China, People's Republic of: Green Finance Catalyzing Facility

Finance / Infrastructure finance and investment funds

The Climate Change (CC) projects' pipeline spans several sub-sectors and focuses on maximizing investment in CC mitigation (75%), resulting in an estimate of 20 million tons CO2 over the lifespan of the projects and adaptation (25%) with 10 million beneficiaries (about 10% of Shandong Province).

The Project provides the following for eligible projects:

" Funding 10 to 50% (may vary per sector and project risk profile) of capital expenditure (CAPEX) upfront for 5 to 10 years of selected climate resilient subprojects for a capped period to make the projects bankable, by addressing the upfront subproject risks, such as approval, land acquisition and resettlement, as well as promoting advanced technologies and an integrated approach to CC;

" Refinancing catalytic funding from year 5, with an exit strategy to replace with PIC finance at commercial rates through take-out financing or issuance of asset-backed securities; and,

" Accessing TA program, financed by ADB loan and recovered from the subproject sponsors through upfront fees to the FMC, for design-review-advice of climate resilient project preparation; climate / green ratings; and monitoring, evaluation and verification.

All the investments to be made by SGDF will be linked to the climate criteria and performance in line with the GCF investment criteria and framework.

The Asian Development Bank will engage a total of 33 person-months of individual consultants in accordance with ADB Procurement Policy (2017, as amended from time to time) and the associated project administration instruction and TA staff instructions.

The TA may be extended in 2020 to assist with capacity development and fast track kick off.