To: Nani G. Oruga, The Bees Trees
From: Chris N. Eppers, Solar Musketeers
Re: The steps a project goes through from initial idea, submission to the GEF,
implementation, to completion.
Dear Nani,
Aaah ... The project cycle. Finally something. straightforward-you think? It's
becoming more so, but is not quite there yet.
The Council first discussed the project cycle at the May 1995 meeting. It is
presented in the document, GEF Project Cycle, (GEF/C.4/7). The finalised project
cycle document will be available in early 1996. The general procedure was agreed
upon, but some details still need further work. I don't doubt that fine tuning
will continue for some time, and that regular revisions may be carried out in
order to adapt to changing circumstances. I'll start by giving you the overall
picture and then go into more detail about how it works. This will basically
be a combined summary of various papers related to the project cycle, along
with some of the comments made both by NGOs and Council members. In addition
to the project cycle paper, other relevant papers are The Project Development
and Preparation Facility (PDF) (GEF/C.3/6), and STAP Recommendations
far Selective Review of Projects (GEF/C.5/7).
The GEF Secretariat is preparing a GEF Information Kit that is supposed to
have a clear explanation on how the project cycle works, how to prepare GEF
projects and access GEF funding. For information about specific projects and
their status, the best overview are the Quarterly Operational Reports, which
list projects receiving funding project preparation funding, those in the work
programme and their status, and projects that are receiving funding under the
Small Grants Programme.
The GEF project cycle is supposed to be designed in such a way, that requirements
of the Instrument regarding GEF activities are followed. These include cost-effectiveness;
projects which are country-driven, and based on national priorities; disclosure
of non-confidential information; consultation with and participation of major
groups and local communities; and cooperation with other international organisations,
including NGOs. A specific policy on public involvement and information disclosure
is being developed.
The project cycle has three main phases. The first one covets project identification
to Council approval; the second, Council approval to Implementing Agency approval
and the third includes project start up, implementation, and completion. Within
each phase there are two main steps which I have discussed below. In addition,
I have enclosed a chart and table from the GEF project cycle paper. The chart
outlines the steps in the project cycle, and the second summarises the functions
of the different actors in the project cycle.
Phase 1: From Project Concept to Work Programme Approval
Steps:
1. Project concept/idea identification and preparation
2. Inclusion of project in Work Programme
This phase is for developing project ideas into project proposals, with the
aim of ensuring that projects meet with national and local priorities as well
as global ones. In Enclosure 1.1 you can see that countries requesting financing
are asked to have a national operational focal point. The focal point would
be a person or office in a relevant government department which would liaise
with the GEF on all projects. The responsibilities of the focal point are to:
Act as the principal contact point for all GEF activities in the country;
Review project ideas and concepts, and endorse their consistency with respect-to
national programmes and priorities, and the country's participation in the
relevant conventions; and
Facilitate broad based as well as project specific consultations.
The Implementing Agencies (UNDP UNEP; World Bank) are supposed to work with
the national operational focal points to develop project ideas that are consistent
with the country's national programmes and priorities, as well as with the GEF
Operational Strategy.
Once a potential project has been identified, it usually needs further preparation
before it can be submitted for approval. Funding to assist with project preparation
is available through the GEF Project Preparation and Development Facility (PDF).
It has three funding thresholds., known as blocks. Block A is for grants up
to US$25,000, Block B for grants to US$350,000, and Block C for grants to US$1
million. Block A funds would be available at very early stages of project identification,
Block B would be used for completing project proposals and preparing necessary
supporting documentation, while Block C funds would be used in large scale projects
to complete technical design and feasibility studies. Each block has its own
documentation requirements and approval levels. As you might imagine, it is
much more difficult to get Block C money than Block A money. The document, The
Project Development and Preparation Facility (GEF/C.3/6), has a more detailed
description of access to and use of these funds.
Once a project has been prepared and received government approval, then an
expert chosen from a list approved by the Scientific and Technical Advisory
Panel (STAP) must review the project from a scientific and technical perspective.
The proposal must list all the consultations that have been undertaken with
major groups and local communities. It is then submitted, with the technical
review, to the GEF Operations Committee (GEFOP).
Just in case you didn't read my third letter, the GEFOP is a committee made
up of representatives from each-of the Implementing Agencies (IAs), the Scientific
and Technical Advisory Panel (STAP), and the Biodiversity and Climate Conventions,
as appropriate. It is chaired by someone from the GEF Secretariat.
The GEFOP discusses the projects, and then gives a recommendation to the Chief
Executive Officer (CEO), as to which should be submitted to the Council for
approval. This group of projects is called the work programme'. Approval of
the work programme by the Council, though, does not mean that the projects are
ready to be implemented and that the funds will be released immediately. Council
approval rather, is a green light for further preparation. (Project preparation
is not cheap. Therefore the Council wants to make sure that it supports the
identified projects before more funds are spent.)
When Council members discuss the work programme during the Council meeting,
they are asked to limit their comments to those related to "GEF programming
and associated policy issues" that particular projects might raise. One
example is whether a climate project fits in with the policy guidance of the
Climate Convention. The intention is to avoid detailed discussions on the technical
aspects of each project, which would lead to inefficient micro-management by
the Council. They are invited and encouraged to submit comments of a technical
nature directly to the Secretariat. It is not uncommon, though, for Council
members to make comments related to technical aspects. Furthermore, if it seems
that there are serious problems with a project, it is possible for a project
to be taken off the work programme, at least temporarily. Paragraph 30 of the
GEF Instrument gives the procedure for Council review of specific projects.
Phase 2: From Council Approval to Implementing Agency Approval
Steps:
3. Preparation of final draft Project Document
4. Chief Executive Officer endorsement and project approval
Once a project has made it on to the work programme, it-must be further prepared
by the relevant Implementing Agency (IA). The final draft of the project document
must take into account Council comments and technical comments from Council
members. Before the project is approved by the IA, the final draft document
has to be circulated to Council Members. If there are no objections, the CEO
endorses the project, and the IA and recipient country government can give their
final-approval of project document. Then an agreement is negotiated with the
host country and funds can be disbursed to implement the project.
Phase 3: From Project Approval to Project Completion
Steps:
5. Project implementation
6. Project completion and final evaluation
These are the two steps where the impact of the GEF should be seen. Most of
the project implementation is done by the 'executing agency' in the host country.
For example it could be a government ministry or another United Nations agency.
Sometimes part of the work is subcontracted to NGOs. The IA supervises and monitors
implementation of the project and reports to the Secretariat on a semi-annual
basis. The Secretariat organises a project implementation review of all GEF
activities and the results are submitted to the Council.
Once a project is completed the Implementing Agency prepares a final evaluation
report. This report should address the performance of the project and assess
whether it has achieved its objectives. The guidelines for the final evaluation
are being prepared by the GEF Secretariat on the basis of the monitoring and
evaluation policy, approved by the Council.
At this stage (and earlier) the STAP may identify projects for scientific and
technical review. These could be projects which are highly innovative, have
significant elements of risk, ones that cover more than one focal area, or ones
that are believed to have serious scientific and technical problems. If you
want to know the procedures for this selective review of projects, then read
STAP Recommendations for Selective Review of Projects (GEF/C.6/Inf.8).
Other Project Cycle Related Issues
Contact Groups
National GEF contact groups were proposed in a draft of the project cycle
procedures. However, required establishment of these groups was not approved
by the Council. For many NGOs, though, they appear to be a good idea and some
governments are receptive to organising them. You might want to explore the
possibility of establishing one in your country.
What, you may be asking, are they? A national GEF contact group was supposed
to be a forum to collect, discuss, and review project ideas and proposals, as
well as generally raise awareness on the GEE The idea was that each group should
be composed of both government and non-government representatives, such as people
from the private sector, academic institutions, or non-profit and community
organisations. Some governments said they would duplicate the work of other
similar groups, such as the UNDP national round tables. You could also investigate
if there are any similar groups in your country and see if they could also serve
as GEF contact group.
Funding non project preparation activities
The CEF Secretariat is developing mechanisms that could be used to fund preparation
activities that are not related to specific activities. These activities, rather,
are meant to prepare a country so that it can propose, develop, and implement
GEF projects. Some of the activities that could be supported include establishing
national GEF contact groups, translation of background documents into local
languages, communication costs with in-country groups, experts and relevant
Council members, and national hearings and consultations to identify and discuss
priorities and interests. The paper, Funding Country-Based Preparation Activities
(GEF/C.5/12), discusses the role of country-based preparation activities in
more detail and proposes several funding mechanisms. It has not yet been discussed
by the Council, but probably will be in April 1996.
