Ecuador: CONAFIPS COVID-19 Credit Line Project (Previously: Corporación Financiera Nacional COVID-19 Credit Line Project) (AIIB-000435)

Countries
  • Ecuador
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 21, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Corporación Financiera Nacional (CFN)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jun 22, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the AIIB website, the objective of this project is to promote access to finance and address the liquidity constraints faced by private micro, small and medium enterprises (MSMEs) in response to the COVID-19 crisis in Ecuador.

The Project is proposed to be supported under AIIB's COVID-19 Crisis Recovery Facility (the Facility) and will be co-financed with the World Bank (IBRD). The Project aims at developing and improving financial products to promote access to finance for productive purposes for MSMEs and strengthening the institutional capacity of the Borrower, Corporacion Financiera Nacional B.P., in the context of the COVID-19 crisis.

The Project may have the following 4 components:

Component 1 - Strengthening the institutional capacity of Corporacion Financiera Nacional B.P..

Component 2 - Development and Improvement of Financial Products to Promote Access to Finance for MSMEs.

Component 3 - Credit Line Intermediated by Corporacion Financiera Nacional B.P. to Participating Financial Intermediaries (PFIs) for on-lending to MSMEs.

Component 4 - Project Management.

The World Bank is the lead co-financier. The Project's environmental and social risks and impacts have been assessed in accordance with the World Bank's Environmental and Social Framework (ESF). Under World Bank's ESF, the Project's environmental and social risks have been categorized as Moderate (equivalent to Category FI if AIIB's ESP were applicable.

AIIB will co-finance Component 2(b) "Capitalization of National Guarantee Fund (NGF) for special COVID-19 program" and Component 3. Under the Project, AIIB will provide through the Borrower, short-term liquidity financing for MSMEs in the form of partial credit guarantees and/or credit lines to mitigate the impacts of the economic crisis induced by the COVID-19 pandemic.

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Project is proposed to be supported under AIIB's COVID-19 Crisis Recovery Facility (the Facility) and will be co-financed with the World Bank (IBRD) (the Lead Co-financier).

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIIB

Gabriel Alfredo Giacobone

Infrastructure Sector Economist

gabriel.giacobone@aiib.org

 

Francisco-José Fortuny

Senior Investment Operations Specialist

fj.fortuny@aiib.org

 

WORLD BANK

Daniel Ortiz del Salto

Financial Sector Specialist

dortizdelsalto@worldbank.org

 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

How it works

How it works