The United Nations Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 46 least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development.
About the Proposal
The IMIF Technical Assistance Facility will provide urban investment opportunities with support to assist with project development and late-stage project preparation. Furthermore, IMIF TAF will support policy and regulatory reform. IMIF TAF focuses largely on providing direct support to municipalities in developing countries. The financial support is expected to be between $25,000 to $250,000 per project.
After completing the Technical Assistance phase, projects that the IMIF TAF will support may be eligible for acceptance by IMIF for investment.
The International Municipal Investment Fund (IMIF) is a unique, bespoke investment fund, initiated by UNCDF and UCLG, with the collaboration of FMDV, that is designed to focus exclusively on supporting cities and local governments, with a particular focus on developing countries, to accelerate the achievement of the SDGs and the Paris Agreement. IMIF is managed by an independent fund manager Meridiam. Meridiam was selected as Fund Manager for the IMIF in the context of the Malaga Coalition for a global financial ecosystem that works for cities and local governments. UNCDF leads the Malaga Coalition in partnership with United Cities and Local Governments and its technical partner, Fonds Mondial de Villes (FMDV).
Investments will be sought in the transport, utilities, clean energy, waste management, land use, and city planning sectors, amongst others. The IMIF invests in commercially viable projects sponsored by municipalities which expand their fiscal space and accelerate the implementation of SDG11, SDG13, and other related SDGs.
This call for Expression of Interest invites eligible cities and local governments to submit information for UNCDF to assess the eligibility of potential investment through the IMIF. Targeted sectors include, but are not limited to:
Solid waste - Water supply; sewerage, waste management, and remediation activities
Water, sewerage - Water supply; sewerage, waste management, and remediation activities
Urban development – Construction
Industry - Construction
Transport - Transportation and storage
Deliverables
Investee cities or local governments will be required to agree on a completed list of financial and impact indicators for monitoring the investment. The impact indicators will be finalized based on the nature of the project to be tracked on a continuous basis. The specific impact monitoring framework will be developed together between the qualified city/local government and UNCDF. In addition to these indicators, qualitative monitoring information is expected for learning and insights.
Eligibility Requirements
The following needs to be met to be eligible for this expression of interest:
Applicant must be a city or a local government.
Country-level eligibility requirements.
Country cannot be at war (or considered to be in a conflict zone or is currently in a civil war).
Country has typical access to the international banking system and the currency can be exchanged internationally.
A letter showcasing central government awareness and/or approval (if needed by local law) of projects being submitted.
A letter showcasing Ministry of Finance (or related ministry) awareness and/or approval (if needed by local law) of the project being submitted.
City-level eligibility context.
Three years of audited financial statements available from 2016 onwards.
Laws and regulations are in place to allow local government Public-Private Partnerships. o Law and regulations are in place to define the process for Public-Private Partnerships to acquire investors.
Define the regulatory reforms needed to make the project successful (i.e., tariff reforms).
A list of city officials, their terms of service including the technical staff which will manage the project with their qualifications.
Project-level eligibility requirements.
The project is seeking equity financing.
Project approved by the city council.
Project approved by the mayor.
The project must complete feasibility studies.
The project should be revenue-generating and conceptually commercially viable.
How to Apply
The applicant must submit a complete application form online through the ‘Apply’ platform (https://apply.uncdf.org/prog/imif). All submission must be completed in English or French. Only applications that follow the submission format and include all the necessary documentation will be considered.
