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Colombia: Forest Finance Consultant to Support the Forest Economy

Colombia (Colombia)

  • Organization: GGGI - Global Green Growth Institute
  • Location: Colombia (Colombia)
  • Grade: Consultant - Contractors Agreement - Consultancy
  • Occupational Groups:
    • Agriculture and Forestry
    • Banking and Finance
    • Economics
  • Closing Date: 2020-08-14

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Colombia: Forest Finance Consultant to Support the Forest Economy

 

Based in Seoul, The Global Green Growth Institute (GGGI) is an intergovernmental organization founded to support and promote a model of economic growth known as "green growth", which targets key aspects of economic performance such a poverty reduction, job creation, social inclusion, and environmental sustainability. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies that can impact the lives of millions. The organization partners with countries, multilateral institutions, government bodies, and private sector to help build economies that grow strongly and are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change.

 

GGGI has a diverse portfolio of programs in developing countries around the world. These in-country programs, together with global products and services, focus on delivering results through an integrated approach of evidence-based green growth planning and implementation aligned to countries’ development priorities. The organization also focuses on knowledge development and management activities which build a strong theoretical and empirical basis for green growth, while providing concrete options and guidance for policymakers; as well as building the conditions for public and private green infrastructure investments.

 

Colombia Program Background

GGGI has been working with the Government of Colombia (GoC) to advance green growth policies and green investments, through strategic partnerships such as with the Ministry of Environment and Sustainable Development, the Ministry of Agriculture and Rural Development, Ministry of Finance and Public Credit and the National Planning Department, among others. In a new phase of collaboration with Government agencies at the national and sub-national level, GGGI with the support of the Kingdom of Norway will expand its Colombia Country Program by virtue the transition towards a greener growth pathway that is socially inclusive and contributive to Colombia´s medium term development agenda. Five years of support (2017-2022) will expect to see an impact of an increased capacity to mainstream green growth objectives into development planning and investments within the priority sectors and regions that are critical for Colombia´s future green growth, particularly in those areas that are highly susceptible to increased natural resource degradation and forest cover loss.

 

The program was divided in two phases: Phase I taking place from 2017 to 2019, and Phase II for 2020-2022. Phase II was designed to increase green growth investments in priority regions and sectors, in addition to supporting the GoC for reducing their current deforestation trends. The program outcomes are aligned with the GoC´s nationally determined contributions (NDC) targets and sustainable development goals (SDGs), GGGI’s Strategic Plan 2015 – 2020 and GGGI Colombia Country Planning Framework (CPF) 2016-2020, as well as the Norway’s International Climate and Forest Initiative (NICFI) strategic objectives.

 

There are various underlying principles which underpin the fundamentals of Phase II of the program. The main principle being that GGGI will continue to build upon existing efforts to promote green growth, such as the implementation of the Green Growth Policy (with an emphasis on the forest economy) along with other relevant and aligned National Development Plan (NDP) 2018-2022 goals, such as lowering the deforestation rate and increasing areas under sustainable conservation systems. Secondly, there is an increased focus on delivering results at the subnational level, to increase deforestation reduction results in the selected jurisdictions and to augment the number of hectares and investments under a sustainable and restorative production systems approach.

 

In the current NDP, the government aims to raise the total GDP of the forest economy from its 2018 estimated contribution 0.69% to 1% by 2022. Within this context, GGGI Colombia is supporting the GoC to foster Colombia´s forest economy both, at the national and subnational level. The support will facilitate the incorporation of forestry and forest-related activities into Colombia´s main land uses, as well promoting investment into the sector and increasing forest stands in the country.

 

The joint work between GGGI and Finagro has found, however, that  that the financing opportunities of commercial forest plantations and sustainable management of natural forests are limited due to the perception of risk towards these activities, owing to not only the long investment return periods, complex logistics, security, but also due to  a gap in the understanding of how the forest sector works. 

 

Based on the above, a forest finance consultant is needed to support in the review of existing financial instruments of first-tier banks and to bridge the gaps in the understanding of the forestry sector, which will in turn open up financing opportunities to the sector.

 

Objectives/Purpose of the Assignment

The main objective of this assignment is to support Finagro and GGGI in consolidating and promoting the forest economy. Specifically, consultancy support shall be given through the assessment of the current forest financial products offered by Finagro and first-tier banks, strengthen the understanding of the sector by first-tier banks and provide recommendations to adjust current or develop new financial products.

 

Scope of Work

The technical assessment and recommendations will be carried out by developing the following components:  

Component 1: An Assessment of Financial Products to the Forest Economy in Colombia

The main output for this component will be an assessment of the current financial products directed at the forest economy by the first-tier banks, how they are offering those products to their clients, and how they are using the funding from second-tier banks to support them. The assessment must include the identification of the main barriers to accessing these financial products as well as the potential ways to overcome them.

 

Component 2: An Assessment of the Current Collateral Options

This component requires a needs-assessment of the current collateral instruments on offer to the forestry sector complete with an argumentation of why they are needed, as well as recommendations to adjust the current or develop new options. The options given for collateral instruments must be specific to those related to plantations and natural forest.

 

Component 3: An Analysis of the Funding Options for the Financial Products to the Forest Economy.

An analysis that identifies the current funding options available of financial products to the forest economy as well as recommendations to adjust or develop new methods of funding.

 

Component 4: Awareness Raising of Pricing Structures of the Forestry Sector and the Minimum Profitable Unit of Forest Economic Activities

The fourth component is to facilitate the awareness of Finagro and first-tier banks to the pricing structures of the forest sector and the minimum profitable unit of the sustainable management of natural forests and commercial forest plantations. This component aims to support the need of changing the perception of investment risk linked to forest economy activities. The pricing structures and the minimum profitable unit of the different forest-related economic activities will be provided by GGGI to the consultant, with the expectation that the consultant provide their review and recommendations to improve upon them.

 

 

Deliverables

1. A detailed Workplan agreed upon with Finagro.

2. An Assessment of Financial Products to the Forest Economy in Colombia: This must include the detailed description of the first-tier banks´ financial instruments for the sector and how these match to Finagro´s products. Adjustments recommendations or new products proposals are required with an emphasis on how Finagro could lead in the development of these adjustments and/or products.

3. An Assessment of the Current Collateral Options: This analysis must include the National Agrarian Guarantee Fund (or Fondo Agropecuario de Garantías known in Spanish), the forestry projection (vuelo forestal as it is known in Spanish), collateral that is linked to properties, plantation management under loan defaults, among others. Recommendations to adjust or develop new collateral options are required to complete this component.

 4. An Analysis of the Funding Options for the Financial Products to the Forest Economy: A review of the sources of funding that align the financial products to the financial conditions of a forestry project. This includes assessing those options given by Finagro, Ministry of Agriculture and Rural Development, among others.  Recommendations on the funding adjustments or on the use of different financial mechanisms to fund the proposed instruments are required to complete this component.

5. Awareness Raising of Pricing Structures of the Forestry Sector and the Minimum Profitable Unit of Forest Economic Activities: Facilitate the awareness of Finagro and first-tier banks to the pricing structures of the forest sector and the minimum profitable unit of different forest economy activities. This must include workshops, bilateral meetings, among others. A roadmap that details the actions to pursue for Finagro and first-tier banks to promote financial products aimed at the forest economy must be provided. Lastly, the consultant must provide a final Summary of the consultancy in a brief report (~2-4 pages) and an accompanying PowerPoint (~5 slides) giving an insight into the products and details of the consultancy.

 

Deliverables, timelines and payments

 

Payment

Outputs

Deliverables

Deliverables description

Target Completion

Amount (% over total fee)

Payment No. 1

(1) Workplan

Detailed workplan.

Detailed work plan with activities´ dates and methodology.

 

September 9, 2020

 

(15%)

Payment No. 2

(2) Assessment of Financial Products to the Forest Economy in Colombia

Complete diagnosis and assessment detailing the financial products offered by first-tier banks and how they use Finagro´s financial products.

Complete economic assessment and recommendations given of the financial products directed at the forest economy offered by the financial sector and how Finagro could promote their development.

 

 

November 30, 2020

 

 

(20%)

Payment No. 3

(3) Assessment of the Current Collateral Options

Complete assessment of collateral options with recommendations to adjust/ propose new options for forest economy activities

Complete assessment of collateral options with recommendations to adjust/ propose new options for forest economy activities, including National Agrarian Guarantee Fund, forest projections, management and properties, among others.

 

 

January 27, 2021

 

 

(20%)

Payment No. 4

(4) An Analysis of the Funding Options for the Financial Products to the Forest Economy

Complete assessment of the funding options with recommendations to adjust/propose new funding options for financial products.

Complete assessment of the funding options with recommendations to adjust/propose new funding options for financial products. This includes assessing those options given by Finagro, Ministry of Agriculture and Rural Development, among others.

 

 

 

April 7, 2021

 

 

 

(20%)

Payment No. 5

(5) Awareness Raising of Pricing Structures of the Forestry Sector and the Minimum Profitable Unit of Forest Economic Activities and Consultancy Summary

1). Complete report on the awareness raising process with Finagro and first-tier banks.

2) Complete report and accompanying PowerPoint (max 5 slides) summarizing the details/products of the consultancy.

Complete report on awareness raising process with Finagro and first-tier banks which details which banks and with whom of their personnel was the awareness raising achieved. This also includes a roadmap to promote financial products aimed at the forest economy.

 

 

 

June 9, 2021

 

  

 

(25%)

 

 

Reporting and Coordination Arrangements

The consultant´s work progress will be monitored and coordinated primarily through meetings pertaining to the periodic review and planning. The precise schedule will be determined based on the Project Leader´s requirements. These review meetings will address subjects such as the overview of the project, the development of project activities, detailed information on project objectives and milestones, actual achievements made against the initially proposed timeline as well as any other relevant details related to progress. The assessments will be developed under the guidance of GGGI staff and the Forestry Director of Finagro.

All reports or outputs must be written in Spanish, in accordance with GGGI’s formatting requirements, and submitted in soft copy along with complete sets of raw data, research materials, and meeting notes. The legal drafts must be written in legal framework according to Colombian regulations. The Workplan and a Summary (Word and PowerPoint documents) of the consultancy must be also delivered in English.  

This assignment requires the selected consultant to work closely with Finagro, with supervision provided by the GGGI Project Leader – the Land Use Officer of the Colombian Office.

 

Suggested methodology and competence requirements

The consultant will make best use of both primary and secondary sources of information to prepare required outputs. Face-to-face consultation through interviews, workshops, group discussions with relevant stakeholders and authorities is necessary to validate and prioritize the actions to be included. This methodology may be adapted to take place in a virtual setting upon consultation and agreement with the Project Leader. The consultant will report directly to the Project Leader and coordinate closely with Finagro.  

It is the responsibility of the consultant to attend all the events and technical meetings required. 

 

Qualifications/Experience/Expertise
  • (REQUIRED) Must have a valid work permit in Colombia.
  • (REQUIRED) Must hold a Bachelor´s degree in finance, economics, industrial engineering or business administration.
  • (REQUIRED) At least five years of professional experience in first-tier banks, project cycle analysis, project formulation and evaluation. 
  • (REQUIRED) Excellent skills in writing and report preparation.
  • At least two years of professional experience in forestry financing.
  • A Master´s degree related to forest economy/statistics/finance or another related field is desired.
  • Strong innovative skills are crucial.
  • Advanced skills in Excel are crucial.
  • Excellent skills in quantitative analysis as well as analytical and critical thinking skills.
  • Strong communication and diplomatic skills.
  • Excellent written and oral Spanish knowledge as well as a good command of the English language are required.

 

 

 

Additional Information

  • Preferred Start Date: August 26, 2020 
  • Estimated work days: up to 205 work days (9 months) 
  • Contract value: up to USD 30,000 (dependent on candidate's credentials)

 

Date to close is Korean Standard Time (KST). Applications submitted after the deadline will not be considered. Applications and CVs must be sent in English.  

 

Values Logo

Child protection – GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGI’s Child Protection Policy is written in accordance with the Convention on the Rights of the Child.

 

 

 

 

We do our best to provide you the most accurate info, but closing dates may be wrong on our site. Please check on the recruiting organization's page for the exact info. Candidates are responsible for complying with deadlines and are encouraged to submit applications well ahead.
Before applying, please make sure that you have read the requirements for the position and that you qualify.
Applications from non-qualifying applicants will most likely be discarded by the recruiting manager.
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