Call for Expression of Interest No JAS-BE/2009/02 for the selection of JASMINE Technical Assistance beneficiaries (Non-bank microfinance institutions)

Introduction

On 13th November 2007, the European Commission adopted a Communication (COM (2007) 708) on a “European Initiative for development of microcredit in support of growth and employment”[1] (hereafter, “the Initiative”) whose objective is to promote the development of microcredit in the European Union. The Initiative comprises four different strands:

1. Improving the legal and institutional environment in the Member States;
2. Further changing the climate in favour of entrepreneurship;
3. Promoting the spread of best practices;
4. Providing additional capital for microcredit institutions.

The Initiative strives to reinforce the role played by microfinance institutions (MFIs) / microcredit providers in improving the provision of microcredit in Europe, an essential instrument for financial inclusion and employment. The Commission’s Communication also stresses that adequate technical support is necessary in helping these operators release their potential. In this context, in 2008 the European Commission and the European Investment Bank Group agreed to launch JASMINE ("Joint action to support microfinance institutions in Europe"), a joint initiative aimed at helping MFIs/ microcredit providers to improve the quality of their operations, to expand and to become self-sustainable through the provision of both funding and non-financial services to MFIs/microcredit providers. Applicants to the following Call for Expression of Interest, irrespective of their selection, remain eligible to request financing under the various programs managed by EIF.

The selection for Technical Assistance under JASMINE does not give any right to access to funding, but Technical Assistance services has been designed to facilitate future access to funding from existing and forthcoming EU programs.

The initiative consists of a pilot phase covering the years 2009, 2010 and 2011. In 2009, on the basis of the following Call for Expression of Interest, up to 15 European non-bank microcredit providers shall be selected to receive Technical Assistance support in 2010, in the form presented in Annex 2 of the present Call for Expression of Interest. In 2010, up to 15 European non-bank microcredit providers will be selected on the basis of a separate Call for Expression of Interest to receive Technical Assistance support in 2011. The purpose of the following Call for Expression of Interest is to select European non-bank microcredit providers which will benefit from Technical Assistance (TA) support in 2010.

Interested non-bank microfinance institutions should express their interest by completing and submitting an Expression of Interest, a template of which is attached hereto as Annex 1. A list of the documents to be provided for the selection process is provided in Annex 1, Appendix 4.

1.                Definitions and Interpretation

2. Underlying principle for the provision of Technical Assistance services to selected MFIs active in the EU

The provision of Technical Assistance in the framework of the JASMINE pilot Initiative is an essential component of the development of the microfinance sector in the European Union. The JASMINE pilot Initiative intends to develop the European microfinance market in order to prepare future initiatives and programs in this specific field, both through financial and non-financial support to European microcredit providers.

The non-bank microfinance institutions/microcredit providers selected in the framework of this Call for Expression for Interest JAS-BE/2009/02, and which eventually enter into a suitable agreement with EIF, are entitled to receive Technical Assistance through the JASMINE pilot Initiative.

3. Description of the services Applicant can receive from JASMINE

The selected MFIs are entitled to receive a set of Technical Assistance services free of charge. The Technical Assistance is designed to help European MFIs become aligned with international standards and facilitate in the mid term their increased access to funding.

This set of Technical Assistance services provided to the selected MFI, subject to contract, in the framework of JASMINE consists of the following:

1. Assessment of MFIs by independent specialised agencies and provision of an evaluation report;

3.  
   1. 3 days to 1 week visit to the selected MFI by an independent team headed by an analyst (Identification of the strengths and weaknesses of the MFI and areas of improvement)

b. Provision of an Evaluation report and presentation of the main findings

2. Rating of the MFI (at the option of the MFI);

3. Tailor-made training of MFI staff and management in line with the main findings of the Evaluation report, to be provided by European networks of microfinance practitioners.

a.     1 week training session to the staff and the management of the selected MFI

b.     A special attention will be paid to the following field: Good governance, Management Information Systems, Strategic planning and Risk management, including risks linked with external sources of funding

4. Expression of Interest

A template for the Expression of Interest is attached hereto as Annex 1.

The Expression of interest includes the Applicant’s identification (based on the form under Appendix 1 to the Expression of Interest), the project description, the supporting documents (listed under Appendix 4 to the Expression of Interest), the declaration of absence of conflict of interest (based on the form under Appendix 2 to the Expression of Interest) and the statement regarding situations of exclusion (based on the form under Appendix 3 to the Expression of Interest).

No later than 10 Business days before the Deadline, the Applicants may request clarifications regarding the Call for Expression of Interest or the nature of the Technical Assistance. Such requests must indicate the Call for Expression of Interest reference number and the name of the Applicant and shall be submitted in English via e-mail to:

The JASMINE Unit

European Investment Fund

JASMINE@eif.org

EIF will not contact any Applicant prior to the Selection, unless it considers it necessary to clarify issues of a mere technical nature. However, should EIF come across any errors, inaccuracies, omissions or any type of clerical defect in the text of the Call for Expression of Interest before the Deadline, EIF will correct the text and inform accordingly.

5. Languages

The Expressions of Interest, including the submitted documents, shall be in English.

6. Submission of Expression of Interest

The Expression of Interest shall be submitted on or before the Deadline both by (i) e-mail and (ii) registered mail or professional courier service. The Expressions of Interest sent by registered mail or professional courier service shall consist of a single closed package and shall contain the Expression of Interest, together with its attachments, in paper form.

The Deadline for the submission of Expressions of Interest is 11 December 2009.

The Deadline applies (i) in case of e-mails to the date of receipt by EIF and (ii) in case of registered mail or professional courier service to the date of dispatch indicated on the post office stamp or a dispatch receipt.

The Expressions of Interest shall indicate the reference number of the Call (No. JAS-BE/2009/02) and the name of the Applicant, and shall be sent to the following address:

Postal Address:

European Investment Fund

Attention: JASMINE Unit

96, Boulevard Konrad Adenauer

L-2968 Luxembourg

LUXEMBOURG

The outer envelope (package) shall indicate the following:

“Expression of Interest - Call No. JAS-BE/2009/02 - Not to be opened by the Reception - To be passed without opening to the JASMINE Unit”

E-mail Address

Attention: the JASMINE Unit

JASMINE@eif.org

Prior to the Deadline and in the same manner as specified above, the Applicants may change or amend their Expressions of Interest by clearly indicating the parts to be changed or amended.

Prior or after the Deadline and in the same manner as specified above, the Applicants may withdraw their Expressions of Interest.

After the Deadline, an acknowledgement of receipt will be sent to the relevant Applicants by EIF via e-mail. The acknowledgement of receipt is not to be considered confirmation of completeness of the Expression of Interest and the documents submitted therewith, nor any kind of assessment to this effect.

7. Selection process

The Expressions of Interest will be examined by the EIF using professional analysis and judgment, taking into account the Selection Criteria.

The EIF will reject those Expressions of Interest not complying with the Eligibility Criteria. MFIs whose application is rejected because of non-compliance with any of the elements reflected in the statement regarding situations of exclusion (Annex 1, Appendix 3) may not present themselves for consideration in subsequent Calls for Expression of Interest unless it is specifically evidenced that the reason for exclusion no longer exists.

Applicants not excluded according to the Eligibility Criteria will go through the EIF selection process based on the Award Criteria. The further selection based on Award Criteria follows the standard procedures and guidelines applied by EIF to its business.

Any and all selections for Technical Assistance will be at the sole discretion of the EIF. Applicants should by no means consider that simple submission of a complete application will give rise to any claims, or other rights, or legitimate expectations to be ultimately selected for Technical Assistance under this Call for Expression of Interest. Similarly, any negotiation of terms and conditions of Technical Assistance agreements with selected MFIs shall by no means entail any obligation for the EIF to enter into such Technical Assistance agreements with the relevant MFI. EIF can cancel the Call for Expression of Interest at any stage of the procedure.

The selection shall be deemed completed upon execution of a suitable contractual arrangement between EIF and any MFI, and, it is envisaged, the relevant Technical Assistance provider described under section 3 above. Such contract shall specify the details of the Technical Assistance support to be provided, as well as the rights and responsibilities of the parties involved.

MFIs not selected to receive Technical Assistance in the framework of JASMINE shall be informed accordingly. Upon request, rejected Applicants may request further information from EIF on the reasons for their non-selection.

ANNEXES

Annex 1.     Expression of Interest

Annex2.      JASMINE Technical Assistance: Description and Selection Criteria

ANNEX 1 to the Call for Expression of Interest No JAS-BE/2009/02

 

To:

European Investment Fund

Attention: JASMINE Team

96 Boulevard Konrad Adenauer

L-2968 Luxembourg

EXPRESSION OF INTEREST

 

Call for Expression of Interest No.:                            JAS-BE/2009/02

Deadline for the submission of the Expression of interest: 11 December 2009    

Expression of Interest for:                                        JASMINE Technical                                                                        Assistance

Applicant submitting the Expression of Interest:            _____________, _______

                                                                (company name,                                                                   registration number)

Dear Sir or Madam,

Herewith we are submitting our Expression of Interest on behalf of (Applicant) in response to the Call for Expression of Interest No JAS-BE/2009/02 in the framework of JASMINE pilot Initiative implemented through EIF and financed by the European Commission, Directorate General for Regional Policy. Capitalised expressions utilised herein shall have the meaning attributed to them in the above mentioned Call for Expression of Interest.

The undersigned duly authorised to represent the (Applicant), by signing this form certifies/certify and declare(s) that the information contained in this Expression of Interest and its Appendices is complete and correct in all its elements.

The undersigned certifies/certify that the (Applicant) is not in one of the situations which would exclude it from taking part in this Call for Expression of Interest listed out in Appendix 3 to this Expression of Interest. The undersigned shall, upon request, provide all evidence to that extent.

Yours sincerely,

Signature(s):                                         Stamp of the Applicant (if applicable):

Name and position in capitals:

Applicant’s name:

Place:                                                           Date (day/month/year):

Appendices

Appendix 1 Applicant Identification

Appendix 2 Declaration of Absence of Conflict of Interest

Appendix 3 Statement regarding Situations of Exclusion

Appendix 4 List of documents to be attached for evaluation

Appendix 1 to the Expression of Interest

 

APPLICANT IDENTIFICATION

 

1.1 Applicant identification

1.2 Contact person

Appendix 2 to the Expression of Interest

 

DECLARATION OF ABSENCE OF CONFLICT OF INTEREST

 

 

The undersigned declares that neither (i) the Applicant nor (ii) he/she/they personally as authorised representative(s) of the Applicant have a direct or indirect interest of such a nature and scale that may affect the technical assistance support received by the Applicant. The undersigned commits to declare any potential conflict of interest that may arise during the provision of the technical assistance support as referred to in the call for expression No JAS-BE/2009/02.

The undersigned is/are aware that a conflict of interest could arise in particular as a result of economic interests, political or national affinities, family or emotional ties, or any other relevant connection or shared interest.

The Applicant will inform EIF, without delay, of any situation constituting a conflict of interest or which could give rise to a conflict of interest.

Furthermore, the Applicant and the undersigned in his/her/their capacity as duly authorised representative(s) of the Applicant confirm to have read the EIF Anti-Fraud Policy and declare not to have made nor to make any offer of any type whatsoever from which an advantage can be derived under the Operational Agreement and not to have granted nor to grant, not to have sought nor to seek, not to have attempted nor to attempt to obtain, and not to have accepted nor to accept, any advantage, financial or in kind, to or from any party whatsoever, constituting an illegal practice or involving corruption, either directly or indirectly, as an incentive or reward relating to signing of the Operational Agreement.

Yours sincerely,

Signature:                                            Stamp of the Applicant (if applicable):

Name and position in capitals:

Applicant’s name:

Place:                                                      Date (day/month/year):

Appendix 3 to Expression of Interest

 

STATEMENT REGARDING SITUATIONS OF EXCLUSION

The undersigned certifies/certify that the (Applicant) is not in any of the situations which would exclude it from taking part in this Call for Expression of Interest and accordingly declare(s) that the (Applicant):

i)                    has never been the subject of a conviction by final judgment for one or more reasons listed below:

·        participation in a criminal organisation, as defined in Article 2 (1) of the Council Joint Action of 21 December 1998 adopted by the Council on the basis of Article K.3 of the Treaty on European Union, on making it a criminal offence to participate in a criminal organisation in the Member States of the European Union (98/733/JHA);

·        corruption, as defined in the Council Act of 26 May 1997 and in Article 3 (1) of the Council Joint Action 98/733/JHA;

·        fraud within the meaning of Article 1 of the Convention drawn up on the basis of Article K.3 of the Treaty on European Union, on the protection of the European Communities' financial interests;

·        money laundering as defined in the Directives 2005/60/EC[4] of 26 October 2005 and 2006/70/EC[5] of 1 August 2006, and Directive 2001/97/EC of 4 December 2001[6];

ii)                  has not performed any act which may be qualified as illegal activity in the meaning of the terms of the EIF Anti-Fraud Policy;

iii)                is not bankrupt or being wound up, where its affairs are not being administered by the court, where it has not entered into an arrangement with creditors, where it has not suspended business activities or is not in any analogous situation arising from a similar procedure under national laws and regulations;

iv)                 is not the subject of proceedings for a declaration for bankruptcy, for an order for compulsory winding up or administration by the court or of an arrangement with creditors or of any other similar proceedings under national laws and regulations;

v)                   no member of its senior management has been convicted as a consequence of a judgment which has the force of res iudicata, in accordance with the legal provisions of the country of any offence concerning its professional conduct;

vi)                 no member of its senior management has been guilty of grave professional misconduct;

vii)               has fulfilled obligations relating to the payment of social security contributions in accordance with the legal provisions of the country in which it is established;

viii)             has fulfilled obligations relating to the payment of taxes in accordance with the legal provisions of the country in which it is established and in the countries where it operates, as applicable;

ix)                 will respect the policy of gender equality and non-discrimination;

x)                   will respect the framework of sustainable development and the Community promotion of the goal of protecting and improving the environment as set out in Article 6 of the Treaty;

xi)                 is not found to have provided serious misrepresentation in supplying the information required in accordance with the Call for Expression of Interest or has supplied such information.

The Applicant and the undersigned in his/her/their capacity as duly authorised representative of the Applicant commit to provide all evidence to the above, upon request by the JHF or EIF.

Signature:                                            Stamp of the Applicant (if applicable):

Name and position in capitals:

Applicant’s name:

Place:                                                      Date (day/month/year):

Appendix 4 to the Expression of Interest

 

LIST OF DOCUMENTS TO BE ATTACHED FOR EVALUATION

              a) Identification (registration details) and short description of the Applicant

                 b) Statutes of the Applicant evidencing its non-bank status

                 c) Annual report for the last three calendar years, including all data requested for evaluation of the award criteria

                 d) Internal note on the development stage of the risk assessment methodology, portfolio management and governance structures

                 e) Expression of Interest duly signed

                 f) Applicant identification

                 g) Declaration on absence of conflict of interest as per template provided in Appendix 2, duly signed

                 h) Statement regarding situations of exclusion as per template provided in Appendix 3, duly signed

ANNEX 2 to the Call for Expression of Interest

No JAS-BE/2009/02

 

JASMINE Technical Assistance: Selection Criteria

IMPORTANT: EIF reserves its right to verify the accuracy of the information provided by the Applicant by means of due diligence, if required by the evaluation panel within EIF.