National Consultant to assess the financing opportunities for non-agricultural MSMEs, Travels within Luhansk and Donetsk oblasts (government-controlled area), south of Zaporizhzhia oblast, Ukraine (at least six business trips)

Background

The ongoing conflict in eastern Ukraine has had a direct and highly negative impact on economy, social cohesion, resilience, livelihoods, community security, and the rule of law. Recognizing the need to urgently address reconstruction, economic recovery and peacebuilding needs in areas affected both directly and indirectly by the conflict, in late 2014 the Government of Ukraine requested technical assistance and financial support from the international community to assess priority recovery needs. In late 2014, the United Nations (UN), the World Bank (WB) and the European Union (EU) conducted a Recovery and Peacebuilding Assessment, which was endorsed by the Cabinet of Ministers in mid-2015.

The United Nations Development Programme (UNDP) has been active and present in eastern Ukraine for the past decade, prior to the conflict, with a focus on community development, civil society development, and environmental protection. Work on addressing the specific conflict-related development challenges discussed above built on this earlier engagement, established partnerships, and started in 2015 through the United Nations Recovery and Peacebuilding Programme (UN RPP). The UN RPP is a multi-donor funded framework programme formulated and led by the UNDP in collaboration with the Government of Ukraine and in cooperation with a number of partnering UN agencies (UN Women, FAO, UNFPA).

The RPP was designed to respond to, and mitigate, the causes and effects of the conflict. It is based on findings of the Recovery and Peacebuilding Assessment (RPA) and is aligned to the State Target Programme for Recovery as well as to the two oblast development strategies up to 2020. It takes into account the opportunities that have arisen from the Minsk Protocol of September 2014 and the renewal of its cease-fire provisions (the latest cease-fire having been agreed in March 2018) and is also fully adjusted to the humanitarian-development nexus. It is an integral component of the UNDP Country Programme and is therefore fully aligned with the United Nations Partnership Framework (UNPF). It is closely interlinked with the Democratic Governance and Reform Programme, operating nationally and in all of Ukraine’s regions, and is consistent with the SDGs.

The Programme’s interventions are grouped under the following key Programme components, which reflect the region’s priority needs:

Component 1: Economic Recovery and Restoration of Critical Infrastructure

Component 2: Local Governance and Decentralization Reform

Component 3: Community Security and Social Cohesion.

The Programme, which operates on the basis of a pooled funding arrangement, follows a multi-sectoral programme-based approach and is implemented using an area-based methodology. It is a unifying interventions framework for 12 projects funded by 12 international partners and is worth over USD 80 million (2019-2022).

In October 2018, four UN agencies (UNDP, UN Women, FAO and the UNFPA) have countersigned a new joint project document, funded by the EU. The overall objective of the project is to restore effective governance, support economic recovery and promote reconciliation in the crisis-affected communities of Donetsk, Luhansk and Zaporizhzhia oblasts in Ukraine, thereby enhancing the credibility and legitimacy of local governments in the government-controlled areas of the regions. It will contribute to peace build and prevent further escalation of conflict in Ukraine through effective and accountable decentralization, gender-responsive recovery planning and equal access to services, as well as enhanced economic recovery and development.

This endeavor will be achieved through the pursuit of the following specific objectives:

1. Enhancing local capacity for gender-responsive decentralization and administrative reforms to improve governance, local development and the delivery of services.
2. Stimulating employment and economic growth by providing assistance to Micro, Small and Medium Enterprise (MSME) development through demand-driven business development services and professional skills training.
3. Enhancing social cohesion and reconciliation through promotion of civic initiatives.
4. Supporting sector reforms and structural adjustments in health, education and critical public infrastructure to mitigate direct impacts of the conflict and enhance the capacity of governmental authorities for national the coordination of actions to cope with emergencies arising from the conflict zone.
5. Supporting the implementation of the European Investment Bank’s Early Recovery Programme.

Under objective 2, the Programme aims to foster economic revitalization in eastern Ukraine and, specifically, stimulate employment and economic growth by providing assistance to Micro, Small and Medium Enterprises (MSMEs) development. The Programme supports demand-driven business development services, professional business skills training and strengthening institutional and educational infrastructure for the effective functioning of regional economy. Due to the conflict, bank lending, leasing and other credit releated infrastructure have been limited in the region. Thus, business owners have difficulties in accessing financing and thus in joining the market in the rest of Ukraine and beyond and in expanding their businesses. Consequently, new and innovative sources and mechanisms of financing must be identified to support MSMEs. Such sectors have already been identified in most areas of Luhansk and Donetsk (Government-Controlled Areas, hereinafter - GCAs) oblasts as well as in the areas of Donetsk and Zaporizhzhia oblasts along the Azov sea coastline, and now those identified value chains need financing strategies for further development.

Despite the fact that revitalization of the financial markets in the region has been among the main priorities for the Programme, the COVID-19 lockdown has impacted the socio-economic situation both on the local and national levels. The crisis especially affects MSMEs that have significantly lower financial reserves and resilience towards adverse economic conditions and external factors than large businesses. Thus, to further support the economic revitalization of MSMEs in the aforementioned oblasts, UN RPP is seeking a National Consultant to identify financing opportunities for non-agricultural MSMEs for further business development and expansion (hereinafter – the Consultant) in government-controlled areas of Luhansk, Donetsk and Zaporizhzhia oblasts (hereinafter - the targeted regions).

Duties and Responsibilities

The main objective of the assignment is to identify innovative sources and mechanisms to finance MSMEs’ development and expansion in the non-agricultural value chains (in the three sub-regions: Luhansk, Donetsk and Zaporizhzhia oblast). The Consultant is expected to prepare a detailed set of tailored recommendations concerning financing opportunities specific for the local MSMEs.

The non-agricultural value chains that fall under the assignment are listed below:

North of Donetsk and Lukhansk oblasts	South of Donetsk and Zaporizhzhia oblast
Ceramics	Industry and engineering services
Textiles and Clothing	Textiles and Clothing
Hospitality	Hospitality
Food Processing	Food Processing

The geographical scope of the assignment:

• Donetsk oblast - all rayons of GCA;
• Luhansk oblast - all rayons of GCA;
• Zaporizhzhia oblast.

DESCRIPTION OF RESPONSIBILITIES / SCOPE OF WORK

Under the direct supervision of Programme Coordinator, Economic Recovery and Restoration of Critical Infrastructure, the Consultant will be responsible for the implementation of the following tasks:

Initial stage (Output 1):

• Develop a detailed work plan and methodology to identify innovative sources and mechanisms to finance MSMEs’ development and expansion in each of the prioritized value chains in three targeted sub-regions. This proposed work plan and methodology must then be reviewed and accepted by  the direct supervisor. The influence of COVID-19 outbreak should be taken into consideration during developing the work plan and methodology;
• With referral to the Programme's documents, conduct research and identify financial needs, challlanges and constrains, as well as opportunities, for MSMEs in the targeted oblasts;
• Develop the Inception report on the data collected. The document should follow the next requirements: single spacing, Noto Sans, size 11, Ukrainian and English languages.

Assessment stage (Output 2):

• Analyze available financial opportunities  for MSMEs at the local and national level in each of the targeted value chains;
• E.g. explore the government support mechanisms and primary providers of financial services to MSMEs (micro-financing institutions, banks, equity funds  etc.) in the targeted regions and illustrate how the existing MSMEs can be linked with them for further cooperation and development;
• Explore new and innovative sources and mechanisms to finance MSMEs’ development;  
• Incl. assess international entrepreneurship and support programmes that can offer a range of opportunities, experience exchange and investments attraction to the business;
• Other relevant assessment thematis can be proposed by the Consultant;
• Based on the conducted assessment, prepare and submit the Interim report (single spacing, Noto Sans, size 11, Ukrainian and English languages, up to 30 pages).

Policy consolidation and Coaching stage (Output 3):

• Develop a series of recommendations for MSMEs from targeted value chains on how to examine the economic environment (market resources, competitors, partners, etc.) in the context of financial resources mobilization;
• Provide a series of recommendations on how to mitigate the potential risks and threats that can affect access to financing;
• Develop a set of guidelines on the innovative sources and mechanisms to finance MSMEs from each of the targeted value chains. The handbook should be developed in the Ukrainian language and contain overall information on the investment and fundraising opportunities for MSMEs in the targeted oblasts as well as on the sector-specific programmes in each of the prioritized value chains. The requirements to the handbook: up to 20 pages without annexes, single spacing, Noto Sans font, size 11, pdf format. The handbook should be developed in two versions: for the web use and for printing;
• Based on the conducted assessment and developed policy recommendations develop an agenda for the training sessions on the innovative sources and mechanisms to finance MSMEs’ development and expansion;
• Present the findings to the groups of MSMEs from each value chain (at least 5 half a day sessions). During the preparatory stage, the quarantine restrictions caused by the COVID-19 pandemic should be considered. In case of the quarantine limitations implications, the Consultant is required to establish online channels for communication with the MSMEs and present the recommendations in the forms of online webinars. All communication channels should be approved by UN RPP;
• Develop and submit the Final report that will include the agenda, statisctics on the participants, lessons learnt from the discussions, reference to the handbook developed, etc. Requirements to the document: single spacing, Noto Sans, size 11, Ukrainian and English languages, up to 50 pages.

Presentation of the results (Output 4):

1. Based on the Final report, develop an Executive Summary (at least 10 pages, Ukrainian and English languages) on the main findings of the assignment;
2. Prepare MS PowerPoint Presentation (at least 20 slides, Ukrainian and English languages, that presentation should include: background information, key points, description of the deliverables, lessons learnt, etc).
3. Conduct at least one half a day presentation session on results in one of the targeted regions (the location is to be determined), facilitate discussions, and present the developed recommendations. Costs of conference services related to the arrangement of presentations will be covered by UN RPP.
4. Incorporate all comments and recommendations received as a result of discussions, finalize and submit the Final report to UN RPP if required.

DELIVERABLES AND IMPLEMENTATION SCHEDULE

Deliverables	Deadline
A detailed work plan and methodology on the innovative sources and mechanisms to finance MSMEs’ development and expansion in each of the targeted sub-regions are designed and agreed with UN RPP. Inception report is developed and approved by UN RPP. The deliverable should be implemented in a line with the scope of work from Output 1.	Within 15 calendar days after the start of the assignment
Assessment of the opportunities existed at the local and national level for the MSEMs from each of the targeted value chains is conducted. Interim report is prepared and approved by UN RPP. The deliverable should be implemented in a line with the scope of work from Output 2.	Within 60 calendar days after the start of the assignment
The guideline on the innovative sources and mechanisms to finance MSMEs’ development and expansion from each of the targeted value chain is developed and approved by UN RPP. At least 5 training sessions on the innovative sources and mechanisms to finance MSMEs from the targeted value chains have been conducted. Final report is developed and approved by UN RPP. The deliverable should be implemented in a line with the scope of work from Output 3.	Within 80 calendar days after the start of the assignment
Executive Summary and PowerPoint Presentation have been developed and presented in the determined by UN RPP location. Final report has been adjusted in case of UN RPP’s request. The deliverable should be implemented in a line with the scope of work from Output 4.	Within 90 calendar days after the start of assignment

Proposed Payment Schedule

UN RPP will pay the negotated amount in 3 tranches as per delivery of the outputs outlined above.  

The payments will be paid upon the full completion and acceptance of contractual obligations whereupon the Programme Coordinator signs the certification of acceptance.

30% of total contract amount upon completion of Deliverable 1 and 2

40 % of total contract amount upon completion of Deliverable 3

30% of total contract amount upon completion of Deliverable 4

Monitoring / Reporting Requirements

The Consultant will work under the overall guidance Programme Coordinator, Economic Recovery and Restoration of Critical Infrastructure of the Recovery and Peacebuilding Programme. The Consultant will directly report to the Programme Coordinator on a monthly basis through in-person meetings/by phone or Skype, or sending electronic materials.

The Consultant should adhere to the system of monitoring, evaluation and quality control implemented by the UNDP and provide the necessary information, reports and statistics according to the preset schedule or as soon as possible (within a reasonable time).

Weekly operational email reports on the current stage of implementation should be submitted to UN RPP. The issues faced during the implementation process are also required to be raised.

UN RPP has a right to request brief reports on the progress of the assignment during any stage of implementation.

Documents to be included when submitting the proposals

Applicants shall submit the following documents:

	Professional CV, including information about past experience in similar projects / assignments;
	Financial proposal (according to defined deliverables);
	References justifying experience in conducting training sessions and preparation of knowledge materials (references to at least 2 open source documents);
	Reference letters from previous employers and/or customers (at least 2 letters).

Financial proposal

Lump sum contract

The financial proposal shall specify a total lump sum amount, and payment terms around specific and measurable (qualitative and quantitative) deliverables (i.e. whether payments fall in installments or upon completion of the entire contract). Payments are based upon delivery of the services specified in the TOR. In order to assist the requesting unit in the comparison of financial proposals, the financial proposal will include a breakdown of this lump sum amount.

The Consultant will be responsible for all personal administrative expenses associated with undertaking this assignment including office accommodation, printing, stationary, telephone and electronic communications, and report copies incurred in this assignment.

Travel costs

All envisaged travel costs must be included in the financial proposal. This includes all travel to join duty station/repatriation travel. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the IC wish to travel on a higher class he/she should do so using their own resources.

In the case of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and Individual Consultant, prior to travel and will be reimbursed. In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the Consultant wish to travel on a higher class he/she should do so using their own resources.

Evaluation criteria

UNDP will use a two-stage procedure for evaluating applications with the evaluation of the technical proposal being completed prior to any price proposals are compared. The technical part will be evaluated on the basis of its relevance to the Terms of Reference.

The breakdown scores for qualifications and experience are as follows:

• Educational background in Business Administration, Management, Economics or related fields – 10 points max [10 pts – PhD degree or higher; 5 pts – Master’s degree or equivalent];

• Professional experience in the sector of MSME development, investments, fundraising, strategy design and optimization of private sector entities, economic analysis - 15 points max [15 pts – 6 or more years; 10 pts – 5 years];
• Relevant professional experience in conducting training sessions or consulting for MSMEs on investments and/or fundraising - 20 points max [20 pts – 10 and more training/consultancy  sessions delivered; 15 pts – 3-9 training/consultancy sessions delivered];
• Professional experience in producing knowledge materials in the business, economy, investments, fundraising or other relevant areas – 20 points max [20 pts – 3 and more references on knowledge materials in open sources; 15 pts – 2 references on knowledge materials in open sources];
• Language proficiency – 5 points max [5 pts – fluency in Ukrainian, Russian and English; 4 pts – fluency in Ukrainian and Russian, working level of English].

Evaluation method:

 Cumulative analysis

Contract award shall be made to the incumbent whose offer has been evaluated and determined as:

a) responsive/compliant/acceptable, and

b) having received the cumulative highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.

* Technical Criteria weight: 70%

* Financial Criteria weight: 30%

Only candidates obtaining a minimum 70% from the maximum available technical score (49 points) would be considered for the Financial Evaluation.

The maximum number of points assigned to the financial proposal is allocated to the lowest price proposal and will equal to 30. All other price proposals will be evaluated and assigned points, as per below formula:

30 points [max points available for financial part] x [lowest of all evaluated offered prices among responsive offers] / [evaluated price].

The proposal obtaining the overall cumulatively highest score after adding the score of the technical proposal and the financial proposal will be considered as the most compliant offer and will be awarded a contract. 

Competencies

• Excellent communication and organization skills;
• Strong analytical skills;
• Excellent computer skills (including, MS Word);
• Ability to set priorities, meet specific objectives, use political judgment and knowledge;
• Good interpersonal skills, diligence, open mindedness, and dedication;
• Excellent team and networking skills;
• Demonstrates integrity by modeling the UN’s values and ethical standards;
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
• Treats all people fairly without favoritism;
• Fulfills all obligations to gender sensitivity and zero tolerance for sexual harassment.

Required Skills and Experience

• Education: at least Master’s or equivalent degree in Business Administration, Management, Economics or related fields;
• Experience: at least 5 years of professional experience in the sector of MSME development, investments, fundraising, strategy design and optimization of private sector entities, economic analysis, etc.;
• Experience in conducting training sessions or consulting for MSMEs on investments and/or fundraising;
• Experience in producing knowledge materials in the business, economy, investments, fundraising or other relevant areas (at least 2 knowledge materials developed);
• Language proficiency: excellent knowledge of Ukrainian and Russian, good level of English.