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

Sovereign Project | 51194-003

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 Details

  • Project Officer
    Leung, Kang Hang
    East Asia Department
    Request for information
  • Country/Economy
    China, People's Republic of
  • Sector
    • Finance

Related Projects

Project Name Green Finance Catalyzing Facility
Project Number 51194-003
Country / Economy China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9398-PRC: Green Finance Catalyzing Facility
Technical Assistance Special Fund US$ 300,000.00
Cooperation Fund for Project Preparation in the Greater Mekong Subregion and in Other Specific Asian Countries US$ 150,000.00
TA 9398-PRC: Green Finance Catalyzing Facility (Supplementary)
Financial Sector Development Partnership Special Fund US$ 225,000.00
TA 9398-PRC: Green Finance Catalyzing Facility (Supplementary)
Technical Assistance Special Fund US$ 188,000.00
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 25 Feb 2021
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 17 Jun 2022 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.