ASEAN+3 Regional Guarantee and Investment Mechanism Phase 2

Closed

The TA aims to conduct in depth study on a draft business model of the credit guarantee and investment mechanism (the Mechanism) and feasibility of the preferred organizational options. The TA will also prepare a draft business model and plan for the Mechanism. The TA will be composed of two parts. The first part, Phase 2 A will thoroughly assess the three options of (1) a new independent Multinational Development Institutions (MDI) structured on a standalone basis, (2) an MDI structured as a subsidiary or affiliated with ADB, and (3) expansion of the existing facilities of ADB as has been identified in the previous study, RETA 6127 (Phase 1). The first part of the TA will be composed of the following: (1) refining and tuning business volumes for each of business lines for these focus countries as PRC, Indonesia, Malaysia, Thailand and Philippines (2) re run the financial projection analysis (of three options as required) based on the refined and tuned demand projection (3) assessing the advantages and disadvantages of three options using such benchmarks as (i) self sustainability and triple A rating, (ii) organizational and management structure, (iii) good governance, (iv) maximizing the responsiveness and flexibility to the user demand, (v) impediments by legal and regulation restrictions, (vi) necessary fund mobilization, (vii) human resource mobilization, (vii) a project cost estimation, (ix) timeframe for the establishment and (4) narrowing down to one option out of three approaches. The Phase 2 A report will be prepared for the review and the discussion among member countries. If required by the co chairs and the member countries, it is suggested to conduct a consultation forum including the potential clients and market participants with the sufficient assistance and inputs by the co chairs and the member countries. Subject to the approval of the Working Group 2, the second part, Phase 2 B will create a business model and plan of the guaranty and investment mechanism. The TA will prepare a draft proposal containing sufficient information to support the investment assessment by member countries and Asian Development Bank.