REQUEST FROM THE GOVERNMENT OF ETHIOPIA FOR PROJECT FUNDING FROM THE ADAPTATION FUND FINAL DRAFT The annexed form should be completed and transmitted to the Adaptation Fund Board Secretariat by email or fax. Complete documentation should be sent to: The Adaptation Fund Board Secretariat 1818 H Street NW MSN P4-400 Washington, D.C., 20433 U.S.A Fax: +1 (202) 522-3240/5 Email: [email protected] Table of Contents PART I: PROJECT INFORMATION...................................................................................................................... 1 1 PROJECT BACKGROUND AND CONTEXT ............................................................................................... 1 1.1 SOCIO-ECONOMIC AND DEVELOPMENT CONTEXT .............................................................................................. 1 1.2 ENVIRONMENTAL CONTEXT .................................................................................................................................. 4 1.3 THE PROBLEM ......................................................................................................................................................... 6 1.3.1 Definition of the problem .................................................................................................................................... 6 1.3.2 Vulnerability analysis............................................................................................................................................ 9 1.3.3 Barriers ..................................................................................................................................................................... 13 1.4 CURRENT CLIMATE VARIABILITY AND FUTURE CLIMATE CHANGE ................................................................ 15 1.4.1 Recent Climate Trends ....................................................................................................................................... 15 1.4.2 The 2015-2016 El Niño ...................................................................................................................................... 17 1.4.3 Future Climate Change ...................................................................................................................................... 18 1.4.4 Future Climate Change Impacts .................................................................................................................... 19 1.5 PROJECT CONTEXT ................................................................................................................................................ 22 1.5.1 Project location and background context ................................................................................................ 22 2 PROJECT OBJECTIVES .............................................................................................................................. 30 2.1 PROJECT OBJECTIVES ............................................................................................................................................ 30 2.2 PROJECT COMPONENTS AND FINANCING .......................................................................................................... 30 2.3 PROJECT CALENDAR ............................................................................................................................................. 32 PART II: PROJECT JUSTIFICATION ................................................................................................................ 33 A. PROJECT COMPONENTS .......................................................................................................................... 33 COMPONENT 1: AWARENESS AND OWNERSHIP OF ADAPTATION PLANNING AT THE LOCAL LEVEL ....................... 34 COMPONENT 2: WATER SECURITY..................................................................................................................................... 38 COMPONENT 3. CLIMATE SMART AGRICULTURE – LAND – WATER - FOREST INTEGRATION ................................... 42 COMPONENT 4 CLIMATE RESILIENT LIVELIHOOD DIVERSIFICATION ........................................................................... 43 COMPONENT 5 CAPCITY BUILDING, KNOWLEDGE TRANSFER AND OUTREACH ........................................................... 49 INTER-LINKAGES AMONGST PROJECT COMPONENTS – THEORY OF CHANGE ............................................................. 50 B. ECONOMIC, SOCIAL AND ENVIRONMENTAL BENEFITS ................................................................ 54 ECONOMIC AND SOCIAL BENEFITS ...................................................................................................................................... 54 ENVIRONMENTAL BENEFITS................................................................................................................................................ 54 IMPACT ON GENDER .............................................................................................................................................................. 55 C. COST-EFFECTIVENESS OF THE PROPOSED PROJECT .................................................................... 57 APPROACH TO ENSURING COST-EFFECTIVENESS ............................................................................................................. 57 ANALYSIS OF POSSIBLE OPTIONS TO ADDRESS CLIMATE RISKS ..................................................................................... 58 COST EFFECTIVENESS FROM A PROJECT MANAGEMENT PERSPECTIVE ......................................................................... 69 D. ALIGNMENT WITH NATIONAL AND SUB-NATIONAL SUSTAINABLE DEVELOPMENT STRATEGIES .......................................................................................................................................................... 70 E. ADHERENCE TO RELEVANT NATIONAL TECHNICAL STANDARDS........................................... 75 F. DUPLICATION OF PROJECT WITH OTHER FUNDING SOURCES ................................................. 79 G. LEARNING AND KNOWLEDGE MANAGEMENT................................................................................. 88 H. DESCRIPTION OF THE CONSULTATIVE PROCESS .......................................................................... 89 I. JUSTIFICATION FOR FUNDING REQUESTED .................................................................................... 90 COMPONENT 1: AWARENESS AND OWNERSHIP OF ADAPTATION PLANNING AT THE LOCAL LEVEL ....................... 91 COMPONENT 2: WATER SECURITY..................................................................................................................................... 92 COMPONENT 3. CLIMATE SMART AGRICULTURE – LAND – WATER - FOREST INTEGRATION ................................... 92 COMPONENT 4 CLIMATE RESILIENT LIVELIHOOD DIVERSIFICATION ........................................................................... 93 COMPONENT 5. CAPCITY BUILDING, KNOWLEDGE TRANSFER AND OUTREACH .......................................................... 93 J. SUSTAINABILITY ....................................................................................................................................... 94 INSTITUTIONAL SUSTAINABILITY ....................................................................................................................................... 95 TECHNICAL SUSTAINABILITY .............................................................................................................................................. 96 FINANCIAL SUSTAINABILITY ............................................................................................................................................... 99 K. ENVIRONMENTAL AND SOCIAL IMPACTS AND RISKS .................................................................. 99 PART III: IMPLEMENTATION ARRANGEMENTS .................................................................................... 104 A. IMPLEMENTATION ARRANGEMENTS............................................................................................... 104 IMPLEMENTING AND EXECUTING ENTITIES ................................................................................................................... 104 CAPACITY OF EXECUTING ENTITIES ................................................................................................................................ 105 ROLES AND RESPONSIBILITIES OF EXECUTING ENTITIES ........................................................................................... 107 MANAGEMENT ARRANGEMENTS ..................................................................................................................................... 108 FINANCIAL ARRANGEMENTS ............................................................................................................................................ 110 B. RISK MANAGEMENT ............................................................................................................................... 113 C. ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT ................................................................. 117 D. MONITORING AND EVALUATION ARRANGEMENTS .................................................................... 119 E. RESULTS FRAMEWORK ......................................................................................................................... 132 F. ALIGNMENT WITH THE RESULTS FRAMEWORK OF THE ADAPTATION FUND ................. 139 G. DETAILED BUDGET ................................................................................................................................