1 GEF Climate Change Project Design and Review December 6-7, 1999

2 Develop project concept Present concept to an Implementing Agency Option to pursue project development financing Develop project brief and/or project document Present project document to Council Implement Project Project impacts continue after completion of GEF funding Monitor and evaluate Project Cycle

3 0. Completeness of Documentation l Country Focal Point Endorsement l STAP Roster Review l Budget l Disclosure of Administrative Costs, Fees l Incremental Cost Annex l Logical Framework l Complete Cover Sheet l Length

4 1. Country Ownership a Country Eligibility i) Ratification of UNFCCC ii) Non-Annex-1 Country iii) Other b Evidence of Country Driven-ness c Country GEF Focal Point Endorsement

5 2. Conformity with GEF Program and Policies l Program Conformity & Portfolio Balance l Project Design Issues: a. Sustainability b. Replicability c. Global Environmental Benefits d. Baseline Course of Action e. Alternative supported by project f. Stakeholder Involvement g. Monitoring & Evaluation (Min. standards, M&E plan, indicators, lessons)

6 3. Appropriateness of GEF Financing l Financing Plan & Incremental Cost l Appropriateness of financial modality l Financial sustainability of GEF-funded activities l Implementing Agency Fees and Cost- effectiveness

7 4. Institutional Coordination and Support l Core Commitments and linkages l Consultation, Coordination and Collaboration between IAs and EAs, if appropriate l Complementarity with other ongoing Activities

8 5. Responsiveness to Reviews and Comments l Consistency with prior upstream consultations with GEFSEC, and processing conditions. l STAP Roster Review l FCCC Secretariat l Other IAs and EAs l Council Members l Other Technical Comments

9  Further Processing l Recommendation l Pre-requisites to be met prior to next processing stage.

10 Recommendations 1 Recommended (for Work Program Inclusion); 2 Recommended (for Work Program Inclusion) after agreed revisions; 3 Recommended for Resubmission; and 4 Ineligible.

11 Types of Eligible Climate Change Projects l Enabling Activities l Short-term Response Measures l Operational Programs, which address long- term priorities of the Convention

12 Enabling Activities l Defined as planning and endogenous capacity building (institutional strengthening, training, research & education) to facilitate implementation of effective response measures. l Priority was on Enabling Activities for the Preparation of Initial National Communications l Expedited Procedures, top-ups and full projects l Largest portfolio (number of projects), small total allocations, dominates relations with Convention.

13 Short-Term Response Measures -- Small portfolio; Criteria for project review: ¬ High Country Priority ­ High likelihood of success ® Cost-effectiveness of better than US$ 10/TC -- Most like CDM, PCF projects

14 Operational Programs in Climate Change l Removal of Barriers to Energy Efficiency & Energy Conservation (No. 5) l Promoting the Adoption of Renewable Energy by Removing Barriers and Reducing Implementation Costs (No. 6) l Reducing the long-term Costs of low GHG- emitting Energy Technologies (No. 7) l Promoting Environmentally Sustainable Transport (No. 11)

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16 New Operational Programs l Integrated Ecosystem Management (Multi-Focal -- No. 12) l Agricultural Biodiversity (Biodiversity -- No. 14)

17 Scope of OP 5 (par. 5.8) a Electricity production & distribution b Industrial energy consumption c Manufacturing processes d Effective use of energy-intensive materials e Combined heat and power technologies f Manufacture of energy-efficient equipment g Rural and agro-processing industries h Passive heating and cooling; commercial buildings; district heating & cooling

18 Scope of OP 6 (par. 6.10) a Mechanical wind pumps b Low-temperature solar thermal heat c Biomass and geothermal heat d wind, biomass, PV, small-hydro (rural electricity supply) e grid-connected renewable energy f storage systems g biogas digesters

19 Scope of OP 7 (par. 7.7) a Grid-connected PV b Biomass Gasifiers and gas turbines c Solar Thermal (Parabolic Troughs) d Large-scale grid-connected Wind power e Fuel Cells for distributed combined heat & power applications

20 Scope of OP 11 (Sustainable Transport) a Modal Shifts to more efficient and less polluting forms of public and freight transport b Non-motorized transport c Fuel-cell or battery operated 2- and 3- wheelers d Fuel-cell or battery operated vehicles for public transport and goods delivery e IC-engine-electric hybrid buses f Advanced Biomass to Liquid Fuels Conversion

21 Project Review Criteria 1 Completeness of Documentation ¬ Country Eligibility and Ownership ­ Conformity with GEF Program and Policies ® Appropriateness of GEF Financing ¯ Institutional Coordination and Support ° Responsiveness to Reviews = Further Processing

22 0. Completeness of Documentation l Country Focal Point Endorsement l STAP Roster Review l Budget l Disclosure of Administrative Costs, Fees l Incremental Cost Annex l Logical Framework l Complete Cover Sheet l Length

23 1. Country Ownership a Country Eligibility i) Ratification of UNFCCC ii) Non-Annex-1 Country iii) Other b Evidence of Country Driven-ness c Country GEF Focal Point Endorsement

24 2. Conformity with GEF Program and Policies l Program Conformity & Portfolio Balance l Project Design Issues: a. Sustainability b. Replicability c. Global Environmental Benefits d. Baseline Course of Action e. Alternative supported by project f. Stakeholder Involvement g. Monitoring & Evaluation (Min. standards, M&E plan, indicators, lessons)

25 3. Appropriateness of GEF Financing l Financing Plan & Incremental Cost l Appropriateness of financial modality l Financial sustainability of GEF-funded activities l Implementing Agency Fees and Cost- effectiveness

26 4. Institutional Coordination and Support l Core Commitments and linkages l Consultation, Coordination and Collaboration between IAs and EAs, if appropriate l Complementarity with other ongoing Activities

27 5. Responsiveness to Reviews and Comments l Consistency with prior upstream consultations with GEFSEC, and processing conditions. l STAP Roster Review l FCCC Secretariat l Other IAs and EAs l Council Members l Other Technical Comments

28  Further Processing l Recommendation l Pre-requisites to be met prior to next processing stage.

29 Recommendations 1 Recommended (for Work Program Inclusion); 2 Recommended (for Work Program Inclusion) after agreed revisions; 3 Recommended for Resubmission; and 4 Ineligible.

30 Nicha: Solar Energy Development Project l Submitted by GEFIA as a $23.73 million OP 6 project. l Project has 3 main components: 1.Supply of 200,000 SPV systems; 2. Technology development component to reduce cost and improve performance; & 3.Institutional support component for Capacity Building

31 Overnight Assignment l Read Nicha project proposal. l Read OP 6 (at least paragraph 6.24). l Assume you are GEFSEC OP 6 Program Manager; using Paragraph 6.24 and project review criteria, review this proposal to be able to discuss it on December 7th a.m. You should be able to defend your recommendation.

32 Requirements for OP 6 Proposals (par. 6.24) l Assess the full economic scope; l Estimate the contribution of the project; l Identify all key barriers; l Estimate the extent to which barriers hamper cost- effective implementation; l Propose specific measures to remove barriers l Demonstrate appropriate cost recovery and hence sustainability l Determine how programmatic benefits will be monitored and evaluated

33 GEF Decision Points 1.Pipeline Entry Concept Sound (program & policies) 2. Work Program Inclusion Proposal Well prepared (specific) 3.CEO Endorsement Project Brief Consistent (as approved) 4. Project Completion Project Implemented (success)

34 4. IMPLEMENTATION PHASES l Phases of the Project Cycle are between GEF decisions l Phases are the responsibility of the country counterparts, the IA, and the executing agencies

35 Phases of the Project Cycle

36 GEF funding pathways Funding Pathway Funding level Time required Prep. funding Full Project $1 US million and up 6-24 months up to $US 350,000 Medium Project $US 50,000– 1 million 6-12 months up to $US 25,000 Small Grant up to $US 50, months up to $US $2000

37 Preparatory funding l PDF A or Block A - up to $US 25,000 funding is available for preparing a medium or full project brief. l PDF B or Block B - up to $US 350,000 funding is available ONLY for full projects.

38 Use PDF A or Block A to: l assess possible project sites l identify threats and root causes or key barriers l evaluate institutional frameworks l meet and consult stakeholders l identify co-funding possibilities

39 Use PDF B or Block B to: l conduct feasibility studies l undertake detailed assessments l develop institutional and planning frameworks l make field visits and full consultations with stakeholders l complete co-funding arrangements

40 GEF Operations Calendar Jan Bilaterals Feb Mailout Mar Intersessional Work Program Apr Bilaterals Consultations May Mailout Jun Council Work Program A, Budget, Pipeline B Jul Bilaterals Begin: Aug Mailout Sep Intersessional Work Program Upstream Consultations & Task Force Program Status Reviews Oct Bilaterals Consultations Nov Mailout PIR Dec Council Work Program B, Bus.Plan, Pipeline C

41 Logical Framework (Logframe) Level Description Assumptions /Risks Indicators Program Objective Outcomes Outputs Activities Inputs or Resources

42 Project Review Criteria 1 Completeness of Documentation ¬ Country Eligibility and Ownership ­ Conformity with GEF Program and Policies ® Appropriateness of GEF Financing ¯ Institutional Coordination and Support ° Responsiveness to Reviews = Further Processing

43 Recommendations 1 Recommended (for Work Program Inclusion); 2 Recommended (for Work Program Inclusion) after agreed revisions; 3 Recommended for Resubmission; and 4 Ineligible.