Enhancing the Business Capacity of MSMEs in Dhouk Governorate- KRI through Non-Financial Services under the ILO PROSPECTS Project – Phase II"
Call for Proposal
1\. BACKGROUND
In Iraq, PROSPECTS partnership aims to support national efforts to strengthen systems and develop/implement policies that promote inclusion and socio-economic development of forcibly displaced and host communities, whilst working closely with local authorities, business/private sector, and communities to identify, maximize, and realize opportunities on the ground. With a geographic focus on the Northern governorates of Duhok and Ninawa, the partnership focuses on three pillars, namely: education and learning; economic inclusion and protection; and critical infrastructure pillars.
Within the framework of the education and learning, economic inclusion, and critical Infrastructure pillars of the PROSPECTS partnership in Iraq, ILO’s focus is on supporting thousands of forcibly displaced persons and host community members to access more and better livelihoods and decent job opportunities. It is doing so through an integrated approach that support market-driven skills training; improve public employment services; implement labour intensive infrastructure projects; promote financial inclusion; and support business start-ups and micro, small, and medium-sized enterprises (MSMEs).
Enterprise development and Financial Inclusion component of PROSPECTS programme – Iraq

The Financial Inclusion pillar of the PROSPECTS project is structured around two core components, outlining an integrated approach to the International Labour Organization's (ILO) enterprise development and access to finance interventions:
1\. Entrepreneurship and Financial Education
2\. Access to Finance
Below is an outline of integrated approach for ILO/PROSPECTS enterprise development and access to finance interventions:
Entrepreneurship and Financial Education: ILO Toolkits
To facilitate the work on entrepreneurship and Financial Education, the ILO has developed training toolkits that are used worldwide in several countries. These include “Start and Improve Your Business (SIYB)” training and “Financial Education/FE” curricula. These tools were adapted to Iraqi context and translated to Arabic and both Kurdish dialectics (Sorani & Badini) and served the areas of PROSPECTs interventions in Dohuk and Ninawa and targeted to refugees, returnees and host communities.
In the first phase, the International Labour Organization (ILO) PROSPECTS with the support of its partners, played a crucial role in bridging the gap between supply-side actors, non-financial and financial BDS providers but also with demand-side clients (MSMEs) including startups and scale-ups. This was achieved through a multi-pronged approach involving outreach, capacity building, referrals, and risk mitigation measures facilitated through collaboration with the Central Bank of Iraq (CBI), partner banks and the Iraqi Company for Banking Guarantees (ICBG).

As a result of these efforts, ILO built the capacity of a range of public and private BDS providers on its business and financial management tools targeting MSMEs. A total of 67 national trainers were certified and in turn trained over 2,981 individuals who graduated from SIYB and Financial Education (FE) training programs.
Of these, 1170 individuals applied to access finance from partner banks and underwent in-house screening while preparing mini-feasibility studies in preparation for referral to partner banks based on the eligibility criteria agreed with banks and captured in an operations manual that included products description. A total of 480 trained clients were referred to three partner banks to explore potential loan options for starting or expanding their businesses within the areas of PROSPECTS intervention in North Iraq.

Access to finance:
Recognizing the challenges in access to finance in Iraq , ILO partnered with the Central Bank of Iraq (CBI) and the Iraqi Company for Banking Guarantees (ICBG), launched in 2019 under the "Four Trillion Initiative," to facilitate access to finance for the PROSPETS target groups. Through this in this initiative, disbursement of loans to Iraqi entrepreneurs via partner banks, utilizing an innovative guarantee scheme and a comprehensive model designed to address key entrepreneurial challenges in Iraq was facilitated. This initiative resulted in a total of 284 disbursed loans in the value of 2.92 M through the three banks, covering different sectors by the end of March 2025. This pilot showed the large size of demand for financial services, the huge impact of financial injection on productivity/income enhancement and job creation (at 1240 jobs were maintained and created through these loans). It also indicated that MSMEs are reluctant to address banks directly, hence the importance of bridging the trust gap, while working on enhancing their business and financial literacy skills.

Strengthening business development services for MSMEs in Northern Iraq

The ILO PROSPECTS Phase II initiative in Iraq seeks to enhance the resilience and economic inclusion of Micro, Small, and Medium Enterprises (MSMEs), particularly those led by or employing forcibly displaced persons (FDPs)— including internally displaced persons (IDPs), refugees—and host communities. A key pillar of this effort is the identification and partnership with sustainable, high-capacity Business Development Service (BDS) provider having operation in Dhouk Governorate.
Northern Iraq is home to over 6.3 million people and more than 150,000 MSMEs, which constitute over 50% of private-sector employment, particularly in retail, agriculture, services, and manufacturing. However, the BDS landscape is fragmented, urban-centric (mostly in Erbil and Sulaymaniyah), heavily donor-dependent, and lacks sustainability mechanisms—leaving rural and conflict-affected areas such as Duhok, Halabja, and Ninewa significantly underserved.
To address this, a comprehensive mapping and assessment of 32 BDS providers was conducted in April 2025 using desk reviews, stakeholder consultations, and a snowballing approach. The evaluation focused on institutional capacity, service range, alignment with PROSPECTS priorities, and sustainability prospects. While all providers demonstrated relevant experience in entrepreneurship training and project implementation, systemic weaknesses were observed in financial sustainability, market orientation, and monitoring and evaluation (M&E) systems.
Importantly, the current BDS environment remains driven by donor programming rather than MSME market needs, with limited engagement from financial institutions and minimal cost-recovery models. Nonetheless, some institutions have begun introducing fee-based services, while others showed strong alignment with PROSPECTS’ target groups and programmatic goals.
The findings highlight both the potential and the gaps in Iraq’s enterprise support ecosystem. This TOR seeks to formalize partnerships with active BDS providers who can design and deliver contextually relevant, inclusive, and sustainable BDS services, particularly in underserved areas and contribute meaningfully to private sector development and socio-economic recovery in Northern Iraq.
PROSPECTs Phase II: Future Direction of enterprise development and financial Inclusion component

Recognizing the need for long-term sustainability and impact beyond the initial ILO intervention, Phase II of ILO- PROSPECTS will facilitate the transition of BDS providers into sustainable, market-driven actors while strengthening the crucial links amongst entrepreneurs, BDS providers and financial service providers. To achieve this, ILO is actively seeking BDS entity/ies that are operating in Dohuk Governorate to lead entrepreneurship development and prepare suitable clients for referral to partner banks/s, ensuring they can access loans to start and grow their businesses. A phased approach will be followed to reach a sustainable business model linking the BDS provider with partner banks/s.
The ILO believes that strengthening financial management, fostering sector-specific services, building effective monitoring and evaluation systems, and formalizing partnerships with financial service providers are essential steps toward a more coordinated, impactful, and sustainable BDS ecosystem in the North region. Sustainable BDS provision refers to a market-oriented approach to supporting micro, small, and medium-sized enterprises (MSMEs) through services that are financially viable, responsive to client demand, and extend beyond basic management training to,encompass a diverse range of business needs

2\. OBJECTIVE
The overall objective of this TOR is to influence sustainable BDS provision that will go beyond subsidised business development services. During the pilot phase, participating BDS providers will seek to enhance the entrepreneurial and financial capabilities of 400 aspiring and existing entrepreneurs in Dohuk governorate — including youth, women, refugees, IDPs/returnees, and host community members—to become investment ready and referral of 150 loan applicants (IDPs/returnees and HC) amongst them to access finance through formalized structured referral mechanism established with partner bank/s of the ILO PROSPECTS programme.

This will take place through the delivery of quality-assured training on Start and Improve Your Business (SIYB) and Financial Education (FE), including post-training coaching, tailored mentorship to prepare entrepreneurs to access finance from partner bank/s. In parallel, BDS provider/s will submit a sustainability plan to phase out the subsidized training delivery into financially viable business model building on the partnership with bank/s and on clear financial projections established during the training implementation period.

2.1 Specific Objectives:

• Formalize a structured referral mechanism between BDS provider/s and PROPSECTS partner bank/s with agreed on referral mechanism steps and based on designed product/s and clear eligibility criteria to access finance for MSMEs. A report detailing the agreed working modalities will be prepared and submitted to ILO.

• Identify, mobilize, and enrol eligible clients seeking to access finance into SIYB and Financial Education training based on inclusive and transparent criteria. The BDS provider is expected to design specific activities for attracting the right candidates and inform them of the opportunity. This effort is expected to reach at least 700 potential clients to allow for attrition.

• Conduct Training Needs assessment and market segmentation to inform the design of the interventions. The BDS provider is expected to analyse the needs of the identified potential clients to include nature of business, business practices, knowledge gaps. The findings should be documented in a training needs analysis with excel file of clients submitted to the ILO prior to implementation of the training interventions.

• Deliver high-quality, gender-responsive, and contextually adapted training to 400 clients using ILO’s SIYB and Financial Education curricula thus facilitating the development of viable business plans, business improvement action plans and financial literacy among trainees. The training sessions should be conducted by ILO’s certified trainers in the relevant packages. The BDS provider is expected to identify appropriate venues, procure the stationery and training manuals to facilitate delivery of training interventions.

• Provide post-training coaching and mentoring support to 75 selected entrepreneurs (35 start-ups and 40 scale-ups) to reinforce practical application of skills. The BDS provider should design appropriate mentorship interventions appropriate for each package. There should be a clear link between the training needs identified for the clients and the mentorship outcomes. Mentorship reports need to present individual progress and how they can be further assisted.

• Assess the readiness of coached entrepreneurs for access to finance and refer at least 150( 40 start ups and 110 existing) eligible candidates to partner bank/s based on the formalized referral mechanism. (target is 100approved loan applications). Progress reports on access to finance needs to be presented to the ILO detailing number of applications received and referred, number of clients accessing finance, number of rejected applications and reasons.

• Submit an amended sustainability plan encompassing partnership assumptions, financial projections and pricing models to ensure viable non-financial service provision.

• Establish and implement a robust monitoring, evaluation, and reporting system to track progress, document outcomes, and support project learning.

3\. SCOPE OF ASSIGNMENT
Phase one: Preparation, introduction of the program in the target governorate ( Dhouk) and its districts through:
• MOU or agreement signed between BDS provider/s and partner bank/s encompassing a structured referral to allow for more focused targeting.
i. Active participation of the BDS provider with the partner bank in the product design process and in the planned trainings for relevant staff: As part of their engagement under the ILO PROSPECTS Phase II initiative, selected BDS providers will actively participate in trainings on credit appraisal with bank staff to ensure close alignment. This participatory model is expected to enhance trust between BDS providers and financial institutions, paving the way for longer-term institutional partnerships.
ii. Comprehensive outreach campaigns effectively conducted across Duhok and its, reaching potential beneficiaries from diverse backgrounds. Clear eligibility and selection criteria established aligned with both ILO training materials SIYB and FE and bank product targets, ensuring inclusivity in terms of gender, displacement status, disability, age, type of training courses, project target groups, sector.
iii. Standardized application forms created in (paper and digital (hard copies and digital copies) aligned with both ILO training material’s applications forms for SIYB (GYB, SYB & IYB) and loan application forms needed for bank/s. A transparent registration process should be successfully implemented with both digital and paper-based applications accessible to all target groups.
iv. Applications are reviewed and scored against the eligibility criteria based on the speciality of each training course to ensure fair geographic and demographic representation.
v. Validated final list of selected participants produced and shared with ILO.

Phase two: implementation of the trainings and assessment to ensure proper referrals to banks:
1\. For the entrepreneurship, the entity/s will facilitate the implementation of training workshops and graduation of 400 clients on SIYB and FE curricula.
2\. Later, the partner will conduct mini feasibility study and needs assessment for those who confirmed continued interest to access finance through selection committee established in coordination with the ILO.
3\. Coaching and mentoring will be provided to 75 ( 35 early-stage start-ups and 40 existing businesses
)based on the training results and the needs assessment. ILO trainers and other coaches will be utilized to prepare clients to fulfil the investment readiness check list
4\. Referral of 150 relevant MSMEs ensuring at least 100 access finance based on set of agreed upon criteria.
The scope of work entails implementing these services in Duhok Governorate and its districts as below:

SIYB/Financial Education (FE) Target Trainee
graduates coaching Referral to finance Loan approved Project Trainee Target Selection
Duhok SIYB:200 FE: 200
400

75 (35 early stage

150 (min 100 to obtain 100 loans
issued (20
early stage start-ups and 80 existing) For trainings:
 60% HC, 40%
IDPs/

startups, 40 existing) loan approvals)  40% women, 1.5% People with Disabilities
 40% of ages 18-35
yrs, 60% 36+
 Min education level is required (those who can’t read or write are excluded)
For loan clients:
 65% HC, 35%
IDPs/
 30% women, 1% People with Disabilities
 30% of ages 18-35
yrs, 60% 36+
Total 400 75 150 100

5\. To ensure the longer-term sustainability of this intervention, partner BDS provider will submit an amended sustainability plan verified with ILO and partner bank/s. This will take place after at least one year of project implementation, to capture the learnings from the implementation phase.
Below is a detailed list of activities that will be undertaken during these phases to ensure achievement of expected results:
Activity 1: Support with the promotion of Training of Entrepreneurs (TOEs) and loan applications and initial filter/selection of participants
This main activity consists of the following sub-activities:
Activity 1-1:Conduct an outreach campaign and enrollment of the right participants for each training that are also seeking to access finance: Under this activity, the BDS provider is expected to develop and disseminate outreach materials (flyers, social media posts, info sessions) in accessible language targeting refugees, returnees, host communities, women, youth, and PWDs. leverage existing networks of NGOs, community groups, chambers of commerce, and vocational training centres as well as through organizing targeted awareness sessions in collaboration with local stakeholders in Duhok Governorate. Outreach activities should be well-documented, and coordinated with partner bank/s, detailing communication tools used {social media channels, NGOs, Government entities, community events} coverage areas, key partners engaged and estimated reach.

Activity 1-2: Collect applications for loan applicants and trainings, filter and select the final lists for trainings based on the above-mentioned percentage distribution and following the below criteria in close coordination with ILO project team
Activity 1-3: Document training needs, through a needs assessment report and segment clients accordingly with annex of participants profiles and proposing the most cost effective and needs-based training course for the applicant.

General Criteria for all training candidates All other Businesses- Related Criteria
Early-stage start-up entrepreneurs Existing Entrepreneurs
Literacy:
Should be able to read and write Have technical skills related to the business type or recently obtained qualifying VT skills Have a viable running business
Age: 21 -55 years Have a concrete business idea and proven Minimum Viable Product (MVP) Experience in business
Gender: at least 40% females 40%IDPs/returnees Motivation and availability to start a business Position in business

Further criteria for early-stage start-ups will be discussed to ensure admitting the right trainee caliber with the most viable business idea/plan that respond to market challenges and have potential for growth, which can be referred to later activities in the program. For Financial education trainings, the participants will be selected from the SIYB program graduates that fulfil referral criteria.

Activity 2: Preparation and delivery of the ILO’s SIYB and Financial Education Training of Entrepreneurs
(ToEs)

The TOEs, which should be conducted by certified SIYB trainers ( list of the certified trainers will be submitted by ILO) should be structured to be conducted according to set number of days - below table summarizes the courses needed and # of hours expected to complete them. PROSPECTS expects an equal distribution of training activities throughout the implementation agreement period. This involves the preparation of training materials, stationary items, and rental of suitable training venues, catering service, and contracting of trainers from the pool of ILO certified trainers per each course/topic. Financial education training will be delivered after the conclusion of the SIYB training for the graduates and might include existing businesses who applied to obtain a loan but don't require IYB training based on the needs assessment. Towards this end,
Activity 2.1 : BDS provider is expected to prepare an overall training plan for the project period in line with the below parameters:

No. Training topic1
No. of graduates Expected Training sessions Duration Suggested # of Trainers

1\.

Start Your Business (SYB)

100 Dhouk

6 40 hrs training
follow-up coaching for 2 workdays per each early- stage start- up
Total: 8 workdays One or two
trainers per course (depending on # Of trainees)

2\.
Improve Your Business (IYB)
100 Dhouk
6 Minimum 20 hours (3 days) Follow up coaching of 1 workday
Total: 4 workdays One trainer per course
3\. Financial Education training (FE) 200 Dhouk Governorate 12 18 hrs./training
3 days One trainer

\- For the training material, ILO will provide the soft copies of manuals needed, pre/post knowledge surveys and evaluation forms for printing in Arabic language.
\- For the stationary, and per each training course the NGO should supply the trainers with all needed items to facilitate the training workshop including the standard following list:

Main stationary needed per course (4 days average.) Quantity
Set of markers (4 colours each) 5
Flip charts papers 3
Set of Coloured stickers (4 colours each medium sizes) 4
Colored post-it note: small and medium sizes 4
Adhesive tape 3
Ruler 50 cm 5
Pack A4 papers 1
Scissors 1
Certificate (template provided by ILO) 1 per participant
Pens + pencils 1 per participant
Folder and A4 note pad (Provided by ILO) 1 per participant
Activity 2.3 The training venues to be used for delivery of the planned workshops should comply with minimum social distancing measures and should be at least 100m2 in space (per 20 participants). Each room should be prepared with the following requirements to ensure proper training delivery:

1 SIYB trainers under certification will require at least 5 courses of GYB and 5 courses of SYB and 10 courses of IYB. Once certified, the remaining courses should be fully accounted for in fees costs.

Main Equipment in each training hall Quantity
Tables for trainees- round shape 4
Chairs 1 per participant
Proper functioning AC or heating system to ensure moderate room temperature
throughout the training hours 2
Rectangle tables outside the hall for placing coffee break and/or lunch 4
Hygiene gel- one per table 5
Disposable masks 25
table rectangle shape for trainers to place items 2
Wall screen 1
Video projector 1
wall or blackboard to hang Flip charts 2
Printer for emergency printing 1
Flip-Chart stand 2

Activity 2.4 For the transport of the training participants to the training venues, ILO/PROSPECTS will pay/reimburse participants a small symbolic transport fees, paid on the last day of the conclusion of training for graduates only. Moving forward and gradually, this component need to be relinquished, where loan applicants will be requested to pay instead for the training services to be offered. This along with other measures should be included in the sustainability plan submitted by the implementing partner.
Activity 2.5 For the catering services, the entity should contract a good quality catering company that is able to meet all training catering needs per governorate. It is established that courses which require a max of four hours per day will need one rich coffee break only, while courses of 6/7 hours per day will need one lunch break and one coffee break.
Activity 2.6 : Regarding the trainers, the entity should coordinate with ILO/PROSPECTS team to identify the certified trainers in both training programs, where they can be recruited directly by the entity according to the training plan schedule based on standard daily fees and they should be accounted for in the lunch/coffee breaks.
Across all training courses, the entity needs to ensure proper visibility of ILO’s PROSPECTS program and acknowledges the donor’s funding. PROSPECTS will provide the soft copy of the content of the Roll-up banners, folders and other visibility materials that should be used in all training courses. Proper photos to document the trainings should be taken and shared with PROSPECTS team.
Tasks to complete this activity: These will entail the following:
• Prepare a training plan with clear dates and schedules, shared with PROSPECTS team.
• Call for and contract of SIYB, FE trainers
• Logistics preparation/contracting - venues, stationary, catering, training material, transport fees, etc.
• Share with all stakeholders final agreed training dates

• Conduct the trainings based on the scheduled plans and adjust as needed, fill in the monitoring forms and ensure measurement of the improvement of the knowledge/skills and filling in the M&E framework.
• Based on the trainings, recommended lists of graduates that need coaching and are interested to continue access to finance referrals will be identified.

Activity 3: Provide post training coaching support services for 75 early-stage start-ups and existing business:
The implementing partner is expected to design a results-based mentorship process that clearly links with the outputs of the training interventions. It will target at least 35 early-stage start-ups and 40 existing businesses (2 workdays per early-stage start-up and one workday for existing businesses). Mentorship approach and tools need to be developed by the selected entity:
Activity 3.1 : Develop and deliver a structured mentorship programme that builds directly on the knowledge and skills gained through the SIYB and Financial Education training, with a clear focus on achieving practical, measurable outcomes.
Activity 3.2 Ensure that coaching sessions specifically tackle the key gaps identified in each business’s
viability, financial literacy, and readiness to access finance
Activity 3.3 : Provide hands-on support to MSMEs in preparing strong, credible business plans, realistic financial forecasts, and complete loan applications that meet the expectations and requirements of partner banks.
Activity 3.4 : Actively guide MSMEs through the process of connecting with financial institutions, ensuring they are fully prepared for successful referrals through tailored, targeted support.

Activity 4: Access to finance services: This encompasses two main engagements:

Activity 4-1 : BDS provider/s engagement in Financial Product/s development process:
As part of their engagement under the ILO PROSPECTS Phase II initiative, selected BDS providers will actively participate in the training on tailored loan and financial products to be offered through the project’s partner bank/s. This collaboration is a critical component of ensuring that financial services are demand-driven, inclusive, and reflective of the real operational needs and constraints of MSMEs, particularly those led by forcibly displaced persons and women/Youth.
The involvement of BDS providers in understanding financial product will foster deeper alignment between non-financial and financial service providers which enables BDS institutions to play a strategic intermediary role, translating MSME insights into actionable financial solutions. Hence, relevant teams from the BDS provider who will be involved in the initial assessment of the MSMEs and their referral to bank/s, will be invited to attend training with bank staff on the designed products and proper credit appraisal.
This participatory model is also expected to enhance the credibility and trust between BDS providers and financial institutions, paving the way for longer-term institutional partnerships. Importantly, it strengthens the sustainability of the referral and support mechanisms by embedding BDS providers more firmly in the MSME financing ecosystem, beyond the life of the project.

Activity 4-2 : BDS role in referral of 150 graduates from the training to partner bank/s (40 early-stage startups and 110 scaleup)
The implementing partner had already liaised with partner bank/s and its staff trained on specific eligibility criteria for accessing loans to be referred to banks/s. The criteria will be integrated into the identification of overall training needs, ensuring that the identified requirements are fully incorporated into information sharing and the preparation of participating enterprises to make them truly investment ready. Furthermore, the design of the SIYB and FE training delivery will specifically accommodate dedicated stakeholder sessions where the bank staff will be allocated a segment to directly share the available products and services with the enterprises to confirm their interest and readiness to access finance.
Building on this, the implementing partner is responsible for ensuring that all MSMEs referred to these financial institutions fully comply with clearly defined Investment Readiness Standards and Eligibility Criteria defined in the product design phase and agreed with partner bank/s. These standards contain critical areas such as business planning, financial management, market position, governance, and the specific purpose of the loan. A standardized Investment Readiness Checklist shall be utilized to rigorously assess and document each MSME's readiness. Furthermore, MSMEs that do not meet these minimum standards must receive targeted coaching to effectively address identified deficiencies prior referral to the bank/s.
1\. To select eligible clients that fulfil min requirements, the implementing partner will conduct a mini- feasibility for each of the applicants who confirmed their interest to access finance. This can take place initially through committees to train BDS staff with support from ILO. Each application will be scored against the Investment Readiness Checklist to determine its “investment-ready status”. The checklist will be developed in consultation with the ILO, partner bank/s and will follow the 5 Cs credit appraisal principles and bank specific eligibility criteria.
2\. Organize joint workshops and meetings with bank staff after the kick off, of this collaboration model including success elements, challenges, and recommendations which will be used or strengthening MSME financing pathways under the project and designing the amended sustainability plan.

Activity 5: Submit an amended sustainability plan that will build on the lessons learned throughout the implementation period:
This will be submitted one year after the project kick off date, reviewed and verified by ILO and technical experts. It will also be discussed with partner bank/s, as it will encompass some cost recovery elements from the bank side. ILO will provide technical support to capacitate partner BDS provider in the finalization of these plans and accompany the BDS provider while it signs an agreement with partner banks to support cost recovery for the sustainability plan. This is a critical step towards a phased-out approach from complete subsidized services to cost recovery and sustainable delivery of BDS by implementing partner.

Activity 6: Follow-up, documentation, M&E and reporting
The Entity will put in place a monitoring/evaluation system to collect all needed documentations/information from the trainees/trainers and coaches about the training workshops, in addition to the entrepreneurship training and access to finance M&E requirements. ILO will provide

technical support in the development of the M&E system in addition to some excel forms for reporting the progress of activities and their results. Additionally, the entity will support the ILO communications team in producing a professional video for the trainings, coaching parts and successful case studies that managed to access finance from bank/s. The documents needed will include the following:

Documents Time for submission
MOU agreement signed between BDS provider/s and partner bank/s encompassing a structured referral 2-3 months from project kick off
Excel List of final selected/enrolled loan applicants/trainees Immediately after selection
Signed daily attendance sheet for trainees using the template provided by the ILO one week after course completion (stored in shared folder)
Summary of training evaluation forms (to be used to improve the training services) In the monthly report
Excel list of 400 graduates from each training course with summary of their skill improvement level and further mentoring needs In the monthly report
Excel List of selected case studies for coaching and follow up including needs analysis In the monthly report
Excel list of coaching and business support services provided for each of the selected 75 case studies In the monthly report
List of 150 selected applicants referred to partner bank/s with monthly updates on approval/rejection and list of disbursed loans along with status of each application In the monthly report
Sustainability plan amended and official agreement with partner banks One year after project kick off
Professional Photos taken of training courses and trainees and support to ILO communication in producing one video Photos posted in a shared folder regularly

Tasks to complete this activity:
These will entail the following:
• Establish a monitoring and evaluation framework including baseline and end line indicators to monitor progress against the targets and skill improvement following trainings and coaching, in addition to indicators to capture the referral to access finance results
• Provide monthly, progress and final reports to ILO on the progress of the project.

4\. Key Components of the Assignment:
1\. Participant outreach and selection

• Outreach campaign reaching at least 700 interested applicants and selection is in line with the agreed eligibility criteria and demographic targets (e.g., gender, age, IDP/HC status, disability inclusion).
• Submission of validated trainee list with disaggregated data and ID documentation prior to commencement of training sessions.

2\. Entrepreneur database and needs analysis
• Submission of a database of selected entrepreneurs and a detailed needs analysis report.

3\. Training logistics and materials
• Full logistical organization including venue arrangement, materials preparation, catering, and transport reimbursements. This includes procurement and preparation of training materials and stationery (as per standard list provided), securing and equipping appropriate training venues that meet health, safety, and technical requirements and disbursement of symbolic transport reimbursements to eligible trainees upon course completion among others.

4\. Sustainable Business Model
• Submit a sustainable BDS provision plan outlining diversified revenue streams—such as fee-for- service, partnerships, and client-focused services—ensuring financial sustainability and accessibility for vulnerable groups.

5\. Training delivery
• Submission of an annual training plan and calendar developed with ILO and SIYB/FE trainers, outlining session dates, venues, assigned trainers, and course targets.
• Trainings conducted using certified trainers, ensure assessment and attendance tracking, and issue certificates to participants with at least 80% attendance.
• Delivery of SIYB and Financial Education training to 400 participants across Duhok and its districts ,.

6\. Coaching and business support
• Coaching and post-training support for 75 graduates.
• Referral of 150 graduates to partner financial institutions, with documentation of support provided ensuring at least 100 loans are disbursed with partner bank/s.

7\. Monitoring, Evaluation, Accountability and Learning (MEAL)
• Establishment and implementation of a MEAL system to track training outcomes, course completion, referral system and A2F outcomes and participant satisfaction; submit monthly progress reports, updated client data, photos, and a final report with lessons learned and recommendations.

8\. Visibility and branding
• Consistent visibility of ILO PROSPECTS and donor recognition across materials and venues, following branding guidelines.

• Use of branded roll-up banners, folders, certificates, and dissemination of photographic documentation in alignment with ILO branding guidelines.

5\. DELIVERABLES
The selected BDS’s company will produce the following deliverables:
Deliverable 1:
Outreach campaign reaching at least 200 interested applicants and selection is in line with the agreed eligibility criteria and demographic targets (e.g., gender, age, IDP/HC status, disability inclusion).
Deliverable 2

Outreach campaign reaching at least 500 interested applicants and selection is in line with the agreed eligibility criteria and demographic targets (e.g., gender, age, IDP/HC status, disability inclusion).
• signed Mou with relevant bank partner
• Submission of a database of selected entrepreneurs and a detailed needs analysis report.
• 1st progress technical report to the satisfaction of the ILO.

Deliverable 3 :
Upon the completion of training courses and submitting:
• lists of 200 graduated trainees from SIYB & FI
• 35 coached graduates
• 70 referred to access finance along (40 loans issued)
• Amended sustainability plan
• Submitting relevant documentation of monthly reports for the above activities
• 2nd technical Progress Report to the satisfaction of the ILO.
Deliverable 4:
Upon the completion of additional training courses and submitting:
• lists of 200 graduated trainees
• 40 coached graduates
• 80 referred to access finance (60 loans issued)
• Submitting relevant documentation and monthly reports
• Final progress Technical Progress Report to the satisfaction of the ILO
• submitting the relevant documentation for the above activities and monthly reports

Each deliverable is expected to be submitted for ILO approval before considered final. The ILO will review initial drafts before finalization and onward continuation with the exercise.

6\. The Role of ILO
As part of its mandate under the PROSPECTS Phase II initiative, the International Labour Organization (ILO) will play a facilitating and enabling role in strengthening the institutional capacity and creating sustainable linkages between non-financial and financial service providers and the sustainability of selected partner Business Development Service (BDS) providers in Northern Iraq.
Rather than directly delivering services, the ILO will act as a strategic convener and technical advisor, working closely with local BDS institutions to support their transition from donor-dependent models to sustainable, market- responsive service delivery systems. The ILO’s support will focus on three core areas:
1\. Capacity strengthening and institutional development
The ILO will provide tailored technical assistance and coaching to help partner BDS providers improve internal systems, including governance, financial management, service quality, and performance measurement. This includes strengthening their Monitoring, Evaluation, Accountability, and Learning (MEAL) frameworks to better assess outcomes, inform service design, and align with impact-oriented goals.
2\. Business model transformation
Through structured dialogue and practical steps which build on lessons learned, the ILO will guide partner institutions in rethinking their business models: shifting from grant-based programming toward diversified revenue strategies, including fee-for-service mechanisms, win-win partnerships, and client-driven offerings. Emphasis will be placed on ensuring that services remain accessible to vulnerable groups while building financial viability.
3\. Ecosystem linkages and market access
The ILO will facilitate stronger connections between BDS providers and financial service provider/s. By brokering partnerships and promoting integrated service approaches, the ILO aims to embed BDS institutions more deeply into the local enterprise ecosystem, enhancing their relevance and reach.
Ultimately, the ILO’s role is to catalyse a shift from fragmented, short-term BDS delivery to sustainable, inclusive enterprise support systems that are anchored in local ownership and responsive to the evolving needs of MSMEs, particularly those led by forcibly displaced persons and host communities.

7\. QUALIFICATIONS AND REQUIREMENTS
1\. Technical Proposal (70%)
The Technical proposal will contain 70% weight, whereas Technical Evaluation passing score is 60%. Any applying entity that scores less than 60% in Technical Evaluation shall not be considered for financial evaluation. The technical proposal is expected to be submitted by the bidders in the following structure:

1\. Institution’s profile demonstrating required capacity and local presence/activities in North Iraq (Dohuk Governorate), summarizing experience and work undertaken in providing BDS trainings and work with FDPs and Host community of mentioned governorates.

2\. Detailed description of relevant experience related to large scale entrepreneurship training delivery and early-stage start-up development and coaching experience with MSMEs, financial education if any.

3\. Detailed sustainability plan detailing how the institution will continue to provide the required BDS services to benefit the target group. This plan needs to demonstrate the characteristics of demand led BDS provision and cost recovery among others.

4\. Summary of the proposed methodology, implementation plan and M&E along with proposed plan for linking entrepreneurs with access to finance (referral)

5\. Detailed work plan with a timetable related to the different activities

6\. CVs of Team leader, M&E officer along with proposed CVs for at least 3 experts for coaching support demonstrating their capacity to conduct the assignment

7\. Foreseen challenges during the implementation of the project and mitigation measures.

The Technical proposals will be evaluated in accordance with the criteria stated below:

Description of Technical Evaluation Score
1\. Relevant Experience of the institution in organizing/delivery of BDS training workshops for for MSMEs.
Experience in delivery of ILO tools and working with the UN or ILO is an advantage. 20%
2\. Strong field/onsite presence in KRI – having presence in Dhouk will be an asset (offices and staff) 15%
3\. Previous experience in supporting entrepreneurship coaching, start-up development and investment readiness for MSMEs in North Iraq. Previous experience collaborating with banks and financial institutions in North Iraq is an advantage 25%
4\. Process and methodology of implementation (training plan, outreach strategy, sustainability plan, value add by the organization including referral to access finance is important, others). 25%
5\. Human Resources proposed for the assignment including team leader, SME associate, M&E and Logistics Support Officer, detailed CVs are required 15%
Clarity of the proposal, provision of all required documentation, and innovative delivery are considered as a cross-cutting measurement
criteria.

2\. Financial Proposal (30%)
The financial proposal will contain 30% weight. The bidders shall complete the financial proposal using the Annex II- E-Financial Form , and submit both the Excel version and the Pdf version signed and stamped. The financial proposal shall demonstrate:
• Activity costs (all related training costs, coaching costs, referrals, etc)
• Staffing costs (team leader, admin/fin support, experts/coaches, etc)
• Overhead costs and other costs associated with the project (including travel, printing, etc)
30% will be awarded to the submission with the lowest price.

8\. ASSIGNMENT DURATION AND PAYMENT SCHEDULE
This contract will be implemented over a period of 15 months from the date of agreement signature - including the preparation phase. The implementing partner is responsible for informing the Sr National Project Coordinator - Financial Inclusion in advance in case of any unforeseen delays or changes.. According to the ILO policy, payments are processed within 30 days after receipt of services and the clearance of the ILO team. Payments will be performed once upon satisfactory submission of deliverables to the ILO team as per the below payment schedule:

Deliverable # Deliverable details / description Time frame weight of payment
1 Outreach campaign reaching at least 200 interested applicants and selection is in line with the agreed eligibility criteria and demographic targets (e.g., gender, age, IDP/HC status, disability inclusion). 1 month after signing the contract 5% of the total contract amount
2 Outreach campaign reaching at least 500 interested applicants and selection is in line with the agreed eligibility criteria and demographic targets (e.g., gender, age, IDP/HC status, disability inclusion).

• signed Mou with relevant bank partner
• Submission of a database of selected entrepreneurs and a detailed needs analysis report.
• 1st progress technical report to the satisfaction of the ILO. (2
months after signing the contract) 30%
3 Upon the completion of training courses and submitting:
• lists of 200 graduated trainees from SIYB & FI
• 35 coached graduates
• 70 referred to access finance along (40 loans issued)
• Amended sustainability plan
• Submitting relevant documentation of monthly reports for the above activities
• 2nd technical Progress Report to the satisfaction of the ILO. 9 months after signing the contract) 40%
4 Upon the completion of additional training courses and submitting:
• lists of 200 graduated trainees
• 40 coached graduates
• 80 referred to access finance (60 loans issued)
• Submitting relevant documentation and monthly reports
• Final progress Technical Progress Report to the satisfaction of the ILO
• submitting the relevant documentation for the above activities
and monthly reports 12
months after signing the contract) 25%
TOTAL 100%

9\. PROPOSAL SUBMISSION PROCEDURE
The submission should include a technical proposal along with a sustainability plan of how they intend to undertake the assignment and the phased out approach, and a financial proposal with a detailed breakdown of all costs related to the delivery of the business development services.

● Technical proposal:
o A technical proposal (max. 10 pages) summarizing proposed approach, sustainability plan and work plan
o Updated curriculum vitae(s) of key staff
o Evidence of similar work done and experience to undertake the assignment.

● Financial proposal:
o Detailed budget breakdown (using the provided template)