Technical Assistance (TA)
PIDG TA plays a central role to enable PIDG to initiate multi-company programmes and initiatives that are not specific to a particular company, and which align with PIDG strategic objectives.
The PIDG TA Team manages grant funding to meet a range of needs associated with the infrastructure project development cycle, including the assessment of potential investment opportunities and building capacity of host country partners and local investors.
PIDG TA can also make up-front capital grants at financial close, through Viability Gap Funding (VGF), to support the construction phase of projects providing strong development impact.
The funding is designed to make an economically viable project financially viable, thereby, attracting private sector finance.
The aim of using VGF is, to deliver projects that are affordable and transformative which are replicable by other market participants. To be eligible for VGF grants, projects should be:
- located in DAC 1 and 2 Countries*
- have strong, demonstrable, development impact including, clear, strong positive impact on females or female-headed households and/or clear, strong, climate change mitigation benefits.
- a ‘first mover’ and developmentally important
- able to demonstrate that the VGF Grants does not exceed 20% of the project’s capital costs
InfraCredit – Nigeria
This project unlocked the potential in infrastructure financing in Nigeria.
GuarantCo provided a Callable Funding Facility of $50m
PIDG TA provided $1.2m in grants to cover feasibility costs and capital raising costs.
- Investment by Nigeria’s pension funds in infrastructure-linked bonds has been constrained by lack of precedents and insufficient credit quality to satisfy investors.
- A TA grant of USD178,000 was provided to GuarantCo to cover the costs of just over half of a feasibility study for the establishment of a credit enhancement facility in Nigeria.
- A TA grant of US$900,000 be made available to GuarantCo to cover approximately half of the seed capital required for setting up InfraCredit in partnership with NSIA.
- Since it was established, InfraCredit Nigeria has successfully issued its first guarantee supporting a ten-year NGN10bn corporate infrastructure bond, as well as its first 15-year corporate infrastructure green bond.
TA grants were approved in 2019 – and committed most TA funds to date.
The majority of these address upstream capacity issues both within a project and at a broader government/utility level, as well pre-feasibility work that is required for infrastructure projects.
* Exceptions to this rule may be considered.
**Exceptions to this rule may be considered.
27 Nov 2018
Sindicatum Renewable Energy lists INR and PHP Green Bonds
GuarantCo-guaranteed Green Bonds to finance renewable energy projects in India and the Philippines.