Project Development Session

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Project Development Session
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Why this session was developed

• Responds to country requests for more and better
  information about the GEF process, project
  criteria, and proposal design.
• Involves diverse constituencies -- Governments,
  NGOs, research institutes, communities, the
  private sector -- in learning about GEF project
  development.

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Purpose of this session

• Options for pursuing GEF co-financing
• Basic elements of GEF project development
• Basic tools for building a GEF project proposal

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Structure of this session

• 1. How to determine eligibility
• 2. Prepare a project concept paper
• 3. Moving from a concept paper to a GEF project
  brief
• 4. The basic components of GEFs incremental
  cost approach

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Basic Project Cycle
Project impacts continue after completion of GEF
funding
GEF review for eligibility and pipeline entry
OFP endorsement
Develop project concept
Final evaluation
Secure project development funding option
Implement, monitor and evaluate project
Prepare project proposal
GEF Council review and approval for CEO
endorsement for OFP
GEF review for Work Program inclusion
CEO clearance
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Project Development Team
Scientists/Technical Experts
Local Authorities
Project Team
NGOs
Government Ministries
Stakeholder Representatives
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Determining EligibilityBeginning with an Idea
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Key eligibility criteria for GEF funding
Eligibility Tests

• How do I tell whether my project idea meets basic
  criteria for GEF eligibility?

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1. The Convention Ratification Test

• To be eligible for GEF financing, a country must
• have ratified the Convention on Biodiversity or
  Framework Convention on Climate Change (or POPs
  Convention)

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2. The Operational Programme Fit Test

• Does your project concept fit within one of GEFs
  focal areas and associated Operational Programmes
  (OPs)?
• Biodiversity 5 OPs
• Climate Change 4 OPs
• International Waters 3 OPs
• Multi Focal 1 OP
• The operational programmes set the boundaries for
  the content and approach of fundable project
  ideas.

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Which Operational Programme is appropriate?

• Consider
• focal area
• ecosystem (for biodiversity projects)
• project approach
• project activities

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Biodiversity emphasis

• Biodiversity projects should secure the
• in situ conservation and sustainable use of
  globally significant biodiversity at the
  intra-species, species and/or ecosystem levels.

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Biodiversity Operational Programmes (OPs)

• 1. Arid and semi-arid ecosystems
• 2. Coastal, marine and freshwater ecosystems
• 3. Forest ecosystems
• 4. Mountain ecosystems
• 13. Agrobiodiversity

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Climate Change emphasis

• Assess the economic scope of energy conservation
  or renewable energy technologies
• Estimate how much the project will reduce
  greenhouse gases
• Identify all key barriers
• Propose measures to remove barriers, and estimate
  their costs, and
• Demonstrate the sustainability of win-win
  projects

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Climate Change Operational Programmes (OPs)

• 5. Removing barriers to energy conservation and
  energy efficiency
• 6. Promoting the adoption of renewable energy by
  removing barriers and reducing implementation
  costs
• 7. Reducing the long-term costs of low greenhouse
  gas emitting energy technologies
• 11. Promoting environmentally sustainable
  transport

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What are International Waters?

• The GEF definition includes the oceans, large
  marine ecosystems, enclosed or semi-enclosed seas
  and estuaries as well as rivers, lakes,
  groundwater systems, and wetlands with
  transboundary drainage basins or common borders.
  

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International WatersOperational Programmes (OPs)

• 8. Water body-based programme
• 9. Integrated land and water multiple focal areas
• 10. Contaminant-based programme

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Multiple Focal AreaOperational Programme (OP)

• Integrated Ecosystem and Natural Resource
  Management
• Objective to promote multiple global benefits
• Focus on ecosystem management and resource usage
  patterns in regional and national development
• Must include two or more of following
• Conservation sustainable use of biodiversity
• Protection of international waters
• Positive impact on climate change.

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Multi Focal Area

• 12. Integrated Ecosystem and Natural Resources
  Management

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3. The Global Significance Test

• Does your project concept deal with globally
  significant biodiversity, transboundary
  international waters resources, or reduction of
  greenhouse gas emissions?

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4. The National Priority Test

• Does your project concept reflect national
  environmental priorities and commitments?
• GEF focal point endorsement is a requirement.

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5. The Co-funding Test

• Does your project concept have co-funding from
  other sources? If not, is there a good potential
  for creating co-funding partnerships?
• Remember GEF financing is co-financing.

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The Project Overlap Test

• Is your project concept unique? Has a similar
  initiative already been funded by the GEF in your
  country?
• First learn about existing or planned GEF
  projects in your country.

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The Eligibility Tests

• The Convention Ratification Test
• The GEF Operational Programme (OP) Fit Test (see
  Project Development Working Group Materials Kit
  in your handouts)
• The Global Significance Test
• The National Priority Test
• The Co-Funding Test
• The Project Overlap Test

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Basic Project Cycle
Project impacts continue after completion of GEF
funding
GEF review for eligibility and pipeline entry
OFP endorsement
Develop project concept
Final evaluation
Secure project development funding option
Implement, monitor and evaluate project
Prepare project proposal
GEF Council review and approval for CEO
endorsement for OFP
GEF review for Work Program inclusion
CEO clearance
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Activity 1 Determining Eligibility

• The purpose of this activity is to enable you to
  determine the eligibility of concepts for
  possible GEF project development.

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Group Discussion and Presentation -- Activity 1
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II. Developing a GEF Project Concept Paper

• Discuss the concept with the GEF and IA focal
  points as you go along
• Remember eligibility criteria, including the
  operational programmes
• Keep length to no more than 10 pages

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Concept Paper Content

• 1. Project name
• 2. Implementing Agency
• 3. Country or countries of implementation
• 4. Country eligibility
• 5. GEF focal area
• 6. GEF operational programme

• 7. Linkage to national priorities and plans
• 8. GEF focal point review/endorsement
• 13. Information on project proponent
• 14. Information on executing agency if different

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Concept Paper Content

• Describe the Problem and Existing Situation
• 9. Project Rationale and Objectives
• 10. Expected Outcomes
• 11. Planned Activities to Achieve Outcomes
• 12. Stakeholder Involvement
• 15. Estimated Budget

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Project Rationale and Objectives Step back.
Think holistically.

• Keep in mind that GEF wants you to understand and
  describe the WHOLE problem.
• What do you already know about the problem you
  wish to solve?

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Identify the principal threat and barriers

• Based on your knowledge of the situation, can you
  identify
• the principal threats to biodiversity or
  transboundary waters resource
• the principal barriers to adopting renewable
  energy alternatives or to energy conservation?

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What are the root causes of the threats?

• Based on an analysis of the principal threats or
  barriers, determine what their root causes are.

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Who is affected by this problem?

• Stakeholders the group of people who are
  directly or indirectly involved in the problem.
• Consultation and participation of stakeholders
  are necessary for project success.

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Assessing the Existing Situation

• What are local communities, local authorities,
  the national government, NGOs, private sector,
  and other donors already doing in the proposed
  project area?
• This is the Baseline -- the business as usual
  scenario

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Outcomes and Activities

• How can the root causes of the problem be
  eliminated and the threats diminished or the
  barriers removed? What would need to be done?
• This is the Alternative -- the set of
  outcomes/outputs and activities that are the
  alternative to the Baseline.

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Development of a Good Concept Paper A Checklist

• Apply key eligibility criteria to project
  concept.
• Consult with people concerned with your project
  idea -- the stakeholders. Develop support and
  participation.
• Write the concept paper.
• Secure written endorsement of concept from
  Government GEF focal point.
• Submit concept paper to IA.

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III. Moving from Concept Paper to Project
Proposal

• Choose a funding pathway that is appropriate for
  the scope of your project
• Full Projects
• Medium-sized Projects
• Small Grants Programme

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GEF funding pathways
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GEF Medium-Size Projects (MSPs)

• Meet government/NGO demand for fast, flexible
  funding
• Receive expedited funding of up to 1 million
  take 6 months on average
• Designed in partnership with the NGO community

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Preparatory funding

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

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Use PDF A or Block A to

• assess possible project sites
• identify threats and root causes or key barriers
• evaluate institutional frameworks
• meet and consult stakeholders
• identify co-funding possibilities

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PDF A Format
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Use PDF B or Block B to

• conduct feasibility studies
• undertake detailed assessments
• develop institutional and planning frameworks
• make field visits and full consultations with
  stakeholders
• complete co-funding arrangements

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PDF B Format
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Status Check What have we done so far?

• determine eligibility of project idea in
  consultation with IA
• prepare and submit concept paper with GEF focal
  point endorsement
• move from concept paper to project brief

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IV. Understanding the Incremental Cost Approach

• The GEF approach to project development
• Contains the basic elements of good project design

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Baseline and Alternative

• If you understand Alternative and Baseline, then
  you will have understood THE two key concepts
  about developing a successful GEF proposal.

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Review of key steps to Alternative and Baseline

• Define the problem
• 2) Identify threats and root causes

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Key Steps to Baseline and Alternative

• 3) Define the project purpose
• 4) Determine activities and outputs/outcomes

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Baseline Course of Action

• The baseline course of action is what would
  normally occur in the project area in the absence
  of the proposed project.

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The project scope -- a geographic, thematic and
temporal boundary
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Alternative Scenario

• The Alternative -- project purpose/objectives,
  outputs/outcomes, and activities -- comprise the
  logical framework.
• The Alternative is what the project will
  establish above and beyond the baseline.

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Incremental Cost Approach for Biodiversity and
International Water Projects

• Describe and quantify (cost) the Baseline
• Describe and quantify (cost) the Alternative
• Distinguish between GEF-eligible and
  development-related parts of the Alternative

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Incremental Cost Approach for Biodiversity and
International Water Projects

• The Baseline existing funding commitments to
  the target area new activities whose main
  purpose is development and whose economic
  benefits exceed their costs
• Incremental costs those activities whose
  primary objective is biodiversity conservation
  and whose development benefits are less than
  their costs

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Distinguish between GEF-eligible and
development-related parts of your Alternative

• What of our proposed Alternative can we ask the
  GEF to fund and what must be co-financed?

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Incremental Cost Approach forClimate Change
Projects

• If the project falls under OP5 or OP6
• The life-cycle costs of win-win efficiency and
  renewable alternatives are less than the Baseline
  costs
• Incremental costs barrier-removal costs

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Incremental Cost Approach for Climate Change
Projects

• If the project falls under OP7
• The barrier is the cost of the technology itself.
• Incremental costs alternative technology costs
  - baseline costs

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Activity 2 Writing a Concept Paper

• This activity will allow you to become more
  familiar with the format and content requirements
  of the GEF concept paper, including the
  opportunity of applying the alternative and
  baseline logic in a practical context.

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Group Discussion and Presentation Activity 2
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Project Development Summary

• How to determine eligibility of a project idea
• Prepare a project concept paper based on an
  eligible idea
• Moving from a concept paper to a GEF project
  brief
• The basic components of good GEF project design