In 2018, the EPF received the first support for its accreditation as first DAE to the GCF in Lao PDR. The delivery partner was GIZ. As part of the support, gaps between GCF standards and the current status of the EPF were analyzed and subsequently started to be closed. As part of this, manuals for project management, fiduciary standards, environmental and social safeguards & gender and M&E were overhauled and updated to match GCF requirements. In addition, initial training workshops for EPFO staff were provided. However, there are remaining capacity gaps to be addressed to complete the accreditation process and hiring an international consultant will be necessary to assist EPFO and its partners during the preparation of a proposal for the microproject to be submitted to GCF in year 2022. The support will culminate in submitting a first application through the OAS and a peer-to-peer workshop with fellow DAEs from 5 countries to share experiences and ideas.

During the accreditation process, the EPF will need additional support to close any remaining gaps. They include (a) plan and facilitate effective implementation of projects, especially those related to accounting software and M&E system; (b) to identify and engage the potential candidate for the GCF subproject (GCF portfolio) and potential concept note (CN); and (c) to build capacity of EPFO staff to meet international requirement. In additions, adapting the new legislations, policies and EPF institution structure, including legal support which need qualified international and national legal consultants to support for the technical aspects. In order to finalize the accreditation process and ensure a long-term sustainability, the EPF hereby requests funds from the RPSP of the GCF to close the remaining gaps and strengthen its staff and institutional capacities to be a successful DAE. The expect outcomes are (1) to fulfill the remaining gaps and (2) to get accredited from GCF to be the National Accredited Entity (NAE) which will take significant roles as the finance mechanism and provide appropriate fund to related stakeholders, also provide technical support in the specific areas and follow the funding windows of EPF. In the big picture, EPF as the national entity will provide great support to the National Social-Economic Development Plan (call 5 years action plan). The beneficiaries are not only at the national level, the local community will also receive the appropriate support which following the Green Clean Beautiful (GCB) policy and sustainable direction.

Given that key EPF mandates are to tap funding support from various sources and ensuring that the funds are effectively allocated and utilized, the main challenges of the EPF are to find the right policy, procedures, and capacity that can enhance capacity of EPFO to meet international expectations especially those related to (a) financial management, (b) planning and M&E system, (c) environment and social management, and (d) effective coordination and collaboration within EPFO as well as with key agencies and other key beneficiaries/stakeholders. The RPSP of GCF will be used to mobilize qualified national, regional, and/or international consultants to assist in the development of the concept note and draft proposals that are eligible for GCF funds as well as facilitating the stakeholder engagement process (meetings, workshops, study visits within and outside the country), and capacity building of local authorities and local communities which are likely to be the key beneficiaries for the GFC support.

The results of the readiness project will ensure that EPF will meet GCF requirements and also be ready for implementation while the EPF proposal to be the DAE for Lao PDR is being considered and approved by GCF Board.