TENDER NOTIFICATION

Ref: APRM/AUC/LSACR/001/2022
Title: Request for proposal for individual consultant to developing the legal, structural and financial framework for an African Credit Rating Agency (ACRA)
Issuer: African Peer Review Mechanism (APRM)
Issue date: 19-08-2022
Sector: Legal Services, Research, Consultancy and Professional Services
Closing date: 15-09-2022
Closing time: 11:00
Compulsory meeting: No
Meeting date: N/A
Description: Request for proposal for individual consultant to developing the legal, structural and financial framework for an African Credit Rating Agency (ACRA)
Tender number: APRM/AUC/LSACR/001/2022
Closing date and time: 15th September 2022 at 11.00

Program:
Support to African Union Member States in the Area of Credit Rating Agencies

Assignment:
Developing the Legal, Structural and Financial Framework for an African Credit Rating Agency (ACRA)

1. BACKGROUND INFORMATION
The African Peer Review Mechanism (APRM) was directed by the 3rd African Union Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning and Integration STC, which was held on the 7th – 8th of March 2019 in Yaoundé, Cameroon, to carry out a feasibility study on the creation of an African Credit Rating Agency (ACRA) and present the outcomes back to the 4th STC. The study, whose outcomes indicated that it was feasible to establish an ACRA, was undertaken and the outcomes were presented to the 4th STC held from the 17-19 May 2021. The 4th STC further requested the APRM to proceed and work on the legal, structural and financial implications of establishing the ACRA as an entity of the Union and report the findings to the 5th STC. Thus, the 5th STC requested the APRM to deepen the conclusions on the legal, structural and financial implications of an ACRA.

The APRM seeks the services of a technical consultant to develop the Legal instrument, Structural and Financial framework of an African Credit Rating Agency (ACRA) as a self-funded and autonomous Agency of the African Union. This process was directed by the 5th African Union Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning and Integration, as part of the mechanisms to support African Union Member States in the field of rating agencies as mandated to the APRM by AU Assembly Decision Assembly/AU/Dec. 631 (XXVII). The outcome of this assignment will inform the STC and other AU policy organs on the legal status, structure, ownership and financing model of the ACRA.

The directive to explore the establishment of an ACRA followed a common challenge of persistent rating downgrades amongst African countries. The impact of these rating downgrades has been far reaching and continues to threaten the sustainability of public debt due to high borrowing costs. Other challenges include: (i) influence of rating agencies on government policy, (ii) negative perception on subjective governance indicators in their rating methodology, (iii) underplaying the economic potential of African countries, (iv) dominance and overreliance of African countries on the three dominant international credit rating agencies (Fitch, Moody’s and Standards & Poor’s), and (v) the inherent conflict of interest.

2. DESCRIPTION OF THE ASSIGNMENT
The overall objective of the assignment is to review the legal, financial, and structural recommendation presented in the Report of the Legal, Financial and Structural Implications for the Establishment of the Africa Credit Rating Agency with the aim of deepening the conclusions on the implications presented therein.
i. Review the legal, financial and structural implications presented in the aforementioned report to provide additional substantive detail and ensure coherence within the framework for the establishment of the ACRA as a financially independent and autonomous specialized agency of the African Union.
ii. Ensure that the conclusions on the legal, financial and structural implications of the ACRA provide a definitive proposal elaborating the independence of sources of start-up capital.
iii. Develop a strategy for the implementation of the proposed financial model (and/or the business model) for the financial sustainability and independence of the ACRA. This among others shall involve making expert projections on the capitalization requirements, revenue and all other costing involved in the operationalization of the ACRA in line with other Pan-African institutions.

CLARIFICATION
Clarification can only be sought through email: tenderinfo@aprm-au.org during working hours – Monday to Friday – time 8.00am to 5.00pm hours (South African Time), at least seven days before the closing date. Response shall be published on APRM portal. DO NOT SUBMIT YOUR BID THROUGH THIS EMAIL

MODE OF APPLICATION/ SUBMISSION & DOCUMENTS TO BE SUBMITTED BY CONSULTANTS
Prospective consultants should submit an expression of interest, containing a technical proposal and a financial proposal.
The technical proposal should, among others, list the profile of the consultant, understanding of the ToRs, understanding of the methodology, detailed workplan, references and contact persons.

The financial proposal should give a cost breakdown per milestone and take into consideration all expenses.
The proposal should be in USD and inclusive of all taxes and other statutory obligations as may apply.

Request for Proposal clearly marked : PROCUREMENT NUMBER: APRM/AUC/LSACR/001/2022: REQUEST FOR PROPOSAL FOR INDIVIDUAL CONSULTANT TO DEVELOPING THE LEGAL, STRUCTURAL AND FINANCIAL FRAMEWORK FOR AN AFRICAN CREDIT RATING AGENCY (ACRA)
Shall be submitted through email: tender@aprm-au.org on or before 15th September 2022 at 11.00 hours SAST. The RFP shall be opened immediately after the closing date and time.

Eligible women are encouraged to apply.

The selection procedure and contract award shall be done in accordance with the AU Procurement Manual, version 2.0 dated July 2016.

All applications in writing should be accompanied by up-to-date certified Curriculum Vitae (state nationality) and supporting documents (Relevant Academic Certificates & reference letters) (Note: do not send originals) with the names and addresses of three referees, one of which should be the last consultancy and addressed to:

African Peer Review Mechanism
Private Bag XO8, Halfway House
Physical Address: 230 15th Road, 1st Floor,
Randjespark, Midrand, 1685,
South Africa
Tel: +27 11 256 3401
Send Bid to Email: tender@aprm-au.org

see document for more details regarding this tender
see: https://www.sa-tenders.co.za/sites/default/files/final_tors_enlish_versi…

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