Financing Sustainable Electric Transport Solutions (IADB-PE-L1254)

Countries
  • Peru
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Inter-American Development Bank (IADB)
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
FI
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
Jun 13, 2020
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
Government of Peru
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.
Loan Amount (USD)
$ 20.00 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.
Grant Amount (USD)
$ 0.48 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)
$ 20.48 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 @ IADB website

Updated in EWS Jun 15, 2020

Disclosed by Bank Oct 29, 2019

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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.

The general objective of the program is to reduce fossil fuel consumption and Greenhouse Gas (GHG) emissions through the promotion of low-carbon mobility solutions in Peru. The specific objective is to stimulate and demonstrate the financial viability of private investments in Electric Vehicles (EV).

Clean Technology Fund (CTF) concessional loan resources will be channeled by IDB via COFIDE, Peru’s second-tier national development bank, and blended with IDB’s resources to provide long-term financing for EV projects, including: (i) replacement of diesel/gasoline operated vehicles and new fleets with EVs; (ii) power generation for green mobility solutions, mainly EV charging stations (preferably solar powered). Financing will be delivered to final beneficiaries through first-tier FIs (operators, technology providers and concessionaries for buses, taxis and moto-taxis).

The program will combine the concessional loan instrument with the use of adapted risk transfer mechanisms, such as guarantees and insurance. CTF resources will also finance complementary TC activities to support the overall implementation of the program, including awareness, capacity building, evaluation of business models, monitoring, and reporting within COFIDE, and knowledge sharing.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The program is expected to have a transformational and long-term impact since FIs and vehicle operators will be encouraged to further support these investments,
once its viability and profitability has been demonstrated. Program activities can also contribute to ongoing government efforts towards formalizing and improving
public transport.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

Consistent with the approach to financial intermediation operations, the Bank will conduct the analysis of the proposed program at two levels; one at the corporate level, specifically CODIFE¶s ability to manage and apply the Bank's environmental and social safeguards, identifying the capacity and expertise of areas within the entity to allow safeguards to be applied to projects and investments to be financed with IDB resources. The other level is in the analysis of specific sub-projects or investments.

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

This operation is a financial intermediation operation B.13. The program will be executed under a sole financing component by which COFIDE will use IDB (US$10.5 million) and CTF (US$9.5 million) loan resources to provide long-term financial support to private-led EV projects for urban transport. Funds will be channeled via second-tier loans.


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.

ACCOUNTABILITY MECHANISM OF IADB

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

How it works

How it works