With XacBank for Mongolia. 22 May 2015 NDA Strengthening and Country Programming

With XacBank for Mongolia 22 May 2015 NDA Strengthening and Country Programming

PAGE 1 OF 10 ver. 13 February 2017 Readiness and Preparatory Support Proposal How to complete this document? - A readiness guidebook is available to provide information on how to access funding under the GCF Readiness and Preparatory Support programme. It should be consulted to assist in the completion of this proposal template. - This document should be completed by National Designated Authorities (NDAs) or focal points with support from their delivery partners where relevant. - Please be concise. If you need to include any additional information, please attach it to the proposal. - Information on the indicative list of activities eligible for readiness and preparatory support and the process for the submission, review and approval of this proposal can be found on pages 11-13 of the guidebook Where to get support? - If you are not sure how to complete this document, or require support, please send an e-mail to countries@gcfund.org. We will aim to get back to you within 48 hours. - You can also complete as much of this document as you can and then send it to countries@gcfund.org. We will get back to you within 5 working days to discuss your submission and the way forward. Note: Environmental and Social Safeguards and Gender Throughout this document, when answering questions and providing details, please make sure to pay special attention to environmental, social and gender issues, in particular to the situation of vulnerable populations, including women and men. Please be specific about proposed actions to address these issues. Consult page 4 of the readiness guidebook for more information.

PAGE 2 OF 10 ver. 13 February 2017 SECTION 1: SUMMARY Country name: Mongolia Name of institution (representing National Designated Authority or Focal Point): Ministry of Environment and Tourism, Nature Conservation Fund 1. Country submitting the proposal Name of official: Mr. Batjargal Zamba Position: GCF Focal Point Telephone: +976 70000743 Email: zbatjargal@mne.gov.mn; z_batjargal@yahoo.com Full Office address: 7 th Floor, 22 Building, Amar Street, 8 th Micro-district Sukhbaatar district, Ulaanbaatar, Mongolia 2. Date of initial submission 3. Last date of resubmission (if applicable) 4. Which entity will implement the Readiness and Preparatory Support project? (Provide the contact information if entity is different from NDA/focal point) 5. Title of the Readiness and Preparatory Support Proposal 6. Brief summary of the request (200 words) 7. Total requested amount and currency 14/02/2017 N/a National Designated Authority Delivery partner Accredited entity Name of institution: XacBank LLC Name of official: Ms. Bayarmaa Amarjargal Telephone: +976 75771888 (77) Position: Senior Carbon Finance Officer, Eco Banking Department, XacBank Email: bayarmaa.a@xacbank.mn Full Office address: XacBank HQ Building, Prime Minister Amar s Street, Post Branch #20A, P.O.Box 72, Ulaanbaatar 14200, Mongolia Establishing and strengthening National Designated Authority (NDA) and Focal Point (NFP), and Strategic frameworks for engagement with the Fund, including the preparation of country programmes The Government of Mongolia appointed its Focal Point to the Green Climate Fund (GCF); however, there is growing demand to get in-depth knowledge of the GCF and its procedures and operations. Simultaneously, in order to disseminate key operational procedures of the fund, including its environmental and social safeguards, gender policy and no-objection procedures to all the interested parties, the Focal Point (and NDA) requires strengthening its capacity as well as facilitating and institutionalizing stakeholder dialogues and consultation processes. The Government of Mongolia also encourages national institutions, private and public alike, to get direct access to the Fund, with the ultimate goal to enhance country ownership and to access and allocate the fund s resources effectively and efficiently. Therefore, the FP (and NDA) aims to develop the capabilities and domestic coordination mechanism that ensure all initiatives from selecting direct access entities to priority funding proposals, are consistent with strategic objectives of national development policies and climate change programs. Also, Mongolia aims to develop strategic frameworks including country programmes, in order to enhance the effectiveness of its engagement with the Fund. This will prepare the country to act quickly, and engage with the Fund efficiently in the future. USD 300,000 8. Anticipated duration Q2 2017 Q2 2018 (total number of months: 12) 9. Is the country receiving other Readiness and Yes No

PAGE 3 OF 10 ver. 13 February 2017 Preparatory Support related to the GCF?

PAGE 4 OF 10 ver. 13 February 2017 SECTION 2: COUNTRY READINESS LOGICAL FRAMEWORK Please complete the table below, which enables a country to assess its readiness for the GCF and set targets for strengthening its readiness, including proposed outputs and activities to improve the country s readiness. For further guidance on completing the table, please refer to the guidebook Accessing the GCF Readiness and Preparatory Support Programme. OUTCOMES 1 BASELINE TARGET ACTIVITIES (including key outputs or deliverables where applicable) 1. Country capacity strengthened 3 7 1.1 NDA/focal point lead effective coordination mechanism 1.2 No objection procedure established and implemented 1.3 Bilateral agreements between the country and the GCF executed 1.4 Monitoring, oversight and streamlining of climate finance 2. Stakeholders engaged in consultative processes 2.1 Stakeholders engaged in consultative processes 2.2 Country programmes, including adaptation priorities, developed and continuously updated 2.3 Stakeholder consultations conducted with equal representation 0 1 2 0 1 2 1.1.1. A systematic country coordination mechanism, led by NDA/NFP, is established and operationalized. Manual/guidelines developed and disseminated to relevant stakeholders. 1.1.2. Capacity of NDA/or focal point staff, is built in project, programme management, accounting, procurement, monitoring and evaluation. 1.1.3. Knowledge on GCF, and climate finance priorities strengthened. 1.1.4. System for reviewing proposals and issuing recommendations is established. 1.1.5. Capacity and systems to monitor, evaluate and report projects and programmes of the Fund and other relevant finance mechanisms and institutions is established. 0 1 2 0 1 2 1.2.1. No-objection procedure is established and being implemented. 1.2.2. An operating manual for NDA/NFP is established and staff members are trained. 1.2.3. Manuals and hand-outs on procedures of the Fund developed and disseminated to country stakeholders in a local language. 0 1 2 0 1 2 1.3.1. The agreement within Mongolia and the GCF is signed and ratified. 0 1 2 0 1 2 1.4.1. Climate finance monitoring mechanism is in place, and some resources of climate finance, specifically GCF funds are being monitored. 1 7 0 1 2 0 1 2 2.1.1. Engagement of private sector, civil society, government and local government stakeholders on priorities for engagement with the fund, strengthened and supported. 0 1 2 0 1 2 2.2.1. Priorities for project and concepts to be developed for accessing the fund 2.2.2. Country programmes are developed and published in adherence with the initial guidance from the Fund, and continuously updated; the progress is assessed regularly in a consultative manner. 0 1 2 0 1 2 2.3.1. Gender equality measures are considered in parts of stakeholder consultation processes. 1 Based on decisions: B.08/10, annexes XII, XIII & XIV; B.08/11; B.11/10, annex I; B.12/20, annex I

of women 2.4 Annual participatory review of GCF portfolio in the country organized READINESS AND PREPARATORY SUPPORT PAGE 5 OF 10 ver. 13 February 2017 0 1 2 0 1 2 2.4.1. An annual review of GCF portfolio in Mongolia is organized with all stakeholders, including the communities, women and civil society. 3. Direct access realized 5 5 3.1 Candidate entities identified and 0 1 2 0 1 2 Potential national direct access entities have been nominated for accreditation in 2016. nominated for accreditation 3.2 Direct access entity accredited 0 1 2 0 1 2 XacBank LLC is accredited as the NAE of the Fund. 3.3 Entity/ies annual/multi-annual 0 1 2 0 1 2 The work plan exists within the institution. work programme developed 3.4 Funding proposals through enhanced direct access modality approved 0 1 2 0 1 2 NA 4. Access to finance 4 5 4.1 Structured dialogue between the 0 1 2 0 1 2 Meetings organized on ad-hoc basis with GCF, XacBank, and other AEs. NDA/Accredited Entities and the GCF Secretariat organized 4.2 Country programmes, concept notes, including on adaptation, 0 1 2 0 1 2 4.2.1. A country programme is developed in consistence with the INDCs and other national strategies, and submitted/ updated regularly. developed that implement highimpact priorities identified in INDCs and other national strategies or plans 4.3 Project/programme preparation 0 1 2 0 1 2 NA support, including for adaptation, to develop funding proposals provided 4.4 Funding proposals, including for adaptation, that are aligned with country priorities approved 0 1 2 0 1 2 MSME Business Loan Program for GHG Reduction by XacBank was approved. 5. Private sector mobilization 6 7 5.1 Private sector engaged in country consultative processes 0 1 2 0 1 2 5.1.1. Private sector engagement is systematically integrated in the country consultative processes with the NDA/NFP, accredited entities and GCF Secretariat. 5.2 Enabling environment for 0 1 2 0 1 2 NA crowding-in private sector investments at national, regional and international levels exists 5.3 Funding proposals for private 0 1 2 0 1 2 MSME Business Loan Program for GHG Reduction by XacBank was approved.

sector projects/programmes, including for adaptation, approved 5.4 Funding proposals under the Private Sector Facility programmes (small- and medium-sized enterprises and mobilizing funds at scale) submitted and approved TOTAL 19 31 READINESS AND PREPARATORY SUPPORT PAGE 6 OF 10 ver. 13 February 2017 0 1 2 0 1 2 A technical assistance project under the Private Sector Facility programmes (MSMEs) approved for XacBank.

PAGE 7 OF 10 ver. 19 August 2016 SECTION 3: ADDITIONAL INFORMATION Please explain how this grant will help deliver on the country s readiness needs as identified above and build on institutions, processes or existing work already underway in the country (maximum 500 words) Mongolia is a landlocked country bordering with the Russian Federation in the north and the People s Republic of China in the south. The country has a severe continental climate due to the fact that it is landlocked and surrounded by high mountains, as well as because of its great distance from oceans and the high elevation of 1580 meters above sea level. Consequently, the main characteristics of the climate are its four distinctive seasons, high fluctuations of temperature, low precipitation and clear climate differences in latitudinal and altitudinal zones. According to data collected between 1940 and 2013, the air temperature by the land surface (2m high) has increased by 2.07 C. This increase has occurred more intensively in the mountainous regions and less so in the Gobi and steppe regions. The warmest 10 years of the last 74 years have all occurred since 1997. Moreover, warm seasons and summer precipitation increased slightly in Altai mountain and Altai Gobi region and in the far South Eastern parts of the country since 1961. With future climate change, the most negative impacts for Mongolia could arise from (i) intensification of drought and aridity, (ii) increasing amounts of snow during winter time, (iii) rapid melting of permafrost and glaciers, (iv) the fact that the rate of evapotranspiration will far exceed the slight increase of precipitation in some areas and (v) the increase in the frequency and magnitude of climate related hazards. Therefore, climate change may pose risks (including decrease in production sectors such as animal husbandry and arable farming, adverse impacts on food supply and safety, the livelihood, work and living conditions of the rural population) and thus increase poverty levels and urban migration, furthermore exacerbating the challenges already faced by large cities. Considering such climate challenges, the Parliament of Mongolia approved the National Action Program on Climate Change and Green Development Concept in 2011 and 2014 respectively. Also, in 2005, the Parliament approved the National Renewable Energy Program (2005-2020) to promote the use of renewable energy and to increase the percentage of the renewable energy share in the total generation from 3% to 5% by 2010 and 20%-25% by 2020 in Mongolia. Moreover, the Law on Renewable Energy was passed by the Parliament in 2007. The primary stipulation of this law provides a feed-in tariff for the grid and the independent power generation from renewable energy. Moreover, Mongolia submitted its list of Nationally Appropriate Mitigation Actions (NAMAs), recently the Intended Nationally Determined Contributions (INDCs) to the UNFCCC Secretariat in January 2010, and September 2015 respectively. However, due to lack of funding and adverse economic situation within the country, implementation of these and related policy documents are inefficient and posing challenges for the country s paradigm shift towards low carbon, climate resilient development. Generally, the main principle of Mongolia on climate actions is to maintain international and regional partnerships and cooperation, and to attract more international funding; to move climate measures from projects to programmes to more systematic and scaled-up approaches with new access and delivery models and a robust structure across Government. Since 2012, with support from the GIZ Biodiversity and Adaptation of Key Forest Ecosystems to Climate Change Program in Mongolia, the Climate Change Coordination Office under the MEGDT implemented certain activities to get the country ready for international climate finance, and selected the Nature Conservation Fund as a potential national implementing entity in consultation with the relevant stakeholders and the Minister of MEGDT. Over the last 3 years, climate finance readiness activities mainly focused on raising awareness on climate finance among the relevant stakeholders. However, as the country is now engaged with the GCF, a growing number of governmental and nongovernmental organizations, entrepreneurs and banks are showing interest in getting funding from the Fund. Thus, the NFP (and NDA) requires having in-depth knowledge of the GCF, coordinating multi-stakeholder processes adequately, ensuring consistency with national priorities as well as disseminating proper information about the Fund. Furthermore, the NFP/NDA lacks human capacity to review and compile national climate policies and programs in order to establish the country strategic framework which will be a basis for the cooperation between the Government of Mongolia and the Fund. This readiness support will then allow the NFP/NDA to set and implement the required mechanisms and environment that will accelerate the private-public partnerships and the implementation of the national policies and commitments against climate change and a low carbon development. 7

PAGE 8 OF 10 ver. 19 August 2016 SECTION 4: BUDGET, PROCUREMENT, IMPLEMENTATION AND DISBURSEMENT Budget, procurement, implementation and disbursement plan are attached in separate excel sheet (Annex 1) Procurement plan Procurement of goods and consultancy services financed by the GCF funding shall be subject to rules and regulations of the Delivery Partner (XacBank) but should meet internationally acceptable standards. Detailed Procurement Plan is attached in separate excel sheet (Annex 2) Disbursement schedule The disbursement will be transferred to Xac Bank LLC, as delivery partner, in three tranches: The First disbursement US$ 120,000 will be transferred upon signing of the grant agreement between GCF and delivery partner. The Second disbursement US$ 130,000 will be transferred upon submission of an interim progress report and certified expenditure statement. The Final disbursement US$ 50,000 will be transferred upon submission of a project completion report and final Audit Report. The Project completion and Audit report will be submitted within two months after the end date of the project Additional information This box provides an opportunity to include further explanations related to the budget, procurement plan and disbursement schedule, including any details on the assumptions to justify costs presented in the budget. Additional information about the XacBank s procurement processes and procedures are attached in separate excel sheet (Annex 3) 8

PAGE 9 OF 10 ver. 30 January 2017 SECTION 5: IMPLEMENTATION ARRANGEMENTS AND OTHER INFORMATION Please attach an implementation map or describe how funds will be managed by the NDA/FP or delivery partner If the entity implementing the readiness support is not an accredited entity of the GCF, please complete the Financial Management Capacity Assessment (FMCA) questionnaire and submit it with this proposal. Implementation map

PAGE 10 OF 10 ver. 30 January 2017 Other relevant information The central government administration responsible for nature and environment - the Ministry of Environment and Tourism (the former Ministry of Environment, Green Development and Tourism, MEGDT) bears the main responsibility for ensuring the country s duties and responsibilities under international convention and protocol on climate change, identifying state policy and strategies on climate change, establishing a legal framework for protection, proper use and rehabilitation of natural resources, improving soil, water and forest resources management, expanding research and monitoring network of hydro-meteorology and environment, providing the citizens and entities with science-based information, and implementing projects and programmes through the use of international climate financing mechanisms or finance sources, as well as enhancing participation of and correspondence between relevant stakeholders. In parallel, the central government administration responsible for finance and state budget - the Ministry of Finance integrates the required funding into the state budget annually, as well as attracts and allocates international aid, loan and grants. However, due to the decrease in mineral prices at global market, national budget income which is heavily dependent on mineral export has fluctuated or decreased significantly. Thus, the total funding to counter climate change measures have always been insufficient in the country, despite Mongolia implementing certain climate projects and programmes under bilateral agreements with donor countries (including Japan, Korea, Germany and Switzerland) and international organizations (like the World Bank, GEF, ADB, UNDP, UNEP and so on) and having received project funding from the Adaptation Fund. With regard to monitoring and reporting: A. Inception Document: within 60 days from the start of the first quarter, the Delivery organization shall submit the inception report to the GCF. B. Progress report: within 1 month from the end of the second quarter, the Delivery organization shall submit the interim report to the GCF. C. Final report: within 2 months from the completion or termination of the readiness support programme, the Delivery organization shall submit the final report to the GCF with the list of outputs detailing activities taken under the readiness support programme, as well as lessons learnt and any recommendations to improve the efficiency of similar activities in the future. D. Financial report: All financial reports shall be in US dollars. Delivery organization shall submit the certified financial report to the GCF for second trench payment request, and final progress reports and audited financial statement for final disbursement request. E. The delivery organization shall submit to the GCF a final audit report of accounts within 2 months from the completion of readiness support programme. F. Audit report: On completion of the readiness support programme, a final audit statement of account containing signatures and audit opinion shall be dispatched to the GCF within 2 months. G. Monitoring: All the outcomes and outputs of the readiness activities shall be monitored by the Delivery organization and the NDA monthly or quarterly on a regular basis.

Annex 1. Budget for Readiness Support under Green Climate Fund (GCF) Cost Categories Outcomes # Activities Expenditure and Implementation Schedule Total Cost Cost Categories i. Consultant, ii) Travel, (USD $) # Cost Assumptions Quantity Unit Cost Amount (in USD) iii) Workshop/ (USD $) Consultant Travel Workshops Others Quarter-1 Quarter-2 Quarter-3 Quarter-4 Trainings, iv) Others Workshops Outcome 1 1.1.1 Venue and lunch 75 pax x 50 USD 75 50 3,750 Workshop 1 Inception Workshop 5,460 5,460 5,460 - - - Stationery, Printing, Workshop Material etc 75 pax x 1.1.2 10 USD 75 10 750 Workshop 1.1.3 Synchronic Translation service 8hrs x 120 USD 8 120 960 Workshop 2 Awareness Raising/Consultative Workshop between Consultants and NDA/NFP staff, NIE and potential NIEs, Representatives of line/relevant ministries and other stakeholders on the following: i) Procedures for GCF rules and regulation, its coordination processes and modalities etc ii) Country coordination mechanism iii) Cooperation and priorities and programme areas including the public-private partnerships (This will be two days workshop) 12,800 1.2.1 Venue and lunch 80 pax x 50 USD x 2 meetings 160 50 8,000 Workshop 1.2.2 Lodging costs, and DSA 10 pax x 50 USD x 3 days (for 10 representatives from local agencies to come to 30 50 1,500 Travel UB) 10,300 12,800 - - 1.2.3 Stationery, Printing etc 80 pax x 10 USD 80 10 800 Workshop 2,500 1.2.4 Travel Cost for local government representatives 10 pax x 250 USD/airfare round trip (to come to UB) 10 250 2,500 Travel 3 Consultant Recruitment of Consultants 61,750 26,400 12,200 10,200 2,600 55,750 1.3.2 Trainings 1.3.1 National Consultant (Public Relations and Communications) 2000 USD x 2 month International consultant (Short Term) 690 USD x 75 working days (for outcome-1 and outcome-2, the same consultant) 2 2,000 4,000 Consultant 75 690 51,750 Consultant 6,000 1.3.3 Airfare round trip 3 x 2000 USD 3 2,000 6,000 Travel 4 Trainings for the country coordination committee members (governments, academia, civil society, private sector, associations and other) to be appointed by the Minister of environment and tourism (There will be total 4 meetings and two of them accounted on output 1) 3,000 3,000 1,500 1,500 1.4.1 Venue and lunch 30 pax x 40 USD (2 meetings) 60 40 2,400 Workshop 1.4.2 Stationary, Printing and materials 30 pax x 10 USD (2 meetings) 60 10 600 Workshop 5 Training of NDA/NFP staff members in areas relevant to the objectives of the GCF, in line with the developed operational guidelines, Communication Strategy and Knowledge or Data management system for NDA/NFP 3,600 3,600 3,600 1.5.1 1.5.2 Venue, lunch and coffee break 30 pax x 50 USD - 2 Days Stationery, Printing, Material Development etc 30 pax x 10 USD - 2 Days 60 50 3,000 Workshop 60 10 600 Workshop 6 7 Training of NDA/NFP staff members on project/programme development, international procurement, accounting, planning and monitoring and evaluation processes Other Finalization, Approval, Editing, Designing, Translation (Mongolian), Printing and Dissemination of GCF Coordination Processes, Procedures and Modalities and additionally simplified manuals, brochures, leaflets etc for varies stakeholders (Outcome-1 and Output- 2) 6,000 6,000 2,000 2,000 2,000-1.6.1 Attend a full course training at the professional institute, certified as PM 10 pax x 600 USD 10 600 6,000 Workshop 6,150 6,150 2150 2000 2000 1.6.2 Attend accounting and M&E training 10 615 6,150 Workshop 1.7.1 Development of brochures, hand-outs and relevant publicity materials (lump sum) 5,000 Goods 1.7.2 Editing/design 2 documents x 1000 USD 2 1,000 2,000 Others 23,250 23,250 2,250 3,000 18,000-1.7.3 Translation Mongolian from/to English (lump sum) 1 5,000 5,000 Others 1.7.4 Printing 20 USD x 500 copies 500 12.5 6,250 Goods 1.7.5 Printing 5 USD x 1000 copies 1,000 5.0 5,000 Goods 8 Leasing webserver, and IT equipment 6,000 6,000 6,000 1.8.1 Renting 3 computers and a projector/screen, and leasing webserver and host from service providers 6,000 Others Outcome 2 9 Development of Knowledge/Data Management System 12,000 12,000 12,000 1.8.2 1 Consultant Recruitment of 6 National Consultants: (Public Policy Development and Environment Expert): 2 Mitigation and 2 Adaptation Experts ; and 2 Cross-cutting area Experts A web/platform developer and data management consultancy (lump sum 12,000 USD) - - 12,000.0 Others 2.1.1 1 Lead Expert 3,000 USD x 6 months 6 3000 18,000 Consultant 2.1.2 2 Mitigation Experts 2,500 USD x 3 months 6 2,500 15,000 Consultant 63,000 63,000 31,500 10,500 21,000 2.1.3 2 Adaptation Experts 2,500 USD x 3 months 6 2,500 15,000 Consultant 2.1.4 2 Cross-cutting area Experts 2,500 USD x 3 months 6 2,500 15,000 Consultant Workshops

Annex 1. Budget for Readiness Support under Green Climate Fund (GCF) Expenditure and Implementation Schedule Total Cost Cost Categories Outcomes # Activities (USD $) # Cost Assumptions Quantity Unit Cost (USD $) Consultant Travel Workshops Others Quarter-1 Quarter-2 Quarter-3 Quarter-4 2 Meetings as to regulate the country coordination mechanism among WG members (governments, academia, civil society, private sector, associations and other) to be appointed by the Minister of environment and tourism (There will be 2 meetings for output-2) 3,000 3,000 1,500 1,500 Amount (in USD) 2.2.1 Venue and lunch 30 pax x 40 USD (2 meetings) 60 40 2,400 Workshop 2.2.2 Stationary, Printing and materials 30 pax x 10 USD (2 meetings) 60 10 600 Workshop Cost Categories i. Consultant, ii) Travel, iii) Workshop/ Trainings, iv) Others 3 Consultation Workshop between Consultants and NDA staff, Potential NIEs, Representatives of the line/relevant ministries and other stakeholders to discuss & finalize the followings: i) Development of Strategic Framework as Country's Programme on Climate Change Initiatives and Priorities for the engagement with the GCF including a.development and Climate context; b.roles and contributions of key stakeholders (incl. NIE, IIEs, RIEs); c.programming priorities (incl. strategy for submission of programme/ project proposals to the GCF); d.alignment with fund objectives; e.complementarity with existing readiness; f.monitoring and Evaluation Framework ii) Development of Priorities and Guidelines for Concept notes on high priority projects (This will be 2-days workshop focusing on outcome-2) 9,620 9,620 9,620 - - 2.3.1 Venue and lunch 70 pax x 50 USD /2 days for 70 people/ 140 50 7,000 Workshop 2.3.2 Synchronic Translation service 16hrs x 120 16 120 1,920 Workshop 2.3.3 Stationery, Printing etc Costs 70 pax x 10 USD 70 10 700 Workshop 4 5 6 12,900 2.4.1 Air fare round-trip 1,700 USD x 6 pax 6 1,700 10,200 Travel Knowledge and experience sharing workshop on best-practices 6,000 2.4.2 DSA 200 USD x 6 pax x 5 days 30 200 18,900 - - - 18,900 6,000 Travel among NDAs Local Travel and Accommodation Costs USD 450 x 6 2.4.3 6 450 2,700 Travel pax 2.5.1 Venue and lunch 80 pax x 50 USD 80 50 4,000 Workshop Final Workshop to introduce results of Project and GCF Portpolio 5,760 5,760 - - - 5,760 2.5.2 Workshop translation 8hrs x 120 USD 8 120 960 Workshop 2.5.3 Stationery, Printing, Workshop Material etc Costs 80 pax x 10 USD 80 10 800 Workshop Trainings Training workshop on: 1) NIEs and accreditation, 2) fiduciary standards & environmental and social safeguards (ESS) as well as gender policy of the Fund, and to assist potential NIEs in assessing their capacity against GCF standards and environmental and social safeguards through the use of self-assessment tool - accreditation standards 2,000 2,400 - - 2,400 400 2.6.2 2.6.1 Venue and lunch 40 pax x 50 USD 40 50 2,000 Workshop Documentation, Printing and Stationary Cost etc 40 persons x 10 USD 40 10 400 Workshop 7 Attend training/workshops/meetings organized from GCF & Participation fees including travel, DSA, return airfare, 13,760 7,760 4,500 4,500 4,760 2.7.1 other int'l organizations among NDAs visa (lump sum) 7,760 Workshop Other 8 Financial Audit 4,000 - - - 10,000 2.8 Financial Audit Cost USD 10,000 X 1 1 10,000 10,000 Others Total Budget of Activities 260,450 Contingency Cost 13,023 4,871 2,008 2,633 3,343 1 13,023 13,023 Sub-Total 273,473 Delivery Partner/Accredited Entity Fee 26,527.25 9,797 4,116 5,259 7,011 1 26,527 26,527 Grant Total 300,000 100 103,927 64,244 73,092 53,874 300,000 Note: Quarter-1, 2, 3, 4 refers to the first quarter from the date of the Project start subject to GCF approval of the application, grant agreement and disbursement schedule. The project will start within the 2nd Quarter of 2017.

Annex 2. Procurement Plan Period: Q2 2017 to Q2 2018 Item Item Description Goods and Non Consulting Services Goods Estimated Cost (US$) Proc Method I Stationery, Printing, Workshop Material 4,850 shoping Threshold (Min-Max monetary value for which indicated procurement method must be used) Shopping: MNT 10-50 Million (USD 5,000 to 25,000) Estimated start date Projected Contracting Date July 2017 Aug 2017 MNT 10-50 Million II Venue and lunch 32,550 shoping (USD 5,000 to 25,000) 1.1., 1.4.1 4,950 July 2017 Aug 2017 1.2.1, 2.3.1, 16,200 Sep 2017 Oct 2017 2.2.1 MNT 10-50 Million 1.4.1, 1.5.1, Venue and lunch shoping 6,200 (USD 5,000 to 25,000) Dec 2017 Jan 2018 2.6.1 2.2.1, 2.5.1 5,200 March 2018 Apr 2018 MNT 10-50 Million III Brochure printing 18,650 Shoping (USD 5,000 to 25,000) Development of brochures, hand-outs and 1.7.1 5,000 Jul 2017 Sep 2017 relevant publicity materials (lump sum) SSS: Up to MNT 10 Million 1.7.2 Editing/design 2 documents x 1000 USD 2,000 Jul 2017 Sep 2017 (USD 5,000) or Printing 20 USD x 500 copies & 5 USD x 1000 SSS or Shoping 1.7. 11,250 shoping: MNT 10-50 Million Jul 2017 Sep 2017 copies (USD 5,000 to 25,000) Documentation, Printing Cost etc 40 persons x 2.6.2 400 Nov 2017 Jan 2018 10 USD 1.8.1 IV Other Renting 3 computers and a projector/screen, and leasing webserver and host from service providers 6,000 Shopping MNT 10-50 Million (USD 5,000-25,000) Jul 2017 Aug 2017 Service V Translation 8,840 Shoping Shopping USD 5,000-25,000 1.1.3 960 2.3.2 Syncronic Translation 1,920 SSS Up to MNT 10 Million (USD 5,000) Jul 2017 Aug 2017 1.7.3 960 2.5.2 Written translation 5,000 Shoping USD 5,000-25,000 Nov 2017 Feb 2018 Others Financial Audit Cost 6,000 Special Condition n/a March 2018 May 2018 2.8 Procurement SUB-TOTAL 76,890 Consultancy Services 1.3.1 1.3.2 National Consultant (Public Relations and Communications) 2000 USD x 2 month International consultant (Short Term) 690 USD x 75 working days (for outcome-1 and outcome-2, the same consultant) 4,000 Comparison method 51,750 selection method (5) USD 10,000-25,000 Jul 2017 Sep 2017 MNT 50-200 Million (USD 25,000-100,000) Jul 2017 Sep 2017 2.1.1 1 Lead Expert 3,000 USD x 6 months 18,000 Jul 2017 Sep 2017 2.1.2 2 Mitigation Experts 2,500 USD x 3 months 15,000 Jul 2017 Sep 2017 2.1.3 2 Adaptation Experts 2,500 USD x 3 months 15,000 Jul 2017 Sep 2017 comparison MNT 20-50 Million 2 Cross-cutting area Experts 2,500 USD x 3 2.1.4 15,000 method (USD 10,000-25,000) Jul 2017 Sep 2017 months A web/platform developer and data 1.8.2 management consultancy (lump sum 12,000 12,000 Jul 2017 Sep 2017 USD) SUB-TOTAL 130,750 TOTAL 207,640 Legend: Note: SSS = SINGLE SOURCE SELECTION XacBank has a procurement team which has contracted suppliers that offer the service or goods for the most competitive price and quality. Therefore, those contracted suppliers will be selected unless other suppliers will give more competitive offers. Description of XacBank's procurement procedure is desribed in the Annex 3. Although SSS is applied for goods and service up to USD 5000 as per XacBank's procedure, shopping will be applied as much as possible to increase the project cost e For consultancy service below USD 5000, comparison method can also be applied.

Annex 3. XacBank's Procurement Procedure Goods and non-consulting services Note: XacBank s policies are outlined in Mongolian Tugrik (MNT), and the exchange rate is approximately 1 USD = 2000 MNT Procument terminology Procurement Method (applies to both international and local) Threshold for use of method 1 Tender/competitive Open tendering method (goods and service) MNT 200 Million (USD 100,000) and above bidding 2 Closed tendering method (goods and service) MNT 200 Million (USD 100,000) and above 3 Open Selection method (goods) 4 Closed selection method (goods) Shoping 5 Open Selection method (service) 6 Closed selection method (service) Between MNT 70 to 200 Million (USD 35,000 to 100,000) Between MNT 70 to 200 Million (USD 35,000 to 100,000) Between MNT 50 to 200 Million (USD 25,000 to 100,000) Between MNT 50 to 200 Million (USD 25,000 to 100,000) 7 Shoping Comparison method (goods and service) Between MNT 10 to 50 Million (USD 5,000 to 25,000) 8 Single Source Selection Direct Procurement (goods and service) Up to MNT 10 Million (USD 5,000) 9 Special Condition Procurement Selection of Consultants Procument terminology Special Condition Procurement (good and service) None Procurement Method (applies to both international and local) Threshold for use of method 1 Single Source Selection Direct purchase method Up to MNT 20 Million (USD 10,000) 2 Quality cost based Comparison method MNT 20-50 Million (USD 10,000-25,000) selection 3 Selection method MNT 50-200 Million (USD 25,000-100,000) 4 Tender Tendering method Above MNT 200 Million (USD 100,000) 5 Special Condition Procurement Special condition method None Prior review threshold MNT 200 Million (USD 100,000) MNT 200 Million (USD 100,000) MNT 70 Million (USD 35,000) MNT 70 Million (USD 35,000) MNT 50 Million (USD 25,000) MNT 50 Million (USD 25,000) MNT 10 Million (USD 5,000) Prior review threshold Comments Applies only when there are a limited number of suppliers for the goods or service. Applies only when there are a limited number of suppliers for the goods or service. Applies only when there are a limited number of suppliers for the goods or service. Applies when there is only a single source of the service. Approval from the CEO of XacBank is required. Comment n/a MNT 20-50 Million (USD 10,000-25,000) Single source selection can be applied if there is MNT 50-200 Million (USD limited number of suppliers for the service. 25,000-100,000) Above MNT 200 Million (USD 100,000) Applies when there is only a single source of the service. Approval from the CEO of XacBank is required. Procurement timing Category Announcement Document/proposal collection period Selection period Contracting period 1 Tender Place Request for Proposal on more than 5 14-21 days after advertisement 21 working days 2 sources Open selection method 7-14 working days 3 Closed selection method - 7-21 days 21 working days 4 Comparison method - 3-21 days 3-21 days