Nepal : Green and Resilience Financing Facility Investment Program

Project Name

Green and Resilience Financing Facility Investment Program

Project Number

58238-002

Country / Economy

• Nepal

Project Status

Proposed

Project Type / Modality of Assistance

• Technical Assistance

Source of Funding / Amount

TA: Green and Resilience Financing Facility Investment Program

Source	Amount
Japan Fund for Prosperous and Resilient Asia and the Pacific	US$ 2.00 million

Operational Priorities

• OP1: Addressing remaining poverty and reducing inequalities
• OP2: Accelerating progress in gender equality
• OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
• OP4: Making cities more livable
• OP5: Promoting rural development and food security
• OP6: Strengthening governance and institutional capacity
• OP7: Fostering regional cooperation and integration

Sector / Subsector

• Finance / Inclusive finance - Infrastructure finance and investment funds - Small and medium enterprise finance and leasing

Gender

Effective gender mainstreaming

Description

Support preparation of the program.

The program is a complex and multisector undertaking, for which the government has requested technical assistance (TA) to support its preparation. The TA will help the government prepare full-scale due diligence in technical, economic, financial, social, environmental, and institutional aspects, including in-depth local socioeconomic and ecosystem assessments, as well as prepare the program road map, policy framework, undertaking, and provide necessary capacity development. The TA will contribute to operational priorities (OPs) 1, 2, 3, 4, 5, 6, and 7 under Strategy 2030 and to the ongoing country partnership strategy (CPS) objectives for Nepal, 2020-2024. It is also aligned with government priorities, ADB's country-level objectives and was confirmed and included in Nepal's country programming mission in 2023.

Project Rationale and Linkage to Country/Regional Strategy

The proposed Green and Resilience Financing Facility Investment Program (GREFF) is a large-scale, transformative, and integrated initiative responding to the growing demand and urgent need to address the effect of climate change in Nepal. The program's concept was developed in response to the request of the Government of Nepal to upscale climate financing for adaptation and increase access to grant and highly concessional resources from both climate and development finance. It aims to bridge the financing, capacity, institutional, and technical gaps in implementing Nepal's National Adaptation Plan (NAP) and the adaptation measures mentioned in the Second Nationally Determined Contribution (NDC), and the green, resilient, inclusive development (GRID), while promoting mitigation, biodiversity, air quality, and food security as co-benefit. The facility will offer a blended pool of financing sources (including grants, concessional loans, and credit guarantees from both climate and development finance), technical support, and knowledge solutions to deliver predictable and accessible finance and knowledge solutions to governments, civil society, and the private sector.

Impact

Outcome

Outputs

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

Government agencies, particularly MOF (which is the GCF National Designated Authority), Ministry of Forests and Environment, National Disaster Risk Reduction and Management Authority, Town Development Fund, Alternative Energy Promotion Center (which is the GCF Accredited Entity) and subnational and local governments, bilaterals and multilaterals, the private sector, and national CSOs are the major stakeholders of the program. Guided by NAP, NDC, and GRID, consultations will be held with all stakeholders during design and implementation, including meaningful consultations for subprojects through the implementation of the program-level ESMS. The consultations will focus on women's groups and user committees such as community forest user groups and CSOs representing disadvantaged groups such as Dalits, persons with disabilities, sexual and gender minorities, and senior citizens while designing the investment facility. The consultations will discuss the likelihood of CSOs' interest and engagement during the implementation of the program.

During Project Implementation

Business Opportunities

Consulting Services

The TA will require 162 person-months of consulting inputs from 14 international experts (48 person-months) and 21 national experts (114 person-months). ADB will select and engage a consulting firm using quality- and cost-based selection method, with 90:10 qualitycost ratio and full technical proposal procedure. In addition, individual consultants will be engaged (i) to work on the climate finance funding proposal; and (ii) after submission of the draft final report, to support start-up activities of the ensuing loan on as-needed basis. Contingencies may be allocated to recruit additional experts based on needs that will emerge during TA implementation. The Japan International Cooperation Agency's personnel may be utilized as resource persons for capacity development and enhancement of quality infrastructure initiatives based on their relevant experience and initiatives.

Procurement

Procurement will follow ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

Contact

Responsible ADB Officer

Heckmann, Arnaud

Responsible ADB Department

South Asia Department

Responsible ADB Division

Nepal Resident Mission (NRM)

Executing Agencies

Ministry of Finance

Timetable

Concept Clearance

-

Fact Finding

-

MRM

-

Approval

-

Last Review Mission

-

Last PDS Update

12 Jul 2024

Funding