with CARICOM Development Fund for and 04 2019 | Strategic Frameworks

Programme title: Readiness to support the development of a Credit Risk Abatement Facility (CRAF) for CARICOM States

Country: Regional Institution

National designated authority: Belize, Saint Lucia

Implementing Institution: CARICOM Development Fund

Date of first submission: June 06, 2019.

Date of current submission / version number: V1.3 Readiness and Preparatory Support Page 2 of 19

How to complete this document?

- Please visit the Empowering Countries page of the GCF website to download the Readiness Guidebook and learn how to access funding under the GCF Readiness and Preparatory Support Programme. - This document should be completed by National Designated Authorities (NDA) or focal points with support from their Delivery Partners where relevant. Once completed, this document should be submitted to the GCF by the NDA or focal point to [email protected]. - Please be concise. If need to include any additional information, please attach it to the proposal. - If the Delivery Partner implementing the Readiness support is not a GCF Accredited Entity for project Funding Proposals, please complete the Financial Management Capacity Assessment (FMCA) questionnaire and submit it prior to or with this Readiness proposal. The FMCA is available for download at the Library page of the GCF website.

Where to get support?

- If you are not sure how to complete this document, or require support, please send an e-mail to [email protected]. - You can also complete as much of this document as you can and then send it to [email protected], copying both the Readiness Delivery Partner and the relevant GCF Country Dialogue Specialist and Regional Advisor. Please refer to the Country Profiles page of the GCF website to identify the relevant GCF Country Dialogue Specialist and Regional Advisor. - We will get back to you within five (5) working days to acknowledge receipt of your submission and discuss the way forward.

Note: Environmental and Social Safeguards and Gender

Throughout this document, when answering questions and providing details, please make sure to pay special attention to environmental, social and gender issues, particularly to the situation of vulnerable populations, including women and men. Please be specific about proposed actions to address these issues. Consult Annex IV of the Readiness Guidebook for more information.

Please submit the completed form to: [email protected]

Please use the following naming convention for the file name: “GCF Readiness Proposal-[Country]-[yymmdd]”

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1. SUMMARY Country name: Belize Name of institution representing National Designated Authority (NDA) or Focal Point: Ministry of Finance and Economic Development Name of NDA/Focal Point: Amb. Yvonne Hyde Position: Chief Executive Officer (CEO) Telephone: (501) 822-2526 Email: [email protected], [email protected] Full office address: Economic Development & Sir Edney Cain Building Ground Floor, Right Wing, , Belize. Country name: Saint Lucia Name of institution representing National Country Designated Authority (NDA) or Focal Point: submitting the Ministry of Economic Development, proposal Transport and Civil Aviation Name of NDA/Focal Point: Mr. Claudius Emmanuel Position: Permanent Secretary Telephone: 1-758-468-5825 Email: [email protected] Full office address: Ministry of Economic Development, Transport and Civil Aviation. 1st Floor Financial Complex, Saint Lucia. Additional email addresses that need to be copied on correspondences: [email protected];

[email protected] [email protected]; [email protected] Date of initial 6 June 2019 submission Last date of NA Version number V.1.3 resubmission ☐ National designated authority ☐ Accredited entity ☒ Delivery partner

Please provide contact information if the implementing partner is not the NDA/focal point Name of institution: CARICOM Which institution will implement the Development Fund Readiness and Name of official: Mr. Eugene Williams Preparatory Support project? Position: Resource Mobilization Officer Telephone number: 1-246-233-8295; 1-

246-436-1849. Email: [email protected] Full office address: First Fl. SKYMall,

Haggatt Hall, St. Michael, .I. Readiness and Preparatory Support Page 4 of 19

Additional email addresses that need to be copied on correspondences:

[email protected] ; [email protected]

Title of the Readiness to support the development of a Credit Risk Abatement Facility for CARICOM Readiness States– CARICOM Development Fund. support proposal

Please select the relevant GCF Readiness activity below (click on the box): ☐ I. Country capacity for engagement with GCF Type of ☐ II. Country programming process Readiness ☒ III. Direct access to climate finance support sought ☐ IV. Climate finance accessed ☐ V. Formulation of national adaptation planning and/or other adaptation planning processes Readiness and Preparatory Support Page 5 of 19

The Credit Risk Abatement Facility (CRAF) is an initiative being developed by the CARICOM Development Fund (CDF) in collaboration with the CARICOM Secretariat, the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), and other key implementing and strategic partners.

One of the critical challenges facing countries of the in delivering on their priorities is that of “access to finance”. This Readiness request and resultant Concept Note seeks to further aid countries of the region to achieve their Climate Change priorities by strengthening SMEs access to finance and encouraging the private sector to become a significant player as well as to provide different financing options.

CRAF aims to provide an incentive for traditional and other types of financial institutions to provide additional lending to small and medium-size entities (SMEs) for renewable energy and energy efficiency projects in the Caribbean.

The key outcome from a study of this challenge which was conducted between and 2018, was a proposed design for the CRAF made up of three main components:

• A Credit Risk Instrument (CRI) to stimulate additional lending – by underwriting up to 80% of a loan for renewable energy and energy Brief summary of efficiency projects, the CRI would mitigate the risk of loss if and when a the request borrower defaults; • A Technical Assistance Facility to grow the market by helping local participants such as SMEs, energy service companies and, in certain cases, financiers, to build capacity amongst all players and; • A programme of monitoring, evaluation and incremental improvement.

The CDB being the AE for the Caribbean region has agreed to handle the submission of CDF’s request to the GCF once all the requisite documentation has been completed. The CDF will work closely with the CDB to ensure that this happens, in fact there is a working group established between both institutions to address this. A planned pilot program is scheduled to commence in the 3rd Quarter of 2020 and support from the GCF is required to develop a Concept Note in support of a funding proposal for financial injection into the facility. Readiness funding is required to complete this Concept Note which will articulate the case for finding support through the development of the Note along with an Environmental and Social Impact Assessment; a Gender Analysis study and a detail review of the National Renewable Energy plans of the five (5) identified pilot countries. Taken together the document will show the relevance of this project to the stated aims of each of the country’s programming priorities on renewable energy and the role it plays amongst SMEs development priorities (Both Belize and Saint Lucia). In fact, PACT of Belize was recently accredited to the GCF to assist NGOs on environmental projects/sectors. one of PT’s stated goal is to assist in addressing one of the challenges to SME development; access to financing for RE conversion. This proposed initiative will also benefit other Readiness and Preparatory Support Page 6 of 19

countries in the region; in fact, Barbados, and will be participating in the proposed pilot roll-out on a phased basis.

It is anticipated that implementation of this facility will aid in the reduction of carbon emissions by the switch from fossil fuel power sources to renewable energy (RE) as well as energy efficient (EE) machinery. This is in keeping with the region’s goal of building resilience economically, socially and environmentally; RE and EE has been adopted as a policy imperative by all CARICOM States as agreed to in the CARICOM Energy Policy document, the effects of this change will be demonstrated in the reduced fossil fuel bill of the region; increased trade and employment; enhanced competitiveness to enable the region to compete in the global environment and increased economic resilience and the ability to rebound faster from natural disasters plaguing the region.

Total requested USD $124,986 Anticipated duration 12 months amount and currency ☒ Yes ☐ No This is the first time that the CDF is benefitting from Readiness resources. This application is supportive of the work done in Belize by the Climate Change Centre (CCCCC) in support of the overall mandate of the DFC, Beltraide and the Chamber of Commerce to increase access to finance of SMEs. Additionally, it complements the recently awarded readiness grant by GCF to which seeks to engage the private sector in that country as well as across the Caribbean especially as SMEs constitute some 80% of businesses in the region. SMEs contribute roughly 60% of GDP whilst accounting for roughly 70% of the employment in the Has the country received or is expecting to receive other Readiness and Preparatory region. Development of the CRAF will be able to Support funding allocations (including support financing of RE/EE projects in CARICOM adaptation planning) from GCF or other Member States where access to finance has been donors? identified as one of the main challenges; CRAF would assist in leveraging local financial institutions to provide financing without the onerous collateral requirements at reduced interest rates. The Technical Assistance (TA) component of CRAF will support both the SMEs and the Financial Services providers to see the benefits of collaboration.

Of all the countries who will benefit from the activities under this readiness namely Saint Lucia, Belize, Barbados, Grenada and Suriname, only Suriname has not benefitted from GCFs Readiness resource.

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2. BACKGROUND Readiness and Preparatory Support Page 8 of 19

The Caribbean region is faced with catastrophic natural disasters on an annual basis with the potential to wipe out or severely diminish a country’s (as evidenced recently in 2017 with the passages of and Maria which effectively eclipsed as much as 90% of the GDP in some of the islands affected). Small and Medium sized enterprises (SMEs) comprise the majority of the productive base of most of the countries in this region, and the impact of power sources (energy) plays a significant role in the competitiveness of all enterprises. As the region seeks to pursue economic resilience, it is mindful of the impacts these disasters have on the environment and on the economic and social fabric of the communities.

The current financing of renewable energy and energy efficiency projects is hampered by several factors: a perceived lack of demand from SMEs; limited understanding of the technology and potential cost savings that can be achieved through such interventions (from financiers and SME business owners alike); a relatively under-developed local market, including energy service companies; Lack of collateral or cash resources by SMEs; and a limited risk appetite among financers to extend credit for such interventions to SMEs. The region needs to effectively deploy it climate finances to achieve the goals of its NDC (based on each country’s commitment) and that of the UNFCCC. The CDF being the only regional Development Fund is uniquely placed to be the vehicle to foster this objective as well as resilient economic development through the provisions of climate Readiness and Preparatory Support Page 9 of 19 finance initiatives (grants and loans) together with technical assistance. Through the financing of these RE/EE projects in MSMEs, the CRAF will help MSMEs and Countries of the region to reduce their GHG emissions and at the same time build resilience to adverse weather systems through the use of RE sources as opposed to the existing fossil fuel based sources which are severely prone to disruptions in severe weather related conditions.

There have been attempts in some of the Member States of CARICOM to address this challenge with assistance from multilateral institutions, e.g. IDB led Eco-Micro Lending Programme to support lending to households and MSMEs in Jamaica and to a lesser extent Saint Lucia for RE and EE investments to help reduce the carbon emissions from fossil fuel appliances/systems and build resilience both economically and environmentally. CRAF seeks to build on these efforts by leveraging financial resources held by the private sector to support these types of activities whilst at the same time reducing the burden on beneficiaries for high and oftentimes unnecessary collateral requirements.

CRAF seeks to overcome these barriers through an integrated approach – provide a credit risk guarantee to financiers and a targeted technical assistance programme to build capacity amongst SMEs, financiers and a variety of other market participants, including energy service companies. An initial feasibility and design study in 2018 focused on five (5) Caribbean countries: Jamaica (now replaced by Grenada), Belize, Suriname, Barbados and Saint Lucia. The consultancy reviewed the region’s low-carbon energy marketplace and looked at what forms of intervention would work to encourage the uptake of renewable energy and energy efficiency in the SME sector.

The CRAF development has not undertaken any gender related activity in relation to the SME sector. However, there have been a number of studies done (CDB financed Country Gender Assessments) regarding to the issue of gender in SMEs of the region and also in the context of RE/EE activity in the region. The five (5) countries of the proposed pilot programme are all signatories to the UN SDGs and MDGs which involves a commitment to promoting gender equality and women’s empowerment. CRAF will build and support actions that seek to promote women in business especially amongst Caribbean SMEs.

The design recommendations for CRAF were validated and endorsed during a stakeholder workshop held in , Suriname, between 25 and 26 July 2018. Participants in the workshop refined and approved the key elements of the design of the CRAF, including the. The design endorsed by stakeholders for the Credit Risk Instrument, a Technical Assistance Facility and Monitoring and Evaluation Framework. The recommended CRAF conceptual model would consist of several key parts and be designed to stimulate additional projects and financing going into RE/EE in micro and small to medium-scale enterprises (MSMEs):

• A series of CRAF Partners playing key roles in achievement of CRAF objectives. These would be drawn from financiers, intermediaries such as ESCOs, industry associations, other providers of finance and risk mitigation and, potentially, larger MSMEs. • A comprehensive Technical Assistance Facility (TA) that would (a) stimulate demand by direct and indirect promotion of RE/EE; (b) build financier capacity in financing of RE/EE projects; and (c) help to build a viable “sector” by providing capacity building to service providers as well as intermediaries such as ESCOs; • A Credit Risk Instrument (CRI) available to financiers, intermediaries/ESCOs/funds or larger project developers and written at project or portfolio level, with the following key characteristics: • Up to 80% project costs covered • Subordinated on initial loss and [hybrid] seniority on recoveries • Maximum tenor [7] • Local and/or local currency Readiness and Preparatory Support Page 10 of 19

• Streamlined application, assessment, approval and claims using (a) information provided by CRAF Service Providers and (b) a simple online platform to be developed

The CRAF financial structure will take into account that the GCF funding currency must be in USD/EUR.

See Annexes 1 and 2 for supporting details.

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3. LOGICAL FRAMEWORK AND IMPLEMENTATION SCHEDULE

B Anticipated duration: 12 months

as Activities2 Outcomes eli Targets Monthly implementation plan of (brief description and deliverables) n activities3 1 e 1-2 3-4 5-6 7-8 9-10 11-12 1 2 Previously, an initial study was conducted on the development of the CRAF to identify the unmet demand for RE/EE financing Outcome 4: Sub-Outcome 4.4: amongst SMEs and to assess the appetite amongst the private sector commercial banks for funding activities in this sector. It also Climate finance Market preparation looked at what supporting action would be required to create the enabling environment for this initiative to flourish (see Annexes 1 strategies and project and business and 2 attached). The results indicated that there was a huge unmet demand and also that the private sector banks are interested pipeline strengthened planning for but lack the institutional capacity to address the challenges. CDF is now seeking to move this project to the next stage for full

deployment and funding by the GCF and as such has to undertake the following actions (from a carbon emission perspective as well as an ESS

scale-up of prioritized perspective) to meet GCF’s institutional requirements.

climate technology

solutions Activity 4.4.1:

Conduct an assessment of the impact that CRAF will have on the environment in which it will operate and the effects on all

stakeholders inclusive of minority groups and women; various country targets such as level of GHG emissions, etc.

Deliverable 4.4.1:

A completed report giving an assessment of the Environmental and Social Impact of the CRAF in the remaining three (3) Member

States (Barbados, Grenada and Suriname) before being made available to all CSME members. This report would complement the

demand assessment and programme design of the CRAF done in 2018. (See CRAF Final model and Report 2018) X Timeline: (month 3)

NB: Despite the decision of the CDF to use the SAP where an ESS would be produced for the countries of Belize and Saint Lucia initially, For the wider rollout of the CRAF Initiative, an ESS will still have to be done for the remaining countries of the Five country Pilot project. Outcome 4 Sub-Outcome 4.3: 0 1 Previously, an initial study was conducted on the development of the CRAF to identify the unmet demand for RE/EE financing Climate finance Project Concept note amongst SMEs and to assess the appetite amongst the private sector commercial banks for funding activities in this sector. It also strategies and project developed looked at what supporting action would be required to create the enabling environment for this initiative to flourish. The results pipeline strengthened indicated that there was a huge unmet demand and also that the private sector banks are interested but lack the institutional capacity to address the challenges. CDF is now seeking to move this project to the next stage for full funding by the GCF and as such has to undertake the following actions (completed Concept Note) to meet GCF’s institutional requirements.

Activity 4.3.1: a) Review the C-SERMS report, which includes a description of the National and Regional renewable energy sector

policies and strategies as it relates to the identified five (5) pilot countries. b) Undertake a detailed review of the work done thus far on the CRAF including a pre-feasibility study on the CRAF. c) Host consultations with stakeholders to get feedback d) Undertake a risk assessment of the CRAF and create a framework for monitoring the CRAF e) Prepare a draft Concept Note in the GCF format outlining the case for funding of the proposed CRAF. X

Deliverable 4.3.1: X

1 For baselines rated at 1 or 2, please shortly elaborate on current baselines on which the proposed activities can be built on, processes that are in place that the current Readiness proposal can strengthen, or any gaps that the proposed activities would fill in. If more space is needed, please elaborate this in Section 2. 2 Please include tangible and specific deliverables for each activity proposed, and the timeframe (month number) in which it will be delivered to GCF. Please note that during implementation all deliverables should be included within the implementation reports for GCF consideration. 3 If the duration of the proposal is longer than 24 months, please change the monthly columns to indicate 2 or 3 months each (e.g. change month “1” to month “1-2’ or “1-3”). Readiness and Preparatory Support Page 12 of 19

a) Report on Results of the proposed savings in carbon emissions from the project using a Log Frame format for all Member States X b) Fully developed Concept Note to access GCF funding through a full financial proposal.

c) Conduct a consultation/validation workshop on the contents of the developed Concept Note and include commentary received in the final document. X

d) Development of a detailed risk assessment and framework for monitoring and reporting of the CRAF in participating Member States.

e) A pre-feasibility report on the CRAF

Outcome 2 Sub-Outcome 2.4: 1 2 Previously, an initial study was conducted on the development of the CRAF to identify the unmet demand for RE/EE financing Country Programming Gender issues in amongst SMEs and to assess the appetite amongst the private sector commercial banks for funding activities in this sector. It also process climate finance looked at what supporting action would be required to create the enabling environment for this initiative to flourish. The results

programming indicated that there was a huge unmet demand and also that the private sector banks are interested but lack the institutional

capacity to address the challenges. No assessments of a gender responsiveness was undertaken during this study, CDF is now

seeking to move this project to the next stage for full funding by the GCF and as such is seeking to undertake the following

actions (Gender Analysis and Sensitivity report) to meet GCF’s institutional requirements.

Activity 2.4.1:

Undertake a gender Analysis study which will support/guide the implementation of the CRAF, taking into account the GCF Gender

Policy as it relates to the identified five (5) pilot countries.

Deliverable 2.4.1:

A Gender Analysis report and action Plan with the aim of identifying gender considerations and devising ways of streamlining X

gender equality in the project proposal.

Host a stakeholder consultation on the results of the Gender Analysis across the five (5) countries. X A Gender Plan and Policy for the CDF Readiness and Preparatory Support Page 13 of 19

4. ADDITIONAL INFORMATION (ONLY FOR ADAPTATION PLANNING SUPPORT)

N/A.

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5. BUDGET, PROCUREMENT, IMPLEMENTATION, AND DISBURSEMENT

5.1 Budget plan Please complete the Budget Plan in Excel using the template available in the Library page of the GCF website.

5.2 Procurement plan Please complete the Procurement Plan in Excel using the template available in the Library page of the GCF website. For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in section 2, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first tranche of disbursement requested below and provide a full procurement plan for the entire duration of the implementation period if available at this stage.

5.3 Disbursement schedule Please specify the proposed schedule for requesting disbursements from the GCF. For periodicity, specify whether it’s quarterly, bi-annually or annually only.

Please choose one option among the two below and delete the one that does not apply to you. Please fill in information under brackets:

☒ Readiness Proposal that requires a bilateral Grant Agreement to be signed with the GCF (please add more disbursement as needed) • The first disbursement amounting USD 100,000 will be transferred upon approval of the readiness request and effectiveness of the Grant Agreement; • The second disbursement amounting USD 24,986 will be made upon submission of a completion report and financial report, in form and substance acceptable to the Fund, including an audited expenditure statement.

Please include an indicative disbursement table showing the expected amounts to be requested and keep to multiples of USD 5,000.

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6. IMPLEMENTATION ARRANGEMENTS AND OTHER INFORMATION

6.1 Implementation map Please describe how funds will be managed by the NDA and/or the Readiness Delivery Partner.

The CDF will have overall oversight of the project and will provide periodic reporting throughout the project to all stakeholders (GCF, the NDAs of Belize and Saint Lucia and the CDB who are included in the joint CDF/CDB team managing the development of the CRAF); these will include (a) Procurement Plan (b) Financial Reports on disbursements and related expenditure (c) Monitoring Reports monthly and (d) progress reports. The CDF will also work closely with the CDB and in fact there is a working group established between both institutions to address this collaboration.

CDF and the NDA of Belize (Ministry of Economic Development & Petroleum) has a history dating back to 2011 where financial support (both loans and grants) was provided to the Development Finance Corporation (DFC) for on-lending to SMEs to support energy efficiency and renewable energy initiatives. In fact, Belize was the recipient of the first loan to be disbursed by the CDF, more recently, a further US$3M was provided in additional support to the DFC for on-lending to support SMEs to be more competitive. A number of projects in the Waterfoot Caye and other areas in Belize has benefitted from this support. Both the NDA and the CDF enjoy a mutually rewarding relationship and the CDF plays an integral part in the pursuit of the country’s economic development and resilience strategy.

A similar relationship exists with the NDA of Saint Lucia as well whereby financial support (both loans and grants) have been provided for amongst other things, resiliency initiatives as well as energy efficiency and renewable energy projects on the island.

The Delivery Partner (CDF) will have full responsibility for the execution of the Consultancies including guiding the Consultant, preparing and execution of the Procurement Plan, Financial Reporting and providing Monitoring reports to the NDA (Belize and Saint Lucia) and other stakeholders. A Project Manager will be appointed by the CDF and shall report monthly to the CEO of the CDF and copy to the NDA (Belize and Saint Lucia). The Project Coordinator/Manager will have day to day responsibility for the overall implementation of the project. He/she will be responsible for managing the various consultants and ensuring that the required deliverables are submitted in adherence to accepted quality standards. In addition, he/she will ensure that all reporting/monitoring (financial, procurement and administrative templates) is done and submitted to the relevant parties for their approval and consideration if necessary.

The CDF’s Procurement and Finance Units will provide essential services for the delivery of goods, works and services needed to realize the outputs of this Readiness. They will also provide guidance to the Project Manager for best practices in the procurement and purchase of goods, works and services. After approval of the Grant, a notification letter will be sent by the GCF to the DP.

Title to goods and other property financed by the Fund under the Grant Agreement shall be held by the Recipient or other entity approved by the Recipient, unless the Fund directs, at any time in its sole discretion that title be transferred to the Fund or another Entity nominated by the Fund.

All non-tangible services deliverables will be shared with the CDF and be stored in a knowledge database and uploaded to the CDF website under its documents & publications sub-menu for access by all users/visitors to its website; protocols are in place through our website maintenance policy to treat with these items.

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Flow Chart of Proposed Implementation Arrangement

Green Climate Fund

CARICOM DEvelopment Fund

Project NDA - Saint NDA - Belize CDB Coordinator Lucia

Consultant 1

Consultant 2

Consultant 3

6.2 Risks, monitoring and evaluation (M&E), and other relevant information

TYPE OF RISKS RISKS RISK LEVEL MITIGATION (Low; medium; High)

Financing Risk Funding not Low Disbursement request will be received in made in a timely manner. In timely manner. addition, most expenses associated with this project will be front loaded.

Schedule Risks Delays in Low Periodic review meeting will be implementation, held with all stakeholders and disbursements gaps, deficiencies will be or reporting. identified and addressed.

Cost and market Risk Loss of Medium Funds will be held in US$ to purchasing mitigate against any market power due to volatility. inflation and FX fluctuations. Readiness and Preparatory Support Page 17 of 19

Environmental Risks Natural Low Scheduling of most activities disasters which outside of the Hurricane season affect the as much as possible. Caribbean region annually. CDF has been working closely with the Caribbean Disaster Emergency Management Agency (CDEMA) in its support to infuse resilience management practices in all aspects of economic activity. This activity is supported by a host of development partners including the EU, UN, GIZ and to name a few.

Human Resource/Consultant Timely Low Recruitment will commence in Risks identification of parallel with the startup suitable activities to reduce lag time. resource.

M & E PLAN

OBJECTIVES Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Enabling Monthly Monthly Monthly Monthly Monthly Monthly Effectiveness: meetings meetings meetings meetings meetings meetings ensuring that with with with with with with all stakeholder stakeholder stakeholder stakeholder stakeholder stakeholder stakeholders s (Virtually) s (Virtually) s (Virtually) s (Virtually) s (Virtually) s (Virtually) are aware and ready to receive the various requests from the Consultants. Communicatio n strategy with stakeholders. Assessing Inception Progress Progress Timely Participatio Review of Progress: reports reports reports feedback n in all all draft assessment of from based on based on from the stakeholder final the Consultants periodic periodic Project consultatio documents Environmental meetings meetings Coordinator n to ensure and Social with the with the on draft that issues Safeguards; Consultants Consultants documents relevant to report on submitted the work is regional/nation by the addressed al renewable Consultants Readiness and Preparatory Support Page 18 of 19

energy sector policies; consultations hosted; gender analysis undertaken. Indicators of progress will be identified. Enabling Feedback Feedback Reporting: from from Final concept Steering Steering Note, ESS committee committee Plan and (NDA (NDA Gender Belize, NDA Belize, NDA Analysis Plan Saint Lucia Saint Lucia and and CDB, and CDB, Assessment. CDF) CDF) Final reports on the execution of the Consultancies.

THEORY OF CHANGE

The Theory of Change for the CRAF initiative is based on the premise that in roughly five (5) years time, given sufficient financial resources and technical assistance support, significant changes can be made by stakeholders (SMEs, Financial Institutions, Suppliers and Consultants) towards the realization of energy resilience and utilization of non-fossil energy sources leading to Economic and Environmental resilience.

Assumptions:

• All stakeholders are supportive of the CRAF • Adequate resourcing (Financial and Technical) of the CRAF/CDF • Relative global economic, political and social stability • Strengthened capacity of stakeholders to implement CRAF • Increased regional support for RE/EE efforts.

Risks

• Natural disasters and challenges of climate change • Rapidly evolving technologies as it relates to the energy sector.

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Credit risk Instrument

Output Technical Assistance programme

Reduction in GHG emissions Intermediate Outcomes Greater use of non fossil CRAF energy sources (solar, wind, etc)

Ultimate Outcome Environmental Resilience

5.1 Budget Plan Please add rows for Outcomes, Outputs and Cost Categories as required. Additional budget categories may be added by manually typing them on the Budget Category sheet.

Detailed Budget (in US$) Disbursement Plan Total Budget Outcomes Budget Categories Total Budget Total Budget Unit # of Unit Unit Cost (per outcome) 6m 12m 18m 24m 30m 36m choose from the drop-down list (per budget category) (per sub-outcome)

A completed Environment and Social Impact Consultant - Individual - Local W/Day 40 500.00 20,000.00 25,000.00 25,000.00 Assessment report delivered Travel – Local Trip 5 1,000.00 5,000.00 Climate finance strategies - and project pipeline - 25,000.00 strengthened - - - - A pre-feasibility analysis of the CRAF in the Consultant - Individual - Local W/Day 24 500.00 12,000.00 identified five (5) pilot countries conducted. 15,000.00 Climate finance strategies Stakeholder Consultations Travel – Local Trip 5 600.00 3,000.00 50,000.00 and project pipeline 50,000.00 Concept Note developed. Consultant - Individual - Local W/Day 40 500.00 20,000.00 strengthened Risk Assessment and Framework tool for Workshop/Consultation Training 1 10,000.00 10,000.00 35,000.00 monitoring and reporting on CRAF completed. Travel – Local Trip 5 1,000.00 5,000.00 A Gender Analysis report. Consultant - Individual - Local W/Day 40 500.00 20,000.00 25,000.00 A Gender Plan and Policy for the CDF Country programming Travel – Local Trip 5 1,000.00 5,000.00 35,000.00 35,000.00 process Workshop/Consultation Training 1 10,000.00 10,000.00 Stakeholder Consultations held 10,000.00 - Total Outcome Budget 110,000.00 110,000.00 - - - - - Consultant - Individual - Local Month 6 500.00 3,000.00 Actual amount and % Maximum PMC that Audit Fee Lumpsum 1 4,000.00 4,000.00 of PMC requested: can be requested: Project Management Cost (PMC) - do not change the formula do not change the formula Up to 7.5% of Total Activity Budget - 7,000.00 8,250.00 - 6.36% 7.50%

FOR GREEN CLIMATE FUND SECRETARIAT'S USE ONLY Breakdown (per budget category) Total (per budget category) Audio Visual & Printing - Audit Fee 4,000.00 FOR GREEN CLIMATE FUND SECRETARIAT'S USE ONLY Consultant - Individual - International - Consultant - Individual - Local 75,000.00 Total Outcome Budget 110,000.00 Professional Services – Companies/Firm - Project Management Cost (PMC) 6.4% requested 7,000.00 IT Equipment - Contingency 1% requested 1,100.00 Office Supplies - Travel - International - Travel – Local 18,000.00 Sub-Total (Total Outcome Budget + Contingency + PMC) 118,100.00 Workshop/Training - 0 - Delivery Partner Fee (DP) - Up to 8.5% of the Sub-Total 6,885.23 0 - 0 -

0 - Total Project Budget (Total Activity Budget + Contingency + PMC + DP) $ 124,986.00 0 - Total Outcome Budget + PMC 97,000.00 Budget Note Detailed Description

Local Consultant Hiring a local consultant (Gender Specialist) for 40 days @ $500 per day for activity 2.4.1 Consultation Regional Workshop for I day for regional stakeholders (8) @ $10,000. Travel Travel for Consultant to five countries @$1000 each Local Consultant Hiring of Consultant to undertake pre-feasibility study of CRAF in 5 countries @ $500 for 30 days (4.3.1) Consultation Regional Workshop for I day for regional stakeholders (8) @ $10,000. Travel Travel for Consultant to five countries @$600 each Local Consultant Hiring a consultant to caoduct an ESS for the Project for 40 days @ $500 per day for activity 4.4.1 Travel Travel for Consultant to five countries @$1000 each Local Consultant Hiring of Consultant to coordinate all activities and finalize the Concept Note @$500 for 40 days for activity 4.3.1 Travel Travel for Consultant to five countries @$1000 each 5.2 Procurement Plan For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in Section 3, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first tranche of disbursement requested below and provide a full procurement plan for the entire duration of the implementation period if available at this stage.

Thresholds Item Item Description Estimated Cost (US$) Procurement Method (Min-Max monetary value for which indicated Estimated Start Date Projected Contracting Date procurement method must be used) Goods and Non-Consulting Services Regional Workshop 1 - Risk airfare, per diem, catering and venue 10,000.00 Direct Award 1-Sep-2019 1-Aug-2019 assessment & framework tool for 40 persons Regional Workshop 2 related to airfare, per diem, catering and venue 10,000.00 Direct Award 30-Sep-2019 1-Aug-2019 Gender Analysis for 40 persons Environmental and Social safeguards Local Travel 1 5,000.00 study Local Travel 2 Pre-feasibility study 3,000.00 Risk assessment & framework Local Travel 3 5,000.00 tool/Concept Note development

Local Travel 4 Travel for conduct of gender analysis 5,000.00

Sub-Total (US$) $ 38,000.00

Consultancy Services Local Consultant Climate Change Specialist 20,000.00 Consultants Qualification Selection (CQS) $10,000 - $30,000 Sep 01,02019 1-Aug-2019 Local Consultant Gender Specialist 20,000.00 CQS $10,000 - $30,000 Sep 01,02019 1-Aug-2019 Local Consultant Project Coordinator 20,000.00 CQS $10,000 - $30,000 Sep 01,02019 1-Aug-2019 Local Consultant Researcher for pre-feasibility 12,000.00 CQS $10,000 - $30,000 Sep 01,02019 1-Aug-2019

Sub-Total (US$) $ 72,000.00