with UN – Habitat for Lao People's Democratic Republic 31 October 2019 | Strategic Frameworks

Programme title: Urban climate change resilience in cities along the Greater Mekong Sub- region East-West Economic Corridor (EWEC) in Lao PDR

Country: Lao PDR

Ministry of Natural Resources and Environment, Department of Climate National designated authority: Change

Implementing Institution: UN-Habitat Lao PDR

Date of first submission: 30 September 2018

Date of current submission / 12 July, 2019 version number V. 05 Readiness and Preparatory Support Page 2 of 17

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]”

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1. SUMMARY

Country name: Lao People’s Democratic Republic Ministry of Natural Resources and Name of institution representing NDA or Environment, Department of Climate Focal Point: Change Name of contact person: Mr. Syamphone Sengchandala Contact person’s position: Deputy Director General Country submitting the Telephone number: +856 20 5550 8961 proposal Email: [email protected] Ministry of Natural Resources and Full office address: Environment Vientiane Capital, Lao PDR Additional email addresses that need to - be copied on correspondences: Date of initial 30 September 2018 submission Last date of 12 July 2019 Version number V.05 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: UN-Habitat Name of official: Atsushi Koresawa

Which institution Director, UN-Habitat Regional Office for will implement the Position: Readiness and Asia and the Pacific (ROAP) Preparatory Support project? Telephone number: + 81927247121 Email: [email protected] UN-HABITAT ROAP-Fukuoka ACROS Fukuoka Building, 8th Floor Full office address: 1-1-1 Tenjin, Chuo-ku, Fukuoka 810- 0001, Japan. Additional email addresses that need to [email protected] be copied on correspondences: [email protected]

Title of the Urban climate change resilience in cities along the Greater Mekong Sub-region East- Readiness West Economic Corridor (EWEC) in Lao PDR support proposal

Please select the relevant GCF Readiness activity area below (click on the box): Type of ☒ I. Country capacity for engagement with GCF Readiness support sought ☐ II. Country programming process ☐ III. Direct access to climate finance Readiness and Preparatory Support Page 4 of 17

☐ IV. Climate finance accessed

☐ V. Formulation of national adaptation planning and/or other adaptation planning processes Readiness and Preparatory Support Page 5 of 17

The East West Economic Corridor (EWEC) in Lao PDR, which runs through Province, is characterised by increasing levels of investment, cross-border trade1 and as a result, faces higher rates of urbanisation than the rest of the country. Concurrently, settlements in this area are increasingly being impacted by hazards associated with Climate Change: in recent years floods have affected at least 750,000 people, while at least 100,000 people were affected by severe storms. However, there is limited understanding of the linkage between investments, infrastructure development, population growth and changing settlements in the EWEC and how these are currently being impacted by CC. These areas have great potential for economic green growth, alleviating poverty and improving the living standards for some of the most vulnerable people in Lao PDR. However, the economic growth is being put at risk because of limited capacity and activities to incorporate CC resilient investment at the sub-national level. Thus, GCF funds will be used for strengthening the local and institutional capacity for stimulating CC resilient investment flows along the EWEC in . With increased capacity and financing, the EWEC in Laos offers considerable potential for climate resilient economic growth and sustainable development.

The proposed project is in line with the Nationally Determined Contribution (NDC) of Brief summary of Laos of the Paris Agreement. Laos’ NDC has five priority areas for adaptation projects; the request 1) Agriculture, 2) Forestry and Land Use Change, 3) Water Resources, 4) Transport and Urban Development, 5) Public Health. This project aligns with the Transport and Urban Development priority area. It also will provide some support to the mitigation priority area on the implementation of climate change action plans (which include adaptation, but in many cases have not been developed yet). The beneficiaries of this project will be technical level officials from the Ministry of Natural Resources and the Environment, Ministry of Public Works and Transport, Ministry of Planning and Investment, and officials from their respective provincial departments in Savannakhet (note, in Laos, each ministry has a corresponding department at the province level).

The proposed project also builds on UN-Habitat’s implementation comparative advantage, acquired through an extensive country programme and history of project implementation is Laos. The project aligns with, and complements, UN-Habitat’s existing portfolio of projects in Laos. Currently, UN-Habitat is implementing the Climate and Disaster Resilient Rural and Emerging Human Settlements Project in nearby , and Saravan Provinces. Other projects under implementation or recently completed led by UN-Habitat and that are of direct relevance to the proposed GCF Readiness project include the Mekong Region Water and Sanitation Initiative (MEK- WATSAN), the Water for Asian Cities programme, and the Low Emissions Development project, implemented in conjunction with ICLEI.

Total requested 349,992 USD Anticipated duration 18 months amount and currency ☒ Yes

So far, Lao PDR has received 4 Readiness funding allocations, all of 18 months length for a total sum of almost 1.6 million usd: Has the country received or is expecting to receive other Readiness and Preparatory With UNDP as accredited entity for GCF initial Readiness for Support funding allocations (including strengthening the country’s capacity and engaging adaptation planning) from GCF or other stakeholders; with FAO as accredited entity focusing on the donors? forestry sector, in order to optimize the formalization of coordination mechanisms and the implementation of the REDD+ strategy; with GGGI as delivery partner focusing on low emissions, resilience analysis and cities preparedness in the frame of green climate resilient cities; and with GIZ as delivery partner for supporting the accreditation process of

1 Cross border trade takes place with both Vietnam and Thailand. Readiness and Preparatory Support Page 6 of 17

the Environmental protection Fund (EPF).

2. BACKGROUND

The GCF Readiness Grant will be supporting a study of the towns in the Greater Mekong Subregion (GMS), along a 229-kilometres-long stretch of the East West Economic Corridor (EWEC) 2 in Laos in order to contribute to becoming better equipped in the development as resilient settlements in the context of a changing climate. The development of the transnational corridor has been spearheaded by projects funded by the Asian Development Bank (ADB). However, due to the actual limited understanding of the linkage between investments, development, demographic change and the impact of climate change, the implementation of readiness activities now has significant potential to offset maladaptation in the long run. The 1,320 km East–West Economic Corridor (EWEC) is a continuous land route stretching across Viet Nam, the Lao PDR, Thailand, and Myanmar, and provides a direct link between the Andaman Sea in the Indian Ocean and the South China Sea3. An overview map of the EWEC is presented below4:

The proposed projects under the EWEC, which are at varying stages of formulation at present, are presented in the table below5. While one of the sub-projects under the EWEC mentions perennial flooding, and the EWEC programme more generally acknowledges climate change, there is no explicit mention in the design of the proposed investments of the actual changes that have taken place, or are projected to take place in the future (as described below). We can’t reliably conclude at this stage that investments made by ADB in the EWEC will consider climate change, and there is no evidence that private investment, which will likely flow into the EWEC, will make any consideration of climate change or climate extremes.

2 The EWEC crosses through Lao PDR’s provinces of Savannakhet and Khammuoane and links the Andaman Sea to the South China Sea from Moulmein in Myanmar to Danang in Vietnam. Besides, it crosses Lao PDR and Thailand’s territory without including any of the biggest Thai cities. 3 ADB (2016) Urban Development in the Greater Mekong Sub-region, p.150 4 Ibid, p.158 5 Ibid, p.178 Readiness and Preparatory Support Page 7 of 17

While the proposed investments ADB will make in the EWEC are clear, and presented in the table above, it is not yet clear what private sector investment will follow in the target area. For this reason, activities 2.1.1 and 2.1.2 have been proposed (see below). This activity will be done in particular coordination with GGGI, who have an ongoing GCF readiness project in Laos. This activity is particularly crucial. While private investments are coordinated with government in Laos, they often do not consider climate change effectively, and are not routines coordinated with the NDA, and do not receive input from climate change experts. The proposed activities seek to both attract further finance and ensure that existing or planned investment not related to the project gives thorough consideration to climate change. By equipping Lao PDR with an enhanced capacity to address its climate change challenges in the corridor towns, the proposed readiness project will lay the groundwork for future adaptation investments in resilient infrastructure and urbanization in a rapidly growing area of Lao PDR. Furthermore, it complements the projects that the UNDP, the Global Green Growth Institute, and potentially the FAO and GIZ, are undertaking in Lao PDR. In particular, UNDP, which shares its office building with UN-Habitat, is working inter alia to strengthen the capacity of the Climate Change Department. UN-Habitat will comprehensively engage with UNDP in a mutually beneficial way, and for the benefit of the government of Lao PDR For example, under UNDP’s output 1.1.3 it will engage a stakeholder engagement mechanism that UN-Habitat will participate in, strengthen and share information with. UNDP’s output 1.1.4 will create a climate finance steering committee. UN-Habitat will participate in this, if invited, and will support it either way by presenting information from this project to it and supporting it to enhance the volume and quality of finance, including private finance, flowing into Laos. This project will also coordinate with UNDP on all of its second output, include its proposed stocktake of existing plans (which should include the EWEC), and will support its partners to engage in the call for concepts. GGGI is working to strengthen coordination capabilities of the NDA. Included in this, GGGI will establish a mechanism for coordination between the NDA and stakeholders involved in Green and Resilient Cities. UN- Readiness and Preparatory Support Page 8 of 17

Habitat commits to participating in this mechanism, and sharing relevant information from this and other projects (including its under implementation Adaptation Fund project with the Ministry of Public Works and Transport). GGGI will also support the development of a database of projects with a Green/Resilient City component, which UN-Habitat will contribute to. Finally, GGGI will Identify private sector actors including domestic financial services providers such as banks, microfinance institutions and insurance companies with the potential to contribute to Lao PDR’s program priorities (including Green, Climate Resilient Cities), and Organize structured dialogue with the private sector to raise awareness about the Lao Country Program priorities, climate finance and GCF. (Close coordination with UNDP readiness support to the NDA for outcome 1 will be maintained) (5.1 and 5.2 in the GGGI project, respectively). UN-Habitat will contribute to this by also mobilising its private sector partners and investors in the EWEC to engage this activity in conjunction with GGGI, and where the NDA agrees this is beneficial. Among the activities to be undertaken is a database of all national finance projects. UN-Habitat will use its leverage with local governments in Laos to help to populate this database. GGGI will also be leading country programme development on climate change in urban areas, and UN-Habitat will commit to supporting this endeavour as required by GGGI. FAO and GIZ are also working under readiness on forestry and the Environmental Protection Fund (EPF), respectively. While there are no direct overlaps between these projects, UN-Habitat is in contact with FAO and GIZ and will ensure that there are no duplications and that there is complete information sharing between agencies and with government, as required. The project’s proposed schedule and duration is well aligned with the upcoming Nationally Determined Contribution (NDC) revisions expected at the COP24. Given the complex context of the GMS development, the contribution to these provinces can therefore help advance and substantiate national priorities. In short, Lao PDR’s GMS corridors need to turn into resilient economic corridors to meet its goals to become a sustainable and climate change resilient country by 2030 as identified in its national climate change strategy, NDC and other sectorial policy priorities.

This project focuses on EWEC towns Phine, Dansavanh. Sayphouthong, Sethamouak and Atsapantong. All towns targeted by the project are characterised by high poverty levels, impacts from climate related hazards and social characteristics that include high numbers of indigenous people and lower levels of female literacy. The target towns are vulnerable to heat stress, floods, drought and storms. Many of these towns were hit by floods in 2005, 2009, 2011, 2012, and 2017. These floods often coincided with a major drought occurred in 2015. Rainfall in has become increasingly erratic in recent years. Despite an overall increase, and an annual average (1989 – 2018) of 1,531mm, which is not particularly high for Southeast Asia, 2015 and 2012 were the first and second driest years in the dataset, while 2017 was the wettest, with well over 2,000mm of rainfall. July and August are typically the wettest months. There has, however, been a drastic reduction in the number of rainy days. At the start of the meteorological dataset analysed in the formulation of this proposal (in 1989), Savanakhet Province would typically receive 111 rainy days per year, it now can expect to receive 90. This strongly indicates that heavy rainfall events have become far more likely in recent years. The dataset indicates that temperatures have increased by 1.4°C in the 30 years since 1989. Poverty is very high in the target area. The poverty headcount in Savanakhet Province is 32 per cent, above the national average of 24.8 per cent. This rises to 34% in Atsapantong and in Phine District (which contains both Phine and Sethamouak Towns) the poverty level rises to 42 per cent. Ensuring that the poor can access the benefits of new infrastructure and share in the proceeds of investment and growth in the corridor, at the same time as making investment resilient, is a key challenge. There are high numbers of indigenous people in the area; 62 per cent of those living in Phine District and 48 per cent of people in Sayphouthong belong to an ethnic group that is not the dominant Lao Lum group. Infrastructure construction, and particularly private investment projects in the EWEC in Laos do not take into consideration the substantial changes in the climate that are occurring in the area, and there is no evidence to suggest that previous or forthcoming investments are designed to withstand increasingly intense rain events or very high temperatures. There are currently no legal frameworks to require the consideration of climate change (beyond Initial Environmental Examinations – IEEs) in infrastructure projects and very minimal capacity to oversee the incorporation of climate change resilience, especially at the subnational level. Readiness and Preparatory Support Page 9 of 17

3. LOGICAL FRAMEWORK AND IMPLEMENTATION SCHEDULE

Anticipated duration: 18 months 7 Activities Baseline Outcomes Targets (brief description and 6 Monthly implementation plan of activities8 deliverables) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Outcome 1: Sub-Outcome 0 2 Activity 1.1.1: 1.1: Inception workshop to present project Country and develop guidelines for coordination Capacity A baseline mechanisms along the corridor cities of Strengthened. knowledge of EWEC in Laos. climate change Engage key city-level leaders and Strengthened and investment government staff, including Ministry of local and patterns Natural Resources, Environment Ministry institutional developed for of Public Works and Transport, and other X capacity and the target area relevant stakeholders. knowledge for climate Deliverable 1.1.1: resilient urban 1 Report presenting the outcomes of the development inception workshop and the terms agreed and for continuing the process. infrastructure Time: 2 months after first disbursement

Activity 1.1.2: Capacity assessment through consultations involving sub-national EWEC policy makers, local government authorities and community level stakeholders in Laos to assess EWEC development projects, recent settlement changes, and perceptions of climate X change.

Deliverable 1.1.2: 1 Document summarizing the existing information about EWEC area and stakeholders’ capacity.

Time: 4 months after first disbursement

6 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. 7 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. 8 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 10 of 17

Activity 1.1.3: Development of an assessment analyzing climate change exposure, underlying sensitivity9 and drivers of economic and urban change resulting from investments in the EWEC in Laos. Primary data will be gathered using Kobo Toolbox.

Deliverable 1.1.3: X 1 Assessment exposing the consequences of investments in relation to climate change, conducted/produced in the target area (including maps).

1 Database with the information gathered after using Kobo Toolbox.

Time: 8 months after first disbursement

Sub-Outcome 0 2 Activity 1.2.1: 1.2: Provide training for local and national officials on understanding climate change Local and and planning for its impacts national government Deliverable 1.2.1: officers trained 20 local and national officials trained on to understand planning for climate change. X climate change and plan for 1 Report describing the activities done action in the and the stakeholders involved. context of economic Time: 9 months after first disbursement investments in the EWEC.in Laos

Activity 1.2.2: Provide follow-up training on planning for climate change action10 – this training should also include making specific provisions to ensure that investments are X inclusive, and consider the needs of youth and women, and broader environmental and social safeguard considerations

9 This assessment will specifically include women and indigenous people through the gathering of disaggregated data, seeking to understand their unique vulnerabilities, 10 In line with the above, the action planning will consider specific ways to ensure that the needs of women and indigenous people are included, in a way that includes, rather than excludes them, while respecting their preferences, and, in the case of indigenous people, promoting their traditional livelihoods and lifestyle if that is their preference Readiness and Preparatory Support Page 11 of 17

Deliverable 1.2.2: 1 Report describing the activities done and the stakeholders involved.

Time: 17 months after first disbursement

Activity 1.2.3: Strengthen NDA officials’ capacity11 through training and participation in regional and international workshops and meetings X

Deliverable 1.2.3: 1 Report stating the lessons learnt and skills developed after the training cycle.

Time: 18 months after first disbursement

Outcome 2: Sub-Outcome 0 2 Activity 2.1.1: 2.1: Consultation with government and Private sector private stakeholders to explore private mobilization. Private finance sector investment opportunities for and investment private or public-private projects in the Government climate EWEC in Laos, especially considering and other understood, and the needs of youth and women. actors’ ability X opportunities for enhanced to private finance Deliverable 2.1.1: leverage established and 1 Document summarizing a set of public and presented resilience building investment private opportunities to attract further financiers. finance.

Time: 12 months after first disbursement

Activity 2.1.2: Agree with government a strategy for increased private sector investment, following on from 2.1.1.

Deliverable 2.1.2: 1 Strategy document on how to include X public-private investors in the EWEC area in Laos, considering climate change resilience.

Time: 14 months after first disbursement

11 This capacity specifically refers to two things: 1) the capacity to identify other opportunities/areas to incorporate climate change resilience in economic development and infrastructure projects, and 2) to strengthen the capacity of the NDA and associated national level stakeholders to advocate for more resilience economic growth in the global process. Readiness and Preparatory Support Page 12 of 17

Activity 2.1.3: Strengthen NDA coordination capacity through the definition of a mechanism for coordination between NDA and private sector for the EWEC in Laos. X

Deliverable 2.1.3: 1 Report describing the coordination mechanism defined.

Time: 18 months after first disbursement

Sub-Outcome 0 2 Activity 2.2.1: 2.2: Develop a comprehensive investment and financial flows assessment for the Comprehensive EWEC in Laos, linking this to key low emission & climate-related activities to identify gaps climate change and opportunities. X resilient policy and investment Deliverable 2.2.1: roadmap 1 Document with the investment baseline developed to for the EWEC in Laos. stimulate investment flows Time: 16 months after first disbursement

Activity 2.2.2: Develop proposal for low emission & climate change resilient policy for the EWEC in Laos (including but not limited to cost-benefit analysis of resilience- building activities, business enabling sustainable operation and management X of infrastructure).

Deliverable 2.2.2: 1 Developed proposal.

Time: 18 months after first disbursement

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4. ADDITIONAL INFORMATION (ONLY FOR ADAPTATION PLANNING SUPPORT)

This section is only to be completed when seeking support for formulation of national adaptation plans and/or other adaptation planning processes. Please see Part 3 Section 4 in the Readiness Guidebook and please limit to maximum of 500 words.

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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 USD140,386 will be transferred upon approval of the readiness request and effectiveness of the Grant Agreement; • The second disbursement amounting USD 98,591 will be transferred upon submission of an interim progress report and a certified financial report in form and substance acceptable to the Fund; and • The third disbursement amounting USD 111,015 will be made upon submission of a completion report and Certified financial report, in form and substance acceptable to the Fund.

Disbursement Scheme

6m 12m 18m

Outcome related 106,850 90,867 102,318

PMC 22,538 - -

DPF 10,998 7,724 8,697

Total 140,386 98,591 111,015

Please note that the $54,000 that will be transferred to the NDA under outputs 1.2 ad 2.1 will be managed under an Agreement of Cooperation, signed between UN-Habitat and the Ministry of Natural Resources and the Environment. This is the standard mechanism UN-Habitat uses to transfer funds between it and an implementing/executing partner. NDA expenditure will be included in the UN-Habitat Certified Financial report.

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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.

UN-HABITAT Lao PDR will implement the Readiness Project described, working in close cooperation with the Ministry of Natural Resources and Environment and other relevant stakeholders. Thus, the grant management, implementation of activities, project oversight, monitoring and reporting will be responsibility of UN-HABITAT Country Office, who will competitively procure services and goods according to its standard procurement rules and regulations: - Consultants will be chosen on a competitive basis and according to detailed terms of reference (cleared by relevant technical department), followed by the screening of candidates and interview process. - For items such as travel and accommodation for stakeholder workshops and meetings, a shopping method will be used at all times seeking competitive quotes above pre-set thresholds.

UN-HABITAT and the NDA will establish an implementation agreement and will maintain close collaboration to ensure proper coordination and timely delivery of the readiness project. The delivery partner will provide periodic reports to the NDA, the GCF and the Project Oversight Group.. Moreover, periodic revision of the budget execution will be made and UN-HABITAT as the delivery partner will ensure preparing follow up documents and project completion reports.

The Project Oversight Group will be composed of mid-senior officials from the ministries and agencies below, and co-chaired by the Director General/Deputy Director General, Climate Change Department of the Ministry of Natural Resources and the Environment and a Director General/Deputy Director General from the Ministry of Public Works and Transport. The Project Oversight Group will meet every 6 months, including at project inception, to review the project’s workplan, progress towards outputs, and any major risks that may occur (or have not been foreseen). The project oversight group can make recommendations to the delivery partner on its implementation during the next workplan period, including closer coordination with other projects and programmes and alignment with government priorities. The NDA is represented on the oversight group (as co- chair) but will also present the outcomes of the activities it implements under the project to the Project Oversight Group.

This project document will guide the implementation. The Team Leader will be responsible for day-to-day decision making under the project, except for activities outsourced to the NDA, which will be led by the responsible officer from MoNRE. It is anticipated that MoNRE will commit 1 person to this project on a full-time basis to complete the outputs, and make 3-4 staff available to support its implementation as required (including administration).

UN-Habitat also has experts on-hand in Laos, in the region, and in its headquarters who provide technical support and guidance. These include a National and International Chief Technical Advisor, based in Laos, a Human Settlements Officer and Climate Change Specialist based in its Regional Office for Asia and the Pacific, and experts from the Urban Planning and Urban Basic Services Branches in its Nairobi Headquarters.

Regarding financial management: United Nations give the UN's external auditor, the UN Board of Auditors, the exclusive right to audit the accounts and statements of the UN. This "single audit principle" requires the UN including its fund and programmes not to allow any third party, including the donors to audit and/or access its documents or records for the purpose of an audit. This in pursuant to UN Financial Regulations 7.6”. This is re-affirmed by General Assembly resolution 59/272 paragraph 11: https://undocs.org/en/A/RES/59/272

The project proposes to transfer $54,000 to MoNRE under an agreement of cooperation to execute parts of Outputs 1.2 and 2.1. However, according an external audit would not be required for agreements of less than US$60,000.

A visual representation of the implementation arrangements has been presented below

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The Grant Agreement with GCF will be signed by the UN-Habitat Regional Director of the Asia-Pacific region. The UN-Habitat technical focal point for this project is as per contact information provided in Section I Summary.

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

The following risks and potential mitigation actions have been identified during this proposal’s development:

Type Potential Risk Mitigation Measures Risk Probability and Party responsible

Operational Delay of recruitment processes Lead time will be defined beforehand Low (UN- within UN-HABITAT to avoid delay. Habitat)

Existing risk of key personnel Training aided by the production and Low (NDA) changing within government use of comprehensive training authorities, which may entail materials will contribute to make this training of new personnel. risk less prominent.

Political Public stakeholders are no The project is designed to be Low (NDA) longer interested in the project collaborative and mutually beneficial, and aims to engage not only the private sector but also governmental institutions and local authorities. Besides, awareness sessions will be organized to maintain this level of commitment. This minimizes the risk of future political disinterest in the project.

Delays related to limited time The work plan attached to the Medium availability by key public Implementation Agreement will specify (UN-Habitat) stakeholders to devote to the roles and responsibilities of all project stakeholders involved, as well as the Readiness and Preparatory Support Page 17 of 17

timeframe to be followed for the successful implementation of the project.

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 choose from the drop-down list (per budget category) (per sub-outcome)

Team leader Month 1 14,000.00 14,000.00 14,000.00 See BN 1 Consultant - Individual - International Month 6 6,000.00 36,000.00 24,000.00 12,000.00 See BN 2 Consultant - Individual - International Month 3 4,000.00 12,000.00 8,000.00 4,000.00 See BN 3 Consultant - Individual - Local Month 3 2,000.00 6,000.00 4,000.00 2,000.00 See BN 4 Consultant - Individual - Local Month 6 1,900.00 11,400.00 11,400.00 See BN 5 Backstopping by UN-HABITAT experts Day 10 475.00 4,750.00 4,750.00 See BN 6 Translation services Lumpsum 1 2,000.00 2,000.00 2,000.00 1.1 A baseline knowledge of climate change and investment Survey Lumpsum 1 6,300.00 6,300.00 125,850.00 6,300.00 patterns developed for the target area Workshop/Training Lumpsum 1 6,000.00 6,000.00 6,000.00 Travel - International Flight 2 2,500.00 5,000.00 5,000.00 1. Country capacity Travel – Local Trip 7 1,200.00 8,400.00 8,400.00 strengthened. IT Equipment PCs 3 1,000.00 3,000.00 3,000.00 Strengthened local and IT Equipment Tablets 10 400.00 4,000.00 4,000.00 201,050.00 institutional capacity and Office Supplies and communication Lumpsum 1 6,000.00 6,000.00 6,000.00 knowledge for climate resilient Lumpsum 1 1,000.00 1,000.00 1,000.00 infrastructure and urban Audio Visual & Printing development Team leader Month 1 14,000.00 14,000.00 14,000.00 See BN 1 Consultant - Individual - Local Month 3 1,900.00 5,700.00 5,700.00 See BN 5 Backstopping by UN-HABITAT experts Day 4 475.00 1,900.00 1,900.00 See BN 6 Outsourced to NDA - Workshop/Training Lumpsum 1 15,000.00 15,000.00 5,000.00 10,000.00 Outsourced to NDA - Travel - 1.2 Local and national government officers trained to Trip 4 5,000.00 20,000.00 6,666.67 13,333.33 understand climate change and plan for action in the context of International economic investments in the EWEC. Outsourced to NDA - Travel - Local Lumpsum 1 9,000.00 9,000.00 75,200.00 3,000.00 6,000.00 Workshop/Training Lumpsum 1 4,000.00 4,000.00 4,000.00 Travel – Local Trip 2 1,100.00 2,200.00 2,200.00 Office Supplies and communication Lumpsum 1 3,000.00 3,000.00 3,000.00 Audio Visual & Printing Lumpsum 1 400.00 400.00 400.00 - Team leader Month 1 14,000.00 14,000.00 14,000.00 See BN 1 Consultant - Individual - International Month 2 6,000.00 12,000.00 12,000.00 See BN 2 Consultant - Individual - Local Month 4 1,900.00 7,600.00 7,600.00 See BN 5 Backstopping by UN-HABITAT experts Day 5 475.00 2,375.00 2,375.00 See BN 6 Translation services Lumpsum 1 550.00 550.00 550.00 2.1 Private finance and investment climate understood, and Outsourced to NDA - Workshop/Training Lumpsum 1 10,000.00 10,000.00 56,135.00 10,000.00 2. Private sector mobilization. opportunities for private finance established and presented Workshop/Training Lumpsum 1 910.00 910.00 910.00 Enhanced the ability of the Travel - International Flight 1 2,500.00 2,500.00 2,500.00 Laos government and other 98,985.00 actors to leverage public and Travel – Local Trip 4 1,200.00 4,800.00 4,800.00 private finance through a menu Office Supplies and communication Lumpsum 1 1,000.00 1,000.00 1,000.00 of developed projects. Audio Visual & Printing Lumpsum 1 400.00 400.00 400.00 Team leader Month 1 14,000.00 14,000.00 14,000.00 See BN 1 Consultant - Individual - International Month 4 6,000.00 24,000.00 24,000.00 See BN 2 2.2 Comprehensive low emission & climate change resilient policy Backstopping by UN-HABITAT experts Day 6 475.00 2,850.00 42,850.00 2,850.00 See BN 6 and investment roadmap developed to stimulate investment flows Office Supplies and communication Lumpsum 1 2,000.00 2,000.00 2,000.00 - Total Outcome Budget 300,035.00 106,850 90,867 102,318.33 Office Space and other expenses Lumpsum 1 17,038.00 17,038.00 Backstopping by UN-HABITAT experts Month 1 5,500.00 5,500.00 Percentage of PMC Project Management Cost (PMC) 22,538.00 requested: Up to 7.5% of Total Activity Budget 7.5% FOR GREEN CLIMATE FUND SECRETARIAT'S USE ONLY Breakdown (per budget category) Total (per budget category) Audio Visual & Printing 1,800.00 See BN8 Consultant - Individual - International 84,000.00 FOR GREEN CLIMATE FUND SECRETARIAT'S USE ONLY Consultant - Individual - Local 30,700.00 Team leader 56,000.00 Total Outcome Budget 300,035.00 IT Equipment 7,000.00 Project Management Cost (PMC) 7.5% requested 22,538.00 Office Supplies and communication 12,000.00 Contingency 0% requested - Travel - International 7,500.00 Travel – Local 15,400.00 Workshop/Training 10,910.00 See BN9 Sub-Total (Total Outcome Budget + Contingency + PMC) 322,573.00 Office Space and other expenses 17,038.00 Backstopping by UN-HABITAT experts 17,375.00 Delivery Partner Fee (DP) - Up to 8.5% of the Sub-Total 27,418.71 Survey 6,300.00 Translation services 2,550.00 Outsourced to NDA - Travel - International 20,000.00 See BN10 Total Project Budget (Total Activity Budget + Contingency + PMC + DP) $ 349,992.00 Outsourced to NDA - Travel - Local 9,000.00 See BN10 Outsourced to NDA - Workshop/Training 25,000.00 See BN7 Budget Note Detailed Description

1 One team leader (responsible for quality assurance and control of project outputs) for 4 months @$636 per day of work. One international consultant (Climate Change specialist) for 6 working months for activities 1.1.1. to 1.1.3., 2 working months for 2 activities 2.1.1 and 2.1.2., and 4 working months for activities 2.2.1 and 2.2.2, @$273 per day of work. 3 One international consultant (GIS specialist) for 3 working months for activity 1.1.3, @$182 per day of work 4 One local consultant (IT specialist) for 3 working months for activity 1.1.3, @$91 per day of work One local consultant (Climate Change specialist) for 6 working months for activities 1.1.1. to 1.1.3., 3 working months for activities 1.2.1. 5 and 1.2.2. and 4 working months for activities 2.1.1. and 2.1.2., @$86 per day of work. One expert (responsible for providing punctual support to ensure maximum compliance with international technical standards and 6 requirements) for 25 days of work, @$475 per day The backstopping services (including Team Leader) financed under this proposal are exclusively composed of positions that are not related to UN-HABITAT regular programme staff cost. The NDA will be responsible of the organization of regional and national events directly linked to the projects, including consultations, validations, and national workshops. This will ensure the presence of the NDA in the provinces and national ownership and full engagement of the NDA office and climate change focal point of the provinces in the execution of the activities. 7 The NDA is expected to invite other provinces and/or to present the work in other provinces in order to facilitate replication and scale up of future activities The $1,800 budgeted for audio visual and printing will cover all pre-printed, prepared materials used in workshops. In Laos, it is standard practice (and usually expected by sub-national government) that training materials will be provided as a file/hard copy in advance of 8 training. The remaining budget will be used to garner some media coverage of training events, especially under Outcome 1 A total of $10,910 has been allocated to all training workshops that will have to be implemented throughout the project. In some cases, 9 external venues will be required as the facilities at the sub-national level are limited. This will also cover limited costs of food for participants at workshops The international and local travel will cover the travel of NDA team members from: A) Vientiane to the project area to follow the activities/trainings/field work provided by UN-Habitat experts and consultant in the provinces, B) Vientiane to regional/global cities 10 events organized by UN-Habitat/ICLEI or other key actors that will help the NDA team to network, get best practices in the topic and further engage in sustainable cities as a priority area for the country 11 NDA expenditure will be included in the UN-Habitat Certified Financial report. Budget Categories Audio Visual & Printing Audit Fee Consultant - Individual - International Consultant - Individual - Local Team leader IT Equipment Office Supplies and communication Travel - International Travel – Local Workshop/Training Office Space and other expenses Backstopping by UN-HABITAT experts Indicate additional Survey budget categories Translation services Outsourced to NDA - Travel - International Outsourced to NDA - Travel - Local Outsourced to NDA - Workshop/Training 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 Office supplies and Office supplies and communication fees 12,000.00 As per UN-HABITAT's rules, regulations and procedures <12.500 February-19 February-19 communication IT Equipment 3 Laptops 3,000.00 As per UN-HABITAT's rules, regulations and procedures $2.500 - $3.500 February-19 February-19 IT Equipment 10 Tablets 4,000.00 As per UN-HABITAT's rules, regulations and procedures $3.500 - $4.500 June-19 June-19 Translation services Translator English-Lao 2,550.00 As per UN-HABITAT's rules, regulations and procedures $4.500 - $5.000 February-19 February-19 Workshop/Training Costs for venue, catering, WiFi, etc 10,910.00 As per UN-HABITAT's rules, regulations and procedures <12.500 February-19 February-19 Travel- International International travel costs 7,500.00 Direct procurement <8.000 February-19 February-19 Travel- Local Local travel costs 15,400.00 Direct procurement <16.000 February-19 February-19

Sub-Total (US$) $ 55,360.00

Consultancy Services For quality assurance and control of project outputs $55.000 - $75.000 February-19 February-19 Team Leader 56,000.00 Open Selection process following UN-HABITAT's International Consultant Climate Change Specialist 72,000.00 procedures ( will involve a vacancy announcement with $95.000 - $100.000 February-19 February-19 International Consultant GIS Specialist 12,000.00 terms of reference cleared by relevant technical $8.500 - $9.500 June-19 June-19 National Consultant IT Specialist 6,000.00 department, screening of candidates and interview $5.500 - $6.500 June-19 June-19 process) National Consultant Climate Change Specialist 24,700.00 $20.500 - $21.500 February-19 February-19

Sub-Total (US$) $ 170,700.00