05 95332424Q0038 fe.pdf

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95332424Q0038

TABLE OF CONTENTS:

Listing of Incorporated Purchase Requisitions Section B - Supplies or Services and Prices/Costs Section C - Description/Specifications/Work Statement Section D - Packaging and Marking Section E - Inspection and Acceptance Terms Section F - Delivery or Performance Section G - Contract Administration Data Section H - Special Contract Requirements Section I - Contract Clauses Section J - List of Documents, Exhibits, and other Attachments Section K - Representations, Certifications, and Other Statements of Offerors Section L - Instructions, Conditions and Notices to Offerors Section M - Evaluation Factors for Award

Listing of Incorporated Purchase Requisitions

Incorporated Purchase Requisition Numbers:

DCO-PR-24-0119

Section B - Supplies or Services and Prices/Costs

Item Number Base Item Number

Supplies/Services Quantity Unit

0001 Blended Finance Base Year 1 LT Contract Type:Time and Materials

Unit Price Other Direct Costs

Extended Price

Description:

Year 1 Deliverables

Purchase Requisitions DCO-PR-24-0119

IDC Type: Not Applicable FSC Codes: R499 SUPPORT- PROFESSIONAL: OTHER NAICS Code: 541990 All Other Professional, Scientific, and Technical S...

Item Number Base Item

Number Supplies/Services Quantity Unit

1001 Blended Finance Year 2 1 LT Contract Type:Time and Materials

Unit Price Other Direct Costs

Extended Price

Description:

Year 2 Deliverables

Purchase Requisitions

Option:

Option Time Date: 8/2/25 Option Time Duration: 364 Option Time Units: Days IDC Type: Not Applicable

Item Number Base Item Number

Supplies/Services Quantity Unit

2001 Blended Finance Year 3 1 LT Contract Type:Time and Materials

Unit Price Other Direct Costs

Extended Price

Description:

Year 3 Deliverables

Purchase Requisitions

Option:

Option Time Date: 8/2/26 Option Time Duration: 364 Option Time Units: Days IDC Type: Not Applicable

Clauses incorporated by reference

None

Clauses incorporated by full text

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 OBJECTIVE

The objective of the BF Consultancy is to better position MCC Senior Management and FIT to communicate effectively and efficiently to both internal and external stakeholders FIT's engagement with the private sector including Blended Finance (BF) Strategy, key BF metrics, successes and lessons learned in the past and current FIT Portfolio of projects and activities utilizing efficient tracking and reporting tools.

B.2 SERVICES TO BE PROVIDED

The Millennium Challenge Corporation (MCC) requires the services of a contractor to support MCC's Finance, Investment and Trade (FIT) Team to review and assess MCC's experience to date in blended finance and create the tools and communication materials needed to track and regularly report results, successes and lessons learned across the FIT portfolio of projects and activities.

B.3 CONTRACT TYPE

This is a time and materials type contract.

B.4 LABOR CATEGORIES, HOURS, RATES and: COSTS

The first four (4) tables identified below will be provided to quoters' as a price quote template which must be completed. The next 5th table below, the Level of Effort Labor Hours data, is provided as an illustrative example. All Quoters' will only be evaluated on the maximum level of efforts established by the Government, which is a total of; 3,080.00 labor hours---however:

Quoters' may allocate the total # of hours of: 3,080.00 across the different PoPs / Contract Deliverables according to the unique technical proposal / approach of the Quoter. Quoter's should not Quote less than or more than: 3,080.00 labor hours.

PROPOSED Base Year

Hours Rates Price

Team Lead

Technical Expert Blended Finance

Technical Expert - Coms/Graphics

Support to Technical Expert

Technical Expert - Training

Technical Expert - Business Process Analyst and Data Systems Design

SUB-TOTAL

PROPOSED Option Year 1

Hours Rates Price

Team Lead

Technical Expert - Business

PROPOSED Option Year 2

Hours Rates Price

Team Lead

Technical Expert - Business

PROPOSED Contract Summary

Hours Price

Team Lead

Technical Expert - Business

TOTAL

Government Estimated Level of Effort Labor Hours

Base OPTN 1 OPTN 2 Sub-Totals

Team Lead 660.00 80.00 80.00 820.00

Technical Expert Blended Finance

620.00 90.00 90.00 800.00

Technical Expert - Coms/Graphics

270.00 50.00 50.00 370.00

Support to Technical Expert 150.00 80.00 80.00 310.00

Technical Expert - Training 480.00 0.00 0.00 480.00

Technical Expert - Business Process Analyst and Data Systems Design

300.00 0.00 0.00 300.00

Totals 2480.00 300.00 300.00 3080.00

OTHER DIRECT COSTS

Cost Component

SoW Citation / Paragraph

Base Year OY 1 OY 2 sub-total

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00 total ODCs $0.00

Other Direct Costs: The Quoter shall use table 6 identified above for any ODC(s) that the Quoter has deemed necessary in order to successfully complete the performance requirements of the SoW. ODCs are reimbursed on a cost reimbursable basis only. The ODC NTE total over the life of the contract is: $TBD. See RFQ Sections L &M below for further details on ODC(s).

UNCLASSIFIED

UNCLASSIFIED

Section C - Description/Specifications/Work Statement

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

A. Introduction

The Millennium Challenge Corporation (MCC) is a Federal Corporation created under Title VI of the Foreign Operation, Export Financing, and related Programs Appropriations Act, 2004. Based on the principle that aid is most effective in countries that promote good governance, economic freedom, and investments in people, MCC provides large grants to a relatively small number of eligible low and lower-middle income countries. Details on MCC and its methodology may be viewed at http://www.mcc.gov. In particular, an overview of MCC's compact development process can be found at https://www.mcc.gov/resources/doc/guidance-compact-development-guidance.

MCC is helping lead the fight to reduce global poverty by promoting economic growth in our partner countries. Recognizing that sustainable development is best achieved by fostering country ownership, good policies and investment in people, MCC provides partner countries the opportunity to identify their own priorities for achieving economic growth and poverty reduction.

MCC seeks results that are transparent, measurable and attributable to MCC's investment.

MCC realizes that development assistance alone—even when effectively delivered and implemented—is not enough to win the fight against global poverty. At the core of MCC's vision is the understanding that market-based economic growth, led by private investment, is critical to sustainable development. MCC-funded programs strive to improve the core market-supporting functions of its partner country governments, from delivery of infrastructure and social services to strong institutions and regulatory environments.

B. Background

Private Sector in Development

MCC seeks to amplify impact and achieve sustainability of its results to ensure sound market-enhancing programs and poverty reduction will continue after the end of the Millennium Challenge Compacts (Compact) and Threshold Program Grant Agreements (Threshold Agreement) that MCC signs with partner countries to fund MCC-funded projects and their activities (Program) in those countries. Sustaining the gains from MCC investments often depends upon supporting the capacity and development of private sector institutions within partner countries. Vibrant private sectors, especially business enterprises, and civil society organizations, along with supportive policy environments and the institutions that maintain them, ensure that MCC's results are achieved and continue to be sustained. Without the employment, technology, innovation, and revenues generated by the private sector, a country's prospects for continued growth are challenged. Consequently, MCC collaborates with business and civil society in the design and implementation of its projects and in the tracking of results to increase investments in partner countries, lower risks to investors and generate growth opportunities. This includes projects that directly target development of the local business community, including improving regulatory policies and access to credit, as well as projects that involve infrastructure development, health, education, land administration, and agriculture, among others.

MCC recognizes that sustained economic growth requires the efficient allocation of domestic capital and the attraction of foreign capital into productive investments. Foreign capital is often hampered by the domestic and global policy environments. Financial investors seek to access well-regulated financial markets and trade opportunities that provide liquidity and security within global policy norms. Attracting capital into new sectors or ventures often requires incentives and public support that provides a pathway for follow-on investment by private investors. While returns are expected to compensate for risks in well-defined areas, collecting appropriate returns in developing countries often is difficult, requiring public investment to mitigate investor risk. Where appropriate, MCC seeks opportunities to blend finance to de-risk investments and/or encourage investments in new areas or desired outcomes that support economic growth.

Within this context, MCC actively engages the private sector in its programs in four ways:

§ Process: MCC requires its partner countries to involve business and civil society stakeholders during program development and implementation.

§ Projects: MCC fosters business development and expansion through projects targeting policy reform, private enterprise financing and technical assistance, financial sector development, private participation in provision of public services like electricity, transport and water, and other sorts of public management and governance interventions that improve the market-supporting functions of government and its interface with the private sector.

§ Blended Finance: MCC integrates tools into its programs that blend finance to de-risk investments and encourage investments with desired social or development outcomes.

§ Procurement: MCC ensures procurement opportunities are fair, open and competitive, and that U.S. companies are aware of potential business opportunities.

MCC's Finance, Investment and Trade Team

MCC's Finance, Investment and Trade (FIT) Practice Group (part of the Infrastructure, Environment and Private Sector (IEPS) Division) leads the agency's efforts to catalyze private investment in and around projects that MCC funds in partner countries using a range of tools, including blended finance (e.g., grants, credit enhancements, technical assistance), public-private partnerships, and regulatory and institutional reform, in order to increase project impact and sustainability. MCC recognizes that robust private investment is pivotal to sustaining economic growth and understands that potential investors consider risks and rewards associated with a country's existing business climate, sector-specific policies and its private and public institutions. MCC's investments help mitigate risks in its partner countries, develop favorable investment climates and promote private enterprise growth to reduce poverty.

Private Sector Opportunities Assessment (PSOA)

MCC has developed the Private Sector Opportunities Assessment (PSOA), a systematic approach led by MCC's FIT group to identify and assess opportunities to positively enhance private sector activity and blended finance opportunities so that they are given appropriate consideration during the development of a Compact or Threshold Program. FIT considers the PSOA one of it key products, critical to early stages of program development at MCC. FIT annually reviews and updates the scope and approach of the PSOA based on learning of previous year and taking into consideration MCC priorities. Currently the PSOA includes the following stages:

Preliminary Analysis: PSOA Stage 1 includes the Finance Sector Analysis (FSA) and Productive Sector Analysis (PSA) and:

§ Begins immediately after country selection and is completed during the Constraints Analysis (CA) phase of the compact or threshold program development process, where MCC and the partner country seeks to identify binding constraints to private investment in the host country.

§ Analyzes the financial sector and supplements the CA with quantitative and qualitative data to help MCC's Economic Analysis (EA) team to test whether finance constrains investment in profitable projects in the host country (i.e., FSA); and

§ Identifies a sample of industries that are representative of the country's potential for growth (High Potential Growth Industries or HPGIs); and that can shine light on key constraints to growth in the country's economy (i.e., PSA), including environmental and social aspects. It should be noted that identifying and prioritizing HPGIs is not an attempt to "pick winners." Rather, assessing the constraints to investment and growth within these specific industries helps to validate and add useful detail to the selection of binding constraints in the CA.

Problem Diagnosis: PSOA Stage 2 includes identification of:

§ The root causes of specific binding constraints in the CA that MCC and the host country elect to address.

§ Potential concept projects for MCC to support to alleviate those root causes; and § Opportunities to use blended finance tools to de-risk and attract private investment in and around MCC-funded projects and provide a climate, environmental and social inclusion lens to these analyses.

Concept Note Development and Detailed Project Design

Based on the findings in PSOA Stages 1 and 2 and after the MCC and MCA Teams have identified and agreed on areas of focus, FIT will then conduct additional, very detailed due diligence to further define and develop proposed concepts/projects and blended finance interventions as well as late stage project design with MCA counterparts.

FIT Portfolio Overview

Table 1 below provides a preliminary list of the FIT portfolio to date with brief project description, in chronological order with most recent first. The "Top 10+" most successful, impactful blended finance interventions that we want to be sure are part of the FIT story are highlighted in green. This list of FIT/Finance Projects may not be complete and is provided to give a flavor of the range and scope of the FIT portfolio – past and present. The Contractor, through the course of this assignment will expand, correct, update this list and create a master database as tasks and deliverables require. Attachment 1 provides more detailed information on five of these examples to provide additional context and to illustrate some of our existing communication products that may or may not need significant revisions improvement before inclusion into the Communications Package task and associated deliverables.

Table 1: Snapshot FIT Portfolio

Country Project/Activity Sector Budget Timing

1 Belize Credit Enhancements and Transaction Advisors RE $2M 2025-30

2 Malawi ACFD Multi $8.5M 2024-29

3 Kenya (THP) Sustainable BRT/BF Facility Transport $12M 2024-29

4 Indonesia II Financial Markets Development/BF Facility BF Facility = Grant Facility funding a variety/range of blended finance instruments

Multi $90M 2024-29

5 Indonesia II MSME On-Lending Facility Multi $50M 2024-29

6 Lesotho II ACFD Multi $3M 2024-29

7 Lesotho II BETA Project (BDS and ecosystem support) Multi $62M 2024-29

8 Kosovo ACFD Power $2M 2024-29

9 Sierra Leone Project Prep Facility Power $24.5M On Hold

10 Solomon Islands (THP) ALTIF - IFC Partnership and TA Facility Tourism 2022-26

11 The Gambia (THP) PPP Institutional Strengthening Power $1.5M 2022-26

12 Cote D'Ivoire PPP Truck Parking and Logistics Center Transport $5M 2022-26

13 Mongolia II Utility Twinning Water $2.75M 2021-26

14 Morocco II Sustainable Industrial Zones/LGF LGF = Leverage Grant Facility providing "matching grants" into defined project (min 1:1)

Land $40M 2018-23

15 Morrocco II Industrial Zone PPPs Land $32M 2018-23

16 Morocco II Green Guarantee for Industrial Zones Land $10M 2018-23

17 Benin II Off Grid Clean Energy/LGF RE $28M 2017-23

18 Kosovo (THP) KCGF RE Guarantee Facility (GROW) RE $2.5M 2017-22

19 Guatemala Support for PPS (Legal reform up to TAS) Multi $3.6M 2016-21

20 El Salvador II Investment Challenge Parallel Investment Multi $25M 2015-20

21 El Salvador II Support for PPS (Legal reform up to TAS) $10M 2015-20

22 Honduras Transaction Advisory Support for PPPs Multi $2.4M 2014-19

23 Georgia II Competitive Improvement Program/LGF Education $12M 2014-19

24 Indonesia I Green Prosperity Facility/LGF and Project Prep RE, Ag $123M 2013-18

25 Zambia I Innovation Grants/LGF WASH $5.2M 2013-18

26 Jordan As-Samra PPP Water $85.2M 2011-16

27 Moldova Revolving Ag Credit Facility Ag $12M 2010-15

28 Namibia Conservancy Ecotourism /LGF Tourism $8M 2009-14

Country Project/Activity Sector Budget Timing

29 Burkina Faso On-Lending Facility Ag $3M 2009-14

30 Morocco I Financing MFIs Multi $30M 2008-13

31 Morocco I Catalyst Fund/LGF Ag $20M 2008-13

32 Ghana I Revolving Ag Credit Facility Ag $20M 2007-12

33 Ghana I Agribusiness Centers/LGF Ag $5M 2007-12

34 El Salvador I Credit Guarantees for MSME Loans Ag $3M 2007-12

35 Armenia Revolving Ag Credit Facility Ag $8M 2006-11

36 Georgia I Investment Fund (GRDF) Multi $30M 2006-11

FIT Blended Finance Tool Kit

MCC is well placed within the U.S. Government, financial sector and wider development community to play a catalytic role in the strategic use of development finance to mobilize private capital flows to our partner countries. FIT's role in this process includes leading MCC's private sector engagement across all stages of Program development and implementation, designing and integrating blended finance solutions in Compact and Threshold Programs to catalyze private investment in and around these programs.

MCC uses a "cascade" approach in employing blended finance tools to better use its limited public resources to reach development objectives. Traditionally MCC uses upstream policy and institutional reform to address market failures. The purpose of these reforms is to catalyze private sector investment. MCC often seeks to validate reforms using blended finance as a market validation mechanism. MCC can deploy a variety of mechanisms from its blended finance toolkit such as risk instruments and credit enhancements (e.g., guarantees, first loss grants) to cost-effectively cover risks of private investment.

MCC's blended finance tool kit, or instruments includes both providing support to bring projects to market (outside the deal tools) and financing solutions to enable financial close (inside the deal tools). Given the MCC model, all of the instruments in the FIT Blended Finance toolkit are delivered in the form grants, quite often using a facility approach to competitively select and deliver targeted solution.

Outside the deal tools and support to help bring projects to market include:

§ Technical assistance to prepare bankable projects; and

§ Transaction advisory services for public private partnerships (PPPs) and for capital market instruments (e.g.

green bonds)

Inside the deal tools and financing solutions to enable financial close include:

§ De-risking instruments to protect against capital loss or to reduce price risk, including:

o Loan or performance guarantees o Foreign exchange hedges o Support for import financing

§ Cost contributions with no expected repayment, including:

o Capital/Equity Contributions o Viability gap funding (VGF) o Interest rate buy-downs o Payment of third-party fees

Table 2 below provides examples from the FIT portfolio mapped to tools from the current Blended Finance Toolkit, noting that while to date we have used a variety of tools and approaches, not all of the above outlined options/approaches have yet been deployed. During the course of the assignment this blended finance framework may evolve.

Blended Finance Data Calls and Salesforce

MCC is frequently asked by the Administration (White House, USG, Interagency) or other institutions like OECD to report on its leverage and private investment mobilization numbers. Furthermore, the FIT team frequently receives ad hoc data calls from IEPS Senior Management, CPA and the Front Office of the CEO related to FIT's blended finance portfolio and work with the private sector. MCC's current practice to-date includes responding to these requests on an ad-hoc basis and is largely dependent on a handful of team members who have the institutional knowledge of the programs and pipeline. MCC's current practice of reporting is inefficient, time-consuming to generate verifiable data, and also misses opportunities to share blended finance leverage data more broadly. The current approach also only focuses on the amount of money leveraged and does not capture the actual impact of any private capita mobilized and/or allow for effective communication on the blended finance experience at MCC.

To date FIT has used Salesforce to track private leverage figures. However, there are challenges and limitations when using Salesforce for this purpose. Salesforce is unable to generate reports with tables or graphics, is better suited for tracking the life cycle of sales and deals, and requires FIT team members to download raw data from Salesforce to Excel in order to complete verification exercises and carry out any analysis.

Table 2: Blended Finance at MCC

FIT Blended Finance Tool/Instrument

Use of Blended Finance Grant/

MCC Funding

Examples from FIT current/past portfolio

Sup port to brin g proj ects to mar ket

Technical Assistance/Project Prep

Feasibility and other technical support needed prepare bankable projects

§ GP TAPP window – Commercial RE (Indonesia I)

Transaction Advisory Services

Support to PPPs and capital market instruments

§ Industrial Zone PPPs (Morrocco II) § El Salvador PPPs § FMDP – Indonesia II § Truck Parking Logistics Center (CDI)

Fina ncin g

Solu tion s to ena ble proj ects to reac h fina ncia l clos e and/ or scal e up

Blended Finance Grant Facility

Grants and/or loans for blended finance instruments needed to facilitate financial close of defined transaction

§ BFDM Indonesia (Indonesia II)

Co-Investment Project Developer Support

VGF needed to reach financial close (in structured transaction)

§ As-Samra Wastewater Treatment Plant (Jordan)

§ GP – Commercial RE (Indonesia I) § Morocco II Industrial Zone Program

Co-Investment/

Matching Grant Facility

Co-Investment with private sector in a defined project

§ GP – Sustainable Cocoa (Indonesia I) § Off-Grid Clean Energy Facility (Benin)

Support to Guarantee Funds

Equity, others costs, TA to increase capacity

§ GROW Guarantee Facility (Kosovo) § Green Guarantee Fund (Morocco II)

American Catalyst Facility for Development

(ACFD)

Blended finance instruments needed to enable USDFC to finance riskier transactions

§ Malawi § Lesotho § Kosovo

On-Lending/

Revolving Credit Facility

Funds used to provide multiple rounds of lending to targeted beneficiaries with finance constraints

§ Revolving Credit Programs (Armenia, Moldova, Ghana)

§ MSME On-Lending Activity (Indonesia II)

American Catalyst Facility for Development (ACFD)

The 2018 BUILD Act provided the impetus for MCC and US Development Finance Corporation (DFC) to create the American Catalyst Facility for Development (ACFD). MCC will provide grant funding in its programs to support DFC's high-impact projects that are consistent with both agencies' missions and within identified constraints which includes those constraints outside of the binding constraint selected $50 million per country. ACFD investments are approved by each agency and by the partner country. Investments will be managed by the DFC. The MCC- US Development Finance Corporation (DFC) blended finance facility, ACFD was structured to increase USG development competitiveness and encourage impact transactions in overlooked low- and middle-income countries (LICs/LMICs). It is the largest inter-agency coordination effort within the USG development sphere. MCC has allocated funding $14m so far for ACFD in Malawi, Lesotho, and Kosovo.

ACFD is expected to be evaluated for inclusion into new compacts – Togo, Zambia, Senegal Regional, The Gambia, and Mauritania. While still early in implementation, the promise of ACFD was endorsed by Congress.

Climate Finance

At COP27 in 2022, MCC and USAID announced the launch of a Joint Green Finance Pilot Program for low- and lower-middle income countries. The agencies will invest in technical assistance that enables the use of green bonds and other blended finance tools, potentially unlocking billions in new climate finance for developing countries.

Financing for climate investments in developing countries must be increased or many countries will fall behind and face additional development challenges. These countries are among the most vulnerable to the negative impacts of climate change and the financing gap to meet present energy transition and climate adaptation needs is particularly pronounced. Climate finance includes an array of financial products and services, which can be broadly divided into banking, investment, and insurance products. Examples of these include, inter alia, green bonds, green-tagged loans, green investment funds and climate risk insurance., provide a solution to the under-investment in climate mitigation, adaption and thus resilience.

U.S. climate finance is organized into three thematic pillars: adaptation, clean energy, and sustainable landscapes. Climate financing may include:

• Climate-related Investments – Projects where MCC addresses climate risks and/or opportunities that make the entire investment resilient and/or reduce (growth in) greenhouse gas emissions. Where a project supports climate benefits, the entire value of that project is counted.

• Climate-smart Agriculture (CSA) - An approach that helps to guide actions needed to transform and reorient agricultural systems to effectively support development and ensure food security in a changing climate. CSA aims to tackle three main objectives: sustainably increasing agricultural productivity and incomes; adapting and building resilience to climate change; and reducing and/or removing greenhouse gas emissions, where possible.

• Climate-smart Development - Economic development approaches that help build prosperity, end poverty, and combat climate change. Climate-smart development is resilient, inclusive, and less carbon-intensive. It can include investments in mitigation, adaptation, sustainable landscapes, climate-resilient infrastructure and just transition.

• Sustainable Infrastructure – Infrastructure systems that are planned, designed, constructed, operated, and decommissioned in a manner that ensures economic and financial, social, environmental (including climate resilience), and institutional sustainability over the entire infrastructure lifecycle. Sustainable infrastructure can include built infrastructure, natural infrastructure, or hybrid infrastructure that contains elements of both.

Climate financing could also include a number of other strategic elements, including climate-related activities, ways to help countries achieve their NDC's, and additional innovations.

C. Scope

The Contractor will support the FIT team to improve and expand the communication tools it uses with both internal and external audiences with objectives of promoting the benefits of blended finance within MCC programs (in general) and tracking and reporting out on specific project and activity successes, including leverage achieved.

The assignment will be conducted in two phases starting with an historic review of MCC projects and programs that will provide input into a "Blended Finance at MCC@20" report and the development of a set of communication and training tools to be road tested during the FIT Blended Finance College/Workshop in Nov 2024. During Phase II the Contractor will build on the experience in Phase I to determine the key FIT and blended finance metrics and reporting requirements, review existing MCC and FIT data and portfolio tracking tools and make recommendations for a set of tools and process to track and report on leverage and other key FIT and blended finance metrics. This may include a dashboard approach and use of BI Analytics software. Depending on the recommended approach/process the Contractor may work with the MCC Digital Services team to adopt/execute any key recommendations.

D. Tasks

Base Year

For each of the two phases described below, the Contractor will first provide an Inception Report that outlines methodology for completing the various required tasks, timeline for interim and final deliverables, estimated LOE and key personnel required.

Only after agreement has been reached on Inception Report and implementation methodology with the below tasks commence. NOTE: Bidders are encouraged to propose additional/alternative sets of tasks/approach to completing required deliverables and objectives of Phase I assignment.

Phase I: Assessment of Blended Finance at MCC@20 and Delivery of FIT Blended Finance College

Starting with and informed by an historic assessment of MCC's portfolio, the Contractor will develop a set of strategy, communication and training tools to be used by MCC with external stakeholders and by FIT to raise knowledge of blended finance with internal stakeholders – all to be road tested during the FIT Blended Finance College/Workshop in Nov 2024.

Task 1: Analysis of MCC's historic blended finance and private sector engagement experience to date

The Contractor will review all of MCC's programs and interventions to date using publicly available data, the input package provided at time of contract award (described in detail below) and internal resources identified during interviews with key stakeholders conducted early in the implementation of Task 1. This analysis will, at a minimum, include:

§ Summary/note of which programs had no blended finance and/or access to finance MCC had a period of doing "revolving" credit facilities and/or access to credit related TA that did not necessarily include blending interventions

§ For programs with blended finance and access to finance interventions, an assessment of how programs performed historically, including program results and documenting the evolution/trends of private sector engagement in MCC compacts over time

§ Assessment of the current FIT blended finance tool kit and instruments used to date

§ Assessment of Climate Finance+ to date and targets related to Climate Finance+

§ Baseline for where MCC is at institutionally with blended finance (as compared with current market trends)

§ Summary of MCC's track record to date on leverage – both directly attributable to MCC blended finance interventions and any follow-on leverage achieved

§ Recommendations on how to develop our blended finance framework/approach going forward.

To complete Task 1, the Contractor will need to review all of the 47 MCC Compact and Threshold Programs signed over the last 20 years, available on the MCC website and Evidence Platform (https://mcc.icpsr.umich.edu/). During discussions with key stakeholders and the data review process the Contractor will track trends and evolution of the FIT practice (formerly known as the "Financial Services and Private Sector Development Team (FSPD)"). The key MCC stakeholders involved in completing this task include:

§ A lead/point of contact (POC) from the MCC M&E Team assigned to work with/respond to questions related to review of M&E Reports and Impact Evaluations and understanding of MCC's current policies related to M&E Policy and related Indicator Tracking Tables (ITT) and common indicators and "tagging" system.

§ FIT Project Leads for the various blended finance interventions and/or FIT/FSPD-led interventions will be available for interviews that will be critical to fully understand the projects and provide any/all data sets, project descriptions and other briefing and communication materials on a project specific basis.

§ FIT and other MCC POCs for MCC's Climate Finance+ initiative

§ A POC from MCC's CPA team assigned to provide support and input on the Blended Finance@MCC@20 Report and other external facing deliverables.

§ The FIT PLSD, to be interviewed early in the process to better, clearly understand assignment and general thinking about MCC blended finance experience.

The key output of this task will be the Blended Finance at MCC@20 Report, to include, at a minimum:

§ Overview/summary of blended finance and its role, history at MCC including an MCC-specific definition and how/why blended finance is a MCC priority

§ Review and assessment of the FIT portfolio, including comparison with other donors, DFIs, and relevant websites/databases (also reviewed as part of Task 2)

§ Timeline and evolution of trends within MCC and the FIT Practice Group presented graphically

§ Complete inventory/database of the FIT Portfolio and a consistent system/approach to describing and categorizing the portfolio (that will be used in later tasks in this assignment); and

§ Blended Finance Framework and approach going forward (discussed agreed during completion of Task 2), including leverage targets and other metrics to be tracked and reported on.

§ Assessment of Climate Finance+ and integration into the Blended Finance Framework

As noted in the description above, some elements and conclusions/learning from Task 2 benchmarking exercise will inform/be integrated into the Blended Finance at MCC@20 Report which will be a stand-alone document used for internal and external communication purposes.

Task 2: Benchmarking MCC blended finance experience

After assessing the MCC portfolio the Contractor will compare and contrast the MCC experience in blended finance with other donors active in the blended finance space, including at a minimum the International Finance Corporation (IFC), Dutch Entrepreneurial Development Bank (FMO), British International Investment (BII), US Agency for International Development (USAID) and European Development Finance Institutions (EDFI) Partner Institutions (https://www.edfi.eu/). The Contractor should also review the Convergence - The Global Network for Blended Finance for any other relevant institutions/initiatives active in blended finance and propose/include as part of the Inception Report. This assessment will provide an external measurement of peers active in blended finance and serve as a reference point for recommendations on how MCC can better use blended finance as a tool to enhance impact of MCC programs and develop methodologies for institution wide approaches to better integrate and expand blended finance interventions in all MCC Compact and Threshold Programs. This assessment will also help to inform FIT and MCC target setting on leverage as an institutional priority and "common indicator" to be tracked in all MCC programs.

When developing recommendations related to standardizing the MCC blended finance framework and approach the Contractor should review and consider third party frameworks like the GIIN Investor Forum and DFC's New Development Performance Measurement System, Impact Quotient (IQ).

The key output of this task, taking into consideration findings in Task 1 will be recommendations for revising and updating MCC/FIT's current Blended Finance Strategy for the 2024-2026 period. The FIT Strategy Recommendations should include at a minimum:

§ Recommendations for revising/updating MCC/FIT's current Blended Finance Strategy for 2024-2025, including integration of MCC's Climate Finance objectives;

§ Recommendations for leverage targets for the FIT portfolio overall and for each of the blended finance tool/instruments (as appropriate) using assumptions based on MCC past and current blended finance interventions and general market/donor experience, evidence and comparators.

§ FIT Communications Strategy – for both internal and external stakeholders.

Task 3: Develop/Assemble Blended Finance Communications Toolkit

Building on existing fact sheets, data bases, strategy documents and other reports and briefers, develop a Blended Finance Communications Package to be used to effectively communicate the MCC and FIT "blended finance story". This will be separate from the Blended Finance at MCC@20 Report and serve as a master toolkit for FIT and CPA to use as appropriate for various communication purposes both externally and internally, including the FIT Blended Finance Workshop in Nov 2024.

Each element of the toolkit should be a stand-alone item.

The Blended Finance Communication Toolkit will include at a minimum:

§ One-page overview/summary of blended finance and its role, history at MCC, including a MCC-specific definition and how/why it is an MCC priority;

§ Timeline graphic showing evolution of MCC private sector engagement and blended finance interventions as mapped to the global market for grant funding

§ One-page snapshot/list for all historic and current blended finance project/activity/interventions at MCC by country and by type of intervention, including leverage achieved for each and in total

§ Snapshot of the Blended Finance Product Manual (Task 4) summarized in one page and that describes each of the blended finance tools/instruments, rationale for each instrument, decision tree/conditions under which they are deployed

§ One-page case studies for MCC's "Top 10" most successful, impactful blended finance interventions (to be mutually agreed)

§ One-page BF Information Graphic (scope of content to be agreed)

§ Updated MCC 2024-2026 Blended Finance Strategy

§ Other as agreed during implementation and discussion of other deliverables

§ Updated Blended Finance Factsheet (to be posted on MCC Vine/internal sharepoint site)

Task 4: Develop/Assemble Blended Finance Product Manual

Building on existing information provided on FIT's Blended Finance Instruments/Tool Kit (see key inputs and background sections of Section C) and other information available in the market using desk research and Contractor's own experience, develop a Blended Finance Product Manual to be used to assist in determining appropriate instrument/tool/intervention during program development and design and as a training tool for FIT, MCC and MCA staff.

The Blended Finance Product Manual will include, at a minimum:

§ Summary and detailed description and rationale for each/all blended finance instrument/tools considered as part of the FIT Blended Finance Tool Kit

§ Conditions under which they are deployed and a decision tree (and any relevant modeling) to assist in determining appropriate instrument and appropriate, non-market distorting amount of blended finance funding

§ Template term sheets for each instrument

§ Other as agreed during inception phase and review of interim drafts

Task 5: Support FIT team in design and execution of Blended Finance Workshop in Nov 2024

While Tasks 1-4 and associated deliverables are stand-alone deliverables critical to advancing blended finance at MCC, they will also be instrumental in FIT delivering a high-quality Blended Finance Workshop in Nov 2024. Timing of the Blended Finance Workshop, tentatively planned for Nov 14-21, 2024 is the driver for the timing of Task 1-4 deliverables as the material prepared for the Blended Finance Workshop will be based on these early tasks. Specifically, building on Tasks 1 – 4 above and associated deliverables, the Contractor will Support the FIT Lead in the design and preparation for the Blended Finance Workshop in Nov 2024, including but not limited to:

§ Development of additional inputs (beyond the Task 1-4 deliverables) to be used by FIT during execution of the Blended Finance Workshop such as Power Point Presentations, interactive training sessions, and workshop specific case studies and any required updates to the Blended Finance Communications Toolkit and Blended Finance Product Manual

§ Review preliminary agenda proposed by FIT and make recommendations/suggestions for adjustments as/if appropriate that may result in need for additional workshop materials

§ Support the FIT team in preparation and execution of the Blended Finance Workshop, , including potentially presenting 1 -2 modules/sessions during the workshop itself.

The Blended Finance College may include a more general learning objective of providing MCA attendees a day of basic "blended finance" training to support professional development. If required, agreed, the Contractor will also review existing/known Blended Finance Training Programs (such as those offered by Convergence and Ande) and develop a customized, MCC-specific one-day training program (including 1-3 modules) to be delivered by the Contractor during the Blended Finance Workshop. This one-day session will provide both general knowledge of blended finance and current trends in the market while also including examples and case studies from the MCC experience and trends.

Key Inputs to complete Phase I tasks:

§ MCC 2023 Blended Finance Strategy

§ List of MCC's "Top 10" most successful, impactful blended finance interventions

§ MCC Website/Evidence Platform (impact and performance evaluations); Compact and THP documentation

§ FIT presentations and associated spreadsheets/data calls for IEPS 2023 Workshop

§ Misc internal/external briefers/fact sheets, data calls and project information

§ M&E ITT and Common Indicator Reports (via MCC MIS)

§ Salesforce Database (expired internal FIT tracking system)

§ Leverage Reports to OMB and USAID/OECD

§ MCC Private Sector Heat Map (covering early period in "private sector development" at MCC)

§ Third party databases e.g. Convergence website and Platform, Uxolo/TXF

§ Modules/examples from Blended Finance training delivered to FIT and MCC staff

§ Active practitioners' websites e.g. World Bank IFC, IDB, OECD, EDFI, UN

§ Preliminary Blended Finance Workshop Agenda – topics, objectives, timing

§ Other TBD prior to contract award

NOTE: A file/folder with all above listed/relevant inputs that are not currently public needed to launch Task 1 will be provided at time of the contract award.

Phase II: Design and implement processes to consistently and efficiently track, measure and report on results of MCC efforts to increase/leverage private sector investment.

Building on the work during Phase I and the complete inventory/database of the FIT Portfolio and a consistent system/approach to describing and categorizing the portfolio compiled and developed during Task 1, the Contractor will develop clear criteria and data requirements and a set of recommendations and alternative approaches for measuring, tracking and reporting on MCC's blended finance interventions taking into consideration existing and recently developed FIT databases/inventory (i.e. Salesforce and deliverables related to Tasks 1 and 3).

As appropriate the Contractor will work with the MCC Digital Services Team to conduct the assessments described in Tasks 6, 7 and 8 and as/if agreed support the FIT and MCC Digital Service Team on the implementation of agreed approach/process to tracking and reporting key blended finance metrics. The key MCC stakeholders involved in completing the Phase II tasks include:

§ A lead/point of contact (POC) from MCC's Digital Services Team to provide overview of MCC MIS and other information systems, shared datasets and dashboards that may be relevant and to provide on-going collaboration when completing Phase II tasks.

§ A lead/point of contact (POC) from the MCC M&E Team that can provided guidance and information on the M&E policy, system and ITT and explore effective ways to align frameworks, Indicator Tracking Tables (ITT) and common indicators and "tagging" system

Objectives for the Blended Finance tracking and reporting tools and processes are that the combined tools and processes (aka reporting system) should be able to, at a minimum:

§ Track and report key metrics such as leverage by individual program and at FIT portfolio level;

§ Track specific deals (or sub-projects) supported by the various blended finance programs;

§ Produce and/or support the update of case studies and portfolio infographics and other communication tools (developed in Phase I);

§ Allow for efficient posting and/or integration into the blended finance platforms commonly used by other donors and DFIs to report on deals and blended finance metrics taking into consideration any requirements for posting and tracking deals (see Task 11 for details); and

§ Produce outputs/report/information that can serve both MCC needs and allow for efficient integration with results reporting platforms (as per Task 11 requirements).

The audience for Blended Finance Reports include:

§ MCC Management

§ MCC Country Teams during development phase to demonstrate opportunities, results

§ CPA/Congressional Reporting

§ Other DFIs/Market

§ Blended Finance Platforms (i.e. Convergence and Uxolo) tracking Blended Finance deals (see Task 10 below)

Task 6: Develop a clear set of requirements for achieving MCC objectives related to tracking and reporting on MCC Blended Finance

Building on Phase 1 tasks and deliverables develop and agree with FIT management on the key metrics to measure success, other key features/outputs of a blended finance tracking and reporting process and high-level content and look of summary dashboard. This will include integrating the needs of reporting on deals supported under the various blended finance facilities and guarantee funds supported by MCC as determined in Task 11.

Task 7: Examine MCC's existing Information Systems to determine if any of them can be used to meet the requirements identified in Task 6

In coordination with the POCs from FIT and the OCIO's Digital Services Team, review the following:

§ MCC–Business Relations System (MCC–BRS), i.e. Salesforce. This is a shared system used by FIT and other entities within MCC. The FIT data is partitioned from the other users.

§ MCC MIS. This is MCC's primary line of business application used to capture and process data around its program operations.

Task 8: Make recommendations on next steps to operationalize a set of improved tools and processes for blended finance tracking and reporting

Building on Tasks 6 and 7, create a list of prioritized recommendations to improve blended finance tracking and reporting.

Where possible/relevant:

§ Identify risks, opportunities, and/or dependencies.

§ Provide a gap analysis where MCC's existing tools or processes could be enhanced

Task 9: Support implementation of Blended Finance Reporting Platform

Support the implementation and development of the tracking and reporting tools and processes recommendations in Task 8.

• From Task 8, if functionality gaps in MCC's current technology systems exist between the desired end-state and the current-state, produce documentation outlining those gaps.

o Include a traceability matrix between the requirement, the current process, and clearly identify where the gap exists.

o Provide estimated level-of-effort to address each functional gap individually as well as in aggregate in a format to be mutually agreed upon with MCC (for example, this could be done…