Accelerating Renewable Energy Investment in Central America through CABEI (ARECA)
Title International Project Co-ordinator
This is a large ($89m), innovative and regionally important five year project and is funded by the Global Environment Facility (GEF), implemented by the United Nations Development Programme (UNDP) and executed by the Central American Bank for Economic Integration (CABEI).
Historically, hydroelectric power has dominated Central America's electricity sector. However, since opening the market up to foreign investors beginning in the late 1990s, the privatization of energy markets allowed the development of numerous new thermal (mainly oil) generation plants. As a result, the thermal generation proportion has grown rapidly in spite of hydropower. As a share of regional electricity consumption, the hydropower contribution has fallen from 80% in 1980 to approximately 50 - 55% in 2005.
The overall objective of the Project is to accelerate small and medium size renewable energy investments (under 10 MW) by strengthening the ability of the Central American Bank for Economic Integration (CABEI) to play a catalytic role in this important sector. The project is based on a regional approach, involving Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama, and aims to reduce greenhouse gas emissions by promoting the use of renewable energy systems for electricity generation in both grid connected and decentralized applications, thereby contributing to the economic development of Central America.
The core of this initiative is the development and implementation of a Partial Risk Guarantee Mechanism (PRGM) aiming at promoting investments of around 80 million USD in 40 MW of small to medium renewable energy projects.
The project will work with the region’s financial sector network, namely the Central American Bank for Economic Integration (CABEI) and select members of its extensive network of financial intermediaries (FIs), to develop and extend new financial products that will generate substantial increased lending to potential small and medium size renewable energy investments. CABEI will provide credit lines to its financial partners to lend to small and medium size renewable energy projects (SMREP) and GEF funds will cover bank risk through the provision of partial risk guarantees.
Finally, the project will work with Governmental and inter-governmental institutions, including Ministries of Environment and relevant sectoral ministries (industry, finance, etc.) to support an enabling environment that will encourage SMREPs both to prosper and generate environmental benefits.
The Project Coordinator will be contracted by CABEI and financed through ARECA Project funds. (S)he will occupy a pivotal position at the heart of the ARECA Project, working in close collaboration with CABEI’s designated Programme Officer to ensure the success of the Project, as well as the effective management of its various activities. (S)he must bring to the Project the necessary skills and experience to ensure the following overall objectives:
a. The cost-effective, timely and professional management of the ARECA programme, with particular regard to the delivery of the programme Objective and Outputs, the capacity-building activities, the provision of all reports and other information permitting adequate monitoring of programme advancement, etc.
b. The effective and timely transfer of all necessary information and expertise required to ensure the acquisition of a proper understanding of the specific financial parameters and requirements of small and medium scale RE projects being developed in an emerging market region such as Central America. Such parameters will include:
• Advanced project evaluation methodologies serving to design and implement appropriate financing packages on a project by project basis, in such a fashion as to maximize the project’s inherent financial viability (limited recourse financing), and to reduce the reliance on additional security provided shareholders and investors in the form of pledged personal assets;
• A thorough working knowledge of state of the art RE project financing structures and instruments;
• Knowledge of available providers of RE financing (both equity and debt), including multilateral institutions, bilateral ODA-type entities, specialized funds, etc, so that ARECA may establish proactive working relations with those most likely to support the funding of SMREPs in the region;
• The design of appropriate interbank and co-financing modalities to maximize the contribution of the IFI network alongside CABEI.
c. The design and implementation of the GEF-funded PRG facility, including documentation, terms and conditions of operation, applicable criteria, internal institutional and administrative arrangements, interbank arrangements, etc.;
d. Promoting and supporting CABEI’s direct participation in disseminating awareness of the PRG among financial intermediaries and other interested parties, including the organization of appropriate workshops for the benefit of IFIs, RE project promoters, and other interested “players” in the SMRE market;
e. The provision of support to CABEI (as necessary) in the negotiation of interbank agreements relating to the application of the PRG;
f. Oversight and monitoring of project progress proposing adjustments, suggestions and corrective actions as required during the project execution process in correspondence with the evolving regional scenario and the need for adaptive management actions.
(S)he will in addition oversee the activities of an assistant, who will be hired to support the Coordinator. His/her performance will be measured in large part according to whether the Outcome and Outputs, as well as the target indicators, are achieved as per the Logical Framework Matrix.
III. Responsibilities related to specific project outputs
Output Project Coordinator
1.1 Internal strategy, policy and/or procedures, and structure established within CABEI to support the financing of small/medium scale RE projects in the region • Work with the CABEI executives allocated to the ARECA Project to transfer the necessary expertise in SMREP financing, establishing the appropriate internal institutional policies, arrangements and procedures serving to enhance CABEI’s role in the evaluation of RE projects, the mobilization of financial resources (both inside CABEI and at the level of the IFIs) and the structuring of appropriate finance packages for candidate projects.
1.2 Regional renewable energy market analyzed on an ongoing basis • Identification of appropriate sources of information and ensure that analysis produces usable information for all participants.
1.3 Formalized synergies established among available and future financial institutions and instruments relevant for financing of small-scale RE projects on a project finance basis • Support CABEI executives in the identification and establishment of good working relations with, other institutions and programmes contributing to the development of the RE market in the CA region, whether of a financial or other nature. Assist in the identification and evaluation of new financing instruments targeted at the RE sector, to assess their relevance to the actions of CABEI under this Project.
2.1 In-house capacity developed in CABEI Head Quarters, Country Offices and IFIs to identify/evaluate/finance SMREPs and implement the PRG • Work with in-house credit officers and energy sector expert to design a training programme for the credit managers and officers in CABEI’s headquarters and Regional Offices, with a view to preparing a project finance-based set of project evaluations, tools, programs and methodologies, including the uses and implementation of a PRG. Once this preparatory work has been completed and agreement has been reached internally in CABEI as to the optimal manner in which such the financial institutions in the region should participate, establish working relations with the IFIs based on training and the joint design of RE lending and promotion strategies.
• Assist CABEI as necessary in the selection of the IFIs for the training programme
• In follow up to the training, provide one on one consultations with IFIs to consult senior management of banks in the nature of the SMREP market and project evaluation and financial tools, with particular reference to the PRG
• Work with CABEI’s executives to design, write down and implement standard SMREP project concepts and financing structures
• Work with CABEI’s executives to develop standard templates and guides to assist both the Bank Officers and IFIs to facilitate their project appraisal and assist clients in structuring of RE business financing,
• Design a scale up of the training programme to build capacity in as many financial institutions as deemed feasible by CABEI
• Work with CABEI’s executives to finalize interbank modalities and operating procedures for the PRG facility
• Elaborate and finalize financial management and contractual arrangements with GEF/UNDP and the participating financial institutions as necessary
• Work with CABEI and IFIs to launch the PRG facility
• Work with CABEI’s executives to design and implement a monitoring system for the use of the funds, modify on the basis of lessons learned and further develop the PRG instrument as necessary
2.2 Increase awareness of SMREP financing (including PRG) opportunities and modalities among all relevant stakeholders, including RE project developers in particular • Assist CABEI and its Regional Offices in the design and implementation of activities created to increase awareness of the Bank’s lending strategies directed at the SMREP sector, for the benefit of all participants in the RE market and SMREP developers in particular.
• Involve as necessary third party institutions in the process.
2.3 Feasibility work funded through CABEI and other pre-feasibility funding sources • Assist CABEI’s executives in the application of funds for feasibility studies on short-listed projects, in particular determining the scope and TORs of such work and the most cost efficient manner to identify, evaluate and contract advisors.
• Assist in the identification of complementary sources of feasibility study funding, through a dialogue with the IDB’s INFRAFUND and similar instruments.
3.1 Partial Risk Guarantee fund established and operational • Assist CABEI’s executives in elaborating and implementing the PRG fund, as well as it´s operation.
• Support CABEI’s executives in getting the PRG mainstreamed both at the level of CABEI and of the IFIs
3.2 SMREPs identified, evaluated, and/or financed • Support the process of SMREP identification and selection.
• Participate directly as required in the negotiations with SMREP developers to ensure the appropriate application of the PRG facility, in line with criteria and parameters determined under Output 2.1 above, and in the design of an overall project funding structure per project
• Support as necessary CABEI’s executives in the elaboration and implementation of the financing package
3.3 Replication and exit strategy implemented • Support CABEI’s executives in the design of the necessary measures and steps needed to replicate the PRG facility and any other innovative financial instruments developed in the context of the ARECA Project.
• Determine the optimum strategy for the follow-on stage of the ARECA Project with the involved parties, if appropriate.
4.1 Comprehensive project impact monitoring and analysis system established • Working with all involved parties to design a methodology for the evaluation of the Project’s impact (financial, environmental, social and economic), with particular reference to the identification of positive and negative lessons learned.
4.2 Adaptive management systems established to inform and adjust project implementation based on lessons learned from monitoring system • Assist in the design of follow-on measures which take full account of the lessons learned and assessed under 4.1
4.3 Regional information dissemination of project lessons and best practices for SMREP development and financing • Assist in the preparation of workshops, seminars, promotional and informative material, designed for a regional audience of all stakeholders in the RE market, drawing particular attention to the benefits of the ARECA project, the lessons learned and recommendations for future actions of this kind.
IV. Period and duration
The Project Coordinator position will be filled as soon as possible following the start of the project and will be financed over a period of five years.
• At least 5 years of project financing and general banking experience (preferably with a significant proportion of this time spent working alongside Latin American financial institutions), including direct experience of institutional structures, interbank relationships, project financing capacity building and SME business financing, and a general familiarity with the financial context of the Latin American region;
• At least 5 years of experience acquired in the field of RE project financing, specifically small and medium RE project design, financing and implementation arrangements.Particular merit will be attached to proven experience in the application of limited recourse and similar project evaluation and delivery methodologies (such experience to be backed up with detailed examples of projects completed over the preceding 5 years, as well as references from relevant institutions / clients);
• Experience in the field of development and technical cooperation.
• Proven experience in successfully working with adaptive management/monitoring & best practice assessment;
• Well developed leadership, inter-personal, communication and negotiating skills, as well as a proven ability to work effectively in groups and to support the design of thematic workshops and seminars;
• Post-graduate specialization in relevant area, e.g., finance or development, desirable but not essential if relevant hands-on experience is adequately demonstrated;
• Reliability, initiative, thoroughness and attention to detail; and,
• Bilingual English and Spanish with full working proficiency in each.
VI. Submission Details
Candidates should submit their Resumes plus a cover note via email by July 27th 2007 to the following email address: firstname.lastname@example.org. Only short-listed candidates will be contacted and subsequently asked for writing samples and interview. For questions please contact email@example.com.