Developing a Regulatory and Supervisory Framework for Islamic Banking in Somalia - Consultancy Services for New Product Development and Capacity Building
Due to the recent global pandemic, REOI process extended to 15 April 2020
REQUEST FOR EXPRESSION OF INTEREST
Consultancy Services and Enhancing Institutional Capacity
Consultancy Services for New Product Development and Capacity Building
The Federal Government of Somalia through the Somali Development and Reconstruction Bank (SDRB) intends to acquire consulting services for “Developing a Regulatory and Supervisory Framework for Islamic Banking in Somalia” under the Technical Assistance (TA) provided by the Islamic Development Bank (IsDB). The work is delegated to the Somali Development and Reconstruction Bank(SDRB) to be the leading agency of the project.
Brief Description: Consultancy Services and Enhancing Institutional Capacity are the main objectives of the TA. For the consultancy services, SDRB will work closely with the Consultant(s) to prepare the legal, regulatory and supervisory as well as Shari'ah governance framework for Islamic banking, keeping in view the applicability of IFSB and AAOIFI standards, where possible under the legal framework of Somalia. For the other main objective, “Institutional Capacity”; SDRB and Central Bank of Somalia (CBS) personnel, as well as selected bankers from the private sector, will be trained on Islamic Banking. Pieces of training will cover different areas including Regulation and Supervision of the Islamic Banks.
Implementation Period: The overall implementation period of the project is 18 months, beginning with the signature date of the TA agreement. The selection of the Consultant(s) will be conducted through the IsDB’s procurement procedure. Expected start date of the assignment shall be consistent with the Terms of Reference (ToR), which will be shared with the selected Consultant(s).
Shortlisting Criteria: Interested consultants must provide specific information, which demonstrates that they are fully qualified to perform these services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, core business and years in the business, relevant experience, technical and managerial capability of the firm etc.). Experience in working fragile states and being aware of the dynamics of Somalia will be additional value.
Consultant(s) may express interests in the forms of stand alone consultancy company/firm, association, validated by an agreement among members of the association, which clearly specifies the type of association, i.e., a joint-venture, intermediate forms of association, or sub consultancy. A consultant will be selected in accordance with the procedures set out in the Guidelines for the procurement of Consultant Services under IsDB Project Financing (Edition: April 2019).
Conflict of interest: Consultants may associate with other firms to enhance their qualifications, but should indicate clearly whether the association is in the form of a joint venture and/or a sub-consultancy. In the case of a joint venture, all the partners in the joint venture shall be jointly and severally liable for the entire contract, if selected[i].
Consultancy Work: SDRB now invites eligible consultants to indicate their interest in providing the services mentioned above. Consultant(s) will be selected in accordance with the Quality- and Cost-Based Selection (QCBS) method set out in the Procurement Guidelines[ii].
For the Consultancy Services:
Experience in the following area or tasks shall be the minimum requirement for the assignment. Consultant(s) provide the SDRB following deliverables:
- Drafting the new law or an addendum law for the current financial law on Islamic banking, which requires (as per the need assessment and/or inception report) to permit the establishment of Islamic banking institutions in Somalia
- Drafting of modifications in other related laws, e.g. property/proprietary laws, leasing laws, bankruptcy laws, etc. required for efficient operations of Islamic banking institutions in Somalia
- Drafting of modifications in the existing regulatory framework for banking institutions to effectively regulate Islamic banking institutions in Somalia
- Preparing the amendments in the current supervisory mechanism for banking institutions to effectively supervise Islamic banking institutions in Somalia
- Developing Islamic banking governance framework (Shari'ah Governance Framework) for Somalia as per the international best practices
- Drafting of modifications in the tax laws to accommodate Islamic banking transactions and ensure the competitiveness of Islamic banks vis-à-vis the conventional banks in Somalia
For the Enhancing Institutional Capacity:
Conducting training courses for SDRB and CBS personnel to provide hands-on training on Islamic banking aimed at developing internal capacity within SDRB and CBS concerning regulation, supervision, inspection, and other relevant central banking areas relating to Islamic banking. Each training session will take ten days for 50 attendees. SDRB plans to organize three different training courses based on the participants' Islamic finance knowledge. It is planned that in a total of 150 staff of SDRB, CBS, as well as private sector banks’ personnel, will be trained after the completion of the project[iii].
Interested consultants may obtain further information at the address below during office hours, i.e., 09:00 to 17:00 hours (Somalia Standard Time).
Expressions of interest must be delivered to the address below by 15:00 hours Somalia Standard Time on April 1, 2020.
Somali Development and Reconstruction Bank
Address: 11 Corso Somalia, Central Bank of Somalia building, Mogadishu-Somalia
- E-mail to be directed to:
Name: Dr. Ahmed Nor
Tel: +252 61 8818866
- E-mail copy to (cc):
Name: Abdulkarim Muse
Tel: +252 61 6583520
- E-mail copy to (cc):
Name: Abshir Mohamed Isse
Tel: +252 61 6266980
[i] Interested Consultant(s) needs to see Paragraphs, 1.23 and 1.24 of the Guidelines for Procurement of Consultant Services under Islamic Development Bank Project Financing (the “Procurement Guidelines” April 2019), setting for IsDB’s policy on conflict of interest.
[ii] Quality- and Cost-Based Selection: For more details please see Guidelines for the procurement of Consultant Services under IsDB Project Financing - page 6
[iii] The detailed Terms of Reference (ToR) for the assignment can be obtained at the addresses given at the end of the REOI.