SELECTION OF CONSULTANTS BY THE WORLD BANK

REQUEST FOR EXPRESSIONS OF INTEREST

Electronic Submissions through World Bank Group eConsultant http://www.worldbank.org/wbgeconsultant

Assignment Overview

Assignment Title: Credit Rating with Extended Financial Management Assessment of Urban Development Investment Corporation/UDICs in CHINA

Assignment Country: China

Assignment Description

The Urban Development Investment Corporations (UDICs) have over the years become the central pillar in the local government drive to build infrastructure in China. The UDICs have filled the institutional vacuum created by the long-standing government policy to not allow the local governments to engage in direct market borrowing. The UDICs were established during the early 1990s when the local governments were under great pressure to both build municipal infrastructure and to reform the role of the government in infrastructure development. The UDIC model created the institutional structure for the local governments to borrow from the market and quickly develop infrastructure. However, the market borrowing by the UDICs to build infrastructure in the cities in the context of weak institutional structure can put into question the financial sustainability of the UDICs. The problem is compounded by the lack of information about the financial operations of the MCs. The establishment of credit culture in UDIC operations is an important step towards managing the financial risk associated with UDICs, and putting them on a path towards continued financial independence and operational efficiency. Since the UDICs are a market borrowing platform, it is important to ensure that they are reformed and retooled to respond to market demands, i.e., any administrative changes incorporated into the UDIC model must respond to the market. Specifically, credit ratings present a market mechanism for ensuring that the UDIC borrowing does not exceed their ability to service the debt. The Government of China (GOC) has requested the World Bank to provide technical assistance to the UDICs in China on a demand driven basis. The Ministry of Finance (MOF) is specifically seeking World Bank assistance in helping to institutionalize credit ratings as a market based mechanism for the local governments to manage the borrowing practices of UDICs and transform them into financially viable entities engaged in the development of local infrastructure.

Funding Source:

The World Bank intends to finance the assignment/services described below under a trust fund from the PPIAF-SND: NON-CORE ACTIVITIES.

Eligibility:
Eligibility Restrictions apply [Please type list of restrictions]

Individual/Firm Profile:
The consultant will be a firm or consortium.

Submission Requirements:
The World Bank now invites eligible consultants to indicate their interest in providing the services. Interested consultants must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc.).
Consultants may associate to enhance their qualifications.

Interested consultants are hereby invited to submit expressions of interest.

Expressions of Interest should be submitted, in English, electronically through World Bank Group eConsultant http://www.worldbank.org/wbgeconsultant.

Notes:
Consultants will be selected in accordance with the procedures set out in the current edition of the World Bank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers.

Following this invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.

Contact Information:

Kamran M. Khan

Email: kmkhan@Worldbank.org

Ms. Inneke Herawati Ross

Email: iherawati@worldbank.org