United Nations Capital Development Fund

REQUEST FOR APPLICATION FOR

Engagement of ‘Booster Teams’ for accelerated inclusive access to finance for MSMEs,
Farmers and underserved communities in Nepal in COVID-19 context.

SUMMARY

As per a coordinated effort from the United Nations to have a response towards the COVID-
19 pandemic, UNCDF is supporting LDCs and other countries in need through its core
mandate to build stable and resilient local economies and by leveraging a range of technical
expertise and investment instruments to reduce and limit economic and social hardship for
poor communities. For more information about UNCDF’s action towards COVID-19 click
here.

Based on UNCDF’s commitment in Nepal to developing the DFS ecosystem and combating
challenges posed by COVID-19, UNCDF is looking to support its partners in scaling-up
inclusive last-mile solutions and financial instruments targeting the rural and underserved
communities by setting-up Booster Teams to ensure that full potential of UNCDF’s
interventions are realized.

At the field implementation level, the Booster Team shall comprise of field-based
representatives who engage with DFS stakeholders in selected rural areas, including
agents, merchants, customers/farmers and agricultural/multipurpose/rural finance
cooperatives. The Booster Team will be tasked with recruitment of cooperatives, agents and
merchant, along with on-ground support towards handholding and monitoring, digital literacy
education and exchange of learning. Working closely with UNCDF’s partners, the booster
team will also work with the stakeholders and ecosystem players to drive DFS adoption and
motivating them towards regular usage.

In order to setup DFS Booster Team, UNCDF is looking forward to collaborating with a firm
or consortium in Nepal. Selected Firm or Consortium will be tasked with the following:
1. On-boarding booster team based on selection criteria set by UNCDF and its partners;
2. Managing and Supporting booster team during the project;
3. Providing a comprehensive package of training and support to booster team that
empowers them to provide sufficient awareness and education campaigns to create a
conducive environment and enable the last mile populations to adopt DFS;
4. Providing quarterly qualitative and quantitative reports regarding learning and KPIs of the
Project;
5. Transferring knowledge gained from forming the booster team and its management for
expansion;

1
Selected applicants will be signing a Performance-Based Agreement (PBA) with UNCDF.

Applicants are invited to request the PBA sample at [email protected]

Applications about this RFA should be submitted via email at [email protected] no later the
25 th of June 2020 23:59 pm EAT

2
 1. INTRODUCTION

UNCDF is the UN’s capital investment agency for the 47 world’s least developed countries. It
creates new opportunities for poor people and their communities by increasing access to
microfinance and investment capital. UNCDF focuses on Africa and the poorest countries of Asia
and the Pacific, with a special commitment to countries emerging from conflict or crisis. It
provides seed capital – grants and loans – and technical support to help microfinance institutions
reach more poor households and small businesses, and local governments finance the capital
investments – water systems, feeder roads, schools, irrigation schemes – that will improve poor
peoples’ lives.

Recently, UNCDF has formulated its strategy ‘Leaving no one behind in the digital era’ based on
over a decade of experience in digital finance in Africa, Asia and the Pacific. UNCDF recognizes
that reaching the full potential of digital financial inclusion in support of the Sustainable
Development Goals aligns with the vision of promoting digital economies that leave no one
behind. The vision of UNCDF is to empower millions of people by 2024 to use services daily that
leverage innovation and technology and contribute to the Sustainable Development Goals.
UNCDF will apply a market development approach and continuously seek to address underlying
market dysfunction. For further detail on UNCDF strategy, refer to;

https://www.uncdf.org/article/4931/global-strategy-leaving-no-one-behind-in-the-digital-era

COVID-19 CONTEXT

As per a coordinated effort from the United Nations to have a response towards the COVID-19
pandemic, UNCDF is supporting LDCs and other countries in need through its core mandate to
build stable and resilient local economies and by leveraging a range of technical expertise and
investment instruments to reduce and limit economic and social hardship for poor communities.
For more information about UNCDF’s action towards COVID-19 click here.

UNCDF’S DIGITAL INTERVENTIONS IN NEPAL

UNCDF launched its Digital Finance interventions in Nepal in 2013 and focused on creating an
inclusive environment for inception and scale up of digital financial services. UNCDF has been
supporting the digital financial service providers, banks and other stakeholders in the country to
develop the eco-system.

In 2017, Nepal Rastra Bank issued the Payment Service Provider (PSP) license to the first set
of non-bank companies. This led to a growing number of registered customers using mobile
wallets for a range of payment services. UNCDF worked with its partners IME Digital and Prabhu
Pay to implement and scale last mile adoption of digital financial services. Considering Nepal is
an agro based economy with more than 60% of population engaged in agriculture, UNCDF with
its partners Prabhu Management, SunFarmer and Swift/IME Digital developed use cases around
dairy value chain digitization, Pay-as-you-go for solar irrigation pumps, farm operations
digitization and digital credit market place. These pilots provided in-depth learning on linking
digital with agriculture to drive adoption of digital services at the last mile. In 2018, Nepal Rasta
Bank launched the Nepal Financial Inclusion Portal with technical support from UNCDF. NFIP is
a data reporting and management tool that allows NRB to map level of financial inclusion in the
country.

3
UNCDF’s support in introducing innovative models to bring process efficiencies and access to
finance in the sector have aided in driving adoption of digital financial services by smallholder
farmers. In just the agriculture sector, more than 150,000 smallholder farmers now have access
to digital wallets, whereas the combined impact of UNCDF’s interventions in Nepal have resulted
in the registration of 700,000 digital wallet customers nationwide, of which approximately 30%
are women customers.

2. SCOPE OF WORK

2.1 Areas of intervention

For this request for applications (RFA), UNCDF invites applications from registered entities in
Nepal that can offer innovative and scalable last-mile solutions and financial instruments
targeting the rural and underserved communities by setting-up Booster Teams to ensure that full
potential of UNCDF’s interventions are realized.

At the field implementation level, the Booster Team shall comprise of field-based representatives
who engage with DFS stakeholders in selected rural areas, including agents, merchants,
customers/farmers and agricultural/multipurpose/rural finance cooperatives. The Booster Team
will be tasked with recruitment of cooperatives, agents and merchant, along with on-ground
support towards handholding and monitoring, digital literacy education and exchange of learning.
Working closely with UNCDF’s partners, the booster team will also work with the stakeholders
and ecosystem players to drive DFS adoption and motivating them towards regular usage.

The Booster Team members will be selected from within the targeted communities. Their roles
will encompass:

• Support selection, onboarding and digitization of agricultural/multipurpose/rural finance

cooperatives involved in the dairy-value chain
• Supporting agent network recruitment and management
• Supporting merchant network recruitment and management
• Supporting customer registration (primarily targeting Dairy Farmer) for Digital financial
services
• Supporting adoption and digital/mobile literacy of all stakeholders
• Support in data migration and entry of existing cooperative records

In order to setup DFS Booster Team, UNCDF is looking forward to collaborating with a firm or
consortium in Nepal. Selected Firm or Consortium will be tasked with the following:

• On-boarding booster team based on selection criteria set by UNCDF and its partners
• Managing and Supporting booster team during the project
• Providing a comprehensive package of training and support to booster team that
empowers them to provide sufficient awareness and education campaigns to create a
conducive environment and enable the last mile populations to adopt DFS.
• Providing quarterly qualitative and quantitative reports regarding learning and KPIs of the
Project
• Transferring knowledge gained from forming the booster team and its management for
expansion

4
2.2 How UNCDF works with partners

UNCDF takes a tailored approach to engagement with partners, working with each
throughout to identify business and customer needs, and helping to design, pilot and scale
up the solution along the way. Some examples of the ways in which UNCDF works with
partners include:

• Product Research: Sharing market research and knowledge to deepen partners’

understanding of customers’ behaviors, needs, constraints and aspirations. This also
includes providing transaction data analysis and training to the business teams.
• Product design: Providing human-centered design expertise to better understand the
customer journey - physical and financial – for better product design and use-case
development tailored to the needs of low-income customers and their families. The
efforts may also involve analyzing the transaction data from a customer lens.
• Provisioning: Providing technical assistance to help design, pilot, deploy, and
scale up solutions for impact. Technical assistance is provided by digital finance
experts who are experienced in product design, business model development and
go-to-market strategies in some of the most challenging markets in Africa and
Asia.
• Partnerships: Facilitating strategic partnerships with stakeholders – including cross-
border payment hubs, mobile network operators, financial institutions, and non-bank
financial institutions – to enable partners to reach last-mile customers, and to grow
sustainably. UNCDF is uniquely positioned to be a neutral broker of partnerships and
has a record of building strong relationships with private and public organizations
across Africa, Asia, and Pacific.
• Policy and Advocacy: Convening efforts to support an enabling environment and
build policy and advocacy capacity for human-centered products and services to
be piloted and potentially scaled.

2.3 Expected results

Expected Results from Selected Firm or Consortium:

1. Numbers of Booster Team members 12, or as proposed by
applicant
2. Numbers of Dairy Cooperatives onboarded 15
including training and data migration
3. Numbers of Dairy Farmer onboarded to DFS 15,000
4. Training provided to Dairy Farmers 15,000
5. Number of active Dairy Farmer users of DFS 13,000
6. Number of agents onboarded 50
7. Number of agents trained 50
8. Number of agents active 30
9. Number of Merchants onboarded 150
10. Number of Merchants trained 150
11. Number of Merchants active 100

These are tentative targets that will be finalized through consultations between all project stakeholders.
Potential applicants may structure their proposed implementation models and governance structures
based on these targets that are indicative of the impact sought through this project.

5
 Deliverables would be derived from key project milestones to be agreed mutually between
UNCDF and the selected applicant in accordance to the identified milestones, outcomes
and targets of the KPIs, during the due-diligence and negotiation phase.

3. ELIGIBILITY FOR APPLICATION AND EVALUATION CRITERIA

Only applications that meet the eligibility requirements and minimum criteria for the
submission will be scored.

3.1 Eligibility requirements

Entity registration

• The applicant / lead applicant must be a registered entity in Nepal;

Consortiums

• Applicants may apply only once under this RFA, whether independently or in a
consortium;
• Joint applications between market players in the country are encouraged if the
solution proposed will expand delivery networks and promote rural and/or other last-
mile access to digital finance;
• Applications from consortiums of organizations must show that the
partnership was established prior to the submission to this call for
applications;
• The lead applicant must be registered entity with at least one year of operations,
and must have statutory accounts and audited financial statements for at least one
operating year;

Exclusionary criteria:

• Applicants shall not have been the subject of bankruptcy, liquidation, judicial
settlement, safeguarding, cessation of activity or any other similar situation resulting
from a similar procedure;
• Applicants and any of their staff or member of their board of directors shall not be
included in the United Nations financial sanctions lists, particularly in the fight
against the financing of terrorism and against attacks on international peace and
security 1; and
• Applicants must not be involved in any of the following activities 2;
• Manufacture, sale or distribution of controversial weapons or their components,
including cluster bombs, anti-personnel mines, biological or chemical weapons or

1 See: https://www.un.org/securitycouncil/sanctions/information
2 See UNDP Policy on Due Diligence and Partnerships with the Private Sector (2013):
https://popp.undp.org/_layouts/15/WopiFrame.aspx?sourcedoc=/UNDP_POPP_DOCUMENT_LIBRARY/Public/BE
RA_Partnerships_UNDP%20private%20sector%20due%20diligence%20policy%202013_FINAL.
pdf&action=default

6
 nuclear weapons;
• Manufacture, sale or distribution of armaments and/or weapons or their
components, including military supplies and equipment;
• Replica weapons marketed to children;
• Manufacture, sale or distribution of tobacco or tobacco products;
• Involvement in the manufacture, sale and distribution of pornography;
• Manufacture, sale or distribution of substances subject to international bans or
phase-outs, and wildlife or products regulated under the CITES;
• Gambling including casinos, betting etc. (excluding lotteries with charitable
objectives);
• Violation of human rights or complicity in human rights violations;
• Use or toleration of forced or compulsory labor;
• Use or toleration of child labor;
• Applicants shall have fulfilled all the obligations relating to the payment of social
security contributions or obligations relating to the payment of taxes in accordance
with legal provisions in force in the country of incorporation;

UNCDF will conduct due diligence on selected applicants. Applicants must have
documents ready for confirmation that they meet the eligibility criteria including certificate
of compliance with the tax authorities and any other documentary evidence that might
be requested by UNCDF besides the application form.

3.2 Evaluation criteria

The Evaluation Committee will score the applications according to the below
evaluation criteria.

Only applications that score at least 70 out of 100 will be considered successful and
move to the due-diligence stage.

Expertise of the Firm/Ability to Implement Points

obtainable
Current Applicant already has its own presence, or through 15
Partnership partnership, in the perspective geographical scope or
base demonstrates ability to quickly penetrate the market
directly or through partnerships
Current Current resources (e.g. HR, financial, infrastructure, 15
resources technology, brand recognition, geographical footprint)
demonstrates ability to implement the project

Maximum score 30

7
 Understanding of the RFA and proposed approach Points
obtainable
Organizational Applicant presents a clear implementation methodology, 15
capacity, planning and team structure. The proposed business
commitment, & model demonstrates efficacy for achieving project goals
Implementation and empowering underserved segments that are
readiness sustainable.
Customer 15
Demonstrates in-depth understanding of the stakeholders
knowledge &
targeted by the booster team.
Impact
The project's contribution to achieving at least one of the
Sustainable Development Goals
Degree of Level of innovation in the proposed approach; level of 15
innovation and additional value brought to the project
additionality
Scalability and Business model has potential to scale and become 15
financial economically viable and scalable over time.
viability
Learning Partner Willingness to share learnings of project and 10
Sharing transfer knowledge to UNCDF and other UNCDF Partners

Maximum score 70

Financial Proposal will be evaluated on basis of 100 Points system by using criteria as
follows.

• Only the financial offers of the applicant scoring at least 70% of the technical
proposal will be considered;
• To be computed as a ratio of the Proposal’s offer to the lowest price among the
proposals received by UNCDF;

4. AGREEMENT PARAMETERS

Applicants shall give evidence that their solutions are aligned to the following parameters.

4.1 Applicants

Eligible candidates can apply alone or as lead applicant in a consortium of firms, as long as
they comply with the eligibility requirements set forth in section 3.1. In case of a consortium
of entities applying to the RFA, the lead applicant shall comply with the eligibility
requirements.

8
 The lead applicant will be responsible of:

i. Submitting the application form on behalf of the consortium;

ii. Ensuring that each partner is fully aware of the composition of the partnership and of
the contents of the Application Form;
iii. Signing the Performance-based Agreement with UNCDF 3;
iv. Fulfilling all obligations set out in the Performance-based Agreement;
v. Ensuring the allocation and the fulfilment of the funds amongst the partner in the
consortium in compliance with the Performance-based Agreement;
vi. Ensuring the allocation and the fulfilment of the tasks amongst the partner in the
consortium in compliance with the Performance-based Agreement.

4.2 Target segment

The target segment of this RFA is dairy farmers and cooperatives.

4.3 Geographical scope

The geographical scope of this RFA is rural areas in Nepal.

4.4 Project duration

Projects are expected to have a duration of maximum 6 months duration. Activities are
expected to be terminated no later than December 2020.

4.5 Language

The deliverables and any correspondence between the applicant organization and UNCDF
must be in English.

4.6 Budget

Applicants should provide budgets indicating how they would contribute to produce high
quality expected results with their technical approach.

3
Applicants should request a PBA sample at [email protected]
9
5. APPLICATION REQUIREMENTS AND PROCESS

5.1 Structure of the application

• Applications about this RFA should be submitted via email at [email protected] no

later the 25th of June 2020 23:59 pm EAT with the subject:
“Engagement of ‘Booster Teams’ for accelerated inclusive access to finance for
MSMEs, Farmers and underserved communities in Nepal in COVID-19 context”

• All applications need to send the following documents:

 Submission form
 Annex 1 Budget template (excel format)
 Legal registry of the lead applicant and partners if consortium (PDF)
 Audited financial statements of last year of lead applicant (PDF)
 If consortium, a copy of the consortium agreement (PDF)

All submissions must be completed in English.

Only applications that follow the Submission Format and include all the necessary
documentation will be considered.

5.2 Application deadline

Applications about this RFA should be submitted via email at [email protected] no later
the 25th of June 2020 23:59 pm EAT.

5.3 Selection process:

• Step 1: Eligibility screening.

• Step 2: Evaluation of eligible applications by the Evaluation Panel.
• Step 3: Due diligence – due diligence on the applications that receive the minimum
qualifying score (70/100).
• Step 4: Notification of applications – all applicants will be notified of the status of
their applications.
• Step 6: Approval of the selected applications by the Investment Committee
• Step 5: Pre-Grant negotiation and Performance-based Agreement –
• Step 7: Notification of applications - all applicants will be notified of the status of their
applications after final approval from UNCDF Investment Committee.

10