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Consultant of Business Development Services (BDS) with the Development of a Strategy for Embedding Microfinance into Sanitation Programs in West Java, DKI Jakarta & Tangerang (WJDT)

Wednesday, 14 October 2020
Deadline Tuesday, 3 November 2020
Contact Info iuwash_plus_procurement@dai.com

RFP-REQ-JAK-20-0014
Consultant of Business Development Services (BDS) with the Development of a Strategy for Embedding Microfinance into Sanitation Programs in West Java, DKI Jakarta & Tangerang (WJDT)
Issued Date : October 14, 2020
Title: RFP-REQ-JAK-20-0014
Consultant of Business Development Services (BDS) with the Development of a Strategy for Embedding Microfinance into Sanitation Programs in West Java, DKI Jakarta & Tangerang (WJDT)

Issuing Office & Email/Physical Address for Submission of Proposals:
IWPLProc_InboxJKT@dai.com
Indonesia Urban Water, Sanitation and Hygiene (IUWASH Plus) Jakarta , Mayapada Tower 1, 10th Floor, Jl. Jend. Sudirman Kav. 28, Jakarta 12920 ;
Pre bid Meeting : October 26, 2020 at 13.30 pm
Please send your expression of interest to join pre bid by sending email to :
Iuwash_plus_procurement@dai.com
Link will be informed after confirmation of attendance email send before October 25, 2020
Deadline for Receipt of Proposals: November 3, 2020 at the latest 16. 00 p.m.
Proposal send by email to :
Soft copy to IWPLProc_InboxJKT@dai.com

Anticipated Award Type: PO / Contract
Basis for Award: An award will be made based on the Trade Off Source Selection process.
The award will be issued to the responsible and reasonable offeror who provides the best value to DAI and its client using a combination of technical and cost/price factors

Background
The USAID Indonesia Urban Water, Sanitation and Hygiene, Penyehatan Lingkungan Untuk Semua (IUWASH PLUS) program is a five-a-half-year initiative designed to assist the Government of Indonesia (GOI) in increasing access to water supply and sanitation services as well as improving key hygiene behaviors among urban poor and vulnerable populations. USAID IUWASH PLUS works with governmental agencies, the private sector, NGOs, communities and others to achieve the following “high level” results:
1. An increase of one million people in urban areas with access to improved water supply service quality, of which at least 500,000 are from the poorest 40% of the population (also referred to as the “Bottom 40%” or “B40”), vulnerable groups or Indonesia’s eastern provinces; and
2. An increase of 1,100,000 people in urban areas with access to safely managed sanitation
To ensure that improvements in access to WASH services are sustained, USAID IUWASH PLUS is guided by a development hypothesis that focuses on strengthening service delivery systems, so they can more effectively reach the poorest and most vulnerable segments of the population. In order to achieve this at scale, the program undertakes activities through four interrelated components, including: 1) improving household WASH services; 2) strengthening city WASH institutional performance; 3) strengthening the WASH financing environment; and 4) advancing national WASH advocacy, coordination and communication. In support of these components, USAID IUWASH PLUS also implements a Local Sustainability and Innovation Component (LSIC) that is designed to stimulate WASH innovations that strengthen community, private sector and government WASH service provision.

A. Activity Background
Within the framework of Sanitation Marketing in the West Java, DKI Jakarta and Kabupaten Tangerang (WJDT) Region, USAID IUWASH PLUS plans to collaborate with a local organization as Business Development Services (BDS) that will support on WASH business in WJDT. This BDS will work in three locations, Kabupaten Karawang, Kabupaten Bogor and Kota Depok.
Open defecation (OD) in Indonesia is still a big problem as the Minister of National Development Planning/Head of BAPPENAS indicated that 25 million people in Indonesia is still practicing open defecation (February 2019, UNHAS Makassar). According to the STBM Monev Data of Ministry of Health, West Java is the province with the highest number of open defecation compared to other provinces, reaching 2.4 million families or 17.94% of the total households in West Java. Meanwhile at city/district level, there are 67.079 households in Kabupaten Karawang, 9963 households in Kota Depok, and 527.924 households in Kabupaen Bogor practicing ODF. This indicates that the sanitation sector in these three regions is still a challenge.
While there is a need to comply with the requirements in the SDG 2030 Section 6 on “Safe Drinking Water and Sanitation”, the government does not have adequate funding to solve all of these sanitation problems and need to embrace others for assistance. A sanitation marketing strategy is one of the solution and USAID IUWASH PLUS hope that the government will buy-in to this approach.
USAID IUWASH PLUS has analyzed the sanitation market segmentation in four kota/kabupaten in WJDT (Kota Bekasi, Kota Bogor, Kabupaten Tangerang and DKI Jakarta) and reveals that there is a need to develop a complete sanitation marketing plan not only for these kota kabupaten but also to Kabupaten Karawang, Kabupaten Bogor and Kota Depok and conduct capacity building to sanitation businesses to provide safe sanitation facilities to target communities in order to reduce the number of households practicing open defecation. As the target communities might be the poor community (below quintile 40) or middle class community and cannot afford to install safe sanitation system, the BDS needs to understand the demand for sanitation microfinance and existing access to microfinance services and understanding where public intervention is most needed to boost the market. Microfinance can only be embedded into sanitation activities where and when demand for microfinance for sanitation is already identified.
Another problem with sanitation marketing is that we do not understand the reason for market encouraging sales from sanitation entrepreneurs and MFIs in each area that maybe low demand for sanitation microfinance, reluctance of microfinance sector to engage with the sanitation sector, financial exclusion, etc. Identifying these factors, the BDS requires in-depth local research to MFIs and sanitation entrepreneurs to understand where the market failures lie in the national context, i.e. which factors are contributing to the slow take-up of sanitation microfinance and furthermore, how to solve all the sanitation marketing problems.
USAID IUWASH PLUS will use the full and open competition mechanism to select BDS as an institution. IUWASH PLUS Microfinance and Business Enabling Specialist (MBES) and supported and coordinated by the Sanitation Marketing Team of WJDT USAID IUWASH PLUS will oversee the BDS progress of activities of the program.

B. Objectives
The objectives of this scope of work are to:
1. Analyze the sanitation market segmentation in the three kota and kabupaten of Kabupaten Karawang, Kabupaten Bogor and Kota Depok, map the market target areas for sanitation micro credit distribution.
2. Assess the supply chain of sanitation marketing; and
3. Develop the Business Plan for a Market Based Sanitation Implementation program in the three kota/kabupatens.
4. Assess the competence requirements of sanitation entrepeneurs capability and improve their capacity.
5. Provide sanitation development loans to target beneficiaries to have decent sanitation system

C. Proposed Activities
The selected BDS will carry out series of activities among others and not limited to the following:
1. Desk Review and Preparation
Review all documents developed by IUWASH and current IUWASH PLUS program and these include, but are not limited to:
a. Mentoring documents that have been implemented to MFI and WE
b. Data that relates to market mapping.
2. Analysis of the sanitation market segmentation in the three kota and kabupaten of Kabupaten Karawang, Kabupaten Bogor and Kota Depok and map the market target areas for sanitation micro credit distribution.
3. Assessment Supply Chain of Sanitation Marketing
a. Assess the local market for household-level sanitation products and services targeted that meet national standards (SNI) i.e. hardware and sanitary shops;
b. Assess the availability, technical competence, business acumen of local:
• Micro-scale construction-related businesses;
• Small and medium-scale construction-related businesses;
• Microfinance Institutions (MFIs);
• Other businesses that will complement the sanitation business in the chosen area.

4. Needs assessment
a. Business development needs and requirements to help the sanitation entrepreneurs grow and sustain.
b. Assess the capacity building and technical assistance that must be provided to each identified business provider. Capacity building that can be provided is training and technical assistance in developing business plans regarding identification of marketing areas and prospective customers, product marketing, product development, pricing, business development, financial management, after sales services and technical development of septic tanks.
c. Strengthen the sanitation market, by strengthening businesses management to entrepreneurs, such as masons, building material producers, sanitation business associations, banks and microfinance institutions so that they are able to provide services in the sanitation sector in a sustainable and independent manner.

5. Business Plan Development
a. Must have a sustainability plan for developing Market Based Sanitation in the three locations; and
b. The business plan must explain: general description of the area, promotion of sanitation entrepreneurs, profiles and data of existing sanitation entrepreneurs, background of technical assistance, the need for capacity building of each sanitation entrepreneur, training plans and technical assistance to sanitation entrepreneurs and sustainability approach for WASH program .

Required Qualifications
BDS candidates must attach a Company Profile showing that they:
1. Having experience in analyzing sanitation market segmentation
2. Having experience in assisting small and micro entrepreneurs for the marketing sector, business development, financial management and product sales
3. Having experience in Micro-scale construction-related businesses, Small and medium-scale construction-related businesses, and Microfinance Institutions (MFIs) management; and Other businesses that will complement the sanitation business in the chosen area;
4. Having experience in providing training and technical assistance in the aforementioned sectors to small and micro entrepreneurs
5. Have a vision and mission to provide technical assistance to entrepreneurs in the WASH sector in the USAID IUWASH PLUS assisted area within the framework of implementing Market Based Sanitation
6. Having experience in developing Market Based Sanitation in Indonesia

The BDS must also have experienced specialists in the training and technical assistance sectors for small and medium entrepreneurs. The specialists are required to attach their respective Curriculum Vitae.

Kindly send your quotation in Attachments (attached) before the closing date November 3, 2020

Attachment

RFP REQ JAK 20 0014 BDS MFI

Attachments for RFP REQ JAK 20 0014 BDS MFI

Attachement A – SOW for FPPO BDS MFI-Oct

Form 3.9 – Attachment D – Instructions for Obtaining a DUNS Number – DAI’S Vendors, Subcontractors

Form 3.10 – Attachment E – Self Certification for Exemption from DUNS Requirement

Available in idIndonesia (Indonesian)