Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697646582687.pdf (Bahamas)
REQUEST FOR PROPOSAL ISSUED BY THE GOVERNMENT OF THE BAHAMAS Consultancy Services for Development of Capital Market Solutions to Revitalize the Mortgage Market in The Bahamas The Ministry of Finance of The Bahamas is seeking proposals for consultancy services to assist in the further development and implementation of its plans to encourage the revitalization of the mortgage market in The Bahamas.
The Ministry’s goal is to increase the role of private capital in the mortgage market to maintain credit availability, increase opportunities for access to affordable housing, make optimal use of available housing stock and boost foreclosure prevention activities for new and refinanced mortgages.

In so doing, the Ministry hopes to promote liquid, efficient, competitive, and resilient national finance markets.
Background At June 30, 2020, total mortgage loans held by domestic banks in The Bahamas stood at $2,627.0 million with residential mortgages representing $2,486.1 million or 94.6% of that amount.

Mortgages in arrears totaled $397.4 million with non-accrual mortgages totaling some $273.5 million or 62.2% of total non-accrual loans.

Total provisions to total private sector loans stood at 7.8% while total provisions to total non-performing loans stood at 113.4%.
It is understood that the full impact of COVID-19 is not reflected in the above numbers due to loan payment deferrals offered by financial institutions.

The banks have however, increased their provisioning for loan losses due to the uncertainty surrounding the pandemic.
The Ministry is requesting proposals for the purpose of building out its initiative to boost the housing market by creating capital markets structures that will aid in increasing homeownership and allow for more efficient utilization of the country’s housing stock.

It is proposed that with the possible initial involvement of the government as a catalytic small investor (no greater than 20 percent equity stake) a residential real estate investment structure be created to: i. ii.
purchase non-performing mortgage loans from financial institutions in the local market with a view to renegotiating and offering revised payment terms to borrowers; purchase foreclosed properties and offer them for sale or lease through traditional and rent-to-own financing.

Deliverables Deliverables of this consultancy include but are not limited to: i. Overview of the Bahamian housing market and the potential opportunities for ii.
optimizing utilization of housing stock through the real estate investment structure ; Prospects for developing a sub-fund or similar appropriate structure for the acquisition, development and/or subsequent resale of distressed commercial properties, particularly in New Providence and Grand Bahama iii.

Details of the corporate and operating structures of the entity/entities through which the requisite activity will be performed; Bidder’s level of participation as a sponsoring shareholder; iv.
v. Details of plans to attract institutional and retail investors to raise capital to fund the investment structure; vi.

High level ten year business plan; vii.

Options for Rent to Own and other models for ownership; viii.

Framework for maximizing value of assets acquired and utilizing foreclosure prevention activities; Key success factors.

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Qualifications It is recognized that no individual entity may have all of the qualifications required below therefore bidders may form strategic alliances with other firms in the form of joint ventures or sub-consultancies to enhance their qualifications.
It is expected that bidders responding to this proposal will have a history of successful performance in the following areas:  Placement/distribution of capital market products in The Bahamas;  Creation and sponsorship of investment funds including history of successful performance and returns in market; Investing in non-performing loan portfolios;  Knowledge of non-performing loans and participation in workouts;   Resolution of loans through alternatives to foreclosure;  Property management.
Submission of Bids The Bidders responding to this RFP should ensure that their response contains the following:  The deliverables set out in this document;  A price proposal;  Profile of all entities joining together to submit a proposal - profiles should contain an outline of relevant qualifications, experience and personnel.

At the time of submission of bid, all Government of The Bahamas tax obligations must be current.
Questions/Clarification questions Any to RFP must tendersboard@bahamas.gov.bs on or before February 11th, 2021.

A response to each question will be provided to all bidders, without identifying the source of the questions.
in writing concerning submitted the be Evaluation Factors The following elements will be given primary consideration in evaluating bids:  The extent to which Bidder’s proposed solution fulfills the stated requirements as set out in this RFP;  An assessment of the Bidder’s ability to deliver the indicated solution;  The Bidder’s stability, experience and record of past performance in delivering such services;  Overall cost of Bidder’s proposal Method of Submission Bids to this tender may be submitted electronically via e-mail to tendersboard@bahamas.gov.bs with the subject “RFP - Homeownership Revitalization”.
Paper submissions may be delivered to the following address: CHAIRMAN Tenders Board, Ministry of Finance, c/o Acting Financial Secretary Cecil Wallace-Whitfield Centre, P.O.

Box N-3017 West Bay Street, Nassau, Bahamas The envelope must be labelled “RFP - Homeownership Revitalization”.

Submission Deadline The deadline for submissions of responses to this tender has been extended from February 5th, 2021 to February 26th, 2021, using one of the submission methods described above, by 5:00pm.
Submissions received after this date will not be considered.

The Ministry of Finance reserves the right to reject any and all proposals at any time.

The Ministry reserves the right to cancel, withdraw, modify or reissue this RFP at any time for any reason.

The Ministry also reserves the right to waive any technicalities and make any award(s) that it determines to be in the country's best interest.
The Ministry will determine the timing and content of any and all announcements or public statements relating to any part of this RFP process.

No Bidder shall make any public statements or release any information regarding this process without the prior approval in writing of the Ministry.