Understanding the Project Cycle

Transcription

1 HOW TO PREPARE BANKABLE PROJECTS FOR FINANCING CLIMATE CHANGE ADAPTATION IN TRANSBOUNDARY BASINS Dakar, Senegal, June 2017 Understanding the Project Cycle Ana Maria Kleymeyer

2 THE PROJECT CYCLE Identifying needs & priorities Define & design Feasibility studies, scope, etc. Prepare > Approve Implementation Evaluate 2

3 World Bank 3

4 European Investment Bank 4

5 African Development Bank 5

6 Adaptation Fund Project Cycle 6

7 Green Climate Fund Project Cycle 1. The Accredited Entities or the National Designated Authority submit a concept note (voluntary); 2. The AE submit the project proposal to the GCF, in conjunction with a no-objection letter signed by the NDA; 3. The GCF reviews selected sections of the proposal and the Independent Technical Advisory Panel (ITAP) of the Fund undertakes a technical assessment and provides recommendations; 4. Based on the review and the technical assessment, the GCF decides whether or not to approve the funding; and, 5. If the proposal is approved, a Funded Activity Agreement (FAA) is negotiated and signed between the AE and the GCF. 7

8 Climate Finance Instruments World Bank Group Example Readiness Policy Mapping & Analysis; Institutional capacity building; MRV, Baseline setting; Methodological framework; Enabling environment Partnership for Market Readiness (PMR) CADF (CPF Readiness Fund) Forest Carbon Partnership Facility (FCPF) Readiness Fund Carbon Initiative for Development (Ci-Dev) Readiness Fund BioCarbon Fund Initiative for Sustainable Forest Landscapes (BioCF ISFL) Pilot Program for Climate Resilience (PPCR) I/II Global Environment Facility (GEF) Ozone Trust Fund (OTF) Least Developed Countries Fund (LDCF) Special Climate Change Fund (SCCF) Adaptation Fund (AF) Global Fund for Disaster Reduction and Recovery (GFDRR) Korea Green Growth Trust Fund (KGGTF) Carbon Finance Assist (CF-Assist) Investment Loan/Credit Guarantee Grant Equity Clean Technology Fund (CTF)* Forest Investment Program (FIP)* Scaling-up Renewable Energy Program (SREP)* PPCR I* GEF* OTF AF IFC-Canada Climate Change Program Green Climate Fund * IFC can access these sources of climate finance to support private sector projects Resultsbased Payments Carbon credits (incl. REDD) Carbon-linked mitigation results CPF Carbon Fund FPCF Carbon Fund Ci-Dev Carbon Fund BioCF ISFL Methane Facility (PAF) Transformative Carbon Asset Facility (TCAF) Note: IBRD, IDA, IFC internal financing instruments are not included. 8

9 HOW TO PREPARE BANKABLE PROJECTS FOR FINANCING CLIMATE CHANGE ADAPTATION IN TRANSBOUNDARY BASINS Dakar, Senegal, June 2017 Where to begin: Essential Elements for Preparing Bankable Projects Ana Maria Kleymeyer

10 Session 2. Overview Funds v. Donors, how they vary Preparation & Implementing Partners Developing a Project Profile Funding procedures - project scope identification, budget planning, etc. Some Dos and don ts of funding proposals 10

11 Financing Climate Adaptation & Resilience Review -- Climate Finance = financing source from international, regional, and national Public, Private, or Blended sources For mitigation & adaptation 11

12 Funds v. Donors FUND - Pool of funding made available for a specific purpose by an agency, organization, foundation, government, private institution, private party. Multilateral Development Funds, Private Foundations, etc. DONORS Institutions, Governments, Foundations, People who contribute/donate funding or other resources to people, communities, governments, causes. * See list of funds in Background Paper 12

13 Source: Climate Funds Update 13

14 Where to begin? Needs assessments, studies, research (NAPA, NAP, National Communication, etc.) Elaborate priorities with wide stakeholder partcipation. Evaluate & reach out to potential funders/funds Prepare project (project profiles, project preparation support.) Present / Submit Follow up 14

15 Make it Bankable Def: Likely to receive financing from a donor/fund. Aligned with global, regional, national priorities. Clearly linked to identified climate needs. Responds to donor/fund criteria and priorities. Recipient country buy-in and contribution. Leverages other sources. Needs assessment & feasibility studies Scope of impact & sustainability 15

16 Aligning & Mainstreaming Aligning with national / regional development planning Maintreaming climate into all sectoral investments / projects Climate-proofing projects 16

17 Key steps of resource mobilization strategy Set-up a national fundraising working group leveraging national expertise to formulate and execute the strategy, including: Climate finance experts and finance ministry representatives, including the appropriate focal points (GCF, GEF, etc) Representatives from ministries in charge of water and environment (including the NBA national focal structure) Representatives from sectoral activities, implementing the projects (sectoral ministries and private sector); Prioritize and package actions: Set/confirm the national priorities so as to address climate vulnerabilities; Map opportunities based on their goals and requirements; Screen the project lists; Categorize/Package the national projects accordingly to match climate vulnerabilities, financial needs, and type of projects with funding opportunities and their requirements. 17

18 Key steps of resource mobilization strategy Develop engagement strategies specific to the targeted funding source: Meet with their representatives and investigate their willingness to support, capitalizing on the project profiles prepared; Flag the key elements they require in the project profiles (e.g. action type, risk profile, direct and indirect benefits, economic and financial returns). ; Adapt the scale of the project to the target; Consider clustering small projects into components of a larger projects, as small projects may benefit to each other and leverage funding; Consider blending funding sources to be the most specific to each project component; Involve national expertise to prepare the required analysis and documentation and ensure follow-up mechanism 18

19 Developing a Project Profile Summary Development Challenge/Project Context Vulnerability to Climate Change Project Objective Project Description Expected Results Including Climate Change Benefits Institutional Framework and/or Enabling Environment Budget Project Preparation Status Contact Information 19

20 Some Dos and Don ts of funding proposals DO Fully understand the funding agency s mission & criteria Investigate/Contact previous successful awardees Get clarity on the guidelines and procedures Plan carefully time and resources Consult your stakeholders and national experts who can contribute information Give yourself time to revise DON T Hesitate to ask questions & seek help Guess. Check facts and get the information Neglect to use all resources Wait until the last minute. Your proposal will suffer. Give up. 20

21 Discussion Barriers & Challenges Q & A