Loan Disbursement Structure

In the interest of a timely process, the 4 stages under the loan review & selection structure will be scheduled and linked in a ‘direct work-flow’ model with the loan disbursement structure which will be centrally monitored at the UNOPS contact responsible for the overall coordination of the loan scheme. Any individual loan applicant or designated CDM consultant can directly inquire the status of the application process or disbursement status, and shall receive a response within an acceptable timeframe (max. 3 days).

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In order to ensure a robust mechanism and highest possible loan success rate the following workflow process shall apply:

  • Step 1: The Technical Review Committee approves a loan application. UNOPS verifies that sufficient budget is available for the entire loan amount and enters into a standard loan agreement with the approved loan applicant/CDM project owner and the selected CDM consultant. The standard loan agreement includes all mandatory clauses in line with UNFCCC approval. The name of the pre-qualified PDD shall be clearly stipulated in the loan agreement to ensure proper accounting for the direct payments and overall responsibility of the successful implementation of the loan agreement. Therefore, the CDM consultant will be a formal signatory to the loan agreement.     
  • Step 2: The selected, designated CDM consultant is registered as vendor in UNOPS ERP-system (ATLAS) to ensure timely disbursements. In line with the formalized loan agreement, the CDM consultant is responsible for the following direct inputs and milestones:
    Signing of loan agreement: 10% of the loan amount
    Validation Start: 20% of the loan amount
    Validation Completion: 15% of the loan amount
    CDM Project Submission: 10% of the loan amount
    Registration with the UNFCCC: 20% of the loan amount
    1st issuance of CERs: 25% of the loan amount

    5000 USD will be withheld as a deposit for the issuance of the loan document. The deposit will be repaid once the loan has been paid out in its entirety and the CDM process has been completed. In cases where
    the process has not been completed, the deposit may or may not be returned depending on specific circumstances as described in the loan document.

Each milestone payment will only be released by UNOPS upon acceptance of respective Milestone Report and related invoice. This includes milestones in which the CDM consultant will release the indicated amount specified in the loan agreement directly to the DoE, against a specific invoice and signed confirmation statement by the CDM consultant that the milestone has been completed.

  • Step 3: The re-payment of the loan by the CDM project owner to UNOPS (milestone 7 as per above list) constitutes the final financial transaction under the loan disbursement structure. It returns the entire loan amount to the loan scheme budget, preferably in one lump-sum instalment scheduled 1 year after the verification process started. If deemed necessary, the loan agreement shall include a loan guarantee clause (with guarantor) in order to optimize the loan return rate.