The Shandong Green Development Fund (SGDF) pilots a transformational and disruptive financing mechanism to catalyze climate finance for a portfolio of climate resilient projects to support the proactive policies to decarbonize the economy of Shandong. The proposed Project creates a $1.5 billion SGDF with a mix of public and private sector capital, including catalytic resources of over $300 million from IFIs
| Project Name | Green Finance Catalyzing Facility | ||||||||||||||
| Project Number | 51194-003 | ||||||||||||||
| Country | China, People's Republic of |
||||||||||||||
| Project Status | Closed | ||||||||||||||
| Project Type / Modality of Assistance | Technical Assistance |
||||||||||||||
| Source of Funding / Amount |
|
||||||||||||||
| Strategic Agendas | Inclusive economic growth |
||||||||||||||
| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
||||||||||||||
| Sector / Subsector | Finance / Infrastructure finance and investment funds |
||||||||||||||
| Gender Equity and Mainstreaming | Some gender elements | ||||||||||||||
| Description | The Shandong Green Development Fund (SGDF) pilots a transformational and disruptive financing mechanism to catalyze climate finance for a portfolio of climate resilient projects to support the proactive policies to decarbonize the economy of Shandong. The proposed Project creates a $1.5 billion SGDF with a mix of public and private sector capital, including catalytic resources of over $300 million from IFIs | ||||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | 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. |
||||||||||||||
| Impact | |||||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | The TA financed two outputs: (i) set-up of the Green Finance Catalyzing Facility (the Facility) by providing resources to finalize the structure of the Facility, the implementation and mixed financing agreement; and (ii) capacity development of the central and local governments to identify, screen, appraise the green projects and to prepare green investment plans from the master plans. |
| Business Opportunities | |
|---|---|
| Consulting Services | 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. |
| Responsible ADB Officer | Leung, Kang Hang |
| Responsible ADB Department | East Asia Department |
| Responsible ADB Division | Public Mgt, Financial Sector and Regional Coop Division, EARD |
| Executing Agencies |
Ministry of Finance Sanlihe, Xicheng District Beijing,100820 People's Republic of China |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | - |
| Approval | 03 Oct 2017 |
| Last Review Mission | - |
| Last PDS Update | 29 Sep 2020 |
TA 9398-PRC
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 03 Oct 2017 | 05 Jan 2018 | 05 Jan 2018 | 30 Jun 2018 | 30 Dec 2020 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 713,000.00 | 150,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 863,000.00 | 03 Oct 2017 | 846,518.89 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
None currently available.
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
| Title | Document Type | Document Date |
|---|---|---|
| Catalyzing Climate Finance with the Shandong Green Development Fund | Papers and Briefs | Jul 2020 |
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| PPMS - Project Portfolio Management Consultant | Individual - Consulting | Closed | 03 Jul 2018 | 09 Jul 2018 |
| PPMS - Systems Architect | Individual - Consulting | Closed | 03 Jul 2018 | 09 Jul 2018 |
| PPMS - Systems Developer | Individual - Consulting | Closed | 03 Jul 2018 | 09 Jul 2018 |
| International Green Mechanism Consultant | Individual - Consulting | Closed | 26 Jan 2018 | 01 Feb 2018 |
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
None currently available.