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Colombia: Consultant to design the vehicule for resource mobilization

Bogotá

  • Organization: GGGI - Global Green Growth Institute
  • Location: Bogotá
  • Grade: Consultancy - Consultant - Contractors Agreement
  • Occupational Groups:
    • External Relations, Partnerships and Resource mobilization
  • Closing Date: Closed

Colombia: Consultant to design the vehicule for resource mobilization

 

General Information

Project:   Norway Phase II:

A minimum of 11 sustainable banking projects designed, structured and marketed to private and public investors (CO05 - E1 - 10).

Duty Station: Colombia 

Consultant Level: 3

Total Fees: Up to USD 6,688 (Depending on credentials)

 

Project background

Based in Seoul, The Global Green Growth Institute (GGGI) is an intergovernmental organization founded to support and promote a model of economic growth known as "green growth", which targets key aspects of economic performance such a poverty reduction, job creation, social inclusion, and environmental sustainability. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies that can impact the lives of millions. The organization partners with countries, multilateral institutions, government bodies, and private sector to help build economies that grow strongly and are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change.

GGGI has a diverse portfolio of programs in developing countries around the world. These in-country programs, together with global products and services, focus on delivering results through an integrated approach of evidence-based green growth planning and implementation aligned to countries’ development priorities. The organization also focuses on knowledge development and management activities which build a strong theoretical and empirical basis for green growth, while providing concrete options and guidance for policymakers; as well as building the conditions for public and private green infrastructure investments.                                                                                                

In Colombia, we are currently undergoing the second phase of the Green Growth Program sponsored by the Kingdom of Norway. The principal aimed impact of the Program is to reduce deforestation and secure the provision of ecosystem goods and services, improve climate change mitigation and adaptation, and a sustained and socially inclusive green growth. To achieve it, we look to scale up sustainable production systems and promote the implementation of restoration efforts from degraded land to socially inclusive and sustainable productive systems under a landscape approach. To reach this goal, GGGI has developed the Project Preparation Technical Assistance Facility (PPTAF).

The PPTAF aims at facilitating the preparation of investment-ready forestry, nature-based tourism, livestock (cattle), and NTFPs projects by improving the quality of project proposals, making them bankable and attractive for funding by private sector investors or development finance institutions.

In the framework of this instrument, GGGI is supporting a local partner who aims to establish two agroforestry arrangements of 4.000 hectares in the department of Meta. Each system would cover 2,000 hectares. The first one includes a mix of annatto (1.111 trees per hectare) and abarco (66 trees per hectare).  The second one is composed of cocoa (1.300 trees per hectare), Gliricidia (1.300 trees per hectare), yopo (99 trees per hectare), and acacia (66 trees per hectare).

The project includes four cash flows coming from its different components. The first is related to annatto, particularly its consumption as a natural colorant and its plausible uses in the food, textile, pharmaceutical, and cosmetic industries. The second source of income would come from cocoa production and its increasing demand, particularly in the overseas market. The third one comes from carbon sequestration and the trading of carbon credits. The last one would arise from wood commercialization.

Currently, the local partner is ongoing the first stage of the project in Puerto Lopez. They plan to have 400 hectares of the agroforestry system based on cocoa. All of them plan to obtain the Rainforest Alliance certification.

Since one of the main revenue streams of the local partner's project is from carbon credits, the local partner has created a financial vehicle in the United States to negotiate with potential international clients. However, for the proper operation of the financial vehicle, a tax analysis is necessary to define if it is the optimal mechanism to achieve this objective.

 

Objectives of the assignment

The consultant shall review the financial and legal structure developed by the local partner and identify the costs, taxes, and tax benefits that will affect the investment processes abroad and the implications of bringing them to Colombia in a trust fund dedicated to the development of agroforestry activities.

For this, the consultant must:

  • Review the current tax structure of the local partner and generate recommendations for the agroforestry project.
  • Review and understand the financial structure proposed for the development of the carbon credit project.
  • Conduct a tax analysis of the proposed structure including
    • Double Taxation Conventions (DTC) that may be applicable;
    • Sales tax (VAT);
    • Industry and commerce tax (ICA);
    • Wealth tax;
    • Withholding tax;
    • Main formal tax obligations that the Project will generate.
  • Present the discussions, risks and disadvantages that can be identified in the proposed structure.

 

Scope of work

Under the supervision of the Green Investment Services Regional Associate of GGGI Colombia and with the inputs and guidance of the team of the GGGI local partner, the Selected Consultant will perform a fiscal analysis that will determine if the local partner proposal is the best legal and financial structure for a potential resource mobilization.

 The consultant will deliver the following:

 

Scope 1. Work plan.

The consultant shall develop and submit a detailed work plan including at least the following activities:

  • The methodology for achieving each of the stated objectives.
  • A work schedule.
  • The information requirements necessary for the development of the consultancy.

 The work plan shall be submitted in English and Spanish. 

 

Scope 2. Fiscal alternatives for agroforestry projects

Given that the project seeks to promote agroforestry arrangements in the Meta region, it is essential to understand the tax advantages that they generate. The selected consultant will have to analyse the current legislation, including the tax reform in the process, to identify the opportunities that agroforestry projects generate. This report should include all the opportunities and aspects to be considered for developing a project of this nature in Colombia.

 

Scope 3. Local partner proposed financial vehicle review

The selected consultant will have to make a tax analysis containing all the taxes to which this structure may be subject, some of them being:

  • Double Taxation Conventions (DTC) that may be applicable;
  • Sales tax (VAT);
  • Industry and commerce tax (ICA);
  • Wealth tax;
  • Withholding tax;
  • Main formal tax obligations that the Project will generate.

For its proper development, the local partner will present the proposed structure and once the consultant has full clarity of the structure will make its respective analysis.

 

Scope 4. Recommendations

To conclude the consultancy, the Selected Consultant should make a recommendations document based on their findings, in which he/she should note whether the proposed structure is adequate or whether adjustments should be made, which should be included based on the risks and advantages/disadvantages identified.

A summary presentation of the consultancy should also be presented in English. 

 

Deliverables and Payment schedule

 

Payment

Outputs

Deliverables

Deliverables description

Target Completion

Amount (% over total fee)

Payment No. 1

Workplan

Detailed workplan

Detailed workplan with activities, dates and methodology.

Within two (2) weeks from contract signing

 

10%

Payment No. 2

Fiscal alternatives for agroforestry projects

A document with the tax analysis for agroforestry projects in Colombia

A report with the listed information in the Scope 2

Within four (4) weeks from contract signing

 

25%

Payment No.3

Local partner proposed financial vehicle review

A document with the tax analysis of the financial vehicle proposed by the local partner

A report with the listed information in the Scope 3

Within eight (8) weeks from contract signing

 

40%

Payment No.4

Recommendations

One (1) final report with recommendations

A report and a ppt presentation with listed information in the Scope 4

Within ten (10) weeks from contract signing

 

25%

 

Reporting Arrangements

The consultant work progress will be monitored primarily through periodic review meetings for planning, and short meetings for prioritizing of activities, all of them previous consensus with the Contract Supervisor and the local partner. In these review meetings will be tackle subjects such as: the overview of the contractual objectives, the development of activities, detailed information milestones, actual achievements made against the timeline initially set, and any other relevant progress details.

Supervision shall be provided Green Investment Services Regional Associate of GGGI Colombia, in order to ensure the timely and quality delivery of products outlined in the contractual objective. The final review and approval of activities and deliverables under the contract is to be made by Green Investment Services Regional Associate of GGGI Colombia and the local partner. Local partner must have approved each deliverable before submitting to the GGGI team for review and beginning the next deliverable.

Deliverable 1 and the presentation of deliverable 4 must be produced in English, and reports 2-4 must be written in Spanish, in accordance with GGGI’s formatting requirements, and submitted with proof of editable file back-up (e.g. .docx, .pptx) in an external hard-disk and GGGI SharePoint system. Where relevant, the consultant shall also provide sets of raw data, research materials, and meeting notes related to the contractual objective.

Suggested methodology and competence requirements

The consultant should follow the specific methods provided by the Green Investment Services Regional Associate of GGGI Colombia. The consultant will make best use of both primary and secondary sources of information for the development of activities defined under the contract objective. The consultant will always provide the information to the Green Investment Services Regional Associate of GGGI Colombia for review and approval, prior taking final action.

The Consultant should demonstrate the credentials described below.

 

Expertise required
  • MANDATORY) Must be able to work and reside in Colombia.
  • (MANDATORY) Bachelor’s degree in Public Accountant
  • (MANDATORY) Specialist in Tax Management
  • (MANDATORY) At least ten (10) years of relevant experience working in tax audit
  • (RELEVANT) Belong to the Colombian Institute of Tax Law
  • (RELEVANT) Previus experience doing tax Due Diligence for company structuring
  • Exceptional analytical and quantitative skills; capacity for synthesis, presentation, and communication; and strategic thinking skills.
  • Organized with excellent time management and attention to detail.
  • Strong and matured interpersonal skills, problem solver, adapts with optimism to unforeseeable change and proven ability to work with teams.
  • Ability to work well under pressure and have a flexible approach to tasks given.
  • Fluence in Spanish and English.
  • Teleworking connectivity fully assured

 

Administrative information

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.

 

Social and sustainability safeguards

GGGI as an institution abides by its project-level Sustainability and Safeguards Rules (SSR) for all projects aligned with international standards for Environmental and Social Safeguards. The SSR is aligned with commonly recognized international standards for Environmental and Social Safeguards (ESS), i.e. the WB Performance Standard, that ensure project level safeguarding of communities and people impacted by GGGI activities. GGGI has integrated project level Environmental and Social Safeguards into its Project Cycle Management (PCM) with mandatory Preliminary Gender and Social Assessments and ESS Screening of all projects to identify and manage risks.

In addition, GGGI’s Gender Equality and Social Inclusion Strategy 2021-2025 provides a framework toward achieving the principle of “Leaving No One Behind” in the transformation towards green growth, guiding GGGI's approaches to the mainstreaming of gender equality and poverty reduction in GGGI Colombia´s Program. This also includes the implementation of the GGGI Gender Equality and Poverty Reduction Policy Markers on all projects. GGGI’s Corporate Results Framework requires gender disaggregated indicators for participation in GGGI Capacity Building events.

GGGI’s Child Protection Rules and GGGI Rules on Sexual Exploitation ensure safeguarding of children impacted by GGGI activities or in contact with GGGI contracted personnel, with GGGI taking a zero-tolerance approach to child exploitation. 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. All procedures mentioned above are accompanied by guidelines and capacity building efforts. GGGI also provides a work environment that reflects the values of gender equality, teamwork, embracing diversity in all its forms, integrity and a healthy balance of work and life. We are committed to maintaining our balanced gender distribution and therefore encourage women to apply. GGGI promotes equal opportunities for all including persons with disabilities.

All GGGI´s policies are available for open consultation under the following link: https://gggi.org/policy-documents/  

 

 

Values Logo

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.

This vacancy is now closed.
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