Indonesia: Consultant for Development of Project

**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).

**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:

- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Location
- Indonesia
- City
- Jakarta
- Contract Type
- Individual Consultant (Deliverable)
- Grade
- Individual Consultant 4
- Salary scale
- Individual Consultant Sca