Application Title The R’s (Reduce, Reuse and Recycle) for Climate Resilience Wastewater Systems in Barbados (3R-CReWS)

Country/ Region Barbados

Accredited Entity Caribbean Community Climate Change Center (CCCCC)

Approval Date 14 June 2019

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Notes • The PPF supports the development of projects and programmes and enhance their quality at

entry into the Fund’s pipeline. With a view to enhancing the balance and diversity of the project pipeline, the PPF is designed to especially support Direct Access Entities for projects in the micro-to-small size category. International Accredited Entities seeking project preparation support from the PPF are encouraged to do so especially for LDCs, SIDS and African countries where no Direct Access Entity is accredited. All Accredited Entities are encouraged to articulate counterpart support for project preparation within their requests for support from the PPF.

• A PPF submission should include below documents: 1. PPF request (this form) 2. PPF No-Objection letter1 3. Concept Note

• Please copy the National Designated Authority (ies) when submitting this PPF request. • Requests for support from the PPF should be submitted at the same time or following submission

of a GCF Concept Note for a project or programme. • Further information on GCF PPF can be found on GCF website Project Preparation Facility

Guidelines.

1 Please note that the PPF No-Objection Letter is different from the Funding Proposal No-Objection Letter. PPF No-Objection Letter template can be downloaded from here.

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2 See here to download the Concept Note template. 3 Template for PPF No-Objection Letter can be downloaded here.

A. Executive Summary

Accredited Entity (AE)

Name: Mr. Keith Nichols Position: Head, Programme Development and Management Unit Email: knichols@caribbeanclimate.bz Tel: +(501) 822-1094 or +(501) 822-1094 or +(501) 822-1104 or +(501) 822-1104 Full Office address: 2nd Floor, Lawrence Nicholas Building, Ring Road, P.O. Box 563, Belmopan, Belize, Central America

Has a Concept Note2 been submitted in association with this request for support from the PPF?

Yes No ☐ If yes, please indicate Project/Programme title: (Requests for support from the PPF should be submitted at the same time or following submission of a GCF Concept Note for a project or programme) The R’s (reduce, reuse and recycle) for climate resilience wastewater systems in Barbados (3R-CReWS

Has a No-Objection Letter3 been submitted for this request for support from the PPF?

Yes No ☐ (Please note that a PPF No-Objection Letter is a requirement for the submission of this request)

Total Cost Amount requested from the PPF: US$$$1,029,192

Anticipated Duration Number of months to implement the Project Preparation activities: 18 months

Summary of the request for Project Preparation support

(Please provide a maximum 200 words brief description of the Project Preparation activities to develop the Concept Note into a Funding Proposal with support from the GCF’s Project Preparation Facility.) Increased drought periods have supressed Barbados’ internal renewable water resources (IRWR) as a result of Climate Change (CC). In addition, scarce annual rainfall occurs more frequently as hurricanes and storms cause powerful high-speed runoff that meekly contribute to IRWR, however associated storm waters contribute to infiltration on Barbados’ wastewater management system. With GCF support this project will reduce the stress of IRWR with treated wastewater to increase water and food security (WFS). Support from the AE, the Caribbean Community Climate Change Centre (CCCCC), will ensure implementation of adaptation measures to: (1) educate Barbadians and visitors about CC and WFS with respect to wastewater reduction, reuse and recycling, (2) reduce CO2 emissions from wastewater treatment (3) build climate resilience in the wastewater treatment process. Over the past years increasing demand in the sewered districts of Barbados and climate change have placed strain on our wastewater management systems. In order to adapt to the changing climate, a transformational shift is imperative. Barbados, through the Barbados Water Authority (BWA), will embark on the resilience building of its wastewater management practices to increase tolerance to CC. Green-resource production from wastewater will reduce the reliance on fossil fuels; tertiary treated effluent will be reused for animal and agricultural purposes, thus reducing stress on diminishing water resources due to climate change; landscaping and turf maintenance and activated sludge will be used as fertilizer, landscaping and turf maintenance, land reclamation and covering and dump covering. The objectives of this project are to significantly lower the carbon footprint and greenhouse gases emissions by providing green resources to operate the wastewater treatment facilities; increase water availability to reduce the strain on potable water; improve effluent quality going into our marine environment; reduce the importation of products with a high carbon footprints and establish sustainable practices through community re-education and engagement, which will ensure the longevity of the project. Thus, to prepare an accurate funding proposal, GCF financial support is required.

B. Description of Project Preparation Activities Outputs and Activities Month

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4 The PPF can provide support within the following project preparation activity areas:

i. Pre-feasibility and feasibility studies ii. Environmental, social and gender studies iii. Risk Assessments iv. Identification of programme and project level indicators

Other activities of direct relevance for Direct Access Entities that the PPF can support are as follows: v. Pre-contract services, including the revision of tender documents vi. Advisory services and/or other services to financially structure a proposed activity vii. Other project preparation activities, where necessary, and with sufficient justification

(Please select Activity Areas4, activities, and deliverables as needed)

(Please shade the implementation period from the starting month of the Output and Activity in the schedule. Please also indicate the

month of completion of each deliverable with “X” in the corresponding cell)

1 2 3 4 5 6 7 8 9 10

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Activity and deliverable 1: PPF activity area: Pre-feasibility, feasibility studies and project design

X X X X X X

1.1 Project Design (Please provide a 50-100 words description for each sub-activity and the associated deliverable) Pre-planning and planning of the project design involves initial or early consultation with various actors such as public bodies, stakeholders and specialist contractors. The preparation and regular monitoring of the project development and the various design criteria will be incorporated into the project design. A design schedule will be developed utilizing revised project designs with different stakeholders to ensure maximum country buy-in and ownership, which is essential for a paradigm shift to drive this climate change adaptation project. Depending on the subject of the project, the products of the design phase can include dioramas, sketches, flow charts, site trees, etc. Deliverable: Workshop/Consultation Reports (initial project scope identified)

X X

1.2 Feasibility Analysis (include Technical, Financial and Economic) (Please provide a 50-100 words description for each sub-activity and the associated deliverable) The feasibility study is to evaluate and recommend appropriate wastewater management alternatives and to prepare conceptual engineering designs for wastewater management infrastructure and effluent reuse covering sewered networks of Barbados and surrounding areas to consider the feasibility to establishing a new network. The feasibility of the project will describe agreed interventions, including physical investments anticipated over a planning horizon of 30 years. The feasibility study will incorporate on the technical, economic, legal, operational and scheduling feasibility of the project. Thus, the feasibility study will be a holistic integrated feasibility study. Deliverable: Feasibility Study

X X X X

Activity and deliverable 2: PPF activity area: Environmental, social and gender studies

X X X X X X

2.1 Environmental Studies (Please provide a 50-100 words description for each sub-activity and the associated deliverable) The Environmental assessments (EAs) are to evaluate and recommend appropriate environmental and social wastewater management alternatives and to prepare conceptual engineering designs for wastewater

X X X X

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management infrastructure and effluent reuse covering sewered networks of Barbados and surrounding areas to consider the feasibility to establishing a new network. The EAs will be prepared to identify and evaluate the environmental, socio-economic, health and safety consequences of the proposed project. The EAs will outline plans to mitigate any possible negative environmental, socio-economic and health impacts and to enhance the positive environmental, socio-economic and health impacts. Deliverable: Environmental and Social Impact Assessment and Management Plan 2.2 Social Studies (Stakeholder Analysis and Management and Engagement Plan) (Please provide a 50-100 words description for each sub-activity and the associated deliverable) The Social Studies (SAs) will ensure that at the project development stage that there is constructive and productive relationships with the general public, public and private organizations and NGOs over the long term the provision of mutual benefits for the vulnerable communities and vulnerable sectors including water management, agriculture, fisheries and environment. The SAs will be prepared to identify and evaluate the socio-economic consequences of the proposed project. The SAs will outline plans to mitigate any possible negative socio-economic impacts and to enhance the positive socio-economic impacts. Deliverable: Stakeholder Analysis and Management and Engagement Plan

X X X X

2.3 Gender Studies (Please provide a 50-100 words description for each sub-activity and the associated deliverable)

The Gender Studies (GSs) will ensure the development of gender sensitive outcomes by addressing gender issues of the project design and implementation by a gender analysis to identify the issues, needs and contextual factors affecting male and female stakeholders. The other activity areas under the GSs include: Monitoring and Evaluation: Tracking and assessing progress toward goals and objectives to improve gender sensitivity. Targeting and Participation: Meaningfully engaging beneficiaries and other stakeholders in gender- sensitive project design and implementation. Public Awareness and Social Marketing: Informing and effecting behavioural changes among water users in the way they gain access to and manage shared resources. Capacity Building and Organizational Development: Enabling all water stakeholders—from the implementing agencies to the beneficiaries—to build requisite skills and knowledge for gender-sensitive water services and resource management.

Deliverable: Gender Analysis and Gender Action Plan

X X X X

Activity and deliverable 3: PPF activity area: Risk assessment 3. Conduct a Risk Assessment (include wastewater master plan) (Please provide a 50-100 words description for each sub-activity and the associated deliverable) The Risk Assessment will result in the production of an integrated risk assessment analysis that robustly used problem formulation, risk analysis and risk characterization protocols to establish how these risks are applicable to the project and also to the investment in the project. Risk formulation will be conducted that focuses on the risks studies and thereafter management and mitigation

X X

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suggestions/actions for each risk. The problem formulation phase also includes developing a conceptual model of the environmental system, the wastewater discharge and the interactions between them. Risk analysis studies will be conducted to determine the probability and magnitude of an adverse effect with specific consequences occurring to beneficial uses and values. Risk characterization will evaluate and report of the problem formulation and risk analysis results for decision-making and risk management purposes. Deliverable: Risk Assessment, Register and Mitigation Plan Activity and deliverable 4: PPF activity area: Identification of programme/project level indicators 4. Identification of Project Indicators (Please provide a 50-100 words description for each sub-activity and the associated deliverable.) This activity will ensure that the proposed project follow satisfy the GCF investment criteria and also will provide information on the additional needs that are necessary to ensure that the project indicators are addressed. In addition, this activity will also recommend areas that the project can be improved and how the scope of the project can be advanced to maximize the project outputs and impact on Barbados and to the wider Caribbean paying special interest on Small Island Developing States. Deliverables: (1) Draft Log Frame; (2) Implementation timetable including key project/programme milestones; and (3) Monitoring and evaluation plan

X X

Activity and deliverable 5: PPF activity area: Advisory services and/or other services to financially structure a proposed activity 5.1 Preparation of legal documentation/Contract Services (Please provide a 50-100 words description for each sub-activity and the associated deliverable.) This activity will confirm and recommend actions that the entire project development that the laws of Barbados are followed and that the development team is fully aware and understand the legal implications of decisions of the project. In addition, the legal consultancy is to draft, evaluate and recommend appropriate legal management alternatives and to prepare conceptual drafts for the legal wastewater management infrastructure especially with respect to getting persons to comply with the proper use of the network and the fining for improper usage. Legal management plans and guidelines for closure of agreements for goods and works will be prepared to conform to International guidelines and those of the regulations promulgated by the Government of Barbados. This is very important because no such legislation currently exists. Deliverables: (1) Legal Due Diligence (Regulation, taxation and insurance) and (2) Draft Term Sheet

X X X X

5.2 Develop a Financial Model and Financing Plan for the Project (Please provide a 50-100 words description for each sub-activity and the associated deliverable.) This activity will ensure that a sustainable financial model and plan is generated and also will produce financial and economic analysis for the project in the context of the Barbaidan economy and how this project can advance

X X X X

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C. Justification of the Project Preparation Request (Please provide rationale for the AEs’ need to receive GCF Project Preparation fund to strengthen development of the corresponding funding proposal. Especially for international AEs, please outline counterpart resources that will complement GCF PPF fund also in the budget table in section E.) 1. Barbados has observed the devastating impacts of climate change. Changes in precipitation patterns, leading to prolonged periods of drought, have impacted the water availability in Barbados. As a result of many interconnected climate change impacts; Barbados has been ranked among the top 15 water scarce countries worldwide. In addition, the Intergovernmental Panel on Climate Change (IPCC) deduced that sea level rise and salt-water intrusion would increase salinity further affecting Barbados’ water resources.5 A World Bank Project has also declared “a further reduction in the availability of water, due to changes in precipitation patterns could lead to serious health impacts”.6 Therefore, it is important that it is recognized that there is a serious threat to the diminishing water resources of Barbados and methods to actively solve Barbados’ current water scarcity dilemma due to the impacts of climate change should be addressed promptly. In the absence of solutions to combat the water scarcity in Barbados, it has been projected that there will be competition between various sectors.6 With the identification of possible solutions, for example wastewater reuse, this could reduce future competiveness between various sectors with respect to water use that could substantially reduce a potential plethora of negative impacts regarding human health and food security. Unfortunately, research has shown that only about 15-30% of annual rainfall reaches the aquifers and Barbados depends on its groundwater for a significant percentage of its potable water supply.7 Therefore the 3Rs CReWS project is important to Barbados and SIDS, as it could also serve as a template for other Caribbean countries, inter alia, that are experiencing similar climate change impact dilemmas. 2. The Project Preparation Facility (PPF) ensures that countries who would like to apply for the GCF’s funding present all the information necessary to make a fair judgment on the merits of their proposed project. In some situations it may be unusual for some countries, such as Barbados, to have this information readily available with all the requirements that would merit a complete Funding Proposal Application (FPA). Therefore, to ensure that the 3Rs CReWS FPA would have all the studies and information available for presentation to the GCF, Barbados is therefore requesting funds from the PPF to properly conduct these studies. At present, Barbados is facing a financial dilemma as it is increasing difficult to secure funding in the form of loans from international bodies since the financial crisis that Barbados is yet to recover from. Therefore, the Green Climate Fund (GCF) provides a unique opportunity for countries, such as Barbados, to develop and implement climate change directives to adapt to the related impacts. Therefore the PPF is vital for Barbados and to the success of the 3Rs CReWS, as Barbados moves towards building climate change resilience in the wastewater sector. 3. In Barbados the wastewater management protocols are being forced to adapt to climate change as over the past few years due to the various climate change impacts the wastewater system, including the network, have not been meeting established demands under the current stresses. In December 2016, the wastewater management system was severely affected due to failing systems overwhelmed by unprecedented floodwaters that caused a catastrophe on the

5 Houghton, J.T., Y. Ding, D.J. Griggs, M. Noguer, P.J. van der Linden, X. Dai, K. Maskell, and C.A. Johnson (eds.), 2001. Third Assessment Report of the Intergovernmental Panel on Climate Change. 6 World Health Organization (WHO), 2016. Climate Change Adaptation to Protect Human Health. Public Health and Environment Department, Health Security and Environmental Cluster (HSE). http://www.who.int/globalchange/projects/adaptation/PHE-adaptation-final-Barbados.pdf?ua=1 7 Erik Haites et al., 2002. Assessment of the Economic Impact of Climate Change on CARICOM Countries for Environment and Socially Sustainable Development – Latin America and Caribbean World Bank. pp 14.

Barbados into the growth of a green economy model that can be sustained over the length of the project and also how this model can be expanded to serve as a template for other Caribbean countries and Small Island Developing States that have similar situations. A detailed report with comprehensive practical solutions and guidelines will be generated. Deliverables: (1) Detailed Budget Plan, (2) Financial Model and Plan (Economic and/or financial analyses in spreadsheet format) Estimated time for submission corresponding full Funding Proposal to the GCF (Please indicate the month with ‘X’.) Deliverable: Draft Funding Proposal

X

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south coast of the island. As storms and flooding events frequency increase, coupled with sea level rise, there will be consequences that include increased coastal erosion and inundation and salt-water intrusion into inland aquifers. The effects of these are felt mostly on the coast of Barbados, and the wastewater systems and the two treatment plants are located on the coast and very close to the coast. As the coastline erodes there is increase risk of flooding in Barbados, and as an effect there has been an overwhelming volume of water entering the wastewater systems for treatment. It is envisioned that there can be an opportunity to recycle and reuse this water to combat the current situation of water scarcity under this proposed project. 4. Under previous conditions, with proactive and innovative preventative maintenance and planning, wastewater management funding allocations were sufficient. However, the wastewater situation in Barbados, in recent times, has been declared a national crisis and the BWA has been actively trying to secure funding to carry out additional climate change adaptation measures and improve the sewer network of the south coast and Bridgetown system. To this effect, the borrowing capacity of the BWA is at its maximum at this time and the government is doing all that is possible to assist with the current crisis. However, there are certain climate change elements that are proving to be necessary for adaptations to the changing climate that will be required for the future as projections8 indicate. 5. Through this project, it is envisioned that there could be reversal or thwart of the projected deterioration of tourism infrastructure due to water quality and quantity. This project has the potential to significantly impact the population of Barbados (ca. 284, 996 in 2016)9 and tourists (ca. 6100,000 in 2016)10. This project also is in line with the national programming of Barbados, as it can directly contribute to the Barbados Tourism Master Plan 2014-2023.11 This project also has the potential to be the key driver for the implementation of the Draft Water Reuse Act (2006) as there has been a protracted hesitation to move beyond the draft stage. The CCCCC and the BWA could therefore, through this project, be the institutional drivers at the regional and national level to develop water reuse awareness campaigns to champion the possibilities of water security alternatives to assist SIDS and other Caribbean countries. 6. The strategic action of public awareness that can be achieved through this project also has the potential to not only inform the public about water scarcity and reuse, but it also has the potential to strive towards educating the public about additional Sustainable Development Goals that are associated with proper wastewater management practices and proper reuse thereof. Unsafe wastewater management practices can result in an increase in the pest population, which directly impacts the incidence of vector borne diseases. This project has the capacity to increase awareness of safe water and wastewater management and disposal, therefore impacting directly on the public human health sector of Barbados. The studies that are proposed to be conducted in this study will therefore be able to not only let the local and tourist population become more aware of the abovementioned issues, however, it is anticipated that a behavioural change can be achieved through proper sensitization of these important issues. 7. It is therefore critical that the GCF PPF be accessed for this Project Preparation to: 8. Substantiate that the project is technically and financially viable with respect to climate change adaptation and mitigation actions that will be required under the mandate of proper project indicators including subsequent investment and sustainability of the future wastewater management protocols and practices with reduction, recycling and reuse at the core. 9. Corroborate the institutional knowledge of the suggested wastewater management strategy for the future of wastewater treatment through the execution of efficient and encompassing studies to validate the soundness of the proposed project. 10. Access and Enhance the potential of the project to contribute to major climate change adaptation and mitigation actions that have direct effects on achieving sustainable development goals as set out by the United Nations, especially those that relate to climate change. The execution of the feasibility study is therefore imperative in the Barbados case owning to the fact that the baseline scenario should be fully developed for the wastewater sector in order to holistically analyse the best possible options for the future of water reuse in Barbados. It is also anticipated that the results can have an important contribution to other SIDS and Caribbean countries. In addition, this can also be very important to produce information that can be useful to drive the reduction of fossil fuel use for wastewater treatment that contribute to CO2 emissions. 11. Cultivate an environment to advance behavioural change and therefore bring about paradigm shift that focuses on the evolution of thoughts, perceptions, and values of wastewater reduction, recycling and reuse that is incorporated in the proposed project. 12. Provide and enabling environment for the ratification of theories, laws, rules, models, concepts and key definitions that are necessary for a national paradigm shift to be achieved. Moreover, to ensure that the paradigm shift through various consultations with the public can be achieved as gender studies are conducted, especially in vulnerable

8 Winston Ricardo Moore, 2010. The impact of climate change on Caribbean tourism demand. Current Issues in Tourism Vol. 13, No. 5, pp 495–505. 9 The World Bank Group, Data 2018. Country Profile: Barbados. https://data.worldbank.org/country/barbados 10 The Barbados Statistical Service 2018. http://www.barstats.gov.bb 11 Barbados Tourism Master Plan 2014-2023: Report II: The Environment. Ministry of Tourism and International Transport, Government of Barbados 2014.

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communities. This can provide information that is not currently available to ensure that this project incorporates the GCFs gender policies for project proposals and their subsequent implementation. 13. Ensure that the proposed project conforms to the legal framework of Barbados and to ensure that the legal gaps are filled to ensure that this project can provide policy suggestions to the Government of Barbados to move towards sustainable development in the water reuse protocols through compliance.

D. Implementation Arrangement

(Please include information on implementation arrangements for proposed Project Preparation activities. Please provide TORs for all consultants to be contracted with PPF activities.) 14. For the smooth and effective running of the Project preparation activities as outlined in section B. Description of Project Preparation Activities, the preparatory processes will be conducted by first the development of the activity (1). Based on the output from activity (1.1), then activities (1.2), (2.1), (2.2) and (2.3) will be conducted in a staggered arrangement thus to learn from the previous study. In this manner, the information that will be gathered from these four activities will then work in a triad manner to provide auxiliary data that will be beneficial for the targeted audience, thus, increasing the reliability of the results obtained from the studies. Activity (3), will then utilize the critical information from activities (1) – (3), thus ensuring that the financing and risks component of the preparation facility is not only chronological, but also analogous with the aforementioned activities. Then based on the completed activities, project management will ensure that the development of the overall project design and scope of adaptation and mitigation works are conducted. Based on the information from the ‘Identification of Project Indicators’, activity (4), the development of the legal documentation and ‘Financial Model and Financial Plan’, activity (5), will be a staggered during the preparation stage when necessary. The development of the logic framework can also occur simultaneously. Conducting the stakeholder consultations will give the stakeholders the chance to have their input into the master project plan; however, the information obtained from the studies will be used to assist the stakeholders towards reasonable or informed ratifications. Finally the information from all the previous activities will be utilized to ensure that the final Funding Proposal document is prepared according to the requirements of the GCF. 15. The funds to be provided for this initiative will be managed in accordance with the terms and conditions of Readiness Framework Agreement between the Caribbean Community Climate Change Centre (CCCCC), and the Green Climate Fund (GCF). The CCCCC will also be responsible for reporting on the progress of the implementation of all envisaged activities. Funds received according to an agreed disbursement schedule will be placed in a separate designated account established exclusively for the purpose of implementation of this PPF. The CCCCC will follow internationally acceptable financial standards in the management of all funds received under the PPF. As an accredited entity of the GCF, CCCCC will also act as delivery partner. The CCCCC will identify a designated Project Manager who will serve as the principal interlocutor for the purpose of implementation of this initiative which role shall encompass inter alia ensuring that envisaged activities are progressing as per work plan and budget; coordinate the project’s financial management and related reporting to ensure all necessary information is provided in a timely manner; Be integrally involved in overseeing the process of contracting the services to be performed; oversight of the conduct of envisioned studies. The PM has a coordination role across all committees and units. 16. The CCCCC will be responsible for all fiduciary (banking, procurement and hiring an independent auditor at the end of the project to audit the project). The CCCCC will procure all services for the project using international best practice and the appropriate procurement method. The independent auditor to be hired must have proven track record and will be ranked among the top 10 national auditors. 17. A system of quarterly reporting will be employed during the period of implementation. This report will detail both technical accomplishments and financial expenditure at that time. Additionally, there will be a final report at the end of the period of implementation. This report will also be accompanied by the final project financial audit to be completed by an Independent and accredited auditor. All records on this project will be kept for at least five years for review by the GCF or its authorized bodies after project completion.

E. Budget12 Details and Disbursement Schedule Detailed budget was removed due to confidential information

12 “Sub-total cost” must be provided for each activity, and broken down by the “cost categories” (e.g. Consultants, Travel, Equipment, Training & workshops, Others). Please provide sufficient breakdown of costs to enable effective review.

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Project/Programme Title: THE R’s (REDUCE, REUSE AND RECYCLE) FOR CLIMATE RESILIENCE WASTEWATER SYSTEMS IN BARBADOS (3R-CReWS)

Country(ies): BARBADOS/ CARIBBEAN

National Designated Authority(ies) (NDA): MINISTRY OF FINANCE AND ECONOMIC AFFAIRS

Accredited Entity(ies) (AE): CARIBBEAN COMMUNITY CLIMATE CHANGE CENTRE

Date of first submission/ version number: [2017-MM-DD] [V.0]

Date of current submission/ version number [2017-MM-DD] [V.0]

PROJECT / PROGRAMME CONCEPT NOTE Template V.2.0 GREEN CLIMATE FUND | PAGE 1 OF 15

Notes • The maximum number of pages should not exceed 12 pages, excluding annexes.

Proposals exceeding the prescribed length will not be assessed within the indicative service standard time of 30 days.

• As per the Information Disclosure Policy, the concept note, and additional documents provided to the Secretariat can be disclosed unless marked by the Accredited Entity(ies) (or NDAs) as confidential.

• The relevant National Designated Authority(ies) will be informed by the Secretariat of the concept note upon receipt.

• NDA can also submit the concept note directly with or without an identified accredited entity at this stage. In this case, they can leave blank the section related to the accredited entity. The Secretariat will inform the accredited entity(ies) nominated by the NDA, if any.

• Accredited Entities and/or NDAs are encouraged to submit a Concept Note before making a request for project preparation support from the Project Preparation Facility (PPF).

• Further information on GCF concept note preparation can be found on GCF website Funding Projects Fine Print.

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A. Project / Programme Information (max. 1 page) A.1. Project or programme ☐ Project

☐ Programme A.2. Public or private sector

☐ Public sector ☐ Private sector

A.3. Is the CN submitted in response to an RFP?

Yes ☐ No If yes, specify the RFP: ______________

A.4. Confidentiality1 ☐ Confidential Not confidential

A.5. Indicate the result areas for the project/programme

Mitigation: Reduced emissions from:

☐ Energy access and power generation

☐ Low emission transport

☐ Buildings, cities and industries and appliances

Forestry and land use Adaptation: Increased resilience of:

Most vulnerable people and communities

Health and well-being, and food and water security

Infrastructure and built environment

Ecosystem and ecosystem services

A.6. Estimated mitigation impact (tCO2eq over lifespan)

40,360 t CO2 eq

A.7. Estimated adaptation impact (number of direct beneficiaries and % of population)

60-70%

A.8. Indicative total project cost (GCF + co-finance)

Amount: USD 49,000,000

A.9. Indicative GCF funding requested

Amount: USD 39,000,000

A.10. Mark the type of financial instrument requested for the GCF funding

Grant ☐ Reimbursable grant ☐ Guarantees ☐ Equity ☐ Subordinated loan ☐ Senior Loan ☐ Other: specify___________________

A.11. Estimated duration of project/ programme:

a) disbursement period: 5 years b) repayment period, if applicable:

A.12. Estimated project/ Programme lifespan

This refers to the total period over which the investment is effective. 5 years

A.13. Is funding from the Project Preparation Facility requested?2

Yes No ☐ Other support received ☐ If so, by who:

A.14. ESS category3 ☐ A or I-1 B or I-2 ☐ C or I-3

A.15. Is the CN aligned with your accreditation standard?

Yes No ☐ A.16. Has the CN been shared with the NDA? Yes No ☐

A.17. AMA signed (if submitted by AE)

Yes No ☐ If no, specify the status of AMA negotiations and expected date of signing:

A.18. Is the CN included in the Entity Work Programme?

Yes No ☐

A.19. Project/Programme rationale, objectives and approach of programme/project (max 100 words)

Brief summary of the problem statement and climate rationale, objective and selected implementation approach, including the executing entity(ies) and other implementing partners.

Increased drought periods supresses Barbados’ internal renewable water resources (IRWR) as a result of Climate Change (CC). In addition, scarce annual rainfall occurs more frequently as hurricanes and storms cause powerful high-speed runoff that meekly contribute to IRWR, however associated stormwaters contribute to infiltration on an aging wastewater management system. With GCF support this project will replenish groundwater aquifers with treated wastewater to increase water and food security (WFS). Support from the AE, CCCCC, will ensure implementation of adaptation measures to: (1) educate Barbadians and visitors about CC and WFS, (2) reduce wastewater treatment CO2 emissions (3) build climate resilience in the wastewater treatment process.

1 Concept notes (or sections of) not marked as confidential may be published in accordance with the Information Disclosure Policy (Decision B.12/35) and the Review of the Initial Proposal Approval Process (Decision B.17/18). 2 See here for access to project preparation support request template and guidelines 3 Refer to the Fund’s environmental and social safeguards (Decision B.07/02)

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B. Project / Programme details (max. 8 pages) B.1. Context and Baseline (max. 2 pages) Describe the climate vulnerabilities and impacts, GHG emissions profile, and mitigation and adaptation needs that the prospective intervention is envisaged to address. 1. The impacts of Climate Change to Barbados (B’dos) have negatively influenced the availability of water to the island and as such, have increased the climate vulnerability of its population, especially small farmers and entrepreneurs. Of these, the impact of drought has made a significant impact on B’dos, which is now ranked one of the 15 most water stressed countries worldwide.4 Drought in Barbados has affected the agricultural sector by reducing crop yields and productivity. In addition, also causing premature death of livestock and poultry. It is estimated that the situation in Barbados is so dire, that a dry-spell of only 7-10 days has the potential to reduce yields, thus influencing the livelihoods of farmers and increasing their climate vulnerability.5 2. Over the past 6 years, B’dos has experienced drastically decreasing groundwater levels and elevating salt concentrations. Potable water production has reduced by as much as 3 MiGD during the most severe drought periods.6 3. Increased salinity has also afflicted B’dos and unprecedented increased salinity has been recorded in a number of wells, as a result of saline intrusion.7 During droughts Barbados experience decreasing underground recharge rates of its aquifers, further increasing salt concentrations, which provide 95 % of the island’s potable water.8 4. Increased flash-flooding magnitude and frequency has caused havoc in B’dos. In December 2016 B’dos experienced over 6 inches of rainfall in a couple hours, which was only previously observed in 1995 and this contributed to the failing of the sewerage system. 5. In B’dos the annual dengue mortality rate per 100,000 people has increased by 31.1% since 1990, and is classified as endemic.9 B’dos’ subtropical climate favours the transmission of tropical diseases such as malaria, dengue, filariasis and schistosomiasis.10 However, in recent years B’dos has experienced high incidences of vector borne and waterborne diseases that were attributed to changes in temperature (+0.7°C - +4.0°C) and rainfall patterns and linked to events such as dry season droughts and wet season flash flooding. It is projected there could be even more of an increase in water-borne diseases, due to limited water availability and wastewater sanitation. 6. Sea-level rise for Barbados is projected at ca. 5 to 10 mm/yr and is complicated by vertical crust changes due to tectonic processes, thus decreasing the utilization of coastal aquifers.11 Excess nutrients contribute to nutrient loading in near-shore environments and negatively impact B’dos’ natural coral reef defence barriers. Moreover, there has been movement of the coastal topography due to coast and beach erosion, and this is likely to be exacerbated by sea-level rise, that threaten tourism which is important to livelihoods, especially those in the fisheries industry. The coral reefs function as natural breakwaters along the coasts of B’dos. They also provide habitats for marine animals and reef fish, generating significant revenues for many island economies through tourists interested in snorkelling and scuba diving. 7. The climate impacts of sea-level rise, increase in seawater temperatures, increased nutrients in the near shore environment and beach erosion have negative impacts for the beaches and near shore environment of Barbados. These climate impacts makes the tourism and fisheries industry; and near shore environment at increased climate vulnerability due to beach erosion, decrease in natural coastline defence (coral reefs, mangroves etc.) and instability of near shore ecology. The tourism sector in Barbados employs about 26, 000 persons or about 9% of the total population. Therefore these impacts show the direct link to livelihoods of Barbadians. This is further exacerbated owning to the fact that tourism indirectly contributes to about 40% of Barbados earnings. In addition, it must also be noted that this may be linked (as tourism jobs decrease) to poverty, as over the past couple of years, poverty in Barbados has increased to about 17.5% of the total population.12 8. It is widely understood that much tropical biodiversity is unlikely to survive without adequate above ground freshwater sources, that are reduced due to the decrease in the islands changing topography due to land movement that therefore reduces the ability of the land to retain and maintain the surface waters that support these natural aquatic habitats for these species. To this effect recycling and reuse of water may be necessary to provide water courses for the

4 Cashman, A. (2014). Water security and services in the Caribbean. Water, 6(5), 1187-1203. 5 Barbadian farmers, especially small farmers, are becoming increasingly vulnerable to drought as their livelihoods are threatened by low rainfall where crops are rainfed and by low water levels and increased production costs due to increased irrigation. Their livestock grazing areas change in nutritional value, as more low quality, drought tolerant species dominate during extensive droughts, causing the vulnerability of livestock to increase. The potential for livestock diseases also increases. http://www.fao.org/americas/noticias/ver/en/c/419202/

7 Emmanuel, K., & Spence, B. (2009). Climate change implications for water resource management in Caribbean tourism. Worldwide Hospitality and Tourism Themes, 1(3), 252-268. 8 The poor are vulnerable as food price increases are often associated with drought. Expensive, desalinated water resources are becoming more important in the Caribbean, and this can impact the poor significantly. Rural communities are vulnerable since potable water networks are less dense and therefore more heavily impacted during drought, while children are at highest risk from inadequate water supplies during drought. http://www.fao.org/americas/noticias/ver/en/c/419202/ 9 Torres, J. R., Orduna, T. A., Piña-Pozas, M., Vázquez-Vega, D., & Sarti, E. (2017). Epidemiological characteristics of dengue disease in Latin America and in the Caribbean: a systematic review of the literature. Journal of tropical medicine, 2017. 10 Water scarcity carries a range of health risks in Barbados. These are related to the following: (a) Reduced amounts of water available for basic hygiene (e.g. water- washed diseases); (b) Chemical and microbial contamination as a result of increased drought; (c) Gastrointestinal diseases. In addition, water scarcity may result in water-storage and vector-borne diseases. Barbados has the highest incidence of dengue in the world. Rainwater storage as a response measure to lack of freshwater provides breeding sites for the disease vector of dengue, the Aedes aegypti mosquito. http://www.who.int/globalchange/projects/adaptation/PHE-adaptation-final-Barbados.pdf 11 Farrrell, D., Nurse, L., & Moseley, L. (2007). Managing water resources in the face of climate change: A Caribbean perspective. UWI. 12 http://www.cbc.bb/index.php/news/item/2059-poverty-on-the-rise-in-barbados

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seasonal birds and other migratory organisms that require inland aquatic habitats. This action is in line with the National Biodiversity Strategy and Action Plan of B’dos 2010. 9. B’dos has a total GHG emission value of ca. 3.36 MtCO2 eq., which represents ca. 11.86 MtCO2 eq. per capita. Over the past 25 years, there has been a total change of ca. 18.11% of the GHG emission value for Barbados. 10. As a result of drought conditions the Barbados Water Authority (BWA), imposed restrictions on the use of potable water. However, to date there is no indication as to whether the measure has been able to deliver the results of improved management of IRWR. Agriculture continues to compete with other sectors for scarce resources such as water, land, labour and capital. In light of this, the Government of B’dos has increased its call for greater domestic food production through new and improved methods of farming as a response to climate change. To this end, the need for the reduction of the stress on the potable water resources can be achieved through the recycling and reuse of tertiary treated wastewater, thus aiming to provide improved food security for B’dos. Please indicate how the project fits in with the country’s national priorities and its full ownership of the concept. Is the project/programme directly contributing to the country’s INDC/NDC or national climate strategies or other plans such as NAMAs, NAPs or equivalent? If so, please describe which priorities identified in these documents the proposed project is aiming to address and/or improve. 11. The following policies have been adopted as national priorities: Medium Term Growth & Development Strategy: 2013 – 2025 and the B’dos Sustainable Development Policy. This adaptation planning is aligned to the CARICOM Regional Framework for achieving Development Resilience to Climate Change Implementation Plan 2011–2021. In addition, climate adaptation and mitigation actions are incorporated into the following: Physical Development Plan; White Paper on the Development of Tourism in Barbados and National Adaptation; Coastal Zone Management Plan; Storm Water Management Plan. 12. Moreover, B’dos is taking an ambitious and proactive approach towards reducing its own GHGs emissions by introducing firm adaptation and mitigation actions, which include the de-carbonization of the electricity grid and reduced emissions from other sectors. B’dos’ Green Economy Scoping Nationally Appropriate Mitigation (GESNAM), form the backbone of the future Intended Nationally Determined Contribution (INDC). 13. The sectors identified as most vulnerable to climate change are agriculture, fisheries, tourism, water, human health, coastal resources and human settlements. Climate change will also impact vulnerable groups disproportionately, including youth and gender groups, which are cross-cutting concerns in B’dos’ national development planning. 14. The planning and implementation of various actions and other initiatives to reduce GHG emissions and green its economy, which include inter alia: (a) NAMA at the national level, presenting a list of viable projects to reduce GHG emissions and has provided a CDM Program of Activities and is included in the draft energy sector NAMA; (b) Caribbean Hotel Energy Efficiency and Renewable Energy Action Advanced Programme (CHENACT) project, associated with promoting energy-efficiency and renewable energy in the tourism industry for the country; (c) National Sustainable Energy Policy and associated SEF providing top-down contributions for the energy and transport sectors; (d) CARICOM Declaration For Climate Action, calls for a legally binding commitment at COP21 for enhanced provisions for vulnerable countries and the adoption of the limiting of long-term the global average temperature increase to below 1.5°C above pre-industrial levels; (e) Energy and Information and Communication Technologies project, which is focused on developing human capital, while encouraging gender equality, to meet the expected future demand for technicians, professionals and entrepreneurs in the sustainable energy and information and communication technology sectors; (f) Resource Efficient Low Carbon and Circular Industrial Partnership Platform for Catalyzing Eco-Innovation and Entrepreneurship in Barbados (RECIPPEE-Barbados) is a new partnership between the Government of Barbados and the United Nations Industrial Development Organization (UNIDO) which will help Barbados advance a number of its development priorities, including building a resource efficient green economy through inclusive and sustainable industrial development; (g) Major contributions by the private sector in installing solar PV and other renewable energy in response to global energy prices, declining renewable energy technology costs and government fiscal incentives.13,14,15 Describe the main root causes and barriers (social, gender, fiscal, regulatory, technological, financial, ecological, institutional, etc.) that need to be addressed. 15. Social responsibility of the GOB to provide affordable water for all through tarrifs, as B’dos is water scarce country and as a growing aging population, demand increase for potable water and proper WMS is inevitable. 16. At present, Barbados is facing a financial dilemma as it is increasing difficult to secure funding in the form of loans from international bodies since Barbados is yet to recover from the financial crisis. 17. B’dos WMS collapsed in Dec. 2016 as an unprecedented volume of floodwater infiltrated the system. Due to tech. barriers, there is limited data available on the exact flows and volumes that the WMS can accommodate. 18. Climate change has placed significant strain on the stressed IRWR. As a result, the BWA established a WWD to properly manage the wastewater problems of the country. 19. The population of Barbados is ca. 286,000 and the livelihood of the population is highly dependent on the tourist industry. Barbados recorded 1,204,243 tourist arrivals in 2014 and in 2015 this number increased by 8.2% to 1,303,272. As the population of Barbados increases coupled with the increase in the number of tourist arrivals to Barbados it will be therefore necessary for Barbados to not only develop their current wastewater management practices but also implement

13 Emmanuel, K., & Clayton, A. (2017). A strategic framework for sustainable water resource management in small island nations: the case of Barbados. Water Policy, wp2017137. 14 Mueller, L., & Bresch, D. (2014). Economics of climate adaptation in Barbados–facts for decision making. Safe Havens: Protected Areas for Disaster Risk Reduction and Climate Change Adaptation, 15. 15 Robinson, S. A. (2017). Climate change adaptation trends in small island developing states. Mitigation and Adaptation Strategies for Global Change, 22(4), 669-691.

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new technologies and identify new sources of water that can be used to recharge the underground aquifers to be later used as potable water after proper treatment. 20. However, even though the future potential stresses pose a threat to the water sources, the regulatory practices and quality of potable water in Barbados is generally viewed as being above average in the eastern Caribbean. Where relevant, and particularly for private sector project/programme, please describe the key characteristics and dynamics of the sector or market in which the project/programme will operate. 21. Growth during the period 2008-2014, the average real GDP growth rate was -0.3%; however, in 2015, there was some recovery as real GDP grew by 0.8%. Although Barbados recorded positive real GDP growth in 2015, its trade balance was -US$1,135 million. In 2014, the B’dos’ balance of payment account was reported at -US$248 a worsened position from 2010 when the balance of payment was –US$236 (UNData, 2016). 22. The current economic environment does not leave much fiscal space for public sector spending and as note the capital market remains cautious. Furthermore, although this project returns significant benefits to the society, the cash flow implications for BWA are not favourable at least in short term. Additionally, the activities proposed under this project are just a subset of the work needed to fully provide climate resilience to BWA’s operations but to ensure that the basic water commodity is available to the population through replenishing underground aquifers with added wastewater sanitation. 23. The IMF report of 2016 noted that, “…while favourable external developments have provided some room for manoeuvre, Barbados remains highly vulnerable and may not realize its potential without deep-seated reforms to align revenues and expenditures, and reduce debt...to reverse large increases in debt and place it on a downward trajectory, the mission recommends fiscal adjustment of at least 3.5 percent of GDP over the next three years…This adjustment would put the debt ratio below 100 per cent by FY2019/20 (about the FY2014/15 level), and, if sustained, would shift the trajectory solidly downward...” 24. The effects of climate change are becoming more prevalent in Barbados. Between 1970 and 2000, the Caribbean region suffered direct and indirect losses estimated between US$700 million and US$3.3 billion due to natural disasters associated with weather and climate events. B.2. Project / Programme description (max. 3 pages) Describe the expected set of components and activities to address the above barriers identified that will lead to the expected outcomes. 25. B’dos can no longer ignore the overwhelming impacts of climate change, as these effects are increasingly impacting our lives annually. As such, this proposal seeks to adapt to the effects and associated impacts of climate change and to also implement measures of mitigation. Therefore, It has been identified that the treatment and reuse of wastewater for aquifer recharge16, agriculture, animal and auxiliary water purposes can significantly reduce the strain on our decreasing internal renewable water resources (IRWR).17 The GOB has started to restrict the use of potable water for essential uses in an effort to mitigate the loss of IRWR, however, to date it is unclear whether this measure has not been able to deliver the results to significantly manage the IRWR to the customary volumes and water quality (increased salinity due to saline intrusion) is achieved. Hence, through a concerted effort this project proposes to not only support the adaptation of Barbados to the drought pattern recently observed, but to also reduce our carbon footprint and GHGs emissions and also serve as a practical example for Caribbean for WMS, treated wastewater reuse and aquifer recharge through the enhancing of the wastewater treatment process to the tertiary level. In addition, the roof surfaces of the building infrastructure will be used to collect rainwater. The rainwater harvesting (RWH) will contribute to building climate resilience by increasing the capture of water to be used for aquifer recharge, thus reducing surface water runoff into the nearby shore environment. This project is proposed to take the level of treatment at both treatment plants to tertiary level.18 Currently, there is a dire need to increase the barrier between saltwater and freshwater with respect to saline intrusion in our underground aquifers; thus, the boreholes19 at the BTSTP and the SCSTP will be used to combat saline intrusion into the aquifers. In addition, water will be reused for non-potable purposes, for example in agriculture, groundwater recharge animal husbandry practices. The diagram below illustrates the concept of the proposed treatment process:

16 The purposes of aquifer recharge and groundwater recharge is using reclaimed water that has been treated to the tertiary level. The reclaimed water can be used to (1) establish saltwater intrusion barriers in coastal aquifers, (2) provide further storage for future reuse, (3) augment potable and non-potable aquifers, (4) provide storage of reclaimed water for subsequent retrieval and reuse and (5) control or prevent ground subsidence. These have been outlined in the Water Reuse Policy Paper of Barbados 2013. 17 Augmentation of potable water supply: treated wastewater is mixed with surface and/or groundwater, and the mix typically receives additional treatment before entering the water distribution system. Direct reuse us defined as the introduction of wastewater directly into a water distribution system without the intervening storage (pipe-to-pipe). Both such sources of potable water are, at face value, less desirable than using a higher quality source for drinking. 18 The treatment objectives of this project are to enable both WWTP to achieve tertiary level of treatment. The capacities are expected to be around 3-5MiGD for the peak flows, with about 2 MiGD for tertiary treatment, due to volume losses during primary and secondary treatment. The secondary and tertiary suitable filtration should dictate effluent BOD/TSS in the range of 10/10 to 15/15 mgL-1 and 2/2 to 5/5 mgL-1 respectively. The treatment concept should enable the gravity sewers influent to be lifted to the influent pump station to the residuals facility. This facility will include coarse and medium screening; and grit removal units for the pre-treatment of the influent wastewater to remove inert debris, rags, plastics, and grit. The sludge dewatering facilities will also be housed in the Residuals facility. Various treatment technologies as mentioned in the concept note will be used in the secondary and tertiary treatment processes. Oxidation facilities will be used to improve the activated sludge process with secondary clarifies to increase removal of BOD, TSS and NH3 to remove these nutrients before they are transported for tertiary treatment. The treatment process will provide reliable, robust biological treatment, can readily handle peak flows and loadings, and is easy to operate and maintain. 19 There are currently two boreholes at the BTSTP and 6 boreholes at the SCSTP.

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Figure 1. Concept of Proposed Treatment Process

26. With regards to the use of water throughout the entire process, there are two potable options for water reuse: direct potable reuse (DPR) and indirect potable reuse (IPR). Therefore, the education component 1 is important to ensure that the general population of Barbados buys into DPR and IPR. Understanding that this will need an island-wide paradigm shift it is proposed that IPR be employed first, with a gradual shift to DPR. IPR and DPR in this project refer to the reuse of water more than once to expand a community’s available water supply. The RAFF component of WSRN S-Barbados would allow the vulnerable persons to adapt their water supply fixtures for DPR and IPR supply. With respect to the environment, the reclaimed water can be used to (1) establish saltwater intrusion barriers in coastal aquifers, (2) provide further storage for future reuse, (3) augment potable and non-potable aquifers, (4) provide storage of reclaimed water for subsequent retrieval and reuse and (5) control or prevent ground subsidence.

27. To ensure that these objectives are achieved the following main components have been identified: Component 1. Re-education of persons living in Barbadian Communities and Visitors through community based training and education 28. The re-education targets the general population and visitors to Barbados with special emphasis in vulnerable areas of the country that are at a high risk for being impacted by the effects of climate change with respect to rising sea levels. Most of these areas are along the south and west coast of Barbados, and are analogous with the locations of the hotel areas on the island. Over the past few years, the island has seen a change in tides around the island and as a result there has been significant beach erosion that has further impacted the vulnerability of the hoteliers and the visitors, in addition to the local villages in these areas. Therefore, there is the need to adapt the wastewater sewer network and treatment process of these sewered districts. However, to achieve better wastewater management, a component of climate change adaptation strategies, proper education or re-education is highly desired. It is estimated that the persons to be immediately impacted by the re-education will be approximately 20% of the population. The interaction with citizens at the community levels and the delivery of public messages and presentation will reach a broad spectrum of persons living and working in communities, as well as short and long stay visitors to the island. This interaction also opens the channel for dialogue and enhancement of the knowledge base, through public seminars and lectures, where persons throughout Barbados can participate and contribute to the way forward in the reduction, reuse and recycling of wastewater. Education and awareness, also through the social media, courses and school programmes will not only build capacity but also allow for entrepreneurial activity. Primarily, communities in the close proximity of the treatment plants will be using the treated wastewater directly, due to the distance from the treatment plant, since these areas are very densely populated will use the recycled water (IDR and DPR). These areas are the communities of vulnerable persons especially in the Bridgetown area, where there are high instances of poverty stricken areas. Coupled with the expected results of the RAFF, the water will be used for non-potable purposes. Additionally, it is expected that hoteliers, government offices and other businesses will retrofit their plumbing to allow for the use of recycled water for non-potable purposes. 29. Activities to achieve the objectives of component 1: (1) Re-educate the general population about climate change and wastewater management and get their contribution, (2) Reinstruct all persons utilizing the sewer network on the proper practices to maximize climate resilient results and (3) Provide proper education for the reduction, reuse and recycling of wastewater. Component 2. Resilience building of the Wastewater Treatment Process 30. Currently, in Barbados there are two treatment plants in operation. The BTSTP presently treats wastewater to the secondary stage and the SCSTP has the capacity to treat wastewater to the primary stage. By building resilience of the wastewater treatment process, with secondary treatment process at both plants, this project proposes to employ environmentally friendly bioreactors (BRs), micro-organisms generating bio-hydrogen and biogas and subsequent harnessing of energy using fuel cell technology to effectively treat the wastewater and simultaneously strive for a net zero energy consumption. This will therefore aim to reduce the overall carbon footprint of the process, as the bacteria in the activated sludge process would be used to generate energy, captured as electrons, to drive the process.

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31. The use of electro-genic bioreactors will convert the chemical energy in the organic matter in the wastewater to supply the microbial fuel cells. 20 The electro-genic bacteria such as Shewanella, Geobacter, etc. act as biological catalysts to decompose the glutens in the water. 32. The use of naturally occurring algal Consortiums can be grown easily in urban wastewater. These communities can remove the macronutrients associated with N and P, which contribute to the COD. After nutrient depletion, sugar induction process can occur in a photobioreactor 21 and thereafter the stressed biomass can be converted into biohydrogen (bioH2), which is a clean energy carries, produced through dark fermentation by Enterobacter aerogenes. 33. The coupling of these processes to also produce fuel during the anaerobic digestion in the wastewater sludge treatment process can also contribute to increase in water effluent quality, but also contribute the decreasing CO2 emissions if used to drive the WWT process. This can be viewed as a renewable energy source as the population continually generates wastewater. Also, the carbon content of the treated sludge will be further reduced of COD. 34. To achieve the usefulness of these technologies to improve the wastewater treatment process, there will also be an element to retrofit the existing infrastructure to adapt to the increasing challenges of climate change. The retrofit of the existing infrastructure will allow for the installation of the bioreactors, fuel cells and allow for incorporation of vortex technologies to supply oxygen to drive the electricity generation process. In addition, coupled with the PV system as a way to mitigate the GHG and to reduce CO2 emissions, climate proofing will also be conducted to ensure that the installed PVs are not lost to future extreme weather events as category 4 and category 5 hurricanes are more frequently impact the Caribbean region now. 35. The WWD has started the process of reducing the carbon footprint of the WWT process by the implementation of a 150kW PV system at the BTSTP. However, the use of waste that passes through the system to generate biogas would be advantageous as during this stage of treatment the complex substances can be converted to hydrocarbons therefore increasing the quality of the effluent that is discharged into the environment. Thus, ensuring that the overall process, from primary to tertiary treatment, continues to have a lower environmental impact that can contribute to the green sustainability of the project. To ensure the proper function and maintenance of this process training courses, seminars and conferences would be extremely necessary to ensure that after implementation of the project the WWT process continues to work to maximum efficiency in order to meet the demands of the island. 36. Currently, storm water infiltration into the sewer network from increased flash flooding and increased magnitude of water during these events cripple the wastewater network to adequately transport wastewater, therefore technologies will also be employed to ensure that there is reduced storm water infiltration into the existing sewer network. 37. Activities to achieve the objectives of component 2: (1) Reduce the fossil fuel energy consumption and thus CO2 emissions, (2) Build climate resilience in Barbados through adaptation of the wastewater treatment processes by means of retrofitting the wastewater treatment plants and (3) Increase resilience to the growing climate change tribulations for wastewater treatment to the tertiary level of sanitation. Component 3. Reintegration of the wastewater treatment products and by-products into practice 38. The removal and dewatering of sludge during secondary treatment to produce treated sludge that has a high content of carbon, nitrogen and phosphorous. This sludge, as fertilizer, is to be sold to the agricultural community and activated sludge is to be sold to members of the agricultural sector, hotel industry and Town and Country Planning Department of Barbados. The treated sludge is to be used in landscaping and turf maintenance of lawns, golf courses, etc.; in land reclamation and land covering to assist in controlling soil erosion and in dump covering. In this aspect, future generations of Barbados will be aware of the GCF’s contribution to the environment and also to its contribution to climate change adaptation and improving local food security through the reduction of imported commercial fertilizer to the island. Both treatment plants (BTSTP and SCSTP) are proposed to be upgraded to the tertiary level of treatment. The effluent from tertiary wastewater treatment process can be used to reduce the stain on the island’s natural potable water sources by supplementing some of the water supply of the agricultural sector and hotel industry. The treated water would then be rerouted to hotels and farms on the west coast and south coast of the island due to the close proximity of the wastewater treatment plants. This would be complimented by the purpose of component 1, which deals with the re-education of the population. In addition, the funds that would be needed to ensure that DPR and IPR activities are realized, the RAFF can assist in these endeavours. Currently there is no infrastructure to deliver treated effluent to potential users that are located in the proximity of the sewered districts or in the interior of the island. Here the possibility of developing a spin-off business exists where electric-fuelled tankers can distribute this less costly, recycled water to customer. Excess effluent released into the environment would be of benefit as this effluent would be treated to a higher degree and would, therefore decrease the impact on the coral reefs on the south and west coasts of the island. The tertiary level treated effluent would now be reused for the augmentation of ground water recharge to improve the level of salinity of the water table, thus

20 Electrogenic Bioreactors (EBR) treat wastewater and produces green electricity as a by-product during the secondary stage. The EBR functions as a battery, which uses wastewater as fuel. Microbial fuel cells feeding on wastewater produce free, renewable, green energy. In the future, MFC technology will be applicable in additional environmental processes, while generating renewable energy. 21 A photo-bioreactor used in wastewater treatment is an efficient, cost effective and ecologically safe method for simultaneous detoxification of wastewater and production of microbial biomass. As wastewater is treated in the reactor, Carbon dioxide is consumed and oxygen produced overall and as the algae grows, energy rich biomass is produced. This biomass can then be used as fertilizer etc.

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improving the aquifer water quality. Currently, the BTSTP and the SCSTP have boreholes that can be utilized for the injection of the excess effluent that is not reused otherwise for non-potable water purposes. The coral reefs of Barbados provide a habitat for the local fish species and the reefs are stressed with a high eutrophication potential due to the large volume of sediments, pollutants and pathogens in our effluents. The improved quality effluent will help to ensure that these fish communities continue to have a niche and the long term effects have the potential to assist in the growth of the coral reefs and an increase in the fish population and local flora. This is essential as Barbados is a tourist attraction and due to the increase of eco-tourism in Barbados, minimizing the environmental impact on these coral reefs would also assist in the generation of foreign exchange as the majority of the hotels are located on the west and south coasts of Barbados. 39. Activities to achieve the objectives of component 3: (1) Repurpose the by-products of the secondary and tertiary level of treatment, (2) Reintegrate reclaimed nutrients into the natural nutrient cycle, (3) Replenish the potable water resources on the island and (4) Improve the effluent quality entering our marine environment. In terms of rationale, please describe the theory of change and provide information on how it serves to shift the development pathway toward a more low-emissions and/or climate resilient direction, in line with the Fund’s goals and objectives. 40. The Theory of Change (TOC) for this project is to promote a circular approach to wastewater management, utilizing the process of ‘reduce use, treat, reuse and recycle”. This will be accomplished by gaining (and further sharing) of regional international experience in adaptation to climate change of uncertain and multidirectional nature and will contribute to climate change mitigation through using solutions ensuring water saving and lower water consumption. The effects of climate change are causing increased flooding and storm water infiltration into the wastewater networks of Barbados resulting in wastewater overflow, increased fossil fuel energy consumption and CO2 emissions and increased toxic load into the marine environment. Conversely, the climate change effects are causing severe drought conditions, resulting in reduced water availability and adverse effects on food security. The drivers include greater intensity of rainfall, increased storm events and more severe and extended drought conditions in Barbados. Minimizing storm water infiltration by encouraging proper practices through public education programmes this project will strive to achieve these solutions. Maximizing climate resilience against flooding and storm water infiltration by way of adapting the wastewater management systems in Barbados. In addition, there will be improved food security by increasing public education on improving effluent quality, reducing, reusing and recycling wastewater and the use of the by-products of wastewater. Moreover, by reintegrating reclaimed nutrients, the by-products of tertiary level wastewater treatment, and returning them into their natural nutrient cycles. By reclaiming treated wastewater and redirected it to effect aquifer recharge and reducing portable water demand by increasing grey water reuse, this may serve as an effective way to increase the potable water resources. Reducing toxic loading of the marine environment and GHGs emissions by improving the quality of effluent entering the marine environment through increasing secondary and tertiary treatment of wastewater and reducing fossil fuel energy consumption and CO2 emissions by using the green energy products of wastewater are apart of the theory of change that this project is expected to bring about. Describe how activities in the proposal are consistent with national regulatory and legal framework, if applicable. 41. Under the Medium Term Development Strategy (MTDS) for Barbados the following sections have been identified that are critically addressed by this project: section 2.1 Tourism, 2.2 Agriculture, 2.6 Reduction of GHGs, 3.1 Education and Training, 3.8 Environmental Sustainability and Green Economy. These sections are aligned with the Barbados’ National Climate Change Policy, which was approved by Cabinet in May 2012. The primary goal of the policy is to establish a national process for adapting to Climate Change effects and minimizing greenhouse gas emissions over the short, medium and long term, in a manner that is coordinated and consistent with the broader sustainable development aspiration which was one of the mitigation demonstration measures approved by the Climate Change Committee. Similarly, component 1 of this project is aligned with the Barbados’ National Climate Change Policy. In addition, there will be a significant contribution to the regulatory framework and policies of Barbados through the various stakeholder involvement and active participation. Describe in what way the Accredited Entity(ies) is well placed to undertake the planned activities and what will be the implementation arrangements with the executing entity(ies) and implementing partners. 42. The CCCCC has the ability to manage projects of individual value of up to USD $50M, at present the CCCCC is effectively managing USD $40M in ongoing projects and has the capacity to manage more as there are some other projects that are soon to come on stream. The BWA has in the past managed micro-projects on the national scale, for example the South Coast Sewerage Project. The CCCCC, as the accredited entity, will be ultimately responsible for the project financial, accounting and procurement accountability. The CCCCC is the overall managing entity and will be responsible for the management of the overall funds and disbursement to BWA. The BWA is the executing entity and will manage funds for execution after approval from CCCCC. Please provide a brief overview of the key financial and operational risks and any mitigation measures identified at this stage.

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43. A political term in B’dos is 5 years and the date for the next elections is in February 2018 and latest May 2018. As such, there are some operational risks that the project may be delayed if there is an institutional restructuring at the BWA, which is a statutory organization. However, although this Is a real risk, it is currently estimated to have a <2% of total project value, as to any political party it would be advantageous to continue with the project implementation in any scenario as almost 90% of the population will be impacted by the outcome of the project. However, the risk is mainly presented in the timing that the project will be announced or facilitated by the GOB. However, this is a minimal risk but is still to be considered as the election result for the 2018 GOB is uncertain. 44. A major risk may be the possible push back from the community members during the public outreach aspect. This risk has been identified as a low risk with the total impact to the project preparation accounting for about 5% of total potential hindrance to the project. This risk has been identified as a low (<8% of total project value, with a low probability of occurrence) operational risk as the input from the community is needed to complete the social impact assessment. The mitigation measure that has been identified would be to ensure that proper public relations is conducted to ensure that the residents in the vulnerable communities understand the importance of the project and how they would be able to benefit from the proper conducting and recording of the data. In addition, social responsibility advertisements and marketing strategies can be used as a tool to increase the buy-in from the general public. Furthermore, public meetings can be conducted to ensure that the general public have the opportunity to ask questions and receive feedback on any questions that they may have and the proposed climate adaptation measures. B.3. Expected project results aligned with the GCF investment criteria (max. 3 pages) The GCF is directed to make a significant and ambitious contribution to the global efforts towards attaining the goals set by the international community to combat climate change, and promoting the paradigm shift towards low-emission and climate-resilient development pathways by limiting or reducing greenhouse gas emissions and adapting to the impacts of climate change. Provide an estimate of the expected impacts aligned with the GCF investment criteria: paradigm shift, sustainable development, needs of recipients, country ownership, and efficiency and effectiveness. Paradigm shift Potential 45. In Barbados there is a very critical need for a paradigm shift where persons understand, advise and assist in the transformational change from the linear approach of “use and dispose” to the circular approach of “reduce use, treat, reuse and recycle” for wastewater management. In addition, a paradigm shift is necessary in order to adapt the wastewater sector to the increasing and emerging effects of climate change. This project proposes a positive evolution from just meeting the minimum requirements of transporting the wastewater from the communities, but now also to ensure that the wastewater management resilience building includes (1) efficient transportation of improved effluent, (2) energy optimization and independence, (3) nutrient recovery, (4) water reuse. In this way a concerted effort can be made to increase water sanitation and to strive for high water quality standards. 46. The purpose of wastewater treatment in Barbados has not change, however, through the proposed paradigm shift it is anticipated that (a) new regulations regarding bacterial and virus contamination will emerge, (b) there will be the implementation of a multiple barrier approach for microbial control (c) new requirements from the Ministry of Environment in Barbados for ground water disinfection may be introduced (d) industry specific disinfection by-product regulations introduced and (e) the removal of an increased volume of nutrients from wastewater effluent. Thus, the paradigm shift will ensure that the purpose of wastewater treatment in Barbados changes towards adapting to the effects of climate change. 47. The paradigm shift in this project will be approached, as a foundation, the concrete problem solutions that have been accepted by the professional community. It is anticipated that this paradigm shift is going to occur on the national level, embracing all the shared commitments within the scope of the project. In addition, there will be a subset created to ensure that maximum conformity to the paradigm shift can be achieved. 48. The paradigm shift within this project comprises theories, laws, rules, models, concepts and key definitions that are fundamentally accepted by international bodies, such as the Green Climate Fund and the United Nations among others. The proposed paradigm shift focuses on a profound change in the thoughts, perceptions, and values that form the vision that is incorporated in the reality of this project. Over the past couple of years, the WHO introduced a new paradigm for sanitation management in developing countries. The conventional thinking provided that sanitary engineers with the tools of sanitation infrastructure, water infrastructure and hygiene education be their intervention tools. In addition, these tools are to be used individually or in combination throughout this project to bring about the paradigm shift. This would allow for the identification for a series of barriers and measure that would need to be implemented to implement any possible additions to the theory of change and also paradigm shift. Sustainable Development Potential 49. The potential sustainable development of the proposed project is extraordinary, as it addresses the issue of future investment by the means of building the capacity of the local community and providing avenues for business development through contributions by the local economy and the public sector. Thus, promoting the reforming of the framework conditions to make Barbados a much more attractive investment destination for not only regional tourists, but also for international tourists. With the added benefit of improved food security, this ensures that the development of the project is very viable and can be sustained over protracted periods as food is a very important commodity and over the next

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decade food security will become a very important parameter. With the onset of eco-tourism as a value added local intangible product there is a discernible sustainable development potential.

• Environmental co-benefits - There will be improved air quality in the areas of both wastewater plants. Currently based on the increased

loading on the treatment process there has been some overflows that has caused a decrease in the air quality that then can affect the soil quality and the habitats for the nearby biodiversity. Thus, by this process, it can improve the air and soil quality and subsequently improve the habitats for the neighbouring communities and biodiversity.

• Economic co-benefits - The total number of jobs created is estimated to be about 80. - The total amount of foreign currency saving is estimated to be about $USD 250, 000.00 annually and over 5

years that will amount to about $USD 1, 250, 000.00, based on the monthly savings of about $USD 20, 799.81 based on billing from January to June 2017.

- As a statutory institution of the Government of Barbados, the reductions to the Government’s budget to the BWA for energy resources would result in an annual minimum reduction of about 2.0%.

• Social co-benefits - Improved access to education will be provided in the form of hands on training and education to ensure that

skills can be transferred to the general population in the form of short internships and/or job attachments for vocational studies.

- This project will assist in the proper regulation of the liquid wastes in Barbados, for example the proper treatment and disposal of industrial wastewater.

- Improved health, safety and sanitation through this project will be provided in the form of improved sanitation for the population and also through the utilization of safe technologies to promote the movement towards internationally recognized standards for the OSH of workers.

• Gender-sensitive development impact - Gender-sensitive development is a critical component of this project as this project is very proactive to ensure

that equal opportunities are afforded to both females and males. In addition, this project will strive to ensure that at least 45% of each gender is directly employed and benefits significantly from the outputs of this project.

Responsive to needs of recipients 50. This project directly addresses the risks of reduced water resources, through wastewater recycling and reuse, associated with climate change in Barbados. This is a dilemma currently being faced by all persons in Barbados, especially those in vulnerable communities. This project pays special attention to not only non-potable water, but also to the recharge of our underground aquifers in Barbados that supplies about 90% of the potable water. There is an indication that the combination of increased temperatures coupled with reduced precipitation will significantly reduce aquifer recharge and this is compounded by the increasing concentrations of sodium chloride in the brackish water zone, which is an effect of saline intrusion catalysed by climate change. Supporting information gauging coastal flooding suggests that even though overall rainfall is likely to reduce the changes in precipitation patterns, particular increases in rainfall intensity (including the effects of tropical storms) will increase storm-water runoff. Increased storm-water run-off would divert water away from recharge and along with the water runoff there will be nutrient loading to the near-shore waters. Country ownership 51. The initial linkages to Barbados’ policy and the relevant NAPs and NAMAs have been outlined in section C.1, however a brief overview is given in this section. For this project there will be an engagement by all relevant national and community level stakeholders of Barbados, which will encompass both the public and private sector and will be facilitated through the National initiatives and the focal point in Barbados. In addition, this joint county buy-in is consistent with and complementary to the prescribed priorities of the relevant national development action strategy 2013-2020 and plan for both adaptation and mitigation. 52. Under the Medium Term Development Strategy (MTDS) for Barbados the following sections have been identified that are critically addressed by this project: section 2.1 Tourism, 2.2 Agriculture, 2.6 Reduction of GHGs, 3.1 Education and Training, 3.8 Environmental Sustainability and Green Economy. These sections are aligned with the Barbados’ National Climate Change Policy, which was approved by Cabinet in May 2012. The primary goal of the policy is to establish a national process for adapting to Climate Change effects and minimizing greenhouse gas emissions over the short, medium and long term, in a manner that is coordinated and consistent with the broader sustainable development aspiration which was one of the mitigation demonstration measures approved by the Climate Change Committee. Similarly, component 1 of this project is aligned with the Barbados’ National Climate Change Policy. Impact Potential 53. It is expected that this project can reduce about 40,300 tCO2 eq. This project, due to the net-zero energy consumption approach and self-sustaining energy requirements with minimal energy being taken from the grid for operations. In addition, this will promote the to the circular approach of “reduce use, treat, reuse and recycle” for wastewater management which also contributes to the climate change resilience. This project can serve as an example for countries in the region with respect to scaling up, as the size of this project is analogous with the requirements of

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Barbados on the south and west coasts. These areas are the most vulnerable areas on the S and W coasts of the country, however, the project can be scaled up to the entire west coast and south coast. Currently there is 180kW of PV installed, and we expect that we would be able to install a further 800kW of low-emission energy capacity. 54. With the advancement of wastewater treatment technologies, it is expected that the bioreactors, fuel cells and integrated PV systems will significantly reduce the emissions for the treatment process by the harnessing of the energy within the wastewater influent and solar energy. It is anticipated that the project will have an impact on approximately 100% of the total population of Barbados and over 80% of all tourists that visit the island. 55. With the use of advanced technologies, with the current infrastructure, the climate proofing of the current physical facility will ensure that the wastewater treatment technologies employed are climate resilient, thus decreasing the vulnerability to the changing climate. To this end, this project will contribute directly to the active deconstruction of education and technology barriers, through the community reeducation of Barbadians about the proper use of the wastewater network and the climate change adaption strategies. In addition, since the major business and socioeconomic hubs are in the sewered networks the education targets will also extend generally to the entire country as most persons in the Barbados would at some point use the sewered network and thus contribute to the wastewater influent. Efficiency and Effectiveness 56. This project promotes the paradigm shift towards the reuse of treated wastewater. Water is a basic entitlement and hence the output from this project aims to increase the water resources in Barbados. This project does not envisage capital cost recovery from Barbadians nor from visitors to Barbados, who are the direct and indirect beneficiaries of the project. As a result, a detailed financial analysis was not required to compute financial returns. However, since the impacts of climate change to the current wastewater management practices calls for immediate intervention, the Government of Barbados has already made efforts to start the discussion to increase the tariff in certain circumstances for wastewater treatment processes. Although these costs are expected to augment the financial mechanism for the wastewater division, these funds will provide the platform for the development of future projects to ensure the longevity of the country’s program for the entire duration of the project and subsequent to its implementation. 57. The instrument of funding requested for the implementation of this project is a combination of grants from the GCF and co-financing from the BWA. These funds will be used for adaptation actions; it serves the purpose creating a paradigm shift in the wastewater management practices of Barbados through a variety of mechanisms. The benefits of this project are also to create an enabling environment so that it can better deal with the looming effects of Climate Change on the wastewater management practices of Barbados. 58. The artificial recharge of treated wastewater in this project will be used, inter alia, to mitigate seawater intrusion into the groundwater aquifers. There have been dynamic studies of seawater intrusion modelled by an Saturated-Unsaturated Transport (SUTRA) computer program (Voss, 1984) that explored the use of treated wastewater for artificial recharge and this method is considered as a method to control saltwater intrusion and enhance the hydrological budget. This, when taking the water balance into account, this project provides an additional resource that can be used to ensure that the water sector has the available resources, as a holistic water entity, to provide its customers with water. Thus, increasing the financial sustainability of the water sector to support future operations and maintenance costs. Further, the use of this water for solely irrigation purposes will also ensure that there is increased food security on the island. This project therefore can be scaled up, not only in Barbados, but also in other countries to ensure that their agricultural sector can have the resources available to also increase their financial sustainability, as water would be available for them to maintain their crops. Therefore, this project presents an opportunity for Barbados to adapt to Climate Change whilst mitigating greenhouse gas emissions and building greater sustainability into the water authority’s operations. To measure the efficiency and effectiveness of this project it must be placed in the context of Barbados’ water resources and the water authority previous actions, current operations and the challenges the water authority faces going forward. 59. The main sources of Barbados’ fresh water resources are: 2 springs; 24 wells, all-ranging in depth from 119.5 to 322 feet; and, desalination. Barbados is extracting approximately 90% of it ground water sources; therefore, water produced at the Desalination Plant using the reverse osmosis process is mixed with the groundwater from the wells to complement BWA’s general supply. 60. Given the potential impact of Climate Change on Barbados water resources, the Government of Barbados and BWA recognizes that the water authority operations as is, is inadequate to cope with potential increases in the demand for water. With ground water extraction at over 90 per cent, BWA needs to increase the water available to the public. All component taken together results in a well-rounded crosscutting initiative; encompassing adaptation and mitigation actions that will benefit the entire population of Barbados. 61. The project is a worthwhile and meaningful investment as the demand for water increases. Even considering the scenario with no increase in the demand for water the internal rate of return is 19%. Economically, the project is desirable whether there are increases in demand for water or not. With benefits attributed the proposed mitigation and adaptation efforts the project benefits can assist in the tourism and agricultural sectors of Barbados. Tourism is the leading sector in the Barbados economy, accounting directly for 12% of GDP, and its indirect contribution to GDP is estimated at 40%1. The agricultural sector has suffered over the past couple of years, however, the agricultural sector accounts for ca. 6% of the GDP. C. Indicative financing / Cost information (max. 3 pages)

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C.1. Financing by components (max ½ page) Please provide an estimate of the total cost per component and disaggregate by source of financing.

Component Indicative cost (USD)

GCF financing Co-financing Amount (USD)

Financial Instrument

Amount (USD)

Financial Instrument

Name of Institutions

1 1,000,000 400,000 Grant 600,000 Loan CDB, EIB 2 34,000,000 29,300,000 Grant 4,700,000 Loan IDB, CDB, 3 14,000,000 9,300,000 Grant 4,700,000 Loan IDB, CDB,

EID Indicative total cost (USD)

49,000,000 39,000,000 10,000,000

Please note that in addition to the funding mentioned above the Government of Barbados has recently pledged USD$12,000,000 to assist in the emergency operations for the two wastewater treatment facilities in Barbados. For private sector proposal, provide an overview (diagram) of the proposed financing structure.

C.2. Justification of GCF funding request (max 1 page) Explain why the Project/ Programme requires GCF funding, i.e. explaining why this is not financed by the public and/ or private sector(s) of the country. Describe alternative funding options for the same activities being proposed in the Concept Note, including an analysis of the barriers for the potential beneficiaries to access to finance and the constraints of public and private sources of funding. Justify the rationale and level of concessionality of the GCF financial instrument(s) as well as how this will be passed on to the end-users and beneficiaries. Justify why this is the minimum required to make the investment viable and most efficient considering the incremental cost or risk premium of the Project/ Programme (refer to Decisions B.12/17; B.10/03; and B.09/04 for more details). The justification for grants and reimbursable grants is mandatory. 62. The Global Financial Crisis (2007-2012) resulted in a downturn in the World’s Economy. Like most Caribbean

countries, Barbados was not spared the impact of The Financial Crisis. Subsequent to the Crisis, growth returned to the Barbadian Economy. This can be attributed to tourism receipts and construction. Tourism is one of the driving forces behind the Barbados economy. During 2016, long-stay arrivals increased by 6% when compared to the 587,800 long-stay arrivals in 2015. Despite growth in tourism arrival, assets of international banks offering global services declined by 9% to 69 billion. Similarly, the number of international business companies declined by 5 percent, as at October 2016.

63. Given the importance of Tourism to the Barbados economy, it critical that Barbados invest substantial resources into rehabilitate its wastewater systems, which includes two treatment plants. These investments will include upgrading the network and collection facilities whilst at the same time engaging with customers to encourage optimal, effective and efficient use of the systems as well as building climate resilience into the system. This concept, 3Rs CReWS is geared towards the latter, which is critical to ensuring that the investment made by the Government of Barbados is resilient to climate variability and change. Whereas the Government of Barbados, in collaboration with the private sector, is, and continue to, investing in the development and upgrade works, however, climate change financing is needed to complement the ongoing and expects works to be carried on the wastewater systems. The Green Climate Fund (GCF) provides a unique opportunity for countries, such as Barbados, to develop and implement climate change directives to adapt to the related impacts; in this case, actions needed to build climate resilience in the wastewater systems of Barbados.

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64. Although the Government of Barbados is facing a financial dilemma, which is exacerbated by downgraded Barbados' government bond and difficulties faced in securing funds from international bodies22, there are efforts on the way rehabilitate the sewerage system. To date, the Government of Barbados have utilized funding from its budgetary allotment 23 (Fiscal), Tourism Enhancement Fund and some regional and international financing, to carry out upgrades and well needed repairs on sections of the systems24, particularly, as result of the sewage issues on the South Coast of the island which has got progressively worse over the past three years. B’dos WMS faced significant challenges in Dec. 2016 as an unprecedented volume of floodwater, linked to increased rainfall intensity in Barbados, infiltrated the system and with limited data available on the exact flows and volumes hampered sound technical responses to the issues. Some of these issues are related to climate change and the significant strain it has place on IRWR. As a result, the BWA established a Wastewater Department (WWD) to properly manage Barbados’ wastewater problems, including building resilience into the country wastewater systems.

65. The concept proposes using grant funding to build resilience into the Wastewater Systems of Barbados. As described above, the fiscal space is constraint as such public financing for building climate resilience is suboptimal. Although it might be possible to access additional resources by increasing government revenue through taxes, this could further burden the working class and private sector, which could further hurt the economy of Barbados. Further, the Barbados Water Authority (BWA), which is the public utility company in charge of water and wastewater management in Barbados, faces the challenge of managing climate variability and change impacts on, and risks to, the water production and distribution system and wastewater systems. Managing these impacts and risks includes considering has added to the operational and maintenance budget of the BWA. Although a detailed Cosy Benefit Analysis is needed, increasing water tariff could result in minimal reduction in water demand and take up of wastewater services and if such costs are passed on to consumer, this could hurt the tourism sector and more broadly the economy of Barbados. In preparing the full funding proposal, through a PPF from the GCF, a detailed financial and economic model will be presented. This is expected to further inform the financial modalities to be utilized in funding the activities outline in the project concept.

66. As part of the PPF application, funds are requested to develop a financial and economic model to fund and sustain this project in the medium- to long- term. It is expected that financial model will determine if the grant request is justifiable or whether equity or concessional financing is best suited. Additionally, it should provide a medium- to long- term outlook for the project and its encompassing activities. If it is concluded that concessional financing is appropriate, in full or part, the BWA will partner with CCCCC and CDB to articulate the full funding proposal and subsequently the implementation of this project.

67. The Project Preparation Facility (PPF) ensures that countries who would like to apply for the GCF’s funding present all the information necessary to make a fair judgment on the merits of their proposed project. In some situations, it may be unusual for some countries, such as Barbados, to have this information readily available with all the requirements that would merit a complete Funding Proposal Application (FPA). Therefore, to ensure that the 3Rs CReWS FPA would have all the studies and information available for presentation to the GCF, Barbados is therefore requesting funds from the PPF to properly conduct these studies. At present, Barbados is facing a financial dilemma as it is increasing difficult to secure funding in the form of loans from international bodies since the financial crisis that Barbados is yet to recover from. Therefore, the Green Climate Fund (GCF) provides a unique opportunity for countries, such as Barbados, to develop and implement climate change directives to adapt to the related impacts. Therefore, the PPF is vital for Barbados and to the success of the 3Rs CReWS, as Barbados moves towards building climate change resilience in the wastewater sector.

In the case of private sector proposal, concessional terms should be minimized and justified as per the Guiding principles applicable to the private sector operations (Decision B.05/07). 68. N/A C.3. Sustainability and replicability of the project (exit strategy) (max. 1 page) Please explain how the project/programme sustainability will be ensured in the long run and how this will be monitored, after the project/programme is implemented with support from the GCF and other sources. 69. This project, through GCF funding at the implementation of adaptation and mitigation phase, the people of Barbados and the region will greatly benefit from these initiatives, which the region must own. The long-term sustainability of the Project is a core consideration in the design and implementation of this proposed Project; therefore the Project will

22 In March 2017, Moody's Investors Service, ("Moody's") downgraded Barbados' government bond and issuer ratings to Caa3 and maintained a stable outlook. Source: Moody’s Investors Service (2017). Retrieved on August 5, 2018 from: https://www.moodys.com/research/Moodys-downgraded-Barbados-government-bond-and-issuer-ratings-to-Caa3--PR_362922 23 Government of Barbados has recently pledged USD$12,000,000 to assist in the emergency operations for the two wastewater treatment facilities in Barbados. 24 Amanda Lynch-Foster (2018), The South Coast Sewage Crisis: A Timeline, NationNews, Bridgetown, Barbados. Retrieved on August 5, 2018 from: http://www.nationnews.com/nationnews/news/121736/south-coast-sewage-crisis-timeline .

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be delivered through a structured approach comprising of technical assistance and policy dialogue to catalyze Barbados’ transition to a more sustainable and climate resilient wastewater sector. This project is designed in such that at the end of its implementation it will be owned by the BWA. BWA responsibility is to maintain its infrastructure, which includes those implemented under this project as well as optimally generate revenue needed to sustain its operations and safeguarding water security. Through stakeholder involvement and consultations, a wide cross-section of the society has helped to shape its components and deems it important. 70. The wastewater management practices including the ground water recharge for irrigation purposes, is a valid adaptation action. The design of this project aims to improve the ground water resources and also to combat saline intrusion as well as increase the wastewater influent quality. This would assist in the increased climate change resilience to reduce the vulnerability and sustain the project beyond the lifespan of the project, and can be viewed as a step towards attaining increased economic sustainability. In addition, the enhanced energy capturing and recovery of nutrients would enable the authority to maintain a preventative maintenance and operations programme. 71. With CCCCC as the executing entity, this project will benefit from CCCCC experience in project design, management and implementation. Additionally, CCCCC is a hub for information that will be critical to successful scale and replicate this and other adaptation and mitigation projects in the region. Since 2005, CCCCC has been coordinating The Region’s response to Climate Change as such it has wealth of information on these issues. CCCCC has helped to design, manage and implement several projects for all vulnerable sectors across The Region; therefore, prescription, policy advice and guidelines are accessible from the CCCCC repository. There are several manuals, tools and models available to help co-ordinate and build climate resilience and sustainability into The Region’s development agenda. CCCCC has experience in building climate resilience, which includes implementing renewable energy technology, in the water sector and has replicated some of these in different parts of the region. On the other hand, as an accredited entity to the GCF, CCCCC was assessed against the GCF’s fiduciary principles and standards; GCF’s interim environmental and social safeguards (ESS); and, GCF’s gender policy. Therefore, CCCCC must adhere to these guiding principles in the execution of this project. 72. This proposed project from the onset identifies scaling and replicating as important. Therefore, to truly guarantee climate resilient wastewater management practices and to augment the water security situation in Barbados in the medium to long term, several activities identified in this project proposal must be replicated and if possible scaled. The revenue and cost-cutting components of the programme should generate enough resources necessary to replicate this project (if not in its entirety some aspects such as the personal tank programme and rainwater harvesting initiatives) at least in the medium term. As for replication in other parts of the Caribbean, once the necessary funding is secured, replication could take place in the short to medium term since the CCCCC would be willing to provide guidance as well as the lessons learnt from the implementation of this project and others available from the CCCCC repository. For non-grant instruments, explain how the capital invested will be repaid and over what duration of time. N/A

C.4 Engagement among the NDA, AE, and/or other relevant stakeholders in the country (max ½ page) Please describe how engagement among the NDA, AE and/or other relevant stakeholders in the country has taken place and what further engagement will be undertaken as the concept is developed into a funding proposal. 73. The project team includes 4 core partners namely: the BWA, which is government own public utility; The CCCCC, a regional organization mandated to chart the Caribbean’s response to climate change, and UWI and USF, which are universities that work closely on research needed to inform decision making. The project team is currently in the initial stages of implementing a project. The aforementioned partners have met in person and virtually to conceptualize and complete this GCF concept note, which started in June 2017. UWI departments represented include Centre for Resource Management & Environmental Studies (CERMES), Management Systems, Chemistry, and Institute for Gender and Development Studies. USF departments represented include Environmental Engineering. During the development of this project concept note the National Designated Authority and the Ministry of Agriculture, Food, Fisheries and Water Resource Management have discussed the concept of the project. The NDA and the Ministry are supportive of this project concept. Stakeholder consultations were conducted during the first quarter of 2018 after there was a substantial internal review of the project concept note by the project team. From these consultations, the inputs made by the various stakeholders are incorporated in this concept note, which mainly included the need for public awareness in Barbados.

. Supporting documents submitted (OPTIONAL) Map indicating the location of the project/programme Diagram of the theory of change ☐ Financial Model ☐ Pre-feasibility Study ☐ Evaluation Report of previous project

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Self-awareness check boxes

Are you aware that the full Funding Proposal and Annexes will require these documents? Yes No ☐ • Feasibility Study • Environmental and social impact assessment or environmental and social management framework • Stakeholder consultations at national and project level implementation including with indigenous

people if relevant • Gender assessment and action plan • Operations and maintenance plan if relevant • Loan or grant operation manual as appropriate • Co-financing commitment letters Are you aware that a funding proposal from an accredited entity without a signed AMA will be reviewed but not sent to the Board for consideration? Yes No ☐

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SUPPORTING DOCUMENTS

Map indicating the location of the project/programme

Figure S1. Relation Map Showing Project Area

Figure S2. Map of Project Area