📋 Tender Overview
Source of Funding / Amount: Loan 8385-prc: shandong green development fund project (additional financing)
Ordinary capital resources: US$ 100.00 million
The shandong green development fund project (sgdf) will pilot an innovative leveraging mechanism to catalyze private, institutional and commercial (pic) capital for the development of climate positive infrastructure and business in shandong province, peoples republic of china (prc). The project will support a portfolio of mitigation and adaptation subprojects assessed against both climate and financial eligibility criteria. The project will contribute to the provinces transition to low-carbon and climate-resilient development patterns: shandong faces mounting climate change (cc) and environmental protection challenges. The province tops the countrys energy consumption and the number of motor vehicles, responsible for most of the greenhouse gas emissions (ghg). The project aims to leverage private, institutional and commercial (pic) finance for climate resilient subprojects assessed against both climate and financial eligibility criteria. The project consists of a mix of public and private sector capital of $1. 2 billion and catalytic resources of $300 million from international financing institutions (ifi), which is required to reach sufficient critical mass of funding to achieve a significant leverage ratio over 5. The project finances a portion of the total capital expenditures of selected climate resilient subprojects for a capped period to make the subprojects bankable, by addressing the upfront project risks, as well as promoting advanced technologies and an integrated approach for climate change. The level of catalytic fund and the financing terms are linked to the climate criteria and performance in line with the green climate fund (gcf) investment criteria and framework.
Policy framework (national): under the 13th five year plan, prc actively promotes a paradigm shift from gross domestic product (gdp)-oriented development to a development model centered on quality of growth. The intended nationally determined contribution (indc) details the prcs commitment to climate change actions by 2030, notably to: (i) achieve the peaking of carbon dioxide emissions around 2030; and (ii) increase the share of non-fossil fuels in primary energy consumption to around 20%. Context (regional): shandong ranks the 8th in terms of provincial gdp per capita and the gdp of jinan ranks 21 out of 34 prc provincial capital cities. Shandong is a labor reservoir for migrants, partially a result of extensive industrial investment. However, the province is facing multiple climate vulnerability challenges and investment is now targeted for industrial transformation and low carbon development that supports climate change (cc) adaptation and mitigation policies. Because of its history of rapid industrial development, the province tops greenhouse gases (ghg) emissions and was selected to pilot for this project. Sh
