Tenders are invited for Institutional Capacity Assessment of Yemen Local Implementation Agencies. Publication Date: 01/10/2026 12:00 AM EST EOI Deadline: 01/26/2026 11:59 PM EST Background: This document outlines the Terms of Reference (ToR) for a consultancy aimed at conducting an institutional capacity needs assessment and developing capacity development plans for local institutions implementing development projects in Yemen. Yemen remains the least developed country in the Middle East, North Africa, Afghanistan and Pakistan (MENAAP) region, suffering from resource depletion, poor governance, widespread poverty, low human capital, and weak rule of law exacerbated by the 10-year conflict. The prolonged Fragility, Conflict, and Violence (FCV) crisis is shaped by governance fragmentation between the Houthi Movement and the Internationally Recognized Government (IRG), economic collapse, environmental challenges, and geopolitical aspects. Since 2016, the World Bank Group (WBG) has been supporting development work in Yemen by operating via third-party implementers (TPIs), primarily United Nation (UN) agencies. The TPIs often subcontract national local institutions that have proven track record to deliver results with due diligence, as well as effectively, efficiently and impartially throughout Yemen, including in remote areas. Since 2020, informed by the Country Engagement Note (CEN), the WBG has mobilized significant support for Yemen, delivered major development outcomes and illustrated the value of remaining engaged through its portfolio of about seven to ten projects that benefit populations across Yemen and focus on (i) preserving basic service delivery and human capital, and (ii) promoting food security, resilience, and livelihood opportunities. Going forward, regularly updating the capacity of national and local institutions and more systematically drawing on their strengths, combined with innovative third-party monitoring models, may enable the WBG to better navigate Yemens evolving and complex operating context. To better understand the capacities of local institutions, the WBG conducted an institutional assessment of local implementing agencies between 2020 and 2022, which is being updated by this 2025/2026 assessment. The past assessment identified the institutional strengths and weaknesses of eight national local institutions. This new assessment in 2025/2026 aims to update those findings, as relevant, and to support the WBGs long-term strategyinitiated in FY16to sustain and strengthen institutional systems and implementation capacity for Yemens transition and recovery when the country context allows. This assessment will primarily focus on local institutions operating in IRG-controlled areas, with the potential inclusion of how some of the selected institutions operate in Houthi-controlled areas, subject to security and access conditions to be determined by the WBG. Objective The objective of this proposed assessment is to (1) understand the current institutional and implementation capacities of local institutions and (2) provide practical capacity building plans for the assessed institutions. Hence, the proposed assessment will (i) establish an evidence base on the institutional and implementation capacity of key local semi-autonomous agencies serving as de facto Project Implementation Units (PIUs) through an update of the 2020/2022 assessments, including identifying institutional strengths, gaps, challenges, risks for the PIUs from implementation of WBG-financed projects, and capacity needs across the assessed PIUs, and (ii) based on the findings, develop evidence-based, targeted capacity-building plans; these can be rolled-out subsequently (not under this assessment) to help strengthen the capacities of the assessed local institutions. The proposed PIUs to be assessed are: Social Fund for Development (SFD), Small and Micro Enterprises Promotion Services (SMEPS), Public Works Project (PWP), Rural Access Program (RAP), the Urban Water and Sanitation Project Management Unit (UWS-PMU), and the Rural Maintenance Fund (RMF). Specifically, the assessment framework includes the following aspects: an institutional capacity assessment, an implementation capacity assessment, and an assessment of internal systems and procedures. The institutional capacity assessment focuses on the mandate, structure, and operational effectiveness of targeted institutionsparticularly their local-level functionsto determine their readiness to deliver on their respective mandates. The implementation capacity assessment reviews key functional areas required for the effective execution of WBGfinanced projects, including human resource and organizational management, financial management, procurement, project management, communications, monitoring and evaluation, safeguards, and risk management. The assessment of internal systems and procedures includes internal audit and control, manuals, record-keeping capacity building, and coordination. The assessment will primarily focus on local institutions operating in IRG-controlled areas, with the potential inclusion of selected institutions in the Houthi-controlled areas, subject to security and access conditions. The assessment will measure actual implementation of legal and regulatory frameworks and procedures, not only their de jure design. The proposed assessment will screen the local institutions based on the following aspects (see annex 1 for a more detailed description): Institutional capacity assessment Institutional Legal Status and Organizational Structure Human Resource capacity Technical Capacity Geographical and Sectoral Reach Governance structure, including oversight and supervision (Steering Committees roles, representation and composition) Implementation capacity assessment Financial Management, including planning, budgeting and external audit as well as flow of funds. Procurement Operational manual Project Management and Interagency Coordination Monitoring and Evaluation Arrangements, including data collection and analysis Environmental and Social Safeguards Communications and Grievance Redress Mechanisms Risk Management/Risk Monitoring / Risk Mitigation Coordination mechanisms to implement projects from multiple donors Internal Systems and Procedures Internal Audit and control Manual of Procedures Record keeping and archiving system Training and capacity building programs Centralized capacity to coordinate across projects The capacity building plans, one for each local institution, will identify the specific capacity building needs of each institution in terms of institutional capacity, implementation capacity, as well as internal systems and procedures. Once the capacity assessment is completed, the findings will be used as an input to develop a detailed capacity building plan for each local institutions that is tailored to each local institution to enhance its institutional capacity, implementation capacity, and internal systems and procedures in order to effectively and efficiently implement WBG-financed projects in the future. The list of local institutions included in the assessment is attached in Annex 2. Methodology The consultancy work will employ a mixed-methods approach, combining secondary data and document analysis, stakeholder interviews, focus group discussions, key informant interviews and organizational mapping techniques using standardized tools and frameworks for data collection and analysis ensuring reliability and consistency. The assessment will use standard tools and approaches for qualitative and quantitative data collection, using primary and secondary data. While the in-country data collection is focused on IRG-controlled areas, the firm will assess the capacity of national local institutions to operate across all Yemen, i.e., in both, Houthi- and IRG-controlled areas, assessing the institutions geographical reach and ability to operate Yemen-wide. In the first phase, to better understand the needs and requirements of the WBGs operating procedures and collect inputs, the selected firm will conduct initial consultationsvirtuallywith the WBG Task Team that will support the firm and comprises technical colleagues working on FCV, Governance (including (Financial Management and Procurement teams), Environment and Social Safeguards, and other experts as recommended by the Task Team. The firm will complement this with a desk review of key documents, including existing assessments conducted by other institutions and teams that the World Bank will recommend. Second, the selected firm will collect inputs and information in Yemen from representatives of the national local institutions/PIUs, sector line ministries, and other relevant government counterparts to assess the capacities of the select local institutions. Third, in-person field missions may be undertaken, as needed, to interview local institution representatives in Aden and, where applicable, project beneficiaries and local branches focusing only in the territories controlled by IRG. Fourth, the assessment will be conducted in two phases, i.e.: Phase I will focus on assessing the capacity of the selected national local institutions, while Phase II will focus on developing capacity building plans based on the findings of the first phase. a) Phase I will be conducted and completed during January May 2026: This phase will include (i) desk review of existing data, documents and assessments; (ii) additional data collection, field visits, interviews; (iii) preparation of an Executive Summary that consolidates the main assessment findings. b) Phase II will be conducted and completed during June September 2026: This phase will focus on (i) designing the tailored capacity building plans for each local institution/PIU, informed by the results of the assessment, and ( Tender Link : https://wbgeprocure-rfxnow.worldbank.org/rfxnow/public/advertisement/6463/view.html
