Sustainable Development Investment Partnership (SDIP) Project Review Group (PRG) Recommendations (Draft)

Initial assessments conducted by the PRG revealed a lack of dedicated transaction resources and expertise, which has limited its ability to scale and build momentum. Survey respondents emphasized the importance of a more rigorous approach toward project filtering, presentation, and follow-up with interested parties. They recommended a more aggressive approach to project prioritization and screening, as well as the need for more detailed explanations of financing gaps on PRG calls. Additionally, respondents suggested that vetted projects require follow-up by experienced transaction personnel to help move their progress toward financial close. The lack of dedicated transaction resources and expertise has resulted in a significant decrease in PRG activity, with no new project referrals or PRG calls taking place since February 2016. This has reinforced the need to move quickly on the PRG restart to keep momentum. Experienced, senior-level transaction personnel dedicated to PRG activities are needed to build momentum, and members are concerned about objectivity and unbiased PRG support in project reviews, screening, and selection. The report presents two options for restarting the PRG: Third Party Project Preparation and Support and Dedicated Internal PRG Support. The Third Party option involves contracting a third-party firm to provide full support of the PRG function, while the Dedicated Internal option involves a small team composed of a lead transaction specialist and 2-3 sector or functional support personnel. Both options have their advantages and concerns, including the need for objectivity, funding, and dedicated resources. Deloitte recommends a funded and dedicated support team for the PRG entity in place to operate for at least 12 months. The report also emphasizes the importance of structuring PRG calls to ensure that the right people are participating, and tracking progress, updating on follow-on calls, and disseminating a quarterly newsletter to show interim success and build urgency around the PRG goal. Key recommendations include: * Funding: If cash funding is limited, options include donor funding for the first 12 months or a hybrid model of donor funding plus in-kind contributions from members. * Due Diligence: Senior-level transaction expertise, backed with sector, geographic, and support resources, is needed to identify PRG projects in the market more actively. * Role: The PRG should be a transaction-focused entity but also act as a "lab-type vehicle for piloting innovative financing solutions." * Structuring of PRG Calls: Once the PRG has a sufficient number of projects, calls should be segmented by region, project stage, sector/sub-sector/type of activity to ensure that the right people are participating. * PRG restart and reset: The PRG restart and reset needs to happen quickly in order to keep members engaged and build momentum.