GEF Expanded Constituency Workshop
Managua, Nicaragua
March 3-4, 2015

Acronyms Used in this Presentation
FSP = Full-Sized Project
MSP = Medium-Sized Project
EA = Enabling Activities
PA = Programmatic Approach
MIA=Minamata Convention Initial Assessment
ASGM NAP = “Artisanal and Small Scale Gold Mining”
National Action Plan
PIFs = Project Identification Form/concept of a project
PFD = Program Framework Document
PPG = Project Preparation Grant

GEF Financing
Financing Objective :
• to provide resources to recipient countries to meet the agreed incremental cost of activities that generate global environmental benefits (GEBs).
• GEF Trust Fund, Least Developing Countries Fund (LDCF), Special
Climate Change Fund (SCCF) & Nagoya Protocol Implementation
Fund (NPIF).
Who can apply?
•
A GEF country member government, any eligible individual or group may propose a project through the OFP.
•
GEF Operational Focal Point (OFP) plays a key role in assuring that GEF projects are aligned to meet the needs and priorities of the respective country.

Eligibility of Project Proposal
A project proposal has to fulfill the following criteria for consideration for GEF financing, :
•
It is undertaken in an eligible country and is consistent with country’s national priorities and programs.
• It addresses one or more of the GEF Focal Area objectives in improving the global environment or advancing the prospect of reducing risks to it.
•
It is consistent with the GEF operational strategy .
•
It seeks GEF financing only for the agreed incremental costs on measures to achieve global environmental benefits
•
It involves the stakeholders in project design and implementation.
• It is endorsed by the government(s) of the country/ies in which it will be implemented.

Accessing the GEF Trust Fund
TRADITIONAL MODE
•
Project proponents work closely with national GEF Operational Focal
Points (who formally endorse project concepts) and the GEF Partner
Agency , to develop concepts and move through the project cycle and are approved either by the GEF Council or the GEF CEO, depending on the type of project.
DIRECT ACCESS MODE
•
In response to country request to improve country ownership , country drivenness and capacity building
•
Project proponents work directly with the GEF Secretariat without going through a GEF Agency; projects follow the same project eligibility criteria and focal area strategic objectives.

Types of GEF Projects
GEF project types by Grant Size:
•
Full-Sized Projects (FSPs): GEF grant > $2 million
•
Medium-Sized Projects (MSPs): GEF grant < $2 million
•
Enabling Activities (EAs): GEF grant is capped by respective focal area threshold:

Biodiversity and Climate Change = up to $500,000;

Land Degradation = up to $150,000

Chemical and Waste (MIA = $200,000; Persistent Organic Pollutants and ASGM NAP=$500,000)
•
Programmatic Approach (PA)
•
Small Grants Program (max $50,000)
MIA=Minamata Convention Initial Assessment
ASGM NAP = “Artisanal and Small Scale Gold Mining” National Action Plan

Project Cycle Steps
Two major approval steps for Full-Sized Projects:
Council and the GEF Secretariat :
1. Council approval of work program
2. CEO endorsement of the project document
GEF Agency :
1. Approval of the project by the GEF Agency and implementation start;
2. Completion of implementation, terminal evaluation and financial closure.

Full-Sized Project Cycle
Council approval of
Work
Program*
Project implementation and continues to completion***
CEO endorsement of project
GEF
Agency approval of project**
* Work Program consists of PIFs cleared by the CEO
** GEF Agency approval of project signifies start of project implementation
*** Project completion follows terminal evaluation and financial closure

Medium-Sized Project Cycle

One-step approach, preferred:
•
Final MSP request and project document submit to the
Secretariat for CEO approval, on a rolling basis.
•
As needed, a PPG of up to $50,000 can be requested with MSP submission .

Two-step approach , only if required:
•
Submission of a PIF with PPG request, if needed
•
Submission of a final MSP document plus a MSP Approval
Request for CEO approval

Enabling Activities Project Cycle
Enabling Activities follow two paths:
Direct Access (follow direct access policy – applies the World Bank
Operations Policies and Procedures):
 Country applies directly to the Secretariat for funding
Regular procedures :

Country works with a GEF Partner Agency to access funding.

Programmatic Approach Cycle
The new programmatic approach: approved by
Council approval in the October 2014 Council meeting.
Steps include:

Council approval of a Program Framework Document
(PFD) included in a work program;

CEO endorsement of fully prepared child projects under the program

Features of a Program
 Key document: Program Framework Document (PFD).

All child projects under the Program have to be submitted for CEO endorsement by a deadline (or Program Commitment Deadline ) agreed by relevant stakeholders during the preparation of the program concept or PFD.

Child projects can apply for project preparation funding through submission of a PPG Request.

Project Review Criteria

Country eligibility and ownership

Global Environment Benefits
 GEF Focal area strategy
 Agency’s Comparative advantage

Resource availability

Project consistency

Project design
 Project financing and co-financing

Monitoring and evaluation; and
 Agency’s responses to comments and reviews.

Country Endorsement
Endorsement by a national Operational Focal Point (OFP) is a requirement for the following:
 all PIFs to enter the work program, and for application of
Project Preparation Grants (PPGs);

PFDs submitted for work program inclusion;

Request for CEO approval of MSP final projects;

All EAs requesting CEO approval.
Projects in biodiversity, climate change, and land degradation focal areas also follow STAR rules.

Recent Council Papers on Project Cycle
Please consult the GEF website: www.thegef.org
for all relevant project cycle papers for more detailed policies and procedures.
To name a few:
GEF/C.31/7/Corr.1 GEF Project Cycle (Corrigendum ) English
GEF/C.38/05/Rev.1 Streamlining the Project Cycle and
Refining the Programmatic Approach English
GEF/C.39/Inf.03 GEF Project and Programmatic Approach Cycles
English
GEF/C.43/06 Streamlining of Project Cycle
GEF/C.47/07 Improving the GEF Project Cycle
English
English

GEF Expanded Constituency Workshop
Managua, Nicaragua
March 3-4, 2015






 The current mechanism by which GEF resources are allocated to countries in three focal areas – Biodiversity,
Climate Change, and Land Degradation
 The Resource Allocation Framework (RAF) was the first PBA for the GEF and adopted for GEF-4
 The STAR updated the RAF and was implemented for GEF-5
 The STAR was recently updated for GEF-6

• STAR aims to allocate scarce GEF resources within and among focal areas in order to:
 maximise impact on the global environment
 promote sound environmental policies and practices
 meet convention requirements
 match country driven priorities

1
2
3
4
5
6
• Determine Available Focal Area Funds
• Calculate “Country Scores”
• Calculate Preliminary Country Allocations
• Adjust for Floors and Ceilings
• Obtain Final Allocations
• Determine post-allocation Flexibilities

1
2
3
4
5
6
• Determine Available Focal Area Funds
• Calculate “Country Scores”
• Calculate Preliminary Country Allocations
• Adjust for Floors and Ceilings
• Obtain Final Allocations
• Determine post-allocation Flexibilities

• Global Benefits Index: measures a country’s relative share of GEF potential benefits that can be generated by a fixed amount of resource input into a focal area
• Country Performance Index: measures a country’s performance and capacity to deliver potential global environmental benefits
• GDP Index: designed to increase allocation of countries with a low GDP per capita

COUNTRY SCORE
Biodiversity
Global Benefits
Index
Climate Change
Country
Performance Index
Land
Degradation
GDP Index
0.8
1.0
-0.08

1
2
3
4
5
6
• Determine Available Focal Area Funds
• Calculate “Country Scores”
• Calculate Preliminary Country Allocations
• Adjust for Floors and Ceilings
• Obtain Final Allocations
• Determine post-allocation Flexibilities

 Country Share =
Country Score / Sum of Country Scores for all eligible countries
 Preliminary Allocation =
Country Share * Available Focal Area Funds

1
2
3
4
5
6
• Determine Available Focal Area Funds
• Calculate “Country Scores”
• Calculate Preliminary Country Allocations
• Adjust for Floors and Ceilings
• Obtain Final Allocations
• Determine post-allocation Flexibilities

Focal Area
Climate Change
Biodiversity
Land
Degradation
Floor for LDCs
3
2
1
Floor for Non LDCs
2
1.5
Ceiling %
10%
10%
0.5
10%
Ceilings
(US Mn)
126
129.6
43.1

1
2
3
4
5
6
• Determine Available Focal Area Funds
• Calculate “Country Scores”
• Calculate Preliminary Country Allocations
• Adjust for Floors and Ceilings
• Obtain Final Allocations
• Determine post-allocation Flexibilities

 Adjustments for floors and ceilings mean there is a surplus or deficit relative to the preliminary allocation
 This is then allocated among countries using the country scores
 Process iterates until the full amount has been allocated among countries

1
2
3
4
5
6
• Determine Available Focal Area Funds
• Calculate “Country Scores”
• Calculate Preliminary Country Allocations
• Adjust for Floors and Ceilings
• Obtain Final Allocations
• Determine post-allocation Flexibilities

 Flexibilities relate to the utilization(not allocation) of GEF resources
 Countries are allowed to adjust their focal area allocations (but not their total envelope)
Total Allocation X
X ≤ 7 million
X > 7 million
Allowed Marginal Adjustment unlimited
2 million

BIODIVERSITY CLIMATE CHANGE LAND DEGRADATION
GBI 0.21
0.12
0.30
CPI 3.65
GDPI 17934.06
COUNTRY SCORE
(GBI 0.8 CPI 1.0
GDP -0.08
)
0.48
0.306
0.63
SUM OF COUNTRY SCORES
COUNTRY SHARE
FOCAL AREA ALLOCATION
PRELIMINARY COUNTRY
ALLOCATION
FINAL COUNTRY
ALLOCATION
174.45
0.002753
1051
2.89
2.78
147.30
0.00208
941
1.96
2.29
189.39
0.00333
346
1.15
1.14
TOTAL ALLOCATION = 6.22 MILLION
(FULLY FLEXIBLE COUNTRY)

Country A has the following STAR allocations:
Biodiversity = 3 million
Climate Change = 4 million
Land Degradation = 1 million
(a) Does this country have full flexibility in the use of its resources? Why, or why not?
(b) Is this country allowed any marginal adjustment across focal areas? If so, how much?

Country B is an LDC. During the STAR model simulations, Country B has preliminary allocations as follows:
BIODIVERSITY
CLIMATE
CHANGE
LAND
DEGRADATION
PRELIMINARY
ALLOCATIONS
1.7
2.4
0.8
Comment on these values. (hint – floors!)

Focal Area
Climate Change
Biodiversity
Land
Degradation
Floor for LDCs
3
2
1
Floor for Non LDCs
2
1.5
Ceiling %
10%
10%
0.5
10%
Ceilings
(US Mn)
126
129.6
43.1

During the STAR model simulations, Country C has preliminary allocations as follows:
PRELIMINARY
ALLOCATIONS
BIODIVERSITY
135
CLIMATE
CHANGE
140
Comment on these values. (hint – ceilings!)
LAND
DEGRADATION
40

Given the following values, calculate the Country
Scores for Country D for each of the three focal areas.
GBI
CPI
GDPI
COUNTRY SCORE
BIODIVERSITY
0.04
?
CLIMATE
CHANGE
0.05
3.25
13000
?
LAND
DEGRADATION
0.08
?

.
Thank you for your attention!
Questions?