Financial Instruments for Brazil Energy Efficient Cities - FinBRAZEEC

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The objective of the Financial Instruments for Brazil Energy Efficient Cities Project is to unlock private financing for urban energy efficiency projects in Brazil by reducing the credit risk and enhancing the technical quality of Efficient Street Lighting subprojects and Industrial Energy Efficiency subprojects. There are two components to the project, the first component being EE facility for efficient street lighting and industrial energy efficiency. This component includes two subcomponents: private financing for ESL and IEE subprojects, to provide sub-loans to beneficiaries for ESL subprojects and IEE subprojects through a loan syndication with commercial lenders, led by CEF; and credit enhancement products - the project will capitalize the GF to allow credit enhancement products for ESL subprojects and IEE subprojects. Finally, the second component is the Technical Assistance (TA) consisting of GCF US$4 million recipient executed grant, and US$1 million Bank executed grants provided by the Global Infrastructure Facility (GIF) and ESMAP. The TA component of this project will support essential technical studies, capacity building for the departments of CEF involved, and early operational costs. In the case of IEE, these funds will be used to support technical studies and initial implementation efforts (for example, structuring of off-balance-sheet funds to support scale-up of IEE investment). In the case of ESL, the TA will support cities’ preparation of high-quality PPP subprojects. The GIF and ESMAP funds are being used to support financial structuring of the project and to conduct pre-feasibility studies for PPPs for ESL subprojects in selected cities. A detailed procurement plan and procurement strategy for the recipient executed TA funds (GCF) have been prepared