Call for expression of interest: Financial Service Providers (FSPs) 1. Introduction
1.1 Countywide Sanitation Activity (CWSA) Sanitation Loan for households and SMEs. The USAID Liberia Countywide Sanitation Activity, implemented by Population Services International (PSI) and its partners (Concern Worldwide, Athena Infonomic, and Gusceman Inc.), is a five-year (2022 – 2026) activity that aims to achieve universal adoption of basic sanitation and a permanent end to open defecation in Liberia, supported by a coordinated and adequately funded ecosystem of public, private, and community actors, enabling and inspiring action for household and SMEs to build improved latrines. The geographical focus of this USAID Liberia Countywide Sanitation Activity are Rural Montserrado, Bong, Nimba, Lofa, and Grand Bassa Counties. These five counties account for 72% of the overall population of Liberia and account for 64% of open defecation in Liberia.
To achieve its main Goal, the PSI-led Countywide Sanitation Activity is implementing activities through a wide network of partners across four Result Areas; 1. Improved Sanitation Governance; 2. Adoption of key Sanitation Behaviors, 3. Strengthened Sanitation Markets, and 4. Increased Financing for Sanitation.
This will be pursued by applying the Market Systems Development approach that focuses on systemic change with the key objective of stimulating the sanitation markets and the supply chains to innovate and sustainably replicate promising practices. In this approach, CWSA aims to leverage partnerships with market actors, identifying impediments and opportunities in the sub-systems of the sanitation market in Liberia; and facilitating solutions that strengthen competitiveness and access through market-based incentives that are viable to the target group. Under Result 4. One of the Intermediate Results (IR4.1) aims to increase access to finance for targeted households and enterprises across the five counties. CWSA plan to explore opportunities for partnership with qualified Financial Service Providers (FSPs) including Microfinance Institutions, (MFIs), Village Savings and Loans Associations (VSLAs) Apex, Credit Unions, or Rural Financial Institutions (RFCIs) to develop and administer affordable sanitation loan product tailored for households and a separate loan product for local sanitation enterprises businesses, with flexible payment terms for the various target groups.
PSI seeks to identify financial service provider(s) offering or willing to develop and provide sanitation loan products to households and SMEs in the targeted counties. The selected financial service provider should be based in the five targeted CWSA counties or with an expanded network and alliances across target counties. PSI will support the selected institution to expand on its loan products and services offering to include sanitation loans tailored to the financial needs of low income sanitation market segments. The FSPs will be required to demonstrate that they understand, have the expertise and experience of consumer financing, and articulate gaps,
and opportunities to propose innovative and practical solutions that can be implemented to address the identified gaps sustainably for both the target group and the financial institutions. 2. Requirements
2.1 Technical and Compliance Requirements
The selected FSPs shall be required to demonstrate their technical and compliance competence including:
2.2 General Requirements: Procedures and Logistics
The interested financial institution shall be required to:
2.3 Geographical Consideration,
The financial service provider shall be willing to provide sanitation loan products and services in the five counties where CWSA is operating namely: Rural Montserrado (district #1 and #17), Bong, Nimba, Lofa, and Grand Bassa.
2.4 Scale, demand, and market opportunity
As part of their expression of interest, institutions are required to answer the following questions. • What hindered the introduction and scaling of the FSP’s sanitation loan products in the past, if you have tried doing it before?
A 2-hour debriefing session will be held at the PSI-Countywide Sanitation Activity office along Tubman’s Boulevard, Fish Market on Tuesday, January 30th, 2024; 10.30 am-11:30 am. Only 1 representative per institution is required.
Interested Banks/ Microfinance institutions are required an Expression of Interest cover letter accompanied by 3-5 pages of confirmation of how they meet the requirements above (section 2) via email to LR_Tenders@psiliberia.org These should reach PSI on or before noon (GMT); on February 6, 2024.
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