We are delighted to announce the release of the Rhino ... · banks. However, this investment capital may also be blended with catalytic, patient donor capital in order to generate

We are delighted to announce the release of the Rhino Impact Investment Financing Mechanism Finance Manager and Performance Manager Request for Proposals (RfP).

The Rhino Impact Investment Project is seeking to address rhino conservation using an outcomes-based financing model, building the first such instrument for species conservation targeting a financial return.

The RFP, available for download from this site at the bottom of the Project Information section, is the culmination of more than a year of preparation—convening partners, building a theory of change, identifying geographies most vulnerable, site identification and shortlisting, and now investment readiness.

In the attached document you will find the Terms of Reference for the two positions we are recruiting for in the RfP, a Performance Manager, and a Finance Manager.

We welcome your feedback, and please do share this with your networks.

Questions or requests for clarification can be submitted to [email protected] by no later than 5 January 2018 1pm CET.

The proposals must be submitted no later than Sunday 14 January 2018 1pm CET, to [email protected].

Organisations are recommended to bid individually, consortia are not preferred.

The chosen candidate will be notified at the end of January 2018. Please note that there is a specific commitment requirement to be available 13-18 March for a pre-arranged Rhino Management Meeting and technical rhino conservation onboarding workshop in South Africa.

Thank you and best wishes,

RII Project

The Rhino Impact Investment (RII) Project is an initiative of United for Wildlife (UfW), an unprecedented partnership between seven of the world’s leading wildlife charities, including the Zoological Society of London (ZSL), and The Royal Foundation of The Duke and Duchess of Cambridge and Prince Harry.

mailto:[email protected]


Page 1 of 48

RII Financing Mechanism: Finance Manager and Performance Manager Terms of Reference And Requests for Proposals November 2017

RII FM and PM RfP Page 2 of 48

Contents Acronyms .......................................................................................................................................... 3

Definitions ........................................................................................................................................ 4

1. About the Rhino Impact Investment Project .................................................. 6

1.1. The Rhino Conservation Challenge .................................................................... 6

1.2. RII Project Approach ................................................................................................. 7

1.3 Investment Readiness .................................................................................................. 8

1.4 Investment Preparation: Structuring of the Financing Mechanism and Route to Implementation ............................................................................................ 10

1.5 RIIFM Implementation, Support and Portfolio Monitoring ................... 10

2 RII Finance Manager Terms of Reference ........................................................... 22

2.1 Product Development Phase Outputs and Activities ................................ 22

2.2 Investment Preparation Phase .............................................................................. 22

2.3 Reporting Lines: .............................................................................................................. 24

2.4 Responsibilities ............................................................................................................... 24

2.5 Requirements ................................................................................................................... 25

2.6 Accountabilities ............................................................................................................... 25

3 RIIFM Performance Manager Terms of Reference ......................................... 26

3.1 Product Development Phase Outputs and Activities ................................ 26

3.2 Investment Preparation Phase .............................................................................. 27

3.3 Reporting Lines: .............................................................................................................. 28

3.4 Responsibilities ............................................................................................................... 28

3.5 Requirements ................................................................................................................... 29

3.6 Accountabilities ............................................................................................................... 29

4 Rhino Impact Investment Request for Proposals .......................................... 30

4.1 Context ................................................................................................................................. 30

4.2 Objective of the Request for Proposals ............................................................ 30

4.3 Scope of Work and Expected Results ................................................................. 30

4.4 Expertise Required ........................................................................................................ 31

4.5 Timeline ............................................................................................................................... 31

4.6 Applicant Technical Data ........................................................................................... 32

Annexure 1: Draft RII Investment Readiness Criteria ........................................ 37

Annexure 2: Draft Rhino Impact Investment Outcomes-Based Financing Mechanism Key Performance Indicators ..................................................................... 44

Contact Us ...................................................................................................................................... 48


Acronyms AfRSG African Rhino Specialist Group AsRSG Asian Rhino Specialist Group CFTC Conservation Finance Technical Committee CITES Convention on International Trade in Endangered Species of Wild Fauna

and Flora GEF Global Environment Facility IUCN International Union for Conservation of Nature KPI Key Performance Indicator M&E Monitoring and Evaluation NGO Non-governmental organisation ODA Official Development Assistance PA Protected Area PB Project Board PMU Project Management Unit PM Project Manager RII Rhino Impact Investment RIIFM Rhino Impact Investment Financing Mechanism SPV Special Purpose Vehicle SSC Species Survival Commission ToC Theory of Change ToR Terms of Reference UfW United for Wildlife UK United Kingdom UNDP United Nations Development Programme USD United States Dollar ZSL Zoological Society of London


Definitions

Term Definition Donor Agency

Providers of Official Development Assistance (ODA), including multilateral and bilateral agencies such as the World Bank or DFID

Finance Manager

The Finance Manager for the RII Project will be the focal point for financial structuring, fundraising, oversight of the Performance Manager, financing deployment and payout mechanisms as well as investor relations and administration.

Impact Investor/s or Investor/s

In this project investors may primarily consist of impact investors, i.e. any individual or organisation acting in its capacity as an investor to intentionally generate social and/or environmental impact alongside a financial return. Impact investors may include high net worth individuals, philanthropic foundations, asset managers and private banks. However, this investment capital may also be blended with catalytic, patient donor capital in order to generate an acceptable risk-return profile.

Impact Outcomes Auditor

An independent third party who will audit the results of the RII financing mechanism and verify the impact reported by the implementing entities (Implementers).

Implementer Refers to a partnership between a local (site-specific) Management Agency, Intermediary Team and Impact Investors for the purpose of executing interventions.

Intermediary Team

Refers to the Performance Manager and Financel Manager together.

Investment Readiness

In this instance, investment readiness signifies that any given shortlisted priority rhino site displays the ecological, managerial and financial capacity and capability to seek, utilise and manage investment capital. Investment ready rhino sites are those that have been brought up to an approved acceptable level of capacity and performance during component 2 of the RII – this acceptable level will be defined during component 1.

Key Performance Indicator (KPI)

A means of attaching a value or measure to those outcomes and impacts of an investment which when reached indicated the benchmarks of success. Also referred to as output or outcome metrics, or performance metrics. In the RII Financing Mechanism KPIs will act as payment triggers.

Management Agency

The Management Agency is the government, NGO or private sector organization which is responsible for the management of a Protected Area site.

Outcomes Payer

A donor agency, e.g. the GEF, World Bank or DFID, or philanthropic donor contracted to pay back the investor their capital and possibly a return once pre-agreed outcomes have been achieved and independently verified.

Outcomes-based Financing Tool

The outcomes-based financing tool in this instance refers to investors providing up-front working capital to fund conservation activities. Donors become ‘outcome-payers’, only repaying impact-investors’ initial investment and potentially a return (in the form of interest) once the activity has achieved the previously agreed results.

Performance Manager

The Performance Manager is responsible for supporting the site Management Agencies with the implementation of the RII intervention mandate in order to maximise RII outcomes and investor returns. The Performance Manager reports to the Finance Manager.

Philanthropic Donor

An individual or an organization which makes a gift to usually a non-profit organization, charity or private foundation. Charitable donations


are commonly in the form of cash, but can also take the form of real estate, motor vehicles, appreciated securities, clothing and other assets or services.

RII Financing Mechanism (RIIFM)

A scalable outcomes-based financing mechanism that directs additional private and public sector funds to improve management effectiveness of priority rhino populations, developed by, and an output of, the RII Project.

RIIFM Conservation Committee

The RIIFM Conservation Committee is responsible for reviewing and conducting technical due diligence on sites’ intervention strategies (Theory of Change), project plans and budgets in order to assess their ability to deliver and report on targeted rhino outcomes. The RIIFM Conservation Committee works with site Management Agencies to develop site-level funding proposals which the RIIFM Conservation Committee endorses and recommends to the RIIFM Investment Committee for approval. The RIIFM Conservation Committee also provides technical expertise to the RIIFM Management Committee, to maximise funded intervention strategies’ outcomes by proactively working with respective site Management Agencies. This will also be the formal mechanism through which the Performance Manager reports back to the Finance Manager on the performance of the portfolio of sites and interventions, and seeks to proactively maximise funded intervention strategies’ outcomes.

RIIFM Investment Committee

The formal mechanism through which the Finance Manager interrogates and approves the recommendation of the Performance Manager regarding funding of site-specific rhino conservation intervention strategies.

RII Project A three-year testing phase to assess the feasibility of using outcomes-based financing to ensure long-term, sustainable funding for critical conservation areas using rhinos as an initial focus, the output of which is the RII Financing Mechanism.

Service Provider

A single or any combination of public agencies, private companies and non-profits that deliver the intervention being invested into as part of the outcomes-based investment. Also referred to as a ‘delivery agent’. In the context of RII, the service provider may be the Protected Area (PA) Management Agency (whether a private game ranch owner, government conservation agency, community conservancy or non-governmental conservation organisation).

Special Purpose Vehicle (SPV)

A special purpose vehicle is a legal entity that is created solely for a particular financial transaction or to fulfil specific objectives. Forming an SPV is a common approach when contracting with a group of entities in public private partnerships. SPVs can play an enabling role in the legal, financial and operational structure. Investors’ funding is channelled into the SPV, which then acts as the delivery body for the intervention. An SPV is appropriate when there are multiple investors and providers as it mitigates the need for each party to contract individually with one another; the capital and risk can be pooled. Furthermore it minimizes the level of on-going engagement required of each of the parties involved in the impact bond as the SPV manages all finance.

Theory of Change (ToC)

The sequence of outcomes that is expected to occur as a result of an intervention. It forms both a plan as to what outcomes are expected, how the outcomes are to be achieved, and an explanation of how they have occurred (explained after the event).


1. About the Rhino Impact Investment Project Despite successful rhino population gains over the 1990s there are now new pressures threatening these gains. Increasing demand for rhino horn is escalating the illegal wildlife trade and presenting many challenges. Traditional rhino conservation funding models have fallen short of expectations of increasing rhino numbers — either from ineffective interventions, limited duration, or exclusion of critical stakeholders. Therefore, a solution should be flexible and long-term to enable adaptive conservation management to maximise rhino growth. The Rhino Impact Investment (RII) Project is seeking to address rhino conservation using an outcomes-based financing model, building the first such instrument for species conservation targeting a financial return. The RII Project is an initiative of United for Wildlife (UfW), an unprecedented partnership between seven of the world’s leading wildlife charities and The Royal Foundation of The Duke and Duchess of Cambridge and Prince Harry. Implementation of the Rhino Impact Investment Project is led by the Zoological Society of London (ZSL) and the Project is funded by the Global Environment Facility, the UK Government through the IWT Challenge Fund, UfW and ZSL. The United Nations Development Programme is the GEF Agency acting as the operational arm of the GEF to implement and execute Project activities consistent with both the GEF mandate and national sustainable development plans. The Rhino Impact Investment Project receives implementation support on technical conservation, conservation finance and legal issues from a number of Implementation Partners including Credit Suisse, DLA Piper, Fauna & Flora International (FFI), the IUCN SSC African and Asian Rhino Specialist Groups (AfRSG and AsRSG), Kenya Wildlife Services (KWS), The Nature Conservancy (TNC), UBS and WWF-UK. UfW is working to combat the illegal wildlife trade through supporting and implementing projects on all aspects of illegal wildlife trade, from strengthening protection on the ground to reducing consumer demand, and increasing interventions along transport routes. In each case, UfW is working to create long-term solutions that both reduce the imminent threat from the illegal wildlife trade and build the capacity required for sustained recovery of local livelihoods and biodiversity. Improving on-site protection is an immediate priority of UfW, in order to gain a foothold in the fight to disassemble the illegal wildlife trade. As such, Project partners are conducting a three-year testing phase to assess the feasibility of using outcomes-based financing to ensure long-term, sustainable funding for critical conservation areas using rhinos as an initial focus in the Rhino Impact Investment Project. 1.1. The Rhino Conservation Challenge The international illegal trade in wildlife and wildlife products has reached crisis proportions and is now ranked the fourth largest global illegal activity after drugs, human-trafficking and arms. We are facing a risk of future generations living in a world deprived of some of the most iconic species. We need to act now. Addressing this worldwide challenge will require a targeted and scalable approach that utilises innovative financing mechanisms to draw on philanthropic and impact investor capital to drive improvements in protected area management effectiveness.


The most critical threat to rhino populations currently is poaching for the illegal trade in rhino horn products. Other threats include habitat fragmentation, habitat degradation, human-wildlife conflict, unsustainable use of resources by surrounding communities, unregulated development, and the impacts of climate change. Demand for illegal wildlife products is reportedly increasing most significantly in Southeast Asia, due in part to the region’s economic boom, resulting affluence, and cultural significance of rhino horn products. Rhino horn products can be sold for up to USD 66,000/kg on the black market. The increasing demand for rhino horn is fuelling an escalation in rhino poaching. These increased poaching pressures are increasing the cost of rhino conservation, such that many Protected Areas are unable/unwilling to effective home rhino. In conjunction with general human pressures on Protected Areas this is having the effect dramatically reducing the amount of habitat available for rhinos. At present, rhino conservation managers are struggling to raise the funds from traditional sources required for day-to-day management and protection of rhinos, let alone the funds needed to improve and sustain these impacts over the long-term. Thus creating long-term financing solutions to conserving species and livelihoods will depend on changing the way in which conservation is funded.

Experts predict that a tipping point may be imminent for African rhino populations, with deaths from poaching exceeding births, leading to a potential collapse of the species. While many examples of effective site-based management exist – including the involvement of local people in conservation – a strengthened and coordinated response among conservation sites is needed in order to tackle the dynamic nature of poaching. We can avoid the tipping point and strengthen the response by: (i) shifting the focus of conservation funding towards outcomes rather than the traditional focus on inputs; and (ii) providing longer-term support for site managers to adopt and institutionalise adaptive management based on clear and robust key performance indicators (KPIs). 1.2. RII Project Approach The RII Project’s objective is to demonstrate a scalable outcomes-based financing mechanism that directs additional private and public sector funds to improve management effectiveness of priority rhino populations.

Challenges of the traditional rhino conservation funding model: • Short-term contracts: funding flows from governments or the public sector

only in short-term contracts to fund activities/inputs (like specific equipment or training rather than adaptable intervention strategies) limiting service providers’ ability to focus on long-term impact

• Shortage of funds: currently there are insufficient funds available to deliver long-term scalable impact—governments and the limited philanthropic capital are not enough

• Lack of capacity for adaptive management: the elements needed for protected area managers to manage their sites adaptively are often missing from traditional funding models

• Lack of accountability: no rewards or punishments based on success/failure of interventions; data and reporting is often limited so successes cannot be tracked and replicated in other sites


The project will deliver three Components in order to achieve its objective: 1. Gap assessments of priority rhino sites conducted (completed June 2017), shortlist

of rhino sites identified for inclusion in the live RII Financing Mechanism (7 sites shortlisted in August 2017), and RII investment performance metrics tested and demonstrated in Tsavo West, Kenya pilot site (ongoing to March 2018)

2. 5-10 rhino sites brought up to investment readiness and sites prepared to deliver against the RII Key Performance Indicators (KPIs) (beginning September 2017)

3. Investment Blueprints developed, financial structure built, management, legal, and governance structure developed, outcome-payer and investor commitments secured (ongoing to Q1 2019)

These three deliverables form the base, backbone, and outputs of the RII Project. The processes used to inform these deliverables and the challenges posed or successes reached will aid the development of similar projects in the future, and create a valuable knowledge base for the field of conservation finance. As noted, outcomes-based financing mechanisms are a way of funding contracts that pay for results. Private investors provide upfront payments to Service Providers for interventions that aim to deliver pre-defined conservation outcomes. In this Project, outcome-payers will be funding rhino conservation outcomes in key rhino populations. The Rhino Impact Investment Financing Mechanism (RIIFM or the Financing Mechanism) will pool multiple outcomes-based conservation financing instruments which are to be implemented in Protected Area (PA) sites containing key rhino populations. The first phase of the RIIFM will include sites in Kenya, likely followed by South Africa and Zimbabwe. If there is demonstrable success from this first phase, the Financing Mechanism will be scaled up to consider additional sites and other countries including, but not limited to, Namibia, Nepal and India. Figure 1: RII Project Approach

1.3 Investment Readiness The goal of the investment readiness phase is to ensure that sites can absorb the planned investment, and can deploy the resources efficiently and accountably to deliver targeted


rhino outcomes. This will include ensuring sites have mitigation strategies to manage risks to achieving targeted rhino outcomes as well as addressing any investor concerns. The specific scope of work that will be conducted in the investment readiness phase will ultimately depend on the needs and status of each of the underlying sites selected. It is anticipated that investment readiness activities will broadly target two core outputs: 1. Intervention plans designed for each site for implementation, with activities including,

but not limited to: 1.1. Review gap assessments conducted and results bearing in mind the improvements

in shortlisted sites’ capacity achieved since then, in order to identify further adaptations needed in interventions required to deliver against RIIFM KPIs

1.2. Generate well defined and SMART KPIs and respective targets 1.3. Work with stakeholders (including the community, government, public and private

sectors) to increase understanding of RIIFM, develop strategy and prioritised activities across sites to deliver pre-defined rhino conservation outcomes, and determine the roles and responsibilities of partners to achieve them

1.4. Develop a detailed operational and budgeted intervention plan to achieve outcomes and conservation KPIs with a time frame, cost and procurement list

2. Adequate performance monitoring and management capacity for each site, with

activities including, but are not limited to: 2.1. Highlight governance concerns (with the organisation and local government), and

together direct resources to improve institutional/governance capacity 2.2. Align existing or set up new performance monitoring systems, to ensure it meets

RIIFM minimum data requirements 2.3. Together facilitate the necessary performance monitoring and management

training, including ‘training of trainers’ to meet RIIFM minimum requirements 2.4. Ensure rhino monitoring meets defined standards so that the high level KPI of net

rhino growth can be independently audited. It is expected that these investment readiness activities will be conducted by an appointed on the ground expert organisation (i.e. management agency or approved third party) with technical assistance and oversight from the RII Project Team, including the RIIFM Performance Manager and Finance Manager. To date, 15 priority rhino population sites in Kenya, South Africa and Zimbabwe have participated in site assessments (a process which is critical for determining what management interventions a site requires) conducted by the RII Project, to be considered for inclusion in the first phase of the RII Financing Mechanism. On 16 and 17 August 2017, a RII Project Technical Conservation Site Ranking and Selection Workshop was conducted in Cape Town where, together with the IUCN SSC African Rhino Specialist Group and other experts in the RII Conservation Technical Committee, the current 15 priority sites were assessed according to a set of site-selection criteria and drawing on the results of the site assessments conducted to date. Following this process, the expert panel considered 7 sites as significantly important to the continental and national rhino strategies as well as having the capability to deliver against an RII outcomes-based financing mechanism. In order to be able to deliver on this capability, shortlisted sites will receive grant funding and technical assistance to meet a minimum level of investment readiness. In order to proceed, the RII Project will contractually engage with shortlisted sites in two stages:

1. A Memorandum of Understanding signed with ZSL, the official implementing agent of the RII Project, to exchange the information necessary to establish agreed, budgeted investment readiness work plans


2. A contract signed directly with the RII special purpose vehicle (SPV) for implementation of agreed, budgeted investment readiness work plan activities

In total, 7 sites have been shortlisted to progress to the investment readiness phase of the Project. The RIIFM Finance Manager and Performance Manager will also need to assess the degree to which each selected site meets the investors’ and outcome-payers’ requirements to enter the RII Financing Mechanism. The specific nature of these requirements and criteria will ultimately be determined by the Finance and Performance Managers of the RII Financing Mechanism, who in turn are representing the interests of the RIIFM outcome-payers and investors. Please see figures 3-6 below. 1.4 Investment Preparation: Structuring of the Financing Mechanism

and Route to Implementation At the completion of the investment readiness phase, the sites will be prepared to absorb the planned investments and deploy the necessary human and technical resources to deliver targeted rhino outcomes. Investment structuring must commence to build the financial structures necessary to accommodate outcomes-based payment mechanisms appropriate to each site. In this phase, monitoring and verification systems must be created building on the existing knowledge base to enable an independent verification of results. In parallel, the management structure for sites must be defined, sub-contractors selected for monitoring and verification, and legal entities created or finalised. Outcome-payers and investors must be secured with the process for the release of capital also decided, and finally launch preparations must be finalised for issuance of the RII in the first sites. The specific scope of work that will be conducted in the investment structuring phase will encompass five core outputs:

1. Financial structure, the payment mechanisms against KPIs, modelling against sensitivity analyses for a range of outputs and outcomes, MRV system developed for RII

2. Management, legal and governance structure developed for RII 3. Outcome-payer commitments for outcomes payments secured 4. Investment raised for RII with agreement on the process and release of capital 5. Preparations for the first issuance of the global RII in the selected sites

Please see figures 7-9 below. 1.5 RIIFM Implementation, Support and Portfolio Monitoring This phase will consist of implementing the financing mechanism, then ongoing portfolio monitoring and support once finances have been deployed across sites. The core outputs will be defined in the course of completion of the previous phases but it is expected to include rebalancing both interventions and financing (as needed) within and across sites, tracking progress against KPIs, investor and outcome-payers relations, and following developments across the sites, providing support toward financial independence and sustainability.

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Figure 2: Project Implementation and Contractual Implementation


Figure 3: RII Project Governance and Management Overview as of Nov 2017

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Figure 4: RII Investment Readiness SPV


Figure 5: RII Investment Readiness Governance Framework


Figure 6: RII Investment Readiness Decision-making Framework


Figure 7: RII Financing Mechanism (RIIFM)


Figure 8: RIIFM Governance Framework


Figure 9: RIIFM Decision-making Framework


Figure 10: RIIFM Management Overview


Table 1: RIIFM Finance and Performance Manager Responsibilities


Figure 11: RII Financing Mechanism Priority Rhino Population Site Selection Process Overview

Technical Conservation Selection Criteria

Developed

Assessment Results Analysed

& DebatedSites Ranked &

ShortlistedInvestment Readiness Assessed

Priority Rhino Population Sites Identified for RII

Project

Sites Invited to

Participate in RII Project

Gap Assessment

Tool Developed

Gap Assessments Conducted & Reported

Technical Conservation Review & Selection

Finance & Performance

Manager DueDiligenc

e

Sites for RII Investment Readiness Selected

Sites for RII Financing

Mechanism Selected

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2 RII Finance Manager Terms of Reference The role of the Finance Manager (FM) will be to support the RII Project during the ongoing Investment Readiness phase into (1) the Product Development and (2) Implementation Phase of the RII Financing Mechanism. Thus the role of the FM, like that of the PM, is split into two core components—development and implementation. The scope of work will actualise the components below, 2.1. for the Product Development phase and 2.2. for the Implementation phase. 2.1 Product Development Phase Outputs and Activities

From Q4 2017 to March 2019, the FM and PM will embark and fulfil the product development process. Anything to do with implementation of the RII Project (up until March 2019) is “Product Development Process” and FM/PM will be compensated for their work from the RII Project budget. They will be contracted as a “consultant” service provider to the Project. So this includes investment readiness as well as investment structuring and fundraising.

Component 2.1 Bring 5-10 rhino sites up to investment readiness and prepare sites to deliver against the RII Outputs

Activities

Output 2.1.1 Improve each shortlisted sites performance

monitoring and management capacity by

building appropriate interventions that will bring

sites up to a level of capacity whereby they

considered ‘investment-ready’

2.1.1.1 Improve institutional/governance capacity of shortlisted rhino sites based on the recommendations of the assessment conducted in 1.1.2 2.1.1.2 Set up performance monitoring systems (such as SMART), and processes to ensure use of data, in all sites 2.1.1.3 Conduct trainings in all shortlisted sites on the use of performance monitoring systems, including ‘training of trainers’ 2.1.1.4 Conduct evaluation of investment readiness following training

Output 2.1.2 Intervention plans designed for each site (using

performance monitoring and management

framework) for implementation under

investment vehicle

2.1.2.1 Review gap analyses conducted under 1.1.2 and results from 2.1.1 bearing in mind the improvements in shortlisted sites capacity achieved since then, in order to identify further adaptations needed in interventions required to deliver against RII KPIs in live investment 2.1.2.2 Work with stakeholders to increase understanding of RII, develop strategy and prioritised activities across sites to achieve metapopulation goals, and determine roles and responsibilities 2.1.2.3 Develop operational and budgeted intervention plan for shortlisted sites

2.2 Investment Preparation Phase

This phase will structure and prepare the vehicle for investment and set the route to implementation. The FM of the RII Project is responsible for the success of the RII Financing Mechanism. The FM is in charge of administration and back office functions, as well as investor relations and front office functions, including responsibilities for intervention financial structuring, financing deployment and payout mechanisms. The ultimate decision to allocate funding or ‘invest’ into a site will be the responsibility of the FM. This decision will be informed, from a technical conservation perspective, by the Performance Manager. The outputs for the route to implementation of the product, actualisation of the RIIFM are as follows:

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Component 2.2 Investment Blueprints developed, financial structure built, management, legal, and governance structure developed Outputs

Activities

Output 2.2.1 Financial structure, payment mechanism and MRV system developed for the RII

2.2.1.1 For each of the shortlisted investment-ready sites refine quantitative RII KPIs and attribution framework to isolate for the first issuance of the RII 2.2.1.2 For each shortlisted site, develop process and system requirements for independent verification of results 2.2.1.3 For each shortlisted site, determine payment mechanism, including the specific payments to be made for different levels of achievement against RII KPIs 2.2.1.4 For each site, build financial model, including cash flows (if applicable), payment structure and recycling of capital 2.2.1.5 For each site, outline key risks associated with the achievement of output and outcome metrics 2.2.1.6 For each site, perform sensitivity analysis of financial model and potential output and outcome payment profiles

Output 2.2.2: Management, legal and governance structure developed for the RII

2.2.2.1 Define overall management structure for RII in shortlisted sites, including roles and responsibilities and resourcing requirements of performance management entity and key stakeholders required to deliver against RII KPIs 2.2.2.2 Select sub-contractors to conduct independent verification, and other activities as required 2.2.2.3 Define legal entities for the RII, including Special Purpose Vehicles (the Rhino Impact Partnership and Performance Manager) , governance structures and tax liabilities of these entities

Output 2.2.3 Outcome-payer commitments to make performance

based payments secured for the full RII

2.2.3.1 Develop plan for engaging potential outcomes funders and articulate outcomes funder propositions 2.2.3.2 Conduct meetings and events to build outcomes funders appetite 2.2.3.3 Negotiate with outcomes funders to reach agreements and formalize through contracting

Output 2.2.4 Investment raised for the RII with agreement on

process and schedule for release of capital

2.2.4.1 Develop plan for engaging potential investors and articulate investor propositions 2.2.4.2 Conduct meetings and events to build investor appetite 2.2.4.3 Negotiate with investors to reach in-principle agreements 2.2.4.4 Conduct due diligence for investors of the RII for the set of shortlisted sites, including a review of past and current performance, management capacity and key risks, as evidenced from investment readiness process and interventions conducted in the example site 2.2.4.5 Formalise agreement through contracting

Output 2.2.5 Set-up for launch of the first issuance of the

global RII in the selected shortlisted rhino sites

now investment-ready

2.2.5.1 Secure permits as required and MoU with partner governments 2.2.5.2 Establish legal entities for the full RII, including Special Purpose Vehicles if applicable (the Rhino Impact Partnership and Performance Manager), and governance structures of these entities, including articles of association 2.2.5.3 Perform contracting procurement and recruitment, including advisory contract with performance manager, service contracts with site management, verification contract and employment and/or secondment contract for performance manager 2.2.5.4 Develop detailed operational and HR policies and procedures for implementation 2.2.5.5 Conduct marketing and communications activities, including launch event

Currently, the focus of the FM, and Components 2.1 and 2.2, are to successfully prepare the product, raise funds, and set the route to implementation. The actual implementation is outside the immediate scope of this Terms of Reference.

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To effectively perform this role it is important for the Finance Manager to have sufficient infrastructure to be able to support such an instrument and to meet regulatory requirements, for example an existing back office for fund administration, audit and reporting. The RII Project is the first of an intended series of conservation finance investments and as such, a Finance Manager is sought for the long-term to host and advise on the RII Financing Mechanism and potential future instruments. A dynamic and pioneering organisation is envisioned that can share in the evolution and development of this Project through their business expertise, networks, and ideally passion for the environment. Investor relations capacity and aptitude for fundraising will also be required. Scope exists for significant shaping in future developments and the leading vehicle for conservation finance investments—a sector in its nascency. Over the mid to long-term and separate from the immediate needs of the RII Project, potential exists to scale the RIIFM concept to include other species and Protected Areas well as establish other innovative conservation financing instruments such as an impact investment fund for conservation, investing in equity and/or debt of enterprises which will deliver conservation outcomes and impact alongside a financial return. It is envisioned that this Finance Manager role can evolve to fulfil this longer term thinking.

2.3 Reporting Lines • In the product development phase (up to Q4 2018/Q1 2019) – RII Project Manager

and RII Investment Readiness Board • Product Implementation (Q1 2019 and beyond) - RIIFM Board and Investors • Direct report: none. Veto over Performance Manager decisions as they pertain to

intervention funding.

2.4 Responsibilities 2.4.1 Investment Management and Financial Administration

• Responsible for ultimate decision making, based on the Performance Manager’s recommendation, to invest in a site’s intervention strategy to achieve the targeted rhino outcomes, ultimately representing the RII FM Investors’ interests

• Responsible for financial and administrative functions of the Rhino Impact Investment Project (structuring, due diligence)

• Recommend Performance Manager and appropriate PM structure (company, SPV, etc) to the Board with support of Project Management Unit

• Define legal entities for the RII, including Special Purpose Vehicles (i.e. the RII Project SPV), lead establishment of the governance structures and tax liabilities of these entities. This responsibility will have initial support from the PMU.

2.4.2 Financial, Strategic and Management Advice

• Provide financial and business management expertise including for the financial structure and payment mechanism, and assisting in the measurement, reporting and verification led by the Performance Manager

• Support in identifying sub-contractors to conduct independent verification, and other activities as required

• Advise on the financial model, including cash flows (if applicable), payment structure and recycling of capital

• Work with the Performance Manager and Project Manager on determining specific payments to be made for different levels of achievement against RII KPIs, then administering the payout

• Align the financial structure, performance manager and investment mandate with rhino management strategies

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• Draft required contracts, LOIs, MOUs etc.

2.4.3 Investor Relations • Liaise with investors to manage expectations, communicate progress and formulate

future investor propositions • Support development of distribution channels and fundraising requirements

2.4.4 Other

• Provide feedback on relevant metrics to measure impact outcome and trigger outcome-payments for investors

• Creative thinking and testing of new revenue streams: for example, conservation dividends, ecosystem services

• Explore the setup of a vehicle for a parallel sustainable development programme targeting the socio-economic landscapes surrounding rhino sites to integrate a conservation lens to address community and poverty pressures on conservation

2.5 Requirements

• Back office infrastructure to support financial management, administration and reporting

• Compliant with local financial regulations, meeting requirements of governing financial body (FSA, FINMA, FCA, etc.)

• Track record with impact investing and innovative financial structures • Experience, knowledge and passion for conservation • Experience working in emerging markets, ideally Africa • Network of investors, philanthropists and partners sharing impact mindset

2.6 Accountabilities

2.6.1 Contractual Relationships The Zoological Society of London, as the legal implementing agent of the RII Project, is managing the process on behalf of the Rhino Impact Investment Financing Mechanism. For the product development process under the RII Project, the Finance Manager will contract directly with the RII Project’s investment readiness special purpose vehicle (SPV). For implementation of the RII Financing Mechanism, it is envisioned that the Finance Manager will contract directly with the RII Financing Mechanism SPV.

2.6.2 Finance Manager Compensation A modest amount of funding is available to the FM through the RII Project over the next 12-18 months for product and capacity development. Fees will be rendered upon presentation of an invoice for each periodic audit event over the course of the contract. For implementation of the RII Financing Mechanism, the Finance Manager will be paid in accordance with the terms of the finance management agreement negotiated with and agreed to by the RIIFM Board, outcome-payers and investors.

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3 RIIFM Performance Manager Terms of Reference The role of the Performance Manager (PM) will be in support of the RII Project during the ongoing Investment Readiness phase into (1) the Product Development and (2) Implementation Phase of the RII Financing Mechanism. Thus the role of the PM, like that of the FM, is split into two core components—development and implementation. The scope of work will actualise the components below, 2.1. for the Product Development phase and 2.2. for the Implementation phase. 3.1 Product Development Phase Outputs and Activities

Component 2.1 Bring 5-10 rhino sites up to investment readiness and prepare sites to deliver against the RII Outputs

Activities

Output 2.1.1 Improve each shortlisted sites performance

monitoring and management capacity by

building appropriate interventions that will bring

sites up to a level of capacity whereby they

considered ‘investment-ready’

2.1.1.1 Improve institutional/governance capacity of shortlisted rhino sites based on the recommendations of the assessment conducted in 1.1.2 2.1.1.2 Set up performance monitoring systems (such as SMART), and processes to ensure use of data, in all sites 2.1.1.3 Conduct trainings in all shortlisted sites on the use of performance monitoring systems, including ‘training of trainers’ 2.1.1.4 Conduct evaluation of investment readiness following training

Output 2.1.2 Intervention plans designed for each site (using

performance monitoring and management

framework) for implementation under

investment vehicle

2.1.2.1 Review gap analyses conducted under 1.1.2 and results from 2.1.1 bearing in mind the improvements in shortlisted sites capacity achieved since then, in order to identify further adaptations needed in interventions required to deliver against RII KPIs in live investment 2.1.2.2 Work with stakeholders to increase understanding of RII, develop strategy and prioritised activities across sites to achieve metapopulation goals, and determine roles and responsibilities 2.1.2.3 Develop operational and budgeted intervention plan for shortlisted sites

The PM is responsible for enabling the conservation success of the RII Project. This role leads the identification of interventions to be funded and oversees the implementation of the management interventions to create secure, viable, growing and valued rhino populations across the RII sites. The Performance Manager leads the monitoring of the investments, culminating in informing the decision making on payout for the pay-for-performance mechanism. The Performance Manager is responsible for ensuring that results-based outcomes are accurately measured (subject to an external audit). As such, the RIIFM PM should have a strong familiarity with impact measurement and reporting, and familiarity with field assessment methodologies. The effective grant manager, the PM oversees the RII Financing Mechanism portfolio, decides what to fund based on information given by the site level agencies and the Finance Manager, then tracks progress to KPIs to decide on continued support or reallocation. Importantly, the Performance Manager will be a stakeholder manager, guiding the RII Financing Mechanism to ensure the alignment of the financial and human resources (field teams, investors, and local communities) to ensure the strategic rhino conservation objective is met in a sustainable way. As such, the components and activities of the Implementation Phase are as follows.

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3.2 Investment Preparation Phase

This phase will structure and prepare the vehicle for investment and set the route to implementation of the Financing Mechanism.

Component 2.2 Investment Blueprints developed, financial structure built, management, legal, and governance structure developed Outputs

Activities

Output 2.2.1 Financial structure, payment mechanism and MRV system developed for the RII

2.2.1.1 For each of the shortlisted investment-ready sites refine quantitative RII KPIs and attribution framework to isolate for the first issuance of the RII 2.2.1.2 For each shortlisted site, develop process and system requirements for independent verification of results 2.2.1.3 For each shortlisted site, determine payment mechanism, including the specific payments to be made for different levels of achievement against RII KPIs 2.2.1.4 For each site, build financial model, including cash flows (if applicable), payment structure and recycling of capital 2.2.1.5 For each site, outline key risks associated with the achievement of output and outcome metrics 2.2.1.6 For each site, perform sensitivity analysis of financial model and potential output and outcome payment profiles

Output 2.2.2: Management, legal and governance structure developed for the RII

2.2.2.1 Define overall management structure for RII in shortlisted sites, including roles and responsibilities and resourcing requirements of performance management entity and key stakeholders required to deliver against RII KPIs 2.2.2.2 Select sub-contractors to conduct independent verification, and other activities as required 2.2.2.3 Define legal entities for the RII, including Special Purpose Vehicles (the Rhino Impact Partnership and Performance Manager) , governance structures and tax liabilities of these entities

Output 2.2.3 Outcome-payer commitments to make performance

based payments secured for the full RII

2.2.3.1 Develop plan for engaging potential outcomes funders and articulate outcomes funder propositions 2.2.3.2 Conduct meetings and events to build outcomes funders appetite 2.2.3.3 Negotiate with outcomes funders to reach agreements and formalize through contracting

Output 2.2.4 Investment raised for the RII with agreement on

process and schedule for release of capital

2.2.4.1 Develop plan for engaging potential investors and articulate investor propositions 2.2.4.2 Conduct meetings and events to build investor appetite 2.2.4.3 Negotiate with investors to reach in-principle agreements 2.2.4.4 Conduct due diligence for investors of the RII for the set of shortlisted sites, including a review of past and current performance, management capacity and key risks, as evidenced from investment readiness process and interventions conducted in the example site 2.2.4.5 Formalise agreement through contracting

Output 2.2.5 Set-up for launch of the first issuance of the

global RII in the selected shortlisted rhino sites

now investment-ready

2.2.5.1 Secure permits as required and MoU with partner governments 2.2.5.2 Establish legal entities for the full RII, including Special Purpose Vehicles if applicable (the Rhino Impact Partnership and Performance Manager), and governance structures of these entities, including articles of association 2.2.5.3 Perform contracting procurement and recruitment, including advisory contract with performance manager, service contracts with site management, verification contract and employment and/or secondment contract for performance manager 2.2.5.4 Develop detailed operational and HR policies and procedures for implementation 2.2.5.5 Conduct marketing and communications activities, including launch event

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A bridge between investors and the field, the Performance Manager should give investors/partners confidence in their investment, providing the factual basis or justification for the interventions in a measurable way. The PM draws on the expertise of the Conservation Committee and local management agencies to justify the allocation of capital across key rhino population sites to a suite of qualifying, FM approved interventions that maximise the impact outcome as well as maximising investor returns. In the following phase (outside of the current scope of work), the RIIFM PM’s ultimate responsibility is the successful implementation of the interventions to improve conservation outcomes. As the investments grow in number, the RIIFM PM will manage a balanced portfolio of interventions, tracking their progress, monitoring and evaluating the successes, and communicating this information to the Finance Manager for determining payout and success of the instruments. Currently, the focus of the PM, and Components 2.1 and 2.2 are to successfully prepare the product, raise funds, and set the route to implementation.

3.3 Reporting Lines • Product development phase – RII Project Manager and RII Investment Readiness

Board • Product Implementation - RII Finance Manager and RIIFM Board • Intervention decisions can be vetoed by Finance Manager, Board

3.4 Responsibilities

3.4.1 Conservation and Grant Management • Ex-ante providing input on the disbursement of funds toward specific interventions • Ex-post investment work closely with the Implementing Agency to track progress

toward KPIs • Where progress toward KPIs is not up to expectation, suggesting and where

appropriate, implementing remedies (i.e. through technical assistance provision) • Overview and management of interventions’ portfolio • Support Finance Manager as needed on financial or in-field structure questions,

and disbursement of funds (provide necessary supporting data, justifications and reporting)

• Guide determination of payout on outcomes achieved: provide justification to Finance Manager and Auditor

• Work to mitigate investor risks and uncertainty associated with interventions • Draw upon the necessary technical rhino conservation expertise on what the best

allocation of funding is to key population sites and interventions to maximize impact outcomes to maximize investor returns.

3.4.2 Stakeholder Management

• Align intervention performance with strategy through measurement and reporting, providing in-field guidance as needed

• Must align with AfRSG endorsed national and continental management strategies • Effectively manage demands of an intricate set of stakeholders—including local

communities, government, scientists, outcome-payers, and conservation experts and work with local communities to reconcile local goals with RII goals

• Support conservation science team

3.4.3 Measurement and Reporting • Oversee implementation of measurement and monitoring based on pre-defined

metrics of RII Management team • Maintain organised, accurate records and supply necessary data to Independent

Verifier for annual audit

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• Produce semi-annual report on progress toward KPIs using metric-based impact reporting, working closely with the RII Project Manager to report progress

• Maintain open communication to the AfRSG and its individual members as needed

3.4.4 Procurement and Technical Assistance • Lead and or/support procurement of equipment and services necessary for the

implementation of interventions funded by RII, in conjunction with the site management agencies to ensure effective and cost conscious actions.

• Oversee the procurement and implementation of technical assistance required to meet and maintain investment readiness status.

3.4.5 Other • Make a tangible contribution to cost management, efficiencies in operational

matters, open communication • Provide technical assistance where required • Support independent auditor/comply with reporting requirements • Create transparency in the achievement of KPIs

3.5 Requirements

• Track record in environmental finance/conservation implementation and knowledge of conservation methodologies

• In-depth understanding and experience specifically in rhino conservation • Ability to work effectively independently • Experience working in the SADC and EAC regions • Knowledge and experience of field survey, measurement and evaluation

methodologies • A track record of successful people management • Must be respected as a credible stakeholder in the conservation ecosystem, and

ideally within the rhino conservation community • Financial accounting skillset a plus

3.6 Accountabilities 3.6.1 Contractual Relationships

The Zoological Society of London, as the legal implementing agent of the RII Project, is managing the process on behalf of the Rhino Impact Investment Financing Mechanism. For the product development process under the RII Project, the Performance Manager will contract directly with the RII Project’s investment readiness special purpose vehicle (SPV). For implementation of the RII Financing Mechanism, it is envisioned that the Performance Manager will contract directly with the RII Financing Mechanism SPV.

3.6.2 Performance Manager Compensation A modest amount of funding is available to the PM through the RII Project over the next 12-18 months for product and capacity development. Fees will be rendered upon presentation of an invoice for each periodic audit event over the course of the contract. For implementation of the RII Financing Mechanism, the Performance Manager will be paid in accordance with the terms of the finance management agreement negotiated with and agreed to by the RIIFM Board, outcome-payers and investors.

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4 Rhino Impact Investment Request for Proposals Supporting the set-up and execution of the first species-focused conservation finance vehicle beginning in sub-Saharan Africa

1. Finance Manager Role 2. Performance Manager Role

Issued 27 Nov 2017 Close of submissions 14 January 2018 1pm CET

4.1 Context As discussed in this document, the RII Project’s objective is to demonstrate a scalable outcomes-based financing mechanism that directs additional private and public sector funds to improve management effectiveness of priority rhino populations. Across sites, the RII Project will share administration, financial execution, and investment functions through a Finance Manager and Performance Manager. As of November 2017, the RII Project Board is looking to appoint a Finance Manager who represents the interests of investors, structures the financing mechanism, manages the back office and leads fundraising. A Performance Manager will also be selected through this RfP. The Performance Manager has a fiduciary duty to recruit the necessary skills and expertise in order to best allocate funding across qualifying rhino sites to a suite of investor-approved interventions that maximise the RIIFM impact outcome as well as maximising investor returns. For further details, please reference the above Terms of Reference.

4.2 Objective of the Request for Proposals

The Rhino Impact Investment (RII) Project is looking for a dedicated Finance Manager and Performance Manager. The objectives of this RfP are twofold:

1. Identify an organisation to lead the RII Project into the next phase of development and implementation across financial, structuring and execution considerations

2. Identify conservation finance expertise with the potential and ambition to scale the RII Project from its initial sites today into a sector-leading species-centric portfolio of investible opportunities

4.3 Scope of Work and Expected Results The Finance Manager and Performance Manager are expected to fulfil the functions set out in the Terms of Reference of this document. The Scope of Work will be carried out in three phases, as per above, and thus should be considered according to these parts in the proposal:

I. Product Development Process: including investment readiness, guided by and measured against following work plan, Component 2.1 as above. a. The FM and PM will be compensated for their work from the pre-defined

RII Project budget. They will be contracted as service providers to the

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Project, and as such the financial proposal from the applicants should reflect this. This includes investment readiness as well as investment structuring and fundraising.

II. Investment Preparation: Investment structuring of the RIIFM, including the

component parts of management, legal, monitoring, and financial considerations. This phase also includes fundraising. This is guided and measured against the Project work plan of Component 2.2. a. As above, this phase must be included in the financial proposal of the

application and is part of the pre-defined RII Project budget. The next phase, implementation of the RIIFM, which is the output of the RII Project, is “RIIFM Implementation” as below.

b. At this stage, the compensation structure for the Implementation Phase has not yet been defined, but will be part of the “Product Development Process,” and will be supported by the existing project management team.

III. RIIFM Implementation, support and portfolio monitoring: This is

envisioned to be developed together for the FM and PM, with outputs to be framed in the context of the evolution, successes and challenges of Components 2.1 and 2.2. While outside of the immediate focus of the Project (this phase will commence only in or around March 2019), applicants are invited to submit ideas for how they envision compensation for implementation, support, and portfolio monitoring activities, including Outputs and Activities.

4.4 Expertise Required

Organisations with significant experience in the following areas will be preferred: 1. Structuring and set up of innovative financing models for impact investing and

conservation outcomes 2. Set up of investment vehicles targeting different countries or diverse geographies 3. Results-based financing or other complex multi-stakeholder and blended finance

structures In addition, knowledge/experience of one more of the following areas will be taken into account in the selection:

4. Fieldwork and investment deployment in sub-Saharan Africa and Southeast Asia 5. Rhino and megafauna conservation experience 6. Sustainable development and nature-based solutions 7. Track record in investment management 8. Wide investor and philanthropic networks and success in fundraising

The applicant must also have:

9. Back office infrastructure to support financial management, administration and reporting

10. Compliance with local financial regulations, meeting requirements of governing financial body (FSA, FINMA, FCA, etc.)

4.5 Timeline

A specific month-count has not been established. The proposals should consider that funding is available through March 2019.

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Prospective calendar: Kick-off conference call Week of 05 Feb 2018 Project and technical conservation finance onboarding workshop in London

Week of 12 Feb 2018

Potential site visits: Kenya, South Africa, Zimbabwe

Late Feb – Mid-March 2018

Rhino management conference and technical rhino conservation onboarding workshop in South Africa

13-18 March 2018

Potential site visits: Kenya, South Africa, Zimbabwe

Mid-March onwards

Completion of pilot site interventions 31 March 2018 Product development process and investment readiness activities

Up to Q4 2018/Q1 2019

Final investment readiness assessments Q4 2018/Q1 2019 Investment preparation Up to Q1 2019 RII Financing Mechanism launch Q1 2019

The provisions in this RfP are indicative and may be adapted by bidding organisations, provided that the proposal be reasoned and sufficiently documented. The Project invites the bidding organisations to express their interest to provide the services described above. The interested organisations must submit documentation highlighting their ability to perform the duties, including their past experiences, CVs, availability, and required financing. The Project will use this documentation to shortlist candidates evidencing that they are qualified to carry out the expected services (annexures may include slide decks, references concerning the performance of similar contracts, experiences acquired in similar conditions, availability of required knowledge and qualifications among its staff or expert network, financial resources, etc.). Bidders must demonstrate past experiences in relation with conservation, impact investing, natural capital operations, innovation in complex operating environments, knowledge of results based financing and expertise in the context of the assignment. Organisations are recommended to bid individually, consortia are not preferred. Questions or requests for clarification can be submitted to [email protected] by no later than 5 January 2018 1pm CET. The proposals must be delivered no later than Sunday 14 January 2018 1pm CET, to [email protected]. The subject line of the email submission should be structured as such: For potential Finance Managers, Subject: FM - “Organisation Name” Proposal For potential Performance Managers, Subject: PM - “Organisation Name” Proposal The chosen candidate will be notified at the end of January 2018.

4.6 Applicant Technical Data

4.6.1 Bidder’s Organization



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[Provide here a brief (up to two pages) description of the background and organization of your firm/entity and each associate for this assignment.]

4.6.2 Bidder’s Experience

[Using the format below, provide information on each assignment for which your firm, and each associate for this assignment, was legally contracted either individually as a corporate entity or as one of the major companies within an association, for carrying out services similar to the ones requested under this assignment. Use no more than 4 pages.] Assignment name:

Approx. value of the contract (in current US$):

Country: Location within country:

Duration of assignment (months):

Name of Client:

Total No of staff-months of the assignment:

Address:

Approx. value of the services provided by your firm under the contract (in current US$):

Start date (month/year): Completion date (month/year):

No of professional staff-months provided by organisation:

Name of associated Consultants, if any:

Name of senior professional staff of your firm involved and functions performed (indicate most significant profiles such as Project Director/Coordinator, Team Leader):

Narrative description of Project: Description of actual services provided by your staff within the assignment:

4.6.3 On the Terms of Reference

[Present and justify here any modifications or improvement to the Terms of Reference you are proposing to improve performance in carrying out the assignment (such as deleting some activity you consider unnecessary, or adding another, or proposing a different phasing of the activities). Such suggestions should be concise and to the point, and incorporated in your Proposal.]

4.6.4 On the Counterpart Staff and Facilities

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[Comment here on counterpart staff and facilities to be provided for the Project including administrative support, office space, local transportation, equipment, data, etc.]

4.6.5 Description of the Approach, Methodology, and Work Plan for Fulfilling the Role

[Technical approach, methodology and work plan are key components of the Technical Proposal. You are suggested to present your Technical Proposal (no more than 5 pages, exclusive of charts and diagrams) divided into the following three parts:

a) Technical Approach and Methodology, b) Work Plan, and c) Organization and Staffing,

a) Technical Approach and Methodology. Explain your understanding of the objectives of the assignment, approach to the services, methodology for carrying out the activities and obtaining the expected output, and the degree of detail of such output. You should also explain the methodologies you propose to adopt.

b) Work Plan. Propose the main activities of the assignment, their content and duration, phasing and interrelations, milestones (including interim approvals by the project partners), and delivery dates. The proposed work plan should be consistent with the technical approach and methodology, showing understanding of the TOR and ability to translate them into a feasible working plan.

c) Organization and Staffing. Propose the structure and composition of your team. You should list the main disciplines of the assignment, the key expert responsible, and proposed technical and support staff (including respective CVs).]

4.6.6 Financial Proposal The applicants can use any format preferred to submit their financial proposal, adhering to the subheadings of ‘total costs,’ ‘breakdown of costs by activity,’ ‘breakdown of remuneration,’ and ‘reimbursable expenses.’

a. Total Costs of Financial Proposal

Item

Costs

[Indicate Local Currency]

Total Costs of Financial Proposal

(Total costs must coincide with the sum of the relevant Subtotals indicated in all Forms provided with the Proposal).

b. Breakdown of Costs by Activity

Group of Activities (Phase):2

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Description:3

Cost component

Costs

[Indicate Local Currency]

Remuneration4

Reimbursable Expenses 4

Subtotals

c. Breakdown of Remuneration

Name2 Position3 Staff-month Rate4

Foreign Staff

[Home] [Field]

Local Staff

[Home] [Field]

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d. Reimbursable expenses

Group of Activities (Phase):

N° Description Uni

t Unit Cost Quantity

[Indicate Local

Currency]

Per diem allowances Da

Miscellaneous travel expenses Tri

Communication costs between [Insert place] and [Insert place]

Drafting, reproduction of reports

Equipment, instruments, materials, supplies, etc.

Shipment of personal effects Tri

Use of computers, software

Laboratory tests.

Subcontracts

Local transportation costs

Office rent, clerical assistance Training of the Client’s personnel Total Costs

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Annexure 1: Draft RII Investment Readiness Criteria Draft Investment Readiness Criteria Each site will be evaluated from a technical conservation perspective to assess whether it has reached an acceptable level of investment readiness, as outlined in the table below. The site assessments conducted in the first phase of the RII Project will be used as a template for the technical Theory of Change (ToC). Table 1: Draft Technical Conservation Investment Readiness Criteria

Investment readiness Criterion

Description of what is needed

Management Agency driven

document

Oversite- sign off

1

A well-defined intervention strategy (Theory of Change) with an appropriate project plan and budget that can successfully be turned into targeted rhino outputs and outcomes

a) ToC updated from Site assessment to reflect new developments b) ToC converted to a Project plan with associated time frames and budgets which can be updated efficiently on a biannual basis

Yes/No Yes/No

2 Well defined KPIs and realistic targets

a) Targets set for each of the KPIs, with a counterfactual model as a basis

Yes/No Yes/No

3

The ability to monitor and report on the KPIs with sufficient precision to detect change within the RII Financing Mechanism’s time frames.

a) Report describing the monitoring precision of each of the KPI's using the assigned models.

Yes/No Yes/No

4

The site level financial and procurement structures have been developed to allow for funds to be spent, with appropriate monitoring and reporting.

TBD - e.g.: Procurement policies are understood, local agents are involved etc.

Yes/No Yes/No

The RIIFM Finance Manager and Performance Manager will also need to assess the degree to which each selected site meets the investors’ and outcome-payers’ requirements to enter the RII Financing Mechanism. The specific nature of these requirements and criteria will ultimately be determined by the Finance and Performance Managers of the RII Financing Mechanism, who in turn are representing the interests of the RIIFM outcome-payers and investors.

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Draft investment readiness criteria are reflected in the following table, which are to be finalised and agreed on by the Finance and Performance Managers and the selected sites. Table 2: Draft Finance Manager Investment Readiness Criteria

Category Criterion (Site and Manager) Measurement/Unit Indicator Means of

Verification Notes

A. Finance Track record in financial management, reporting, and audit: Efficient absorption and expenditure of external funds at field level; stable financial accounts without anomalies

Binary (Present/Absent)

Standardised assessment of grant/fund management and reporting capacity

Audited Financial Statements; Audit Reports; Summary data on Grants secured and managed

Audited accounts; % budgets used/spent at site level

B. Monitoring Capacity in place to monitor and report verifiable threats, activities, performance, and rhino population outcomes.

(a) Binary (Present/Absent); (b) %; (c) %

a) Rhino monitoring records available, transparent and auditable; b) Proportion of rhino population identifiable (incl. routine ear-notching); c) Accurate and precise annual population estimates (within the precision necessary to detect change over the KPI time frame)

Independent (AfRSG) verification/audit of records and estimates Rhino monitoring strategy document including an outline for data management and reporting. Raw data for last 10 years. Summary reports for rhino population for the last 10 years.

Individual IDs for estimates of populations < 500 animals; Capacity for block counts or stratified surveys for populations > 500 animals

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Verification Notes

C. Leadership 1. Strong track record of the site manager(s), both in terms of overall site management and rhino management (which includes population performance)


Demonstrated management capability and track record

Expert/informed assessment of AfRSG member; National Rhino Coordinator; CV’s of site management staff involved in rhino management and security.

2. The vision and involvement of the site’s overarching parent institution and the strength of their skillset that is brought to bear for the site


Existence of suitable institutional structures to provide oversight and guidance on rhino management, financial management, fundraising, HR, legal and policy.

Public communications, perception of public or local communities. List of rhino conservation bodies that sit has direct involvement in.

D. Governance a) Transparent and efficient decision-making bodies or structures and process (e.g. national/regional committees or owners/management associations); b) Leadership within management entities (state agencies/ organisations/


Effective governance of national rhino conservation programme

National rhino strategy; monitoring & evaluation of implementation of activities (5-year review)

Effective implementation of national rhino strategies and site conservation plans, including adaptive management

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Verification Notes

conservancies/ private sector)

E. Planning & Implementation

1. Biological: a) Habitat/Range available for additional population expansion b) Additional secure recipient areas approved for range expansion and biological management within a metapopulation. c) Capacity is in place to undertake biological management, including local rhino veterinary/ translocation capacity.


Secure range available and identified for relocation of surplus animals, to enable metapopulation expansion

National rhino strategy: biological management or range expansion component or Strategic Objective (S.O.)

Expansion area available at site (e.g. Tsavo West) or within national metapopulation (e.g. Assam?)

2. Plan: A clear Theory of Change is in place, i.e. the conservation context (given by the national rhino strategy), threats and management effectiveness gaps are well-understood and activities defined, budgeted and planned (vs business as usual).


Planning documents in place and being followed

Gap assessment checklist completed; budgeted action plan. Threat assessment for the site. ToC / rhino specific management plan.

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Verification Notes

3. Additionality: catalytic effect or additionality of investor funding ('difference made') wrt. funding background or funding alternatives

High/Medium/Low Internally Generated vs. Externally-sourced funding; diversity of funding sources

Project-based analysis of sources and application of funding, and sustainability: Warren Buffett test?

Can verify through 1. First of its kind test 2. Financial barrier test 3. Baseline scenario vs intervention test (taken from UNFCCC criteria for additionality)

4. Staff: The capacity, resources and skills of site staff are sufficient to deliver on the plan.


Staff competency (written, oral, professional and peer reviews)

Staff interviews on intervention-specific criteria

5. Stakeholders: a) Absence of evidence of significant antagonistic local communities or conflicts that could be a risk to rhino security and future sustainability of rhino conservation/production. b) Proactive community programmes that support rhino security and rhino production incentives.


Partnerships and mutual actions or support programmes (vs. communities represented or acting as passive recipients)

Community engagement programmes or partnership arrangements in place; MoUs, Community Development Plans

For Populations < 500 animals? Excludes the v large populations where community engagement is very localised (if any)?

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Verification Notes

c) Local communities are involved in planning and implementation of conservation activities and/or receive benefits from them and/or grievance mechanisms are in place to reduce conflict during implementation.

6. Networks: The site is part of a strong support and coordination network and has partnerships that can help it to deliver.


National NGOs, Foundations or Trusts, in place and functioning

National Rhino Strategies; Partnership MoUs

E.g. Association of Private Landowner Rhino Sanctuaries, Local support NGOs/ Trusts (LRT, SRT, etc.)

F. Policy & Procedures

1. HR, Financial and ESG policies are set and followed in accordance with the overarching institutions and existing funders.


Published Code of Conduct; public communication on ESG policies

Check for availability of these documents/statements

2. The site has legal status and mandate to conserve rhinos, including rights/permits to enforce laws and use intelligence systems to prevent illegal activities.


Custodianship agreements; Accreditation of non-government law enforcement staff where possible

Provided for in National Rhino Strategies (Security components).

Legal basis for local/site law enforcement for rhino security

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Verification Notes

G. External Risks

1. Ownership/tenure rights: a) Security and tenure of land; b) Security of custodianship or ownership of rhinos


National Nature Conservation or Wildlife Law; National Rhino Strategies/Plans; Custodianship agreements

National Rhino Strategies provide basis for management and/or ownership of rhinos

Vulnerability of site/land to forced acquisition or land claims

2. Governance and corruption: a) National Corruption Index; b) Independence of judiciary and effectiveness of legal process

Numerical Scores Transparency International (transparency.org); Mount Scopus International Standards; Studies on application of wildlife law

National Corruption index; Application of Wildlife Law (mandatory sentencing for rhino-related crimes vs bail)

Risk factors: Law application effectiveness scoring (% arrests leading to convictions; % of cases where bail granted?)

3. Trans-boundary risk: a) Proximity to International Borders; b) Ability of managing agency to control or avert landscape-level threats

Binary (Adjacent/Not adjacent); b) High/Medium/Low

Inter-agency collaboration and coordination; functioning anti-wildlife crime/INTERPOL networks

Populations adjacent to International Borders, or Large Areas/Populations with multiple management units

Kruger, Assam, Etosha, HiP, Nepal, Tsavo, Kunene? Links to G.1.

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Annexure 2: Draft Rhino Impact Investment Outcomes-Based Financing Mechanism Key Performance Indicators Background The RII Project, through the development of a RII Financing Mechanism, aims to facilitate the conservation and growth of wild rhino, in an increased number of populations in as short a time as possible. This is achieved by generating an outcome-based financing mechanism that directs additional private and public-sector funds to reward successful conservation initiatives. Implementation of Outcomes-based financing utilizes Key Performance Indicators (KPIs) to measure success. Key Performance Indicators are measured against targets, to demonstrate success and trigger payment. The ultimate target for a site is to maximize the rhino growth rate. This is measured byt the primary KPI. Average net annual rhino population growth (%) over the past 5 years (rolling mean), corrected for translocations in/out. A 5 year rolling mean is used because rhino populations 7 Key Performance Indicators have been set (Table 1). There are 4 Monitoring KPI’s, focussed on ensuring that the data needed to calculate the KPI’s. 2 of these are early warning indicators and 2 are have targets set as payment triggers for good monitoring. The additional 2 KPI’s reflect security, good biological management and are all nested within the larger ultimate project KPI. Setting of targets is currently expert-driven, this is due to site specific security threats, context specific rhino growth rates etc. However, in time as data becomes available, targets can become more data driven. Not all management agencies use the same methods to count their rhino, nor should they as different field conditions, population sizes and logistical constraints mean that a custom approach may be required for each. The result is that there are varying degrees of confidence that can be placed in the numbers reported by management agencies and therefore the confidence that can be applied to the calculated Key Performance Indicators, such as Growth rate. The RII Project acknowledges the need to be able to attribute outcome-impact to be able to make an outcome based finance mechanism viable. To do so the RII Project is actively focused on increasing the confidence in rhino sites’ population numbers by actively incentivising increased monitoring precision via KPIs. Monitoring KPIs are the primary mechanism for increasing confidence in the information from management agencies. For instance, by incentivizing the monitoring KPI of “the 95% standard error of the population point estimate” one can measure the degree of precision around the population estimate. This is a measure of confidence, and by incentivising this to be minimized, through being a KPI and a payment trigger, management agencies will invest in increased monitoring rigour, to allow for other KPIs to be measured more precisely. As this is an ongoing payment trigger, the management agencies are incentivised to continue with increased effort in improving population estimates. To calculate the trend based KPIs such as growth rate, rigorous statistical approaches that take into account detection probability of rhino, such as mark-recapture methods will be used to measure the change in population size and provide the most scientifically rigorous estimate possible for outcomes based finance decisions to be made. The development of methods will be ongoing as new techniques are refined to increase precision.

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Below we outline the KPI’s, their meaning for rhino conservation and how they are managed by the RIIM. 1. Monitoring KPIs Precise estimates of live rhino and rhino mortalities are essential to being able to report on the other Rhino Impact Investment KPI’s. Furthermore, accurate monitoring promotes more effective management and theoretically allows for increased growth rates. There are two Key Performance Indicators, the first focussed on the precise estimation of live animal and the second on the precise estimation of those that die, by estimating carcasses. I n addition, we have to early warning indicator KPI’s ( A and B) That can be used to monitor ongoing monitoring effort on a monthly basis to assist rhino managers to ensure that they have sufficient data to report of the KPI’s. These measures are either simple measures and can be incorporated into robust modelling framework once the data are available. A Detection Probability of rhino (Robust) or Critical Sighting Interval (measured as average time to last sighting of an individual)

• KPI Time Frame: From year 1 – Monthly • Calculation: See technical Document • Payment Trigger: Not used for payment • Supporting data for Audit: Not required.

B Detection Probability of rhino carcass (Robust) or Age of carcasses found (measured as average estimated age of carcass)

• KPI Time Frame: From year 1 – Monthly • Calculation: See technical Document • Payment Trigger: Not used for payment • Supporting data for Audit: Not required.

1.1 Precision of the live rhino estimation: Census precision KPI: Coefficient of Variation of the point estimate.

• KPI Time Frame: From year 2, Annual calculation. • Calculation: See Technical Document 1. • Payment trigger: Percentage of the annual target, set by the management agency

and verified by the fund manager. • Supporting data for audit: Annual census reports, including summaries of

mortalities for the previous year.

1.2 The precision of Carcass estimation: Census precision KPI: Coefficient of variation of the Carcass Estimate

• KPI Time Frame: From year 2, Annual calculation. • Calculation: See Technical Document 1. • Payment trigger: Percentage of the annual target, set by the management agency

and verified by the fund manager. • Supporting data for audit: Annual census reports, including summaries of

mortalities for the previous year. Security KPIs: The percentage of the total year-end population (including poached animals) that have been lost to illegal hunting.

The Security KPI’s are a measure of the ultimate security outcome and should be integrative of all aspects of law enforcement, allowing management freedom to intervene where they see fit, for the common objective of reducing illegal rhino hunting.

• KPI Time Frame: From year 2, Annual calculation. • Calculation: See Technical Document 1. • Payment trigger: Percentage of the annual-target, set by the management agency

and verified by the fund manager.

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• Supporting data for audit: Annual census reports, including summaries of mortalities for the previous year.

2. Demographic KPIs: Underlying biological growth rate (corrected for

translocations and man-induced mortalities) Demographic KPIs aim at measuring the biological performance of the population and rewarding successful biological management of rhinos. Successful biological management is imperative for achieving the overall KPI. As with the total growth rate, biological and social factors make annual growth rates too variable to use. Therefore, the demographic growth rates are measured over a 5-year moving window. The biological growth rate reflects the response of rhino to resource availability, reflecting how well the management agency is managing the biological aspects of the population.

• KPI Time Frame: From year 5, Annual calculation, measured over a 5-year moving window

• Calculation: See Technical Document 1. • Payment trigger: Percentage of the 5-year growth rate target, set by the

management agency and verified by the fund manager. • Supporting data for audit: Annual census reports, including summaries of

translocations and reported mortalities for previous 6 years and access to the raw data used to generate synthesises census reports on request.

3. Primary KPI Average net annual rhino population growth (%) over the past 5 years (rolling mean), corrected for translocations in/out. The primary KPI is a direct measure of the RIIP project success at the site level. The growth rate of a population is a measure of how successful it is at recruiting new animals into the population. In a system where resources are not limiting, and unnatural attrition such as illegal hunting is minimized, it can be expected that the growth rate will increase to the ecological maximum, effectively increasing the number of rhino in that population, in as short a time as possible. Annual growth rates of rhinos can fluctuate. Small population sizes mean that individual variation does not always get averaged out and biological factors such as the gestation periods of rhino and social factors mean that there is a time lag between a resource fluctuation and the associate growth rate response. Therefore, the growth rate must be average out over a meaningful time frame, which for rhino has been chosen as a 5-year window.

• KPI Time frame: From year 5, Annual calculation, measured over a 5-year moving window.

• Calculation: See Technical Document 1. • Payment trigger: Percentage of the 5-year growth rate target, set by the

management agency and verified by the fund manager. • Supporting data for audit: Annual census reports, including summaries of

translocations and reported mortalities for previous 6 years and access to the raw data used to generate synthesises census reports on request.

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Table 1. Draft KPI’s and time frames for the RIIM

Theme Title Start Bi Monthly/ Ongoing Annual Annual (5 Year Avg) Payment

Trigger Monitoring A

Success of monitoring effort

Day 1 Detection probability (Robust) Critical Sighting Interval

Detection probability (Robust) – Yearly average Critical Sighting Interval- Yearly Average

Not linked to payments, used as a warning indicator

Monitoring B

Success of monitoring effort

Day 1 Detection probability of carcasses

Detection probability of carcasses- Yearly average

Not linked to payments, used as a warning indicator

Monitoring 1.1

Precision in estimation of population size

Year 2

Coefficient of Variation in estimated N

Percentage of Target Reached

Monitoring 1.2

Precision in estimation of Carcasses

Year 2

Coefficient of Variation in Estimated Carcasses


Security 2.

Percentage of rhino lost to poaching

Year 2

Estimated percentage of the year end population estimated lost to poaching.


Demographic 3.

Biological growth rate

Year 5

Change in population, adjusted for man induced translocations in and out, averaged over a 5 year moving window.


Primary 4.

Primary KPI- Annual Growth Rate

Year 5

Change in population, averaged over a 5 year moving window


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Contact Us Questions or requests for clarification specifically relating to this Request for Proposals can be submitted to [email protected] by no later than 5 January 2018 1pm CET. Oliver Withers Project Manager Rhino Impact Investment Project C/O Zoological Society of London Regent’s Park, London NW1 4RY Tel/Direct: +44 207 449 6648 Skype: oliver.withers [email protected] | https://www.zsl.org/ The Rhino Impact Investment Project is an initiative of United for Wildlife (UfW), an unprecedented partnership between seven of the world’s leading wildlife charities and The Royal Foundation of The Duke and Duchess of Cambridge and Prince Harry. Implementation of the Rhino Impact Investment Project is led by the Zoological Society of London (ZSL) and the Project is funded by the Global Environment Facility, the UK Government through the IWT Challenge Fund, UfW and ZSL. The United Nations Development Programme is the GEF Agency acting as the operational arm of the GEF to implement and execute Project activities consistent with both the GEF mandate and national sustainable development plans.

The Rhino Impact Investment Project receives implementation support on technical conservation, conservation finance and legal from Implementation Partners including Credit Suisse, DLA Piper, Fauna & Flora International (FFI), the IUCN SSC African and Asian Rhino Specialist Groups (AfRSG and AsRSG), Kenya Wildlife Services (KWS), The Nature Conservancy (TNC), UBS and WWF-UK.



https://www.zsl.org/conservation/conservation-initiatives/animals-on-the-edge/rhino-impact-investment-project

Documents

We are delighted to announce the release of the Rhino ... · banks. However, this investment capital may also be blended with catalytic, patient donor capital in order to generate