Transcript The Adaptation Fund

Roles of Implementing Entities
Saly, Senegal
5 September 2011
Mikko Ollikainen
Direct Access and the role of NIEs
• Through the direct access modality, countries
may implement projects using an existing
national institution that meets the fiduciary
standards as set by the Adaptation Fund
Board (AFB)
• The direct access modality is offered for the
first time in international climate finance by
the AF
What is an Implementing Entity?
• One that is responsible for the oversight role
for projects/programmes funded through the
Adaptation Fund (AF)
– The AFB cannot oversee all projects directly,
therefore it entrusts this role to IEs
– The IE will be responsible for all funds received
from the AF for a project or programme
– IEs can be Multilateral (e.g. UNDP), Regional (e.g.
BOAD) or National (e.g. CSE, FNE)
What is the oversight role of an
Implementing Entity?
• Full responsibility for the overall management
of a project or programme financed by the AF
– Within the project, specific responsibilities may be
delegated to Executing Entities (project partners)
but IE bears ultimate responsibility of EE actions
• All financial, monitoring and reporting
responsibilities
• No differentiation between MIE, RIE and NIE
Why do IEs have to meet the
fiduciary standards?
• A framework to check whether appropriate
policies, processes and capabilities to
successfully handle projects are in place
• Compliance demonstrates ability to
- meet responsibilities as Implementing Entity
- enter into legal agreements with AFB
Why would a country
have a NIE accredited?
• More ownership of the project
• More control over the funds used to
implement the project
• Potentially, more efficient use of the money
• Learning by doing and more indirect benefits
• Possibly, getting prepared to implement
projects under other direct funding sources
Accreditation of NIEs background and progress
• October 2009: AFB invited countries to apply
for NIE accreditation
• January 2010: first applications, convening the
Accreditation Panel
• March 2010: accreditation of the first NIE:
CSE, Senegal
• Currently: 4 NIEs, several open applications
First direct access project signature ceremony, November 2010
Guidelines for DA to select
a NIE candidate
• The DA should have confidence that the
proposed NIE can demonstrate and supply
evidence of its fiduciary abilities and obtain
the accreditation
• A preliminary evaluation by the DA that the
potential NIE meets the fiduciary standards
and can demonstrate this during the
accreditation process
Guidelines for DA to select
a NIE candidate (2)
• The DA conducts a preliminary assessment
that the potential NIE is the most capable
within the country to take responsibility and
accountability for the full project cycle
• optimal organizational structure:
– a separate corporate structure
– implementation of projects is one of its significant
activities
Guidelines for DA to select
a NIE candidate (3)
• Potential NIE should have:
– a zero tolerance for fraud which is demonstrated by its top
management
– the ability to take on the responsibility of the full project
cycle in an environment free from direct and indirect fraud
and corruption from its own staff and from third parties
– the ability to resolve any allegations thereof in a
transparent and complete manner
– Legal personality
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Guidelines for DA to select
a NIE candidate (4)
• Potential NIE should:
– Be able to work together with government
entities, leveraging co-financing organizations and
other stakeholders within the country in order to
identify, appraise, implement and evaluate
projects related to adaptation
– bring a significant value added component to
Adaptation Projects