Term of Reference (the “TOR”)
For Consulting Services for a Comparative and Case Study of Green Credit Business Model of Kfw and Some Commercial Banks in Germany
The Export-Import Bank of China (China Eximbank) is currently implementing the GEF (Global Environmental Fund) for technical assistance to World Bank Energy Efficiency Financing Project. In accordance with the related Plan under the Project, China Eximbank will hire a consulting company to provide its energy saving team for a reference of the practice of similar oversea banking institutions with consulting services for a comparative study of Green Credit business model of Kfw and some other main commercial banks in Germany with a view to improve its practice of Green Credit business of China Eximbank .
A: Background:
1.About energy saving financing projects from the World Bank(CHEEF)
The CHEEF Project financing arrangement consists of USD 200 million of the World Bank loan and China Eximbank loan in certain percentage amount for eligible domestic projects selected and lent by China Eximbank in commercial terms. Since 2008, 12 loan agreements have been signed with a total amount about RMB 2 billion for the utilization of surplus heat and electricity in the sector of iron and steel, chemical, glass industries and the renovation of the boilers. Targeted clients for the loan include large or medium sized industrial enterprises and EPC companies. At present, China Eximbank is planning to make breakthrough in the field of energy saving in building industry (including solar energy in the roof of the house). Meanwhile, in order to facilitate the project’s smooth implementation, GEF offers China Eximbank a five-year grant for its capacity building in the EE field,
2. About the GEF matching Grant fund project for energy saving financing project from
the World Bank
The Global Environmental Fund has provided a matching grant fund for the capacity building in energy saving field for China Eximbank in order to the smoothly implement the Project with a view to improve the bank’s managerial and professional expertise on CHEEF Project and gain experiences in exploring sustainable energy efficiency (“EE”) lending business.
3.Mission
Beside providing the EE loan to China Eximbank, the World Bank hopes that China Eximbank can learn the green credit experiences of the similar banking institutions in developed countries. At the same time, China Eximbank is willing to learn and compare the advanced experience and practices of other oversea banks in this field. Therefore, China Eximbank is to employ an external and experienced consulting company to provide China Eximbank with consulting services for understanding the business practice of green credit undertaken by Kfw and other main commercial banks in Germany (hereafter referred to Commercial banks).The purpose of the consulting service is to enable China Eximbank to learn and refer to the experience of German banking institutions in order to upgrade comprehensively the practice of conducting the similar business to a higher level when China Eximbank is to set up its own visionary and sustainable green credit system.
China Eximbank plans to hire a consulting company to conduct the relevant work according to the above-mentioned mission.
B: Eligibility of the consultants
1. The legally registered enterprise, public institution and body corporate founded for at least two years and with good credibility.
2. Having a solid cooperate foundation with Kfw and major German commercial banks with the ability to procure relevant basic information regarding this consultation.
3. Familiar with the general situation about German banking industry, knowing of the relative green credit policy in Germany; Priority will be given to those who have a better understanding of business operation and institutional structure of Kfw.
4. Having successfully accomplished cases which were relevant or similar to this consultation, especially those who achieved some consulting research outcomes in bank credits and risk managements etc..
5. A professional research group with a well-round management system which could ensure the high-quality accomplishment of this consultation.
6. Having a knowledge of Chinese banking industry and China Eximbank.
C: Objective and Assignment
In line with the requirements of China Eximbank, this consulting service has to achieve the following objectives:
1.A full introduction of the credit system of Kfw and its green credit business system (include but not limited to the product design of green credit, its marketing promotion, approval procedure, operational procedure, post-credit management and its risk control measures and its performance evaluation system etc.)
2.To select 2 or 3 German commercial banks and make a comparison with Kfw for the item 1, comparing their similarities and differences, their advantages and disadvantages.
3.For supplementing the above comparsion, select one industrial energy saving, two building industry projects (including a solar energy for the house roof), a wind energy project and a solar energy project to make case studies.
4.Make suggestions and proposals to China Eximbank to conduct a green credit business.
D: Deadline for submitting consulting service schedule, terms of payment, supervision and management
1.Deadline
Submit an appropriate and acceptable working schedule to China EXIM Bank after signing the consulting contract, but no later than November 30th, 2014.
2.Contract and payments
The World Bank standard contract will be adopted. The execution period of this contract is four months, with an amount estimated for less than USD 60,000. The terms of payment are as follows：
a.After signing the contract, there will be an advance payment for 40% of the total amount;
b.The progress payment is 50% of the total amount, which will be paid after the consultancies, submit the accomplishment draft;
c. The final payment, for 10% of the total amount, will be paid after the whole work has passed quality acceptance.
3.Supervision and management
While subject to the inspection of the World Bank, China Eximbank supervises the consultant’s work according to the contract.
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