Expression of Interest (EOI) for the Development of a Counterparty Risk Policy and Procedure Manual

  • Consultancy
  • Lusaka, Zambia
  • Applications have closed

Website Kwacha Pension Trust Fund

1) Introduction

Kwacha Pension Trust Fund (the “Fund”) is a self-managed pension scheme regulated by the Pensions and Insurance Authority. Its main objective is to provide pension benefits to its members on retirement or death.

The Fund’s investment activities are guided by its Investment Policy Statement (IPS) which is in turn informed by Statutory Instrument No 50 of 2021.

2) The Assignment

In line with the IPS, the Fund wishes to have in place a Counterparty Risk Policy and Procedure Manual (CRPPM) which will provide step-by-step processes of assessing counterparty risk in all investable asset classes which will include among others:

Fixed Term Deposits;
Corporate Bonds;
Collective Investment Schemes (Equity, Property, Money Market etc.);
Listed Equity;
Unlisted Equity;
Offshore Investments i.e., direct or indirect investment in Equity, Government Bonds, Term Deposits, Corporate Bonds etc;
Cash and cash equivalents; and
All other investment types currently permissible by SI 50.
The policy and procedures should cut across the following sectors of the economy:

Information Technology;
Financial services; and
Other services (transportation, telecommunications, healthcare, education and retail, among others).

3) Terms of Reference (ToRs)

The Counterparty Risk Policy and Procedure Manual should cover at minimum the following:

1. Governance structure: highlight escalation procedures and define roles and responsibilities of Staff and the Board of Trustees in managing counterparty risk;

2. Legal framework: outline any laws or regulatory requirements relating to counterparty risk. Where such laws do not exist in the local market, relevant international best practice can be cited;

3. Due diligence procedures: specify, per sector, documentation required, appraisal and verification processes for potential investments. Further, outline due diligence procedures for both potential investments and on-going reviews of counterparty creditworthiness;

4. Assessment and measurement: describe methodologies for assessing and quantifying counterparty risk i.e., risk matrices and tolerance thresholds. Additionally, prescribe how credit ratings, financial analysis and/or any other tools can be used to evaluate counterparty risk;

5. Investment Limits: establish limits per individual counterparty, sector or geographical region and describe procedures for monitoring these limits;

6. Approval Limits: recommend appropriate approval limits per asset type/ class indicating thresholds for the Board of Trustees and Management;

7. Reporting: define reporting requirements i.e., format and frequency; and

8. Review: define procedures for review and revision of the document.

Once the draft Counterparty Risk Policy and Procedure Manual is cleared by Management, you will be required to present the same for adoption to the Finance and Investments Committee and to the Board of Trustees for approval.

4) Requirements

The invited Firms will have to provide/demonstrate the following:-

a) Company profile describing the core business of the firm/company and a list of current and previous clients;

b) Proof of physical operational premises;

c) Certificate of Incorporation/Registration;

d) Valid Zambia Revenue Authority Tax Clearance Certificate for 2024;

e) PACRA Stamped form II (with details of directors/shareholders);

f) Copies of IDs of Shareholders/Directors/Partners and Senior Management;

g) Three recent (within 3 years) reference letters from reputable institutions that the firm has rendered similar professional services to, preferably clients in the financial services sector;

h) Five (5) years or more demonstrated evidence of performing similar works preferably in the financial services sector. This should include a description of similar assignments previously undertaken, the year the assignments were done, names of clients, amounts involved and references

i) Qualifications and experience of Senior Management Team and the team that will be assigned to this project. This should include, among others: postgraduate and relevant professional qualification in Finance and/or Risk Management as well as professional certifications/membership with relevant professional bodies/organisations;

j) Technical Proposals: the technical proposal should clearly explain the consultant’s understanding of the ToRs, demonstrate an understanding of various models applicable to the assignment, provide a clear explanation of the methodology to be used, and a comprehensive roadmap (workplan) for undertaking the assignment;

k) Bid validity period of at least 90 days from the date of quotation, (indicate validity of the quotation);

l) The financial proposal which should include the fee quotation for the assignment and the quotation should include all applicable taxes; and

m) Provide disclosure of any potential conflict of interest that may arise in carrying out the assignment.

Interested Consultants or Firms are to submit three (3) copies of their applications in a sealed envelope clearly marked ““Development of a Counterparty Risk Policy and Procedure Manual” to the address below by 16.30 hours on 3rd June 2024:

The Director

Kwacha Pension Trust Fund

Stand No. 5534

Corner Kakola/Libala Roads, Kalundu

Post Net Box 663 P/Bag E891


Electronic copies and bids not clearly labelled will not be accepted.

For any queries, please write to the following email addresses:

[email protected] and

[email protected]


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