See full Terms of Reference here

Transcription

See full Terms of Reference here
JAMAICA
JA-CC2046: IMPLEMENTATION OF BUSINESS CLIMATE REFORMS IN JAMAICA
ACCESS TO CREDIT FOR PRODUCTIVE DEVELOPMENT
TERMS OF REFERENCE
End of Project Evaluation and Preparation of Draft Project Completion
Report
I.
BACKGROUND
To reverse the contraction of the Jamaican economy and to spur growth, there is an
urgent need to improve the nation’s overall competitiveness and stimulate private
sector growth. Many businesses, particularly SMEs, find it difficult or impossible to
obtain loans for investment and business expansion. The Jamaican financial sector
is operating at sub-optimal levels with domestic credit being less than 35% of GDP 
well below acceptable international benchmarks. This points to difficulties in
accessing credit and is reflective of inadequate funding for investment and
entrepreneurial activities and often is manifested by the levying of usurious interest
charges on those debtors deemed to be marginal and who often lack the requisite
collateral recognized by the formal financial market. Hence there is urgent need to
effect reform of the collateral framework – known as secured transactions.
A secured transactions framework allows borrowers to pledge movable property as
security for a loan in a manner that removes ambiguity regarding the property that
has been pledged, to whom the property has been pledged, and gives the lender
the right to repossess these assets speedily in the event of payment default.
Security interests are noted on a public electronic registry which substantially
reduces the transactions cost of registering collateral interests, ultimately leading to
a lowering of interest rates. It is anticipated that the implementation of a modern
Secured Transaction Act based on four fundamental principles  to ensure that the
creation of security in movable property is simple, flexible and inexpensive and
cannot readily be challenged; clarify the rights of competing creditors; use modern
technology and simple design to share information; and enforce property rights
efficiently

should give significant benefits to small and micro financing
institutions, in relation to lease financing and general access to credit.
Insolvency reform is also necessary to further encourage entrepreneurship.
Bankruptcy and Insolvency in Jamaica are primarily governed by the Bankruptcy Act
and the Companies Act, and other relevant legislation including the Building
Societies Act, Industrial and Provident Societies Act, the Friendly Societies Act and
the Financial Institutions Act; there is an absence of one piece of legislation which
consolidates all the rules and requirements. Furthermore, an Absolute Order in
bankruptcy can remain un-discharged for a lifetime and can destroy the debtor’s
business or his prospects of engaging in any further business activity or having
legitimate access to credit. This stifles entrepreneurship and penalizes failure. This
is undesirable as business failure may not be due to the lack of business acumen
but rather may be a result of exogenous shocks or changing market conditions.
Another constraint to entrepreneurship in Jamaica is the business approval process
which involves several steps and takes considerable time to complete. Through the
action of the National Competitiveness Council, consensus was reached on
implementing a “business registration form” to capture all the information required
by all the agencies involved in the business approval process. The business
registration form was developed by the Companies Office of Jamaica. The aim of the
form is to collect all information required to be provided to the various agencies by
the business owner at one point.
The Government of Jamaica has entered into a Technical Cooperation (TC)
Agreement (JA-CC2046) with the Inter-American Development Bank under the
Compete Caribbean Program to address these constraints. 1 The project will (i)
support the drafting and consultation on key legislation to strengthen the enabling
environment for private sector development, (ii) to support the establishment of a
collateral registry, (iii) support implementation of a Business Registry Superform
and (iv) implement a public awareness program around the three reforms. The
value of this TC is $500,000. The project is executed by the Compete Caribbean
Project Coordinating Unit (PCU) located in Barbados. Implementation of project
activities is coordinated by the Ministry of Industry, Investment and Commerce
through JAMPRO, with the support of the IDB Country Office in Jamaica.
CONSULTANCY OBJECTIVE(S)
In keeping with the Plan of Operations for JA-CC2046, an independent end of project
evaluation is to be conducted three months after project execution or on
1 Compete Caribbean is a Caribbean private sector development programme jointly funded by the
Canadian International Development Agency (CIDA), the United Kingdom Department of International
Development (DFID) and the Inter-American Development Bank (IDB). The ultimate goal of this
Program is to contribute to the increase in the standard of living and quality of life, and the
enhancement of the competitiveness of the 15 independent CARIFORUM countries. Specifically, the
Program will increase: (i) donor harmonization and coherence, equity and sustainability of national and
regional private sector strategies; (ii) the efficiency and effectiveness of Caribbean governments to
promote a competitive, growth-oriented business and investment climate; and (iii) innovation,
productivity, value added production, sales and sustainability in key Caribbean clusters and value
chains, and product sophistication, productivity and exports of individual firms.
disbursement of 95% of Compete Caribbean’s funds, whichever comes first. The
objectives of this consultancy are (i) to conduct an End of project evaluation and
prepare the report and (ii) contribute to the preparation of the Project Completion
Report, using the template provided by Complete Caribbean.
The End of project evaluation will examine and assess the performance of the
project, and take into consideration the project’s relevance, effectiveness, efficiency
and sustainability; and identify lessons learned.
The evaluation’s main goals are to:

Determine the extent to which the project has fulfilled, or is expected to fulfil
the specific objectives of (i) Strengthening the legislative framework to
improve access to finance; and (ii) streamlining the business registration and
bankruptcy process in Jamaica in order to improve the business climate.

Assess the extent to which the project efficiently met the performance
targets and results as established in the Project’s Results Framework and
satisfied the needs of stakeholders.

Identify any lessons learned that could be applied to introducing business
climate legislation, a secured transaction framework and collateral registry,
and simplified business registration process in other Caribbean territories.
Specifically, the evaluation will answer the following questions and address the
following issues:
a.Relevance, project context and review of assumptions:
 Was the project design adequate to address the challenges identified in Plan
of Operations for JA-CC2046? The evaluation will make specific reference to
the baseline studies to undertake a diagnostic assessment of the current
status of SME financing in Jamaica viz a viz the capacity of SME’s to access
finance; the availability and structure of financial instruments and
institutions; and an assessment of policy and institutional interventions
needed to fuel SME growth and development, and the extent to which the
project was able to address the constraints identified within the ambit and
available resources of the project.

Identify where appropriate any changes in the legal, political, economic or
institutional context which may have had an effect on project implementation
as originally designed.

Review the extent to which the project was aligned with the priorities of each
of the key stakeholders, namely the Ministry of Industry, Investment and
Commerce, the National Competitiveness Council, Financial Institutions,
Micro-finance institutions (MFIs) and MSMEs.
b. Achievement of projected performance indicators and targets
(effectiveness):
 To what extent were the target outputs and outcomes realized? To what
extent do stakeholders believe that the reforms will enhance the business
climate and promote entrepreneurship in Jamaica?

To what extent did the project’s design, approach, and methodology compare
with global best practice to introduce a secure transactions framework?

To what extent have stakeholders’ expectations been met and there is
satisfaction with the roll out and operation of the collateral registry? In the
case of the collateral registry the expectations and utilization of the registry
by financial institutions and MFIs should be specifically assessed.

To what extent have stakeholders expectations been met, and there is
satisfaction with the roll out and operation of the Business Registration
Superform? The expectations and utilization of the Superform by MSMEs and
the roll out by the Companies Office should be assessed.

To what extent was the public awareness campaign successful in generating
interest and utilization of the collateral registry and the Superform?

Assess the extent to which any changes/modifications to the project were
justified and are contributing to meeting the project objectives. Identify any
unanticipated results.

To what extent were gender equality considerations incorporated into the
project?

Review the extent to which the project is synergistic with, or overlaps similar
programs supported by the international development community. If the
overlap is positive (e.g., synergistic, what might be the impact of such
synergies?). If the overlap is negative (e.g., duplicative), identify lessons
learned to reduce the potential for duplication in similar projects.

To what extent did this project serve to catalyze or complement other private
sector or business climate reform efforts?
c. Results in terms of outputs achieved vis-à-vis projected targets
(efficiency):



Identify any internal and external factors that have positively or negatively
influenced the ability of the PCU and the Ministry to meet projected targets or
project outcomes in a timely and cost effective manner.

Assess the extent to which project expenditures are in line with initial
budgetary plans. Assess the extent to which any changes/modifications to
the budget were justified.

Determine the extent to which the anticipated Counterpart Contributions
from the Government of Jamaica were provided and utilized as planned.
Lessons learned
 Identify any lessons learned and any potential areas for improvement that
can be applied to introducing a secured transaction framework and collateral
registry in other Caribbean territories, including lessons related to public
awareness raising and stakeholder consultations.

Identify any lessons learned and any potential areas for improvement that
can be applied to introducing and streamlining simplified business
registration, including lessons related to public awareness raising and
stakeholder consultations.

Identify any lessons learned and any potential areas for improvement that
can be applied to business climate reforms requiring legislative changes.

Identify any lessons learned with respect to donor harmonization and
collaboration.
Sustainability
 Assess the extent to which there is uptake in utilization by the banks and
micro-finance institutions. If it is determined that the Banks and other MFIs
have not demonstrated sufficient uptake of the registry to impact access to
finance, provide recommendations to for specific actions to increase this
uptake.

Assess the extent to which the operation of the collateral registry will be
sustained over time.

Assess the extent to which there is need or interest by other stakeholders,
through technical or financial support, to fill any gaps which may exist, to
continue the business climate reforms in the areas covered by this project.
METHODOLOGY
The evaluation methodology must at a minimum include the following activities.
The Consultant may propose additional or alternate methods of conducting the
evaluation and elaborate these in the workplan.
a) Review of project documentation. The Consultant will review as necessary,
available archived material to be provided by the Compete Caribbean PCU
and the Counterpart Agency (Ministry of Industry, Investment and Commerce
and affiliated agencies).
Documentation will include at a minimum,
background material used in project preparation, approved project
documents, Consultants’ deliverables, legislative documents, project
monitoring documents, disbursement reports, and progress reports.
b) Review of any other relevant information that may be publicly available.
c) Field visits and interviews. At a minimum, the Consultant will undertake the
following:
i.
In situ visits to the Ministry of Industry and Commerce, JAMPRO (the
local counterpart responsible for project implementation), the
Companies Office and other relevant public sector stakeholders; and
the Team Leader at the IDB Country Office in Kingston, Jamaica.
ii.
Verification of the operation and functionality of the collateral registry
iii.
Interviews with Compete Caribbean and IDB staff involved in the
design and execution of the project
iv.
Interviews with a range of relevant private sector stakeholders
including private sector groups representing financial institutions,
microfinance institutions, and MSMEs. The consultant will propose a
methodology provide evidence of (i) the extent to which financial
institutions have adopted movable financing and (ii) how this adoption
has translated into improved access to finance for SMEs and the extent
to which the increased access to financing has translated into any
impacts on their business operation/performance.
v.
Interviews with a sample of Consultants and/or technical assistance
providers who were hired by the PCU for project execution.
vi.
The Consultant will propose other stakeholder consultations as deemed
appropriate
d) Collection and analysis of data from other stakeholders or interested parties
should also be considered.
SCHEDULE AND DELIVERABLES
The Consultant will be responsible for submitting the following deliverables:
Inception meeting: Within 5 working days after the awarding of the contract, the
Consultant will participate in an inception meeting(s) for the consultancy services
with representatives of the Bank. The Consultant will be provided with preliminary
access to project documentation to facilitate the preparation of the workplan.
Workplan: Within 5 working days following the inception meeting, the Consultant
will prepare a draft workplan to conduct the end of project evaluation. The
workplan will include (i) an elaboration of the evaluation methodology, data
collection and analysis approaches, (ii) a preliminary list of persons to be consulted,
(iv) timelines for site visits and interviews and all other evaluation activities, and (iv)
deadlines for submission of draft and final reports. The workplan should be
presented to the PCU for review and approval.
Draft End of Project Evaluation Report: Within 3 weeks after the approval of
the workplan, the Consultant will present the draft report.
Final End of Project Evaluation Report: Within 2 weeks after review and
feedback from Compete Caribbean, the Consultant will present the final evaluation
report.
Draft PCR: Within 1 week of approval of the evaluation report, a draft of the PCR
will be prepared utilizing the template provided and under the guidance of the
Project Team Leader and Compete Caribbean PCU.
All reports are to be submitted in MSWord and in English, and presented in a format
approved by the IDB.
QUALIFICATIONS:
The Consultant should possess these qualifications:
Education and Experience
• Undergraduate degree(s) in Business Administration, Economics, Finance, Public
Administration, Public Policy, Statistics, Law, International Development or other
relevant field. A master’s degree or higher in a relevant field is desirable.
• At least 5 years of experience in evaluating technical assistance or projects
(preferably in Private Sector Development) financed by international financing
institutions or bilateral agencies.
• In-depth knowledge of private sector development and preferably business
climate reforms and/or access finance issues. Prior knowledge and experience
with the establishment or operation of collateral registries would be highly
desirable.
• A good understanding of the Caribbean region. Previous evaluation assignments
in the Caribbean would be desirable.
• Professional experience or training in M&E processes of international
development agencies, such as the logical framework, monitoring and evaluation
frameworks and other performance monitoring tools.
• The ability to work independently and manage multiple tasks effectively.
Excellent written and oral communication skills are required, including the ability
to synthesize key issues and draw lessons learned.
• Fluency in is English required.
SUPERVISION
The technical and administrative responsibilities of this consultancy will be
coordinated by Navita Angunu of the Jamaica Country Office, Inter-American
Development Bank. Support in the technical responsibilities of this consultancy will
be provided Christine Scott Dunkley, Consultant (IFD/CTI) and Monitoring and
Evaluation Specialist for Compete Caribbean. Administrative responsibility of this
consultancy will be coordinated by Michael Hennessey, Operations Senior Associate
(CTI/CBA) and Operations Coordinator of Compete Caribbean.
SCHEDULE OF PAYMENT
All travel-related costs related to this Consultancy will be included in the contract
between the Consultant and the Bank.
The Consultant will be paid in three lump sum payments as follows:
(i)
(ii)
(iii)
30% on delivery of the workplan;
30% on submission and approval of the draft report; and
40% on submission and approval of final reports.
CHARACTERISTICS OF THE CONSULTANCY
CONSULTANCY CATEGORY & MODALITY: Product and services consultancy
CONTRACT DURATION: 17 days non-consecutive between signing of contract and
delivery and acceptance of draft PCR report.
PLACE(S) OF WORK: Consultants place of residence and Jamaica.
Payment and Conditions of Employment: If the work will be carried out at Bank
headquarters in Washington D.C. Remuneration will be determined in accordance
with Bank regulations and criteria. The Bank will additionally contribute toward
travel and moving expenses, if applicable. If a candidate is not a citizen or resident
of the United States, the Bank will apply for a G-IV visa from the consulate of the
United States in the candidate's country of origin. If a candidate cannot obtain a
visa to work at the IDB the contractual offer will be rescinded.
Consanguinity: Individuals with relatives working for the IDB within, and including
the fourth degree of consanguinity and the second degree of affinity are not eligible
for employment as staff, Consultants, or contractors through firms or agencies.
Candidates must be citizens of a member country of the Inter-American
Development Bank.