Rwanda - Design and Development of the Bridge Lending Window and Placement of Insurance... Tender

Procurement Summary

Country : Rwanda

Summary : Rwanda - Design and Development of the Bridge Lending Window and Placement of Insurance Backstop

Deadline : 22 Jan 2025

Other Information

Notice Type : Tender

TOT Ref.No.: 112943789

Document Ref. No. : 0002011977

Competition : ICB

Financier : World Bank (WB)

Purchaser Ownership : Public

Tender Value : Refer Document

Purchaser's Detail

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Tender Details

The World Bank is working with the Rwanda Business Development Fund (BDF) to develop and launch new risk-sharing mechanisms to enhance access to credit to Micro, Small and Medium Enterprises (MSMEs) and mitigate climate related risks. To achieve this the project will support the development of (i) a contingent bridge lending window (BLW) providingemergency loans to support MSMEs affected by climatic shocks, and (ii) an insurancebackstop mechanism for the BLW using market-based risk transfer instruments.The objectives of this assignment are twofold: i) to assistBDF in finalizing and implementing the pilot phase of the BLW and establishing it within BDF and ii) to design and place an insuranceproduct that will function as a protective backstop for the BLW, in a manner suchthat the payout is used to secure the capital allocated to the BLW and toprovide surge capital in the event of a severe event.The bridge loan product offered under the BLW will provideshort-term lending to eligible and climatic shock affected MSMEs, coveringtheir credit servicing costs for a limited time. The BLW will beactivated during pre-defined floods/excess rain, droughts/lack of rains andlandslides events that elevate the risk of non-performing loans. With BLWdesigned to cover frequent and lower-severity events, the window is expected tobe activated on average every two to five years. Initially the target marketwill be loans guaranteed by the Business Development Fund (BDF). Participatingfinancial institutions (PFIs) receive concessional liquidity for reschedulingeligible MSME loans and the capital of the BDF guarantee is not called upon. PFIswill facilitate BLW loans to eligible businesses with an existing loan. From asystemic perspective, BLW will de-risk shock exposed MSMEs, facilitatinggreater overall lending. Theinsurance backstop's objective is to provide surge capital to the BLW in theevent of severe shocks. The insurancebackstop will provide rapid payouts that will augment the BLW's cap...

Documents

 Tender Notice

Rwanda_ToR_BLW_ConsultancyFirm_20240131_Clean_for-publishing.docx