Global Green Growth InstituteCrecimiento económico sostenible e incluyente
Objectives/Purpose of the Assignment
The main objective of this assignment is to support Finagro and GGGI in consolidating and promoting the forest economy. Specifically, consultancy support shall be given through the assessment of the current forest financial products offered by Finagro and first-tier banks, strengthen the understanding of the sector by first-tier banks and provide recommendations to adjust current or develop new financial products.
Scope of Work
The technical assessment and recommendations will be carried out by developing the following components:
Component 1: An Assessment of Financial Products to the Forest Economy in Colombia
The main output for this component will be an assessment of the current financial products directed at the forest economy by the first-tier banks, how they are offering those products to their clients, and how they are using the funding from second-tier banks to support them. The assessment must include the identification of the main barriers to accessing these financial products as well as the potential ways to overcome them.
Component 2: An Assessment of the Current Collateral Options
This component requires a needs-assessment of the current collateral instruments on offer to the forestry sector complete with an argumentation of why they are needed, as well as recommendations to adjust the current or develop new options. The options given for collateral instruments must be specific to those related to plantations and natural forest.
Component 3: An Analysis of the Funding Options for the Financial Products to the Forest Economy.
An analysis that identifies the current funding options available of financial products to the forest economy as well as recommendations to adjust or develop new methods of funding.
Component 4: Awareness Raising of Pricing Structures of the Forestry Sector and the Minimum Profitable Unit of Forest Economic Activities
The fourth component is to facilitate the awareness of Finagro and first-tier banks to the pricing structures of the forest sector and the minimum profitable unit of the sustainable management of natural forests and commercial forest plantations. This component aims to support the need of changing the perception of investment risk linked to forest economy activities. The pricing structures and the minimum profitable unit of the different forest-related economic activities will be provided by GGGI to the consultant, with the expectation that the consultant provide their review and recommendations to improve upon them.
1. A detailed Workplan agreed upon with Finagro.
2. An Assessment of Financial Products to the Forest Economy in Colombia: This must include the detailed description of the first-tier banks´ financial instruments for the sector and how these match to Finagro´s products. Adjustments recommendations or new products proposals are required with an emphasis on how Finagro could lead in the development of these adjustments and/or products.
3. An Assessment of the Current Collateral Options: This analysis must include the National Agrarian Guarantee Fund (or Fondo Agropecuario de Garantías known in Spanish), the forestry projection (vuelo forestal as it is known in Spanish), collateral that is linked to properties, plantation management under loan defaults, among others. Recommendations to adjust or develop new collateral options are required to complete this component.
4. An Analysis of the Funding Options for the Financial Products to the Forest Economy: A review of the sources of funding that align the financial products to the financial conditions of a forestry project. This includes assessing those options given by Finagro, Ministry of Agriculture and Rural Development, among others. Recommendations on the funding adjustments or on the use of different financial mechanisms to fund the proposed instruments are required to complete this component.
5. Awareness Raising of Pricing Structures of the Forestry Sector and the Minimum Profitable Unit of Forest Economic Activities: Facilitate the awareness of Finagro and first-tier banks to the pricing structures of the forest sector and the minimum profitable unit of different forest economy activities. This must include workshops, bilateral meetings, among others. A roadmap that details the actions to pursue for Finagro and first-tier banks to promote financial products aimed at the forest economy must be provided. Lastly, the consultant must provide a final Summary of the consultancy in a brief report (~2-4 pages) and an accompanying PowerPoint (~5 slides) giving an insight into the products and details of the consultancy.
Suggested methodology and competence requirements
The consultant will make best use of both primary and secondary sources of information to prepare required outputs. Face-to-face consultation through interviews, workshops, group discussions with relevant stakeholders and authorities is necessary to validate and prioritize the actions to be included. This methodology may be adapted to take place in a virtual setting upon consultation and agreement with the Project Leader. The consultant will report directly to the Project Leader and coordinate closely with Finagro.
It is the responsibility of the consultant to attend all the events and technical meetings required.
(REQUIRED) Must have a valid work permit in Colombia.
(REQUIRED) Must hold a Bachelor´s degree in finance, economics, industrial engineering or business administration.
(REQUIRED) At least five years of professional experience in first-tier banks, project cycle analysis, project formulation and evaluation.
(REQUIRED) Excellent skills in writing and report preparation.
At least two years of professional experience in forestry financing.
A Master´s degree related to forest economy/statistics/finance or another related field is desired.
Strong innovative skills are crucial.
Advanced skills in Excel are crucial.
Excellent skills in quantitative analysis as well as analytical and critical thinking skills.
Strong communication and diplomatic skills.
Excellent written and oral Spanish knowledge as well as a good command of the English language are required.
Preferred Start Date: August 26, 2020
Estimated work days: up to 205 work days (9 months)
Contract value: up to USD 30,000 (dependent on candidate’s credentials)