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Selection of Non-Governmental Organizations (NGO)/Micro-Finance Institutions (MFIs)/Companies as LPO for

Implementation of National Domestic Biogas and Manure Programme (NDBMP)

Infrastructure Development Company Limited (IDCOL)

UTC Building (16th Floor)
8 Panthapath, Kawranbazar

December 2006

Infrastructure Development Company Limited (IDCOL)

Section 1
Invitation for application from eligible organizations to participate in the construction
of biogas plants.

1. Infrastructure Development Company Limited (IDCOL) is implementing the

National Domestic Biogas and Manure Programme (NDBMP) with support
from SNV, Netherlands Development Organization. IDCOL has a target of
financing a total of 60,000 biogas plants in the rural areas of Bangladesh by
2. Applications are invited from NGOs/MFIs/companies that are interested to
participate in construction and maintenance of biogas plants as Construction
Partner Organization (CPO) and/or financing of biogas plants as Lending
Partner Organization (LPO) under the framework, terms and conditions of
3. For selection as LPO, the NGO/MFI/company must have proven
microfinance experiences, a good business plan, qualified personnel,
transparent and sound account and audit system, strong institutional capacity
and arrangements with qualified biogas CPOs.
4. For selection as CPO, the NGO/MFI/company must have proven experience
in construction activities, sound financial and management capabilities, a
good business plan, qualified personnel and well established office.
5. If selected, the LPO will provide loans to households for construction of
biogas plants, 80% of which will be refinanced by IDCOL on concessionary
6. The CPO will construct and maintain biogas plants as per design and
materials approved by IDCOL and provide performance warranty for at least
5 years.
7. In addition to refinancing, IDCOL will provide Tk.7,000 as construction
subsidy per household per biogas plants.
8. Interested organisations should send their applications to IDCOL, UTC
Building (16th Floor), 8 Panthapath, Kawranbazar, Dhaka-1215, Email: not later than 25 December 2006. For detailed selection
criteria for both LPO and CPO, list of existing CPOs, other information and
application form please visit IDCOLs website or collect from
IDCOL office, upon payment of a non-refundable fee of Tk.200 (Taka Two
hundred only) from 06 December 2006 during office hour. IDCOL will have
the right to accept or reject any application without assigning any reason.

Introduction to Biogas Technology

In Bangladesh the average cooking requirement per family per day is estimated to be 5 hours in rural
households. Each household needs about 3 tones of biomass per year for cooking purposes. Assuming that 55
percent of households use biomass for cooking, about 40 million tones of biomass fuel will be required every
year for cooking alone. Supply of such large quantity of biomass can have high pressure on the forest. Besides it
will also cause indoor air pollution, as biomass smoke is considered to be a major source of public health
hazard, particularly to the poor and vulnerable women and children. Use of agriculture residues and animal
waste for cooking purposes rather than for its use as an organic fertilizer has adverse affect on maintaining the
soil fertility, thereby reducing crop production and productivity of land.

In order to prevent further environmental and agricultural deterioration, it is imperative to promote biogas as a
sustainable and clean source of energy in Bangladesh. Biogas needs only cattle dung/ poultry droppings and
water, which is commonly available in the rural households of Bangladesh. The materials used for the
construction of biogas plant are bricks, sands, aggregates, cement and pipes, which are locally available. Any
local literate person with some training can easily construct a biogas plant. Most of the appliances necessary for
the biogas plant can be locally produced in Bangladesh. Operation and maintenance is very easy and any person
with one day training can operate and maintain the plant easily. Once plant is installed, it can produce gas for
more than 15 years without major problem. After 4 years of installation, the total investment on biogas plant can
be returned and after that one can get gas free of cost for many years. The slurry, bio product of biogas, can be a
very good organic fertilizer, which eventually maintain the soil fertility and increase crop production. Biogas
reduces the carbon (CO2) emission because it is smokeless which is very good for environment.

In the framework of the Asia Biogas Programme, the Netherlands Development Organization (SNV) aims to
support in setting-up and implement a large-scale domestic biogas programme in Bangladesh. IDCOL with the
support of SNV has launched implementation of National Domestic Biogas and Manure Programme (NDBMP)
from 2006. This program has a plan to construct 60,000 biogas plants by the end of 2010.

A fixed dome design biogas plant will be promoted under this programme. The design will be basically two
types; a) design for cattle dung and human excreta, and b) design for poultry droppings. Each design will have 7
sizes of different capacities. These sizes will be 1.2, 1.6, 2.0, 2.4, 3.2, 4.8 and 6.4 m3 gas production capacity.
The gas produced from the last two sizes plants will be used for multiple houses whereas other sizes will be
used for single household. Biogas is mainly used for cooking but also can be used for lighting as well.

Under NDBMP, IDCOL will provide refinancing up to 80% of the credit extended by the LPO to the household
and Taka 7,000 as investment subsidy to the biogas households for installation of biogas plants as per the
specifications and standard set by IDCOL/SNV. The subsidy will be channeled through the Lending Partner
Organizations (LPOs).

For detail information one can visit the website


4 cm dia
G.I. Pipe
Inlet Turret Height Earth 7.5cm R.C.C Slab
Tank 40 cm Filling

Hydraulic Chamber h8
Gas Storage Chamber Fertilizer
h4 H
10 cm dia
p1 p2

Digester h2 M
C4 1st Layer Plaster 1:3 (Cement : Sand)
2nd Layer Plaster 1:2 (Cement : Sand)
h1 3rd Layer Plaster 1:1 (Cement : Acrylic Emulsion Pain
4th Layer Painting Only (Acrylic Emulsion Paint)
7.5 cm C.C Work (1:3:6) Details of Gas Chamber Plaster

Section on -AA'
Inlet pipe for human waste L

Pit - A1 B
A A'

Pit - A2 B

Design of Biogas Plant (without dimension)

Section 2
Information to NGO/MFI/Company

1. Introduction

1.1 The Infrastructure Development Company Limited (IDCOL) will select Lending Partner
Organizations (LPOs) in accordance with the selection criteria specified in section 3.

1.2 The NGO/MFI/Company is invited to submit a Business Plan for the assignment named in
section 3. The Business Plan will be the basis for selection of LPO and IDCOL will ultimately
sign Participation Agreement with the selected organization. Once the agreement is signed,
activities of the NGO/MFI/Company shall be governed according to the terms and conditions of
the Participation Agreement.

1.3 The LPO may submit Business Plan with any programme target they reasonably feel they are
capable to implement. However, this target may later be annually revised as per provisions of the
Participation Agreement.

1.4 Notably, (i) the costs of preparing the EOI including visits to IDCOL are not reimbursable as a
direct cost of the assignment; and (ii) IDCOL is not bound to accept any of the Business Plans

1.5 Government policy requires that NGO/MFI/Company provide professional, objective, and
impartial services and at all times hold IDCOLs interests paramount, without any consideration
for future work, and strictly avoid conflicts with other assignments or their own corporate
interests. NGO/MFI/Company shall not be hired for any assignment that would be in conflict
with their prior or current obligations to other Executing Agencies, or that may place them in a
position of not being able to carry out the assignment in the best interest of IDCOL.

1.6 Without limitation on the generality of this rule, NGO/MFI/Company shall not be hired for any
assignment, which, by its nature, may be in conflict with another assignment of the

2. Clarification and Amendment of EOI Documents

2.1 NGO/MFI/Company may request a clarification of any of the EOI documents up to the number
of days indicated in section 3 before the Business Plan submission date.

2.2 At any time before the submission of Business Plans, IDCOL may, for any reason, amend the
EOI. IDCOL may at its discretion extend the deadline for the submission of Business Plan.

3. Preparation of EOI Documents

3.1 NGO/MFI/Company is requested to submit the documents in English language.

3.2 In preparing the Business Plan, NGO/MFI/Company is expected to examine the documents
constituting this EOI in detail.

3.3 While preparing the Business Plan, NGO/MFI/Company must give particular attention to the

(i) It is desirable that the majority of the key professional staff proposed be permanent employees
of the NGO/MFI/Company or has an extended and stable working relationship with it.

(ii) Reports to be issued by the NGO/MFI/Company as part of this EOI shall be in English

3.4 Institutional capacity

(a) The institutional capacity of the NGO/MFI/Company should be described in detail to
adequately document the capability of the NGO/MFI/Company.

(b) The composition of the organizations professional and managerial staff and type of staff,
their qualifications and the tasks that are assigned to each staff team member should be
described in the Annex to Business Plan.

(c) Curriculum Vitae (CV) of the Chief Executive Officer (CEO)/Executive Director (ED)
of the NGO/MFI/Company recently signed by the CEO/ED and the authorized
representative submitting the Business Plan. Key information should include academic
qualification, number of years working for the NGO/MFI/Company and degree of re-
sponsibility held in various assignments during the last five (5) years.

(d) Financial management capacity and efficiency should be described with the Business
Plan highlighting the financial situation as reflected in the audit reports. To demonstrate
the financial management capacity, the Audit report of the last three financial years and
bank transaction statement of the same period should be included with the Annex to
Business Plan.

(e) Organizational structure of the NGO/MFI/Company should be included in the Business

Plan in the Annex to Business Plan.

(f) Familiarity with the proposed working area should be described and its documentary
evidence should also be attached to the Business Plan. This will include maintaining of a
regular office during project implementation in the proposed working area and working
experience in the area in any field.

(g) Working experience with various government and non-governmental institutions. Docu-
mentary evidence should be included in the Annex to Business Plan.

(h) Integrated community development activities undertaken by the NGO/MFI/Company

specifically in the field of credit, skill training, health, and nutrition, social development
activities etc may be described. Documentary evidence thereof should be included in the
Annex to Business Plan.

4. Submission, Receipt, and Opening of Business Plans

4.1 The original Business Plan and Application Form shall be prepared in indelible ink. It
shall contain no interlineations or overwriting, except as necessary to correct errors made
by the NGO/MFI/Company itself. Any such corrections must be initialled by the persons
or person who sign(s) the Business Plans.

4.2 An authorized representative of the NGO/MFI/Company shall initial all pages of the
Business Plan.

4.3 The completed Business Plan and Application Form must be delivered at the submission
address on or before the time and date stated in section 3.

4.4 As soon as available the Business Plan will be opened by the evaluation committee.

5. Business Plan Evaluation

5.1 Any effort by the applicant to influence IDCOL in the IDCOLs evaluation or contract
award decisions shall result in the rejection of the NGO/MFI/Company.

5.2 The information provided in the Business Plan received will be enquired into by
IDCOL through various methods including physical inspection, if required.

5.3 The evaluation committee appointed by IDCOL as a whole and each of its members
individually, evaluates the Business Plans on the basis of the eligibility criteria detailed
in section 3.

6. Signing of Participation Agreement

6.1 Participation Agreement will be signed with the successful NGO/MFI/Company.

7. Confidentiality

7.1 Information relating to evaluation of Business Plans and recommendations concerning

awards shall not be disclosed to the NGO/MFI/Company who submitted the Business
Plans or to other persons not officially concerned with the process, until the winning
NGO/MFI/Company has been notified that it has been awarded the contract.

Section 3
Invitation for application from eligible organizations to participate in the financing of
biogas plants.

1. The eligibility criteria for selection of Lending Partner Organizations (LPOs):

Registered as Private Limited Company or NGO or MFI under the relevant laws and having at
least 50,000 borrowers.
Submission of satisfactory business plan.
Ability to finance at least 20% of the total loan from its own sources.
Minimum 5 years lending experiences. Priority will be given to those having lending experience in
renewable energy.
Minimum recovery rate of loan is 85%.
Sound and transparent accounting, internal control and annual external audit system are
consistently maintained.
Strong institutional capacity to implement micro credit programme.
Applicants without experience in renewable energy financing shall have arrangements with Biogas
Construction Partner Organization (CPO) of IDCOL.
CPOs without required experience in micro credit may apply in partnership with eligible

The criteria mentioned above are applicable only for the Lending Partner Organizations (LPOs).

2. Points set for selection criteria:

Subject Points
A. Experience 35
i. Years of experience in credit business (min-5 years) 15
ii. Total number of beneficiaries (min 50,000) 15
iii. Experience in renewable energy financing 05
B. Financial performance 40
i. Equity for companies assets for NGOs 15
ii. Repayment collection 15
iii. Audit system and report(financial statement) 10
C. Institutional capacity 15
i. Number & type of staff 05
ii. Experience 7 qualification of CEO 05
iii. Qualification & experience of professional staff 05
D. Linkages and familiarity with local level organizations 10
i. Years of working experience with local organization 05
ii. Membership with local bodies 05
Total points 100
3. The decision of the Selection Committee shall be final.

Section 4
Application Form

Infrastructure Development Company Limited

UTC Building (16th floor), 8 Panthapath, Kawranbazar, Dhaka-1215, Bangladesh.
Phone: 880-2-8111235, 8117526, 9114385, Fax: 880-2-8116663
E-mail:, Web:


SL. Information
1. Name of the

2. Year of establishment

3. Nature of business

4. Address of the head


Telephone Fax

E-mail Web-site

5. Registration Registration Body Registration no. Date

(a). NGO Affairs Bureau

(b). Directorate of Social


(c). Joint Stock Company

(d). Other (specify)

6. Address of the regis-

tered office, if differ-
ent from head office
Telephone Fax

E-mail Web-site

SL. Information
7. Ownership structure
of the organization

8. List the core activi-


9. Affiliation Affiliated With Date of affiliation




10. Programme outreach Local Divisional National

(a) Working Areas


11. Total Number of staff

12. Total number of

branch offices
13. Total number of Total Female Male
beneficiaries (if any)
14. Total number of Total Female Male
groups (if any)
15. Has a renewable Yes No
energy programme?
If yes, name of pro- Date programme started No. of system installed Source of fund
gramme so far






SL. Information
16. Financial information December 31, 2005 December 31,2004 December 31, 2003
(Taka) (Taka) (Taka)
(a). Total assets

(b). Total Liabilities

(c). Total equity

(d). RLF

(e). Total revenues

(f). Total operating

(g). Total operating
(h). Interest expense

(i). Net income


Section 5
Business Plan

Infrastructure Development Company Limited

UTC Building (16th floor), 8 Panthapath, Kawranbazar, Dhaka-1215, Bangladesh.
Phone: 880-2-8111235, 8117526, 9114385, Fax: 880-2-8116663
E-mail:, Web:


1. Executive Summary
a. Objectives for participating in the project
b. Summary of the main assumptions for the project
c. Management structure for implementing the project

2. Operational Plan
a. Identification of customers (e.g. selection criteria, assumed monthly energy-budget, verifica-
tion of lower income level).
b. Programme areas
c. Target (e.g. total number of plants per year or specify )
d. Identification of product range (e.g. service level, performance criteria, various items in
range, maintenance and guarantee issues)
e. Operational procedures, e.g.
i. Marketing methods
ii. Supply: quality and procurement; service and guarantees
Partnership with local organizations for a long term business horizon
Clear arrangement about service and maintenance
Warranty arrangements: very specific with respect to plants performance to avoid
disputes and customer dissatisfaction.
iii. Installation: needs; staff; equipment, materials etc.
iv. Maintenance and service
v. Reporting, accounting and monitoring

3. Financial Paragraphs
a. Separate project accounting
b. Break down to local offices and then aggregate for the total project
c. Budgets:
i. Financing Mechanism
d. Full financial forecasts, including Statement of Cash Flow, Balance Sheet, and Income State-

4. Key Issues
a. Challenges (identify the factors that are considered as major constraints by the
NGO/MFI/Company in promoting NDBMP activities)
b. Quality issues: Quality above Quantity
i. Learning by doing
ii. Flexible targets
iii. Adjustments allowed
c. Service and maintenance arrangements
d. Start easy

i. Low barrier areas first

Lower operational costs if close by NGOs/MFIs/Companys local office
Higher income so better repayment
Kick Start in numbers installed
ii. More complex and remote areas next
5. Closing Remarks, Pending Issues, Questions

Annex to Business Plan

1. Organizational Information
[Please attach the memorandum and articles of association of your organization, copy of
registration certificates mentioned in the application form, brochures, annual reports, etc.]

2. Composition of Organizational Staff Team

Professional/Managerial Staff
Name Position Task Name of Upazila


3. Composition of Proposed Staff Team

Professional/Managerial Staff
SL. Proposed Position Qualification Experience Remarks

4. Format of Curriculum Vitae (CV) of Chief Executive Officer (CEO)/Executive Director


Date of Birth:
Years with NGO/MFI/Company: Nationality:
Membership in Professional Societies:
Detailed Tasks Assigned:

Key Qualifications:
[Give an outline of experience and training. Describe degree of responsibility on relevant previous
assignments and give dates and locations. Use about half a page.]

[Summarize college/university and other specialized education, giving names of schools, dates at-
tended, and degrees obtained (Enclose photograph, copy of key qualification certificates). Use about
one quarter of a page.]

Employment Record:
[Starting with present position, list in reverse order every employment held. List all positions held
since graduation, giving dates, names of employing NGOs/MFIs/Comanies, titles of positions held,
and locations of assignments. For experience in last ten years, also give types of activities performed
and Executing Agency references, where appropriate. Use about two pages.]

[For each language indicates proficiency: excellent, good, fair, or poor in speaking, reading, and

I, the undersigned, certify that to the best of my knowledge and belief, these data correctly describe
my qualifications, my experience, and me.

[Signature of CEO/ED and authorized representative of the NGO/MFI/Company]


Full name of CEO/ED:____________________________________________

Full name of authorized representative: ___________________________

5. Audit Report
[Please enclose the certified Audit Report for the last two years (2000-2001).]

6. Financial Solvency
[Please enclose Bank Statement of the period for which audit report has been submitted and de-
tailed Bank Information (Name of the bank with address, Account Number(s) with operational ar-
rangement) here]

7. Organizational Structure of the NGO/MFI/Company

[Please insert the Organizational structure of the organization i.e. how it is managing its activi-
ties and how it is planning to implement the Post-Literacy and continuing Programme]

8. Familiarity of the NGO/MFI/Company in the proposed programme area

[Describe the details of office establishment and years of working experience in the proposed

9. Working Experience of the NGO/MFI/Company

Working Experience with various government or non-governmental institutions

[This is a sample format, NGO/MFI/Company may use different format if they desired]

SL. Name of the organization Status of the or- Assignment du- Major Tasks
worked with ganization ration
or Non-govern-

Integrated community development activities of the NGO/MFI/Company

(This should include credit, skill training, health, nutrition, social development and other related ac-
tivities of the NGO/MFI/Company. This is a sample format, NGO/MFI/Company may use different
format if they desired]

SL. Title of the Programme Target popula- Achievements to Lesson learned etc.
tion date