General Specifications for procuring Credit & Risk Rating tools/ Assessment Models
For loans under Economic & Infrastructure Windows of
the SAARC Development Fund (SDF)
The objective of the assignment:
The Economic and Infrastructure Windows of the SDF is looking for a vendor/service
provider to supply and implement suitable Credit & Risk Rating tools/ Assessment
Models for SDF’s potential and existing loans. The Credit & Risk Rating tools/
Assessment Models are required to facilitate:
1. risk rating of various types of borrowers and facilities covering all types of risks
for the borrower and the project(s). The rating model should be able to provide
overall risk rating of the operation.
2. ‘easy to use’ approach with latest features and facilitate accurate real time rating
without obsolete, hard to learn features.
3. estimation of the security value and ability of a customer (including programs
and projects) - existing or potential, who may be a SAARC Member State or
States or a Company or companies in the public or private sector or any other
type of entities to fulfil their financial commitments, based on previous dealings.
4. a
balanced
estimation
of
the
applicant/borrower’s
environment,
management/financial/business situation and capacity to service or repay the
debt ;
5. Fixing of interest rates to be charged to the customers from time to time, based
on their respective credit ratings determined from time to time;
6. Fast and accurate credit decisions: The comprehensive solution should cover all
lending business lines of the SDF and should be suitable for a regional
multilateral financial institution wishing to mitigate operational risks. The
solution should be complete with all the required functionalities.
Scope of Assignment
The scope of work includes but not limited to:
1. Advising the SDF current trends and global best practices in relation to the
Risk Assessment Models/Rating tools and provide a report on the same. Also,
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suggest on the rating modules to be implemented for efficient Credit
Management by the SDF;
2. Supplying,
installating
and
implementing
suitable
Risk
Assessment
Models/Rating tools in consultation with the SDF and the World Bank
(wherever required) at SDF’s Secretariat at Thimphu, Bhutan.
3. Suggesting necessary hardware/software/storage/operating system/Database
system requirements for smooth running of the Rating models as per the
requirements of the SDF; and
4. Training the end users and systems personnel as per the requirements of the
SDF.
5. Developing a User Guide/manual for the Credit Management Software
solution. Complete documentation of the application software in hard and
soft copy should be provided along with implementation of the software.
6. The Vendor/Service provider is also expected to provide details on how it will
provide continued service support and product enhancements. This service
support may be contracted seperately.
Minimum Standards
The
SDF
requires the following
minimum standards for
Risk
Assessment
Models/Rating tools:
1. The objectivity of the methodology: The methodology for assigning credit
ratings shall be systematic, continuous, rigorous and subject to validation.
2. The methodology used ought to be extensively documented and the
documentation easily available to the users or assessors of the Rating tools.
The same applies to any possible future updates or amendments.;
3. The model should be primarily mechanical.
4. The requirements of inputs required for the Credit Rating tools must be
documented for the SDF and need to be accurate, complete and appropriate.
The procedure for the collection of data, their incorporation into the Credit
Rating tools must be documented in detail. The Service provider should
define standards for ensuring data quality and should strive to improve these
standards over time.
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5. The Credit Rating tools are expected to be developed to meet the
requirements of the SDF as per the global best practices.
6. The Credit Rating tools must produce an overall assessment of the Customer
and not onlyof a specific credit claim as detailed in the Objectives of the
assignment hereinabove. The Credit Rating tools must produce probability of
default.
7. There should be adequate data and system security specifications.
8. The System should be centralized at the SDF Secretariat at Thimphu with the
facility of online access from various defined users.
9. Role based access: The product should have built in features for providing
role based access to users of the SDF. The modules should be only accessible
using a set of user credentials. The system should be scalable to support
additional users and modules.
10. Security Features: The solution should have built in security features to help
only authorized users to use the application as per roles defined. Open Web
Application Security Project (OWASP) guidelines are followed and complied
by the bidder.
11. Warranty: The product shall be under a warranty of minimum one year from
the date of live implementation, during which additions/modifications/bug
fixing shall be done without any extra charge. Further, all upgrades, patches
would be provided free of cost during the warranty and support period. The
warranty
period
would
start
on
live
implementation.
The
live/implementation date shall be crystallized mutually..
12. All the necessary changes will be incorporated in the software by the bidder
during warranty and subsequent support period free of cost.
13. Annual Technical Support: The successful bidder shall be responsible to
provide Annual Technical Support of the product. The cost quoted by the
bidder for the Annual Technical Support in the commercial bid will be valid
for 4 years after the warranty period. The bidder should be able to provide
support of the application for its lifetime. Lifetime means the time up to
which the SDF will be using the application.
14. Workflow/ Process flow: The Solution provider should provide workflow
templates/ process flow documents to facilitate the users of the SDF to easily
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customize it according to its needs, where there is no change in the business
logic.
15. The successful bidder should provide one (1) month on site support during
normal office hours 9.00 am to 5.00 pm, Monday to Saturday (Bhutan Time),
and offsite 24x7 support during warranty and Annual Technical Support
period, immediately after live implementation without any extra cost.
16. Disaster Recovery implementation is also required without any separate
License Fees and implementation cost.
17. The bidder should ensure full time availability of minimum one Subject
Matter Expert onsite for the period of implementation. Subject Matter Expert
will bring in his experience in the iterative process of framing business rules
and to bring bringing process changes, review all project deliverables.
18. If required, the bidder will be required to provide the third party verification
document for each and every person deployed in the project at the SDF;
19. Solution should have clear separation between design and deployment
activities.
20. The Bidder has to provide complete document on Business Continuity Plan
(BCP) and Disaster Recovery Plan (DRP) of the proposed solution;
21. Project Implementation Plan: The bidder should provide a project
implementation plan indicating milestones and deliverables. Initially,
deliverables will be Design document, technical architecture of the solution
and action plan for implementation.
22. Updates and upgrades: The bidder shall be required to provide all future
updates and upgrades for the solution provided free of cost. If however, the
upgrades are not available, then the support for the implemented solution
should be available at any point of time. An undertaking to this effect is to be
furnished by the Bidder.
23. There should be a provision to rollout the solution to any location/ office of
the SDF with no extra license cost;
24. There should not be any restriction on number of user licenses (i.e. Enterprise
version for unlimited user license)
25. In case the bidder is not the Principal Solution Provider (PSP), the bidder
should put in place adequate support structure from the PSP for overseeing
and assisting in completing the implementation within the timeframe. A
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representative
of
the
PSP
should
support
during
the
period
of
implementation and during warranty period.
26. Patent Rights: The Supplier shall indemnify the SDF against all third party
claims of infringement of intellectual, patent, trademark or industrial design
rights arising from use of the Goods or any part thereof.
Eligibility Criteria
1. The Company participating in the bid should be registered in any one of
the 8 SAARC member states, as per the applicable corporate laws or have
its registered office within the jurisdiction of any one of the 8 SAARC
member states. The technical support centre should also be located
within this jurisdiction.
2. The bidder should have provided such or similar software solution to
Banking or Financial institutions within or outside the SAARC Region in
the last least 3 years (2012, 2013, 20014) and such implementation should
be live in these institutions.
3.
The turnover of the bidding Company (not parent company) for the last
3 Accounting years must be not lesser than USD 1.0 Million each year.
Audited Financial Statements of last 3 years should be submitted in this
regard. The bidder should also have positive net worth as per the last
Balance Sheet.
4. The bidder should not be involved in any litigation which threatens
solvency of Company and undertaking in this regard is to be submitted
by bidder.
5. Bidder should be the owner of the software solution offered or should
have exclusive right of use or deploy the software for use by the SDF. The
bidder
or the Solution provider should have has IP (Intellectual
Property) rights for the products offered to the SDF and an undertaking
to this effect shall have to vbe furnished.
6. The Service provider must be economically independent of the entities to
be rated and not to be linked to any of the customers/projects of the SDF.
Details of ownership structure and organizational structure should be
made available, including major shareholders and major subsidiaries.
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7. The Service provider must have sufficient technically qualified staff to
carry on the assignment; Detailed CV of the relevant staff to be provided
to the SDF.
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