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With CARICOM Development Fund for Belize and Saint Lucia 04 October 2019 | Strategic Frameworks

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with CARICOM Development Fund for Belize and Saint Lucia 04 October 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 you 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]” Readiness and Preparatory Support Page 3 of 19 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 & Petroleum Sir Edney Cain Building Ground Floor, Right Wing, Belmopan, 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, Castries 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, Barbados W.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 area 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 Caribbean in delivering on their Climate Change 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 February and July 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, Grenada and Suriname 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 Caribbean Community 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 Jamaica
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