GEF Co-Financing.

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Presentation transcript:

GEF Co-Financing

What is GEF Co-financing? GEF Co-financing comprises the total of cash and in-kind resources committed by governments, other multilateral or bilateral sources, the private sector, NGOs, the project beneficiaries and the concerned GEF agency, all of which are essential for meeting the GEF project objectives Adequate co-financing is expected for GEF-financed MSPs and FSPs; 1:4 co-financing ratio is the average, 1:1 is minimum benchmark targeted

What is NOT GEF Co-financing? Finance for baseline activities when such activities are not essential for achieving the GEF objectives Financing for other activities that are related to the project or to similar commitments but which are not essential for the project’s successful implementation (termed “Associated Financing”) Additional resources – beyond those committed to the project itself – that are mobilized later as a direct result of the project, e.g, for further replication of the project (termed “Leveraged Resources”)

Why is Co-financing important? A key principle underlying GEF’s success in its efforts to have significant positive impact on the global environment A key indicator of the strength of the commitment of the counterparts, beneficiaries, and donors and GEF Agencies Helps ensure the success and local acceptance of those projects by linking them to sustainable development, and thereby maximizes and sustains their impacts

GEF Co-financing: Past and Present Ratios

Sources of Co-financing GEF Agency’s own co-financing Government contribution (counterpart commitments) Other funding provided by multilateral and bilateral organizations, NGOs, private sector, and project participants

Types of Co-financing Grants Loans Credits Equity investments Commitment of in-kind support

Identification of Co-financing At PIF stage, initial co-financing commitments by GEF Agency, Government, and other possible sources At project document stage, detailed and documented information on sources and amounts of co-financing At CEO endorsement, official letter of confirmation in English of co-financing is required from donors (GEF Agency, government, others)