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Annex XIII - Additional Background Materials (Part B) for NEA O&M Costs

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Annex XIII - Additional Background Materials (Part B) for NEA O&M Costs Clarifications on the letters of commitments and co-financing from the project partners $ amount $ amount $ amount $ Amount stated in outside of Partner $ Amount stated in FP occurring in excluded from Notes commitment letter project period project period co-financing for O&M 1. The MoENRP co-financing letter was signed on 3 May 2017. It refers to the total co-financing amount of $34.75 million with NEA 20-year O&M costs for hydrometeorological monitoring equipment of $23.16 million that originally included above all 4 new mini radars to be purchased with the GCF funds. For the first submission to GCF on 5 June, UNDP and the GoG explored opportunities for reducing the total GCF budget request. Based on the consultations with MoENRP and NEA, the government reduced its request for hydrometeorological monitoring equipment, removing the 4 mini-radars from the proposal. As a result the total O&M costs under the NEA co-financing were reduced by the amount corresponding to the O&M for the 4 mini radars ($39,000 x 4 radars x 20 years = $3.120 mln). $3.120 mln were excluded from co- MOENRP 12 778 000 34 750 000 12 778 000 18 852 000 3 120 000 financing and from O&M estimates. Therefore, the total 20-year O&M costs for equipment were estimated as $20.04 million. The equipment will be purchased by Year 2 of the project; Therefore disbursement of the NEA O&M costs will start from Year 3 of the project. Therefore, 5-year NEA O&M costs ($ 5.01 mln) were included in total MoENRP co-financing reflected in the FP (US$ 12.778). 2. NEA co-financing also included 20-year data management costs of $5.88 mln; out of these 7-year data management costs ($2.058 ) were counded as co-financing occuring in project period; the rest 13-year data management costs were counted as O&M outside of the project period. See Annex XIII - Additional background materials (part b) for NEA O&M costs. MOA 600 000 2 400 000 600 000 1 800 000 O&M starts from year 3; 5-year O&M costs included as co-financing SDC 5 000 000 5 000 000 5 000 000 MIA 16 537 694 16 537 694 16 537 694 MRDI 7 271 730 7 271 730 7 271 730 Construction costs under activity 3.3. Tbilisi Tbilisi funds for the implementation of PDNA and annual river bank rpotection works were not 1 051 600 13 151 600 1 051 600 12 100 000 Municipality included as co-financing as they were not considered new and additional Local - 3 146 972 3 146 972 O&M for flood defence structures Governments 1391-01-2-201704281042 N 01/1391 28/04/2017 To: Mr. Niels Scott Subject: a letter of commitment for participation in implementation and co-financing of the project “Scaling-up Multi-Hazard Early Warning System and the Use of Climate Information in Georgia” UN Resident Coordinator/ UNDP Resident Representative in Georgia Your Excellency, The Ministry of Regional Development and Infrastructure of Georgia (MRDI) fully supports the proposed GCF project: Scaling-up Multi-Hazard Early Warning System and the Use of Climate Information in Georgia, given its importance for increasing the resilience of Georgian people, their assets and critical infrastructure to climate induced disaster risks. Herewith, we confirm our commitment to participate in the implementation of community resilience structural measures of the project with high risk reduction potential through co-funding construction, commissioning and supervision, including environmental compliance supervision. Our co-financing of the given activity is USD 7 271 730 during the whole implementation period of the project (2018-2023) that includes the cost of implementation of a number of community resilience structural measures of the project with high risk reduction potential (Please refer to Annex to this letter for the list of locations to be funded and implemented by MRDI). In addition to above, the MRDI as one of the major partners and stakeholders of the project will actively participate in developing multi-hazard risk reduction plans for 11 river basins envisaged under the project, through providing its experts advice on priority structural measures and feasibility studies of these plans. We would like to thank the GCF and UNDP for the continued support in addressing current and future climate challenges in Georgia. Sincerely, Zurab Alavidze Minister ANNEX Tentative Cost (USD) Site Location River # (Village/Town) GCF 1 Gaghma Kodori Rioni 291,250 2 Sagvichio Rioni 699,000 3 Gori Liakhvi 545,580 4 Alaverdi Khodashniskhevi 1,372,300 5 Siriachkoni (Sagvichio) Rioni 582,500 6 Narionali (Guleikari) Rioni 640,750 7 Vazisubani Rioni 407,750 8 Patara Poti (Shavgele) Rioni 2,330,000 9 Milari (Anaga) Alazani 207,000 10 Telavi Telaviskhevi 195,600 TOTAL 7,271,730 Annex 1 National Environmental Agency - co-financing Table 1: Equipment Operation and Maintenance (O&M) costs for 20 years in thousand USD Activities \ year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 9 20 Total The cost for 2 upper air sounding stations supplies with 170 170 170 170 170 170 170 170 170 170 170 170 170 170 170 170 170 170 170 170 3,400 radiosondes and latex membranes 5 big and 4 mini meteorological radars operations and 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 14,400 maintenance (O&M) cost per year including staff salaries The O&M costs for purchased standard and specialized (meteorological, agro-meteorological, road 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 800 meteorological, upper air sounding) stations and posts The cost for spare parts (sensors, filters, etc.) of the observation equipment; the total cost for 20 years 20 20 35 35 35 35 35 35 35 35 60 60 60 60 60 60 60 60 60 60 920 operations and maintenance is USD 0.9 million The O&M cost for purchased telecommunication equipment and the costs for the data transfer on national 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 1,440 and international levels and corresponding salaries The total cost for the operations and maintenance of existing Geological network including the monitoring 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 2,200 observation and operation of the network operation and geological monitoring costs Total (table 1) 1,132 1,132 1,147 1,147 1,147 1,147 1,147 1,147 1,147 1,147 1,172 1,172 1,172 1,172 1,172 1,172 1,172 1,172 1,172 1,172 23,160 Table 2: Data management and EWS operation costs for 20 years in thousand USD Activities \ year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 9 20 Total The cost for creation of the early warnings related to the disasters connected with weather and water including 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 3,000 staff salaries The cost of hydro-meteorological hazards and risk zones periodic assessment, detection and mapping including the 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 1,440 staff remuneration The total cost for Geological data processing and reporting, including cadaster and geological hazard and 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 72 1,440 risk zoning maps periodic updating including the staff remuneration Total (table 2) 294 294 294 294 294 294 294 294 294 294 294 294 294 294 294 294 294 294 294 294 5,880 Total (table 1 and table 2) 1,426 1,426 1,441 1,441 1,441 1,441 1,441 1,441 1,441 1,441 1,466 1,466 1,466 1,466 1,466 1,466 1,466 1,466 1,466 1,466 29,040 N 1924/01 1924-01-2-201705251653 25/05/2017 To: Mr. Niels Scott UN Resident Coordinator/ UNDP Resident Representative in Georgia Subject: a letter of commitment for the implementation, co-financing and Operation and Maintenance (O&M) for GCF supported project “Scaling-up Multi-Hazard Early Warning System and the Use of Climate Information in Georgia” Your Excellency, The Ministry of Agriculture of Georgia (MoA) presents its compliments to the UN/ Resident coordinator and UNDP country office representation in Georgia and expresses sincere gratitude for fruitful cooperation on number of projects in Georgia. Georgia’s agricultural sector plays a key role in the country’s economy. Georgian farmers are going to fulfill a principal role in providing one of the fundamental needs of society: a safe, secure, and affordable food supply. This underlines the importance of the relationship between climate change impacts on agriculture and food security. During last decades negative consequences of climate change have drastically reduced agricultural productivity. Increasing frequency of natural hazards, makes overall adaptation to climate change in agriculture a priority on national level, focused on developing relevant Climate Smart Agriculture and Disaster Risk Reduction measures. Establishment of early warning system is vitally important for us. In its Intended Nationally Determined contribution/INDC (in frames of UNFCCC Paris Agreement), Georgia declared that “For the adaptation of agricultural sector to the expected climate change, wide range of measures are planned.
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