Antecedentes

The Project:  The Small Decentralized Renewable Energy Power Generation Project, also known as DREG, is funded by the Global Environment Facility (GEF) and implemented by the United Nations Development Programme (UNDP). The project is nationally executed by the Ministry of Energy and Water (MoEW) in coordination with the Lebanese Center for Energy Conservation (LCEC).

The project’s objective is to reduce greenhouse gas emissions by the removal of barriers to widespread application of decentralized renewable energy power generation and in order to do so, the DREG Project is looking to perform a study targeting NEEREA loans for renewable energy projects.  The assessment will target Lebanese private banks in order to determine the current status of NEEREA loans and their ease of access and outreach to document the formal process for applying and receiving a NEEREA loan, and to develop a list of recommendations to improve the process.

The National Energy Efficiency and Renewable Energy Action (NEEREA) is a national financing mechanism initiated by the Central Bank of Lebanon (BDL) in collaboration with the Ministry of Energy and Water (MoEW), the Ministry of Finance (MoF), UNDP, the European Union (EU), and the Lebanese Center for Energy Conservation (LCEC). NEEREA was officially launched with the issuance of Circulars No. 236, 313, 318, 346 and 365 by the BDL.

The main objective of NEEREA is to support the financing of environmentally sustainable projects, including Energy Efficiency (EE) and Renewable Energy (RE) implementations, by offering soft loans to eligible and feasible projects in Lebanon. NEEREA does so by allowing private sector entities including individuals, SMEs, or even corporate bodies to apply for subsidized loans for any type of EE and/or RE projects.

Deberes y responsabilidades

The tasks mentioned below shall be performed in close cooperation with the UNDP/DREG Project. It is understood that the Consultant shall perform all the services/work as necessary to fulfill the objectives of the Consultancy Contract.

It is vital that the Consultant understands that this assessment is geared more towards renewable energy and energy efficiency projects only and does not cover green building loans.

The financial study targeting NEEREA loans for renewable energy projects should provide an assessment of the NEEREA loan targets by the banks, whether it is reaching all SMEs/potential loan requesters, and if it is an attractive low-interest mechanism for the banks.The study should also assess how NEEREA loans are applied for and disbursed from the moment the loan requester applies for the loan until the loan is received. This detailed process also needs to be documented in order to identify the associated difficulties so that process improvement recommendations can be presented. Therefore, the selected individual will be responsible for providing the services outlined below.

Task 1. Determine the current status of NEEREA loans and their ease of access and outreach

Review the latest BDL circulars which NEEREA loans are tapping into to better understand the loan application, funding, and transfer.

Validate and complement the findings from the above by interviewing relevant stakeholders such as BDL and NEEREA-active private banks.

Evaluate the performance of the private banks in terms of customer service and staff knowledge when it comes to NEEREA loans with an emphasis on branches located in rural areas such as Akkar, Bekaa, Saida, etc…

Determine whether the NEEREA loans have sufficient and effective outreach to potential beneficiaries (corporate, SMEs, and retail) 

Task 2. Document the formal process for applying for and receiving a NEEREA loan

Develop a detailed flowchart, with steps taken from the moment the loan requester applies for the loan until the loan is received while highlighting the role of each stakeholder and determining the average time frame for each step.

Develop a comparative matrix comparing all NEEREA-active private banks in terms of set criteria including and not limited to: timeframe, interest rate, staff knowledge, contact person, and total NEEREA loans count and amount to date.

Task 3. Identify difficulties related to applying and receiving a NEEREA loan

Based on the process documented under TASK 2, identify and describe associated difficulties/impediments faced by the banking sector which have time and financial implications on the entire process.

Task 4: Develop recommendations to improve the NEEREA process

Formulate recommendations on how to address the identified difficulties in order to reduce the time it takes to receive a NEEREA loan

Identify reasons for the low or small update of NEEREA loans for RE and EE projects and provide advice on ways to increase the amount of loans granted to renewable energy and energy efficiency projects.

Provide recommendations to increase marketing and uptake of RE and EE applications to NEEREA especially for larger loans. Focus should be given to the possibility of the private banks reaching out to their corporate and SME customers to educate them about the benefits of NEEREA loans, their low interest, the energy savings, and the relatively short payback period when it comes to RE and EE projects.

Note:

The hired candidate is expected to work closely with the DREG financial and administrative assistant during this assignment.

For additional information, please refer to Annex I – Terms of Reference.

Competencias

Corporate Competencies:

  • Demonstrates integrity by modeling the UN’s values and ethical standards;
  • Promotes the vision, mission, and strategic goals of UNDP;
  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
  • Treats all people fairly without favoritism;
  • Fulfills all obligations to gender sensitivity and zero tolerance for sexual harassment.

Functional Competencies:

  • Advanced level of communication skills including proficiency in the Arabic, French, and English languages;
  • Knowledge of the Lebanese banking sector with substantial knowledge of environmental matters is a plus;
  • Strong analytical and report-writing skills;
  • Excellent interpersonal and communication skills;
  • Emphasis on delivery of results and client satisfaction and reacts well to constructive criticisms.

Habilidades y experiencia requeridas

Education:

  • A Bachelor degree in Business Administration, Finance, Economics, Energy, Engineering or related field.

Experience:

  • Relevant experience of not less than 2 years with working knowledge of NEEREA processes and loans;
  • Experience with BDL or local banking system and in green financing programs is highly desired and will be considered as an asset. 

Languages:

  • Advanced level of communication skills including proficiency in the Arabic, French, and English languages.

Application procedure:

Kindly refer to the Individual Consultant Procurement Notice and all related Annexes by visiting the below link:

http://www.lb.undp.org/content/lebanon/en/home/operations/procurement/

Please make sure to submit all the requested documents/information; otherwise, your application will be considered incomplete. Please group all your documents into one (1) single PDF document as the system only allows to upload maximum one document.