Expression Of Interest Are Invited For South Africa; Assessment Of Regulatory & Legal Framework For A Credit-Guarantee Vehicle. Issue Date And Time: Apr 29,2024 05:41 Closing Date And Time: May 06,2024 23:59 Backgroundthe World Bank Is Supporting The Government Of South Africa (Gosa) In The Mobilization Of Long-Term Private Capital To Support Its Development Goals And Economic Growth. South Africa Currently Is In Need To Increase Infrastructure Investment; Delivery And Services Whilst Facing The Challenges Of Climate Change; Which Is Gradually Affecting The Availability And Reliability Of Infrastructure Services. This Will Require A Combination Of New Investments That Can Support Its Transition To A Net Zero Economy By 2030; Reliable Infrastructure Services That Are Climate Resilient Whilst Ensuring Macro Fiscal Discipline And Ensuring Social And Economic Goals Are Being Met. A Core Part Of That; Is That South Africa Will Have To Change Its Model Of Infrastructure Delivery Which Would Include; A Shift To Attracting Private Sector Sponsors And Financiers; Whilst Implementing Cohesive Reforms And Policies To Create A Sustainable Environment For Various Infrastructure Sectors. Through This Reform Process And Challenging Macro-Conditions; Innovative Solutions Such As Blended Financing Tapping On Development Finance Institutions; Multilaterals And Concessional Financing; Alongside The Design Of Risk Absorbing/De-Risking Instruments Will Underscore The Success Of Private Capital Mobilization (Pcm).Context: South Africa Needs Significant Investment Amounts To Execute The Restructuring And Decarbonization Of The Electricity Sector. Nt Should Focus On Deploying The Initial Amounts Of Concessional Finance In The Form Of Donors Commitments Via Smart Financial Structuring That Could Leverage Additional Concessional Financing And Capital From Private Financial Markets To Face The Huge Investments Challenge[1]. Instruments To Be Offered Under A Blended Finance Approach Would Depend On The Needs Of The Projects To Be Financed In Private Financial Markets. It Is One Of The Few Climate Finance Strategies That Would Mobilize Additional Private Capital Per Unit Of Available Concessional Finance. A Blended Finance Programmatic Approach; To Use And Deploy Concessional Finance Would Consider The Types Of Instruments Utilized In The Infrastructure Finance Space (I.E.; Viability Gap Funding; Partial Credit Guarantees; First Loss And Liquidity Facilities; Political Risk And Credit Risk Insurance And Others). Deployment Of These Different Instruments Will Take Place Via Ear-Marked Interventions. Each Intervention Will Require Its Own Institutional Set-Up In Accordance With The Particularities Of Such Intervention. The Blended Finance Risk Sharing Platform (Bfrsp) Is The Concentration Of Available Public Finance (I.E.; Concessional Finance From Donors And Development Financial Institutions Together With Government Support); To Be Deploy Via Smart Finance Structuring To Optimize Private Capital Mobilization. In The Case Of South Africa; The Objective Is To Finance Its Decarbonization Program. The Bfrsp Would Consider As One Of Its Interventions; The Use Of Concessional Finance To De-Risk Some Of The Residual Risks That Private Financial Markets Will Have A Harder Time Accepting (And Pricing). The Proposed First Intervention Is A Blended Finance Structure (Use Of Concessional Finance); Together With A Risk Sharing Mechanism; Via The Deployment Of Credit Support (Credit Guarantees) To Improve Access To Local And Global Private Financial Markets. Hence; A First Operationalization Of The Bfrsp Programmatic Approach. The Proposed Intervention; A Credit Guarantee Vehicle (Cvg) Is Considered An Important Instrument To Improve Private Capital Mobilization From Financial Markets. These Instruments Could De-Risk Some Of The Residual Risks That Private Financial Market Have A Harder Time Accepting; Improving Access As Well And Terms And Conditions To Local And Global Private Financial Markets. The Cgv Would Be Incorporated Under A Multi-Sector Approach; But Its Initial Focus Would Be In The Support Of South Africa S Decarbonization Strategy And In Particularly In The Electricity Sector.In Case Of The Electricity Sector Of South Africa; It Will Provide Credit Support To Private Investments By Providing Credit Enhancement To Inherent Risks Of The System In TodayS South Africa Electricity Sector (I.E.; Renewable Generation Off-Take Contract Payments; Transmission And Wheeling Arrangements; And Any Other Contractual Payment Obligation That Relies On Soes; Municipalities And Government Agencies Credit Risk; Etc.). Similarly; It Could Provide Credit Support To A Shadow Toll Payment Off-Take In Urban Transport Infrastructure. The Concept Is That The Credit Guarantee And Risk Insurance Will Provide Protection To Commercial Banks And Bond Holders On Any SystemS Risks (Reflected In A Contractual Arrangement) That Impacts The Debt Service Capacity Of The Project. Scope Of Work It Is Envisioned That The World Bank Would Require An Understanding Of South AfricaS Corporate; Financial Institution Framework Particularly Around The Existing Legislation; Registration And Institutional Architecture To Set Up An Entity In South Africa.We Envisage That The Assessment For The Cgv Would Be Segmented Into Two Different Phases: (A) A Due Diligence Regarding The Cgv Concept And Its Regulatory; Legal And Institutional Framework; And (B) The Establishment Of The Cgv In Accordance With South AfricaS Applicable Legislation. The Extend Of The Current Tors Are Limited Exclusively To Phase A. The Following Elements To Consider In The Scope Of Work Will Include: * Review Of South Africa Corporate Laws And Its Relationship With The Establishmhomseiariiern(Prailn Yht Reel Vw Aeane Tvplcnpe N Nrueair Un Hoissfhu Kun Ss>Isrntgisaoni Sdna Sehaart Re Rgrbs Faipacgi Rn E Iilssvsto U Retr Nese Tc * Sao Eaiarn>Str Ronu Aen Orre E Tauto Dcihfcop Ans Etu Tsa Hcitsighcras Siyieistvboelutbt Siec Abda Re Ectn Cslmheu Elftr H) The World Bank Group Reserves The Right To Publicly Disclose Contract Award Information, Including But Not Limited To, Name Of Company Receiving The Award, Brief Description Of Services, And Contract Award Amount, For Any Contract Award Valued Over Us$250,000. Offerors Proposal And Contractual Documents Will Remain Confidential And Therefore Not Subject To Disclosure. The World Bank Group Values Supplier Diversity And Encourages Businesses Owned By Women, Minorities, Lesbian, Gay, Bisexual And Transgender (Lgbt) Individuals, And People With Disabilities To Participate In This Opportunity. Please Indicate In The Response If You Meet One Of These Diverse Categories And Specify The Certification Body You Utilize. Tender Link : Http://Www.Worldbank.Org/En/About/Corporate-Procurement/Business-Opportunities/Administrative-Procurement?Order=Desc
We takes all possible care for accurate & authentic tender information, however Users are requested to refer Original source of Tender Notice / Tender Document published by Tender Issuing Agency before taking any call regarding this tender.
