Outstanding Issues and MCT Response The Micronesia Conservation Trust (MCT) is pleased to submit our updated Adaptation Fund Proposal for consideration at the 31st AF Board Meeting. Below we present our responses to the outstanding issues as described in the DECISIONS OF THE THIRTIETH MEETING OF THE ADAPTATION FUND BOARD document dated 13 October, 2017. In addition to these responses and updates, we have made changes in the narrative to reflect policy changes that have occurred since our last submission in August of 2017. Importantly, the Government of Chuuk State passed their Protected Areas Network Law in September 2017. We have made note of this important progress throughout our updated submission. Outstanding Issues MCT Response Reference in Revised Proposal CAR3: In the adjusted budget, the Management Fee has been adjusted to Adjusted on Implementing Entity Management Fee 8.5% of total project budget before fee. pp. 51-52; is at 8.6 per cent of the total project Figures in the document have been adjusted Table 18 pp. budget before the fee slightly to accommodate change. 156-158; Table 21 (project cycle management fee breakdown p.160) a) The proposal should explain how Section 4.2: MCT and Current Projects has Additional the lessons learnt of previous or been improved to include several text is on pp. ongoing projects have informed the paragraphs explaining how lessons from 33-34 proposed project in the preparation previous and ongoing projects have phase. informed project design b) The budget should be revised so M&E budget has now been revised and is Budget that the M&E budget is fully covered fully covered through IE fee. adjusted on by the Implementing Entity fee; p.140, Table 15, which provides M&E budget breakdown. Table 21 (project cycle management fee breakdown, p. 610 adjusted accordingly. c) The results framework should Additional indicators have been Adjusted in include sex-disaggregated data, targets incorporated into the results framework results and indicators with sex-disaggregated targets as well as framework adding sex-disaggregated targets to table (pp. indicators related to community 142-152). participation and training. d) The project results framework The AF core indicator “Natural Assets The AF should include at least one of the 5 protected or rehabilitated” has been more indicators core outcome indicators of the AF explicitly integrated into the AF results have now Results Framework framework. The core indicator been bolded “Beneficiaries” has also been added. in the results framework and can be found in the adjusted results framework table (pp. 142-152) e) The proponent should give due The ESMP has been adjusted to include Edited text consideration to the potential impacts potential impacts on marginalized and can be found on marginalised and vulnerable vulnerable groups and steps that will be on p. 117 and groups in applying the ESMP taken to ensure this impact is considered in p. 134 reviewing small grant proposals. f) The proposal should strengthen and A paragraph on the grievance mechanism Added text provide adequate publicity to the for the project has been added to section C. can be found grievance mechanism that is included on 132. Amended in November 2013 REQUEST FOR PROJECT/PROGRAMME FUNDING FROM THE ADAPTATION FUND The annexed form should be completed and transmitted to the Adaptation Fund Board Secretariat by email or fax. Please type in the responses using the template provided. The instructions attached to the form provide guidance to filling out the template. Please note that a project/programme must be fully prepared (i.e., fully appraised for feasibility) when the request is submitted. The final project/programme document resulting from the appraisal process should be attached to this request for funding. 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] 1 Amended in November 2013 Table of Contents: Part 1: PROJECT/PROGRAMME INFORMATION 1. Introduction to the FSM 1.1 Geography and Climate............................................................................................4 1.2 Political and Legislative............................................................................................6 1.3 Demography.............................................................................................................7 1.4 General Economy.....................................................................................................8 1.5 Overview of the Importance of Ecosystems to livelihoods in the FSM.....................9 1.6 Overview of the Importance and Value of Fisheries to the FSM.............................12 2.0 Climate Change Impacts and Changes to the Marine Ecosystems in FSM.................19 2.1 Institutional Arrangements for Climate Change.....................................................23 3.0 Vulnerability Assessment..............................................................................................25 3.1 National, Local and Community Level Responses to Vulnerability........................28 4.0 Climate Change Adaptation Interventions.....................................................................30 4.1 Micronesia Conservation Trust and Current Projects.............................................30 .. 4.2 Partner Agencies....................................................................................................35 4.3 The Micronesia Challenge......................................................................................37 4.4 Importance of Protected Areas Networks to Alleviate Climate Change Stressors..38 4.5 Progress Towards Protected Areas Networks in the FSM......................................42 4.6 Community Based Management and Adaptation Action Planning in the FSM.......45 5.0 Project/Programme Objectives Part 2: PROJECT/PROGRAMME JUSTIFICATION A. Project Activities.............................................................................................................53 2 Amended in November 2013 B. Economic, Social and Environmental Benefits..............................................................67 C. Cost-effectiveness.........................................................................................................77 D. Consistency with Development Strategies....................................................................82 E. Consistency with Technical Standards..........................................................................88 F. Duplication of Project.....................................................................................................91 G. Learning and Knowledge Management.........................................................................96 H. Consultation Process....................................................................................................100 I. Justification for Funding..............................................................................................................................111 J. Sustainability..................................................................................................................114 K. Environmental and Social Impacts................................................................................115 Part 3: IMPLEMENTATION ARRANGEMENTS A. Project Implementation……………………………………………………………………….124 B. Financial and Project Risk Management.......................................................................127 C. Environmental and Social Risk Management................................................................132 D. Monitoring and Evaluation.............................................................................................138 E. Project Results Framework............................................................................................143 F. Alignment with Adaptation Fund Results Framework....................................................153 G. Budget...........................................................................................................................156 H. Disbursement Schedule................................................................................................164 Part 4: ENDORSEMENT BY GOVERNMENT Appendices.......................................................................................................................167 Bibliography.....................................................................................................................167 3 Amended in November 2013 PROJECT/PROGRAMME PROPOSAL TO THE ADAPTATION FUND PART I: PROJECT/PROGRAMME INFORMATION Project/Programme Category: Concept for Small-Sized Project Country/ies: Federated States of Micronesia Title of Project/Programme: Practical Solutions for Reducing Community Vulnerability to Climate Change in the Federated States of Micronesia Type of Implementing Entity: National Implementing Entity: Micronesia Conservation Trust Executing Entity/ies: To be determined when preparing the full project proposal: Federated States of Micronesia Office of Environment and Emergency Management and/or the Federated States of Micronesia Department of Resources and Development Amount of Financing Requested: $970,000 (in U.S Dollars Equivalent) Part 1: Project / Programme Background and Context: 1. Introduction to the FSM: 1.1 Geography and Climate The Federated States of Micronesia (FSM) is comprised of four states; Yap, Chuuk,