As partner of the Switch Asia project, SMEs for Accountability, Responsibility and Transparency (SMART) Myanmar 2 funded by the European Union, ADFIAP, through its ADFIAP Consulting (AC) Group Head Corazon D. Conde and AC Projects and Programs Head, Arlene Orencia, conducted a 5-day training and workshop on “Green Project Finance 2.0” for members of the Myanmar Bankers Association (MBA) in Yangon, Myanmar from September 12-16, 2016. This activity is the second of a series of capacity building programs in 2016 that will culminate in the certification of the attendees as “Green Bankers” upon completion of the three courses in November, 2016.
The Green Project Finance 2.0 focused on the hands-on implementation of principles learned during the “Green Project Finance 1.0” training held in June, 2016, using live cases that were evaluated/appraised and packaged by the participants and presented to the “credit committee” composed of the trainers and representatives from the non-presenting teams. The participants were divided into 4 teams who named themselves as the “Eagles”, “Green Ladies”, “Phoenix” and “Stars”. Each team presented its financial analysis, credit scoring and credit recommendation and approval memorandum to the credit committee who deliberated on the account. The non-presenting teams were also given the opportunity to raise questions and give their decision on whether or not to approve the proposed loan. The credit committee then gave its final decision with guidance on how to further improve/strengthen the credit recommendation especially on the risk mitigation aspects.
This simulation exercise gauged the participants’ level of understanding of green project finance and their ability to implement the principles and tools in their respective banks. The “Green Project Finance 1.0”, which served as the foundation for the recently-concluded second series, focused on the green finance framework, specifically the principles of the green credit cycle with emphasis on the green credit scoring system as an essential risk mitigation tool in project finance
The training program was participated in by 36 assistant managers/managers from 25 government and private member-banks of MBA. The same participants were encouraged to attend the third program offering which will be held in November, 2016 and which will cover “Green Product Development and Marketing”, to qualify for certification as “Green Bankers” by ADFIAP’s Institute of Development Finance.
This initiative is in pursuance of one of SMART Myanmar 2’s aspirations of paving the way for its target SMEs to have access to finance from banks to fund their green investments. The training intervention is aimed at building the capacities of the loan officers of banks so they can confidently lend to green projects under a risk-mitigated environment.
The SMART Myanmar 2 is a 4-year project that aims to improve production and increase consumption of sustainably produced garment from Myanmar through up-scaling and improving on best practice mechanisms developed and implemented during SMART Myanmar 1.0. For more information on the SMART Myanmar project, please log on to https://www.smartmyanmar.org/.