47286-001: Enhancing Readiness of ADB Developing Member Countries for Scaled Up Climate Finance | Asian Development Bank

Regional: Enhancing Readiness of ADB Developing Member Countries for Scaled Up Climate Finance

Sovereign (Public) Project | 47286-001 Status: Active

The TA is being implemented by ADB's Climate Change and Disaster Risk Management Division (SDCD) and seeks to help build the capacity of ADB developing member countries (DMCs) to access critical financing for scaling up climate change actions. In its current form, the technical assistance (TA) aims to help 2-3 ADB DMCs to develop the capacity to identify priority investment projects that mitigate climate change and/or support adaptation to climate change, while creating sustainable development co-benefits. These priority investment projects may qualify for support through bilateral climate finance and international climate finance mechanisms such as the Green Climate Fund (GCF) and financing for nationally appropriate mitigation actions, in addition to multilateral development bank financing and private sector finance. The TA will help DMCs to conceptualize financing strategies for these investments, identify capacity gaps and barriers that impede the flow of climate finance, and raise awareness.

Project Details

Project Officer
Rattinger, Michael SDTC Request for information
Country
  • Regional
Modality
  • Technical Assistance
Sector
  • Public sector management
 
Project Name Enhancing Readiness of ADB Developing Member Countries for Scaled Up Climate Finance
Project Number 47286-001
Country Regional
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8606-REG: Enhancing Readiness of ADB Developing Member Countries for Scaled Up Climate Finance
Technical Assistance Special Fund US$ 750,000.00
TA 8606-REG: Enhancing Readiness of ADB Developing Member Countries for Scaled Up Climate Finance (Supplementary)
Climate Change Fund US$ 237,500.00
TA 8606-REG: Enhancing Readiness of ADB Developing Member Countries for Scaled Up Climate Finance
Nordic Development Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Public sector management / Economic affairs management - Public expenditure and fiscal management

Gender Equity and Mainstreaming Some gender elements
Description The TA is being implemented by ADB's Climate Change and Disaster Risk Management Division (SDCD) and seeks to help build the capacity of ADB developing member countries (DMCs) to access critical financing for scaling up climate change actions. In its current form, the technical assistance (TA) aims to help 2-3 ADB DMCs to develop the capacity to identify priority investment projects that mitigate climate change and/or support adaptation to climate change, while creating sustainable development co-benefits. These priority investment projects may qualify for support through bilateral climate finance and international climate finance mechanisms such as the Green Climate Fund (GCF) and financing for nationally appropriate mitigation actions, in addition to multilateral development bank financing and private sector finance. The TA will help DMCs to conceptualize financing strategies for these investments, identify capacity gaps and barriers that impede the flow of climate finance, and raise awareness. The TA also aims to help identify new opportunities for scaling up climate investments, which is particularly timely given ADB's recent (September 2015) commitment to double climate financing to $6 billion annually by 2020.
Project Rationale and Linkage to Country/Regional Strategy

Given the need of DMCs to undertake massive additional investments to transition to a low-carbon and climate-resilient development path on one hand, and the emergence of new climate finance mechanisms such as the GCF (which is set to deliver a substantial amount of additional climate finance by 2020) on the other, ADB will face increasing demands for assistance with regard to climate-related investment, including those supported by international climate finance. Aside from upgrading its own support mitigation and adaptation initiatives in DMCs, ADB will be called on to help enhance DMC readiness for scaled up climate finance, including multilateral, bilateral, and private sector sources.

Although all DMCs have different mechanisms, processes, and capacity in place that can be built on, many will require targeted assistance to derive maximum benefit from the evolving global climate finance architecture. DMC demands for TA, including to ADB, are expected to increase in both number and complexity in the coming years. Demand for investment in low-carbon, climate-resilient infrastructure sectors in DMCs by multilateral, bilateral, and private sector climate finance sources will also grow.

DMCs must develop strategic approaches to engage with the new and evolving international climate finance mechanisms. They must also help to increase investment in low-carbon,

climate-resilient infrastructure, including through the domestic private sector. Given the volume of investment needed and the limitations of public funds both in DMCs and in developed donor countries the role of the private sector is crucial.

Policy frameworks, institutional capacity, and technical skills must be strengthened at national, subnational, and local levels for ADB DMCs to enhance their readiness for scaled up climate finance and to improve their ability to plan, budget, deliver, and conduct monitoring, reporting, and verification of climate outcomes and climate finance.

Impact Greater flow of international climate finance to selected DMCs
Project Outcome
Description of Outcome Increased awareness and enhanced capacity of selected DMCs in accessing international climate finance for low-carbon, climate resilient infrastructure projects, including through ADB
Progress Toward Outcome On 31 July 2015, ADB submitted its first proposal to the GCF, a $31 million adaptation grant for the proposed Fiji Urban Water Supply and Wastewater Management Project. Recently, the TA supported the organization of a consultation meeting between GCF, the government of Fiji, and ADB at GCF headquarters in Songdo, Republic of Korea, on the project design and GCF application. The TA is identifying further infrastructure projects from DMCs.
Implementation Progress
Description of Project Outputs

1. Assessment of opportunities for new and scaled-up ADB climate finance operations

2. Country report for every DMC targeted in the TA (3-4) with the following key contents:

-A portfolio of 2-3 priority low-carbon, climate resilient infrastructure investment projects with the potential to access international climate finance and MDB financing, with private sector participation

-strategies and recommendations to (i) enhance participation in climate finance mechanisms; (ii) improve climate finance delivery systems and scale up private sector investments;(iii) address gaps in institutional or technical capacity

3. Organization of workshops to disseminate key findings of country studies

Status of Implementation Progress (Outputs, Activities, and Issues)

Output 1: Identification of opportunities for new and scaled up climate finance operations. RETA 8606 has supported the establishment of a new multi-donor Asia-Pacific Climate Finance Fund (ACliFF). ACliFF aims to support the development and implementation of financial risk management products to help mitigate and manage risks involving sovereign and non-sovereign investments, wholly or partially focusing on climate change and mitigation, adaptation and/or risk management. These financial risk management products will support DMC investment in new climate technologies as well as expand their penetration of climate risk insurance. Establishment of ACliFF was approved on 28 April 2017.

Output 2: Identification of priority infrastructure investment projects and capacity building needs in selected DMCs. RETA 8606 is assisting the Government of Lao PDR develop two sector-focused climate investments that are aligned with the country's nationally determined contribution (NDC), including initial investment project outlines. A guideline on the development of sectoral/thematic climate strategic investments will also be prepared. These investment strategies are intended to serve as building blocks for the development of a national climate finance strategic framework. This output is supported by funding from the Nordic Development Fund.

The RETA is also supporting the preparation of Green Climate Fund (GCF) proposal applications of seven ADB projects. Two proposals have been prepared and submitted for GCF review, while the remainder are still being drafted.

Output 3: Enhanced awareness of investment opportunities in low-carbon, climate resilient infrastructure. The RETA supported the organization of consultation meetings between GCF, the government of Fiji and ADB, which played a vital role in obtaining GCF Board approval of a $31 million adaptation grant for an ADB water supply and sanitation project in Fiji in November 2015. It has also supported a regional consultation workshop with DMC representatives on ADB's Climate Change Strategic Framework 2017-2030 in March 2017.

Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The proposed TA design has been discussed informally with a range of DMC representatives bilaterally as well as at various regional and international forums. The TA concept has also been discussed informally in the context of ADB involvement with the Green Climate Fund, during which a number of DMCs have expressed interest in ADB assistance for identifying projects that could conceivably access the Green Climate Fund and in enhancing DMC _readiness_ for up-scaled climate finance. ADB support to enhance DMC _readiness_ has also been highlighted in conversations with possible donor countries, including the Republic of Korea.
During Project Implementation

On 24 February 2016, the TA was extended until 31 December 2016 and an additional funding of US$237,500 from ADB's Climate Change Fund (CCF) was approved to expand coverage of Output 1 and to support the development of new conceptual proposals and further the development of existing conceptual proposals for new and scaled up finance operations.

On 17 March 2016, supplementary financing of US$500,000 from the Nordic Development Fund (NDF) was confirmed. See Attachment 2. The supplementary financing will support parts of Outputs 2 and 3 of the TA and to increase coverage from 2-3 developing member countries (DMCs) to 4-5 DMCs. For Output 1 , NDF also agreed to provide in-kind support for the development of 2 conceptual proposals.

Business Opportunities
Consulting Services

International consulting inputs- 20 person-months

1. Senior climate change specialist and team leader (13 person-months). The

consultant will have at least a master's degree in economics, environmental science, or a

related discipline, and 15 years of experience related to environment and climate change.

Knowledge of ADB and experience in Asia and the Pacific are highly desirable.

2. Senior finance specialist (2 person-months, intermittent). The consultant will have at

least a master's degree in finance, economics, business administration, or a related discipline,

and 15 years of experience related to private sector infrastructure investment in developing

countries. Knowledge of ADB private sector operations and experience in Asia and the Pacific

are highly desirable.

3. Climate change adaptation finance specialist (2 person-months, intermittent). The

consultant will have at least a master's degree in economics, environmental science, or a

related discipline, and 10 years of experience with climate adaptation issues in developing

countries. Knowledge of ADB operations and experience in Asia and the Pacific are highly

desirable.

4. Public policy and finance management specialist (3 person-months, intermittent).

The consultant will have at least a master's degree in economics, public finance management,

public policy, or a related discipline, and 10 years of experience with public finance

management issues in developing countries in Asia and the Pacific. Specific knowledge and

work experience in one or more of the targeted DMCs is highly desirable, as is knowledge of

climate finance. Knowledge of ADB operations is desirable.

National consulting inputs-40 person-months

1. Project coordinator (12 person-months, intermittent). The consultant will have at least

10 years of experience in project administration and at least a bachelor's degree in a related

discipline. Experience with ADB is highly desirable.

2. Climate policy and finance specialists (28 person-months, intermittent). National

consultants will be hired on a flexible basis through independent recruitment to support the team

leader in the implementation of activities in selected DMCs under outputs 2 and 3. National

consultants will be hired in each selected DMC. The consultants will have at least 10 years'

experience in climate policy and finance, working experience in the selected DMCs, relevant

sector expertise, including in sectors such as energy, transport, urban development, agriculture,

and water and sanitation, and a master's degree in a related discipline. Experience with ADB is

highly desirable.

Procurement

The TA will finance consulting services, workshops, and report preparation. Consulting

services totaling 60 person-months (20 international and 40 national) will be required. The TA

will initially engage five consultants: (i) senior climate change specialist and team leader (13

person-months, international); (ii) senior finance specialist (2 person-months, international); (iii)

climate change adaptation finance specialist (2 person-months, international); (iv) public policy

and finance management specialist (3 person-months, international); and (v) regional project

coordinator (12 person-months, national). Additionally, the costs for services of climate policy

and finance consultants (28 person-months, national) are also budgeted. The positions will be

recruited on a demand basis to respond flexibly to the outcome of discussions within ADB and

with DMCs and other stakeholders.

Consultants will be engaged on an individual basis following ADB's Guidelines on the

Use of Consultants (2013, as amended from time to time). Individual consultant selection is

proposed as the project is designed to respond to specific requests from regional departments

for advisory services and studies, which will be identified based on project selection criteria

during project implementation.

Responsible ADB Officer Rattinger, Michael
Responsible ADB Department SDTC
Responsible ADB Division SDCD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 04 Dec 2013
Fact Finding -
MRM -
Approval 20 Dec 2013
Last Review Mission -
Last PDS Update 29 Sep 2017

TA 8606-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Dec 2013 - 20 Dec 2013 31 Jan 2016 31 Dec 2017 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
987,500.00 500,000.00 0.00 0.00 0.00 0.00 1,487,500.00 20 Dec 2013 645,710.02

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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Tenders

Tender Title Type Status Posting Date Deadline
Climate Finance Specialist (Green Infrastructure) Individual - Consulting Active 09 Sep 2017 15 Sep 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.