Application Form for Expressions of Interest

Deadline: December 1, 2013 at 18.00 GMT

About VIVUS VIVUS is a Ghanaian-based company. As a social enterprise, we are entrepreneurs that look at profitability but work to bring a positive social impact. VIVUS specializes as a provider of logistic solutions reaching the bottom-of-the-pyramid markets. This means we build distribution networks, develop low-cost transport solutions, and improve supply chains to make sure products and services can reach poor or traditionally disadvantaged people.

About the 3-wheeled Rural Mobility Initiative for Ghana

Fig. 1 3-wheeled motorized tricycle

Fig. 2 two-seater tricycle

Fig 3. 3-wheeled mini truck

3-wheeled motor vehicles have brought revolution to several parts of the developing world; about the way rural inhabitants and smallholder farmers transport their goods and themselves. As an example, the number of Chinese Rural Vehicles reached about 22 million units in 2001 the majority being 3-wheeled vehicles and has transformed Rural China. Their main advantages regard their low-cost price, their maneuverability in poor rural terrain and their load capacity which fits the reality of what small scale farmers can produce. In Ghana, the use of 3-wheeled vehicles (tricycles) emerged only in the last 10 years and has gone beyond refuse collection in Accra to now include many business activities including pure water distribution, consumer goods distribution and hiring for the collection of general goods. We intend to empower rural communities and organizations by providing 3-wheeled tricycles and vans to undertake the cost-effective transportation of goods such as food produce, fuel wood and so on.

Vivus 3-wheeler Rural Mobility Initiative for Ghana

EOI Application

The 3-wheeled Rural Mobility Initiative for Ghana exists to enable the mass adoption and widespread use of 3-wheeled vehicles in Rural Ghana. With financial support from the Bill and Melinda Gates Foundation, we are pleased to announce the establishment of the Vivus Move Smarter Fund, a revolving loan facility of 110,000 GHS (~55,000 USD) projected to grow three-fold by 2014. This facility will finance two purposes: A work and pay scheme in collaboration with rural banks; providing 3-wheeler tricycles and vans to rural households and organizations (FBOs, district assemblies) under an operational lease. The establishment of 3-wheeler rural transport/taxi companies to be co-founded with rural organizations or entrepreneurs.

Request for Expressions of Interest Work and pay scheme with rural banks In many rural parts of Ghana, there is a strong demand for low-cost, low-maintenance vehicles from smallholder to large farmers, from small rural businesses to larger organizations. 3-wheeler tricycles and vans have seen a strong adoption in the Northern Region of Ghana (with still a rising demand) but we have yet to see a wider adoption in the remaining regions of Ghana. At the same time, we recognize that rural banks face a number of risks in granting loans for the purpose of acquiring 3-wheeler tricycles and vans. The Vivus Move Smarter Fund proposes to establish itself as a loan guarantee mechanism. The fund, hosted with a reputable asset manager (CDH Financial Holdings Ltd.), will guarantee all such loans in the order of 70%, 60% and 50% of the loan volume for three respective years. In the first year, Vivus will cover 70% of the loan risk while the lessee will contribute 20% of the amount upfront and the rural bank the remaining 10%. It is expected that our contribution will subsequently fall in the following 2 years then passed on to the rural bank or lessee with an exit happening in 3 years. In line with current practices, 3-wheeler tricycles and 3-wheeler vans will be leased and repaid under a period of 4-6 and 12 months respectively. The current retail cost in Accra of a 3-wheeled motorbike ranges from 3,800 to 4,800 GHS while a 3-wheeled minivan costs 10,800 GHS. It is also expected that a rural bank partner will set up a dedicated desk filled by a service activation/customer care manager from Vivus and we will explore together both in-venue and outdoor marketing opportunities.

Vivus 3-wheeler Rural Mobility Initiative for Ghana

EOI Application

Here we provide a clear picture of the roles and responsibility expected on us and our rural bank partner(s):

VIVUS Provides the loan guarantee facility

RURAL BANK PARTNER Offers a competitive interest rate, recognizing and accounting for the reduced risk

Makes available the Catalogue of 3-wheeled vehicles (multi brand choice) and pricing 10% loan leverage in first year Sole Supplier of the 3-wheeled vehicles Makes available a dedicated human desk four a service activation/customer care manager

Deployment of a service activation/customer care manager on the premises of the rural Co-identify and roll out together marketing bank to oversee the success of the initiative activities both indoor and outdoor and provide expertise and assistance Makes available a secured parking area for the Service activation/customer care manager ongoing availability of 3-wheeled vehicles leads outdoor marketing and customer service activities Undertakes all regular loan-related activities from profiling, disbursement, monitoring, Support the relocation of qualified mechanics repayment to asset repossession in the implementation zone if this is not the case

Vivus 3-wheeler Rural Mobility Initiative for Ghana

Instructions to Applicants

EOI Application

Applicants must thoroughly answer the following questions and explain how they stand out as relevant partners. Applications must include complete responses to all the questions (including each subquestion) in no more than seven (7) pages. Applicants must submit answers in this MSWord document, providing answers in the appropriate text box. Send submissions via email no later than December 1, 2013 at 18.00 GMT to s-richard@vivusrenewables.com. Please put the name of your organization followed by VIVUS MOVE SMART FUND in the email subject line.

Eligibility All applicants must be rural banks/rural-based FINGOs duly licensed by the Bank of Ghana and with a minimum of three (3) years in operation.

Selection Criteria Vivus will evaluate applications based on the responses to the questions.

Next Steps A Review Committee will evaluate all eligible applications. VIVUS will shortlist proposals and contact successful applicants and work with them to complete a feasibility study on the ground followed by financing. Applicants will learn the results of the EOI stage approximately four weeks after the deadline.

[This is the end of the background and instructions. The cover page and application begin on the next page.]

Vivus 3-wheeler Rural Mobility Initiative for Ghana Expression of Interest: Official Application

EOI Application

Instructions: Please provide an answer to each question in the box provided. Your total application, not including the cover page, cannot exceed six pages. Exceeding the page limit or failing to answer all questions will result in an automatic disqualification.
Organization Name Point of Contact
*Please list one individual to receive all communications from Vivus regarding this EOI.

First Name

Last Name

Address

Point of Contact Email

Point of Contact Phone Number

How did you learn about this opportunity? (If) Your organization is a:
*Please check only one box.

__ Rural Bank __ Rural-based FINGO __ Other (please specify)

Q1 Market Potential Give us an overview of the rural community you are operating in? (population size, density, economic profile) [Provide answer here]

What is the level of economic activity as compared to the capital of the Region? (E.g. comparing Konongo to Kumasi in the Ashanti Region). Please affect a score from a scale of 1-10; with 10 being the highest score given. Describe the level of economic activity. [Your Score from 1 to 10] [Provide answer here]

Please list all the economic activities/rural businesses that could potentially benefit from the availability of tricycles offering loading services? [Provide answer here]

Vivus

Vivus 3-wheeler Rural Mobility Initiative for Ghana

EOI Application

How many market days are currently taking place? Do you see potential in supporting market traders or small farmers in aggregating their production from the farm gate level to market days? [Provide answer here]

What other existing modes of transportation (machinery, animal, human) are in use for loading goods within your rural community? In your opinion, what are their strengths and weaknesses? [Provide answer here]

Q 2 Partnership What has been your total deposit in the last 3 years? What has been the loan volume granted to your customers in the last 3 years? Please mention the number of benefiting customers as well and segregate between individuals vs. organizations [Provide answer here] Year 1 Year 2 Year 3 What has been the repayment rate in the last 3 years? [Provide answer here] Year 1 Year 2 Year 3 What do you differently that stands you apart from other rural banks/rural-based financial intermediaries in Ghana? [Provide answer here]

Describe appropriate marketing activities you believe could promote the leasing scheme in your community. [Provide answer here]

What amount of funding are you anticipating to be drawn as loan guarantee from the VIVUS MOVE

SMART FUND?
[Provide answer here]

Vivus

Vivus 3-wheeler Rural Mobility Initiative for Ghana

Please confirm the following:

EOI Application

(1) I am in a position to contribute 10% as leverage liquidity as loan for the acquisition of 3-wheeled vehicles ____Yes _____No

(2) I am in a position to make land available at no cost as parking space ____Yes _____No Own Land Other ___________________ Land leased by me

Your type of land: Own premises Free Land to be requested

Describe any additional support you could potentially offer to make the joint-initiative a success [Provide answer here]

What suitable month/quarter in 2014 do you see as ideal in kick-starting this initiative in your community? [Provide answer here]

Any questions should be addressed to s-richard@vivusrenewables.com. Best of luck!

Vivus