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Operational Framework for Managing and Accessing Climate Finance in the Kyrgyz Republic

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Operational Framework for Managing and Accessing Climate Finance in the Kyrgyz Republic Public Disclosure Authorized Government of the Kyrgyz Republic Climate Investment Programme Public Disclosure Authorized Operational Framework for Managing and Accessing Climate Finance in the Kyrgyz Republic Public Disclosure Authorized FINAL DOCUMENT Public Disclosure Authorized May 2018 Acronyms ADB Asian Development Bank AE Accredited Entity (to the Green Climate Fund) AF Adaptation Fund BAU Business as usual CAPS Central Asia Power System CAIAG Central-Asian Institute for Applied Geosciences CNK Climate Network of Kyrgyzstan CCC Climate Change Centre CCCCP Coordination Commission on Climate Change Problems CDM Clean Development Mechanism CCDP-Kg Climate Change Dialogue Platform CCMIP Coordination Council on Macroeconomic and Investment Policy CFCM Climate Finance Coordination Mechanism CFC Climate Finance Centre CIF Climate Investment Funds CIP Climate Investment Programme COP Conference of the Parties (to the UNFCCC) DPCC Development Partners Coordination Council EBRD European Bank for Reconstruction and Development EE Executing Entity (for the Green Climate Fund and Adaptation Fund) FAO Food and Agriculture Organization (of the United Nations) GCF Green Climate Fund GEF Global Environment Facility GEF SCCF Global Environment Facility’s Special Climate Change Fund GHG Greenhouse gas Gosstroy State Agency for Architecture, Construction and Communal Services IAWG Inter-Agency Working Group (on Climate Finance) IDA International Development Association IE Implementing Entity (for the Adaptation Fund) IFCA Investment facility for Central Asia (of the European Commission) INDC Intended Nationally Determined Contribution MDB Multilateral Development Bank NAS KR National Academy of Sciences of the Kyrgyz Republic NCSD National Council for Sustainable Development NDA National Designated Authority NEGK National Electrical Grid of Kyrgyzstan NGO Non-governmental Organization NISS National Institute for Strategic Studies NSSD National Strategy for Sustainable Development MFI Micro-finance Institution OFP Operational focal point (for the GEF) PAC Proposal Appraisal Committee PIF Project Identification Form PPCR Pilot Programme for Climate Resilience PPP Public-private partnerships SAEPF State Agency on Environment Protection and Forestry SALSGIR State Agency on Local Self-Governance and Interethnic Relations SDGs Sustainable Development Goals SME Small and Medium Enterprise SNC Second National Communication SPCR Strategic Programme for Climate Resilience TNC Third National Communication UCA University of Central Asia UNDP United Nations Development Programme Kyrgyz Republic: Pilot Program for Climate Resilience – Climate Investment Programme Page ii UNFCCC United Nations Framework Convention on Climate Change UNFPA United Nations Population Fund WB World Bank Kyrgyz Republic: Pilot Program for Climate Resilience – Climate Investment Programme Page iii Table of Contents Acronyms .................................................................................................................................... ii Table of Contents ....................................................................................................................... iv Executive Summary .................................................................................................................... vi Introduction ................................................................................................................................ 1 Background and rationale ........................................................................................................... 2 1.1 Country circumstances ......................................................................................................... 2 1.2 Development context and climate risks ............................................................................... 3 1.3 Overview and linkages to existing development plans and programs ................................. 12 1.4 Rationale for PPCR support ................................................................................................ 13 1.5 Institutional analysis ........................................................................................................... 15 1.6 Stakeholder engagement for the development of the CIP .................................................. 28 2 Proposed investment program components ..................................................................... 31 2.1 Outline of the CIP ............................................................................................................... 31 2.2 Framework for identifying climate resilience investment program components ................ 32 2.3 Introduction to the investment program components ....................................................... 34 2.4 COMPONENT 1: Improving the quality of climate services ................................................. 38 2.5 COMPONENT 2: Improving food security from agriculture, through improved water resources, land management and agricultural practices .................................................................... 41 2.6 COMPONENT 3: Making energy supply infrastructure climate resilient ............................. 47 2.7 COMPONENT 4: Making transport infrastructure climate resilient ..................................... 51 2.8 COMPONENT 5: Making municipal water supply climate resilient ...................................... 53 2.9 COMPONENT 6: Making buildings climate resilient ............................................................ 56 2.10 COMPONENT 7: Increasing the climate resilience of healthcare ........................................ 60 2.11 COMPONENT 8: Increasing the climate resilience of mining .............................................. 64 2.12 COMPONENT 9: Enhancing private sector participation in climate resilience ..................... 68 2.13 COMPONENT 10: Enhancing the climate resilience of forestry and biodiversity ................. 71 2.14 COMPONENT 11: Enhancing the climate resilience of emergency situations ..................... 75 2.15 Climate finance project cycle ............................................................................................. 77 2.16 Monitoring and Evaluation Framework to track, report, monitor and evaluate adaptation and resilience benefits ....................................................................................................................... 85 2.17 Stakeholder engagement for the implementation of the CIP ............................................. 89 3 Proposed priority climate resilience investment projects .................................................. 92 4 Annex 1: Recommendations for Kyrgyz Republic’s key stakeholders on climate resilience …………………………………………………………………………………………………………………………………….117 Annex 2: Training Programme ................................................................................................. 124 4.1 Introduction ..................................................................................................................... 124 4.2 Overview of proposed training programme ..................................................................... 125 4.3 Detailed overview of the training modules ....................................................................... 131 4.4 Rollout and long term strategy: How will the training be launched and sustained?.......... 149 4.5 Additional information: Training courses relevant to the training development .............. 151 Annex 3: Proposed organizational structure of the Climate Finance Centre ........................... 156 Annex 4: List of stakeholders consulted .................................................................................. 170 Kyrgyz Republic: Pilot Program for Climate Resilience – Climate Investment Programme Page iv Annex 5: Climate Finance Project Cycle .................................................................................. 178 4.6 Introduction ..................................................................................................................... 178 4.7 Existing processes and linkages between them: Overview ............................................... 179 4.8 Proposed climate finance project cycle ............................................................................ 187 Annex 6: Glossary of key terms ............................................................................................... 195 Kyrgyz Republic: Pilot Program for Climate Resilience – Climate Investment Programme Page v Executive Summary 1. The Kyrgyz Republic is one of the most vulnerable countries in Central Asia to climate change risks due to the high occurrence of climate-related disasters, its dependency on climate-sensitive economic sectors and its ageing infrastructure. The Kyrgyz Republic’s climate characteristics are related to its location in the centre of the Eurasian continent at a distance from main water bodies and close vicinity to deserts. The population of the Kyrgyz Republic is 6,019,000 as of January 2016, which is predominately rural and unevenly distributed across the country due to its mountainous terrain. Despite progress made in the last few years to reduce extreme poverty, climate risks pose significant threats to ensuring sustainable livelihoods, food security and infrastructure services. Climate-related events, such as the increasing numbers of floods and mudflows each spring, drought in 2008 and severe cold spells in 2008-2009, and the cascading impacts on society and
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