Wildlife Conservation Bond · 2020-05-06 · Wildlife Conservation Bond Countries South Africa...

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WB - Project Identification Form (PIF) entry – Full Sized Project – GEF - 7

Wildlife Conservation Bond

Part I: Project Information

GEF ID10330

Project TypeFSP

Type of Trust FundGET

CBIT/NGI

CBIT NGI

Project TitleWildlife Conservation Bond

CountriesSouth Africa

Agency(ies)World Bank

Other Executing Partner(s) Executing Partner TypeZoological Society of London, Conservation Capital, SAN Parks, WildernessFoundation Africa, • Eastern Cape Parks and Tourism Agency

Private Sector



GEF Focal AreaBiodiversity

TaxonomyMainstreaming, Tourism, Biodiversity, Focal Areas, Protected Areas and Landscapes, Terrestrial Protected Areas, Community Based Natural Resource Mngt,Productive Landscapes, Community Based Organization, Gender Mainstreaming, Sex-disaggregated indicators, Beneficiaries, Gender Equality, Participation andleadership, Learning, Indicators to measure change, Adaptive management, Theory of change, Financial and Accounting, Species, Influencing models, Civil Society,Communications, Stakeholders, Gender results areas, Capacity, Knowledge and Research, Conservation Finance, Threatened Species, Illegal Wildlife Trade,Demonstrate innovative approache, Deploy innovative financial instruments, Private Sector, Project Reflow, Capital providers, Non-Grant Pilot, Behavior change,Awareness Raising, Strategic Communications, Public Campaigns, Type of Engagement, Consultation, Partnership, Participation, Information Dissemination, Non-Governmental Organization, Capacity Development, Knowledge Generation, Workshop, Innovation

Rio MarkersClimate Change MitigationClimate Change Mitigation 0

Climate Change AdaptationClimate Change Adaptation 0

Duration60 In Months

Agency Fee($)1,238,532

Submission Date3/17/2020



A. Indicative Focal/Non-Focal Area Elements

Programming Directions Trust Fund GEF Amount($) Co-Fin Amount($)

BD-1-2a GET 13,761,468 178,500,000

Total Project Cost ($) 13,761,468 178,500,000



B. Indicative Project description summary

Project Component Financing Type Trust Fund GEF Amount($) Co-Fin Amount($)

Improved Rhino Conservation Management Investment GET 13,761,468 177,100,000

Sub Total ($) 13,761,468 177,100,000

Project Management Cost (PMC)

GET 1,400,000

Sub Total($) 0 1,400,000

Total Project Cost($) 13,761,468 178,500,000

Project Objective

To create an outcome-driven investment to channel private sector funds to increase black rhino populations in target protected areas in South Africa.

Project Outcomes

Critically endangered black rhino population in target sites increased

New instrument for conservation finance demonstrated



C. Indicative sources of Co-financing for the Project by name and by type

Sources of Co-financing Name of Co-financier Type of Co-financing Investment Mobilized Amount($)

Private Sector private investors Equity Investment mobilized 150,000,000

Private Sector private investors Equity Investment mobilized 13,000,000

Government SanParks In-kind Recurrent expenditures 6,300,000

Government Eastern Cape Parks and Tourism Agency In-kind Recurrent expenditures 9,200,000

Total Project Cost($) 178,500,000

Describe how any "Investment Mobilized" was identifiedThe World Bank will issue a $150m SDG bond led by an investment bank and use proceeds for general sustainable development purposes. The private investorsagree upfront to forego any fixed coupon from the bond and this c. $13m (amount TBD depending on market rates) is paid to the project. It is expected thatadditional philanthropic grant capital would be paid to the project in parallel but this is not included here as sources and amounts are unconfirmed.



D. Indicative Trust Fund Resources Requested by Agency(ies), Country(ies), Focal Area and the Programming of Funds

Agency Trust Fund Country Focal Area Programming of Funds Amount($) Fee($) Total($)

World Bank GET South Africa Biodiversity NGI 13,761,468 1,238,532 15,000,000

Total GEF Resources($) 13,761,468 1,238,532 15,000,000



E. Project Preparation Grant (PPG)

Agency Trust Fund Country Focal Area Programming of Funds Amount($) Fee($) Total($)

Total Project Costs($) 0 0 0

PPG Required

PPG Amount ($) PPG Agency Fee ($)



Core Indicators

Indicator 1 Terrestrial protected areas created or under improved management for conservation and sustainable use

Ha (Expected at PIF)Ha (Expected at CEOEndorsement) Ha (Achieved at MTR) Ha (Achieved at TE)

153,141.00 0.00 0.00 0.00

Indicator 1.1 Terrestrial Protected Areas Newly created

Ha (Expected at PIF)Ha (Expected at CEOEndorsement) Total Ha (Achieved at MTR) Total Ha (Achieved at TE)

0.00 0.00 0.00 0.00

Name of theProtected Area WDPA ID IUCN Category

Total Ha(Expected atPIF)

Total Ha(Expected at CEOEndorsement)

Total Ha(Achieved atMTR)

Total Ha(Achieved at TE)

Indicator 1.2 Terrestrial Protected Areas Under improved Management effectiveness



Ha (Expected at PIF)Ha (Expected at CEOEndorsement) Total Ha (Achieved at MTR) Total Ha (Achieved at TE)

153,141.00 0.00 0.00 0.00

Name oftheProtectedArea WDPA ID

IUCNCategory

Ha(Expectedat PIF)

Ha (Expectedat CEOEndorsement)

Total Ha(Achievedat MTR)

Total Ha(Achievedat TE)

METT score(Baseline atCEOEndorsement)

METTscore(Achievedat MTR)

METTscore(Achievedat TE)

AddoElephantNationalPark

875 NationalPark

110,264.00

Great FishRiverNatureReserve

555571007and555563563

NationalPark

42,877.00

Indicator 11 Number of direct beneficiaries disaggregated by gender as co-benefit of GEF investment

Number (Expected atPIF)

Number (Expected at CEOEndorsement) Number (Achieved at MTR) Number (Achieved at TE)

Female 2,030



Male 2,142

Total 4172 0 0 0



Part II. Project Justification

1b. Project Map and Coordinates

Please provide geo-referenced information and map where the project interventions will take place.



2. StakeholdersSelect the stakeholders that have participated in consultations during the project identification phase:

Indigenous Peoples and Local Communities Yes

Civil Society Organizations Yes

Private Sector Entities Yes

If none of the above,please explain why:

In addition, provide indicative information on how stakeholders, including civil society and indigenous peoples, will be engaged in the project preparation, andtheir respective roles and means of engagement.

The product development phase for the Wildlife Conservation Bond has involved wide ranging stakeholder consultations: protected area agencies;conservation organisations; donor agencies; and private sector companies. The selection of the portfolio of sites involved the IUCN African Rhino Specialistgroup and advice received from a large number of conservation organizations working in rhino conservation, including the IUCN Species Survival Commission(SSC) African Rhino Specialist Group (AfRSG). The development of the Theories of Change was tested and received approval from the AfRSG and publicationin a peer-reviewed journal. Within the sites themselves, there has been considerable local community engagement. In terms of private sector entities, therehas been considerable engagement with potential risk investors, both institutions and individuals, to test the appetite for this type of financing mechanism,and from law firms to facilitate efficient structuring of the instrument.

In addition, the WCB team has been working with the management agencies of the two project sites, South African National Parks and Eastern Cape Parksand Tourism Agency respectively, to provide funding and technical assistance to ensure the sites are Investment Ready. In addition, the South AfricanDepartment of Environmental Affairs (DEA) has been engaged to ensure alignment with national strategies and objectives. In this vein, a DEA representativemay join one of the Black Rhino Impact Company (BRIC) governance committees.

For the Wildlife Conservation Bond implementation phase, the risk investors, outcome payers, sites, implementing agencies and service providers will includean array of conservation organizations, foundations, non-government organisations, corporates, development finance institutions, donor agencies and privatesector entities.

The project sites will use the Social Assessment of Protected Areas (SAPA) methodology as a best practice tool which follows Free and Prior InformedConsent (FPIC) standards. The SAPA assessment works with target communities to understand the positive and negative impacts from living alongside theprotected areas, and the perception of well-being. The assessment uses five broad themes to interrogate further: Rights, Participation, Transparency,Mitigation of Negative Impact, Benefit Sharing. Assessments are conducted in at baseline in Year 1 with feedback of results to the community. Thisparticipatory process supports development of a SAPA action plan to address identified needs through targeted interventions from Year 2 – Year 5.



3. Gender Equality and Women's Empowerment

Briefly include below any gender dimensions relevant to the project, and any plans to address gender in project design (e.g. gender analysis).

Addressing the gender gaps in rural communities around PAs can result in greater sustainability of natural resources and significant improvements in theirlivelihoods. According to Statistics South Africa (StatsSA), 57.2 percent of women were poor in 2015, somewhat more than men (53.7 percent). Womenheaded households are particularly affected by poverty. Women seem to be particularly disadvantaged in relation to land ownership; between 2005 and 2010,only 36 percent of the beneficiaries of the land redistribution and tenure program were women. In rural areas, women are more likely than men to be engagedonly in non-market activities (subsistence agriculture). Women are thus more likely than men to be doing unpaid economic work. The rate of gender-basedviolence is high.

The proposed project sites recognize the importance of gender inclusivity. The community assessments will include a detailed analysis on gender dynamics inthe community, how conservation benefits are distributed across gender and age sectors as well as governance roles for women. The independent fundmanager (IFM) will monitor and report on gender dimensions of project activities, and will provide detail on permanent and temporary employment at bothsites, and direct community benefits, disaggregated by sex. The IFM will have safeguarding policies to protect employees, sub-contractors, communitymembers and any persons engaged by the project; safeguarding policies will include policies around gender-based violence, sexual exploitation, anddiscrimination based on race, gender, sexuality, religion or any other group. Both management agencies have existing human resource policies around gender.

Does the project expect to include any gender-responsive measures to address gender gaps or promote gender equality and women empowerment? No

closing gender gaps in access to and control over natural resources;

improving women's participation and decision-making; and/or

generating socio-economic benefits or services for women.

Will the project’s results framework or logical framework include gender-sensitive indicators?

TBD



4. Private sector engagement

Will there be private sector engagement in the project?

Yes Please briefly explain the rationale behind your answer.

The basis of the Rhino Impact Bond is to deliver significant private sector engagement in conservation. Private sector entities will be involved in many aspectsof the bond including in the management of the bond, investing in the bond, and verifying the conservation outcomes. Through this wide-ranging engagement,understanding and capacity of conservation will be developed within these private sector entities about the opportunities for working further in theconservation sphere. We anticipate in this way the Rhino Impact Bond will have impact within the private sector far beyond the lifetime of the bond.



Part III: Approval/Endorsement By GEF Operational Focal Point(S) And Gef Agency(ies)

A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE GOVERNMENT(S): (Please attach the Operational Focal Point endorsement letterwith this template).

Name Position Ministry Date



ANNEX A:

Instructions. Please submit an indicative termsheet in this section. The NGI Program Call for Proposals provided a template in Annex A that can beused by the Agency. Agencies can use their own termsheets but must add sections on Currency Risk, Co-financing Ratio and Financial Additionalityas defined in the template provided in Annex A. Termsheets submitted should include sufficient details to allow a financial expert to understandand judge the financial viability of the proposed investments. Indicative terms and conditions should be used when specific details are not yetavailable. Please ensure that by copying the termsheet in the section of the PIF/PFD, the format allows reviewers to read the content.

GEF – INDICATIVE TERMSHEET

These indicative terms are intended to serve as a basis for discussion purposes only. They do not constitute a commitment or undertaking and are subject tochange during the structuring of the transaction and internal approvals by all parties. This document is not an offer or commitment to provide any funding nordoes it guarantee participation in the Project. This term sheet is confidential and shall not be distributed to any third parties without previous authorization.

Project/Program Title Wildlife Conservation Bond

Project/Program Number 10330

Project/Program Objective To create an outcome-driven structured bond thatchannels private sector funds to increase black rhino populations in target protected areas in SouthAfrica.

Country South Africa

Agency presenting the Project World Bank Group

Project Financing and financing instruments A. GEF: US$ 13.76 million (as reimbursable grant)

B. World Bank Group: US$ 150 million as debt (bond issuance)

C. NPV of bond coupon payments (“Private/institutional Investment”): ~US$ 13 million (transactionvalue is subject to change based on market rates)

D. Additional co-financing as reimbursable grants:TBD



Total Project Financing (Investment Mobilized): US$ 163 million

Additional Financing In-kind:

E. SanParks: US$ 6.3m (in kind)

F. Eastern Cape Parks and Tourism Agency: US$9.2m (in kind)

US$ 178.50

Fees GEF fees to Agency: US$ 1.24 million

Currency of the Financing USD

Currency risk The transaction will be in USD.

Co-financing ratio For the Project Financing, every GEF USD1 mobilizes approximately US$ 10.8 in Investment Mobilized

Financial additionality of GEF resources The Wildlife Conservation Bond, tests an innovative model for conservation financing. The scale of the bond issuance (US$150 million) will allow for capital markets investors to participate in a sectornot historically considered for emerging marketsdebt instruments. Without the GEF funding, the structured note would not have a source for the Conservation Success Payment, which is required to achieve the risk/return profile of bondholders.

Structured Bond The World Bank will issue a US$150 million IBRDbond (TBC) and use proceeds for the World Bank’s general sustainable development (SDG) investments. The Bondholders agree to forego all WBGbond coupon payments in favor of financing Rhino conservation activities in two project sites of South Africa, the “Conservation Investments”.



In exchange of foregoing WBG coupon payments,bondholders are entitled to receive a Conservation Success Payment at Bond Maturity Date whichwill be a function of rhino population growth. TheConservation Success Payment will be capped onthe upside at [1.83%] per annum[1].

At Maturity Date, the payout of the bond to the bondholders will be the sum of the Bond Principal and Success Payment.

Terms and conditions for the Bond For the Wildlife Conservation Bond:

(a) Principal Amount: US$ 150 million

(b) Term: 5 years

(c) Issuance Date: TB

(d) Maturity Date: [Issuance Date+ 5 years]

(e) Principal amortization schedule: bullet

(f) Principal redemption: at par

Bondholders are entitled to receive at maturity, the sum of the WBG Bond Principal and a conservation success payment (as defined below). The Bond Principal amount will be paid by the WBG, whilethe conservation success payment will be paid using GEF NGI funds. WBG coupons foregone by investors to finance Conservation Investments will be determined as follows:

Fixed Rate, payable on [four] interest payment dates in the following amounts [US$2A] on the Issuance Date and [US$ A] on each subsequent InterestPayment Date.

Where A is [the coupon amount].

and where Interest Payment Dates: Issuance Dateand annual anniversary thereof in 2021, 2022 and2023.



The World Bank will enter into a swap contract with an approved counterparty. Under that swap:

(1) World Bank will pay the Counterparty semi-annually a floating amount in US$ at a rate equivalent to the rate it would pay on other structured note issuances as of the execution date; and

(2) In exchange for The WB payments, the counterparty will pay the World Bank four fixed amounts in US$ as follows - (a) 2A on the issue date ofthe bonds and (b) A on each anniversary of the issue date in 2021, 2022 and 2023.

The two sides of this swap are entirely market dependent, so spreads and amounts will change until trade is executed.

Conservation Success Payment The Conservation Success Payment will be determined as a function of Rhino Population Growth and paid at Maturity Date only upon verification of rhino growth as described below.

The payment will be capped on the upside [at [1.83%] annualized rate or the maximum amount of reimbursable grant] and made to the Bondholders at Maturity Date. The final payout of the Conservation Success Payment will be defined during preparation phase, and will be confirmed at the time of issuance to reflect market conditions.

The rhino population growth is calculated as the compound annual growth rate (CAGR) of the totalRhino introductions subtracted from the end abundance[2].

The annualized coupon rate will be an exact calculation based on the average annual growth rate ofthe rhino population over the 5-year period.



The CAGR formula is as follows:

� is abundance estimate

at the end of the 5-year investment. � is the beginning abundance estimate, is the total intr

oductions during investment, and is the to

tal removals during investment

The source of the financing for the ConservationSuccess payment is the GEF [and additional source - TBC reimbursable grant].

See conservation success payment illustrative example in table below.

Observation Date to define Rhino Growth Rate Year 5 of project (2025 on anniversary of bond issuance)[3]

Methodology for Observation The rhino estimate will be calculated and reportedannually by the two executing agencies. The calculation agents will be SANParks for Addo ElephantNational Park and EPTCA for Great Fish River Nature Reserve. Calculations will be made at years 0,1, 2, 3, 4, 5. Independent third-party verification ofblack rhino growth rate will be conducted at Year0, Year 2, and Year 5 on anniversary of bond issuance. The site level monitoring is a continuous process, while the independent evaluation observationdate for abundance estimation is a single calendar year.

Third Party Verifier A competitive bid will be used to select an independent verifier.

Conservation Investment US$ 13 million or the equivalent in local currency[4] of WBG Bond Coupons disbursed in four installments as defined in the Swap of the Terms and C

5

0



ments as defined in the Swap of the Terms and Conditions of the Bond section.

The Conservation Investment will be disbursed bythe WBG to a Special Purpose Vehicle establishedwith the sole goal of managing the Conservation Investment. The SPV will be managed by an Independent Fund manager (IFM).

Conservation Investment dates Issuance date +5 business days, and annual anniversaries thereof until 2023 (included).

IFM Independent fund manager that will serve as the financial intermediary and investment committee to finance exclusively conservation projects of Black Rhinos in two parks of South Africa as definedin the project documents. SanParks and ECPTA will execute the project activities on the ground thatwill follow an agreed-upon theory of change and strategic plan. The IFM will be contracted by the WBG. The IFM will hold bilateral agreements with the SA agencies for performance of contract.

IFM /Servicer The IFM will be selected during project preparation phase and following a due diligence process.

Use of proceeds - The use of proceeds for the Principal Amount of the WBG Bond will be for its general sustainable development (SDG) purposes.

- The use of proceeds for Conservation Investment generated through the foregone bond coupons will be disbursed to the IFM who will fund conservation activities that will be executed by the South African agencies of SanParksand ECPTA.

- The IFM will be guided by an investment co



mmittee and will channel funds to support enhanced conservation management efforts at the two SA protected areas

- Disbursed amounts to SanParks/WFA/ECPTA will be solely used to execute the site-specific strategic plans as defined in the project documents (see scope of work, budget, and theory of change included in the project document).

Principal Agreements of the Offering · SPV - IFM agreements

· Verification agent

· IFM – SANParks/IFM – EPTCA bilateral grantagreements

· IBRD prospectus

· Arrangements with the Fund Manager will bemade by WBG. Third-party verifiers will be hired by the GEF Agency. WBG IPF policies and procedures will be followed as with other standard IPF projects.

Tentative Schedule for Conservation Success Payments (Illustrative Example)*



Average Annual Growth Rate of Rhino Population

Over 5-Year Period

Annualized Coupon

rate

Conservation Success Payment

(GEF NGI)

IBRD GEF IA Fee

Total

(GEF NGI Funds)

-10.00% 0% US$ 0 USD 1,238,532

USD 1,238,532

(expected decline with status quo) -3.7%

0% US$ 0 USD 1,238,532

USD 1,238,532

0% 0% US$ 0 US$ 1,238,532

US$ 1,238,532

1% 0.50% US$ 3,750,000 US$ 1,238,532

US$ 4,988,532

2% 1% US$ 7,500,000 US$ 1,238,532

US$ 8,738,532

3% 1.50% US$ 11,250,000 US$ 1,238,532

US$ 12,488,532

3.67% 1.83% US$ 13,761,468 US$ 1,238,532

US$ 15,000,000

* If growth is equal to or less than 0%, no conservation success payment will be made. A conservation success payment (with GEF NGI funds) will only bemade if independently verified average annual growth rate of rhino population is between 0% and 3.67%. The conservation success payment is tied to specificrhino population growth rates achieved. For example, a rhino growth rate of 1.28% equals an annualized coupon rate of 0.64%. On US$150m issuance over 5years equals US$4.8 million conservation success payment using GEF NGI funds.

[1] To be confirmed and dependent on whether an additional outcome payer(s) are secured for this project. The upside potential conservation successpayment may be revised and will be confirmed during project preparation.

[2] Rhino introductions is defined as a rhino that has been translocated to the site. Abundance refers to the rhino population estimated at a specific timeperiod (excludes introductions and removals for rhinos that were poached, non-poaching mortality, not found through monitoring efforts, or translocated outof site).



[3] The rhino population growth estimates will be reported annually (at years 0, 1, 2, 3, 4, 5); this data will be independently verified at T0, T2, T5.

[4] There is a low currency risk that will reduce investment amount in local currency. Rather as per market implied forward f/x rates the USD is expected tostrengthen against the SA Rand which would allow for additional purchasing power for activities at the two SA project sites. Foreign exchange swaps project aZAR FX to USD forward rates of 19.43 (12/1/2020), 20.40 (12/1/2021), 21.73 (12/1/2022), and 23.27 (12/1/2023).

ANNEX B:

Instructions. Please submit a reflows table as provided in Annex B of the NGI Program Call for Proposals. Any financial returns/gains/interestsearned on non-grant instruments, will be transferred to the GEF Trust Fund as noted in the Guidelines on the Project and Program Cycle Policy.Partner Agencies will be required to comply with the reflows procedures established in their respective Financial Procedures Agreement with theGEF Trustee.

Item Data Item DataGEF Project Number Estimated Agency Board approval date November 2020Investment type description Contingent success paymentExpected date for start of investment January 1, 2021Amount of investment (USD GEF funds) US$ 13.76 millionAmount of investment (USD co-financing) US$ 163 millionEstimated interest rate/return N/AMaturity N/AEstimated reflow schedule GEF resources will be held until year 5 of the project and will only b

e paid out (single success payment) if there is verified growth in the rhino population after five years. In the case of negative or zero growth, GEF funds will be returned in full. GEF resources will be paidout for growth of 1% or more up to the total GEF funding amount of$13.76 million. Any unused GEF resources (expected if average annual growth rate of rhino population over the 5-year period is less than ~3.64%) would be returned to the GEF Trust Fund. See illustrative example in Annex A for an indication of potential GEF paymentsbased on rhino growth rates.

Repayment method description GEF funds will be deployed as a contingent success payment (grant) and will only be repaid if the success threshold of est 3.64% rhino growth is not reached at the close of the 5 year project.

Frequency of reflow payments One time at year 5 of the projectFirst repayment date January 2026 (only if rhino growth rate below 3.64%)First repayment amount Will vary between 0 and $13.76m based on rhino growth rateFinal repayment date N/AFinal repayment amount N/ATotal principal amount to be paid- reflowed to the GEF Trust Fund Between $0 and $13.76m based on rhino growth rateTotal interest/earnings amount to be paid-reflowed to the GEF Trust Fund

N/A



ANNEX C:

The GEF Agency submitting the PIF or PFD is required to respond to the questions in Annex C of the NGI Program Call for proposals in order todemonstrate its capacity and eligibility to administer NGI resources as established in the Guidelines on the Project and Program Cycle Policy,GEF/C.52/Inf.06/Rev.01, June 9, 2017 (Annex 5).

Annex C: Partner Agency Eligibility to administer Concessional Finance – World Bank

The GEF Agency submitting the PIF or PFD will demonstrate its capacity and eligibility to administer NGI resources as described below:

a) Ability to accept financial returns and transfer from the GEF Agency to the GEF Trust Fund;

The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It consists of five institutions with a commoncommitment to reducing poverty, increasing shared

prosperity, and promoting sustainable growth and development. The International Bank for Reconstruction and Development (IBRD) lends to governments ofmiddle-income and creditworthy low-income countries. The International Development Association (IDA) provides financing on highly concessional terms togovernments of the poorest countries. The International Finance Corporation (IFC) provides loans, equity, and advisory services to stimulate private sectorinvestment in developing countries.

In FY 2019, IBRD and IDA committed $45.1 billion through loans, grants, and guarantees to 351 operations in about 100 countries. IBRD and IDA combinedfinancial returns in FY 19 (difference between gross and net disbursements) totaled $15.42 billion.

Section 7.1 of the financial procedures memorandum agreed between the International Bank for Reconstruction and Development and the GEF, dated August15, 2016, describes the commitment of the Bank to return reflows to the GEF trust fund:

If any GEF Trust Fund funds transferred to the Bank/IA for GEF Projects are used to provide financing, which generates any reflow of funds, and such reflow offunds are required to be returned to the GEF Trust Fund pursuant to the applicable policies and procedures of the GEF, the Bank/IA will credit and hold thefunds in

Bank/IA/GEF Trust Fund (following their receipt by the Bank/IA) until the Trustee requests the Bank/IA to return them to such account as the Trustee maydesignate. The Bank/IA will maintain a record of any such reflow of funds and report them to the Trustee pursuant to Section 12.2.(e) below.



b) Ability to monitor compliance with non-grant instrument repayment terms;

The World Bank Group Financing and Accounting Trust Funds and Loan Operations department supports an appropriate fiduciary control framework for Banklending and donor funds. It performs several key financial operation activities related to: loan origination, compliance, disbursements, accounting, andanalytics for IBRD/IDA and Trust Funds.

c) Capacity to track financial returns (semester billing and receiving) not only within its normal lending operations, but also for transactions across trust funds;

As noted above, the World Bank supports an appropriate fiduciary control framework for Bank lending and donor funds. The World Bank maintains separaterecords and ledger accounts in respect of the GEF Funds.

d) Commitment to transfer reflows twice a year to the GEF Trust Fund;

As per section 12.2 para (e) of the financial procedures memorandum, the World Bank currently reports to the Trustee within thirty (30) days after the end ofeach quarter of the GEF Fiscal Year (or such other frequency agreed with the Trustee), the dates and amounts of reflows of funds received by the Bank/lAfrom GEF Projects, for the period reported, broken down by each GEF Project.

And, in case of NGI for private sector beneficiaries:

e) Track-record of repaid principal and financial returns from private sector beneficiaries to the GEF Agency.

N/A

And, in case of concessional finance for public sector recipients:

f) Track-record of lending or financing arrangements with public sector recipients;

Since its establishment 75 years ago, the World Bank has been lending to member countries to support their development aspirations. As noted above, in FY19 alone the World Bank committed $45.1 billion to operations led by public sector recipients.



g) Established relationship with the beneficiary countries’ Ministry of Finance or equivalent.

The Ministry of Finance is the World Bank’s main interlocutor in member countries. The World Bank carries out in-depth country engagement to with eligiblerecipient member countries in which the Ministry of Finance plays the lead role.

Wildlife Conservation Bond · 2020-05-06 · Wildlife Conservation Bond Countries South Africa...

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Transcript of Wildlife Conservation Bond · 2020-05-06 · Wildlife Conservation Bond Countries South Africa...