Azerbaijan Republic

Agricultural Competitiveness Improvement Project

Loan No.8286-AZ


Assignment Title: Selection of International Consultant with International experience to deliver the

Investment appraisal and value chain financing training.  Reference No. AZ-AACD-250452-CS-INDV-C/PFI


The Government of Azerbaijan has received financing from the World Bank toward the cost of the Agricultural Competitiveness Improvement Project, and intends to apply part of the proceeds for consulting services.

The project consists of three components:

  1. Component A - Support for sanitary and phytosanitary services, which is structured into three subcomponents: (i) Food Safety Capacity Building; (ii) Upgrading Plant Health and Phytosanitary System, and (iii) Animal Health and Veterinary Services.
  2. Component B - Agri-food value chain development. The Component helps to develop value chains by partially financing demand-driven investment proposals. It also supports activities for improving seed varieties and quality of seeds entering the market. The activities are structured into two sub-components: (i) Investment and advisory support for agribusiness value chain development, and (ii) Seed sector development.
  3. Component C - Financial services to agribusiness promotes growth of agribusiness/agro-food processing enterprises through a line of credit to enhance their competitiveness, increase production and improve technologies.



Component C: Financial Services to Agribusiness

The component C includes: (i) expands availability of investment financing for agribusiness/food processing enterprises through sub-loans; (ii) supports introduction of new financial products better tailored for satisfying the specific needs of agribusiness; and (iii) implement capacity building program for the participating financial institutions (PFIs).  The Project also support a study to examine the feasibility of introducing agricultural insurance mechanisms, and capacity building of the local insurance sector in risk assessment and product development.

A credit line has been made available for investment activities, principally for agro-processors and other agribusinesses, through qualifying commercial banks. Attention is focused on development of the agri-food processing sector, by encouraging investments in modern technological equipment, food safety compliance and development of market linkages. In addition, the component aims to introduce innovative structured finance products to support development of market linkages and supply chains. These products are expected to take the focus of the financial sector off the traditional forms of collateral, and develop relationships between farmers, agro-processors, wholesalers, retailers, etc.

The Credit Line is extended through qualified commercial banks, the Participating Financial Institutions (PFIs), which have been selected on the basis of a set of Eligibility Criteria, which include compliance with banking laws and prudential norms and regulations, maintenance of a healthy financial status and sound lending policies and procedures. The PFIs carry out appraisal of sub-loans/leases and sub-borrowers based on the agreed criteria, will set the interest rates and repayment terms to final beneficiaries based on reasonable banking considerations, and bear the full risk of loan repayment.  Agribusiness Investment Guidelines – the operational manual for the credit line –  sets forth the eligibility criteria for PFIs, sub-borrowers and sub-projects to be financed and the procedures for all parties involved in the implementation of the credit line.

The Project will implement a capacity building program for the financial institutions involved in the Project. The PFIs will receive training on the new financial products in agricultural lending and their practical application and on mitigation of the related risks through resident technical assistance. In addition, PFIs and insurance companies will be trained in the appraisal of agricultural assets as collateral for lending purposes.


The general objective

Technical assistance will be provided to these PFIs to minimize and manage the risks of entering into the relatively new markets of financing agribusinesses. The consultant will design the appropriate training program and train the PFI loan officers and managers through a series of seminars. The Consultant will also train several credit specialists of ACDA, through their participation in the delivery of training seminars, to ensure that the knowledge and skills are retained in a banking sector training organization. The training should be practical, based on realistic case studies and actual loan proposals. To the extent possible, the case studies should be based on the specific conditions of Azerbaijan, to increase their relevance to the trainees.


The training will cover 2 (two) topics: training on general investment appraisal and training on value chain financial products.   

The consultant to be hired under these TOR will be responsible for providing classroom training and hands-on/onsite training on Investment Appraisal and value chain financing in the PFIs.  The classroom-style  training should cover, but not be limited to:


  • Methodologies for appraising the financial and operational viability of investment and value chain financing proposals, covering standard credit appraisal techniques and methodologies with an emphasis on cash flow analysis;
  • Appraisal of risks involved in agribusiness financing (with a focus on long-term investment and value chain financing), and corresponding risk management techniques;
  • A detailed description and real case studies of various financial products, such as the use of investment lending, contract farming in vertically integrated systems, transaction finance, factoring, warehouse receipt systems, and several structured finance products as the consultant shall have determined their relevance in the Azerbaijan context (now and for the near future).  This should cover the architecture of these instruments, circumstances where such instruments make sense, their advantages and disadvantages, etc.
  • Loan structuring and loan pricing;
  • Loan monitoring;
  • Types of collateral, and collateral assessment methodologies;
  • Key environmental and social considerations in loan appraisal.
  • Data collection (or subscription) in order to analyse initial condition and final results of borrower’s activity (impact assessment)


Expected outputs and deliverables:

Total input of Consultant (including preparation, training and assessment reports) will be 42 work days. It is expected to allocate 7 work days on needs assessment and development of training materials.

In total, approximately 60 loan officers and 40 branch managers and 20 Top/Senior Managers are expected to be trained under this assignment.

The training will take place in Baku based on the demand. The groups of trainees participating in the each seminars will be about 20 persons.

The Consultant will provide Inception, Intermediete and final report.

The Project will be responsible for training arrangement and provision of translation services. 


Duration of the assignment

The Consultant is expected to be involved in the end of September 2021. The Consultant shall make 2 visits to the country.  The initial visit to the country is expected in early October 2021. The assignment is expected to be completed latest in the end of November, 2021.


The shortlisting criteria are:

  • Education in finance / banking;
  • Knowledge about agricultural sector
  • Proven international experience in delivery of trainings on financial products to loan specialists
  • Experience with preparation of training materials, provision of trainings for trainers
  • Experience with provision of trainings on lending instruments for agribusiness is an advantage
  • Analytical and report writing skills
  • Fluent English or Russian or Azerbaijani language
  • Previous experience in training delivery in Azerbaijan is an advantage


The Agricultural Competitiveness Improvement Project now invites eligible individual consultants to indicate their interest in providing the services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services.


The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’s Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants] by World Bank Borrowers, January 2011 edition, revised July 2014 (“Consultant Guidelines”), setting forth the World Bank’s policy on conflict of interests. 

A Consultant will be selected in accordance with the Individual Consultancy method set out in the Consultant Guidelines.


Expressions of interest must be delivered in a written form to the address below (in person, or by mail, or by fax, or by e-mail) by September 27, 2021.


Agency for Agro Credit and Development under the Ministry of Agriculture of the Republic of Azerbaijan/Agricultural Competitiveness Improvement Project

Attn: Mr. Anar Azimov

Project Director

1965, Z.Bunyadov avenue, Chinar Park Business Center, AZ1075, Baku, Azerbaijan

Tel: (+99 412) 525 01 17




Further information can be obtained at the address above during office hours 09:00 - 18:00.