Environmental and Social Structuring of Infrastructure Concessions / PPPs

  • Environmental and Social Structuring of Infrastructure Concessions / PPPs


JGP is frequently retained by governments and/or multilateral financial institutions to structure the environmental and social aspects of infrastructure Concessions or PPPs. This entails screening of E&S risks and scoping of E&S responsibilities as well as feasibility level E&S assessments, including CAPEX and OPEX estimates. Tender document preparation includes detailed terms of reference for impact studies and other E&S requirements regarding biodiversity, land-take and resettlement, cultural property, stakeholder engagement, management systems and other aspects as applicable. JGP scope also includes advice in definition of Concession / PPP contractual E&S clauses that are aligned with both local legislation and Lender requirements.

 

  • E&S Bidding Support

 

JGP frequently provides support to infrastructure developers in preparation of E&S aspects of their bids in Concession / PPP tenders (in cases in which JGP is not in conflict of interest). We provide strategic level advice regarding engineering adjustments, construction impact mitigation, permitting planning and E&S management, as well as E&S CAPEX / OPEX estimates. 

 

Project Finance Support – Lenders

  • Environmental and Social Due Diligence

 

JGP has been conducting E&S Due Diligence assessments on behalf of Lenders during the last 25 years. This includes detailed audits of Project compliance with legislation and Lender E&S requirements, including the IFC Performance Standards, Equator Principles and other Lender sustainability policies. All gaps with respect to Lender standards are identified and the actions to close the gaps are defined and included in a structured Environmental and Social Action Plan (ESAP) to be included as annex to the Loan Agreement.

 

  • Independent Environmental and Social Monitoring

 

JGP has acted as Independent Environmental and Social Consultant (IESC) on a very large and diverse set of projects. This consists of systematic monitoring of Project compliance with the E&S requirements in the Loan Agreement, including implementation of ESAP requirements.

Project Finance Support – Borrowers

  • Support to Borrowers in Complying with Lender Requirements

 

We provide strategic support to Borrowers. This can begin before the Lender Due Diligence with anticipated identification of gaps with E&S requirements and implementation of measures to close them. Our mandates usually also include advice during the Lender E&S Due Diligence process and during ESAP adjustment, as well as support in implementation of ESAP requirements and in complying with Lender reporting requirements.

Project Finance Support - Private Credit Markets

  • Support for the Certification of Bond Instruments featuring Environmental, Social, and Governance (ESG) Claims

ESG Bond Independent Verification / Second Party Opinions (SPO)

Greenwashing has become a major concern of investors and regulators in Private Credit markets. Bonds and other debt instruments with ESG claims are being increasingly scrutinized and independent verification and Certification is an ever more frequent requirement. Since 2023 JGP is an Approved Verifier of the Climate Bonds Initiative (CBI), the major Green Bond standards and certification entity. We are also aligned with the International Capital Market Association (ICMA) Guidance.

Independent Environmental and Social Monitoring of Compliance with ESG Claims

The CBI standards require that Green Bond issuers retain an Approved Verifier to provide monitoring of compliance with ESG claims and report to Investors. JGP has a vast record of compliance monitoring.

  • Support in Structuring ESG Bond Emissions with ESG Claims

Support in Structuring ESG Bond Emissions / Certification Support Services
Where we don’t act as verifier, we can assist issuers in structuring bonds or other instruments, defining use of proceeds in line with the applicable standard, and subsequently providing support during the certification process.

Support in Structuring Multi-Project Green Investment Funds

In Latin American Private Credit Markets, Investment Fund Managers are beginning to structure multi-project portfolios with ESG claims. JGP is supporting Investment Fund Managers in this process, including project screening.

M&A Transaction Support

  • Environmental and Social Advisory Services in M&A Transactions (Buyer or Seller Side)

 

JGP has frequently been retained to conduct Environmental and Social Due Diligence services for Buyers in M&A transactions. This will include the full scope of E&S compliance verification, including identification of liabilities and worst-case valuation of E&S risks. Compliance with Buyer E&S policies and/or ESG performance targets is also assessed when required. On the Seller side, JGP has assisted in preparing clients for the E&S Due Diligence process, organizing documentation, identifying red flags, defining corrective action strategies and assisting with implementation.

 

  • Environmental and Social Compliance Monitoring Services (Buyer Side)

 

Where an M&A transaction includes requirements to be subsequently implemented by the Seller, JGP has supported Buyers in monitoring implementation of E&S commitments and assessing results.

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