NICARAGUA: DEBT FOR CLIMATE SWAP TERM SHEET FOR THE GOVERNMENT OF NICARAGUA
INTRODUCTION TO GGGI
The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.
GENERAL INFORMATION
- Project : NI01-E1 (100%)
- Duty Station: Managua, Nicaragua, with a flexible arrangement (working from home + attending in person to the office when required)
- Contract Duration: 5 months (May โ October 2024)
- Number of Workdays Estimated (internal purpose only): 110
- Consultant Level: Level 4
- Total Fees: up to USD 25,000
PROJECT BACKGROUND
Nicaragua's National Determined Contribution (NDC) was originally submitted to the United Nations Framework Convention on Climate Change (UNFCCC) in 2018 and updated in 2020. The development of the country's NDC followed a highly participatory and consultative process with vulnerable groups, including native, Afro-descendant, and indigenous communities, women and youth. The resulting NDC is a very ambitious plan that includes climate change mitigation and adaptation measures.
The Green Climate Fund (GCF) is the financial mechanism created within the framework of this Convention (UNFCCC) and seeks to support countries in complying with their National Contributions (NDC) and in this way, contribute to the final objective of keeping the increase in global average temperature below 2ยฐC above pre-industrial levels, recognizing that this would significantly reduce the risks and effects of climate change.
The Global Green Growth Institute (GGGI), in collaboration with the Secretariat of Climate Change, the Ministry of the Environment and Natural Resources and the Ministry of Finance and Public Credit, is implementing a 24-month technical assistance program for the Government of Nicaragua entitled \"Mobilization of climate finance and private investments for low carbon development in Nicaragua\". The program, funded by the Green Climate Fund (GCF) Preparatory and Readiness Support Program, aims to improve the institutional capacity, strategic frameworks, and project portfolio of the Government of Nicaragua to increase the mobilization of national and international climate finance and private investments for the implementation of national determined contribution (NDC) and low-carbon development.
OBJECTIVES OF THE ASSIGNMENT
The consultant will be responsible for the development of a term sheet for climate change debt swap transaction that serves as a technical and legal reference to support the government of Nicaragua in these types of transactions. The term sheet lays the groundwork for ensuring that the parties involved in a debt-for-climate swap agree on most major aspects. The term sheet reduces the likelihood of a misunderstanding or unnecessary dispute. Additionally, the term sheet ensures that expensive legal charges involved in drawing up a binding agreement or contract are not incurred prematurely. Additionally other relevant aspects must be considered.
This consultancy will have the following specific objectives:
- Analyze the national and international legal framework applicable to the Nicaraguan context to conduct debt-for-climate swap transactions with public and private creditors. As a result of this analysis, provide recommendations and conclusions.
- Develop a transaction term sheet model specifically to be used by the government of Nicaragua. This model transaction term sheet must be developed in accordance with international technical and legal principles, linked to current national legislation.
- Validate the transaction terms sheet for debt-for-climate swap with the competent authorities of Nicaragua for approval and adoption.
DELIVERABLES AND PAYMENT SCHEDULE
Under the direct supervision of the Project Manager and in coordination with GGGIโs Nicaragua team, the Consultant will present the following deliverables:
- Initial report of activities containing the Work Plan and methodology, with its corresponding schedule of activities ten days after the consulting contract is signed.
- Report of assessment of national and international legal framework applicable to the Nicaraguan context to conduct debt-for-climate swap transactions with public and private creditors. As a result of this analysis, provide recommendations and conclusions of this assessment.
- Transaction term sheet model document to be used by the government of Nicaragua. This model transaction term sheet must be conducted in accordance with international technical and legal principles (Parties Involved, Debt Description, Discount, Climate/Conservation Investments, Conditionality, Monitoring and Reporting, Legal Jurisdiction, among others), linked to current national legislation.
- Final report including the term of transactions sheet specifically for the use of the government of Nicaragua presented to the competent authorities of the Nicaraguan government. The deliverable shall include at least 3 rounds of updates of the transaction sheet to integrate comments from the competent authorities.
PAYMENT AND DELIVERY SCHEDCHUELD
Payment
Deliverables
Target Completion
Amount (% over total fee)
1
Work Plan and Methodology
13 May
10%
2
Report of assessment of national and international legal framework applicable to the Nicaraguan context to conduct debt-for-climate swap transactions with public and private creditors. As a result of this analysis, provide recommendations and conclusions.
13 Jun
30%
3
Document of a transaction term sheet model specifically to be used by the government of Nicaragua. This model transaction term sheet must be conducted in accordance with international technical and legal principles, linked to current national laws.
13 Jul
20%
4
Report including the term of transactions sheet specifically for use of the government of Nicaragua validated and approved for competent authorities of Nicaraguan government.
13 Aug
20%
5
Reviewed and approved final report with integrated final products.
13 Sept
20%
The deliverables will be considered approved, and payable, upon approval by GGGIโs Project Manager and Nicaraguaโs GCF Nationally Designated Authority.
**Reporting Arrangements
The Consultant will be supervised by Nicaraguaโs GGGI Project Manager who will be assisted by GGGIโs technical staff. The consultant's work progress will be monitored primarily through periodic review meetings. These review meetings will tackle subjects such as the overview of the contractual objectives, the development of activities, detailed information milestones, actual achievements made against the timeline initially set, and any other relevant progress details.
Deliverable 1 โ 5 must be written in English and Spanish, in accordance with GGGI's formatting requirements, and submitted with proof of editable file back-up (e.g., .docx, .pptx) in the GGGI SharePoint system. Where relevant, the Consultant shall also provide sets of raw data, research materials, and meeting notes related to the contractual objectives.
The product referred as to Final Report (Deliverable 5) is a document that will summarize the main deliverables of the assignment, the activities carried out, conclusions, and recommendations about the consultancy, and must be submitted in English and Spanish (maximum 30 pages).
The Global Green Growth Institute (โGGGIโ) is committed to transparency, accountability, and openness in the organization. In case of any doubt, please refer to our Whistleblower policy in the link:
http://gggi.org/site/assets/uploads/2017/11/Whistleblower-Policy_02072015.pdf
The consultant should demonstrate the credentials described below.
EXPERTISE REQUIRED
Required:
- Must be a Nicaraguan citizen or foreigner who can reside and work with a valid permit in Nicaragua.
- Advanced degree in law, specializing in international financial law or law graduate with master's degree in financial laws or similar, economics, banking and finance, specialization studies in sustainability applied to business, companies, banks, national financial institutions, development banking.
- Product knowledge or regulatory experience within the OTC (Over-the-Counter) derivatives and swap dealer businesses.
- Relevant and demonstrable general work experience of 8 years, in the financial sector or development banking, desirable experience in contract design, corporate agreements of national or international scope in the public and private financial sector, financial innovation projects, climate financing, among other experiences.
- Experience in public financial institutions, multilateral banks, fiscal policy management, public spending, capital markets, design of innovative financial products, climate finance, financial models, and investment prospecting.
- Preferably, at least two years of consulting experience in international financial organizations, multilateral banking.
- Desirable experience in climate change and sustainable development issues, structuring or advising on debt-for-climate swap arrangements, including negotiation with creditors and stakeholders.
- Language required, Spanish and English, excellent writing skills and clear transmission of ideas. Child protection โ GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGIโs Child Protection Policy is written in accordance with the Convention on the Rights of the Child.