CALL FOR PROPOSALS

CONSULTANCY SERVICES TO DESIGN DEVELOP NATIONAL VALUATION STANDARDS, GUIDELINES/MANUALS.

Procuring Method: International Open Competitive Bidding

• Introduction

1.1 Background

The Institute of Real Property Valuers in Rwanda (IRPV) amongst several other functions is to analyse and find solutions to all problems related to valuation profession, to promote the valuation profession in Rwanda, to prepare regulations and guidelines governing the valuation profession and to prepare valuation standards. The IRPV Intends to develop the National Valuation Standards (NVS) and guidelines/manuals. The Regulatory Council which is mandated to regulate and control the valuation profession and the activities of certified valuers shall play a leading role in collaboration with IRPV in the development of the Standards and Guidelines/Manuals. The standards shall ensure consistency, transparency and confidence in valuations which are key to mortgage business, investment decisions, infrastructure development, climate change mitigation, environmental conservation, financial reporting and financial market stability. This is part of a wider strategic plan to strengthen valuation services and curtail the long outstanding problems associated with valuation variances and inaccuracies. The NVS and guidelines/manuals form a basis for regulating the valuation professional practice, promoting professional ethics, integrity, impartiality and trust in valuation services in the Country.

1.2. Problem statement

In Rwanda just like in many other developed and developing countries, the role of a valuer is very significant in providing a professional advice on the value of different assets as defined by International Valuation Standards for a number of clients, stakeholders and users to make informed decisions.

There have been a number of enacted laws that have given Rwanda’s Valuers the sole legal mandate to provide professional advice on assets values for a number of reasons ranging from mortgage, taxation, expropriation, sale/purchase, financial reporting, auction, insurance, and court litigations and so on.

Of recent, Valuers have been accused of unprofessionalism where both over valuation and under valuation cases have been reported depending on the purpose of valuation. For example, it has been widely claimed by banks and other stakeholders that over valuation is usually done for mortgaged properties at mortgage registration and under valuation is done at auctioning of mortgaged properties. Also under valuation has been reported during expropriation cases.

In addition, there is growing International pressure especially from funders of public infrastructure projects such as the World Bank, European Investment Bank and African Development Bank for adherence to International Valuation Standards (IVS) under expropriation/compulsory land acquisition in the country. This is in view of ensuring compliance with International Finance Corporation standards as well as the Equator principles. However, considering that the IVS represent a global consensus that can be applied across countries with very diverse political and judicial systems, they are often at a high level, i.e. they set a broad requirement but do not normally provide detailed examples of how that requirement can be complied with in different situations. Currently, there are no common valuation standards and guidelines/manuals in Rwanda and given the nature of the Rwanda’s property market and economy, there are considerable variations between the principles laid down in the IVS and the local valuation practice. Diverging bases of value and methodologies are being used to value assets in the country. Valuation standards are imperative in fostering the development agenda and globalization with a wide usage across practitioners, taxation bodies, Government, Business Agents, Real estate, investments, bilateral agreements, financial markets, procurements and acquisitions, Project Affected Persons (PAPs), contracts among others. The need for development of National Valuation Standards, guidelines and manuals in the Country is therefore paramount. To this end, IRPV in liaison with the Regulatory Council and Ministry of Environment will engage a Consultant firm to undertake the development of National Valuation Standards and guidelines/manuals that support the consistent application of the International Valuation Standards (IVS) in Rwanda.

1.3. Scope

The scope of work is as follows:

1. Undertake in-depth and breadth analysis of theory and practice of Valuation function/ profession in Rwanda
2. Critically evaluate the applicable legal and policy frameworks governing Valuation in Rwanda.
3. Review and analyze at least 5 tailored National valuation standards and guidelines/manuals preferably in East Africa, West Africa, Southern Africa and in other jurisdictions.
4. Carry out detailed stakeholder engagement. IRPV will guide the Consultant on the relevant stakeholders to engage.
5. Consult widely the IRPV, Regulatory Council and Line Ministry from time to time.
6. Carry out critical evaluation of International Valuation Standards.
7. Prepare draft valuation standards and guidelines/manuals and subject them for review and validation by wide stakeholders.
8. Consult International Valuation Standards Council for review and comments. Evidence of this consultation and engagement must be provided.
9. Produce authorized final report of well-written and comprehensive valuation standards and guidelines/manuals consistent with the International valuation standards and format. The guidelines/manuals for different assets valuations such as mineral valuation, natural resources valuation, plant and machinery valuation, business valuation etc and for different purposes such as; expropriation, mortgage/secured lending, taxation etc will be developed and prepared in details for clear guidance on such valuation practice.
10. Capacity building and knowledge transfer on the usability of the developed Standards

2.0 Eligibility Requirements

The consultant will be selected based on the following requirements:

1. Valid practicing Certificate
2. Valid trading license
3. Valid Tax clearance certificate
4. Certificate of company incorporation or Registration
5. Joint venture/association agreement fully signed by both parties in case of a joint venture
6. General Experience of the firm of at least ten (10) years in undertaking large scale land assignments and the firm MUST have proven experience of at least ten (10) years in Valuation practices.
7. The firm MUST provide evidence of collaboration with International Valuation Standards Council (IVSC) or any other recognized Valuation standard setters
8. A foreign firm MUST engage a Domestic firm/Individual Valuer to enter into a joint venture to leverage the expertise and qualifications. Evidence of partnerships is a requirement.
9. Presence of skills among the consultant’s personnel and in adequate numbers in the following areas:

Team Composition

3.0 Evaluation Methodology and Criteria

Proposals will be evaluated on the following criteria:

• Technical proposal (80%)
• Financial proposal (20%)

4.0 Time Frame and Expected Deliverables

The duration of the assignment will be 6 Months starting from the date of the signature of the contract between IRPV and Consulting Firm.

The expected deliverables of the consultancy are as follows:

The consultant Firm is expected to provide a detailed practical time frame for each of the above deliverables in their submission of the technical proposal for better implementation and timely completion of the assignment.

5.0 Payment Modalities

How to apply

IRPV invites eligible and interested companies to submit their applications by email on info@irpv.rw, including a technical proposal, financial proposal, copy of company registration certificate, CVs mentioning the profile of company personnel, before 5:00 PM, 25^th July 2024.

Done at Kigali, 24^th June 2024

John MUGISHA

Chairperson, Board of Directors