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Application Title Bhutan Green Transport Program Country Application Title Bhutan Green Transport Program Country/ Region Kingdom of Bhutan Accredited Entity The World Bank Approval Date 27 January 2019 Project Preparation Facility GREEN CLIMATE FUND | PAGE 1 OF 55 Version 2.0 Notes • The PPF supports the development of projects and programs and enhance their quality at entry into the Fund’s pipeline. With a view to enhancing the balance and diversity of the project pipeline, the PPF is designed to especially support Direct Access Entities for projects in the micro-to-small size category. International Accredited Entities seeking project preparation support from the PPF are encouraged to do so especially for LDCs, SIDS and African countries where no Direct Access Entity is accredited. All Accredited Entities are encouraged to articulate counterpart support for project preparation within their requests for support from the PPF. • A PPF submission should include below documents: 1. PPF request (this form) 2. PPF No-Objection letter1 3. Concept Note • Please copy the National Designated Authority (ies) when submitting this PPF request. • Requests for support from the PPF should be submitted at the same time or following submission of a GCF Concept Note for a project or program. • Further information on GCF PPF can be found on GCF website Project Preparation Facility Guidelines. 1 Please note that the PPF No-Objection Letter is different from the Funding Proposal No-Objection Letter. PPF No-Objection Letter template can be downloaded from here. Project Preparation Facility GREEN CLIMATE FUND | PAGE 2 OF 55 Version 2.0 A. Executive Summary Name: Yoichiro Ishihara / Nupur Gupta Position: Resident Representative / Senior Transport Specialist Email: [email protected] / [email protected] Accredited Entity Tel: +975 77 182 122 / + 1 202 446 6051 (AE) Full Office address: World Bank Bhutan Country Office Bhutan Development Bank Building Norzin Lam, Chubachu, PO Box 244 Thimphu, Bhutan Has a Concept Note2 ☒ ☐ Yes No Has a No-Objection Letter3 been submitted in If yes, please indicate been submitted for this request association with this Yes ☒ No ☐ Project/Programme title: for support from the PPF? request for support from Bhutan Green Transport Program the PPF? Total cost of Project Preparation activities: US$ 1,526,543 Total Cost Amount requested from the PPF: US$ 526,311 Counterpart funding from the AE: US$ 869,731 Royal Government of Bhutan / other donors: US$ 130,500 Anticipated Duration Number of months to implement the Project Preparation activities: 11 months 1. This request seeks financial resources from the Project Preparation Facility (PPF) to develop a full proposal to the Green Climate Fund in support of a Green Transport Program for Bhutan’s urban center with special focus on Thimphu, the capital city (hereafter the “Program”). The Program will focus on low-emissions transport solutions that will enable Bhutan to achieve its sustainable development targets and Nationally Determined Contribution (NDC) as submitted in September 2015. This follows on Bhutan’s 2009 re-commitment to remain carbon neutral. The Program comprises three broadly interlinked interventions: (i) investments in green transport infrastructure; (ii) investments in zero emissions performance buses and other operating assets for bus services; and (iii) technical assistance and institutional development. PPF resources would support the following: i. A masterplan for low emissions transport in Thimphu; ii. Technical preparations for non-motorized transport services; iii. Technical preparations for electric and zero-emission public transport mobility; and Summary of the request iv. Financial audit of PPF activities. for Project Preparation support 2. Outputs will support a final application for GCF funding of Thimphu’s Green Transport Program and will also serve to coordinate the activities of development partners who would co- finance alongside the GCF. 2 See here to download the Concept Note template. 3 Template for PPF No-Objection Letter can be downloaded here. Project Preparation Facility GREEN CLIMATE FUND | PAGE 3 OF 55 Version 2.0 B. Description of Project Preparation Activities Month Outputs and Activities (Please shade the implementation period from the starting month of the 4 Output and Activity in the schedule. Please also indicate the month of (Please select Activity Areas , activities, and deliverables as completion of each deliverable with “X” in the corresponding cell) needed) 1 2 3 4 5 6 7 8 9 10 11 12 13 Activity and deliverable 1: Development of a master- plan for low emission transport in Thimphu. PPF activity area: Other project preparation activities This activity will focus on framing the integrated set of interventions that can affect a step change in transport behaviours in Thimphu and other urban centre, including: (i) X X X X X X X travel demand management; (ii) policy and pricing interventions in the market for transport services; (iii) Transit Oriented Development planning; (iv) Non-motorised Transport and low carbon mobility planning (v) development of different policy regimes relating to transport for different zones of Thimphu. Extensive public consultations will accompany the tasks under this activity. Activity and deliverable 2: Technical preparations for Low-carbon Transport Program investments PPF activity area: Pre-feasibility, feasibility studies and project design (i) travel demand modelling; (ii) technical preparations and surveys for physical works; (iii) preparations for X X X X X X X X X X bus terminals, and an upgraded bus depot; (iv) Analysis and forecasting of GHG emissions reductions; (v) planning for traffic management and road safety measures to support implementation; (vi) operations and maintenance planning; and (vii) financial planning. Extensive public consultations will accompany tasks under this activity. Activity and deliverable 3: Technical preparations for Non-motorized Transport Services PPF activity area: Pre-feasibility, feasibility studies and project design This activity will prepare for non-motorized transport services, including: (i) development of preliminary X X X X X designs for pedestrian, bicycle ways, and e-bicycles to support initial public consultations; (ii) development of advanced engineering designs for works; and (iii) budgeting and planning for the execution of works. Extensive public consultation will accompany this activity. 4 The PPF can provide support within the following project preparation activity areas: i. Pre-feasibility and feasibility studies ii. Environmental, social and gender studies iii. Risk Assessments iv. Identification of programme and project level indicators Other activities of direct relevance for Direct Access Entities that the PPF can support are as follows: v. Pre-contract services, including the revision of tender documents vi. Advisory services and/or other services to financially structure a proposed activity vii. Other project preparation activities, where necessary, and with sufficient justification Project Preparation Facility GREEN CLIMATE FUND | PAGE 4 OF 55 Version 2.0 Activity and deliverable 4: Technical preparations for low or zero-emission public transport mobility PPF activity area: Pre-feasibility, feasibility studies and project design This activity will explore policies and infrastructure needed to create a favourable and enabling X X X X X environment for electric buses including: (i) technical preparations and surveys for specification of electric vehicles in public transport and public sector fleets; (ii) assessment of infrastructure and operation and maintenance; and (iii) institutional development plan for the Bhutanese electric bus sector. Extensive public consultation will accompany tasks under this activity. Activity and deliverable 5: Preparation of an Environmental and Social Impact Assessment (ESIA) of Program works PPF activity area: Environmental, social and gender studies X X X X X X This will be necessary to ensure that Program investments comply with World Bank and other development partner social / environmental policies. Outputs will include a Resettlement Action Plan and Environmental and Social Management Plan. Activity and deliverable 6: Development of a financial model and accompanying economic model to assess the Program’s merits PPF activity area: Advisory services and/or other services to financially structure a proposed activity X X These tools will help to plan Program investments for optimal returns and sustainability. Results will also present envisaged benefits to the GCF when the Program is proposed for investment support. Activity and deliverable 7: Gender analysis and preparation of a Gender Action Plan PPF activity area: Environmental, social and gender studies X X X X This activity will develop a Gender Action Plan that will help guide program investments in accordance with GCF policy. Activity and deliverable 8: Program management consultancy PPF activity area: Other project preparation activities X X X X X X X X X X X This activity will coordinate all preparation tasks, facilitate RGoB’s participation, and lead outreach and communications efforts via web and social media channels. Estimated time for submission corresponding full X Funding Proposal to the GCF Project Preparation Facility GREEN CLIMATE FUND | PAGE 5 OF 55 Version 2.0 C. Justification of the Project Preparation Request BACKGROUND FOR THE GREEN TRANSPORT PROGRAM FOR THIMPHU 3. The 2017 Population and Housing Census of Bhutan reveals that as of 30 May 2017, Bhutan’s total population
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