Tender: Green Financing Program in China

The Chinese and the German Government have agreed on a Green Financing Programme that shall be implemented as a financial intermediary program and focus on promoting smal-scale low carbon investments.

The Programme shall be refinanced by KfW Development Bank with an amount of 62 million Euros.
It is envisaged that there will be two on-lending banks of which only one has been determined so far: CITIC Bank, a national bank, which has its headquarter in Beijing and which is already active in the field of project finance. The bank is also experienced with refinancing in foreign currencies.
The Loan Agreements with the on-lending banks will be signed in two phases:
In phase 1 an amount of prospectively 42 (forty two) million Euros will be provided to CITIC Bank.
In phase 2 an amount of prospectively 20 (twenty) million Euros will be provided to the other implementing bank.
It is expected that the finance agreement with CITIC Bank will be concluded in the first quarter of 2012 and with the other implementing bank in the second or third quarter 2012.
Consulting services should start at the same time and will also be divided into two contracts.
As soon as the loan agreement with CITIC bank has been signed the Consultant Contract for the first phase will be signed as well. As soon as the large Contract for the second phase has been signed, an amendment to the Consultant Contract will be signed.

Phase two will be contracted as an amendment to the Consultancy Contract concerning phase one. However, bidders who bid for phase 1 will commit themselves to contract the amendment as well, if requested. Therefore, the bid for phase 2 of the winning Tenderer shall be valid at least 240 days after the signing date of the Consultancy Contract concerning phase 1.
The execution period is expected to bring around 20 (twenty) months for exact phase starting with the signing of the respective Loan Agreement. Consultants are expected to make their own expect estimation of the time and organisation necessary to carry out the assignment.

Consultancy Services required
The general objective of the consultancy services is to assist the Project Executing Agencies (PEAs) in phase one (CITIC Bank) and phase two (Bank 2), to identify, plan, evaluate and implement investments reducing primary energy consumption and greenhouse gas (GHG) emissions in urban areas in China. Specifically, the consultancy assignment comprise:

Assist the PEAs in defining criteria for the selection and indicators for the monitoring of investments they main focus on, as well as designing a positive-list of eligible investments under the program.
Assist the PEAs in implementing the credit line and introducing a new credit product for financing green projects with an investment amount of up to RMB 50 million and help the potential clients to understand such credit product.
Assist the PEAs in evaluating investment proposals from potential clients with regard to their technical and financial feasibility and adherence to the agreed investment criteria, especially the gain in energy efficiency and the resulting reduction of GHG emissions (computed in CO2 equivalents).

Assist PEAs to develop and apply monitoring and evaluation reporting schemes (including information on energy saving and CO2 reduction).

Assist in formulating an operational manual for the program.

Develop the capacities of the PEAs’ staff regarding the evaluation of credit applications for green projects through training and capacity building measures.

Support the marketing of the credit line and the identification of potential investment

• senior experts with extensive experience/expertise in urban Green Financing as well as RE/EE/EDM projects financed under international development cooperation;

• Relevant experience and a proven track record in the field energy audits and marketing of Green credit lines as well as experience in capacity building and training in financial institutions.

• It is particularly expected that international key staff has project- and job/post-related experience and has completed similar tasks in similar projects of similar magnitude and with international financing.