Attachment_1-_SOO-_Emerging_Market_Bank_Analysis_Training_FINAL.pdf

STATEMENT OF OBJECTIVES (SOO) FOR THE EMERGING MARKET BANK ANALYSIS

TRAINING CLASS

1) Agency Background The Overseas Private Investment Corporation (“OPIC”) was established as an agency of the U.S.

government in 1971. OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help address critical development challenges and in doing so, advances U.S. foreign policy and national security priorities. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with debt financing, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. OPIC supports a wide range of investments, including extractive industries, agriculture, manufacturing, and infrastructure. OPIC is required by U.S. law (Title IV of the Foreign Assistance Act of 1961) to evaluate certain policy issues for every project it supports.

2) Department Mission/Purpose

a) OPIC’s Structured Finance and Insurance Department (“SFI”) is responsible for the underwriting, credit approval, and loan negotiation of debt financing and the underwriting and approval of political risk insurance for American businesses investing overseas in less developed countries where OPIC is open. In addition, the political risk insurance team also monitors project performance to ensure that projects comply with the terms and conditions of the OPIC contract.

It is the responsibility of the SFI officers to insure that these projects are implemented in a manner consistent with OPIC’s credit policy mandates and statutory requirements. SFI supports many projects through financial intermediaries, including banks, in these frontier international markets. In order to try to provide a common baseline for this bank analysis, the department is looking for training that is current in the marketplace.

b) Rather than sending 30 investment officers to individual training, it would be most cost effective to provide training in-house to the entire SFI team on these issues. It would allow the entire SFI professional team to acquire the technical abilities, resources, and professional network needed at the lowest cost.

3) Scope

a) OPIC is looking to purchase in-house training on the analysis of banks located in emerging markets, particularly of those located in frontier markets with current actual case studies..

b) The training will provide an important foundation on which the professional team can build more systematic and robust assessment of banking entities to ensure OPIC’s work is consistent with current banking analysis techniques.

4) Period of Performance and Contract Type

a) The Period of Performance is anticipated to be six (6) months from contract award.

b) Training is anticipated to be conducted in two days from May 15 to October 31 subject to availability of OPIC staff.

c) The Government anticipates awarding a Firm Fixed Price (FFP) type contract.

5) Key Objectives

a) The contractor will provide in-depth in-classroom training on the techniques used to analyze banks operational in emerging markets and specifically located in international frontier markets. The training should focus in particularly around international frontier markets, including, but not limited to:

• The framework a lender, regulator, rating agency and equity investors use to evaluate the credit of financial institutions

• Analysis of characteristics of an operating environment including macro-economic factors, and regulatory environment matters;

• Analysis how to measure of bank performance from a financial perspective;

• Analysis of early warning signals; and

• Analysis of successful corporate bank management and risk management departments.

b) The contractor will provide multiple case studies in the international frontier markets.

c) The contractor will provide instructional materials including case studies to support the training.

d) The training will be conducted in Washington, DC to an audience ranging from 25 to 30 finance and political risk insurance professionals.

6) Deliverables

a) The contractor shall prepare, deliver and update as needed the following deliverables.

Number Deliverable Due

1 Final Instructor Resume(s) Two weeks in advance of course start date

2 Final Agenda Two weeks in advance of course start date

3 Final Course Materials Two weeks in advance of course start date

7) Operating Constraints

a) Instructor must be subject matter experts on Bank Analysis. He/she must have current and demonstrated expert-level experience with and an expert-level knowledge of the analysis of banks in developing markets and frontier markets.

b) Instructor must provide sufficient analytic data to support discussion of topics and case studies.

c) The vendor shall arrange training for two days between May 1 and October 31, subject to OPIC staff availability.