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Call for pre-qualification: Solar products of EnDev Tanzania’s Results-Based Financing Fund

Stage 2 of the Solar Market Development in Lake-Central Zones RBF Fund has started, and eligible private sector companies are invited to apply for early pre-qualification

EnDev, through its implementation partner SNV, in Tanzania invites applications from eligible, innovative and experienced solar companies to pre-qualify for the supply of quality solar products for its RBF Fund Stage 2: Rural Remote and Vulnerable Solar Market Development project in Lake-Central Zones of Tanzania for 2019- 2020.

The RBF Fund includes EUR 1.5 million in RBF incentives available to the private sector. The RBF fund Stage 2 is based on the principles and structures successfully developed and adapted during its Stage 1 (2013-2018) with strategic design of key financing elements to ensure RBF incentives are more sensitively tuned to sustained market development in vulnerable and remote Lake and Central Zone markets. The RBF project for solar products in Tanzania is implemented by SNV, and with the support of DfID.

What is the RBF Fund?

The Results-Based Financing (RBF) approach is about developing and testing viable business models that employ financing as a performance incentive rather than a traditional lump sum loan payment. The key feature is payment upon delivery. Private participants are expected to take the full risk until the moment of delivery of the contracted results. RBF instruments are generally characterised by the following principles:

  • Disbursement of funds is contingent on the delivery of pre-determined results (outcomes or closely related outputs);
  • Results are broadly defined to allow for product & service innovation by allowing flexibility to service providers;
  • Verification acts as the trigger for disbursement;
  • Incentives are non-discriminatory, in that all eligible service providers are able to competitively participate

The RBF Fund of EnDev Tanzania is open to the private sector until September 2020, and is focused on the solar picoPV subsector (small solar home systems, lanterns, lanterns with phone charging). Its targeted geographic areas are the rural districts of the six Lake Zone regions of Geita, Kagera, Mara, Mwanza, Shinyanga, and Simiyu as well as the four Central Zone regions of Kigoma, Tabora, Singida and Dodoma.

Applying for pre-qualification to the RBF Fund

The RBF Fund is open to receiving applications through multiple intake rounds until March 2020. Firms are encouraged to apply early as only verified sales made at least six months prior to the claim will be eligible for incentive payments.

If you are interested in applying to the RBF Fund as a pico-solar PV supplier of Lighting Africa certified products, please download the three documents that will be used to guide the intake process:

1. Instructions. Professional-Technical Services Provider Pre-Qualification
2. Operational Guideline
3. Questionnaire: Pre-qualification for Professional-Technical Service Providers

The deadline for this round of intake is Friday, 27 July 2019, 2:00 PM East African Time (EAT).

Please also have a look at our partner SNV’s article on this process.