CLARIFICATION NOTICE NO.1

RESPONSE: 24 JUNE 2022

REQUEST FOR PROPOSAL:

PROVISION OF GREEN CREDIT FINANCING FACILITY AND MANAGEMENT SERVICES MANDATE IN PARTNERSHIP WITH THE ENVIRONMENTAL INVESTMENT FUND OF NAMIBIA

(a) The document makes reference to collateral being provided by the service provider. Kindly advise whether or not the EIF will require the successful bidder to provide collateral to cover the total line of credit, or if the collateral will be covered by the end-users / borrowers.

Answer:

*EIF will require the successful bidder to provide collateral to the line credit, a certain proportion to the funds secure, this is in addition to a contribution

*Additionally, since the successful institution will secure the credit line, they may require the end users/ borrowers to provide security of the loans using a number of instruments as below:

• Collateral from the recipient

• Suretyship of the loan from an individual who is employed full time.

• A cession agreement with the off-taker, if in the judgment of the financial intermediary, the off-

  taker is a reputable entity.

• If the client has been banking with the financial intermediary for a significant period of time, a

  credit scoring lending approach will be allowed.

• Insurance products including business loan protection insurance and credit life insurance.

For bank guarantees, the financial intermediary may request a cash cover by the lending entity

(b) The document makes reference to co-funding by the successful bidder / service provider. Kindly provide clarity on whether the service provider will be expected to match the EIF by a specific percentage on all facilities issued to end-user borrowers.

Answer: *The successful financial intermediary will be a expected to give a contribution on the total value of the facility, this implies a contribution of 10% of the facility’s quantum.

(c) The document makes reference to bidders holding a license from Namfisa. Is it a requirement for bidders to hold a license from Namfisa and be recognised as a financial service provider, or would unlicensed entities also be considered for the bid?

Answer: *The EIF seeks the services of licensed entities, licensed as Financial services provider by the regulator ( NAMFISA) or as a bank by the Central bank ( BON)