Technical Advice on Structuring of an Innovative Blended Debt Climate Finance Instrument Tender

Procurement Summary

Country : South Korea

Summary : Technical Advice on Structuring of an Innovative Blended Debt Climate Finance Instrument

Deadline : 22 Aug 2023

Other Information

Notice Type : Tender

TOT Ref.No.: 86332826

Document Ref. No. : 10000TH-02

Competition : ICB

Financier : Other Funding Agencies

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Tenders are invited for Technical Advice on Structuring of an Innovative Blended Debt Climate Finance Instrument in Thailand.

PROJECT BACKGROUND:
Since 2014, the GGGI has worked with the Royal Thai Government ("RTG") to support the Country in the green economic development model. In early 2016, Thailand, with the Cabinet-s approval, became a GGGI Member Country. Housed in the Office of Natural Resources and Environmental Policy and Planning (“ONEP”) under the Ministry of Natural Resources and Environment. The ONEP is also Thailand-s National Designated Authority (NDA) with the Green Climate Fund (“GCF”).
Under the ongoing GCF Readiness and Preparatory Support Programme, the objective is to develop and design two Investment Concept Notes on i) ‘-blended debt financing instrument-- in Municipal Solid Waste (“MSW”) and Energy Efficiency (“EE”) sectors, and ii) ‘-equity/quasi-equity instrument-- in clean/climate technology SMEs and startups.

OBJECTIVE OF THE ASSIGNMENT:
The objective of this consultancy is to identify a consulting firm to provide support in design and development of an Innovative Blended Debt Climate Finance Instrument.
Under the overall guidance of Country Representative and close supervision of the Project Lead from GGGI, the Consultant shall support i) the development of framework for the establishment, operationalization, and capitalization of the ‘-blended debt financing instrument--, ii) the structuring of the optional models for the blended financing facility, including proving of the 3rd party credit opinion report and stress test of the optional structures, and iii) the development of tools for loan portfolio management and monitoring such as Lenders- Engineer functioning.

The Consultant shall be responsible for the following activities:

1) Develop the framework for the establishment, operationalization, and capitalization of blended debt financing facility.
2) Provide 3rd party credit opinion report and on alternative blended debt facility design and risk sharing models, including templates for the tentative term sheets, i.e., analysis of alternatives terms with the possible subordinated layer and credit enhancement structures, including sensitivity analysis.
3) Provide portfolio and project-level risk and stress test report under selected risk scenarios for MSW (such as feedstock shortage, fraud and realized technology risk) and EE projects.
4) Recommend risk mitigation alternatives and portfolio management criteria.
5) Provide technical opinion on the possible innovative carbon finance structures such as carbon credit linkages of the subordinated credit guarantee layer.
6) Develop detailed loan appraisal and loan portfolio management tool based on the best international due diligence practices and include detailed specification on the functionality Lenders- Engineer.
7) Conduct two (2) capacity building workshops to train the DAE candidate on the loan portfolio management and optional designs of the investment instrument, to be recorded at DAE Candidate-s premises. Each workshop will target minimum 15 participants from the NDA and DAE Candidate with target 50% women participation.

Documents

 Tender Notice