Project Description
Rationale
The ‘Regional mechanisms for the low-carbon, climate-resilient transformation of the energy-water-land Nexus in Central Asia’ consortium programme, (‘the Consortium Programme’) aims to provide the Central Asian countries of Uzbekistan, Tajikistan, Kyrgyz Republic, Turkmenistan and Kazakhstan with ways to apply energy, water, land-use nexus approaches to modify the planning processes and adopt a whole-of-government concept to address socio-economic and environmental challenges. It places an emphasis on quantification of economic (and non-economic where relevant) benefits of the nexus approach for the region’s socio-economic development that is climate-resilient, environmentally sustainable and socially inclusive. The nexus approach aims to:
- Enhance institutional and individual capacity that leads to integration of nexus considerations into policy development and project planning in Central Asia
- Scale up finance for projects and businesses that generate nexus benefits and contribute to deeper regional and cross-sectoral co-operation toward climate, energy, water, and food security
- Foster political dialogue at the regional level to build confidence in the benefits of co-operation on the nexus and demonstrate the opportunities for high-impact, cross-sectoral investments in support of energy, water, and land use security in the region.
The EBRD is implementing the Programme in a Consortium, which is led by the Organisation for Economic Co-operation and Development (OECD). Other members of the Consortium are The United Nations Economic Commission for Europe (UNECE) and The Scientific Information Center of the Interstate Coordination Water Commission of Central Asia (SIC-ICWC) as well as the Food and Agricultural Organization of the United Nations (FAO), which is the EBRD’s implementing partner (together, the Consortium). The Consortium Programme is funded by the International Climate Initiative (IKI) and the, Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection of Germany (BMUV), (together, the Donor”).
The EBRD is responsible for implementing one of the four packages of the overall Consortium Programme - a financing mechanism, called the ‘Agrifood Nexus Programme’ (‘the programme’).
The overall EBRD ‘Agrifood Nexus Programme’ is expected to be implemented as follows:
1. Non-Technical Cooperation (TC) funding, allocated for:
- First Loss Risk Cover to allow EBRD to lend and invest in loans and quasi-equity and exceptionally equity in the qualifying local agribusinesses via EBRD Direct Financing Facility and/or Risk Sharing Facility.
- Investment grants, representing 30% of the eligible CAPEX amounts, to eligible primarily agribusiness beneficiaries as per the established criteria;
2. Technical cooperation, primarily project preparation and verification
3. Administration costs, as well as the knowledge-transfer and communications costs related to the ‘Agrifood Nexus Programme’; as well as
4. Technical cooperation for EBRD’s implementation partner, the FAO.
TC Services
The consultants appointed will implement the Programme including but not limited to the following activities:
- Carry out project preparation TC for clients related to potential investment project under the programme
- Check and confirm that each project that is eligible for payment of an investment grant has successfully met all defined eligibility criteria and has been successfully completed in accordance with the original investment plan.
In line with the approved BMUV funding, the Programme will be structured and managed through three components:
- Component 1: Project Preparation - Environmental & Social, Financial, Legal and Technical Due Diligence
- Component 2: Independent Verification Consultant services
- Component 3: Agrifood Nexus Programme Management;
Component 1: Project Preparation
It is expected that approximately 60% of Agrifood Nexus assignments will be reserved for project advisory, in particular preparation assignments. These will be replicable due diligence assignments, based on standardised ToR and BoC pre-approved by GRU under TCRS project #15925, as follows:
- Activity 1: Environmental due diligence to determine how potential environmental, social, health & safety, and animal welfare impacts and associated financial, legal and reputational risks should be addressed in project planning, implementation and operation. For example:
- Review of corporate policies and practices
- Environmental audit of existing facilities
- Environmental & Social Action Plan
- Stakeholder Engagement Plan
- Activity 2: Financial due diligence of enterprises that may not have experience in international standard accounting/auditing. For example:
- Assessment of earnings and underlying growth and margin trends
- Balance sheet analysis
- Review management information system
- Valuation of Company
- Activity 3: Legal due diligence, for example:
- English legal opinion
- Prepare letter of information
- Corporate check of Company
- Draft financing agreements
- Activity 4: Technical/Commercial due diligence to review current & expected market conditions & appropriateness of business plan in light of relevant market trends. For example:
- Market analysis
- Assessment of Company's competitive positioning
- Assessment of Company's business plan
- Assessment of Company's & competitors' product offerings
- Comment on Company's CAPEX programme
Component 2: Independent Verification Consultant “IVC”
Under component 2, an independent verification consultant will be put in place to check and confirm that each project that is eligible for payment of an investment grant under the Agrifood Nexus Programme has successfully met all defined eligibility criteria and has been successfully completed in accordance with the original investment plan.
Consultants engaged to implement this will:
- Submit a verification report:
- assessing and verifying the eligibility of the borrower,
- indicating the amount of Grant payable,
- ensuring use of proceeds has met eligibility criteria
- confirming investments have been in line with defined procedures
- Submit an annual operations report summarising the yearly activities of the IVC
Component 3: Agrifood Nexus Programme Management
Through Component 3, as agreed with the donor, a programme manager will be put in place, responsible for the Programme implementation and monitoring (Programme Management).
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: procurement@ebrd.com
Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.
General enquiries
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
