Paraguay: Debt for Climate Swap Consultant
Pristina
- Organization: GGGI - Global Green Growth Institute
- Location: Pristina
- Grade: Consultancy - Consultant - Contractors Agreement
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Occupational Groups:
- Environment
- Meteorology, Geology and Geography
- Climate Change
- Closing Date: Closed
Paraguay: Debt for Climate Swap Consultant
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.
BACKGROUND
In its updated NDC, submitted to the United Nations Framework Convention on Climate Change (UNFCCC), the Government of Paraguay seeks to cut emissions by 20% by 2030, compared to business as usual (BAU) scenario. The achievement of this target is heavily dependent on external finance from development partners and developed economies.
The significant investments and efforts required for Paraguay to adapt to and mitigate climate change risk being hampered by the impact of the COVID-pandemic which hit the country after a prolonged period of high debt-financed public infrastructure investments, deteriorating the country´s economic outlook and leaving little fiscal and policy space to pursue priority climate change adaptation and mitigation initiatives. Although international climate finance and official development assistance (ODA) offer some relief to the country´s growing ratio of debt to GDP ratio, the decreasing level of international aid undermines the long-term sustainability of this approach.
In this context of increasing fiscal pressure, the Government of Paraguay in collaboration with the Global Green Growth Institute is exploring alternative capital raising options and instruments to secure concessional long-term resources to be employed to finance the country’s climate change mitigation and adaptation priorities, including Debt-for-Climate Swaps.
OBJECTIVES OF THE ASSIGNMENT
The objective of the assignment is to investigate the viability, alternative implementation structures and benefits of a Debt-for-Climate Swap transaction in Paraguay, including:
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Assess the Government of Paraguay’s current debt and budget situation;
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Identify and describe key stakeholders and their role in a possible Debt-for-Climate Swap transaction;
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Propose a suitable framework for developing and operationalizing a Debt-for-Climate Swap in Paraguay, including critical governance structure and operational issues.
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Identify possible costs, benefits, and challenges of the proposed mechanism;
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Evaluate the feasibility of debt for climate swap structures in Paraguay and outline the steps forward, the conditions required, such as governance and legal structures.
Based on the complete diagnostic of the situation, the consultant will consider the feasibility of a Debt-for-Climate Swap transaction in Paraguay as modality for resource mobilization for low-carbon sustainable development, and for achieving Paraguay’s NDC targets.
DELIVERABLES AND PAYMENT SCHEDULE
Deliverable 1: External debt profile of Paraguay
The consultant shall develop a report outlining the following information:
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Profile and current status of Paraguay’s Public Debt
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Profile and current status of Paraguay’s ODA
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Profile and current status of Paraguay’s outstanding external debt: including information on its composition, instruments, profile of bilateral creditors, profile of private creditors, cost of debt and time to maturity;
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Assessment of Paraguay’s external debt sustainability: including information on external debt’s trends, debt service, average time to maturity and re-fixing;
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Prior debt-conversion experience: brief assessment of past debt restructuring, liability management and swap operations;
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Assessment of available debt for repurchase: Bilateral Debt
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Assessment of available debt for repurchase: Public debt owed to private creditors
The deliverable must be approved by GGGI Project Manager.
Deliverable 2: Stakeholder mapping, implementation and legal arrangements
The consultant shall develop a report outlining the following information:
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Identification of laws, regulations or decrees regulating Debt-for-Climate swaps and public debt restructuring processes;
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Identification of public sector actors involved in possible Debt-for-Climate swaps;
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Description of roles and responsibilities of public sector actors involved in possible Debt-for-Climate swaps;
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Flow chart describing the Government of Paraguay’s decision making process of a possible Debt-for-Climate swaps;
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Assessment of pre-identified implementation and/or legal barriers in a possible Debt-for-Climate swaps;
The deliverable must be approved by GGGI Project Manager.
Deliverable 3: Feasibility of implementing Debt-for-Climate Swaps
The consultant shall develop a report outlining the following information:
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Feasibility of a Debt for Climate Swap involving private creditors (bondholders)
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Feasibility of a Debt for Climate Swap involving bilateral creditors
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Feasibility of a Three-Party Debt for Climate Swap involving the Green Climate Fund
The feasibility assessment shall include, among other information:
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Proposed structure (flowchart)
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Transaction parties, including roles and responsibilities
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Estimated timeline and costs
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Draft terms of reference outlining the step by step process of the transaction
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Critical governance structure and operational issues
The deliverable must be approved by GGGI Project Manager.
Suggested methodology and competence requirements.
The consultant is expected to have weekly interactions with GGGI Project Manager. During the meeting the consultant will be asked to report on progress against the contractual objectives, activities, and milestones. The consultant shall communicate any deviation from the Workplan to GGGI Project Manager.
PAYMENT SCHEDULE
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Deliverable |
Delivery Date |
Value (% of the total payable) |
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November 11, 2022 |
25% |
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December 02, 2022 |
25% |
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December 20, 2022 |
50% |
EXPERTISE REQUIRED
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Bachelor’s degree in economics, Finance, Business Administration or other related fields
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An advanced degree in Finance, Economics or a relevant field is desired
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At least 5 years of sustainable finance experience, preferably in financial institutions or development agencies
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Thorough understanding of Debt for Nature/Climate Swaps is required
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Prior involvement in Debt for Climate/Nature Swaps is a strong plus
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Familiarity with Paraguay’s public finance ecosystem and policies is a strong plus
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Experience working in Paraguay region is a strong plus
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Previous work experience in multilateral development banks is desirable
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Strong interpersonal and communication skills and a proven ability to develop, maintain and enhance relationships with a variety of internal and external contacts
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Complete English and Spanish proficiency
ADMINISTRATIVE INFORMATION
The Consultant reports to the GGGI Project Manager. This is a home-based position.
Date to close is listed in Korean Standard Time (KST). Applications submitted after the deadline will not be considered.
A consortium, or a firm may not be engaged for the individual consultant assignment.
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.