GCX Rulebook Review Consultant at Nathan Associates

The Feed the Future Ghana Trade and Investment (GTI) Activity was initiated December 1, 2021 and will run for five years.  The Activity will work closely with public and private sector stakeholders to improve the enabling environment for Ghana’s economic growth by (1) facilitating growth in export-oriented trade; (2) improving and developing product standards; (3) catalyzing investments in private enterprises related to high-value commercial crops; (4) promoting job creation, particularly among women and youth; (5) promoting economic diversification; and (6) increasing foreign exchange revenues from high-value export crops. GTI will make investments in firms that trade goods across borders, spur innovation, and build the capacity of the entire trade sector.

In scaling up our approach, GTI will develop a flexible menu of innovative financing activities that include equity and quasi-equity instruments that leverage the private sector to increase two-way trade and investment between the United States and Ghana. Our transaction advisory services will facilitate exports and investment and adhere to the principle of additionality to address market gaps unfilled by the private sector.

GTI’s partner Ghana Commodity Exchange (GCX) is seeking to review and update its current rulebook that guides market operations. To achieve this outcome, GTI will engage the services of a consultant/consulting firm with experience and knowledge in commodity exchange design, set up and operations. The updated rulebook will conform to best practices and operations of commodity exchanges and ensure active participation and operations of the key actors who play in the space.  The revision of the rule book has become necessary since the current rule book was written before “the coming to live” of the Exchange’s operations. Five years after the launch of operations is an ideal time for a review of the rule book to mirror market dynamics and make the Exchange more inclusive.

OBJECTIVES

The purpose of this assignment is to engage the services of a qualified local/international consultant/consulting firm to undertake a review and update of Ghana Commodity Exchange Rulebook (GCX Rulebook August 2019).

The consultant/consulting firm will conduct a full review, provide recommendations, and lead the amendment of the rulebook to include current and international best practices used by efficient commodity exchanges.

The amendment of the rulebook will help improve, inter alia:

1. Administration and Governance of the Exchange
2. Membership Rules
3. Trading Rules
4. Clearing and Settlement Rules
5. Warehouse Receipt Rules
6. Contract Rules
7. Rules of Discipline and Enforcement
8. Conciliation and Arbitration
9. Settlement Guarantee Fund
10. Market Information Dissemination
11. Market Surveillance
12. Compliance

Required Skills or Experience

METHODOLOGY

This assignment will follow an approach that considers the entire market system, the processes, key actors, pricing mechanism, rules and regulations, supporting functions, and use of current technology.

The expected tasks are as follows:

1. Desk and literature review
2. Assessment of existing infrastructure
3. Assessment of key processes, systems, and actors
4. Key recommendations

Technically, the assignment will analyze the current market conditions, identify gaps, and propose revisions to the rulebook. This will also outline the challenges and opportunities to shape operations, influence policies and programs, and competition environment.

KEY TASKS

The main tasks to be conducted are as follows:

1. Review of existing GCX Rulebook
2. Engage core staff of the Exchange in a brainstorming session to explore how current operations in the marketplace align with the rules in the current GCX Rulebook
3. Analyze market dynamics for the commodity market
4. Develop recommendations for the GCX Rulebook amendments
5. Validate the recommendations with stakeholders
6. Revise and amend the GCX Rulebook

DELIVERABLES AND TIMEFRAME

The assignment is expected to start on 13 February 2023 and will continue for a period of up to 12 weeks.

Deliverables include:

1. Inception report on the review and recommendations of the GCX Rulebook
2. Draft/Revise GCX Rulebook
3. Presentation to the Regulator (Ghana Securities and Exchange Commission)
4. Presentation to a validation workshop involving market actors
5. Final report

The technical offer should be concisely presented and structured in the following order to include but not necessarily limited to the following information:

1. Description of your or the firm’s qualifications with the following documents:
   1. Profile
   2. Registration Certificate
   3. Most recent audited reports
   4. Year founded
   5. Number of similar and successfully completed projects
   6. Number of similar projects currently underway
   7. Include any information that will facilitate our evaluation of you or your firm’s substantive reliability, financial, and managerial capacity to provide the services requested
2. Understanding of the requirements under this assignment, proposed approach, solutions, methodology, and outputs
   1. Description of your capacity to undertake this study
   2. Description of your organization’s experience in similar services
3. Proposed personnel to carry out the assignment

Content of Financial Offer

The financial offer must cover all the services to be provided (price “all inclusive”). GTI is exempted from VAT. You are requested to hold your offer for 60 days from the deadline for submission. GTI will make its best effort to select a consultant/company within this period. GTI standard payment is within 30 days after satisfactory implementation and receipt of documents in order.

The cost of preparing the bid and of negotiating the contract, including any relevant travel, is not reimbursable and cannot be included as a direct cost for the assignment. Any activity undertaken or expenses incurred in preparation of the contract before the actual contract is signed shall not be borne by the bidder.

Proposal Evaluation

Each proposal will be considered separately and independently. Bidders shall submit a complete proposal of each solicitation in which they wish to participate. References to previous and on-going proposals will not be considered. Award of a previous contract with GTI will not be considered in itself as preference or guarantee for the award of future solicitation on the same subject.

Technical and Financial evaluation

For the award of this project, GTI has established evaluation criteria that will govern the selection of offers received. Evaluation is made on a technical and financial basis. The percentage assigned to each component is determined in advance according to the table below.

The Technical Offer will be evaluated utilizing for the following criteria and percentage distribution (subject to change) from the total score:

The Financial offer will be scored out of 30%. The financial component will only be analyzed for bidders that pass the technical evaluation with a score of at least 45% out of 70%.