DIAGNOSTIC STUDY ON SUSTAINABLE BANKING IN THE CONTEXT OF NICARAGUA
JOB DETAIL
DIAGNOSTIC STUDY ON SUSTAINABLE BANKING IN THE CONTEXT OF NICARAGUA
INTRODUCTION TO GGGI
The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.
GENERAL INFORMATION
Diagnostic study on sustainable banking in the context of Nicaragua
- Project: NI01-E1 (100%)
- Duty Station: Managua, Nicaragua, with a flexible arrangement (working from home + attending in person to the office when required)
- Contract Duration: 20 October 2023 – 20 January 2024
- Number of Workdays Estimated (internal purpose only): 44
- Consultant Level: Level 4
- Total Fees: up to USD15,000
PROJECT BACKGROUND
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. The organization also focuses on knowledge development and management activities, which build a solid theoretical and empirical basis for green growth, while providing concrete options and guidance for policymakers, as well as creating the conditions for public and private green infrastructure investments.
Nicaragua’s National Determined Contribution (NDC) was originally submitted to the United Nations Framework Convention on Climate Change (UNFCCC) in 2018 and updated in 2020. The development of the country’s NDC followed a highly participatory and consultative process with vulnerable groups., including native, Afro-descendant, and indigenous communities, women, and youth. The resulting NDC is a very ambitious plan that includes climate change mitigation and adaptation measures.
The Green Climate Fund (GCF) is the financial mechanism created within the framework of this Convention (UNFCCC) and seeks to support countries in complying with their National Contributions (NDC) and in this way, contribute to the final objective of keep the increase in global average temperature below 2°C above pre-industrial levels, recognizing that this would significantly reduce the risks and effects of climate change.
The Global Green Growth Institute (GGGI), in collaboration with the Ministry of Finance and Public Credit of the Government of Nicaragua, is implementing a 24-month technical assistance program for the Government of Nicaragua entitled “Mobilization of climate finance and private investments for low carbon development in Nicaragua”. The program, funded by the Green Climate Fund (GCF) Preparatory and Readiness Support Program, aims to improve the institutional capacity, strategic frameworks, and project portfolio of the Government of Nicaragua to increase the mobilization of national and international climate finance and private investments for the implementation of national determined contribution (NDC) and low-carbon development.
OBJECTIVES OF THE ASSIGNMENT
GGGI is looking for a consultant to conduct a diagnostic study on study on national sustainable banking practices, capacity, systems and regulations involving the Central Bank of Nicaragua (BCN), Superintendence of banks and other financial institutions (SIBOIF), Ministry of Finance and Public Credit (MHCP), Climate Change Secretariat of the Presidency of the Republic (SCCP) and Local Finance Institutions (LFI) in the context of Nicaragua.
The diagnostic study to evaluate the banking sector and regulatory entities in Nicaragua must address the following topics:
• Criteria, support capacities, sources of support and cooperation on Climate Finance
• Current regulatory framework, gaps, barriers related to Sustainability Policy, access to financing for the design of green financial products, innovative technologies, among others.
• ESG (Environmental, Social, and Governance) criteria (Environmental, social and governance), good international banking practices in terms of sustainability.
DELIVERABLES AND PAYMENT SCHEDULE
Under the direct supervision of the Project Manager and in coordination with GGGI Nicaragua team, the Consultant will present the following deliverables:
- Initial report of activities containing the Work Plan and methodology, with its corresponding schedule of activities ten days after the consulting contract is signed.
- Evaluation report of the banking sector, regulatory entities, taking into consideration:
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- Identification of the baseline for designing criteria, support capacities, sources of support and cooperation on Climate Finance.
- Analysis of the current regulatory framework, gaps, barriers related to sustainability policies, access to financing for the design of green financial products, innovative technologies, management information system that detects greenwashing, limitations in decision making in response to climate change in the Bank System.
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3. Evaluation report of the banking sector, regulatory entities, taking into consideration:
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- Proposal for ESG criteria, good international banking practices in terms of sustainability, final recommendations that lead to the greening of the banking system, for the context of Nicaragua.
4. Report containing the development of a sustainable finance taxonomy, which must be incorporated into the national roadmap, including the following elements:
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- Creation of taxonomy selection criteria and sustainability metrics
- Proposal for a national taxonomy monitoring system.
- Propose incentive mechanisms for the transition phase towards a new financial system with a focus on sustainability.
- Develop consultation processes with technical personnel from public institutions that are partners of the Central Bank of Nicaragua (BCN), Superintendence of banks and other financial institutions (SIBOIF), Ministry of Finance and Public Credit (MHCP), Climate Change Secretariat of the Presidency of the Republic (SCCP). Through participatory methodologies, round tables or focus groups.
5. Final report
PAYMENT AND DELIVERY SCHEDCHUELD
| Payment | Deliverables | Target Completion | Amount (% over total fee) |
| 1 | Work Plan and Methodology | October 26, 2023 | 10% |
| 2 | Evaluation report of the banking sector, regulatory entities, taking into consideration: Baseline and Analysis of the current regulatory framework, gaps, barriers related to sustainability policies, access to financing for the design of green financial products, innovative technologies, management information system that detects greenwashing, limitations in decision making in response to climate change in the Bank System. | November 15, 2023 | 20% |
| 3 | Evaluation report of the banking sector, regulatory entities, taking into consideration: Proposal for ESG criteria, good international banking practices in terms of sustainability, final recommendations that lead to the greening of the banking system, for the context of Nicaragua. | November 30, 2023 | 20% |
| 4 | Report on sustainable finance taxonomy, including the following elements:
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December 5, 2023 | 20% |
| 5 | Final report reviewed and approved with final products. | December 15, 2023 | 30% |
Reporting Arrangements
The Consultant will be supervised by the Nicaragua GGGI Project Manager who will be assisted by Green Investment Senior Associate. The consultant’s work progress will be monitored primarily through periodic review meetings. This review, meetings will tackle subjects such as the overview of the contractual objectives, the development of activities, detailed information milestones, actual achievements made against the timeline initially set, and any other relevant progress details.
Deliverable 1 – 5 must be written in English and Spanish, in accordance with GGGI’s formatting requirements, and submitted with proof of editable file back-up (e.g., .docx, .pptx) in the GGGI SharePoint system. Where relevant, the Consultant shall also provide sets of raw data, research materials, and meeting notes related to the contractual objective.
The product referred as to Final Report (Deliverable 5) is a document that will summarize the main deliverables of the assignment, the activities carried out, conclusions, and recommendations about the consultancy, and must be submitted in English and Spanish (maximum 40 pages).
The Global Green Growth Institute (“GGGI”) is committed to transparency, accountability, and openness in the organization. In case of any doubt, please refer to our Whistleblower policy in the link:
http://gggi.org/site/assets/uploads/2017/11/Whistleblower-Policy_02072015.pdf
The consultant should demonstrate the credentials described below.
EXPERTISE REQUIRED
Required:
- Must be a Nicaraguan citizen or foreigner with a valid Work Visa/Permit.
- Master’s degree in business administration, economics, engineering, financial laws, banking and finance, specialization studies in climate finance, environmental management, sustainability applied to business, companies, banks, national financial institutions, development banking.
- Relevant and demonstrable general work experience of 8 years, in the financial sector or development banking, desirable experience in formulation, design and implementation of projects in the public and private financial sector, financial innovation projects, climate finance.
- Experience in public financial institutions, multilateral banks, fiscal policy management, public spending.
- Preferably, at least two years of consulting experience in international financial organizations, multilateral banking.
- Experience in climate finance, two to three years, preferably with GCF funds or similar organizations.
- Experience in Climate Change and sustainable development issues.
- Language: Spanish is required, English is consider a plus
