TERMS OF REFERENCE FOR Provision of Debt Recovery Services for Rwanda Medical Supply Ltd (RMS) Rwanda Medical Supply Ltd (RMS) is a government-owned enterprise mandated to ensure the timely, reliable, and affordable supply of medicines and health commodities to all public health facilities in Rwanda. Effective financial management and cash-flow stability are essential to RMS’s mandate, and delays in payments by clients significantly impact the organization’s operational effectiveness, efficiency, financial sustainability, and service delivery capacity.To strengthen its financial position, RMS seeks to engage a qualified debt recovery consulting firm to support the organization in recovering outstanding receivables, strengthening collections processes, and building long-term institutional capacity for effective credit management.I. Background and RationaleRMS operates a national distribution system supplying medicines and medical supplies to all public health facilities here referred as “Clients”. Over time, RMS has accumulated significant long outstanding receivables from various customers including Hospitals, Health Centres, Health Posts and Rwanda Biomedical CenterDelays in payments have created: Cash-flow constraints impacting procurement, warehousing, and distribution activities Increased operational risks and financial exposure Administrative inefficiencies in collections follow-up Challenges in forecasting and budget execution To address these challenges, RMS intends to contract a specialized Debt Recovery Consulting Firm with a proven track record in large-scale debt collection, credit risk assessment, negotiation strategies, litigation support (if applicable), and institutional capacity-building in financial recovery systems.   The assignment aims to ensure efficient, ethical, and sustainable recovery of outstanding debts while strengthening RMS’s long‑term credit management systems.II. Objectives of the AssignmentOverall ObjectiveTo enhance RMS’s financial sustainability by recovering long outstanding debts and strengthening its internal credit management and debt recovery systems.Specific Objectives Conduct a comprehensive analysis of RMS’s outstanding receivables portfolio. Categorize debts based on age, value, client risk, collectability, and legal standing. Develop and implement a structured and ethical debt recovery strategy. Recover overdue invoices on behalf of RMS following approved procedures. Strengthen RMS’s internal credit and debt management processes and tools. Provide capacity-building for RMS staff involved in receivables and collections. Advise RMS on policy reforms, legal measures, and systems improvements to prevent future arrears. III. Scope of WorkThe consulting firm will undertake the following:a) Portfolio Assessment and Segmentation Review RMS’s full accounts receivable ledger. Assess documentation completeness, billing accuracy, and ledger validation. Classify receivables by: age, client type, dispute status, and legal status. Identify high-risk and potentially uncollectable accounts. b) Debt Recovery Strategy and Action Plan Develop and validate a tailored recovery plan for each portfolio segment. Propose negotiation, restructuring, repayment plans, or settlement options. Prepare communication templates (demand letters, notices, reminders). Recommend legal actions where appropriate (in collaboration with RMS Legal team). c) Execution of Debt Recovery Activities for debts of  24 months and over Engage clients through calls, field visits, written notices, and mediation. Conduct negotiations and follow-ups while adhering to ethical standards. Coordinate with RMS Finance and Legal teams on disputed accounts. Ensure transparency, documentation, and traceability of all outstanding debtors balances d) Strengthening Internal Processes and Controls Propose improvements to prevent future accumulation of arrears. Recommend credit-risk categorization tools and client scoring systems. f) Reporting and Performance Tracking Provide Monthly Receivable progress reports Templates that the Recovery Unit shall be using Going forward. Maintain a secure database of Outstanding Receivables and collections. Document all recovered amounts with full supporting evidence. Submit a final report summarizing outcomes, lessons learned, and recommendations.  IV. Expected Deliverables Inception Report Methodology, detailed work plan, risk assessment, and data requirements. Receivables Assessment Report Portfolio segmentation, collectability analysis, and recommended actions. Debt Recovery Strategy & Action Plan Approved plan for structured collections and escalation paths. Monthly Recovery Progress Reports Amounts collected, engagements conducted, challenges, and next steps. Final Consolidated Report Total debts recovered, performance analysis, and strategic recommendations. V. Expected Outcomes Increased cash inflows through successful recovery of outstanding debts. Clear, reliable, and up-to-date receivables portfolio. Strengthened internal credit and collections management systems. Enhanced staff capacity in debt management and negotiation. Reduced financial risks and improved working capital management. Long-term sustainability through institutionalized credit controls.  VI. Duration and TimelineThe consultancy will run for one year from the date of contract signature. Indicative Timeline # Deliverable Timeline 1 Inception report Month 1 2 Receivables assessment Month 1 3 Debt recovery strategy Month 1 4 Debt recovery implementation & monthly reports Months 2–8 7 Final report and handover Month 9-12  VII. Required Qualifications and ExperienceThe consulting firm must demonstrate: At least 5 years of experience in debt recovery, credit management, or financial consulting. Proven track record in large-scale receivables recovery (minimum 3 similar assignments). Experience working with government agencies, public enterprises, or the health sector. Expertise in financial analysis, negotiation, and dispute resolution. Strong understanding of Rwanda’s commercial, contract, and debt recovery laws. Adequate staffing capacity (legal experts, financial analysts, and field collectors). High ethical standards and strict adherence to confidentiality requirements. VIII. Conditions of the Consultancy Payment will be linked to deliverables and performance (including recovery success). All documents, reports, and data collected shall remain the property of RMS. The firm shall strictly comply with RMS and GoR confidentiality and data protection policies. Debtor engagement must be ethical, non-coercive, and respectful of legal frameworks. IX. Supervision ArrangementsThe consulting firm will report directly to the Ag. Director of Finance and Administration (Ag.DFA) and will work closely with the Finance, Legal, and Warehouse, Sales and Distribution Departments. Periodic progress review meetings will be held with RMS management. X. Application RequirementsInterested firms must submit: Technical proposal Understanding of the ToRMethodology and approachWork plan and staffingEthical and legal compliance considerations Company profile and track record Evidence of completing similar assignments (at least two references) Team CVs Qualifications and relevant experience Certificates/Legal Documents Company registration, tax clearance, and other compliance documents.XI. Evaluation Criteria Criterion Max Score Description Technical Proposal 60 Methodology, approach, understanding of assignment in context of RMS  and detailed work plan Relevant Experience 70 Proven track record, similar projects in terms of good completion certificates minim (3), references Qualifications of Proposed Team 40 Skills, certifications in terms of degree, experience (legal experts, financial analysts, and field collectors) Total 100  Financial proposalIndicate the costing Method Priced quoted must be in terms of percentage intended to be charged on debt collected The quoted price must be inclusive of all applicable taxes. Currency: Rwandan Francs (RWF)Note that the lowest quoted percentage (%) of the debt Amount of recovery, will be awarded the tender.