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Overview of Policies & Procedures in GEF 4
Sub-regional Workshop for GEF Focal Pointsin the CaribbeanNassau, Bahamas, 9-11 October 2007
Structure of this Presentation
I. GEF History and Structure
II. CEO’s Reform Agenda in GEF 4
III. Update on GEF Policies and Procedures
I. Resource Allocation Framework
II. Comparative Advantage of Agencies
III. Project Cycle
Origin of the GEF
Mechanism for financing “incremental costs” of new “global environment” actions by developing countries
Linked to negotiation process and based on philosophy of Convention on Biological Diversity and U.N. Framework Convention on Climate Change
Initially focused on biodiversity, climate change and shared (“international”) water bodies
Extended in 2002 to land degradation and POPs
Financial History of the GEF
GEF Pilot Phase• 1991-1994 -- $1 Billion US Dollars
Replenishments• 1995-1998 – $2.2 Billion US Dollars• 1999-2001 – $2.8 Billion US Dollars• 2002-2005 – $2.9 Billion US Dollars• 2006-2010 – $3.1 Billion US Dollars
World Bank is the Trustee of the GEF Trust Fund
GEF Portfolio as of June 2007, in US$ millions
$2,393.62
$2,350.21
$879.94
$212.22$621.18
$182.73$188.80 BIODIVERSITY
CLIMATE CHANGE
INTERNATIONALWATERS
LAND DEGRADATION
MULTI- FOCAL AREAS
OZONE DEPLETION
PERSISTENT ORGANICPOLLUTANTS (POPs)
TOTAL GEF GRANTS: $ 6,828.74
TOTAL CO-FINANCING: $25,081.32
TOTAL $31,165.63
GEF Governance Framework
STAPGEF
Assembly
Countries: Political FPs
GEF Secretariat
GEF Agencies
•UNDP
•UNEP
•World Bank
ADB
•AFDB
•EBRD
•FAO
•IADB
•IFAD
•UNIDO
Projects
Countries: Operational
FPs, Convention
FPs, other gov’t agencies, civil
society
Evaluation Office
Conventions
Countries: Convention FPs
GEF Council
Countries: Council
Members/ Constituencies
StrategicGuidance
Operations Action
GEF Implementing and Executing Agencies
Implementing Agencies:• UNDP• UNEP• World Bank
broad primary roles identified in the GEF Instrument
Executing Agencies:• FAO• UNIDO• IFAD• ADB• AFDB• EBRD• IDB
granted access to GEF resources and assigned more definite roles based on specific business needs of the GEF
GEF will be Strategic
Set clear priorities for the global environment • Refocus Focal Area Strategies
> Biodiversity> Climate Change (mitigation and adaptation)> International Waters> Ozone Depletion> Land Degradation> Persistent Organic Pollutants (POPS)
• Build synergies for cross-cutting issues> Sustainable forest management> Sound chemicals management
GEF Sec submitted revised strategies for review and approval at June 2007 Council
GEF will be Strategic (continued)
Promote programmatic approach• Move away from project driven approach
Develop and apply indicators of outcomes and impacts
GEF will be Innovative
Finance cutting edge and entrepreneurial efforts to establish sustainable technologies
Leverage global capital on sustainable development
Reach out to private sector at the country level
GEF will be Equitable
• Create special mechanisms by which more vulnerable countries can have easier access GEF resources
- Special focus on SIDS
• Ensure that a minimum level of resources are available to all countries under the RAF
GEF will be Accessible
Engage in direct and transparent dialogue with countries to ensure that new policies and procedures are understood
Enhance GEF’s corporate image and public communications
Improve data management system and website
GEF will be Focused
Equalize playing field among Agencies• Ensure all Agencies have direct access to GEF
resources• Engage with Agencies based on comparative
advantage
Simplify GEF project development process• Redesign project cycle• Reduce and better manage pipeline
Target resources towards countries with greater potential to generate global environmental benefits and country performance
III. Update on GEF Policies and Procedures
Resource Allocation Framework
Comparative Advantages of Agencies
Project Cycle
Resource Allocation Framework
New system to allocate scarce GEF resources to all eligible countries
Allocations are based on:
• Global Environmental Benefits
• Country level Performance
Resource Allocation Framework(continued)
Provides predictability and transparency to countries
Applies to Biodiversity and Climate Change focal areas in GEF4
Allocations under the RAF
In the Biodiversity and Climate Change focal areas:
Countries receive Individual Allocations
OR
Countries have joint access to Group resources
Allocations under the RAF
Initial Allocations are for the duration of GEF4 (2006-2010)
Only 50% of Allocation can be approved in first 2 years (2006-2008)
Allocations will be adjusted after July 2008
Programming Resources under the RAF
GEF Secretariat engages in direct dialogues with countries
Countries determine national priorities and projects for GEF funding based on GEF guidance
Countries discuss identified priority concepts/projects with appropriate GEF Agency for further development
Comparative Advantages of GEF Agencies
Implementing Agencies (UNDP, UNEP and World Bank) • broad primary roles identified in the GEF
Instrument
Executing Agencies (ADB, AfDB, EBRD, IADB, FAO, IFAD and UNIDO) • granted access to GEF resources and assigned
more definite roles based on specific business needs of the GEF
Comparative Advantages: Level Playing Field
Move towards a more level playing field among the GEF agencies
• Executing Agencies have direct access to GEF funding based on their comparative advantages
• Comparative advantage assessed by GEF
Secretariat, in consultation with the country, during the Project Concept Review
Comparative Advantages: Guiding criteria
• Increasing capacity of GEF to address new and emerging areas, and respond to country driven priorities and the requirements of the conventions
• Increasing the diversity of experience from which the GEF can draw on for innovative interventions
• Leveraging additional resources expanding the GEF’s capacity to mobilize
financial and technical resources and co-financing for its projects
Comparative Advantages: Assessment
Comparative advantages assessed based on: Institutional role and core functions as described in:
official mandate mission statement policies approved by its governing body
The agency’s actual capacity, expertise and experience • medium-term strategic plan • portfolio of completed and ongoing projects• country presence
Comparative Advantage of GEF Agencies
GEF agencies are requested to focus their involvement in GEF project activities within their respective comparative advantages
Secretariat, in agreement with country, assesses comparative advantage of GEF agency proposed to manage a project during the PIF review.
Partnerships encouraged for integrated projects with components where the expertise and experience of a GEF agency is lacking or weak.
– clear complementary roles to be established
Criteria and description of comparative advantages to be regularly reviewed by Council
– analysis of additional information and assessments of agency and project performance
– Take into account changes in an agency’s mandate or the conclusions of the UN reform process.
Revised GEF Project Cycle: Objectives
Objectives of revised new project cycle:
Reduction of processing time of project proposals from identification to start of implementation to 22 months
Greater upstream strategic programming of GEF resources
Simplified GEF process and transparency in decision making
Enhanced monitoring for results
Simplified GEF Project Approval Process
Main Features:
Consolidation of steps in project cycle Reduction in documentation
requirements
GEF Project Cycle: Stages
National Operational Focal Point endorses project idea
GEF Agencies and Countries work together on three major phases:
1.Project preparation
2.Project approval and implementation
3.Project closing and evaluation
Develop concept
Project Identification Form
(PIF)
Prepare project proposal
Option to request Project
Preparation Grant (PPG)
CEO Clearance of PIF (and PPG)
‘Work Program’ Inclusion -
Council reviews overall pipeline
coherenceCEO Endorsement
4 Week Council Review of
Project Document
Implement, monitor and
evaluate project
Final evaluation
Project impacts continue after completion of GEF funding
Project Cycle: Full Size Projects
Approval of Full Size Projects
PIFs cleared by CEO
Cleared PIFs included in work program for approval by Council
Fully prepared project documents circulated to Council for a 4 week review period prior to CEO endorsement
Develop concept
Project Identification Form
(PIF)
Prepare project proposal
Option to request Project
Preparation Grant (PPG)
CEO Approval of PIF (and PPG)
CEO Endorsement
2 Week Council review of
Project Document
Implement, monitor and
evaluate Project
Final evaluation
Project impacts continue after completion of GEF funding
Project Cycle: Medium Size Projects
Approval of Medium Size Projects and Enabling Activities
Medium Size Projects PIFs approved by CEO for further preparation
Fully prepared project documents circulated to Council for 2 week comment period prior to CEO endorsement.
Enabling Activities PIFs approved by CEO for further preparation
Fully prepared projects documents endorsed by CEO and documents posted on the web site.
GEF Project Cycle: Project Identification & Preparation
Project Identification Form (PIF)• Provides key information on project idea and best
estimate of project cost• Submitted on a rolling basis• Accompanied by Focal Point endorsement
Project Preparation Grant (PPG)• Available to Approved PIFs• Grant amount based on estimate of project
preparation costs and deducted from total project cost
• Approved on a rolling basis
PIF and PPG can be submitted together
GEF Project Cycle
There are two GEF review points in the project cycle:
1. Project Concept Review and Work Program Inclusion:
• Project Identification Form (PIF) for concept review and approval by CEO
• Work Program Document describes overall programmatic coherence of GEF pipeline - focuses on overall policy and strategic issues
2. CEO endorsement: Fully prepared projects submitted for CEO endorsement before approval by Agencies
Project Review Criteria
Criteria for Project Concept Review:• Country eligibility• GEF operational focal point endorsement• Consistency with GEF strategic objectives/programs• Comparative advantage of GEF agency submitting
project• Consistency of GEF grant amount with resources
available in the focal area, strategic objectives strategic program, and Resource Allocation Framework
• Estimated cost of the project• Milestones for further project processing
Project Review Criteria continued
Criteria for CEO Endorsement of Projects:
Final cost tables for project components, project management, consultants, and co-financing
GEF Monitoring and Evaluation Policy provisions
Explanation for any changes in expected global environmental benefits, consistency with focal area strategy, GEF grant amount and co-financing since PIF approval
Project preparation grant status report
GEF Pipeline Management
All approved PIFs go into GEF pipeline
Proposals in the pipeline will be processed with time-bound milestones
Proposals not meeting the milestones are subject to cancellation policies approved by the Council
Role of Countries
Countries are advised to:
• Identify national priorities for GEF funding
• Develop comprehensive and coherent GEF strategy in consultation with key stakeholders
• Integrate GEF priorities within broader national environment and sustainable development frameworks