Sakchyam is in the process of signing an MOU with Deposit and Credit Guarantee Fund to explore a delivery mechanism on scaling up MSME credit guarantee programme through a dedicated entity. Deposit and Credit Guarantee Fund currently For this purpose, Sakchyam is planning to carry out a feasibility study to determine viability and long term sustainability of the programme. The study will build on the recently concluded two studies, Legal Review on Different Models of Credit Guarantee Scheme and Demand Study on MSME Financing. Besides legal consideration and market demand, the study should review capital structure and funding alternatives, additionality, potential risks and mitigation, ownership and governance structure, staffing and development, financial feasibility with scenario analysis, among others. Subject to positive outcome of the study, a ‘Business Planning Report’ will be commissioned. The MOU also envisions supporting DCGF in the implementation of approved Business Plan. Sakchyam is looking for service of expert/ team of experts capable to completing the three strands, feasibility study, business planning and implementation of the business plan. Tentative LOEs available are as follows:
1. Feasibility Study- 15 days
2. Business Planning- 30 days. Primary tasks involved:
I. Review the DCGF’s guarantee agreements and templates for the issuance of loan guarantees;
II. Develop/ Redesign procedural manuals for the operations and of the DCGF, including, but not limited to:
a. Loan Guarantee Policy Manual
b. Human Resources Manual
c. Compliance Manual
III. Review/Develop any Treasury Management Policy and Procedures;
IV. Develop the detailed position descriptions, scopes of work, staffing profiles and all associated application forms and templates;
V. Develop all procurement procedures, templates and required forms.
VI. Develop risk (credit, market, operational, reputation, regulatory and compliance) policies, guidelines and approval processes;
VII. Establish risk measurement methodologies (including risk rating) guidelines;
VIII. Assess and monitor counterparty institution, market sector and operational risk;
IX. Establish, monitor, and manage partner bank portfolio limits;
X. Review all credit guarantee monitoring policies, practices and procedures;
XI. Design and implement a single chart of accounts and financial reporting templates for the DCGF;
XII. Establish and implement internal control mechanisms which provide assurance in terms of reliability of financial reporting, compliance with laws and regulations, and effectiveness and efficiency of operations;
XIII. Help develop the technical specifications and user requirements for the MIS system for getting data from the banks and for reporting to the Central Bank and for producing reports; and
XIV. Ensure effective implementation of dashboards and automated/ ad hoc reports, and manage the performance management content.
XV. Review/Develop Staff Training Manual
3. Support during Implementation of Business Plan- 70 days - Actual days to be decided after agreeing scope of support with DCGF. Primary tasks include:
I. Completion of the detailed financial model’ incorporating Income Statement, Balance Sheet and monthly Cash Flow Statement to chart the DCGF’s plan to sustainability;
II. Refinement of the guarantee portfolio product and pricing policy to finalize the financial model;
III. Define the payout procedure/process; and
IV. Define portfolio re-capitalization scenarios and options.
V. Development and implementation of internal/ external awareness/ marketing campaigns
VI. Provide training to staff for effective implementation
Tentative start date of the assignment is third week of April 2019.
The Louis Berger Group, Inc. is an internationally recognized consulting firm that provides engineering, architecture, program and construction management, environmental planning and science, and economic development services. We are a devoted and trusted partner to federal, state, and local government agencies; multilateral institutions; and commercial industry. To this diverse client base we bring strategic vision and an entrepreneurial spirit, developing innovative solutions to some of the world’s most challenging problems. Integrated Development (ID), a division within Louis Berger, offers a multi-disciplinary approach to international development.
