Description
IFC โ a member of the World Bank Group โ is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities. Our mission is to leverage the power of the private sector to end extreme poverty and boost shared prosperity on a livable planet.
IFC has created a climate-smart cities platform called APEX Green Cities. This new platform will help cities make decisions about the future of their energy, transport, water, and waste systems through an extensive array of policy and investment options alongside financial costs and payback calculations. The APEX Green Cities program aims to increase the pipeline of public and private climate-related investment influenced by city-level policies and investment plans.ย
IFC is supporting multiple client cities with APEX Climate Investment Opportunity Diagnostics (CIOID). The work involves preparing an assessment of low carbon investment opportunities using the citiesโ existing Climate Action Plan. CIOD evaluates the actions proposed in the Climate Action Plan in terms of cost, payback periods, and potential funding sources using IFCโs APEX software, and proposes a Green Investment Pipeline and its potential sources of finance (Figure 1). IFC is looking for support in its effort to review the citiesโ ability to raise funding and suggest solutions for financing the Green Investment Pipeline.
IFC is seeking the services of a Consultant to provide cities with the necessary tools to enhance their capacity to identify and access financial resources for executing their Green Investment Pipeline derived from using the climate-smart cities platform (APEX).ย ย
The objective of the assignment is for the Consultant to support cities in developing a Green Cities Financing Strategy. The Strategy needs to expand the cities capacity to access finance beyond traditional sources to implement the Green Investment Pipeline which will include various sources of finance, such as private finance, climate finance, or other business models.
โขย Phase I: Supporting client cities to develop a Green Financing Strategy as part of the Climate Investment Opportunities Diagnostic analyses.ย
โขย Phase II: Learning from client experience, the Consultant may be reengaged to build upon the APEX Green Cities Financing Engine and Toolkit that can be used universally by client cities.
Duties and Accountabilities
Specifically, the Consultant will be responsible for the following deliverables:ย
Task 1: data collection and review current situationย ย
The Consultant will conduct a high-level evaluation of the current situation with regards to how each of the cities are being financed. The work will be to analyze the landscape of the current financing options available for each city (i.e., transfers, debt, own-source revenues, among others). This will help identify challenges and opportunities as well as determine future and on-going plans.ย
IFC will facilitate an engagement with the city government to help the Consultant with data gathering.ย
A high-level assessment of the following will be undertaken by the Consultant:
โขย Institutional, regulatory, and political authorizing environment for the city to leverage different types of finance.
โขย Current municipal funding and revenue sources including, land value capture instruments, own-source revenues, transfers, and direct borrowing (bonds, credit enhancements) and indirect borrowing (PPP, SPVs).
โขย The Cityโs historical track record as a convener, facilitator, and regulator of urban finance. City governmentโs capacity to tap into non-municipal financing sources by nudging private sector companies (developers), financial institutions, public sector agencies (e.g., utilities).
Deliverables for Task 1:ย
โขย Analysis of the information gathered from local and national government to conduct the high-level assessment.
โขย A brief write-up of the cityโs budget and financial context, including its ability to raise capital and available financing options in the local context.
Task 2: green cities financing strategy for cities
The Consultant will provide a Green Cities Financing Strategy for each client city based on the Green Investment Pipeline that will identify potential sources of finance, such as private finance, climate finance, or other business models.ย
Based on the assessment of the local situation of each city and on identifying the Green Investment Pipeline, the Consultant will analyze different financing mechanisms and its suitability to the local context and project or initiative that the city needs to finance. This should include but is not limited to the broad range of measures in the list below:
Municipal funds for green projects
โขย Intergovernmental Grants
โขย Budget Capture (Retained Savings)
โขย Climate Tax and Carbon Pricing
โขย Land Value Capture (LVC)
โขย Revolving Loan Fundsย
Municipal financing options for green projects
โขย Development Municipal Loan and Credit Lines
โขย Results-based Financing and โPay for Successโ Modelย
โขย Green Municipal Bonds
โขย Reserve Fund or Revenue Interceptย
Indirect or non-municipal city finance
โขย Establishing Carbon Marketsย
โขย Energy Service Company Models
โขย Energy Performance Contracts & Efficiency-as-a-service
โขย Product-as-a-service (PAAS) or Asset Leasing
โขย On-bill Recovery Or Property Taxed Linked Financing (e.g., PACE)
โขย Equity Fund for Private Green Firms in a City
โขย Private Public Partnerships for Cities (PPPs)
โขย Incentives to stimulate Private Sector Green Investments
โขย Mobilizing Private Banks to Offer Green Finance
The Consultant will identify non-traditional funding sources and potential role for IFC/IBRD.
The Consultant will determine the suitable financial mechanism(s) for each investment project in the citiesโ plans, indicating any recommendation towards their implementation.ย
The Consultant will provide a recommendation report on an โidealโ approach with a combination of suitable financing options that can fund the Green Investment Pipeline over the next 10 years.ย
The Consultant may be required to join virtual workshops with the cities to present the findings.
Deliverables for Task 2:ย
โขย An analytical model of the financing mechanisms describing model operation, pros, and cons, initial steps, etc.
โขย Green Cities Financing Strategy report for each city to finance the identified Green Investment Pipeline.
โขย Presentation of the strategy to all stakeholders.
Selection Criteria
The ETC Consultant should demonstrate the following experience and skills:
โขย Track record that includes a Master's degree and a minimum of ten (10) years of technical experience and strong regional/global experience in municipal finance for green projects and with strong knowledge of innovative and green/climate financing models private and indirect financing for sub-national entities.
โขย Track record that covers multiple sectors including, built-environments, urban transportation, power supply and demand, water supply and wastewater treatment, and solid waste.
โขย The Consultant must have and demonstrate a strong understanding and experience of the Emerging Market context along with knowledge of global best practices in the subject areas.
โขย Strong communication skills in English
World Bank Group Core Competencies
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