News Column

Provision of Infrastructure Finance Expert

August 19, 2014

Expression of interest for Provision of Infrastructure Finance Expert 2. Objective and Purpose of the Assignment The objective of the proposed facility will be to provide guarantees to infrastructure project special purpose vehicles (SPVs) set up through the public-private partnership (PPP) modality, for risks at the pre-completion stage which are outside the control of the SPVs. Risks would typically include with respect to delays in land acquisition, environment and forest clearances, state government clearances, aggregation risk (delays due to non-availability of raw materials), law and order etc. These delays typically arise on account of breaches in the concession agreement by the public sector authorities. In the event of delays on account of the above and consequent risks to project cash flows, the proposed PCRGFI would pay off the lenders that are exposed to the project. The PCRGFI would charge a guarantee fee. Scope of Work The Asian Development Bank (ADB) is seeking to recruit two (2) staff consultants for three (3) person months each to undertake a technical study to help establish a Project Completion Risk Guarantee Facility for India (PCRGFI). Detailed Tasks and/or Expected Output The consultant will be required to undertake the following tasks. 1. Market assessment - Establish the relevance of Project Completion Risk Guarantee Facility (PCRGF) Provide guidance on the key issues/risks facing infrastructure projects in India during pre-completion/construction phase o Broadly map out the risks and probability of occurrence. Typically look at Risks outside the control of the SPV / Concessionaire - Engage with stakeholders (Government bodies/department. Regulators, Implementing agencies, Banks/Lenders) to understand their perspectives on this mechanism and inputs towards structuring the same Assist in identifying and analyzing other similar facilities and any prevailing risk guarantee instruments- for instance IIGF in Indonesia, and similar facilities in Brazil, Chile, and Mexico. Assist in building up a high-level market opportunity case for PCRGF 2. Develop broad structure for the proposed PCRGF * Provide guidance on the broad framework required to make the proposed facility self-sustaining, in terms of o Eligible sectors; o Risks to be covered; o Quantum of guarantee; o Duration of guarantee; o Coverage of guarantee in terms of interest only, principal only, principal and interest etc. * Provide guidance on triggers under which the guarantee can be invoked; * Provide broad principles for pricing the guarantee mechanism; *Develop a financial model for the proposed PCRFG based on an initial capital corpus of INR 2,000 Crores; *Provide guidance on legal agreements that would need to be developed or modified to invoke the guarantee At die end of the consultancy a stakeholder workshop would be held with all stakeholders to discuss the f

Major organization : ASIAN DEVELOPMENT BANK (ADB)

Address : 4 San Martin Marg, Chanakyapuri, New Delhi 110021,

Country :India

Email :

Tender notice number : SAPF-2

Notice type : Prequalification

Open date : 2014-08-25

Project name : TA-7997 REG: Strengthening Knowledge-Driven Development in South Asia - SAPF-2 PCRGF-2 (45282-001)

Tender documents : T23484353.pdf

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Source: TendersInfo (India)

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