ສມກຈ - ສະມາຄົມການເງິນຈຸລະພາກ

LMFA - Lao Microfinance Association

Announcement for Consultant teams/consulting firms to Conduct a Study on Over-indebtedness Situation in Lao PDR Microfinance Market ( closed )

Announcement for Expression of Interests (EoI)

Announcement for Consultant teams/consulting firms to Conduct a Study on Over-indebtedness Situation in Lao PDR Microfinance Market

The Lao Microfinance Association in partnership with the Department of Rural Development and Cooperatives (DRDC), Ministry of Agriculture and Forestry in its capacity as the Chair of the Sub-Sector Working Group on Rural Development (SSWG-RD) and Task Force on Rural Finance (TFRF) with financial support from ADA and Luxembourg Cooperation, will implement a Study on Over-indebtedness Situation in Lao PDR Microfinance Market.

This study is the first one to explore the issue of indebtedness in the microfinance market of Lao PDR. There has been anecdotal information about the issues surrounding microfinance clients experiencing a certain level of over-indebtedness. However, there is a lack of robust analytical evidences to support this and studies on over-indebtedness are lacking. This study will aims to provide in-depth analysis and hopes to provide concrete recommendations to microfinance practitioners, donors and regulators and can also provide insights into future quantitative inquiry into the discussion of over-indebtedness. The study will examine the following aspects in relation to over-indebtedness:

1.  The level of indebtedness and borrowing patterns.

2.  Factors that led- to over-indebtedness or have prevented it.

3.  Actions needed to address over-indebtedness.

The LMFA would like to invite eligible consultancy providers to indicate their interest in providing the services to conduct the study. The call for expression of interest for this study is open to locally-based consulting firms or group of consultants who can organize a competent research team and that have demonstrated extensive work in financial inclusion, rural and microfinance in Lao PDR. We like to encourage interested parties to submit their EOI early on as the selection will be done as soon as suitable candidates have been identified.

It is expected that the study team will be composed of cross-functional experts with strong background in research and expertise in rural and microfinance industry. The criteria for the qualification of the contractor/s are the following:

•    Comprehensive operational/consulting experience (product design, lending methodology, client protection) in Microfinance, rural finance in the region.

•    Demonstrated work on micro and rural finance especially policy, regulatory aspects and financial inclusion strategies.

•    Extensive work in research and studies in microfinance and rural finance preferably in relation to indebtedness.

The maximum total budget for this study is 312,000,000 LAK. This includes professional fees, accommodation, per diem and transportation. A full EoI package including the study Terms of Reference (TOR) can be requested from LMFA.

The consultant/ team should start work as soon as possible within the 4th Quarter and provide the final report to LMFA by middle of December 2020.

Submission of EOI:

Please submit your expressions of interest by email to: mfa@laomfa.org by 3 pm Vientiane time no later than 27th October 2020. Applications will be reviewed on a continuous basis and selection may take place before the deadline.

Lao Microfinance Association (LMFA)

Unit 14, Amone Village, Saysettha District, P.O.Box: 4030, Vientiane Capital, Lao P D R, Email: mfa@laomfa.org Web: www.laomfa.org. Office Tel: +856 30 9481265 /Fax: +856 21 226019

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