Transcript Document

The Ethiopian CRGE*/
Facility Operations
Manual
Stakeholders Familiarization Workshop
January 2014
Adama
Presentation Outline
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Part I Background and The Ethiopian CRGE Facility
Part II- Appraisal, Approval and Management
mechanisms
Part III-Monitoring, Evaluation and Reporting
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Background
The Ethiopian CRGE Initiative
 Ethiopia has decided and officially declared (during COP-17) a
new development model a Green and Climate Resilient Middle
income Economy with a Zero net emission by 2025
 The CRGE vision has identified several (>60) interventions
across seven sectors to achieve the net zero emission middle
income economy
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The CRGE Initiative (Cont.)
 The prioritized green economy initiatives are divided in to
three categories:
 Own initiatives: that are planned and fully funded by the
government
 Supported initiatives: that are planned by the
government but require support in implementation
 Market-based initiatives: for which Ethiopia might be
able to monetize carbon credits in exchange for GHG
abatement
The CRGE Initiative Architecture
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FINANCE PARTNERS
POOLED FINANCE
LEVERAGED FINANCE
STRATEGY
CLIMATE RESILIENT
GOVERNMENT
OF
ETHIOPIA
VISION
GREEN ECONOMY
CAPACITY DEVELOPMENT PROGRAMME
SECTORAL REDUCTION MECHANISM
CRGE FACILITY
CRGE SECRETARIAT
CRGE MANAGEMENT
COMMITTEE
CRGE TASK FORCE
IMPLEMENTING PARTNERS
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The CRGE Facility
 Preliminary estimates indicate that building the green economy
alone require total expenditure of around US$ 150 billion over
20 years
 The government of Ethiopia has established The CRGE Facility
in September 2012
Objectives:
1. To help mobilize, access, and combine finances required for
implementing the CRGE
2. To help improve environmental management for a climate
resilient green development through provision of grants,
guarantees for loans, co-financing, payment for verified
results and loans
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Main Duties and Responsibilities of the CRGE Facility:
 Mobilization and receiving resources from different sources
 Receiving project proposals,
 Allocation of funds
 Disbursing funds to Implementing Entities (IEs)
 Oversight of funds
 Monitor, evaluate, verify and report on the results achieved by
funded actions
 Receiving substantive and financial report from the IEs
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Duties and Responsibilities (cont.)
 Requesting independent verifiers including MEF on reports
submitted by sectors
 Ensuring the agreed procedures, rules and regulations are
adhered to
 Provide fiduciary assurance to the providers of finance
Potential Funding Sources
CRGE
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Facility’s Financial Instruments
Grantee for loan
Concessional
loan
Co-financing
CRGE
Facility
Grant
Ex-post payment
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Basic Structure of The CRGE Facility
CRGE FACILITY
Management Committee
CRGE Strategy Framework
IMPLEMENTATION
PARTNERS
CRGE Facility
Director
CRGE Facility
Coordinator
Technical Team
(MEF)
Integrated
Resources
Mobilisation
Framework
Finance Team
(MOFED)
FINANCE PARTNERS
CRGE FACILITY SECRETARIAT
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The Inter-ministerial Steering Committee:
 Is chaired by the Prime Minister’s Office
 Comprises representative from each of the Ministries
prioritised by the CRGE Strategy
 Sets overall policy direction and guidance
 Approves the annual overall program and setting the
operational direction of The Facility
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The CRGE Management Committee:
 Provide oversight of The Facility, in accordance with the CRGE
Ministerial Committee guidance and decisions
 MOFED and MEF co-chair and supervise the activities of the MC
 Review and approve The Facility’s Annual Strategic Plan
 Prioritizes the investment plans and makes fund allocation
decisions on all Facility activities
 Each Ministry shall be represented at state minister level and by
the most senior person from their CRGE units
 Review and approve the consolidated report of the Facility
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The CRGE Management Committee (Cont.)
 Oversee effective monitoring and evaluation of all Facility
activities
 Authorise the release of funds from the international account for
approved CRGE activities to the CRGE Facility Account within
MOFED
 Up to two representatives of the primary donors to the Facility
and the UN Resident Coordinator for Ethiopia can be represented
as observers on the MC
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The CRGE Facility Secretariat :
 Is hosted by MOFED
 Is under the direct supervision and control of the State Minister
of External Economic Cooperation of MOFED
 Has a technical wing based in MEF
 Is led by a Director and Coordinator
 Is responsible for the overall coordination of The Facility’s
portfolio
 Receives investment plans and project proposals
 Facilitate fund release and account auditing
 Provide technical support to IEs
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The Facility Secretariat (Cont.)
 Receive and compile progress reports of Facility-funded
activities;
 The Technical Team housed in MEF has the following
responsibilities:
 Develop guidelines for the SRAPs and project proposal
preparation
 Assess, approve and prioritize investment plans submitted by IEs
 Appraises SRAPs against development and climate change criteria
 Development partners may be requested to provide support
and/or be represented in the Technical Team where deemed
relevant
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The Facility Advisory Group:
 Reviews draft investment plans and provide comments and
suggestions to the CRGE Task Force and Management
Committee
 Is not part of the decision-making process, which will
remain entirely with the Government of Ethiopia
The CRGE Facility Governance Arrangement
Ministerial Steering
Committee
MEF
MOFED
Management Committee
Director
Technical
Team
Unit
Facility Secretariat
Finance
Team
Advisory Board
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CRGE Structure at Regional Level
Regional CRGE Steering Committee Chaired by the
Regional President
BEF and BOFED
CRGE Units of each Bureau, liasing with line ministries
Woreda CRGE Coordination Committee Chaired by the
Woreda Administrator
CRGE Units of each Woreda Office
Roles and Responsibilities of Key Actors
MOFED
 Host and make The Facility operational
 Full programmatic and financial accountability, on behalf of the
Government;
 Release funds from the CRGE Facility Account to IEs pursuant to
the decision of the MC and in compliance with the National
Regulatory Framework;
 Sign agreement with each IE;
 Signs MOU with contributors to the CRGE Facility’s National
Account
 Signs and administer Emissions Purchase Agreements or other
forms of contractual obligations with the Facility
Roles and Responsibilities of Key Actors (Cont.)
MEF
 Supervises and regulates implementation of the technical
components of the CRGE initiative;
 Assists with the organisation and conduct of objective MRV
activities required by The Facility;
 Develop guidelines, procedures and templates
 Establish a national CRGE MRV system for emissions and
vulnerability results
 Build the capacity of IEs to document/register on-going and/or
future reduction actions
 Facilitate capacity building on the specific requirements of
MRV and climate financing schemes, etc.
Roles and Responsibilities of Key Actors (Cont.)
Implementing Entities (IEs)
 Are Federal line ministries and Regional Sector Bureaus
FIEs
 Coordinate and lead the preparation of SRAPs and submit to
the facility;
 Receive funds and disburse to RIEs, Specialist Financial
Intermediaries;
 Coordinate implementation of SRAPs;
 Consolidate and submit report to the Facility;
 Implement as deemed necessary;
Roles and Responsibilities of Key Actors (Cont.)
RIEs
 Prepare regional SRAPs and submit to FIEs for consolidation
and submission to the Facility;
 Receive funds through FIEs for SRAPs Implementation;
 Sign implementation agreement with EEs;
 Supervise implementation of plans by EEs,
 Implement as deemed necessary;
 Prepare periodic reports;
Roles and Responsibilities of Key Actors (Cont.)
EEs
 Include non-state actors, such as the private sector, small and
micro enterprises, parastals, academic institutions and NGOs;
 All types of EEs have access to Facility funds, but the
application for funds is channelled through IEs, who are the
only interface with the Facility;
 EEs must work collaboratively with IEs to plan and
implement activities;
 EEs do the bulk of actual implementation of work supported
by the CRGE Facility;
BEF
 Coordinating and supporting SRAPs in the region;
 Coordinating and supporting RIEs in developing investment
plans with EEs in the region;
 Coordinating independent evaluation and verification of
results by accredited agents
 Facilitating and supporting MRV of CRGE projects;
 Coordinating CRGE related activities in the region,
 Providing technical and advisory support to RIEs;
 In collaboration with BOFED, organising quarterly review
meetings in the region; and
 Facilitating regional/Woreda level M&E including field visits
BOFED
 Assisting and coordinating the preparation of SRAPs and
Sectoral project proposals for the region;
 Following up on the implementation progress for each sector
investments and projects;
 Holding quarterly review meetings for all sector programmes
assisted by The Facility in the region and conducting monthly
follow up meetings focusing on issues;
 Organising a regional monitoring and evaluation Facilitating
account auditing.
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Part II- Appraisal, Approval and
Disbursement
Two CRGE Facility Windows and Two Accounts
Windows
Program: provides funds subject
to Strategic Agreements
Responsive: provides the
mechanism by which
earmarked funds can be
matched to relevant proposals
Accounts
Facility Account: Opened and
managed by MOFED
International: established
and managed by UNDP
MPTF-Office on behalf of the
Government of Ethiopia
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Access to the Facility
 Both windows will be accessed by state and nonstate actors
 Non-state actors(i.e. civil society, private sector
organizations, etc) work in partnership with the IEs
i.e. they can access through the relevant sector
ministries to ensure alignment and to avoid
duplication
CRGE Facility work flow chart
Step-1 Preparation
• Federal IE, led by
CRGE Unit,
develop SRAPs
combining
regional inputs
• MEF provide
framework and
guidelines
• CRGE Facility
provide
guidance,
information
and support
STEP-2 Review
and Appraisal
• CRGE Facility
Submission
• Proposal
recorded
• Appraisal
process
starts
STEP-3
Mobilization/Allocat
ion
• Facility
Management
Committee
• Considers
recommendatio
n from AB and
Secretariat
• Allocates funds
to priorities
• Notification of
proponents
(IEs) by the
Secretariat
STEP-4 Implementation and
M&E
• Implementation
• Funds disbursed to FIs
• Federal IEs disburse to
RIEs; EEs receive from
FIs or RIEs
• Monitoring and Evaluation
• IEs submit report in line
with M&E plan
• Facility ensures M&E
Framework is adhered
to
• Technical team ensures
technical
implementation and
MRV
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The CRGE Facility Appraisal Process
Secretariat prepares
SRAPs for appraisal
Secretariat submits proposal packages
to Technical Team for appraisal
Technical Team commences technical and
financial appraisal and seeks clarifications
and revisions
Technical Team completes technical and
financial appraisal and selects/
prioritises proposals
Technical Committee
submits final appraisals
and reports to Secretariat
Secretariat submits proposal
packages to Advisory Board for
review and comment
Advisory Board commences review and
highlights strengths, priorities and issues of
concern and sends feedback to Technical
Committee and/or to the Management
Committee
Secretariat relays appraisals
and reports to Advisory
Board and Management
Committee
Management Committee
reviews selections against
availability of funds and
confirms decisions on
award of funds
Secretariat notifies Management
committee decisions to the
proposers
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The Overall Twelve-month Operating Cycle of the CRGE Facility
nd
st
st
2 set of
funding
decisions made
nd
1 set of
funding
decisions made
1 set of
proposals
submitted
2 set of
proposals
submitted
Annual Budgeting Process
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Processes for Disbursing Funds from the CRGE Facility
MOFED
Strategic
Allocations/Ledger
Targeted
Allocations/Ledger
IE
Strategic
Allocations/Ledger
Sector Bureau/Other
State Actor at Regional
Level
State Actor at
Woreda Level
Targeted
Allocations/Ledger
Specialist Financial
Intermediary
Non State Actor
Executing Entity
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Part III- Monitoring, Evaluation and
Reporting
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General
 Monitoring, evaluation and reporting is primarily the
responsibility of the Government represented by MOFED, and
executed by The Facility
 Specific responsibilities under the M&E programme will be
assigned to Implementing Entities as well
 Financial Partners will participate in selected aspects of M&E as
required
 The Facility will engage qualified specialists to assist in the
execution of the M&E programme
 The CRGE M&E shall focus on the assessment of results (impacts,
outcomes and outputs) based on the principles of RBM
 The CRGE M&E mechanisms will be aligned with existing
national and sectoral M&E processes
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Scope of The CRGE Facility M&E
 Focuses on development and climate (emission and vulnerability
reduction)results
 The CRGE Facility requires monitoring and evaluation at three
levels:
– Assessment of the performance of The Facility,
– Assessment of the performance of the actions supported by
The Facility, and
– Where appropriate, detailed MRV required by actions
supported by The Facility.
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Roles and Responsibilities
IEs




Develop SRAPs
including results
targets and
milestones to
contribute to CRGE
Monitoring of all
activities
implemented EEs
Facilitate and
engage with any
independent
reviews and
evaluations
Receive reporting
from EEs
MOFED (Finance Team)






Develop and implement M&E
strategy and results
Framework for CRGE Facility
Conduct monitoring and
follow up of implemented
programmes
Coordinate joint review
missions
Receiving, quality assuring
and collating reporting from
IEs
Reporting on finance and
delivery to MC
Coordinate review meetings
with IE’s and EE’s
MEF (Technical Team)

Provide guidance
and templates to IEs
design targets,
milestones and to
monitor progress

Technical MRV
support (tools,
support, follow up)

Technical quality
assurance on high
level results targets

Conduct periodic
field visits to
programme sites
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Thank you for Your Attention!!