USAID Kosovo Investment Promotion and Access to Finance Activity
Scope of Work
Enhancing a Green Loan Product and Support on Client Acquisition Strategy
Activity background
DT Global is a fast-growing international development company that focuses on improving the capability, capacity, and effectiveness of development programming in complex global environments. DT Global has been awarded the 5-year USAID-funded Investment Promotion and Access to Finance Activity in Kosovo (hereinafter “Activity”). The Activity aims to strengthen the private sector’s capacity to deliver sustainable economic growth through two mutually reenforcing objectives: 1) attracting and promoting investment; and 2) increasing access and utilization of diversified finance. By achieving these two objectives, the Activity aims to strengthen the resiliency of the private sector, create productive jobs, increase exports, and enable firms to adopt new technologies and business practices.
Assignment background
Despite Kosovo commercials banks introducing green loans over time, the share of such loans to banks’ overall lending portfolios is still relatively limited. Green loan instruments have the potential to attract a growing segment of customers who are more likely to prioritize sustainability in their financial decisions. This enables banks to tap into a market that is increasingly conscious of environmental and social challenges. Offering green loan instruments encourages financial innovation within a bank and provides an opportunity to develop new financial products that align with sustainability principles, allowing banks to differentiate themselves in the market.
To that effect, the Activity is partnering with a local bank to develop a green lending facility with enhanced features that will support financing environmentally sustainable projects or initiatives, thus expanding the availability of green financing products in Kosovo’s financial market. The anticipated green loan instrument will target businesses interested in the financing of renewable energy projects, energy efficiency improvements, or sustainable infrastructure and targeting sectors on renewable energy, green buildings, sustainable agriculture and/or other areas contributing to environmental sustainability. The support from the Activity in introducing a new financial product is expected to enable the partner bank two-folds: (i) leveraging the bank's database to identify acquisition targets that have a focus on green or environmentally sustainable initiatives; and (ii) tap into credit lines from various financial sources including from international financial institutions, enabling an expansion of financing of green projects.
The Activity’s involvement is part of its broader effort to partner with financial institutions in an effort to expand diversified finance products. In this specific case, the Activity will support a partner bank with technical assistance to enhance a green loan instrument, develop policies and procedures in line with regulatory guidance and the bank’s business strategy, as well as its internal processes for issuing this type of financial instrument.
Against this backdrop, the Activity is seeking to engage a Short-Term Technical Assistance (STTA) consultant who will work with the partner bank to enhance the green loan instrument and comprehensive policies and procedures for the effective issuance of green loans, including implementing an acquisition strategy with new clients. The expert will be responsible for analyzing the existing business plan of the partner bank by considering the economic viability of green loan instrument, designing/enhancing the green loan instrument, and developing internal policies and procedures and training programs for internal staff to ensure a clear understanding of the green loan instrument, policies, and procedures.
Name of Position | Short-Term Expert to Enhance a Green Loan Instrument and Develop Client Acquisition Strategy (hereinafter “Expert”) | |
General Responsibilities | The general responsibilities of the Expert include:
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Specific Tasks and Responsibilities | The specific tasks of the Expert include:
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Key Deliverables | Deliverable | Percentage of payment |
Initial analysis report outlining an overview of the green finance principles, sustainable banking practices, and existing green loan instruments and policies, as well as an assessment of the bank’s sustainability goals, and economic viability of the green loan instrument (as outlined under tasks 1 to 5 in the specific tasks and responsibilities section). | 20% | |
Initial analysis of potential acquisition targets that have a focus on green or environmentally sustainable initiatives. This could involve due diligence on potential acquisition targets (relevant analysis of potential clients to be supported for green lending that may include energy efficiency, waste management, carbon footprint, use of renewable resources) (Task 2). | 15% | |
Draft a green loan instrument package that includes a comprehensive set of documents, policies, procedures, and tools designed to facilitate the implementation of a green loan program within the partner bank. This package ensures that the bank has all the necessary tools and guidelines to initiate, implement, and manage its green loan program successfully. This provides a structured framework for offering loans specifically designated for environmentally beneficial projects. It promotes environmental sustainability while adhering to industry best practices and regulatory requirements (this milestone is linked to tasks 6 to 9 in the specific tasks and responsibilities section). | 15% | |
Presentation of the draft green loan instrument package to the internal decision-making personnel of the bank. | 10% | |
Provide training program to increase capacities of bank staff on the details of the green loan instrument, policies, and procedures (as outlined under task 11 in the specific tasks and responsibilities section). | 20% | |
Final green loan instrument submitted to partner bank and the Activity, which reflects feedback from bank internal stakeholders and the Activity team. This deliverable will be finalized upon completion of the tasks from 1-11. | 20% | |
Minimum Education Requirements | University degree in a relevant field. | |
Minimum Professional Experience |
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Period of Performance | March 2024 – May 2024 | |
Contracting Mechanism | DT Global anticipates issuing a fixed-price contract. The selected consultant will be remunerated based on the submission and approval of the key deliverables outlined above. | |
Supervisor | Diversified Finance Lead and Legal and Regulatory Reform Lead. | |
Supervisory Role | None. | |
Travel Requirements | Travel is not anticipated as DT Global expects to engage a local consultant to complete this scope of work. | |
Selection Criteria | Consultants’ applications will be evaluated against the following criteria:
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Application Instructions: DT Global is accepting applications from individual consultants to complete the above scope of work. Individuals will be engaged through a fixed price consulting agreement. To apply please submit a CV and proposed cost proposal in English to [email protected] The cost proposal must include all anticipated costs, including level of effort (LOE), and materials required to complete the above scope of work. Applicants are encouraged to use the budget template provided in Annex A. Please include the position you are applying for in the email subject line. Application deadline is March 13, 2024. We thank all applicants for their interest. Only short-listed candidates will be contacted. DT Global, LLC is an Equal Opportunity Employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, veteran status, gender identity, or national origin. DT Global, LLC prohibits discriminating against employees and job applicants who inquire about, discuss, or disclose the compensation of the employee or applicant or another employee or applicant. |