Request for Information - Political Risk Insurance.docx

REQUEST FOR INFORMATION

Statement of Work Capital Mobilization Impacts Resulting from DFC’s Political Risk Insurance Product

OVERVIEW

The United States International Development Finance Institution (“DFC”) is seeking the services of a vendor to conduct an analysis of the effectiveness of DFC’s political risk insurance (“PRI”) and reinsurance products in mobilizing private capital to achieve positive developmental impacts. The G7 Impact Taskforce identified real and perceived political and macro-economic risks as key constraints to private investment in lower income countries. As such, DFC is seeking to derive lessons learned to support and/or enhance the tool’s effectiveness in driving private capital to achieve positive development impacts. The analysis will include an assessment of the role DFC’s PRI and reinsurance products have in mobilizing private capital from approximately 14 projects that span several geographies and sectors (see Annex).

Applicable frameworks

The assignment is required to consider the following reference frameworks:

· OECD’s Methodologies to Measure Amounts Mobilized from the Private Sector

Key Task: PRIVATE CAPITAL MOBILIZATION ASSESSMENT The assessment will evaluate the effectiveness of DFC’s PRI and reinsurance products in mobilizing private capital by:

1) Conducting a literature review on studies pertaining to the effectiveness of PRI and reinsurance products that are available in the market that aim to mobilize provide capital to achieve positive development results,

2) Conducting a landscape analysis of the PRI and reinsurance sector that identifies key private and public players, DFC’s competitive advantages, and obstacles to DFC doing more,

3) Conducting interviews with DFC staff to understand DFC’s PRI and reinsurance products and selected projects in its portfolio,

4) Conducting interviews with DFC-supported investors, insurers, and brokers to gain an understanding of the impact of DFC’s PRI product in mobilizing private capital,

5) Collecting investment data to assess how much capital was mobilized as a result of DFC’s PRI and reinsurance (aligned with OECD’s capital mobilization methodology to the extent feasible),

6) Compiling actionable lessons learned and/or recommendations for the Corporation to utilize its PRI and reinsurance products more strategically.

Deliverables

1. Internal Report to DFC leadership and staff on its findings on the Effectiveness of DFC PRI and Reinsurance in Mobilizing Private Capital. After finalizing the research, data compilation, interviews, and analysis of mobilization impacts, the IC will develop a workplan for the submission of a first and final draft, with time built in for DFC to provide feedback and the IC to make revisions. At a minimum, the report should include:

· Executive Summary

· Introduction

· Literature Review Overview: Synopsis of literature review that describes financial structures, including PRI and reinsurance, that intend to mobilize private capital into markets where real and perceived macroeconomic and political risks constrain investment

· PRI and Reinsurance Sector Analysis: Landscape analysis of the PRI market that includes, to the extent feasible:

· An assessment of the total amount of PRI provided in countries which the World Bank classifies as upper middle income, lower middle income, and low income (excluding export credit insurance and any reinsurance of export credit agreements)

· An assessment of total PRI provided by primary insurers without reinsurance from public insurers, such as DFC or MIGA.

· An assessment of how much PRI is done through brokers

· An assessment of how much of the PRI is issued for corporate blanket policies, and how much is issued for greenfield projects and expansion of brownfield projects

· An assessment of the maximum term of initial insurance contract (regardless of any potential renewals)

· An assessment of private insurer requirements for projects to comply with international environmental, social, and governance standards, such as the IFC Performance Standards.

· An assessment of DFC’s competitive advantage and/or gaps in the market that DFC is well-positioned to fill.

· Assessment of DFC’s Mobilization Results: Assess the effectiveness of DFC PRI and reinsurance products in mobilizing private capital for each selected project in the portfolio (see Annex), including the amount that was mobilized (using OECD’s Methodologies to Measure Amounts Mobilized from the Private Sector to the extent feasible) and testaments from DFC clients (investors, insurers, and brokers)

· Recommendations on how the Corporation can more strategically employ its PRI and reinsurance products to mobilize capital to achieve positive developmental outcomes

2. Summary Report of Findings and Recommendations. This document will pull the main take-aways from the Internal Report in a format that enables DFC leadership to quickly identify recommendations going forward.

3. Powerpoint Presentation: The IC will prepare a Powerpoint presentation based on its findings that will be presented to DFC leadership and staff.

4. External Report and Presentation: The IC will derive a public-facing report and presentation after finalizing the Internal Report and Powerpoint Presentation.

5. The IC will present its findings to DFC staff and co-host webinars with DFC on mutually acceptable dates following the completion of the Internal Report

QUALIFICATIONS

The IC should have strong expertise in analyzing financial structures and products offered by development finance institutions and other impact investors that are intended to mobilize private capital to achieve positive development results.

At a minimum, the IC team must include experts that focus on the topics of development finance with at least 5 years’ experience in conducting research on PRI or risk mitigation instruments, blended finance, or other approaches to mobilizing private capital. When required, the IC shall deploy additional local and thematic experts and support staff.

The team experts are expected to have strong analytical and report writing and presentation skills. The team shall be fluent in English as all communication and deliverables will take place in English.

QUESTIONS

1. What is your experience in completing similar requirements?

1. How should DFC approach developing a rough order of magnitude for how much the requirement as a whole would cost? Any information that could be shared on estimates of total cost and/or starting blocks for developing total cost.

1. How long do you expect the work to take? Should the period of performance be 3 months, 6 months, 9, months etc…?

1. How do we reach capable vendors? Any successful awardee will need to be registered in SAM.gov to be considered for award, however is there any vendor preference for how to solicit the need (i.e. open market, GSA, or any other available contract vehicles on the market)?

1. Note - We have proposed 14 projects that will be assessed for capital mobilization impacts. This number is flexible and can be adjusted upward or downward depending on the level of effort it will be to collect the necessary data and conduct the analysis.

RESPONSE DATE

Please submit your response to Omar Mohamed at Omar.Mohamed@dfc.gov NLT May 13, 2022 at 4:00 pm EST.

ANNEX

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