financial proposal with the following weights assigned to each:
- Desk Review (25%) + Interview (45%)
- Financial Proposal (30%)
Contract Award:
- Only one candidate obtaining highest score in the final evaluation will be offered to enter into a Long Term Agreement with UNCDF.
Application Procedures:
All applications must contain the following information in one word or PDF document (as the system only allows to upload maximum one document) combining the following:
- Cover letter with a summary statement of competencies in relation to the TOR please refer to the following link for a template: http://procurement-notices.undp.org/view_file.cfm?doc_id=29916
- Financial proposal: The financial proposal must indicate daily professional fee in USD (Duty station is New York and that daily fee should be all inclusive of this (no separate per diem for New York);
- Detailed Personal CV and/or UNDP Personal History Form (Form P-11): http://sas.undp.org/Documents/P11_Personal_history_form.doc
Remuneration:
- Consultancy fees will be paid upon satisfactory completion of each assignment/milestone submission of “back to office” reports, time sheet and expenses with relevant documentation.
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