Market Research   MILLENNIUM CHALLENGE ACCOUNT-GEORGIA SPECIFIC PROCUREMENT NOTICE
6/24/2019
  
 
Procurement of Student Loan Facility – Management of Landing Services
 
RFP # PP14-A3/MCA-G/CS/LCS/10
 
 
The Government of the United States, through the Millennium Challenge Corporation (MCC) has invested $140 million in Georgia through the Georgia II Compact (2014-2019), administered by Millennium Challenge Account-Georgia (MCA-G). This foreign assistance package has prioritized (i) improvement of general education learning environment, (ii) industry-led skills and workforce development, and (iii) strengthening higher education quality. MCC’s partnership with Georgia is a strong example of how the U.S. government promotes economic growth, helps people lift themselves out of poverty, and invests in future generations.
 
Through a $34 million investment, the Compact has facilitated the creation of San Diego State University-Georgia (SDSU-Georgia) dual degree bachelor’s programs, delivered in partnership with three (3) Georgian Partner Universities (Tbilisi State University, Ilia State University, and Georgian Technical University) to increase the number of students earning high-quality bachelor’s degrees in STEM (chemistry, computer science, electrical engineering, computer engineering, and civil and construction engineering). 
 
In order to ensure equitable access to high-quality education, student loan facility with a social inclusion mandate is being launched by MCA-Georgia. This facility would facilitate access to internationally-accredited STEM programs in Georgia for all qualified Georgian students, regardless of their families’ income, both during and after the Compact term. A student financing facility would foster social inclusion by filling a critical market gap, providing access to loans under more suitable conditions than currently exist in Georgia.
 
MCA-Georgia’s Contribution to the Student Loan Facility
 
Up to US$1,000,000 can be provided as phase one (tranche one). Disbursement(s) will be contingent upon meeting certain requirements and would be structured in tranches based on available MCA-Georgia’s financial resources and the available student loan pilot size.
 
Should this phase demonstrate early success, there is an interest in revisiting and potentially expanding the scope of the student loan facility.
 
Provided funds (both the initial tranche and the potential second tranche) are envisioned for (i) direct lending capital, (ii) a first loss credit guarantee, (iii) technical assistance for the administrator and potential subordinate lender(s), (iv) technical assistance for students, and/or (v) investment(s) in lending infrastructure, all subject to agreement with MCA-Georgia.
 
Target beneficiaries are credit-worthy Georgian students enrolled in internationally accredited undergraduate STEM and/or TVET programs in Georgia, including but not limited to, the students supported through the second Compact with Georgia. Proposals that extend loans to other reputable undergraduate and graduate programs after July 1, 2019 will also be considered if the latter contributes to sustainability of the loan facility.
 
MCA-Georgia anticipates that the student loan facility will require: 
1.         Access to long-term, affordable, Lari-denominated funds to a financial institution for on-lending to students, and
2.         A reputable financial institution with a social impact investment and human capacity development mandate, such as a bank or micro-finance institution (MFI), to originate and administer student loans.
 
In addition to these core elements, technical assistance might be required to set up and administer the program (e.g. work with financial institution(s) to carry out risk analysis on student applicants).
 
MCA-Georgia Program Parameters and Priorities
 
MCA-Georgia is now conducting a selection process to choose a partner to implement phase one of this program and subsequently launch the loan facility.  The selection criteria are focused on the qualifications and experience of institutions who will manage this facility, as well as financial criteria related to the interest rate for student loans and the management fees for the facility.

The Offeror shall express their interest in applying by sending the request to the e-mails provided below with indication of the company’s name, country, address as well as the contact details (name, position, cell phone, e-mail) of the person in charge.         


Millennium Challenge Account - Georgia
Attn: Mr. Dimitri KEMOKLIDZE, Procurement Director
E-mail: procurement@mcageorgia.ge
             nramishvili@mcageorgia.ge
 
Proposals must be delivered to the address given below no later than 15:00 Georgia Time (GMT+4) on July 5, 2019
 
Millennium Challenge Account - Georgia
4th floor, Conference Room 5, M. Kostava Street, (no elevator available)
Tbilisi, 0108, Georgia