81297952a-Consulting on capacity building of banks and municipalities for financing sustainable urban infrastructure projects

The contractor is expected to implement the following work packages (WP): 1) Strengthening cities" competencies The WP aims to strengthen capacities of cities in Ecuador to implement sustainable development infrastructure projects. This includes identifying sectors and potential projects, carrying out capacity development activities, and creating or strengthening municipal structures with the capacity to implement projects. The opening step in implementing TA (Technical Assistance) is to identify projects eligible for technical assistance. The work focuses on identifying climate change projects in several cities of Ecuador and assessing their bankability. In order to make urban infrastructure projects bankable, it is necessary to understand the specific technical gaps between current state of the projects (including project documentation) and climate change lending requirements of financial institutions. An appropriate project implementation infrastructure in a municipality with adequate mandate, financing, staffing, management and monitoring frameworks are prerequisites for effective project development. The service will provide support the creation or strengthening of a PIU in each municipality. 2) Development of the portfolio of "Climate friendly projects" The goal of the WP is to gain clarity on the selected projects in terms of maturity, technical quality, etc. and transform them into bankable projects. In order to make urban projects bankable, it is necessary to understand the specific technical gaps between the current state of the projects (including project documentation) and financial institutions climate change requirements for lending. In addition, it is necessary to provide support and guidance in order to maximize positive climate, environmental- and social impacts of the project as well as climate action eligibility according to IFI criteria, as well as reliable data and documentation to support this claim. This will be achieved through optimal ownership and if necessary, tariff models to ensure financial and economic feasibility, as well as optimal preparation of procurement processes in line with international standards. 3) Technical assistance to financial institutions The WP focuses on getting a clear picture of the situation of the financial sector in the country (at a local, regional and international level) in terms of climate change and urban development funding and technical assistance needed to support local banks to become green (this is to use financial resources to fund projects with positive impact towards climate change and sustainable development). In addition, the work will raise awareness among the banks on requirements and capacity development needed within the banks to provide finance to climate change projects and to access to financial sources for this purpose. TA will be provided to BDE to create 2 financial instruments for environment friendly urban infrastructure. Using the GAP analysis as input, support will be provided to establish two financial instruments for specific priority sectors identified by the BDE in coordination with GIZ. The experiences generated will be shared with the other banks so that they can define and establish a roadmap for setting up their own financial instruments in the future. 4) Capacity Development for Support entities The purpose is to build up capacities in Ecuadorian institutions supporting them to develop climate change projects with focus on sustainable infrastructure in urban areas and knowledge sharing tools that could feed the WP2 of knowledge management. To ensure that municipalities have support for the identification and development of climate change projects and banks can have access to assistance for the assessment of projects or review of credit lines it is necessary to create or strengthen capacities of local institutions that could assume the role to provide technical support and capacity building on climate change and sustainable development. To achieve the desired results, the service provider will work closely with GIZ and three institutions: the National Development Bank BDE, civil society institutions and universities.