V2_MicroSave_Proposal to GMC

1. 1 CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of MicroSave is strictly prohibited 1
State of Affordable Private School
Financing in Manila, Jakarta,
Yangon, and Lagos
MicroSave proposal to
Gray Matters Capital (GMC)
July 2017

2. 2 2
Scope of work (as per discussion with GMC)
We understand GMC would like to understand education
system in the cities of Jakarta, Manila (Metro Manila),
Yangon, and Lagos, with an aim to identify ways in which it
can support Affordable Private Schools (APS) in these cities. At
its end, GMC has already done elaborate secondary research of
these markets. It would now like to further:
1. have a nuanced understanding of the market,
2. investigate investment opportunities, and
3. identify risks in those investments.
Through MicroSave’s study, GMC will evaluate its
options of prospective market-entry strategy in the
four mentioned cities.
This deck presents MicroSave’s understanding of the work and
the approach and methodology that it will follow to conduct
the study. Also showcased is our proposed team structure. This
is followed by country-wise work-plans, timelines and costs.
Lagos
(Nigeria)
Yangon
(Myanmar)
Jakarta
(Indonedia)
Manila
(Philippines)

3. 3 3
GMC’s objectives can be classified into three work-pillars
Understanding APS market
size and surrounding
ecosystem in the city
1. Size of the APS market
2. School education system of
the city
3. Other relevant
considerations
In following slides we elaborate on our understanding of the pillar followed by key activities
Understanding and assessing
APS operations
1. School administration and
management
2. Strategic business management
3. Financial management
4. Community relations
management
Understanding current APS
lending scenario and
funding gaps
1. Profile of the existing lenders
2. Financial products on offer
3. Loan eligibility and
processing guidelines for APS
4. Non-financial support
extended
1 2 3

4. 4 4
Output: Education ecosystem index of the city, explained by a SWOT analysis
Pillar 1: Understanding APS market size and surrounding ecosystem
1. Size of the APS market
 Penetration of APS (registered and unregistered) in
urban and peri-urban areas of the city; % of children
who attend APS (only primary in Yangon)
 Profile of existing chains of APS in the city
(associations and franchise networks), emerging
edupreneurs in APS space, and single-school
proprietors
 Public/private school split; type of private educational
associations (like trusts, charities, societies,
partnerships, sole proprietorships); teacher
qualification and recruitment standards
 School associations - their influence and roles
 Nature of govt., corporate and volunteer assistance in
the APS.
 Average profitability in the sector
 Government’s approach and policy, including in budget allocation,
regulatory laws, schemes and subsidies (including for affirmative
action), primary and secondary education structure, certifications
and examination pattern, curriculum guidelines
 Relevant guidelines and regulations (such as RTE)
 Education boards: affiliation norms, affiliation through alliances
2. School education system of the city
 Land acquisition, building/infrastructure, and registration
procedures, utilities billing, disaster preparedness, municipalities
norms, taxation laws, company laws, labour laws, foreign
investment guidelines, child rights, road transport mandates,
CSR guidelines, SMEs servicing the schools
3. Other relevant considerations impacting
schools’ set-up and operations

5. 5 5
Pillar 1: Key activities
Secondary Research Phase
 Doing country-wise secondary research on govt.
policies on school education system
 Identifying relevant stakeholders – experts (James
Tooley), associations (e.g.The National Association of
Proprietors of Private Schools (NAPPS) in Nigeria, The
Association of National and Private Schools (ANPS) in
Indonesia), relevant government departments
 Conducting interviews with international and/or local
experts to enhance understanding of education
ecosystem
 Doing a fine print study of official documentation on
other relevant legal contours like labour laws, company
laws, land laws, municipality laws, RTE or similar act
etc. to understand their implications on APS
 Gathering available data on the size of the APS market
 Setting up interviews with school education experts
and key APS experts
Primary Research Phase
 In-depth interviews with key school education experts,
both in govt. and outside, to understand the education
system dynamics of the city. Also, hold interviews with
international experts on APS.
 In-depth interviews with key APS-related industry
groupings, experts, and lobby networks to understand
their agenda for the sector
 In-depth interviews with promoter groups and
franchise owners to understand their vision and
mission
 In-depth interviews with relevant government and
municipal departments, and banks

6. 6 6
Output: APS segmentation basis school operations (size and scale) and robustness of
various school systems discussed above
Pillar 2: Understanding and assessing APS operations
1. School administration and management
 Role of promoters and/or proprietors, including their terms & conditions of
engagement
 Academic calendar, admission procedures – shortlist, selection, and waitlist
 Adherence to best accounting principles
 Pupil management, including fee collection practices (and delinquency
management)
 Compliance with regulatory and licensing authorities
 B2B deals with relevant service providers, including SMEs in the neighbourhood
 Managing school-teacher relationship, including their unions and political clout,
if any.
 Fundraising from investors/incubators/financial institutions
 Infrastructural expansion priorities and low-cost model
experiments
 Promotional communication and business development vis-à-
vis the target segment
 Competitive landscape (including players’ type, geographical
spread, enrollment, branding etc.)
2. Strategic business management
 Expense streams, including their frequency and values; cash
inflows from school fees, including their timelines and values.
(Also, understanding any other school asset that helps garner
revenues, including the bus and property rental.)
 Accounting and financing systems
 In the process identifying major financing needs
3. Financial management
4. Community relations management
 Ensuring quality of teaching vis-à-vis in public schools catering to them
(including details about the most important bearer of “quality”)
 Parents’ threshold in terms of fees, course, co-curricular activities etc. which
makes APS attractive. meeting parents’ demands and expectations; parent-
teacher meeting formats and frequency

7. 7 7
Pillar 2: Key activities
Secondary Research Phase
 Undertaking literature review on modus operandi of
APS functioning, key operational functions, and
understanding country-level or international
benchmarks, if any
 Finalising the sampling design for the APS and other
stakeholders such as parents to arrive at a city-wise
sample of schools to be studied in-depth during
primary research
 Setting up interviews with APS management
 Conducting in-depth interviews with key international
experts on APS to understand nuances of school
management
Primary Research Phase
 Interaction with school proprietor and senior
management on various aspects of daily school
administration and financial management
 Interacting with selected parents to understand their
views of APS
 In-depth interviews with key international experts on
APS to understand nuances of school management

8. 8 8
Output: Lender evaluation, highlighting suitability of prospective institutional partners
Pillar 3: Understanding current APS lending scenario and funding gaps
1. Profile of the existing lenders
 No. and types (NGO, Individual, Institutional,
Donor) of lenders existing in the APS market
 Financial exposure of lenders to APS market;
expected returns on investment
 Lenders’ sources for raising finances – impact
investment vehicles, philanthropists, govt. aid,
CSR, private equity etc.
 Credit scoring techniques employed for assessing loan amount,
including cash flow history of APS (typically of past three years)
 Eligibility criteria for availing loan including credit history of
promoter/proprietor
 People and Process deployed by lenders (turnaround times
during documentation stage and dedicated staff machinery for
APS loans, terms and conditions)
3. Loan eligibility and processing guidelines for APS
 Loans: Working capital loans, asset purchase loans, teacher loans,
SME loans, including their interest rates and EMI structuring
 Insurance, Fee collection accounts and digital payments solutions
for APS
2. Financial products on offer
4. Non-financial support extended
 Trainings: school management training;
teacher training
 Management support: promotions,
fundraising etc.

9. 9 9
Pillar 3: Key activities
Secondary Research Phase
 Doing a city wide scan of APS lenders (NGO,
Individual, and Institutional, Donor)
 Understanding the profiles of the lenders and the
relevant financial products available in the markets of
four cities
 Developing knowledge on APS lending’s terms and
conditions prevalent in the city
 Setting up interviews with key APS lenders
 Conducting in-depth interviews with key international
experts on APS to understand financing gaps of APS
and how APS meet the funding gap
Primary Research Phase
 In-depth study of existing APS lending practices and
other relevant policies
 In-depth interaction with lenders to understand the
existing financing gaps in relation to APS lending
 In-depth interviews with key international experts on
APS to understand financing gaps of APS and how APS
meet the funding gap
 Scouting for greenfield opportunities if in case existing
mechanisms prove unfit as a good financing option*
*This is not part of current ToR; in case need arises to scout for greenfield opportunities, MicroSave will revisit the LoE and seek approval from GMC

10. 10 10
 Project Director; 25+ years of consulting experience in financial services with specialisation in development
finance and SME.
 Advisory on Financial Services Development & Support; Value Chains Financing & Development; SME;
Environment Financing and Capital Advisory Services Practice Groups.
 Highly experienced in overall project management, implementation support, technical support, policy
advocacy, review and assessment
Team and its Experience (1/2)
We present a team which offers varied skilled sets in market research, business strategy development, credit product review,
risk management, and social performance management, having worked with variety of donors and financial service providers
in four project countries and elsewhere too in Asia and Africa.
 Project Manager; 21+ years of consulting experience in financial services with specialisation in design and
implementation of large scale financial sector programmes and project management. She has vast experience
of working in Indonesia, Myanmar and the Philippines.
 Managed and evaluated projects for multilateral agencies and philanthropic foundations across Asia, Asia-
Pacific and Africa
 Research lead; 11+ years of experience working with governments, central banks, multilateral agencies,
philanthropic foundations and financial service providers across Asia and Africa.
 Experienced in client focussed market research, strategy development and governance, financial capability
development, risk management, and credit products design & review
Manoj Sharma
Managing Director - Asia
Bhavana Srivastava
Associate Director & Domain Leader
- Research, Innovative Programmes
and Evaluation
Akhand Jyoti Tiwari
Senior Manager,
Behavioural Research and Design

11. 11 11
 Research Team Member; 3+ year of experience working with multilateral agencies, philanthropic
foundations, financial service providers, and community-based institutions in India
 Experienced in customer centric research, managing quantitative research, data analysis, participatory
qualitative research, and impact evaluation studies
Team and its Experience (2/2)
 Research Team Member (Jakarta); 7+ years of experience working with financial services
providers in Indonesia
 Experienced in market research, risk management, internal controls assessment, and
over-indebtedness study
 Research Team Member (Manila); 7+ years of experience working with the financial services providers and
donors in the Philippines
 Experienced in market research, strategy development and governance, financial capability development,
product development, process mapping, due diligence, risk management, delinquency management, and
social performance management
Mimansa Khanna
Assistant Manager,
Behavioural Research and Design
Astri Sri Sulastri
Assistant Manager,
Country Program Development,
Indonesia
Louie Lanzador Cepe
Manager,
Country Programme Development,
The Philippines
 Research Team Member (Lagos); 9+ years of experience working with the financial services providers in
multiple countries in Africa including Ghana and Nigeria
 Experienced in market research, strategy development, product development, fraud and risk management,
business development, marketing and relationship management
Jacqueline Jumah
Manager,
The Helix: Training and Consulting,
Kenya

12. 12 CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of MicroSave is strictly prohibited 12
Workplan and Budget

13. 13 13
Work-plan and LoE – Jakarta, Indonesia
Sr. Activity
Project Timeline
W1 W2 W3 W4 W5 W6 W7 W8 W9
Component 1 Secondary research
C1.T1 Regulatory and policy scans
C1.T2 APS network and penetration scan
C1.T3 Individual interviews with experts (phone)
C1.T4 Field work planning and preparation of guides
Component 2 Primary research
C2.T1 Interviews with APS, school management, industry experts
Component 3 Report Writing
C3.T1 Report draft preparation
C3.T2 Consolidation of feedback
C3.T3 Report final draft submission
Summary Budget (USD)
Total
Staff and consultant costs 67,400
Daily subsistence allowance (DSA) 8,352
Flights: International (including terminal fee and airport transfers) 2,200
Local Taxi cost (within project city) 3,800
Visa fees -
Mobile phone and internet communicationcost 380
Report designing and printing 1,000
Total direct cost 83,132
Total cost (inclusive of tax) 83,132
Indicative period of work: August-September 2017
MicroSave will consider GMCs’ feedback on scheduling of countries

14. 14 14
Work-plan and LoE – Manila, The Philippines
Sr. Activity
Project Timeline
W1 W2 W3 W4 W5 W6 W7 W8 W9
Component 1 Secondary research
C1.T1 Regulatory and policy scans
C1.T2 APS network and penetration scan
C1.T3 Individual interviews with experts (phone)
C1.T4 Field work planning and preparation of guides
Component 2 Primary research
C2.T1 Interviews with APS, school management, industry experts
Component 3 Report Writing
C3.T1 Report draft preparation
C3.T2 Consolidation of feedback
C3.T3 Report final draft submission
Summary Budget (USD)
Total
Staff and consultant costs 67,400
Daily subsistence allowance (DSA) 10,959
Flights: International (including terminal fee and airport transfers) 2,400
Local Taxi cost (within project city) 3,800
Visa fees 156
Mobile phone and internet communicationcost 380
Report designing and printing 1,000
Total direct cost 86,095
Total cost (inclusive of tax) 86,095
Indicative period of work: October-November 2017
MicroSave will consider GMCs’ feedback on scheduling of countries

15. 15 15
Work-plan and LoE – Lagos, Nigeria
Sr. Activity
Project Timeline
W1 W2 W3 W4 W5 W6 W7 W8 W9
Component 1 Secondary research
C1.T1 Regulatory and policy scans
C1.T2 APS network and penetration scan
C1.T3 Individual interviews with experts (phone)
C1.T4 Field work planning and preparation of guides
Component 2 Primary research
C2.T1 Interviews with APS, school management, industry experts
Component 3 Report Writing
C3.T1 Report draft preparation
C3.T2 Consolidation of feedback
C3.T3 Report final draft submission
Summary Budget (USD)
Total
Staff and consultant costs 67,400
Daily subsistence allowance (DSA) 7,235
Flights: International (including terminal fee and airport transfers) 3,750
Local Taxi cost (within project city) 3,800
Visa fees 504
Mobile phone and internet communicationcost 380
Report designing and printing 1,000
Total direct cost 84,069
Total cost (inclusive of tax) 84,069
Indicative period of work: January-February 2018
MicroSave will consider GMCs’ feedback on scheduling of countries

16. 16 16
Work-plan and LoE – Yangon, Myanmar
Sr. Activity
Project Timeline
W1 W3 W4 W5 W7 W8 W9 W10
Component 1 Secondary research
C1.T1 Regulatory and policy scans
C1.T2 APS network and penetration scan
C1.T3 Individual interviews with experts (phone)
C1.T4 Field work planning and preparation of guides
Component 2 Primary research
C2.T1 Interviews with APS, school management, industry experts
Component 3 Report Writing
C3.T1 Report draft preparation
C3.T2 Consolidation of feedback
C3.T3 Report final draft submission
Summary Budget (USD)
Total
Staff and consultant costs 61,275
Daily subsistence allowance (DSA) 4,743
Flights: International (including terminal fee and airport transfers) 2,100
Local Taxi cost (within project city) 2,800
Visa fees 171
Mobile phone and internet communicationcost 280
Report designing and printing 1,000
Total direct cost 72,369
Total cost (inclusive of tax) 72,369
Indicative period of work: March-April 2018
MicroSave will consider GMCs’ feedback on scheduling of countries

17. 17 17
MicroSave Offices
Delhi
Lucknow
Manila
Jakarta
Kampala
Nairobi Port Moresby
Tewkesbury
Hanoi
Singapore
Hyderabad
Dhaka
MicroSave Corporate brochure Contact us at Info@MicroSave.net
India Head Office:
Lucknow
Tel: +91-522-2335734
Fax: +91-522-4063773
New Delhi Office:
Tel: +91-11-41055537/38
Hyderabad Office:
Tel: +91-40-23516140
Kenya
Shelter Afrique House,
Mamlaka Road,
P.O. Box 76436, Yaya
00508, Nairobi, Kenya.
Tel: +254-20-
2724801/2724806
Fax: +254-20-2720133
Uganda
3rd Floor, Mirembe
Business Centre,
Lugogo Bypass
Kampala, Uganda.
Phone +256-393
202342
Mobile:
+256-706 842368
United Kingdom
The Folly, Watledge
Close,
Tewkesbury,
Gloucestershire
GL20 5RJ, UK
Tel. +44 1684-273729
Mobile +44 796-307
7479
Philippines
Unit 2408,The Trade and
Financial Tower,
7th Avenue Corner, 32nd
Street, Bonfacio Global
City, Taguig City 1634,
Metro Manila,
Philippines.
Tel: +(632) 477-5740
Indonesia
ANZ Tower 23rd Floor,
JI. Jend.
Sudirman Kav. 33A,
Jakarta Pusat 10210,
Indonesia.
Tel:+62 21 2954 6828/29
fax: +62 21 2954 6889
PNG
Corner of Musgrave
Street and Champion
Parade,
Port Moresby, Papua New
Guinea.
TeleFax No.: +675 321
8823/321 8854
Singapore
3, Shenton Way, #10-05,
Shenton House,
Singapore (068805)
Tel:+65 673 47955
Bangladesh
12/A, Level – 8, R#104,
Block
#CEN(F)
Gulshan – 2
Dhaka - 1212
Mobile:+8801755655274