ABOUT THE COMPANY:

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries.

Description

IFC — a member of the World Bank Group — 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.

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 cities’ 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 IFC’s 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 cities’ 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).  

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.

•  Phase I: Supporting client cities to develop a Green Financing Strategy as part of the Climate Investment Opportunities Diagnostic analyses.
•  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: 

Task 1: data collection and review current situation  

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.
IFC will facilitate an engagement with the city government to help the Consultant with data gathering.

A high-level assessment of the following will be undertaken by the Consultant:
•  Institutional, regulatory, and political authorizing environment for the city to leverage different types of finance.
•  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).
•  The City’s historical track record as a convener, facilitator, and regulator of urban finance.

City government’s 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:
•  Analysis of the information gathered from local and national government to conduct the high-level assessment.
•  A brief write-up of the city’s 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.
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
•  Intergovernmental Grants
•  Budget Capture (Retained Savings)
•  Climate Tax and Carbon Pricing
•  Land Value Capture (LVC)
•  Revolving Loan Funds 

Municipal financing options for green projects
•  Development Municipal Loan and Credit Lines
•  Results-based Financing and “Pay for Success” Model
•  Green Municipal Bonds
•  Reserve Fund or Revenue Intercept 

Indirect or non-municipal city finance
•  Establishing Carbon Markets
•  Energy Service Company Models
•  Energy Performance Contracts & Efficiency-as-a-service
•  Product-as-a-service (PAAS) or Asset Leasing
•  On-bill Recovery Or Property Taxed Linked Financing (e.g., PACE)
•  Equity Fund for Private Green Firms in a City
•  Private Public Partnerships for Cities (PPPs)
•  Incentives to stimulate Private Sector Green Investments
•  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 cities’ plans, indicating any recommendation towards their implementation.
The Consultant will provide a recommendation report on an ‘ideal’ approach with a combination of suitable financing options that can fund the Green Investment Pipeline over the next 10 years.
The Consultant may be required to join virtual workshops with the cities to present the findings.

Deliverables for Task 2:
•  An analytical model of the financing mechanisms describing model operation, pros, and cons, initial steps, etc.
•  Green Cities Financing Strategy report for each city to finance the identified Green Investment Pipeline.
•  Presentation of the strategy to all stakeholders.

Selection Criteria

The ETC Consultant should demonstrate the following experience and skills:

•  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.
•  Track record that covers multiple sectors including, built-environments, urban transportation, power supply and demand, water supply and wastewater treatment, and solid waste.
•  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.
•  Strong communication skills in English

World Bank Group Core Competencies

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