Location : Mbarara, UGANDA
Type of Contract : Individual Contract
Post Level : International Consultant
Languages Required : English
Starting Date : (date when the selected candidate is expected to start) 15-Apr-2014
Duration of Initial Contract : 60 days
Expected Duration of Assignment : up to 6 months
Brief Background
The UN Capital Development Fund (UNCDF) is the UN’s capital investment agency for the world’s 49 least developed countries. It focuses on Africa and the poorest countries of Asia and the Middle East, with a special commitment to countries emerging from conflict or crisis. Within its economic development mandate UNCDF specializes in public and private financing mechanisms that catalyze economic growth and make it more inclusive and sustainable.
Through country programmes and global thematic programmes, UNCDF offers a unique combination of investment capital, capacity building and technical advisory services to promote Local Development Finance and Inclusive Finance in the Least Developed Countries (LDCs). UNCDF’s Local Finance Initiative (LFI) is an innovative programme designed to unlock financial sectors in developing countries for financing small and medium-sized infrastructure projects that are needed to accelerate local economic and private sector development.
Key Duties and Responsibilities
The Consultant will report to the Chief Technical Advisor, Local Finance Initiate (LFI) based in Dar es Salaam, Tanzania:
Provide specialized project finance advisory services that will lead to the financial closure of Dairy processing plant in Uganda (85 %)
- Document the critical detailed steps required to reach financial closure of the project including reviewing and updating relevant permits updating prices and other key elements of the independent studies;
- Provide a substantially complete financial model based on new information from agreements and negotiations with lenders, equipment suppliers, contractors, lawyers and or any other relevant third parties;
- Perform transaction structuring to achieve the optimal capital structure aimed at meeting known requirements of lenders and investors;
- Prepare relevant project financing documentation including Bank Information memoranda required to present to potential lenders and investors both at preliminary screening and late stage presentations having clear, transparent and relevant information that is in accordance with international standards;
- Consult and participate in equity and debt agreements negotiations with lenders/equity investors including term sheet and other key project documents and agreements;
- Arrange debt syndication (if necessary), negotiate and agree syndicated loan documentation with project developer and participating banks;
- Review final equipment supplier proposals, consult and participate in the terms negotiations with supplier/s and Engineering, Procurement and Construction (EPC) contractors, investors and lenders to protect the project developer;
- Consult and participate in the contract negotiations with Operations and Maintenance (O&M) supplier/s to protect project developer;
- Advise and support the introduction and negotiations of credit enhancements, guarantees or any other relevant tools intended to mitigate lenders perceived project risks;
- Support the structuring of the Special Purpose Vehicle (SPV) and advice on project management plans;
- Support the project developer during lender due diligence visits and enquiries;
- Advise and support the introduction of currency hedging instruments, where required by the lender;
- Advise and support the engagement and negotiations with legal advisors for the project developer / lender;
- Advise the project developer through the entire funding negotiation process leading to the signing of financing documentation to achieve project financial closure status;
- As part of the final report, prepare a list of activities (including conditions precedent issued by lender/investors) that may remain pending at the conclusion of this assignment for follow up by the project developer.
- Support UNCDF staff engagement in project finance deliberations and provide knowledge transfer through on the job consultation sessions and informal training as needed. Deliver at least one in house consultation session/training for each of the following: building dynamic financial models, key elements in negotiating EPC agreements, debt/equity arrangements and assessing risk and mitigation strategies.
The Detailed Work Plans
Create work plan for project to include at a minimum the following objectives, activities and strategies to achieve them:
Objective 1: Full due diligence and development of investment documents
Substantially complete Financial Model including the full costs
- Revenue breakdown, Profitability and returns, Deal structure, Term sheets.
- SPV set up/Company registration, Financial position of all partners, investors and shareholders;
- Risks, Regulatory requirements for proposed transaction;
- Technology and generation capacity;
- Profitability and returns;
- Etc.
- EIA’s, all permits including building etc;
- EPC, O&M, and all other agreements/contracts.
- Market, Corporate overview, Personnel and management;
- Risk and Mitigation strategies including credit enhancements and guarantees;
- Technology and production capacity;
- Profitability and returns;
- Legal and regulatory.
Objective 2: Strategies to help project to reach financial close with commercial banks, investors, lawyers, contractors, and other third parties.
- Bank Information Memoranda;
- Presentations and negotiation of terms with key stakeholders mentioned above.
- Detailed Work Plan;
- Due Diligence Report;
- Substantially complete and consolidated Financial Model for the Base Case and sensitivity analyses;
- Project Management Plan;
- Project Budget;
- Bank Information Memorandum both the preliminary version and the detailed final version)
The following bi-monthly deliverables may be adjusted as needed based on review and approval of UNCDF.
Financial Advisory Services Outputs
Month 1 & 2
- Complete set of critical project documents have been reviewed and the detailed project work plan developed and completed;
- A short version of bank information memorandum (brief project information) developed and completed
- Project information has been shared with key stakeholders and at least four potential lenders, investors and providers of risk mitigation facilities in each category have been screened;
- At least two term sheets or proposals received, reviewed, and comprehensive responses provided to potential investors and investors;
- Initial negotiations of at least two term sheets, possible credit enhancements and guarantees with strategic partners/providers conducted;
- Initial negotiations of key project agreements with at least two key stakeholders in each category e.g. EPC contractors, lawyers, government etc. conducted;
- Project budgets and project management plans developed;
- Updated Base Case financial model and sensitivity analyses prepared;
- Due diligence report completed.
Month 3 & 4
- Advanced negotiations of at least two term sheets, possible credit enhancements and guarantees with strategic partners/providers conducted;
- Advanced negotiations of key project agreements with at least two key stakeholders in each category e.g. EPC contractors, lawyers, etc. conducted;
- Substantially complete financial model is delivered;
- Updated bank information memorandum drafted;
Month 5 & 6
- Final contract/agreements with contractors and or lawyers approved by the bank for at least one project;
- Financial close (financing agreement) for project is approved or in final stages of approval by lenders/investors;
- Final Report completed and delivered to UNCDF;
- Month 2 - Complete one in house training in focused on developing financial models to select UNCDF staff;
- Month 4 - Complete one in-house training to select UNCDF staff related to negotiating EPC agreements, debt/equity arrangements and assessing risk and mitigation strategies with specific examples from the project and lessons learned.
The following reports shall be submitted to UNCDF (to the attention of the LFI CTA) in form and substance acceptable to UNCDF:
- Bi-Monthly Status Reports, within 2 weeks after the end of the two months cycle;
- Final Report upon completion of the assignment.
Candidates are required to have all appropriate visas in order to work in Uganda throughout the duration of the contract
Compensation:
This contract will be based on daily or monthly agreed fee. Payment shall be made according to a Payment Schedule, to be approved by UNCDF, which will be worked out based on review of the financial proposals and the detailed duties and expected outputs. The daily or monthly fee is all inclusive and shall take into account various expenses incurred by the consultant during the period of the contract. Payments will be based on timesheets and invoices approved by UNCDF.
Travel:
UNCDF will pay separately travel expenses (economy airfare, terminal expenses and per diems which include hotel and food expenses) according on standard UN rates based on evidence of approved and actual travel.
Competencies
- Serves and promotes the vision, mission, values, and strategic goals of UNCDF;
- Plans, prioritizes, and delivers tasks on time;
- Conceptualizes and analyses problems to identify key issues, underlying problems and how they relate to each other;
- Demonstrates effective written and oral communication skills;
- Plans and produces quality results to meet established goals;
- Generates innovative, practical solutions to challenging situations.
Education:
- A Master’s Degree or equivalent in international development, financial management, Business administration or equivalent.
- A minimum of ten years progressively more responsible relevant experience.
- Development and execution of viable limited recourse project finance transactions in developing countries including projects in Africa;
- International investment banking experience and a demonstrated track record in securing private sector financing for projects with project sponsors, including sponsors that are SMEs;
- Knowledge of investment, finance and their project analysis tools and methodologies;
- Demonstrated track record in structuring infrastructure projects in developing countries, using risk mitigation structures, including specific elements such as EPC, O&M and off taker agreements/contracts;
- Demonstrated track record of innovating in the above project development and financing processes, adapting the development, structuring, risk mitigation, and financing as needed to secure private sector finance;
- Access to potential lenders and alternative equity partners from the Development Finance Institutions (DFI’s) / Multilateral Finance Institutions (MFI’s) / impact investment community;
- Demonstrated ability to develop and or close project finance transactions in Africa, is a plus;
- Demonstrated the ability to successfully interact with individuals of different cultural backgrounds which include willingness to try and understand and be tolerant of differing opinions and views.
- Fluency in English.
Individual consultants will be evaluated based on a “Lowest-priced among technically qualified candidates”.
The award of the contract will be made to the individual consultant whose CV has been evaluated and determined as (a) technically responsive/ compliant/ acceptable, and (b) lowest daily fee. CVs will be evaluated based on:
- Relevant experience working in international development, project development and project finance, and helping a project reach finance close in Africa.
Qualified candidates are requested to upload the technical and financial proposals as one document. All the required documents should be attached and submitted with your proposal.
The proposal should contain:
- Technical proposal;
- Recent CV with references;
- Proposed daily rate and other expenditures.
More details at: http://jobs.undp.org/cj_view_job.cfm?cur_job_id=44218
Application Closing date: Wednesday, 5 March 2014