The GEF. Was established in October 1991 as a $1 billion pilot program in the World Bank

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1 Introduction to the GEF and its 5 th Replenishment; The Importance of the Involvement of Ministries of Agriculture in GEF Projects Climate Change Workshop November 2009 FAO REU, Budapest Krisztina Kiss Consultant FAO REU The GEF Was established in October 1991 as a $1 billion pilot program in the World Bank To assist in the protection of the global environment and to promote environmentally sustainable development. Originally covered four focal areas: ODS phase-out Climate change Biodiversity protection International waters 2 1

2 1994 Rio Earth Summit The GEF Restructuring Balancing interests of developed and developing countries: Independence from the World Bank - however the World Bank serves as the Trustee of the GEF trust fund and provides administrative services. Structure - Creation of two decision-making bodies: 1. GEF Assembly All members countries represented Meets every third year Decides on general policies 2. GEF Governing Council 3 The GEF Restructuring continued Council meets more frequently Rule of double majority: Decision The GEF was entrusted to become the financial mechanism for: The UN Convention on Biological Diversity (CBD) The UN Framework Convention on Climate Change (UNFCC) The Montreal Protocol of the Vienna Convention on ODS The Stockholm Convention on Persistent Organic Pollutants (2001) The United Nations Convention to Combat Desertification (2003) 4 2

3 The GEF Organization Structure: 178 member countries Each country has a GEF representative know as a "Focal Point. GEF Council Assembly GEF Secretariat CEO and Chair Monique Barbut GEF Agencies CSOs, NGOs The Scientific and Technical Advisory Panel (STAP) Independent Evaluation Office International Environmental Conventions 5 GEF Implementing and Executing Agencies: 6 3

4 Main Connections: GEF Implementing or Executing Agency The GEF Project Management Unit Government GEF FP MoE, etc MoA engagement for FAO Endorsement Project Ownership Commitment issues Beneficiaries Stakeholders NGO 7 Focal Areas bold are relevant for FAO Biodiversity Climate Change International Waters Ozone Depletion Land Degradation POPs Capacity Building Cross Cutting Multi-focal Enabling Activities Programmatic Approach Small Grant s Programme 8 4

5 9 FAO s comparative advantage (from the GEF) Its technical capacity and experience in fisheries, forestry, agriculture, and natural resources management. The FAO has strong experience in sustainable use of agricultural biodiversity, bioenergy, biosafety, sustainable development in production landscapes, and integrated pest and pesticides management. Close cooperation with and support to Ministries of Agriculture 10 5

6 IA s and/or EA s main roles Three-fold, support/ensure that: Objectives that fit into global environmental goals are achieved; All GEF rules are kept - use of funds for eligible expenditures, competitive processes, reporting, transparency, M&E, etc. through implementation supervision, mid-term evaluation, final evaluation, participatory process, etc.; Project good practices, lessons, etc. are selected and disseminated to feed into Global Knowledge Improvement Activities. 11 The GEF Project Cycle new from mid 2007 All Medium (up to 1$ million) and Full-Sized Projects have been implemented according to a revised project cycle approved by the Council in June Full-Sized projects have to be endorsed by the CEO within 22 months from the date of Council approval of the work program; Medium-Sized projects have to receive the approval of the CEO of the final project document within 12 months from the Project Identification Form approval. 12 6

7 Project Cycle: Step 1. CEO Review of the Project Identification Form - show online template Country eligibility; Consistency with GEF strategic objectives/programs; Comparative advantage of GEF Agency submitting PIF; Estimated cost of the project, including expected co-financing; Availability of resources for the GEF grant request within the focal area and under the Resource Allocation Framework later STAR; Milestones for further project processing; The PIF is circulated among all GEF Agencies and relevant Convention Secretariats; The CEO will consider the PIF for inclusion in a work program; Once the PIF is cleared for work program inclusion, it will be sent for STAP screening whereby comments of STAP will be posted on the web together with the PIF; The Agencies have now the option to request a fee advance on the amount of the preparation grant. 13 Two means for determining country eligibility for GEF financing: The GEF Instrument allows the Conferences of the Parties of the Conventions to set eligibility criteria for grants under the framework of that convention. In addition, countries that are eligible to borrow from the World Bank or are eligible recipients of UNDP technical assistance may receive GEF grants. There is a possibility for the GEF Council to take additional decisions regarding country eligibility. The Council could designate some countries as inactive to the GEF fund, although they are technically eligible. - For example, should the GEF adopt a policy toward countries under UN sanctions? What about countries such as those that have recently joined the EU or, for the CC focal area, countries such as Qatar and Brunei? 14 7

8 Step 2. Council Approval of the Work Program (WP) The work program document to be reviewed by the Council focuses on policy and strategic issues for Council consideration and describe the overall programmatic coherence of the concepts presented in the following terms: their collective contributions to the GEF strategic objectives and programs; their focal area and geographic balance, including a cumulative assessment of previous work programs; their innovative elements, as well as replication potential; the key assumptions and risks in the further development of the portfolio; and the resource programming implications. 15 Step 2. Council Approval of the WP continued The Program Framework Document (PFD) includes: Background and Program rationale; Value-added of the Program (including cost-effectiveness); Program objective and results; Consistency of the Program with national/regional priorities/plans/policies; Alignment with GEF focal area strategy/-ies; Expected global environmental benefits; Type of operations and potential scope of projects under the Program; Risks and mitigation measures; Program coordination, monitoring and evaluation; and Other relevant information, including Program implementation, indicative total GEF amount, potential cofinancing and sources, the Program results-framework, a list of potential projects and the Program implementation timeline. 16 8

9 Step 3. CEO Endorsement main conditions 1. High likelihood that the project, as designed, will deliver its outcomes and will generate appropriate global environmental benefits that are consistent with focal area strategies, with an adequate explanation for any changes in expected global benefits since PIF approval; 2. GEF funds are used cost-effectively, focusing on among others, the review of project budget, which includes project cost tables for project components, project management, and consultants; 3. Compliance with GEF s M&E policy; and that the 4. Project preparation grant has been used in a cost effective way, as explained in the project preparation grant status report (which is included as an annex attached to the Request for CEO Endorsement). 17 Step 4. Implementation Supervision, Monitoring and MTE and Final Evaluation Thus, Preparation Timeframe: PIF + WP Steps 1 and 2, minimum year + Step 3: Full-Sized projects have to be endorsed by the CEO within 22 months from the date of Council approval of the work program Medium-Sized projects have to receive the approval of the CEO of the final project document within 12 months from the PIF approval. 18 9

10 Determining Incremental Costs (only that is financed by GEF) Five steps that simplify the process of negotiating incremental costs, clarifies definitions, and links incremental cost analysis to result based management and the GEF project cycle. The guidelines enhance the transparency of the determination of incremental costs of a project during the preparation period, as well as its implementation. The GEF Secretariat will be involved in the negotiation the moment a proposal is presented to the GEF for potential financing (i.e. at the PIF stage). At this stage, the GEF Secretariat validates the proposed role for the GEF based on the expected global environmental benefits

11 Project Costs and their Financing Cost Analysis: Extended Benefit Cost Analysis Incremental and non-incremental Project Costs Investment and O&M costs Foreign and local costs Include costs of financing (bank costs, other grant preparatory, etc) Total Project Costs = Total Financing Financial Analysis to minimize financing costs GEF provides for incremental cost funding and project preparation costs out of the total fee after PIF clearance Funding possibilities of non-incremental costs: Sources of cofinancing include implementing agencies, other bilateral or international funding agencies, recipient countries, NGOs, and the private sector in forms of. cash, in-kind, loan. Attention: Impact assessments!!! Participatory process with all stakeholders involvement!!! Project sustainability after completion!!! 21 Issues of GEF Project Preparation Which country to focus on regarding a GEF project in which focal area(s) - Develop criteria for selecting priority country(ies) - now under GEF-5 preference might be given to national projects, rather than regional ones Depending on the country, decide whether to do alone as FAO or with/through UNDP or UNEP, or REC, would it be a medium or full size project Justify FAO's comparative advantage of GEF Agency submitting the PIF Present how the proposed project would fit into the country's STAR, NEAP, or in case of CC, NAPA, NAMA Is the GEF Project to be included in the National Medium Term Priority Framework (NMPTF)? Engage the GEF Focal Point - usually in the Ministry of Environment (MoE) in the country in concern Ensure that the MoE cooperates and collaborates with the Ministry of Agriculture of the country in concern Receive Government endorsement, are Project ownership and commitment issues right in place? Costs and their financing: how to get funding for the preparation of the PIF, Project co-funding, - as before Go through an iterative process several times, as needed Identify specific expertise input, etc. Prepare the PIF as the first phase of the Project Cycle

12 23 The GEF-5 Replenishment ~ US$ 5 billion, minimum contribution SDR 4 million (high scenario $9 bn) 50% increase over GEF-4 Increase in all Focal Areas Focal Area Strategies: Natural Resources Management Chemicals Climate Change Mitigation GEF-4 Overall Performance Study 24 12

13 System for Transparent Allocation of Resources (STAR) under GEF-5 Improve, simplify and accelerate the so far in place Resource Allocation Framework (RAF) So far Agreed Main Key Points by the ad hoc GEF Committee on STAR: Craft the STAR to be simple, transparent and easy for policy makers to understand. Refine GBI for Climate Change and Biodiversity. Analyze the current GPI and prepare alternatives that would more adequately reflect environmental governance and be more transparent. Explore placing SGP and national communications/enabling activities outside STAR envelopes. Move resources not used after 3 years to the global-regional set aside and use for reallocation

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21 41 Conclusions, Recommendations Please let me ask You at this point: Would you be interested in preparing new GEF projects with us in team spirit submit a PIF, PIFs, in which focal area(s)? What do YOU see as major issues, constraints? How good is the cooperation and collaboration in your country between the Ministry of Environment, the GEF Focal Point in your country and the Ministry of Agriculture? What would be the shortest, quickest way to ensure Government Endorsement for the project? What types of co-financing from what source can you think of? How to ensure meeting all conditions for PIF clearance for Work Program inclusion? How to finance the PIF preparation? How CC projects can rely on information in NCs, NAPAs and NAMAs? How these proposed projects fit in your relevant national strategies, like NEAP? Any other issues, please? Thank You very much for your attention and cooperation! 42 21

22 Thank You! 43 22