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Indonesia: Consultant for Development of Project Pipelines for Debt Nature Swap

Jakarta

  • Organization: GGGI - Global Green Growth Institute
  • Location: Jakarta
  • Grade: Consultancy - Consultant - Contractors Agreement
  • Occupational Groups:
    • Project and Programme Management
  • Closing Date: Closed

Indonesia: Consultant for Development of Project Pipelines for Debt Nature Swap

 

Objectives of the Assignment:

BPDLH is continuously exploring potential new funding sources and mechanisms to increase funds and diversify financial schemes available for sustainable environmental management in Indonesia. One funding source that is currently being managed by BPDLH is Debt for Nature Swaps (DNS) - an agreement that reduces a developing’s country debt in exchange for a commitment to protect nature from the debtor government[1]. The current DNS funds are from the Government of Germany that has been disbursed in 2006. The funds from the DNS mechanism were managed and allocated previously by the Ministry of Environment. With the establishment of BPDLH as the financial institution for environmental funding, the DNS funds are currently managed by BPDLH.

A total of EURO 12 million funds were disbursed under DNS arrangements, with around 50% of funds disbursed through loans for off-farm MSMEs to build waste management infrastructure and small-scale industries and laboratories. The DNS fund program will continue to focus on enhancing MSMEs and industry to manage environmental waste, including upgrading their project portfolio and getting access to different funds and facilities (such as loans, profit sharing mechanisms, or insurance instruments). The funds are disbursed using a revolving fund scheme from BPDLH for investment in projects in the “brown sectors” which are: 1) solid waste management and infrastructure, and 2) toxic and hazardous waste management and infrastructure, etc. These sectors include projects such as: waste and hazardous management, financing pollution prevention equipment, 3R (reduce, reuse, recycle) equipment, waste treatment installation, environmental laboratory, eco-friendly treatment and certification, and construction of Waste Water Treatment Installation (Instalasi Pengolahan Air Limbah/IPAL).  

GGGI will mobilize one (1) individual consultant on a framework contract basis. The individual consultant is expected to develop projects pipeline for the existing DNS funds. The individual consultant is also expected to provide an analysis of the possibility to raise additional funds through environmental-based mechanisms (like DNS, etc). The following duties and responsibilities are indicative and subject to further detailing through specific service requests to be made by GGGI during the course of the contract duration. 

Scope of Works:

The team:

For this assignment, the consultant will work closely with the GGGI Investment Team and the BPDLH revolving fund team. The consultant is expected to collaborate with GGGI team members (including consultants) who are working on complementary aspects to this scope of work.

The tasks and approach:

  1. Conduct preliminary analysis and due diligence to review Indonesia’s foreign public debt outstanding, debt relief possibilities, associated debt restructuring costs and opportunities, and find possibilities for BPDLH to use different environmental investment, mechanisms, etc.
  2. Outline plausible options/scenarios for environmental investment or financing schemes in Indonesia based on: a) Elaborating on the environmental investment or financing mechanism and identifying other similar concepts/mechanisms (like Debt for Climate Swaps). b) Elaborating and analyzing the eligibility conditions for debtor nation and project pipeline. c) Identification and analysis of the potential sovereign debt in Indonesia (debtor country) eligible under the DNS scheme. This shall include working closely with the relevant directorates in the Ministry of Finance and relevant line ministries. d) Evaluating and analyzing the core elements of a DNS: the amount and type of debt, redemption price and/or discount rate, implications on sovereign credit ratings, eligible project pipeline, schedule of payment, exchange rate, terms of utilization of the proceeds, etc.
  3. Stakeholders mapping and institutional analysis for potential environmental investment/financing mechanism (creditor(s), donor(s), facilitator/intermediary, implementing entity/beneficiary, conservation trust funds, and foundations) in Indonesia.
  4. High-level policy gap analysis on the feasibility of implementing an environmental investment or financing scheme by BPDLH based on options identified in points 1 and 2.
  5. SWOT and risk analysis for the implementation of environmental investment in Indonesia by considering multistakeholder perspectives including (but not limited to) Ministry of Finance and line ministries as well as State-Owned Enterprises, etc.
  6. Develop a pipeline of projects for the environmental investment or financing schemes identified above) focusing on waste management and infrastructure including solid waste and toxic and hazardous waste. Private sector projects, that are community-based and/or MSMEs, with an investment size up to USD 34,000 shall be considered eligible under the current program.
  7. Develop recommendations for financial structure and management (from fund governance, instrument requirement, fund disbursement and settlement) of the identified pipeline projects.

Due to evolving COVID-19 pandemic, the meetings may be conducted offline and/or virtually, depending on the local COVID situation and related government protocol.

Any communication by the Consultant to other external partners must be approved by GGGI.



Deliverables and Payment Schedule:

The Individual Consultant is required to submit countersigned Coversheet Form in which Work Completion section was signed by the service requestor as the deliverable of each service.

The Individual Consultant will report to the Investment Lead for the completion of the tasks and duties at the GGGI in which the Individual Consultant will be retained.

No.

Output/Deliverable

 

Payment Terms

Percentage of

Maximum Amount

1.

Submission of the inception report, outlining the methodologies, stakeholder engagements/mapping plans, timeline and work plans to achieve the project result

18/07/2022

 

10 %

(USD 990)

2.

Submission of initial report/analysis on:

  1. Identification and analysis (and due diligence) to review Indonesia’s foreign public debt outstanding, debt relief possibilities, associated debt restructuring costs and possibilities, and relevant issues.
  2. Existing IEF strategy, policies, regulations, and internal standards regarding climate finance, debt management, and fund flow used for environmental investment;
  3. Scoping analysis of the up to two potential countries for sovereign debt or DNS scheme for Indonesia

1/08/2022

 30 %

(USD 2970)

3.

Submission of the draft report, which should include:

  1. Longlist of the pipeline of projects
  2. Stakeholders mapping for the identified projects

1/09/2022

30 %

(USD 2970)

4.

Submission of the final report, which should include:

  1. Final list of projects including investment size, stakeholders discussions, and underlying financing/business model
  2. Final recommendations about the financial management of the identified pipeline projects

30/09/2022

30 %

(USD 2970)

The Consultant may also be required to produce additional output(s) as deemed reasonably necessary by GGGI, such as presentation materials (PPTs).

 

Expertise/Qualification information:

GGGI will enter into a contract for the delivery of the work set out in these Terms of Reference. The skills and experience required of the adviser should include inter alia:

  • At least Master Degree in Environment Science, Environment Studies, Development Studies, Economics, or other relevant fields. PhD will be favorable.
  • Strong knowledge/background of technical issues in non-land based sector in Indonesia, especially in waste management will be an advantage.
  • Advanced knowledge in public sector financing, sovereign debt issuance, national budget planning, knowledge financing, or in related fields.
  • Work experience/background with a minimum of 3 years in finance and business development or project development in non-land based sector in Indonesia.
  • At least 5 years of experience in working with government bodies, especially the Ministry of Finance Indonesia and/or the Ministry of Environment and Forestry.
  • At least 5 years of experience in natural resource management, environmental science, finance, development studies, or other related field.
  • Familiarity with green growth and green investment issues and strategic implementation in Indonesia.
  • Demonstrated understanding of and experience with Indonesia’s government system and key stakeholders in the non-land based sector, including relevant private sector and markets will be highly favorable.
  • Experience in consensus-building between different government departments via workshops and roundtables in Indonesia will be an advantage.
  • Must be able to analyze/review/translate professional documentation (Bahasa Indonesia and English).
  • This position is for Indonesian candidates only. The candidates must have superior English-speaking skills. 

 

Administrative Information:

In order to be considered for the position, the candidate must meet the minimum qualification listed below. Consideration and selection will be based on a panel evaluation of the evaluation criteria factor below. Please note that only shortlisted/finalist applicants will be interviewed or contacted. GGGI does not pay for any expenses associated with the interviews unless expenses are pre-authorized. Reference check will be conducted on those candidates selected for an interview. The applicant’s references must be able to provide substantive information about his/her past performance and abilities.

Interview and writing exercise may be requested. Applicants are required to prepare a brief narrative demonstrating how prior experience and/or education and training address selection criteria factors listed below:

  1. Professional Competency (20 points): At least a Master’s degree in environmental science, environmental studies, economics, business, development studies, or other relevant field.
  2. Technical knowledge and experience (30 points): Advanced knowledge in public sector financing, sovereign debt issuance, national budget planning, knowledge financing, or in related fields; Strong knowledge/background of technical issues in non-land based sector in Indonesia, especially in waste management will be an advantage; Work experience/background with a minimum of 3 years in finance and business development or project development in non-land based sector in Indonesia; At least 8 years of experience in working with government bodies, especially the Ministry of Finance Indonesia and/or the Ministry of Environment and Forestry; At least 8 years of experience in natural resource management, environmental science, finance, development studies, or other related field; and familiarity with green growth and green investment issue and strategic implementing in Indonesia
  3. Communication (30 points): Fluency in oral and written English and Indonesian is required. This means an ability to participate in professional meetings in English.
  4. Individual Competency (20 points): Familiarity with green growth and green investment issues and strategic implementation in Indonesia; and demonstrated understanding of and experience with the Indonesian government system and key stakeholders in the non-land based sector, including relevant private sector and markets will be highly favorable. S/he must have proficient computer skills (Microsoft Office, GIS applications, and other online services). S/he must be able to work well with the team, demonstrating strong interpersonal skills and good judgement to meet all organizational objectives.

Maximum Points Available: 100

At GGGI’s discretion, reference checks and interviews may be conducted as part of the evaluation process.

Applicants must also include in their application package as follows:

  1. A cover letter of no more than 3 pages that demonstrates how the candidate’s qualifications meet the work requirements;
  2. A curriculum vitae which, at a minimum, describes education, latest experience, and career achievements;
  3. Names, current and accurate contract numbers (email and phone) of three professional references that have knowledge of the applicant’s abilities to perform the duties set forth in the solicitation.

All of the above information must be included in the application package in order for the package to be considered complete. The applicants may require submitting 2 pages to describe the strategy and work plan to meet the project objectives after the interview for final evaluation process. 

Interest candidates should send the above information directly in the link https://careers.gggi.org/vacancy/

All application submitted by GGGI website or e-mail, must be in GGGI Seoul, no later than 9 July 2022 at 5:00 p.m. Korean Standard Time (KST). Application submitted after the deadline will not be considered Application. Cover Letter, and CV must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment.

 

Applicable Tax:

Value Added Tax clarification

Individual consultant without Indonesian tax ID: In accordance to Directorate General Taxation number SE-145/PJ/2010 VAT is applicable on foreign services rendered by international entities not registered in Indonesia are subject to 10% VAT.

Withholding tax on foreign services rendered/withholding tax Art 26

Payments of royalties, interest and service fees by resident taxpayer to a non-resident taxpayer are subject to 20% withholding tax Art 26. However, if the payment is made to a resident of a country with which Indonesia has signed a tax treaty, the withholding (WHT) may be reduced or exempted. Non resident tax payer should get the DGT1 form certified by their country of residence tax authority to be exempted from WHT. Please visit the following sites to download the DGT1 form. (http://www.pajak.go.id/content/formulir/10198/form-dgt-1)

Withholding tax on local purchase of goods and services

Payments of certain types of income paid to resident taxpayers are subject to withholding Art 23 at a rate of 15% (for dividend, interest, royalties) and 2% (rental of asset, other than land and building [which is subject to final tax Art 4(2)] and services such as technical, management, consulting services, etc).

 

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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.

This vacancy is now closed.
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