B.17/09: Policy matters related to the approval of funding proposals: Review of the initial proposal approval process

The Board, having considered document GCF/B.17/18 titled “Review of the initial proposal approval process”:

1. Takes note of the update from the Investment Committee on progress related to Board- mandated work on indicative minimum benchmarks, financial terms and conditions, and the performance review of the independent Technical Advisory Panel;
2. Also takes note of the review of the initial proposal approval process undertaken pursuant to decision B.11/11, paragraph (j);
3. Endorses the immediate actions that the Secretariat will implement in order to improve the effectiveness, transparency and country ownership of the initial proposal approval process, as contained in annex III;
4. Requests the Secretariat to only submit to the Board those funding proposals:
   
   1. Submitted to the Secretariat by entities accredited by the Board that have signed
   2. accreditation master agreements;
   3. Submitted to the Secretariat by entities accredited by the Board that have not signed accreditation master agreements, provided that such submission to the Secretariat occurs no later than 120 days from the date of the decision by the Board to accredit the relevant entity;
   4. Submitted to the Secretariat in response to requests for proposals issued by the GCF; or
   5. From those entities who have not yet signed the accreditation master agreement that have proposals currently at stage 4 of the updated project and programme activity cycle;
5. Underscores the importance of early engagement by accredited entities with national designated authorities and focal points in the preparation and submission of concept notes;
6. Agrees, in the context of decision B.11/11, paragraph (p), to insert the following new stage into the project and proposal activity cycle: “On receipt of a concept note submission from an accredited entity, the Secretariat will seek confirmation from the national designated authority or focal point that the concept note fits under national priorities and country ownership”;
7. Requests the Secretariat to prepare a document, for the Board’s consideration at its nineteenth meeting, which outlines options for the development of a two-stage proposal approval process, with stage 1 focusing on concept note approval and stage 2 focusing on the assessments by the Secretariat and the independent Technical Advisory Panel and Board consideration;
8. Also requests the Secretariat to present to the Board implementation challenges identified in the application of the initial proposal approval process, including policy matters identified during the Secretariat’s assessment of funding proposals, for the Board’s consideration at the earliest opportunity, including information on budgetary considerations;
9. Decides that the Secretariat shall only submit to the Board for its consideration those funding proposals (stage 5 of the updated project and programme activity cycle) whose approval has been recommended by the independent Technical Advisory Panel and the Secretariat;
10. Confirms that proposals not recommended by the independent Technical Advisory Panel and the Secretariat, as outlined in paragraph (i) above, will continue to be revised by the Secretariat and accredited entities at stage 5 of the updated project and programme activity cycle;
11. Requests the Secretariat to inform the Board at each Board meeting on the status of funding proposals that either the Secretariat or the independent Technical Advisory Panel do not recommend for approval and do not submit to the Board;
12. Also requests the Secretariat to develop and publish clear timelines for its assessment of funding proposals to ensure timely consideration of funding proposals by the Secretariat, the independent Technical Advisory Panel and the Board;
13. Further requests the Co-Chairs, in consultation with the Board, to explore options for the timely consideration of funding proposals between Board meetings;
14. Decides to update the project and programme activity cycle as contained in annex IV;
15. Requests the Secretariat to define the nature, scope and extent of second-level due diligence and submit the same to the Board for its consideration no later than April 2018; and
16. Also requests the Secretariat to develop an interim restructuring and cancellation policy, including further options for decision-making, for consideration by the Board no later than its eighteenth session, and a comprehensive restructuring and cancellation policy no later than April 2018.