Degraded Lands and Sustainable Land Use Management

• Country: Brazil
• Summary: Degraded Lands and Sustainable Land Use Management
• BRT Ref No: 52718026
• Deadline: 13 May 2021
• Financier:
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
• Document Ref. No.: 1274515
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• Description:
• Expression of Interest are invited for Degraded Lands and Sustainable Land Use Management in Brazil. REQUEST FOR EXPRESSION OF INTEREST FOR SELECTION # 1274515 This Request for Expression of Interest is for a Firm Selection. Please log in as a valid Firm User if you wish to express interest in this selection. Selection Information Assignment Title DEGRADED LANDS AND SUSTAINABLE LAND USE MANAGEMENT IN BRAZIL Publication Date 29-Apr-2021 Expression of Interest Deadline 13-May-2021 at 11:59:59 PM (Eastern Time - Washington D.C.) Language of Notice English Selection Notice Assignment Country · BR - Brazil Funding Sources The World Bank Group intends to finance the assignment/services under: · BB - BANK BUDGET · TF0B3285 - FMTAAS Upstream - LAC - Brazil Individual/Firm The consultant will be a firm. Assignment Description SELECTION FOR CONSULTANTS BY THE WORLD BANK GROUP REQUEST FOR EXPRESSIONS OF INTEREST Electronic Submissions through World Bank Group eConsultant2 https://wbgeconsult2.worldbank.org/wbgec/index.html ASSIGNMENT OVERVIEW Assignment Title: 1274515 - DEGRADED LANDS AND SUSTAINABLE LAND USE MANAGEMENT IN BRAZIL Assignment Countries: - Brazil ASSIGNMENT DESCRIPTION IFC is seeking a firm or consultant to further develop its knowledge of the sector, identify potential financial products and solutions, and to enable the development of relationships with potential IFC clients. FUNDING SOURCE The World Bank Group intends to finance the assignment / services described below under the following: - BANK BUDGET - FMTAAS Upstream - LAC - Brazil ELIGIBILITY Eligibility restrictions apply: [Please type list of restrictions] INDIVIDUAL / FIRM PROFILE The consultant will be a firm. SUBMISSION REQUIREMENTS The World Bank Group now invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Consultants may associate to enhance their qualifications. Interested firms are hereby invited to submit expressions of interest. Expressions of Interest should be submitted, in English, electronically through World Bank Group eConsultant2 (https://wbgeconsult2.worldbank.org/wbgec/index.html) NOTES Following this invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding. Only those firms which have been shortlisted will receive notification. No debrief will be provided to firms which have not been shortlisted. Attachments · Optional TOR File Qualification Criteria · 1. Provide information showing that they are qualified in the field of the assignment. * · 2. Provide information on the technical and managerial capabilities of the firm. * · 3. Provide information on their core business and years in business. * · 4. Provide information on the qualifications of key staff. * WORLD BANK GROUP - INTERNATIONAL FINANCE CORPORATION TERMS OF REFERENCE DEGRADED LANDS AND SUSTAINABLE LAND USE MANAGEMENT IN BRAZIL - FINANCIAL INSTRUMENTS A. PROJECT BACKGROUND AND OBJECTIVES The use of land and agricultural inputs in Brazil lags far behind its optimal point. The productivity of pasturelands (land used primarily for cattle grazing) is low, in terms of cattle heads per hectare and soil degradation (up to 70% of Brazilian pasturelands are degraded).1 In Brazil, there are approximately 180 million hectares (mn ha) used for pastures and approximately 66 million for agriculture. Out of the 180 mn ha of pasture, Embrapa (Brazilian Agricultural Research Corporation) estimates that approximately 130mn ha are degraded (90mn ha of which are severely degraded). This means that the soil-s capacity to provide nutrients and water to plants is limited, either due to its chemical composition or lack of structure. An increase in use and productivity of Brazilian pastures can release huge areas for agriculture and pastureland and, consequently, decrease pressure for deforestation. Furthermore, inputs used in agricultural land (land used primarily for crop production), such as pesticides, are generally not deployed at their optimal efficiency level, which can result in higher production costs, increased reputational risks, and chemical contamination of land and water. The International Finance Corporation (IFC) works with companies to foster responsible business practices that transform markets and improve people's lives. Specifically, in Brazil, IFC-s goals in the Agribusiness sectors are to: A. Promote climate smart agriculture and livestock production (production intensification and recovery of degraded areas) & reforestation B. Support the development of competitive and sustainable food and forestry supply chains C. Reduce financial market distortions to improve credit availability and allocation In this context, the IFC MAS LAC Upstream team conceived the Degraded Lands and Sustainable Land Use Management in Brazil project (Degraded Lands). The goal of this project is to increase private investments in sustainable land use in Brazil and reduce deforestation pressures, including legal deforestation, especially through the recovery of degraded areas. IFC Upstream focuses on the development of new businesses by unlocking investment potential, engaging with potential clients at early stages in project development, and closing potential gaps in the institutions- knowledge base to enable the environment for IFC to invest in the private sector with an average ticket size of $30M. To successfully achieve this project-s goal, IFC is seeking a firm or consultant to further develop its knowledge of the sector, identify potential financial products and solutions, and to enable the development of relationships with potential IFC clients. 1 Source: EMBRAPA Specifically, the goal of this consultancy is to identify, ideate, and recommend existing or innovative funding sources and products that incentivize investors and producers to expand into and rehabilitate degraded areas in the Amazon and Cerrado biomes of Brazil, following Deforestation and ConversionFree (DCF) practices. B. SCOPE OF WORK A. Desk research on existing funding sources and financial instruments: i. Identification and analysis of existing funding sources and financial instruments that could incentivize the recovery of degraded areas in Brazil at scale, including solutions not generally available or not available at scale in Brazil (e.g. carbon markets, social impact bonds, Green Loans) ii. Estimation of the impact their adoption would have on producers and investors- Return on Investment (ROI), cashflows, and/or cost of capital iii. Analysis of benefits and risks associated with using these sources and instruments at scale, including a feasibility analysis. Recommend which source(s) and instrument(s) would be most suitable at different ranges of impact in return (ROI, cashflows, and/or cost of capital), considering, at least, the potential scale of the solution and difficulty in implementation iv. When analyzing payments for environmental services and carbon markets in Brazil, consider how it would fit with Measurement, Reporting, and Verification (MRV) standards, what data collection/reporting tools would need to be created, and assess the volume of credits that can be generated per year for tokenization, and monetization v. Analysis of obstacles, if any, to using the identified funding sources to bridge the gap identified above at scale vi. Taking into account that IFC is willing to attract commercial private sector investment to restoration and therefore “maximize finance for development”, estimate the minimum amount of blended finance, de-risking, or other types of guarantees that would be needed to make land restoration projects viable economically B. Run ideation sessions, internally and with relevant stakeholders, on innovative financial instruments that could close the gap identified above through a combination of interviews, desk research, workshops, and other suggested approaches i. Identification of stakeholders that could provide funding or support new financial instruments (e.g. multilaterals, government entities, donors, sovereign funds, preservation funds, financial institutions). Review instruments that were developed in other ideation workshops (publicly or provided by IFC), such as the Lab for Climate Finance and Coalizão Brasil Clima Florestas ii. Conduct interviews with relevant stakeholders to understand the amount of funding they could provide, the degree and conditions for supporting sustainable agriculture and rehabilitation of degraded areas, the value proposition to each of them in providing such support, and their readiness to do so iii. Conduct ideation and design sessions with relevant stakeholders to identify financial instruments that best satisfy the needs of all parties involved, including, but not limited to, producers, off takers, financial institutions (FIs), governments, and, if possible, producers that are already involved with land regeneration projects iv. Conduct ideation on structuring and domiciling of dedicated fund(s); and/or lending products that IFC could support through FIs for SME-s in the sector / Climate Smart Agriculture (CSA) v. Analyze how the recommended products and/or instruments could have a cascading effect on other links in the supply chain (or in the
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