1

REQUEST FOR EXPRESSION OF

INTEREST

For Selection of

Non-Governmental Organizations (NGO)/Micro-Finance

Institutions (MFIs)/ Private Entities for Implementation of:

IDCOL Biogas Program

Infrastructure Development Company Limited (IDCOL) UTC Building, Level – 16

8 Panthapath, Kawranbazar Dhaka-1215

April 2015

Infrastructure Development Company Limited (“IDCOL”)

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Section 1: Invitation to Participate in IDCOL Biogas Program

IDCOL is a public-private institution promoting economic development in Bangladesh by

encouraging private sector investment in infrastructure, renewable energy and other eco-friendly

sectors. IDCOL seeks applications from non-governmental organizations (“NGOs”)/ micro-

finance institutions (“MFIs”)/ private entities working mainly in Chittagong and Sylhet divisions

for selection as Partner Organizations (hereafter referred to as “POs”) under its Biogas Program.

To accelerate the dissemination of domestic biogas plants across Bangladesh for fulfilling basic

energy requirements in the rural areas as well as maintaining the fertility of soil, IDCOL intends to

select new POs from organizations mentioned above which have successful track records of doing

businesses and/or micro-credit operations, and are interested to participate in construction,

maintenance and financing of Biogas Plants.

IDCOL has a target of financing 100,000 biogas plants by 2018 of which 37,700 biogas plants

have been constructed under the program up to March 2015.

IDCOL will provide investment subsidy for and technical assistance, as applicable, sourced from

the KFW, World Bank and other development partners to POs for implementation of the project.

Interested organizations are requested to download complete application package from

http://idcol.org/ or http://idcol.org/home/notice . Application package may also be collected from

IDCOL office at a cost of Taka 500/- (non-refundable). Completed applications must be submitted

to the address mentioned below before 4:00 p.m. on 13 May 2015.

Applications will be evaluated by an independent evaluation committee in accordance with the

criteria described in the application package. Selected POs will be required to sign Participation

Agreements with IDCOL. IDCOL reserves the right to accept or reject any application without

assigning any reason.

Please contact:

Infrastructure Development Company Limited

UTC Building, Level – 17,

8 Panthapath, Kawranbazar, Dhaka-1215.

Phones: 9102171-8 (Ext. 265 or 252)

Fax: 8116663

E-mail: biogas@idcol.org

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An Overview of IDCOL Biogas Program

In Bangladesh the average cooking requirement per family per day is estimated to be 5 hours in

rural households. Each household needs about 3 tons of biomass per year for cooking purposes.

Assuming that 55 percent of households use biomass for cooking, about 40 million tons of biomass

fuel will be required every year for cooking alone. Supply of such large quantity of biomass can

have high pressure on the forest. Besides it will also cause indoor air pollution, as biomass smoke

is considered to be a major source of public health hazard, particularly to the poor and vulnerable

women and children. Use of agriculture residues and animal waste for cooking purposes rather

than for its use as an organic fertilizer has adverse effect on maintaining the soil fertility, thereby

reducing crop production and productivity of land.

In order to prevent further environmental and agricultural deterioration, it is imperative to promote

biogas as a sustainable and clean source of energy in Bangladesh. Biogas needs only cattle dung/

poultry droppings and water, which is commonly available in the rural households of Bangladesh.

The materials used for the construction of biogas plant are bricks, sands, aggregates, cement and

pipes, which are locally available. Any local literate person with some training can easily construct

a biogas plant. Most of the appliances necessary for the biogas plant can be locally produced in

Bangladesh. Operation and maintenance is very easy and any person with one day training can

operate and maintain the plant easily. Once plant is constructed, it can produce gas for more than

25 years without major problem. After 4 years of construction, the total investment on biogas plant

can be returned and after that one can get gas free of cost for years and years. The slurry, residual

product of biogas, can be used as very good organic fertilizer, which eventually maintain the soil

fertility and increase crop production. Biogas is a clean energy and reduces the carbon (CO2)

emission because it is smokeless which is very good for environment.

IDCOL with the support of SNV Netherlands, KFW and World Bank is implementing the IDCOL

Biogas Program from 2006 and constructed 37,700 biogas plants through its partner organizations

so far. This program has a plan to construct 100,000 biogas plants by the end of 2018.

A fixed dome design biogas plant will be promoted under this program. The design will be

basically two types; a) design for cattle dung and human excreta, and b) design for poultry

droppings. Each design will have 6 sizes of different capacities. These sizes will be 1.2, 1.6, 2.0,

2.4, 3.2 and 4.8 m3 gas production capacity. The gas produced from the last size will be used for

multiple houses whereas other sizes will be used for single household. Biogas is mainly used for

cooking but also can be used for lighting as well.

Recently IDCOL has also conducted a pilot project based on fiberglass biodigesters. IDCOL is

also in the process of conducting more pilot projects on prefabricated models.

Under this program IDCOL will provide BDT 13,500 as investment subsidy for brick cement

based models to the POs who construct biogas plants as per the specifications and standard set by

IDCOL. IDCOL will also extend loan to household through POs up to 80% of the cost of biogas

plants at a concessionary rate after deducting 15% down payment from household.

For detail information one can visit the website www.idcol.org or http://idcol.org/home/dbiogas

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Design of Biogas Plant (without dimension)

7.57.5

60.0

10.0

7.5

15.0

7.5

Slurry Pit

60.0

30.0

60°

62.0

10.0

40.0

4 cm dia pipe Main Valve

10.06.0

K

C5

RD

HD

HT

P2

P1

HB

C4

HHDH

HP

IDCOL Biogas Plant Model-Bangladesh(All dimensions are in centimeter)

DD62.0 DH

Fertilizer

Pit- A1

Fertilizer

Pit- A2

AA'

PLAN

60.0

60.0

Inlet for human waste

Digester

Hydraulic

Chamber

Inlet

tank

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DD=Diameter of the digester

RD=Radius of the digester

HB= Height of Bottom dome of digester

HD=Height of the cylindrical portion of the

digester

HT=Height of the Top dome of the digester

P1= Radius of curvature of top dome

P2= radius of curvature of bottom dome

HP= Height of outlet passage

DH= Diameter of the Hydraulic chamber

HH=Height of the Hydraulic Chamber

L= Length of the slurry pit

B= Width of the slurry pit

H=Height of the slurry pit

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Section 2: Information to NGO/MFI/Company

1. Introduction

1.1 The Infrastructure Development Company Limited (IDCOL) will select POs in

accordance with the selection criteria specified in section 3.

1.2 The NGO/MFI/Company is invited to submit a Business Plan for the assignment named

in section 3. The Business Plan will be the basis for selection of the PO and IDCOL will

ultimately sign Participation Agreement with the selected organization. Once the

agreement is signed, activities of the NGO/MFI/Company shall be governed according

to the terms and conditions of the Participation Agreement.

1.3 The PO may submit Business Plan with any programme target they reasonably feel they

are capable to implement. However, this target may later be annually revised as per

provisions of the Participation Agreement.

1.4 Notably, (i) the costs of preparing the EOI including visits to IDCOL are not reimburs-

able as a direct cost of the assignment; and (ii) IDCOL is not bound to accept any of the

Business Plans submitted.

1.5 Government policy requires that NGO/MFI/Company provide professional, objective,

and impartial services and at all times hold IDCOL’s interests paramount, without any

consideration for future work, and strictly avoid conflicts with other assignments or

their own corporate interests. NGO/MFI/Company shall not be hired for any assignment

that would be in conflict with their prior or current obligations to other Executing

Agencies, or that may place them in a position of not being able to carry out the

assignment in the best interest of IDCOL.

1.6 Without limitation on the generality of this rule, NGO/MFI/Company shall not be hired

for any assignment, which, by its nature, may be in conflict with another assignment of

the NGO/MFI/Company.

2. Clarification and Amendment of EOI Documents

2.1 NGO/MFI/Company may request a clarification of any of the EOI documents up to the

number of days indicated in section 3 before the Business Plan submission date.

2.2 At any time before the submission of Business Plans, IDCOL may, for any reason,

amend the EOI. IDCOL may at its discretion extend the deadline for the submission of

Business Plans.

3. Preparation of EOI Documents

3.1 NGO/MFI/Company is requested to submit the documents in English language.

3.2 In preparing the Business Plan, NGO/MFI/Company is expected to examine the

documents constituting this EOI in detail.

3.3 While preparing the Business Plan, NGO/MFI/Company must give particular attention

to the following:

(i) It is desirable that the majority of the key professional staff proposed be permanent

employees of the NGO/MFI/Company or has an extended and stable working

relationship with it.

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(ii) Reports to be issued by the NGO/MFI/Company as part of this EOI shall be in

English language.

3.4 Institutional capacity

(a) The institutional capacity of the NGO/MFI/Company should be described in

detail to adequately document the capability of the NGO/MFI/Company.

(b) The composition of the organization’s professional and managerial staff and type

of staff, their qualifications and the tasks that are assigned to each staff team

member should be described in the Annex to Business Plan.

(c) Curriculum Vitae (CV) of the Chief Executive Officer (CEO)/Executive Director

(ED) of the NGO/MFI/Company recently signed by the CEO/ED and the

authorized representative submitting the Business Plan. Key information should

include academic qualification, number of years working for the

NGO/MFI/Company and degree of responsibility held in various assignments

during the last five (5) years.

(d) Financial management capacity and efficiency should be described with the

Business Plan highlighting the financial situation as reflected in the audit reports.

To demonstrate the financial management capacity, the Audit report of the last

three financial years and bank transaction statement of the same period should be

included with the Annex to Business Plan.

(e) Organizational structure of the NGO/MFI/Company should be included in the

Business Plan in the Annex to Business Plan.

(f) Familiarity with the proposed working area should be described and its

documentary evidence should also be attached to the Business Plan. This will

include maintaining of a regular office during project implementation in the

proposed working area and working experience in the area in any field.

(g) Working experience with various government and non-governmental institutions.

Documentary evidence should be included in the Annex to Business Plan.

(h) Integrated community development activities undertaken by the

NGO/MFI/Company specifically in the field of credit, skill training, health, and

nutrition, social development activities etc. may be described. Documentary

evidence thereof should be included in the Annex to Business Plan.

4. Submission, Receipt, and Opening of Business Plans

4.1 The original Business Plan and Application Form shall be prepared in indelible

ink. It shall contain no interlineations or overwriting, except as necessary to

correct errors made by the NGO/MFI/Company itself. Any such corrections

must be initialled by the persons or person who sign(s) the Business Plans.

4.2 An authorized representative of the NGO/MFI/Company shall initial all pages of

the Business Plan.

4.3 The completed Business Plan and Application Form must be delivered at the

submission address on or before the time and date stated in section 3.

4.4 As soon as available the Business Plan will be opened by the evaluation

committee.

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5. Business Plan Evaluation

5.1 Any effort by the applicant to influence IDCOL in the IDCOL’s evaluation or

contract award decisions shall result in the rejection of the

NGO/MFI/Company.

5.2 The information provided in the Business Plan received will be enquired into

by IDCOL through various methods including physical inspection, if required.

5.3 The evaluation committee appointed by IDCOL as a whole and each of its

members individually, evaluates the Business Plans on the basis of the

eligibility criteria detailed in section 3.

6. Signing of Participation Agreement

6.1 Participation Agreement will be signed with the successful

NGO/MFI/Company.

7. Confidentiality

7.1 Information relating to evaluation of Business Plans and recommendations

concerning awards shall not be disclosed to the NGO/MFI/Company who

submitted the Business Plans or to other persons not officially concerned with

the process, until the winning NGO/MFI/Company has been notified that it has

been awarded the contract.

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Section 3: Eligibility Criteria for Biogas PO Selection

1. For Partner Organizations:

Private companies or NGOs or Micro-Finance Institutions that are interested to participate in Biogas

plant construction/maintenance under the framework and conditions of IDCOL Biogas Program are

welcomed. The selection criteria will be as follows:

Registered as company/NGO/MFI with mandate to be involved in the renewable energy business

Strong management and financial position.

Grassroots involvement in promotion of development activities and networking with local and

government institutions and having a well-established office.

Good business plan and long-term planning.

Technically trained human resources, preferably from local areas.

Good track record of services in the past.

Preferences will be given to those who have experiences in implementation of renewable energy

program and mainly working in Chittagong and / or Sylhet division.

Minimum equity is BDT 2,500,000

Minimum number of beneficiaries will be 5,000

2. Evaluation will be done based on the following distribution of marks:

Subject Points

A. Experience 30

i. Years of experience in conducting micro-finance programme

ii. Total amount of loan outstanding

iii. Total numbers of beneficiaries under micro-credit

2. Financial Performance 30

i. Equity

ii. Debt to equity ratio

iii. Cash collection ratio of principal and interest on current loan portfolio

calculated on a rolling twelve month basis

iv. After tax profit p.a. on revolving loan fund (RLF)

v. Debt service cover ratio

3. Institutional Capacity 20

i. Audit report findings

ii. Number and type of staff i.e. team composition and task assignments

iii. Academic qualification of Chief Executive Officer (CEO)

iv. Experience of CEO

v. Qualification and experience of proposed professional staff

4. Familiarity in the Programme Area 10

i. Working experience in the Chittagong and / or Sylhet division

ii. Working experience in the Programme Area

5. Linkage and Network 10

i. Working experience with various government or non-governmental

institutions

ii. Membership and networking with professional bodies

iii. Experience in integrated community development activities undertaken

by the NGO highlighting the credit activities, skill training, health,

nutrition, social development etc.

Total 100

3. The decision of the Selection Committee shall be final.

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Section 4: Application Form

Infrastructure Development Company Limited UTC Building (L 16-17 floor), 8 Panthapath, Kawranbazar, Dhaka-1215, Bangladesh.

Phone: 9102171-8, Fax: 880-2-8116663

E-mail: biogas@idcol.org Web: www.idcol.org

APPLICATION FORM FOR SELECTION AS PARTNER ORGANIZATION (“PO”)

Sl Subject Information

1 Name of the NGO/MFI/Company

2 Year of establishment

3 Nature of business

4 Address of the head office

5 Telephone Fax

6 E-mail Web-site

7

Registration Registration Body Registration

no. Date

(a). NGO Affairs Bureau

(b). Directorate of Social Welfare

(c). Joint Stock Company

(d). Micro Credit Regulatory

Authority

(e). Other (specify)

8 Address of the registered office,

if different from head office

9 Telephone Fax

10 E-mail Web-site

11 Ownership structure of the

organization

12 List the core

activities/programmes

13

Affiliation Affiliated With Date of affiliation

Palli Karma Sahayak Foundation

(“PKSF”)

Bank of Small Industries and

Commerce (”BASIC”)

Others (specify)

14 Programme outreach Local Divisional National

15

(a) Working Areas

Divison /District

a) Chittagong

b) Sylhet

c) Others (Specify)

16

Total Number of staff (National)

Total Number of staff (Ctg Div.)

11

Total Number of staff (Syl Div.)

17

Total number of branch offices

(National)

Total number of branch offices

(Ctg Div.)

Total number of branch offices

(Syl Div.)

18

Total number of beneficiaries

(national) Total Female Male

Total number of beneficiaries

(Ctg Div.) Total Female Male

Total number of beneficiaries

(Syl Div.) Total Female Male

19 Total number of groups (if any) Total Female Male

20

Has a renewable energy

programme? Yes No

If yes, name of programs Program starting

Date

No. of plants

constructed so far Source of fund

(a). Domestic Biogas

(b) Solar Home System

(c) Improved Cook Stove

(d). Solar Irrigation

(e). Solar Mini-grid

(f) Others (specify)

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Financial information (BDT)

(Last three years)

December 31, 2012

or FY 2011-12

December 31,2013

or FY 2012-13

December 31,

2014 or FY

2013-14

(a). Total assets

(b). Total Liabilities

(c). Total equity capital

(d). RLF

(e). Total revenues

(f). Total operating expenses

(g). Total operating income

(h). Interest expense

(i). Net income

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Section 5: Business Plan

OUTLINE OF PROFORMA BUSINESS PLAN FOR NGO/MFI/Company

1. Executive Summary

a. Objectives for participating in the project

b. Summary of the main assumptions for the project

c. Management structure for implementing the project

2. Operational Plan

a. Identification of customers (e.g. selection criteria, assumed monthly energy-budget, verification of

‘lower’ income level).

b. Programme areas

c. Target (e.g. total number of plants per year or specify )

d. Identification of product range (e.g. service level, performance criteria, various items in range,

maintenance and guarantee issues)

e. Operational procedures, e.g.

i. Marketing methods

ii. Supply: quality and procurement; service and guarantees

Partnership with local organizations for a long term business horizon

Clear arrangement about service and maintenance

Training

Warranty arrangements: very specific with respect to plant’s performance to avoid dis-

putes and customer dissatisfaction.

iii. Installation: needs; staff; equipment, materials etc.

iv. Maintenance and service

v. Reporting, accounting and monitoring

3. Financial Paragraphs

a. Separate project accounting

b. Break down to local offices and then aggregate for the total project

c. Budgets:

i. Financing Mechanism

d. Full financial forecasts, including Statement of Cash Flow, Balance Sheet, and Income Statement

4. Key Issues

a. Challenges (identify the factors that are considered as major constraints by the

NGO/MFI/Company in promoting NDBMP activities)

b. Quality issues: Quality above Quantity

i. Learning by doing

ii. Flexible targets

iii. Adjustments allowed

c. Service and maintenance arrangements

d. Start easy

i. Low barrier areas first

Lower operational costs if close by NGO’s/MFI’s/Company’s local office

Higher income so better repayment

Kick Start in numbers installed

ii. More complex and remote areas next

5. Closing Remarks, Pending Issues, Questions

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6. Annex to Business Plan

Organizational Information

[Please attach the memorandum and articles of association of your organization, copy of registration

certificates mentioned in the application form, brochures, annual reports, etc.]

Composition of Organizational Staff Team

Professional/Managerial Staff

Name Position Task Name of Upazila

Composition of Proposed Staff Team

Professional/Managerial Staff

SL Proposed Position Qualification Experience Remarks

Format of Curriculum Vitae (CV) of Chief Executive Officer (CEO)/Executive Director (ED)

Name:

Designation:

Date of Birth:

Years with NGO/MFI/Company: Nationality:

Membership in Professional Societies:

Detailed Tasks Assigned:

Key Qualifications:

[Give an outline of experience and training. Describe degree of responsibility on relevant previous

assignments and give dates and locations. Use about half a page.]

Education:

[Summarize college/university and other specialized education, giving names of schools, dates attended,

and degrees obtained (Enclose photograph, copy of key qualification certificates). Use about one quarter

of a page.]

Employment Record:

[Starting with present position, list in reverse order every employment held. List all positions held since

graduation, giving dates, names of employing NGOs/MFIs/Companies, titles of positions held, and

locations of assignments. For experience in last ten years, also give types of activities performed and

Executing Agency references, where appropriate. Use about two pages.]

Languages:

[For each language indicates proficiency: excellent, good, fair, or poor in speaking, reading, and writing.]

Certification:

I, the undersigned, certify that to the best of my knowledge and belief, these data correctly describe my

qualifications, my experience, and me.

[Signature of CEO/ED and authorized representative of the NGO/MFI/Company] Day/Month/Year

Full name of CEO/ED:____________________________________________

Full name of authorized representative: ___________________________

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Audit Report

[Please enclose the certified Audit Report for the last two years.]

Financial Solvency

[Please enclose Bank Statement of the period for which audit report has been submitted and detailed

Bank Information (Name of the bank with address, Account Number(s) with operational arrangement)

here]

Organizational Structure of the NGO/MFI/Company

[Please insert the Organizational structure of the organization i.e. how it is managing its activities and

how it is planning to implement the Post-Literacy and continuing Programme]

Familiarity of the NGO/MFI/Company in the proposed programme area

[Describe the details of office establishment and years of working experience in the proposed

Thana/Upazila]

Working Experience of the NGO/MFI/Company

Working Experience with various government or non-governmental institutions

[This is a sample format, NGO/MFI/Company may use different format if they desire]

SL. Name of the organization

worked with

Status of the organization

(Governmental or Non-

governmental)

Assignment duration Major Tasks

1.

Integrated community development activities of the NGO/MFI/Company

(This should include credit, skill training, health, nutrition, social development and other related activities

of the NGO/MFI/Company. This is a sample format, NGO/MFI/Company may use different format if they

desire]

SL. Name of the organization

Worked with

Name and Title of the

Program

Achievements to

date Lesson learned etc.

1.