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Regular-Sized Proj ADAPTATION FUND BOARD SECRETARIAT TECHNICAL REVIEW OF PROJECT/PROGRAMME PROPOSAL PROJECT/PROGRAMME CATEGORY: Regular-sized Project _________________________________________________________________________________________________________ Country/Region: Armenia Project Title: Artik city closed stone pit wastes and flood management pilot project AF Project ID: ARM/NIE/Urban/2017/1 IE Project ID: Requested Financing from Adaptation Fund (US Dollars): 1,435,100 Reviewer and contact person: Daouda Ndiaye Co-reviewer(s): Martina Dorigo IE Contact Person: Samvel Baloyan Review Criteria Questions Comments 1. Is the country party to the Yes. Kyoto Protocol? 2. Is the country a developing Yes. Shirak marz in known for its reserves of country particularly tufa, pumice, and limestone mines, especially vulnerable to the adverse Artik region which is located in the southern part of the marz. The region is located on the effects of climate change? volcanic plateau and foothills and is known for its favourable conditions for grain crop and livestock development. For years exploited stone Country pits have had negative impact on the Eligibility environment. In addition, increased frequency of severe floods in the last 20 years, which is due to the spring temperatures that are not typical for the region, resulted in accelerated snowmelt causing the emergence of strong floods. Climate change related risks and the frequency of hazardous hydro-meteorological phenomena have increased over the last decade as a result of changes in global atmospheric circulation. 1. Has the designated Yes. Letter dated 6 August 2018. government authority for the Adaptation Fund endorsed the project/programme? 2. Does the project / The project aims at improving resilience of highly programme support exposed Artik city of Armenia to hydro- concrete adaptation actions meteorological threats that are increasing in to assist the country in frequency and intensity as a result of climate change. The project will reduce the quantity of addressing adaptive debris flowing to Vardaqar reservoir located capacity to the adverse downstream of the Artik city and the pollution of effects of climate change agricultural lands (300 hectares of arable land and build in climate 190 ha of pastures, 15 ha of hay meadows) and resilience? 640 ha of artificial forests, 80 ha of water reservoir and other natural landscapes in the project impact area by increasing their resilience Project Eligibility and adaptation to climate change. The project specific objectives are to: 1. Increase adaptation level of natural and agricultural landscapes, 2. Prevent floods and alleviate their consequences, 3. To restore the natural landscape of the area affected by climate change and anthropogenic impacts, at the same time to demonstrate the possibilities of adaptation level increase of degraded natural landscapes, 4. Improve the adaptation potential of community producers, institutions, and other relevant stakeholders regarding to climate change under current climate change conditions. 3. Does the project / Yes. programme provide economic, social and environmental benefits, particularly to vulnerable communities, including gender considerations, while avoiding or mitigating negative impacts, in compliance with the Environmental and Social Policy and Gender Policy of the Fund? 4. Is the project / programme Yes. cost effective? 5. Is the project / programme Yes. consistent with national or sub-national sustainable development strategies, national or sub-national development plans, poverty reduction strategies, national communications and adaptation programs of action and other relevant instruments? 6. Does the project / Yes. programme meet the relevant national technical standards, where applicable, in compliance with the Environmental and Social Policy of the Fund? 7. Is there duplication of No. project / programme with other funding sources? 8. Does the project / Yes. programme have a learning and knowledge management component to capture and feedback lessons? 9. Has a consultative process Yes. taken place, and has it involved all key stakeholders, and vulnerable groups, including gender considerations in compliance with the Environmental and Social Policy and Gender Policy of the Fund? 10. Is the requested financing Yes. justified on the basis of full cost of adaptation reasoning? 11. Is the project / program Yes. aligned with AF’s results framework? 12. Has the sustainability of the Yes. project/programme outcomes been taken into account when designing the project? 13. Does the project / The project provides an overview of the programme provide an ESP risks; some substantiation is included overview of environmental in Section II.E of the proposal and further and social impacts / risks information is provided in Section III.C. identified, in compliance with the Environmental and Gender equality and women’s Social Policy and Gender empowerment: Policy of the Fund? CR1: Please clarify if an initial gender CR1: please see text in red on assessment was carried out and, the case page 68-69 being, how the findings have been used. Core labour rights: A joint ILO and National Statistical Service of the Republic of Armenia report of 2016, as well as other sources, conclude that particularly in the rural agriculture areas of Armenia there are risks of children being engaged in (the worst forms of) child labour. CR2: Please clarify and elaborate on the CR2: See table 13, page 102, finding that there are no related risks with section core labour rights. the project. Pollution prevention and resource efficiency: The finding of a ‘very low’ risk for the principle of pollution prevention is not substantiated, the more as the proposal includes no information on the nature nor the disposal of the waste that will be removed from the storm drains. The same applies to the waste that will be collected through the bins and the waste collection truck that will be provided by the project. CR3: Please clarify the nature and CR3 See table 13, page 103, quantities of the waste that will be collected section pollution prevention and and generated by project activities. resource efficiency Resource 1. Is the requested project / Yes. Availability programme funding within the cap of the country? 2. Is the Implementing Entity Yes. The requested fees amount to 112,400 Management Fee at or USD, or 8.5% of the total budget before the below 8.5 per cent of the fees. total project/programme budget before the fee? 3. Are the Project/Programme Yes. EPIU intends to play as executing Execution Costs at or entity for the project, therefore the below 9.5 per cent of the execution costs is 1.5% of the total project total project/programme budget, as indicated in Annex 7 of the budget (including the fee)? Operational Policies and Guidelines of the Fund (http://www.adaptation-fund.org/wp- content/uploads/2017/11/OPG-ANNEX-7- Project-Programme-Implementation- Approved-Oct-2017.pdf ). 4. Is the project/programme Yes. EPIU is the accredited National submitted through an Implementing Entity for Armenia. Eligibility of IE eligible Implementing Entity that has been accredited by the Board? 1. Is there adequate The government of Armenia has endorsed arrangement for project / the role of EPIU as executing entity for this programme management, project. in compliance with the Implementation Gender Policy of the Fund? Arrangements 2. Are there measures for Yes. financial and project/programme risk management? 3. Are there measures in Table 15 contains additional risk place for the management identification information, some of which of for environmental and supplements but also contradicts social risks, in line with the information provided in the designated Environmental and Social Section II.K. That information is out of place Policy and Gender Policy in Section III.C which should list measures of the Fund? for ESP risks management. CR4: Please consolidate the risks finding CR4: See table 13, page 101, all table of section II.K with information from text in red. Table 15, as well as information provided in See table 15, page 108, all text in Section II.E. In Table 15, please consolidate red. only risks management measures, including those currently presented separately in the ESMP. The proposal has not adequately identified the risk under the pollution prevention principle, whilst dealing with and collecting waste are at the core of the project activities, some of which will generate their own waste. CR5: Please include a waste management plan as part of the ESMP. CR5: See page 115, sentence in The proposal contains a grievance red. mechanism. CR6: Please clarify that grievances may CR6: See page 116, paragraph in also be addressed directly to the AFB red. Secretariat at the address mentioned in the ESP (para 34). 4. Is a budget on the Yes. Implementing Entity Management Fee use included? 5. Is an explanation and a Yes. breakdown of the execution costs included? 6. Is a detailed budget Yes. including budget notes included? 7. Are arrangements for Yes. monitoring and evaluation clearly defined, including budgeted M&E plans and sex-disaggregated data, targets and indicators, in compliance with the Gender Policy of the Fund? 8. Does the M&E Framework Yes. include a break-down of how implementing entity fees will be utilized in the supervision of the M&E function? 9. Does the Yes. However, please align the expected CAR: See results framework part project/programme’s outcomes of the project with their relevant E in red, from pages 120-126 results framework align outcome indicators in the results framework, with the AF’s results and do the same for the expected outputs. framework? Does it include The current outline does not dissociate at least one core outcome those two. Also, please include at least one indicator from the Fund’s core indicator from the Adaptation Fund results framework? Results Framework. CAR 10. Is a disbursement schedule Yes. with time-bound milestones included? Technical The project aims at improving resilience of highly exposed Artik city of Armenia to hydro-meteorological threats that are increasing in frequency and intensity as a result of climate change.
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