REQUEST FOR EXPRESSION OF INTEREST

For Selection of

Non-Governmental Organizations (NGO)/Micro-Finance Institutions (MFIs)/ Private Entities

for Implementation of:

IDCOL’s Improved Cook Stove (ICS) Program

Infrastructure Development Company Limited (IDCOL)

UTC Building, Level – 16

8 Panthapath, Kawranbazar Dhaka-1215

March 2015

Infrastructure Development Company Limited (“IDCOL”)

Section 1: Invitation to Participate in Improved Cook Stove (ICS) Program

Program

IDCOL is a public-private sector institution promoting economic development in Bangladesh by

encouraging private sector investment in infrastructure, renewable energy and other eco-friendly

sectors. IDCOL seeks applications from non-governmental organizations (“NGOs”)/ micro-finance

institutions (“MFIs”)/ private entities for selection as Partner Organizations (hereafter referred to

as “POs”) under its Renewable Energy Program for installation of Improved Cook Stoves (ICSs) in

areas where traditional cook stoves are used as the primary mode of cooking (the “Project”).

Selection of new POs will accelerate dissemination of ICSs across Bangladesh which will fulfill the

basic energy requirements in the rural areas as well as reduce exposure to indoor air pollution.

NGOs / MFIs / private entities having successful track record of doing business and/or micro-credit

operations and interested to work in the field of renewable energy may apply to become a PO of

IDCOL’s ICS Program. IDCOL will provide institutional development grant and technical assistance,

as applicable, sourced from the World Bank and other development partners to POs for

implementation of the project. IDCOL has a target of financing installation of 1 million ICSs by 2018.

Interested organizations are requested to download complete application package from the link

provided below. Application package may also be collected from IDCOL office at a cost of BDT500

(non-refundable). Completed applications must be submitted to the address mentioned below

before 4:00 p.m. on 15 April, 2015.

Applications will be evaluated by an independent selection committee in accordance with the

criteria described in the application package. Selected POs will be required to sign Participation

Agreements with IDCOL. IDCOL reserves the right to accept or reject any application without

assigning any reason.

The Applications should be sent to the following address:

Infrastructure Development Company Limited

UTC Building, Level – 17,

8 Panthapath, Kawranbazar, Dhaka-1215.

Should you have any queries or need any clarification, please contact:

Phone: 9102171-8 (Ext-255)

Fax: +880-2-8116663

E-mail: ics@idcol.org

Complete application package can be found at www.idcol.org

IDCOL reserves the right to accept or reject any application without explaining any reason.

An Overview of IDCOL’s ICS Program Infrastructure Development Company Limited (IDCOL) with support from the World Bank has

undertaken to disseminate one million ICS under IDCOL’s ICS Program. The objective of the

program is to increase thermal efficiency of the stoves while reducing Indoor Air Pollution (IAP)

exposure especially for women and children through strengthening supply of acceptable stoves,

establishing supply chain of alternative fuels and establishing a strong base for achieving 100%

clean cooking solutions by 2030.

IDCOL aims to install 1 million ICS by 2018 and the year wise installation target is given in the table

below:

Year 2015 2016 2017 2018

Installation Target 100,000 200,000 300,000 400,000

IDCOL is currently implementing the program through 42 POs in 186 Upazilas. It adopted a cluster

based approach for implementing the program. Each Upazila consists a cluster and only one PO

works in a particular cluster. The program became operational since August, 2014 and 16,057

stoves installed till February, 2015. Under the program, IDCOL provides BDT 505.26 per ICS as

grant to the POs for awareness and capacity building of Improved Cook Stove Sector in Bangladesh.

Notably, IDCOL does not provide any subsidy for stoves.

Besides the grant, IDCOL assist the POs in their capacity building through regular arrangement of

technician training, mason training, field promotion training, IT training, management training etc.

On the other hand, IDCOL is going to run a countrywide promotional campaign of its ICS Program.

Furthermore, IDCOL provide various promotional materials like leaflet, user manual, calendar etc.

to its POs.

Currently six selected models of stoves are being disseminated under the program which are made

of concrete. These stoves are being produced by POs and local entrepreneurs. The thermal

efficiency of the selected stoves ranges from 20% to 25% while the efficiency of the traditional

stoves is around 8%. Recently IDCOL invited national and international stove manufacturers for

certification of their higher level thermal efficiency (> 25%) ICSs which in turn, if certified, will be

disseminated under IDCOL’s ICS Program. On the other hand, IDCOL has a continuous effort for

research and development in this sector. IDCOL engaged ‘Department of Chemical Engineering’ of

BUET to develop improved models of ICSs and low cost clean fuels such as briquette and pellet.

Implementation Arrangements

IDCOL aims to achieve this target through implementing a market oriented approach that involves:

Partnering with non-governmental/private sector organizations operating throughout Bangladesh

Creating ICS clusters throughout the country. Each cluster having an installation target between 2,000 to 10,000 ICSs, thus allowing for broader market penetration

Developing entrepreneur /enterprise/ ICS manufacturing unit in each cluster who will be responsible for manufacturing, supplying and ensuring the after sales service. The PO may have its own manufacturing unit in the cluster.

Providing grant facilities to the POs amounting BDT 505.26 per ICS for institutional and market development, while encouraging the POs to undertake post-installation service of the installed ICSs

Offering technical assistance such as households (HHs) and POs training, publicity campaign, quality assurance programs, ICS model testing and approval, impact study on health, among others.

Grants

IDCOL is providing grant facilities to the POs to encourage them to conduct ICS demand creation

activities. The grant component of the project is split between the PO and the entrepreneur/ICS-

manufacturers of the ICS in the following format:

For POs Tk. 405.26 per stove

For Entrepreneurs *Tk. 100 per stove

Total Grant Tk. 505.26

*The PO will retain it if the PO has own ICS manufacturing unit

Technical assistance

IDCOL provides Technical Assistance to the POs including support for (a) households and POs

training; (b) publicity campaign; (c) quality assurance programs; (d) developing the commercial

capabilities of ICS manufacturers; and (e) other activities as considered relevant by IDCOL for

project implementation. Roles of other stakeholders in this project are described below:

Households

Households (HHs) referred to those who are using traditional cook stoves for their cooking needs.

The HHs and small businesses in rural/semi-urban/urban communities will purchase these ICSs.

Individual HHs have to buy directly from the enterprises/entrepreneurs/POs.

Partner Organizations (POs)

The POs operate at HHs’ end in this project. The Project proposes to implement ICS program in 488

upazilas in the country by the Partner Organizations(POs) selected based on field presence and

proven institutional capacity as described in their proposal in response to request for Expression of

Interest (EOI) floated by IDCOL. The role of the POs starts with providing information on their

project areas and their existing presence in those areas. The POs may submit proposal for one or

multiple clusters. The number of clusters awarded will be based on the discretion of IDCOL. IDCOL

will select POs for the project following specific selection criteria (described in the Data sheet). POs

will identify potential customers in their operational area and educate them about ICS and help

them select a package that matches their requirement and affordability. The PO will select

entrepreneur(s) to be established in a particular cluster for manufacturing the ICSs as per IDCOL

approved model(s). The PO may have its own ICS manufacturing unit and in such case that PO has

to manufacture, supply and ensure the after sales service to the installed ICSs. The PO must also

ensure one-year warranty and after sales service to the ICSs. Troubleshooting and training the HHs

about the proper use of ICS are also the responsibilities of POs. Along with maintaining relationship

with HHs and manufacturers, POs need to submit disbursement applications in prescribed format

(included in the Participation Agreement) to claim grants from IDCOL.

Technical Committee

For the ICS Program, an independent Technical Committee (TC) is formed to determine the

technical standards as well as approve the eligible models. TC comprises members from

engineering university, national ICS expert, Local Government Engineering Division (LGED),

Department of Environment, IDCOL and others, if any.

Operations Committee:

Operations Committee is a committee which meets monthly to discuss different operational issues

under the Program, consisting of program-in-charges from all POs selected under the Program and

relevant officials of IDCOL and to be chaired by the Executive Director and CEO of IDCOL or his/her

representative.

Section 2: Information to NGO/MFI/Private Entity

1. Introduction

1.1 The Infrastructure Development Company Limited (IDCOL) will select Partner

Organizations (POs) in accordance with the selection criteria specified in the Data Sheet.

1.2 The NGO/MFI/Private Entity are invited to submit a Business Plan for the assignment

named in the Data Sheet. The Business Plan will be one of the bases for selection of PO and

IDCOL will ultimately sign Participation Agreement (sample agreement is given in Section

6) with the selected organization. Once the agreement is signed, activities of the

NGO/MFI/Private Entity shall be governed according to the terms and conditions of the

Participation Agreement.

1.3 The PO may submit Business Plan with a project target within the range of 2,000 ~ 10,000

as they feel being capable to implement. However, this target may later be annually revised

as per the provision of the Participation Agreement.

1.4 Please note that (i) the costs of preparing the EOI including visits to IDCOL are not

reimbursable as a direct cost of the EOI; and (ii) IDCOL is not bound to accept the Business

Plans submitted by the applicant.

1.5 IDCOL policy requires that NGO/MFI/Private Entity provide professional, objective, and

impartial services and at all times hold IDCOL’s interests paramount, without any

consideration for future work, and strictly avoid conflicts with other assignments or their

own corporate interests. NGO/MFI/Private Entity shall not be hired for any assignment that

would be in conflict with their prior or current obligations to other Executing Agencies, or

that may place them in a position of not being able to carry out the project activities in the

best interest of IDCOL.

1.6 Without limitation on the generality of sub-section 1.5, NGO/MFI/Private Entity shall not be

hired under the circumstances set forth below:

(a) NGO/MFI/Private Entity shall not be hired for any project activity, which, by its nature,

may be in conflict with another assignment of the NGO/MFI/Private Entity.

2. Clarification and Amendment of EOI Documents

2.1 NGO/MFI/Private Entity may request a clarification of any of the EOI documents up to the

number of days indicated in the Data Sheet before the Business Plan submission date.

2.2 At any time before the submission of Business Plans, IDCOL may, for any reason, amend the

EOI. IDCOL may at its discretion extend the deadline for the submission of Business Plans.

3. Preparation of EOI Documents

3.1 NGO/MFI/Private Entity is requested to submit the documents in English language.

3.2 In preparing the Business Plan, NGO/MFI/Private Entity is expected to examine the

documents constituting this EOI in detail.

3.3 While preparing the Business Plan, NGO/MFI/Private Entity must give particular

attention to the following:

(i) It is desirable that the majority of the key professional staff proposed be

permanent employees of the NGO/MFI/Private Entity or has an extended and stable

working relationship with it.

(ii) Reports to be issued by the NGO/MFI/Private Entity as part of this assignment

shall be in English language.

3.4 Institutional capacity: The institutional capacity of the NGO/MFI/Private Entity

should be described in detail to adequately document the capability of the

NGO/MFI/Private Entity.

(a) The composition of the organization’s professional and managerial staff and

type of staff, their qualifications and the tasks that are assigned to each staff team

member should be described in the Annex to Business Plan. The composition of the

proposed professional and managerial staff and type of staff, their qualifications and

the tasks that would be assigned to each staff team member should be described in

the Annex to Business Plan.

(b) CV of the Chief Executive Officer (CEO)/ Executive Director (ED)/ Managing

Director (MD) of the NGO/MFI/Private Entity shall be recently signed by the CEO

and the authorized representative submitting the Business Plan. Key information

should include academic qualification, number of years working for the NGO and

degree of responsibility held in various assignments during the last five (5) years.

(c) Financial management capacity and efficiency should be described with the

Business Plan highlighting the financial situation as reflected in the audit reports. To

demonstrate the financial management capacity, the Audit report of the last three

financial years and bank transaction statement of the same period should be

included with the Annex to Business Plan.

(d) Organizational structure of the NGO/MFI/Private Entity should be included in

the Business Plan in the Annex to Business Plan.

(e) Familiarity with the proposed working area should be described and its

documentary evidence should also be attached to the Business Plan. This will

include maintaining of a regular office during project implementation in the

proposed working area and working experience in the area in any field.

(f) Working experience with various government and non-governmental

institutions. Documentary evidence should be included in the Annex to Business

Plan.

(g) Integrated community development activities undertaken by the

NGO/MGI/Private Entity specifically in the field of renewable energy skill training,

health, nutrition, credit, social development activities etc. Documentary evidence

should be included in the Annex to Business Plan.

4. Submission, Receipt, and Opening of Business Plans

4.1 The original Business Plan and Application shall be prepared in indelible ink. It shall

contain no interlineations or overwriting, except as necessary to correct errors

made by the NGO/MFI/Private Entity itself. Any such corrections must be initialed

by the persons or person who sign(s) the Business Plans.

4.2 An authorized representative of the NGO/MFI/Private Entity shall initial all pages of

the Business Plan.

4.3 The completed Business Plan and Application Form must be delivered at the

submission address on or before the time and date stated in the Data Sheet.

4.4 As soon as available the Business Plan shall be opened by the evaluation committee.

5. Business Plan Evaluation

5.1 Any effort by the NGO/MFI/Private Entity to influence IDCOL in the IDCOL’s

evaluation of EOI, or selection process shall result in the outright rejection of the

application of the concerned NGO/MFI/Private Entity.

5.2 The information provided in the Business Plan received will be enquired into by

IDCOL through various methods including physical inspection, if required.

5.3 The evaluation committee appointed by IDCOL as a whole and each of its members

individually, evaluates the Business Plans on the basis of the eligibility criteria

detailed in the Data Sheet.

5.4 The detailed evaluation criteria and the number of points to be given under each of

the evaluation criteria for POs are:

6. Signing of Participation Agreement

6.1 Participation Agreement will be signed with the successful NGO/MFI/Private Entity,

which will provide for mutual rights and obligations of both parties under the

Project.

Subject Points

1. Financial Performance 10

i. Equity

ii. Profit on RLF/ROE

2. Institutional Capacity 20

i. Audit report findings

ii. Number and type of staff i.e. team composition and task assignments

iii. Academic qualification of Chief Executive Officer (CEO)

iv. Experience of CEO

v. Qualification and experience of proposed professional staff

3. Familiarity in the Program Area 10

i. Working experience in the program area

4. Linkage and Network 10

i. Working experience with various government or non-governmental institutions

ii. Membership and networking with professional bodies

iii. Experience in integrated community development activities undertaken by the NGO highlighting the credit activities, skill training, health, nutrition, social development etc.

Total 50

7. Confidentiality

7.1 Information relating to evaluation of Business Plans and recommendations

concerning awards shall not be disclosed to the NGO/MFI/Private Entity who

submitted the Business Plans or to other persons not officially concerned with the

process, until the winning NGO/MFI/Private Entity has been notified that it has

been selected as a PO under the project.

Section 3: Data Sheet

Clause Subject

2.1 Clarifications may be requested within 7 days before the submission date.

4.3 The Business Plan and Application submission address is:

Infrastructure Development Company Limited (IDCOL) UTC Building, Level - 17, 8 Panthapath, Kawran Bazar, Dhaka-1215 Phones: 9102171-8 (Ext-255) Fax: 8116663 E-mail: ics@idcol.org Web: www.idcol.org

Business Plans must be submitted no later than the following date and time: 4:00 PM Dhaka

Standard Time, 15 April, 2015.

5.3 Eligibility Criteria for Participating Organizations (POs)

For All Participating Organizations

(a) Satisfactory business plan approved by the PO’s Board of Directors as to the overall

planning in relation to the use of the IDCOL Grant under the Project, and containing inter-alia; proposed internal organization to implement the business plan, details of responsible business team, capacity to originate, evaluate and approve proposals, manage subsequent follow-up monitoring.

(b) Particulars of the operational and financial results of the PO for at least the previous

three (3) years based on an acceptable audited report. The PO’s operations should be profitable for at least the past two years. However, in reaching an assessment about potential profitability, IDCOL will also consider (i) forward looking business

prospects and potential for profitable operations; and (ii) if the PO is operating a ICS/Biogas program, the performance of their ICS business.

(c) After fulfilling the eligibility criteria by PO for project entry, the PO shall continue to

meet the eligibility aforementioned criteria, satisfactory to IDCOL, which shall monitor PO’s compliance therewith annually. If the PO fails at any time to satisfy the above specified criteria IDCOL reserves the right to suspend “Grant” under the Project until the PO has taken specific steps to address its problems in a manner satisfactory to IDCOL.

(d) PO has established and maintained sound and transparent accounting, MIS and

internal audit system.

(e) Accounts are audited by a reputable external auditor on an annual basis.

(f) A lawful entity organized under the laws of Bangladesh, complying with pertinent laws and regulations regarding capital adequacy (minimum Tk. 1,000,000), classification of assets, non-accrual of interest and provisioning, exposure limits, etc.

(g) Capable of managing rural renewable energy program, as evidenced by satisfactory business plan and operating results.

Section 4: Application Form

Infrastructure Development Company Limited

UTC Building, Level - 17, 8 Panthapath, Kawran Bazar, Dhaka-1215, Bangladesh

Phone: 880-2-9102171-8, Fax: 880-2-8116663, E-mail: ics@idcol.org, Web:

www.idcol.org

APPLICATION FORM FOR SELECTION AS PARTNER ORGANIZATION (“PO”)

SL. Subject Information

1. Name of the

NGO/MFI/Private

Entity

2. Year of

establishment

3. Nature of business

4. Address of the

head office

Telephone

Fax

SL. Subject Information

E-mail

Web-site

5. Registration Registration Body Registration no. Date

(a). Microcredit

regulatory Authority

(b). NGO Affairs Bureau

(c). Directorate of Social

Welfare

(d). Joint Stock Company

(e). Other (specify)

6. Address of the

registered office, if

different from

head office

Telephone

Fax

SL. Subject Information

E-mail Web-site

7. Ownership

structure of the

organization

8. List the core

activities /

programs

9. Affiliation

Affiliated With Yes/No Date of affiliation

(a). Palli Karma Sahayak

Foundation (“PKSF”)

(b). Bank of Small

Industries and

Commerce (”BASIC”)

(c). Other (specify)

10. Program outreach

Local Divisional National

SL. Subject Information

11. Area of operation

(name of

Districts)

12. Total staff

strength

13. Total number of

branch offices

14.

Has a renewable

energy / ICS

program?

Yes No

If yes, name of

program

Date

program

started

Date

program

ended

No. of system

installed so far

Source of fund

(a). Solar home system (“SHS”)

(b). Wind

(c). Hydro

(d). Biomass

(e). ICS

(f). Other (specify)

15. (a). Financial information (as per the fiscal years)

31 December 2012/

30 June 2012

(Taka)

31 December 2013/

30 June 2013

(Taka)

31 December 2014 /

30 June 2014

(Taka)

(a). Total assets

SL. Subject Information

(b). Total Liabilities

(c). Total equity capital

(d). RLF

(e). Total revenues

(f). Total operating expenses

(g). Total operating income

(h). Interest expense

(i). Net income

Section 5 Business Plan

OUTLINE OF PRO-FORMA BUSINESS PLAN FOR NGO/MFI

1. Executive Summary

a. Objectives for participating in the project

b. Summary of the main assumptions for the project

c. The management structure for implementing the project

2. Presentation of organizations for:

I) NGO/MFI

a. Track record in micro-credit (amounts, numbers of clients, types of credit, recovery rates)

b. Plans and/or track record in ICS, lessons learnt in previous projects

II) Private businesses/entities

a. Track record in business/operation (amounts, numbers of clients, types of activities,

profitability)

b. Plans and/or track record in ICS, lessons learnt in previous projects

3. Operational Plan

a. Identification of HHs (e.g. selection criteria, assumed monthly energy-budget, verification

of lower income level).

b. Project areas (i.e., clusters)

c. Target. Name the number of ICS the NGO/MFI/Private Entity is envisaging to promote

over the Project life (2015 - 2018)

d. Identification of product range (e.g. service level, performance criteria, various items in

range, maintenance and guarantee issues)

e. Operational procedures, e.g.

i. Marketing methods

ii. Supply: quality and procurement; service and guarantees

Partnership with ICS entrepreneurs for a long term business horizon Clear arrangement about service and maintenance Training Warranty arrangements: very specific with respect to ICS guarantee

to avoid disputes and HH dissatisfaction guarantee not just on components but also on performance

iii. Installation: needs; staff; equipment etc.

iv. Maintenance and service

v. Reporting, accounting and monitoring.

4. Financial Paragraphs

a. Separate project accounting

b. Break down to local offices and then aggregate for the total project

c. Budgets:

i. Financing: e.g. break down of financing of ICS (grants + NGO/MFI own funds),

d. Full financial forecasts, including Statement of Cash Flow, Balance Sheet, and Income

Statement

5. Key Issues

a. Challenges (identify the factors that are considered as major constraints by the

MFI/NGO/Private Entity in promoting ICS Project)

b. Quality issues: Quality above Quantity

i. Learning by doing

ii. Flexible targets

iii. Adjustments allowed

c. Service and maintenance arrangements

d. Start easy:

i. Low barrier areas first

Lower operational costs if close by MFI’s/NGO’s/Private Entity’s local office Higher income so better repayment Kick Start in numbers installed

ii. More complex and remote areas next

6. Closing Remarks, Pending Issues, Questions

Annex to Business Plan

1. Organizational Information

[Please attach the memorandum and articles association of your organization, copy of registration

certificates mentioned in the application form, brochures, annual reports, etc.]

2. Composition of Organizational Staff Team

Professional/Managerial Staff Name Position Task Name of Upazila ……. ……..

3. Composition of Proposed Staff Team

Professional/Managerial Staff SL Proposed

Position Qualification Experience Remark

4. Format of Curriculum Vitae (CV) of Chief Executive Officer (CEO)/Executive Director

(ED)/Managing Director (MD)

Name: Designation: Date of Birth: Years with NGO /Entity: Nationality: Membership in Professional Societies: Detailed Tasks Assigned: Key Qualifications: [Give an outline of experience and training. Describe degree of responsibility on relevant previous assignments and give dates and locations. Use about half a page.] Education: [Summarize college/university and other specialized education, giving names of schools, dates at-tended, and degrees obtained (Enclose photograph, copy of key qualification certificates). Use about one quarter of a page.] Employment Record: [Starting with present position, list in reverse order every employment held. List all positions held since graduation including dates, names of employing NGOs, titles of positions held, and locations of assignments. For experience in last ten years, also give types of activities performed and Executing Agency references, where appropriate. Use about two pages.] Languages: [For each language indicates proficiency: excellent, good, fair, or poor in speaking, reading, and writing.] Certification:

I, the undersigned, certify that to the best of my knowledge and belief, these data correctly describe my qualifications, my experience, and me. [Signature of CEO and authorized representative of the MFI/NGO/Private Entity] Day/Month/Year Full name of CEO/ED/MD:____________________________________________ Full name of authorized representative: ___________________________

5. Audit Report

[Please enclose the certified Audit Report for the last three years (2011-2012 & 2012-2013 & 2013-

2014)]

6. Financial Solvency

[Please enclose Bank Statement of the period for which audit report has been submitted and de-tailed

Bank Information (Name of the bank with address, Account Number(s) with operational

arrangement) here]

7. Organizational Structure of the NGO

[Please insert the Organizational structure of the organization i.e. how it is managing its activities and

how it is planning to implement the Post-Literacy and continuing Program]

8. Familiarity of the MFI/NGO/Private Entity in the proposed project area

[Describe the details of office establishment and years of working experience in the proposed

Thana/Upazila]

9. Working Experience of the NGO

Working Experience with various government or non-governmental institutions [This is a sample format, NGO/MFI may use different format if they desired]

SL

Name of Organization Worked With

Status of the Organization (Governmental or Non-governmental)

Assignment Duration

Major Tasks

Integrated community development activities of the NGO

[This should include credit, skill training, health, nutrition, social development and other related activities of the NGO. This is a sample format, NGO may use different format if they desired]

SL. Title of the Program

Target Population

Achievements to Date

Lessons Learned etc.