Peru: Publicprivate Partnerships Consultant

PERU: PUBLIC-PRIVATE PARTNERSHIPS CONSULTANT
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 web page.

GENERAL INFORMATION

- Duty Station: Lima, Peru
- Contract Duration: December 2024 to August 2025
- Estimated Workdays: 154 working days
- Consultant Level: Level 4 Total Fees: US$60,000
- Deliverable-based

PROJECT BACKGROUND

In Peru, progress in implementing climate policy has been slow, with greenhouse gas (GHG) emissions, excluding land use, land-use change, and forestry,
increasing by 90%, from 54 MtCO2eq in 1990 to 109 MtCO2eq in 2021. At the same time, Peru's economy and population are highly vulnerable to climate change, particularly water and food security, biodiversity loss, and ecosystem impacts.

In this context, the Peruvian government faces multiple challenges in addressing climate change, including limited institutional capacity to integrate environmental, social, and climate considerations into programmatic and financial planning, as well as in public debt instruments. Similarly, national financial institutions show insufficient capacity to manage climate, environmental, and social risks. These challenges impact the work of the Ministry of Economy and Finance (MEF), the Ministry of Environment (MINAM), the Superintendency of Banks, Insurance, and AFPs (SBS), the Superintendency of the Securities Market (SMV), and local financial institutions.

Similarly,
the lack of mechanisms to integrate climate change and environmental considerations into the National Public Investment System and the institutional framework regulating public-private collaboration mechanisms (Public-Private Partnerships or PPPs) in Peru affects planning to address the sustainable infrastructure gap—ensuring it is climate-smart—across various sectors at the central, regional, and local government levels.
This context highlights various challenges in achieving institutional capacity to efficiently and promptly take advantage of the facilities provided by international climate and environmental funds, such as the Green Climate Fund (GCF). As a result, efforts in climate action for adaptation and mitigation, fulfillment of sustainable development goals, and the resilience of the country's infrastructure are hindered, making it more vulnerable to the impacts of climate change and the degradation of ecosystems (and the ecosystem services they provide).


The GGGI Peru program aims to support the government in advancing climate and environmental financing efforts through a set of complementary Workstreams:

- Workstream 1: Strengthening the institutional capacity of the MEF, MINAM, SBS, and SMV to integrate environmental, social, and climate change considerations into public debt instruments, financial planning, and the supervision and regulation of financial markets.
- Workstream 2: Promoting the greening of Peru's financial markets by supporting various activities outlined in the Green Finance Roadmap and national strategies for mobilizing climate finance.
- Workstream 3: Including in the institutional framework that regulates investment projects and PPPs the necessary arrangements for developing climate-smart PPPs (sustainable, low-carbon, and climate-resilient).
- Workstream 4:
Accelerating access to resources and facilities offered by the GCF and other global environmental funds.

It is noted that Workstream 3 aims to support the Peruvian government in identifying a public-interest investment project that can be developed through public-private partnership (PPP) agreements. This project would serve as a flagship initiative to highlight the contribution of private financing towards achieving the country's goals for low-emission, climate-resilient development, incorporating environmental and social sustainability criteria throughout the entire investment cycle, including the formulation stage. To this end, this workstream includes activities to support the development of an intervention strategy, proposals for regulatory and methodological instruments, outreach processes, as well as a prioritization strategy to identify potential flagship projects.


OBJECTIVES OF THE ASSIGNMENT

(1) General Objectives

The consultant will formulate recommendations to implement the "Sustainability Principle" in the relevant PPP regulations, particularly for the development of low-carbon, climate-resilient, eco-efficient projects based on the use of clean energy, and that promote the circular economy, natural infrastructure, and green financing.
To achieve this, the consultant will consider the best international practices in the existing regulations governing PPPs to update the regulatory framework of the National System for the Promotion of Private Investment (SNPIP), which enshrines the "Sustainability Principle." Under this principle, projects developed within this system are planned, prioritized, designed, executed, operated,
and closed in a way that ensures sustainability in each of its four dimensions: (i) economic and financial, (ii) social, (iii) institutional, and (iv) environmental, considering climate resilience and the protection of the environment and natural resources. Additionally, these sustainability dimensions are considered an integrated and indivisible whole, applicable throughout the entire project life cycle (including the formulation stage).
Furthermore, the consultant will be responsible for identifying one or more infrastructure or public service investment projects that have the potential to be developed as pilots and that align with Peru's sustainable development goals, international best practices, and can be implemented through PPPs. In this regard,
this consultancy will focus on integrating sustainability criteria into the various aspects of the National System for Private Investment Promotion (SNPIP). Two critical aspects stand out, where the incorporation of sustainability criteria could contribute to improving the institutional framework that regulates the development of PPPs in Peru:

1. Criteria for selecting PPPs as the project implementation modality (Value for Money).
2. Necessary conditions for structuring projects with payment mechanisms conditioned on the availability and effective delivery of public services and public infrastructure.

(2) Specific Objectives

1. Analyze the state of the art at national and international levels (including best practices) regarding critical aspects to improve the development of PPPs in Peru
This includes identifying and applying best practices for the development of sustainable PPP projects (covering economic-financial, institutional, social,
and environmental dimensions), especially for projects that are low-carbon, climate-resilient, eco-efficient, based on clean energy use, and that promote the sustainable use of natural resources, circular economy, and green finance.
The topics to be analyzed in each of the two critical aspects identified for this consultancy are outlined below.

a. Criteria for selecting PPPs as the execution model for projects (Value for Money).

b. Necessary conditions for structuring projects with payment mechanisms conditioned upon the availability and effective provision of public services and public infrastructure.

2. To generate recommendations that effectively promote the integration of sustainability considerations and criteria into PPPs.
The recommendations should align with best international practices, policies, regulations, terms of reference, processes, PPP contracts, and local and international green financing instruments, particularly in methodological developments related to the selection of the project execution modality through PPPs and the structuring of projects through mechanisms conditioned on the effective availability of infrastructure.

3. Identify one or more pilot projects where the sustainable infrastructure approach can be implemented in PPPs.
This involves identifying one or more pilot projects that could be carried out using PPP schemes and establishing the basic framework for the climate-smart PPP project (key elements, scope, criteria).

4. Develop activities to strengthen capacities (workshops, conferences, etc.) for technical staff and decision-makers on international best practices for integrating sustainability considerations and criteria into the structuring of PPPs
The capacity-building activities should primarily focus on themes that contribute to promoting the development of climate-smart investment projects, which can be implemented through the PPP or Asset-based Project modality.

SCOPE OF WORK - DELIVERABLES

Activities / Deliverables:

Deliverable 1: Work plan (2 weeks)

- Formulation of the consultancy work plan, including a schedule for the submission of deliverables, the planning of in-person workshops for outreach (suggesting a list of participants for each workshop), as well as the identification of public and private stakeholders to be consulted during the consultancy.
- The work plan should include a draft list of documents, reports, studies, and regulatory instruments related to the scope of the consultancy, as well as the identification of suggested successful international experiences (at least five), including those from Latin America, as well as more developed economies with relevant experience in the implementation of Public-Private Partnerships (PPPs) (including Asset Projects), such as the United Kingdom, Canada, and Australia, which will be considered for the recommendations.
- The work plan should include the proposed methodology for Deliverables 2, 3, 4, 5, and 6, respectively.

Deliverable 2: Diagnosis and information collection (6 weeks)

- Review and analysis of existing information (studies, public policies, regulations, contracts, among others) related to the development of projects under the Public-Private Partnership (PPP) or Asset Projects modality. The Peruvian experience should be considered, along with national and international best practices related to:
- Criteria for Selecting PPPs as the Project Execution Modality (Value for Money): This includes the review of Value for Money evaluation methodologies (based on comparative experience and international best practices) for the selection of projects through the PPP modality, as compared to traditional public works. Both the application of quantitative methodologies (using tools such as the Public-Private Comparator - PPC) and qualitative methodologies (for example, by applying Eligibility Criteria) must be analyzed.

- Necessary Conditions for Structuring Projects with Mechanisms for Payments Linked to the Availability and Effective Provision of Public Services and Public Infrastructure: The aim is to identify and propose the necessary conditions for developing PPPs projects with payment mechanisms linked to the availability and effective provision of public services. This section should analyze the challenges involved in structuring bankable and sustainable PPP projects, developing a strategy through the analysis of critical variables, which include (but are not limited to): i) proper risk allocation, ii) financing schemes (syndicated loans, securitization of cash flows, guarantees, risk transfer, mixed financing, among others), iii) market depth in soles, iv) quality of the sponsors, among others.

- Review the available information and identify one or more pilot projects within any of the four specified sectors—transportation, housing & sanitation, education, and energy—that are currently in the Promotion Process, with the aim of implementing the Sustainability Principle and Best Practices derived from this consultancy.

- To achieve this, a report should be prepared that includes the implementation status of the selected projects, the stakeholders and parties involved, pending actions necessary to achieve the proposed objectives, and the estimated impacts (related to environmental components such as low-carbon, climate-resilient, eco-efficient projects that rely on clean energy, promote circular economy practices, and support green financing), along with any additional information relevant to the scope of this service.

- If an appropriate pilot project in the Promotion Process is not found, it is acceptable to evaluate one or more megaprojects with existing contracts to identify lessons learned and opportunities for integrating international best practices in PPPs development.

Deliverable 3: Building suggestions with relevant stakeholders (7 weeks)

- Organize at least three (3) face-to-face roundtables with members of the MEF, Proinversion, MINAM, Ministry of Transport and Communications (MTC), Ministry of Housing, Construction and Sanitation (MVCS), Ministry of Education (MINEDU) and other key public and private actors, investors and other stakeholders related to the promotion and implementation of PPPs (decision makers), to present international case studies and best practices of PPP projects implementing the key criteria and variables previously identified in Deliverable 2, for a minimum of two (2) hours each, with a view to discussing possible improvements applicable at the local level. The report of the roundtable should include at least the following: results and conclusions of the discussion, minutes of the meetings, presentation materials, and a gender-disaggregated list of participants in the proposal development process.
- Conduct at least five (5) in-depth interviews with national and international strategic actors involved in the formulation and implementation of PPP investment projects. These should include, inter alia, public and private sector stakeholders, multilateral banks and civil society organizations.
- Produce a report consolidating the recommendations of the key stakeholders - roundtables and stakeholder interviews - outlined above. This report should focus on recommendations for the implementation of the principle of sustainability in its four dimensions. Finally, the report should analyze the alignment of the previously identified recommendations with the best international practices or standards.

Deliverable 4: Proposed recommendations for integrating environmental, social, and climate change considerations (7 weeks)

- Propose strategies to implement the best practices identified in Deliverables 2 and 3 for the development of PPP projects that ensure the implementation of the "Sustainability Principle", including economic, financial, institutional, social and environmental aspects, for the development of low-carbon, climate-resilient, eco-efficient projects based on the use of clean energy and promoting the circular economy and green finance.
- Identify key criteria and indicators (differentiated by economic sector, if necessary) to ensure mainstreaming and appropriate monitoring of the implementation of the 'Sustainability Principle'. For that purpose, the analysis will include the construction and explanation of the indicator, how it will be measured, the sources to be used for its determination, who will be responsible for its measurement and the frequency of updating of the information used for the elaboration of the indicators.
- Develop the design of a sustainable PPP flagship project, incorporating the dimensions of the sustainability principle as outlined above.

Deliverable 5: Consultations and evaluation with key stakeholders (5 weeks)

- Conduct three (3) face-to-face roundtables of at least three (3) hours each with private sector operators, investors and multilateral development banks to gather views and comments on the key strategies, criteria and indicators and the design of a sustainable flagship PPP project identified in Deliverable 4.
- Produce one (1) consultation and feedback report on the views and comments of key stakeholders participating in the roundtables. The roundtable report will include at least: minutes of the meetings, presentation materials, outcomes (comments and responses) and the detailed list of participants during the consultation and evaluation process.

Deliverable 6: Capacity strengthening and climate-smart PPP project definition (5 weeks)

- Conduct three (3) face-to-face capacity building workshops for a minimum of forty (40) people, each lasting four (4) hours, for decision-makers and technical staff from MEF, MINAM, PROINVERSION, MTC, MVCS, MINEM and MINEDU, as well as private sector operators and investors, to ensure effective implementation of the recommendations.
- Pre- and post-capacity building workshop evaluation reports.
- Workshop reports, including workshop convening activities, minutes, presentation materials, outcomes and a detailed list of participants, during the capacity building process.

PAYMENT SCHEDULE

Please note that payments will be disbursed based on the successful completion (reviewed and approved by the project manager GGGI, an approval is granted once the corrections suggested in the review process are implemented) of the deliverables described above, according to the following table and the indicated information in the section called Scope of Work / Deliverables:

Deliverable

Description

% Billing

Deadline

D1

Work plan, including objectives, methodology, activities, roles of responsible persons, timeline, proposed list of participants, workshop needs, and draft list of policy documents and instruments related to the scope of the consultancy, including identification of suggested international experiences.
Preliminary list of policies, regulations, PPP guidelines and instruments to be reviewed.

20%

Two weeks upon contract signature

D2

Diagnostic report that systematizes information and findings on policies, legislation, contextual information, regulations, tender documents, contracts and international best practices related to climate in PPPs in Peru, considering international experiences.
Identification and analysis of key variables and their treatment to implement sustainability in its different dimensions in the two blocks of work, comprising
(i) Criteria for selecting PPPs as a project implementation modality.
(ii) Necessary conditions for structuring projects with payment mechanisms linked to the availability and effective provision of public services and public infrastructure.
Report on the identification of one or more pilot projects in one of the four (4) sectors mentioned above - transport, housing & sanitation, education and energy - to implement the principle of sustainability. The report shall include a justification of the criteria used to identify the projects. An information sheet should be prepared for each project.

20%

Eight weeks upon contract signature.

D3 & D4

Systemize the results of the three (3) roundtables and expert interviews. The report should include recommendations for integrating the key criteria and variables previously identified in Deliverable 2 into Peruvian policies, plans, strategies, regulations, processes, PPP contracts and green/climate finance instruments.
Based on the results presented in Deliverables 2 and 3, develop at least three policy proposals to integrate best practices and the sustainability principle.
Report with proposed criteria and indicators to ensure the integration of the SCP, as detailed in Deliverable 4.

Report on the conceptual design of a flagship PPP project with a sustainable approach.

30%

Twenty-two weeks upon contract signature

D5 & D6

Report that consolidate and systematize the opinions, comments and feedback issued during the three (3) face-to-face roundtables, on the recommendations proposed in Deliverable 4.

Ex-ante evaluation reports, results achieved and ex-post evaluation by participants on the effective implementation of the recommendations.
Reports of capacity building workshops (at least 3) according to the previous section.

30%

Thirty-two weeks upon contract signature

COORDINATION AND COMPLIANCE

- All technical papers, reports, regulation drafts and other documents prepared from the start to the end of the assignment shall be revised and approved by the project manager (GGGI), The dates of the review periods must be detailed within the workplan, and a power point presentation with the key information for each final deliverable.
- All relevant technical papers, reports, and other documents prepared from the start to the end of the assignment shall be attached to the final Report and must be included in a digital repository.
- The consultant will make the best use of both primary and secondary sources of information to develop activities defined under the contract objective.
- The present consultancy is planned to be carried out in 160 days over a period of 32 weeks, which implies 100% dedication during this period.
- The consultant will work closely with GGGI staff to ensure the goals of this consultancy, and he/she will also be responsible for reporting their progress to the GGGI assigned supervisor.

EXPERTISE REQUIRED

- Master's degree in economics, business, finance, and/or other related fields.
- At least 5 (preferably 8) years of experience to makes of experience in public-private partnerships, with a strong focus on incorporating environmental, social and climate considerations. Experience in Peru or other Latin American countries is desirable
- Experience in developing specific and applicable policies or regulatory proposals, structuring and executing project finance schemes, loans, and structured finance transactions, with emphasis on the integration of environmental, social, and climate change factors in PPP. Experience in Peru or other Latin American countries is desirable
- Experience in designing and implementing effective capacity-building programs, especially for decision-makers and technical staff in the field of public-private partnerships.
- Knowledge of relevant local and international regulations in the legal, environmental, and public-private partnership fields, as well as a review of international best practices.
- Familiarity with Peru´s public policies, legal regulations, and climate change processes linked to public-private partnerships will be highly valued.
- Fluency in Spanish and English.

KNOWLEDGE AND SKILLS

- Excellent communication and interpersonal skills, with the ability to effectively engage with stakeholders at all levels.
- Deep knowledge of relevant Peruvian laws and regulations, strong analytical skills, and the ability to translate complex legal requirements into practical actions.
- Skills in working with multidisciplinary groups.
- Negotiation, promotion, and conflict resolution skills.
- Syntaxy and redaction proficiency.

ADMINISTRATIVE INFORMATION

- Request: GGGI Application form, cover letter and CV must be sent in English.
- Selection method/process: competitive.
- Timeline of selection: 15 days.
- Date to close is Korean Standard Time (KST). Applications submitted after the deadline will not be considered Application. Cover Letter, and CV must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment.

Child protection – GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGI's Child Protection Policy is written in accordance with the Convention on the Rights of the Child.