Pre-feasibility Study and Solution Development for a risk transfer instrument Embedded in AFD’s Climate Shock Loan

Objectives: The tender for a Pre-feasibility Study and Solution Development focuses on creating a risk transfer mechanism embedded within AFD’s Climate Shock Loan. The primary goal is to develop an innovative loan product that combines financial protection with climate risk insurance, protecting borrowers from climate shocks. This entails assessing the feasibility of integrating insurance mechanisms that cover loan repayments during climate-related events, and establishing a financial and operational framework to support this product. The contract includes a scoping phase to understand AFD’s needs and explore insurance options, followed by a solution development phase contingent on the initial phase results.