• Terms of Reference

  Provision of Consultancy services to Expanding Access to Commercial Financing for Water, Sanitation, and Hygiene (WASH) Sector in Rwanda

  1. Introduction 

  Water For People is an international non-profit organization that aims at improving access to safe drinking water, adequate sanitation, and hygiene education in developing countries. Water For People works locally, nationally, and globally to influence governments’ water and sanitation policies to serve the interests of the needy. Water For People program in Rwanda began in 2008, with an overall objective to help all communities, schools, and healthcare facilities gain access to sustainable water, and sanitation services as well as hygiene behaviour change. Its interventions cover Rulindo, Kicukiro, Gicumbi, Karongi, and Gisagara Districts of Rwanda. Water For People also is implementing the Isoko y’Ubuzima Project which is a five-year Rwanda Water, Sanitation, and Hygiene (WASH) activity. The activity is being executed by a consortium led by Water For People and includes IRC, CARE International, VEI, and a local partner African Evangelistic Enterprise (AEE) in Rwanda. The project operates in 10 districts namely, Rwamagana, Kayonza, Ngoma, Kirehe, Nyagatare, Ruhango, Nyanza, Nyamagabe, Ngororero, and Nyabihu. Water For People has also secured funds from UNICEF and The Stone Family Foundation (SFF) to enhance financing for water, sanitation, and hygiene services in Rwanda. 

  2. Background and context 

  Water and Sanitation are at the center of the United Nations’ determined agenda with a diverse sector goal that envisions universal, sustainable, and equitable access to safe water and sanitation. Rwanda has committed itself to reaching very ambitious targets in water and sanitation to achieve basic targets by 2024 and reach SDG#6 (safely managed water and sanitation services) by 2030. SDG 6 states that drinking water from an improved water source located on-premises, available when needed, and free from faecal and priority chemical contamination is the most basic human need for health and well-being.

  The importance of adequate WASH services as drivers for social and economic development, poverty reduction, and public health is fully recognized in Rwanda’s flagship policy documents and related political goals. 

  Currently, an estimated 45% and 39% of Rwanda’s population do not have access to basic water supply and basic sanitation services, respectively (DHS 2019/20). Some 75% of Rwanda’s households did not have a hand-washing facility with soap and water in 2020. One of the key challenges to increasing access to water and sanitation services in the country is the lack of adequate funding. 

  It has been estimated that Rwanda needs an annual investment of at least RWF 249 billion/196 million USD per year to achieve the national water, sanitation, and hygiene (WASH) targets of 100% basic coverage by 2024 and RWF 400 billion/315 million USD per year to achieve the WASH SDG (safely managed) targets by 2030[1]. Considering the current WASH sector allocation of about RWF 80 billion/63 million USD per year, there is a gap of around RWF 169 billion/133 million USD and RWF 320 billion/252 million USD per year required to achieve the National Strategy for Transformation and the SDG targets, respectively. 

  Given the huge WASH sector financing gaps, there is a need for the promotion of innovative financing mechanisms using private sector commercial financing to improve WASH services in Rwanda, in line with the recommendations of Rwanda WASH Sector Financing Strategy-2022. In this regard, UNICEF, Water for People, and partners have been advocating with the Government and local banks on the establishment of financial instruments to enable individuals and private businesses to access loans for the scale-up of WASH services in Rwanda. Several financial institutions have shown interest in launching financial instruments, but these initiatives have not progressed further, mainly due to a lack of adequate understanding of the financial landscape in the sector, and inadequate capacity of the financial institutions and private entrepreneurs. For example, Water For People in partnership with one of the local commercial banks set up a limited loan guarantee fund to catalyze lending to Water and Sanitation Private entrepreneurs. Our observations was that banks experienced insufficient liquidity which results into high financial charges, and high equity contribution for private entrepreneurs. It remains unclear whether expanding the guarantee represents the best mechanism for scaling lending to the WASH sector as well as creating a sustainable catalytic financing mechanism that is aligned with local market conditions. 

  It is against the above background that Water for People, with the financial and technical support of UNICEF and SFF and in collaboration with WASAC Group Ltd and MININFRA, would like to hire a strong and capable consulting firm to conduct a comprehensive WASH financing study and undertake capacity building for different stakeholders to enhance commercial financing for WASH sector in Rwanda. 

  3. Objectives of the study 

  The main objective of the consultancy is to build the local capacity for mobilisation of private for enhancing WASH service delivery in Rwanda by (i) undertaking a WASH sector finance landscaping study in Rwanda; (ii) designing appropriate WASH loan products; and (iii) building the capacity of financial institutions and WASH private businesses/entrepreneurs. The outcome will contribute to catalyzing significant lending to private sector enterprises in WASH sector and households and closing the WASH financing gaps to achieve universal access to water and sanitation in Rwanda.

  4. Consultancy Services Overview 

  Water For People Rwanda is seeking an experienced consulting firm (hereinafter referred to as “Consultant”) to complete a high-level multiple-stage assignment on WASH financing that comprises the following. 

  • Water Sanitation and Hygiene Sector Finance Landscaping assessment to address the knowledge gap required to build the business case for financial institutions to engage in Water Supply and sanitation (WSS) SME lending;
  • Designing appropriate digitized WASH loan products for WASH businesses, entrepreneurs, and households; and
  • Capacity building for financial institutions and WASH sector businesses

  The consultancy will be undertaken in three phases as per the below details:  

  Distribution point for the experts:
• Qualification of personnel: 30% of total points
• General experience: 10% of total points
• Experience in the field of expertise: 30% of total points
• Specific experience in similar works: 30% of total points 

Only bidders who get 80% marks and above will go to the next stage. 

The selected bidder will be contractually required to comply with Water For People’s Vendor Code of Conduct https://www.waterforpeople.org/Vendor-Code-of-Conduct and will be required to deliver a Conflict-of-Interest Certificate prior to execution of the contract. The Conflict-of-Interest Certificate requires the disclosure of any potential or actual conflicts of interest with Water For People employees or their relatives including past, current or proposed business transactions, employment or offers of employment, or certain gifts or entertainment. Water For People will evaluate any disclosures of conflicts of interest; if Water For People determines it cannot waive or mitigate the conflict of interest it will result in the disqualification of the selected proposer.  

9. Copyrights 

Copyright of all material on assignment will be retained by Water For People in Rwanda. 

10. Rights reserved 

• Water For People reserves the right to cancel the entire procurement process without incurring any liability whatsoever. 
• Water For People reserves the right to amend any segment of the RFP prior to the announcement of selected candidates. 
• Water For People also reserves the right to remove one or more of the services from consideration for this contract should the evaluation show that it is in Water For People’s best interest to do so. 
• Water For People also may, at its discretion, issue a separate contract for any service or groups of services included in this RFP. Water For People may negotiate a compensation package and additional provisions to the contract awarded under this RFP. 
• Water For People reserves the right to debrief the applicants after the completion of the process due to the expected high volume of applications to avoid the compromise of the process. 

11. How to apply

If you feel qualified and interested in the assignment, please send your technical and financial proposals (separately) to: rwprocurement@waterforpeople.org no later than 13^th February 2024 at 11:59 pm with the following subject ”Bid proposal for consultancy services to Expanding Access to Commercial Financing for WASH Sector in Rwanda”. Hard copies and late submissions shall be rejected. A pre-bid virtual meeting is planned on 2^nd February 2024 at 2:00 PM Kigali time or 12:00 PM GMT. Those wishing to attend should send their e-mail address at rwprocurement@waterforpeople.org. However, attending the pre-bid meeting is not mandatory for bid submission.

Done at Kigali, on 22nd January 2024

Eugene Dusingizumuremyi

Country Director