Formulation of a GCF project in Armenia
In this assignment E Co. supported the development of a concept note and full funding proposal for the GCF in the climate change mitigation focal area. The proposal aimed at scaling-up investment in energy efficient buildings in Armenia by building on results of the beneficiary’s prior work and helping secure financing for its priority Nationally Appropriate Mitigation Actions (NAMA).
Scope of work
E Co. provided technical support to the Government of Armenia and the UNDP to develop an investment grade project for submission to the GCF. E Co’s responsibilities were:
- Consultation with stakeholders on prior activities and lessons learnt by the Government and UNDP in the efficient buildings sector.
- Support Government prioritisation of activities that are best suited to the funding criteria of the GCF
- Work with national consultants to obtain baseline information and prepare background analysis.
- In consultation with stakeholders analysis of the local market, identification of market barriers and design of the market creation strategy (the overall “Theory of Change” for the project).
- Preparation of the GCF concept note for the selected project.
- Address comments from the GCF Secretariat, and in consultation with stakeholders, refine and formulate the project strategy.
- Identify and facilitate dialogue between the Government, UNDP and other funders to secure co-financing.
- Preparation of the full GCF Funding Proposal and UNDP project document including:
- institutional / implementation requirements
- financial structure of the project
- a detailed Logical Framework with indicators and targets (gender differentiated)
- description of country ownership
- feasibility study including economic and financial analysis with sensitivity analysis
- integrated financial model (in Excel)
- refinement of the environmental and social screening\term sheet
- project timetable and workplan
- Address comments from GCF Secretariat/Board and finalize GCF funding proposal for resubmission.
Approach and process
Five experts from E Co. worked on this assignment. Given the very tight timetable (submission of the full proposal 3 months after contracting) E Co’s Agile project development approach was essential to maintain a close dialogue with the client and the Government. The work was packaged into ‘sprints’ lasting 2-weeks: these start with detailed planning and end with a meeting to demonstrate the progress made by the team. The meeting was attended by representatives of the client and beneficiary and allowed for continuous feedback from the stakeholders.
Since this was the first round of funding requests to the GCF, many questions arose during the work and there was uncertainty about definitions, and the scale and scope of requirements. E Co thus had to adjust to additional information as it was made available by the entity and the GCF.
The full GCF Funding Proposal “De-Risking and Scaling-up Investment in Energy Efficient Building Retrofits in Armenia” was submitted by the entity to the GCF on 28 July 2015. Multiple sets of technical comments were received from the GCF and addressed. The project was approved by the GCF Board in June 2016. It is the 10th GCF project approved (FP010). The FP010 is available here.