Support for the design and structuring of an investment recovery mechanism and its financial vehicle in the Province of Río Negro

Description

The Inter-American Development Bank (IDB), in coordination with the Government of the Province of Río Negro (Argentina), is calling on consulting firms or consortiums to submit proposals to evaluate the feasibility, design and structure a mechanism for the recovery of public investment and its corresponding financial vehicle (such as a trust) for rural productive infrastructure, taking as a pilot case the rural electrification of the Negro Muerto area (Stage I).

1. Objectives and feasibility of the recovery mechanism
Feasibility and beneficiary analysis: Determine the public investment attributable to the direct beneficiaries, map the ownership/registry situation of the lands, evaluate the capacity and willingness to pay at the establishment level (including the required intra-farm investment) and review 3 to 5 comparable experiences of recovery in rural infrastructure.

Preliminary legal assessment: Identify the legal alternatives to implement the payment obligation associated with land ownership, considering scenarios of sale, subdivision or succession, provincial competencies, enforceability rules and enforcement mechanisms in the event of non-compliance.

2. Governance, Fundraising Channel and Capital Mobilization
Comparison of collection channels: To comparatively analyze at least two ways of collection: the electricity service bill (EdERSA) and the provincial rural real estate tax, evaluating regulatory competencies, delinquency management, traceability and disconnection risks.

Legal and institutional design: Define the governance structure, the minimum content of the instruments required, the order of priority in the use of recovered funds, the audit/transparency rules and the criteria for allocating resources to future rural infrastructure works (electrification and irrigation).

Residual Gap Strategy: Evaluate options to finance the remaining cost of subsequent stages (securitization/issue-labeled issues, blended, secured or PPP finance) and identify credit alternatives for intra-farm investments.

3. Financial structuring and participatory process
Economic model and stress tests: Build the financial model and cash flow of the recovery scheme, analyzing update/indexation options, coverage ratios, reserve funds and sensitivity to price variations, energy costs and climatic events (drought).

Stakeholder consultation: Execute a participatory process articulated with the Program's Stakeholder Participation Plan (PPPI), conducting prior interviews and formal consultation with obligated owners, as well as information instances with tenants and rural workers.

Note: Interested companies should review the requirements on the BEO Bidder Portal.