Provision of Consultancy for the Development of Green, Social and Sustainable Bonds Framework

Overview

Financial Sector Deepening Africa (“FSD Africa”) wishes to contract a consultant (the “Consultant”) to develop an environmental & sustainable Bond Framework (the “Services”). The Services will involve inter alia: developing a regulatory framework to guide the issuance of Green, Social and sustainable (GSS) bonds, based on international best practice. This is expected to facilitate the mobilization of long-term, patient, market-based financing for environmental & sustainable projects in Uganda.  

Focus on climate finance has led to the emergence of GSS instruments aimed at meeting environmental and sustainability goals, globally and at a national level. In Uganda, development of a regulatory framework for GSS bonds is critical to ensure mobilization of capital to meet the national environmental & sustainability goals. Such a regulatory framework will ensure that capital for environmental & sustainable projects is mobilized in a transparent manner. Additionally, a GSS bonds framework is crucial to ensuring that issuance is conducted in a structured and standardized approach, which will cultivate the much-desired certainty.

The scope of the exercise will involve:

1. Undertaking a comprehensive review of international best practice with respect to the issuance of GSS instruments.
2. Examining the existing regulatory framework in Uganda for the issuance of bonds and identifying any gaps, inconsistencies, and revisions that are required to support GSS instruments. This should also include a review of the prevailing tax regime and identifying areas of reform that may be required to support the issuance of GSS instruments.
3. Developing a draft report highlighting the issues referred to under clause (2) above.
4. Developing a regulatory framework for the issuance of GSS instruments based on international best practice and having regard to the local context.
5. Providing focused training and conducting consultations with relevant stakeholders to obtain their views on the framework.
6. Submitting a final report and regulatory framework for GSS instruments.

Deliverables

In line with the scope of work, the expected deliverables under this contract will include the following, organized in a sequence to facilitate milestone-based payments:

1. Inception Report:
   A report clearly outlining the methodology and schedule within 10 working days of commencement of the assignment.
2. Draft Report:
   A draft report with findings and recommendations on the development of a facilitative framework for the issuance of GSS instruments as referred to under clause 4.2 (2) above.
3. Draft Regulatory Framework:
   A draft regulatory framework for the issuance of GSS instruments within 40 working days of commencement of the assignment.
4. Training and Stakeholder Workshop:
   Conducting focused training and a stakeholder workshop, followed by the submission of an event report within 50 working days of commencement of the assignment.
5. Final Report:
   A final report incorporating feedback from stakeholders, the final regulatory framework for the issuance of GSS instruments, and a detailed implementation plan within 60 working days of commencement of the assignment.