Process for PPF support
Entities accredited to the GCF are eligible to apply for PPF support. Accredited Entities submit a project/programme Concept Note either prior to, or together with, a PPF application. However, we strongly recommend that the concept note be submitted before the PPF application to make sure the PPF applications mirrors the feedback provided by the GCF on the concept note.
The objective of a PPF application is to finance the preparation of a Funding Proposal package based on the Concept Note. All PPF applications must be submitted in Word format, provide sufficient justification of the AEs need for project preparation funding from the GCF, as well as detailed budget breakdown.
Once the Concept Note is cleared, the PPF application Note will be reviewed and approved by the GCF Secretariat.
Application development and submission
Project Preparation Facility (PPF) applications are developed by the Accredited Entity (AE) using the PPF application form, in collaboration with the respective NDA / Focal Point, and with support from the GCF Secretariat.
Submitted documents comprise:
- Concept note (if not already submitted and cleared)
- PPF application
- No objection letter for PPF from the NDA or focal point
PPF applications are considered only after a concept note has been cleared by the GCF Secretariat based on the GCF Investment Criteria.
Secretariat Review and AE Revisions
Once the Concept Note is cleared by the GCF Secretariat for PPF support, the review of the PPF application starts. The PPF application is reviewed against the following criteria:
- Articulation of how the PPF activities will produce the documents that make up a Funding Proposal
- Justification of the Accredited Entity’s need for project preparation support
- Clear and efficient implementation arrangements
- Efficient use of GCF resources for project preparation
- Clear disbursement and reporting schedule
- Counterpart financial support for project preparation as encouraged
In certain cases, GCF may seek repayable grant and equity as the PPF financial support depending on the nature of the resultant private sector project/programme.
Endorsement and approval
The PPF application will be discussed at an interdivisional group of the Secretariat for consideration of endorsement once all comments provided by the GCF Secretariat have been addressed by the Accredited Entity. This inter-divisional group includes substantive expertise related to legal, finance, portfolio management, risk and compliance functions within the Secretariat, as well as the Executive Director’s office. Based on the group’s assessment, the application could be endorsed with or without further comments for approval.
In case further conditions are required to be addressed, the PPF team will communicate these to the Accredited Entity and relevant NDA(s) for a final resubmission. Once all conditions have been addressed, the PPF application package (including Concept Note and associated PPF application) will be sent to the GCF approving authority for approval.
In the cases that the group does not recommend for endorsement of the PPF application package, the PPF team will communicate comments received from the discussion with the Accredited Entity and NDA(s) for a resubmission and re-discussion at the group for consideration.
Each approved PPF application package will be disclosed on the GCF website.
Subsequent to PPF funding approval, a Notification of Approval for the PPF application package will be sent to the NDA of the project country with the Accredited Entity in copy. For Accredited Entities who have a Readiness and Preparatory Support Framework Agreement (“Readiness Framework Agreement”) with the GCF, a disbursement request could be submitted to the GCF upon the Notification of Approval. For Accredited Entities who do not have a Readiness Framework Agreement, a legal agreement for the approved PPF application will need to be signed before disbursement.
The GCF has engaged the United Nations Office for Project Services (UNOPS) for grant management support to the Readiness Programme and PPF, including the establishment of a grant agreement, performance monitoring and disbursements under the agreement. In these cases, UNOPS will directly engage with the Accredited Entity concerning the execution of the agreement as well as monitoring and payment activities.
Implementation, monitoring and reporting
The implementation of PPF activities begins following the Notification of Approval of the PPF application by the GCF. Please be aware of the monitoring and reporting plan proposed in the PPF application and provide necessary documents to the GCF Secretariat.
Deviation in Implementation plan and Budget
Once a PPF grant enters implementation, and if a revision or adjustment to the original plan is required due to unforeseen events or change of circumstances, the AE should notify and seek guidance from the GCF as soon as the AE become aware of any revisions are required to the approved implementation plan.
Monitoring and Reporting
Once the first disbursement of funds is made and the activities enter into implementation phase, the AEs are required to report to the GCF Secretariat on the progress made at the end of the reporting period. Please note the following points regarding the reporting:
- PPF activities are implemented according to the specifications of the agreed work plan and budget.
- A financial management system should be maintained, with separate accounts (i.e. bank account or ledger) and records for project.
- The AE reports to GCF, utilising the Progress Report template, on an agreed schedule, against the work plan, budget, and agreed targets; and proposes potential revisions or adaptations, as required, to future implementation plans.
- Financial statements should be prepared in accordance with consistently applied accounting standards, audited on an annual basis by reputable independent auditors, and furnished to the GCF Secretariat in accordance with the reporting requirements set in the proposal and/or grant agreement.
- Reports submitted to the GCF Secretariat will be disclosed on the GCF website.
- The GCF is able to request, audit and verify documents / reports and data related to the project execution upon request to the extent defined in the Grant Agreement or Readiness Framework Agreement.
Completion of project preparation activities
Promptly after completion of the project preparation implementation period, the Accredited Entity shall prepare a Completion Report and submit it to the GCF Secretariat. It should report on the execution of the Project Preparation Activities, performance of agreed obligations and the accomplishment of the purposes of the grant.
In addition to the Completion Report, the AE shall provide or be asked to provide all reports and information concerning the implementation of the Project Preparation Activities, which may include:
- Pre-feasibility and feasibility studies
- Institutional and economic analysis
- Environmental, social and gender studies
- Impact and risk assessment
- Draft funding proposal
This information shall be enclosed after such document, information or derivable is made available to the Accredited Entity.
Submission of project proposal to the Board
The full Funding Proposal supported by a PPF application should be submitted to the GCF Board within two years after the PPF application was approved, unless sufficient justification for an extension is provided. If a delay is anticipated, the Accredited Entity is expected to inform the GCF Secretariat as soon as possible with justification and adjusted plans for completion.