TERMS OF REFERENCE

ICCO-MFC projects evaluation

  1. Program description

Description of the two cooperating parties

MFC is a grass-root network of 110 member institutions that play an active role in shaping the microfinance industry in the ECA region. Members range from banks, non-governmental organizations, social and commercial investors, to development institutions and international PVOs. All share an interest in microfinance, as providers of financial services, capital or technical assistance. MFC plays a catalyst role in bridging the market gap between dramatic unmet demand for microfinance services and the sector current offering through supporting development of a wide range of financial institutions, promoting microfinance among policy makers, regulators, formal banking sector and investors. It supports members in different country contexts - from EU member states, through fast-developing Caucasian states to the poorest countries in Central Asia.

ICCO is the interchurch organization for development cooperation. ICCO gives global financial support and advice to local organizations and networks that work for better access to basic facilities, initiating sustainable economical development and enhancing peace and democracy. ICCO also brings together enterprising people in the Netherlands and in developing countries. ICCO works closely with civil society organizations, including development organizations, educational organizations and businesses. In this way, we seek to improve living conditions for people in Latin America, Asia, Africa and Eastern Europe and help them be economically independent.

History of the cooperation

The co-operation between MFC and ICCO started in 2005 with a first joint project on capacity building of six young MFIs inKyrgyzstan and Tajikistan. Since then the number of joint projects grew and diversified. Parallel to the number of joint projects mutual understanding and trust has grown. Commonalities and complementarities were recognized in the mission, approaches and roles. After three years of project based co-operation both parties felt that the time was right for joining efforts at program level. In 2008, the dialogue on a wider co-operation agreement led to the decision to develop the co-operation framework and state wider intentions in a Memorandum of Understanding, while funding relationships would no longer be defined for each separate project but multi-annually and at program level.

Purpose of the cooperation

Joint efforts of ICCO and MFC within the co-operation framework aimed at:

  • developing more attractive offer to third parties and local stakeholders that also have a role to play in the development of fair and inclusive financial sectors in the region and to the benefit of the financially excluded;
  • stimulating further expansion of co-operation, based on joint analysis of contexts and dialogue focused on strategic issues and contents;
  • strengthening MFC’s and ICCO’s position in attracting additional funding beyond own resources.

Areas of cooperation

Both organizations co-operate on capacity building of retail financial service providers, strengthening Central Asian associations of MFIs, promoting social performance management and promoting enabling environment for the development of socially-oriented microfinance sector in Central Asia:

  • promoting enabling policies and regulation
  • strengthening support to meso-level organisations (associations of MFIs in particular)
  • capacity development of retail micro finance service providers
  • promoting social performance management
  • promoting financial literacy

Results of the programme

The results of the co-operationframework and some smaller projects also funded/supported by ICCO that are not part of the framework to be reached by end 2011 are as follows:

At partner output level

  1. By the end of 2011, two policy forums take place with high-level policy maker participation from each of the Central Asian countries. Follow-up activities in the region have been facilitated, resulting in introduction of at least four policy measures and/or removed regulatory constraints with relevance for financial inclusion.
  2. By end of 2011, four associations are actively promoting social and financial performance standards; sixteen (16) Central Asian MFIs will report on social indicators to the Mix Market.
  3. At least three Central Asian associations or networks of microfinance service providers are recognized sector leaders in their countries and provide at least two demand-driven services to members; at least two associations develop expertise in microfinance policy and become active in facilitating policy change. By the end of 2011 a savings strategy workshop will be conducted in Tajikistan. Next step will be recommended.
  4. By end 2011, a regional capacity building support function is established and able to meet at least 50% of the capacity development needs of small and medium sized MFIs against an affordable price.
  5. By end 2011, comprehensive financial education programmes are developed and running in at least three Central Asian countries. Twenty financial education trainers have been educated and are active providing financial education to low income people.
  6. Value Chain study is conducted to identify potential opportunities for ICCO/MFC to engage MFIs in the development of agricultural value chain financing in Kyrgyzstan and Tajikistan.
  7. By the end of 2011 analysis of the credit bureau information in Kyrgyzstan will be carried out with the view of determining the repayment performance of the population in Kyrgyzstan. Follow up strategies will be elaborated and provided to ICCO.

At outcome level

  1. At least twelve (12) small microfinance service providers in Central Asia will have increased their capacity and developed into ‘investment ready’ MFIs. By end 2011 these MFIs have combined number of at least 7500 active clients.
  1. Purpose of the evaluation

The objective of the evaluation is to assess the strengths and weaknesses of the implementation of the activities within the ICCO-MFC cooperation framework and the impact of its deliverables on the development of the inclusive financial sector in Central Asia.

It is envisaged that the evaluation will be conducted on two levels:

  • process evaluation – evaluate the achievement of outcomes in order to inform future projects on lessons learned and important steps in the process of the activity
  • impact evaluation – evaluate changes resulting from the achievement of project outcomes

Evaluation questions

MFC and ICCO seek to find responses to the following questions”

Process evaluation

  • To what extent have the agreed programme targets been achieved?
  • What challenges were encountered and how were they addressed?
  • How can the efficiency of the realization of the framework activities be improved?
  • How can ICCO funding be better leveraged in order to increase the outcomes?
  • What lessons can be drawn for future activities that will help to implement joint agenda more effectively?
  • How can powerful partnerships be established with third parties using ICCO - MFC joint competencies?

Impact evaluation:

  • What has been the program influence on the industry in Central Asia at micro, meso, macro levels?
  • To what extent did it contribute to the development of an inclusive and fair financial sector?
  • In which areas/aspects was the impact the strongest?
  • On which areas/aspects should future programmes focus in order to achieve the maximum impact?
  1. Evaluation methodology

The evaluation will be conducted through the combination of the following methods:

  • Desk review of the existing documents and reports related to the framework targets:
  • MFC annual reports for 2008-2010
  • Annual reports to ICCO on the framework and other projects for 2008-2010
  • Publications/materials related to achievement of the targets
  • Mix Market data (to evaluate the increase in number of reporting MFIs)
  • Consultations with MFC and ICCO staff in Poland and Kyrgyzstan
  • MFC staff in HQ in Warsaw, Poland and Central Asia Office in Bishkek, Kyrgyzstan
  • ICCO staff in the Regional Office in Bishkek, Kyrgyzstan
  • Face-to-face interviews with the representatives of the following types of institutionsin two countries (Kyrgyzstan, Tajikistan):
  • national associations: AMFI Kyrgyzstan and AMFOT Tajikistan
  • microfinance institutions
  • policy makers
  • Telephone interviews with project participants in Kazakhstan and Uzbekistan
  • Representatives of the national associations AMFOK Kazakhstan and NAMOCU Uzbekistan
  • Policy makers in Kazakhstan and Uzbekistan

As part of the consultant selection process, the evaluator will work out a detailed framework indicating how he/she will approach the evaluation questions. The evaluation framework will include the evaluation questions, sub-questions, indicators and judgment criteria to ensure validity, reliability and usefulness of this evaluation. An assessment of the proposed evaluation framework will be conducted as part of the selection process along with the consultant’s experience and expertise.

  1. Timeframe and expected outputs

It is planned that the evaluation will start on August 22nd 2011 and will end up on November 15th 2011.

The following outputs are expected:

  • Kick of meeting and visit at MFC – August 22nd, 2011
  • Desk study reviewing all the necessary and relevant documents and reports– August 2011
  • Interviews with stakeholders, including MFC and ICCO regional office staff and project stakeholders – August 22nd– September 23rd, 2011
  • Interim report – October 15th, 2011
  • Draft report presentation – October 30th, 2011
  • Final report submission – November 15th, 2011
  • Program evaluation briefing note write up – November 15th, 2011
  1. Consultant’s scope of work

The consultant is responsible for the following activities:

  • Preparation of the evaluation framework with specifications on the research questions, indicators and judgment criteria
  • Conducting desk review, face-to-face and telephone interviews with programme stakeholders
  • Analyzing the data and presenting results
  • Writing a report
  • Writing a brief note (up to 8 pages)
  1. Budget

The proposed budget for the assignment, including all the costs, shall not exceed 25,000 EUR gross.

  1. Consultant profile

An applying consultant should meet the following criteria:

  • At least 5 years of microfinance experience
  • Experienced in project/ program evaluation
  • Understanding and experience in capacity building of MFIs, MFAs, social performance management, being up to date with Social Performance global agenda
  • Experience in working with networks
  • ECA region knowledge
  • Qualitative and quantitative research skills
  • Report writing and communication skills
  • Excellent command of English; Russian language skills will be an advantage
  1. Applications

The following documents in English should be submitted to and by July 30th,2011 as part of the application process:

  • Consultant’s CV
  • Description of the proposed methodology/approach to carry out the evaluation and evaluation plan
  • Financial offer including consultant’s fee and all travel related expenses