B.13/21: Funding proposals: Project Preparation Facility

The Board, having considered document GCF/B.13/14 titled “Operational guidelines for the Project Preparation Facility”:

1. Recalls decision B.11/11, paragraph (l), and decision B.12/25;
2. Decides that the Project Preparation Facility will support project and programme preparation requests from all accredited entities, especially direct access entities, especially for projects in the micro-to-small size category in accordance with decision B.10/17, with a view to enhancing the balance and diversity of the project pipeline;
3. Also decides that the Project Preparation Facility will support the following activities:
   
   1. Pre-feasibility and feasibility studies, and project design;
   2. Environmental, social and gender studies;
   3. Risk assessments;
   4. Identification of programme- and project-level indicators;
   5. Pre-contract services, including the revision of tender documents;
   6. Advisory services and/or other services to financially structure a proposed activity; and
   7. Other project preparation activities, where necessary, and with sufficient justification;
4. Further decides the following operating modalities:
   
   1. The Secretariat will develop a Project Preparation Facility request template by also modifying the concept note template to request information on the underlying project/programme;
   2. Project Preparation Facility requests will be developed by accredited entities in consultation with the national designated authorities or focal points and with support from the Secretariat;
   3. Project Preparation Facility requests will be submitted by accredited entities in conjunction with a no-objection letter consistent with the initial no-objection procedure approved by decision B.08/10;
   4. For the initial phase, the Board authorizes the Executive Director to approve the Project Preparation Facility requests based on an assessment of the request against the investment criteria of the GCF as defined in decision B.07/06, a justification of needs, and consistency with relevant GCF policies taking into consideration paragraph (b) above;
   5. Each approved Project Preparation Facility request will be disclosed on the GCF website upon approval;
   6. An amount of USD 40 million will be made available for the implementation of the initial phase of the Project Preparation Facility;
   7. Support for each Project Preparation Facility request will be provided commensurate with the activities listed in paragraph (c) above in the Project Preparation Facility request and the funding proposal being developed, limited to a maximum amount of USD 1.5 million;
   8. Support for Project Preparation Facility requests will be in the form of grants and repayable grants, and equity may also be considered for private sector projects;
   9. The Secretariat will report at each Board meeting on the pipeline of Project Preparation Facility requests received, approved and under implementation;
   10. The Secretariat will also report on the conversion of concept notes receiving Project Preparation Facility support to funding proposals submitted and approved by the Board;
   11. Funding proposals developed with Project Preparation Facility resources should be submitted to the Board within two years of the approval of a Project Preparation Facility request unless sufficient justification for an extension is provided; and
   12. Sufficient staffing and resources will be provided to the Secretariat to ensure the Project Preparation Facility operates effectively;
5. Decides that the independent Evaluation Unit will review the implementation of operational guidelines and the effectiveness of the Project Preparation Facility in order to draw lessons learned no later than the end of the initial resource mobilization period; and
6. Also decides to review funding for the Project Preparation Facility at its seventeenth meeting or once the funds made available through this decision are fully committed, whichever is earlier.