📋 Tender Overview
Project ID: P170839
The Fund will focus on potential investment opportunities in six regionswhere strong demand for greenequity has been identified, namelyBeijing-Tianjin-Hebei region, Northeast China, the Yangtze River Economic Belt, the Yellow River Basin, the coastal city cluster of Guangdong, Fujian and Zhejiang, and the Beibu Gulf city cluster.It will target commercial enterprises and projectsin the following green thematic areas: i)environmental protection; ii) cleaner industrial production; iii) energy efficiency improvement; and iv) clean energy industry. The Fundwill be managed by a competitively selected professional Fund Management Company (FMC) and will invest on a commercial basis while generating positive climate and environmental outcomes. COMPONENT 2: INSTITUTIONAL STRENGTHENING AND PROJECT IMPLEMENTATION (US$2 MILLION, Counterpart Funds)10.This component willbe financed by the CCDMF, covering institutional strengthening for the SPV. It will provide the SPVwith the capabilities to oversee project implementation, perform fiduciary functions, ensurecompliance with environmental and social safeguards, as well as monitor and evaluateproject outcomes. In addition, given the emphasis of the Fund on applying best practice green investment criteria, this component will focus on building the SPV’s capacityto oversee the implementation by the FMC of sound green finance practices from project screening through reporting and evaluation.There will be emphasis on the development of robust methodologies to measure positive environmental outcomes of investments (impact reporting), external verification of results, establishment of the organizational capacity for implementing the Environmental and Social Management System (ESMS)and meeting commitments under the Environmental and Social Commitment Plan (ESCP), plus the development of a program to disseminate lessons of experience to other green funds across China, thereby helping to raise standards in green investments in the country.
COMPONENT 1: GREENAND LOW-CARBONINVESTMENT FUND (US$198 MILLION, IBRD)8.This component will provide initial capitalization for the Fundand will be the basis for catalyzing additional capitalfrom domestic and foreign institutional investors.The China Clean Development Mechanism Fund (CCDMF) has been identified as the Executing Agency for this project. The proceeds of the IBRD loan will be onlent by the Ministry of Finance to a Special Purpose Vehicle (SPV) to be created by the CCDMF. The SPV will be the Implementation Agency for the project, responsible for establishing the Fund, using the IBRD loan as initial capitalization. The hybrid funding structure of the Fundwill facilitate the use of public money to leverage capital from private sector Limited Partners(LPs), especially domestic andforeign institutional investors (e.g. pension funds, life insurance companies, private equity funds and Foundations
