Process for Project Preparation Facility support

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. The process steps described below reflect the differences between the PPF funding and the PPF service.

Step-by-step

Application development and submission

Project Preparation Facility (PPF) applications are developed by the Accredited Entity (AE) in collaboration with the respective NDA / Focal Point, and with support from the GCF Secretariat, using one of the three PPF application forms:

PPF funding application form
Simplified PPF funding application form
PPF service application form

Submitted documents comprise:

Concept note (if not already submitted and endorsed)
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’s Climate Investment Committee (CIC) based on the GCF Investment Criteria.

Secretariat Review and AE Revisions

Once the Concept Note is endorsed by the CIC for PPF support, the review of the PPF application starts. The PPF application is reviewed against the following criteria:

Assessment criteria	PPF funding		PFF service
Assessment criteria	Standard	Simplified	PFF service
Articulation of how the PPF activities will produce the documents that make up a funding proposal	✓	✓	✓
Justification of the AE’s need for project preparation support	✓	✓	✓
Detailed implementation arrangements	✓	Limited	N/A
Detailed budget to ensure efficient use of GCF resources for project preparation	✓	Limited	N/A
Detailed disbursement and reporting schedule	✓	Limited	N/A
Counterpart financial support for project preparation is encouraged	✓	✓	N/A
Adequacy of terms of reference for desired studies/outputs	✓	✓	✓

In certain cases of PPF funding, GCF may seek repayable grant and equity as the PPF financial support depending on the nature of the resultant private sector project/programme.

Approval

The review of PPF applications is led by the PPF team; when substantive expertise is required in other fields, inputs will be sought from other teams and divisions.

Based on this assessment, the application could either be processed further to approval or sent back to the AE for revisions. In the latter case, the PPF team will communicate GCF feedback to the AE for a resubmission.

PPF funding:

Once GCF feedback has been fully addressed, the PPF application package (including concept note and associated PPF application) will be sent to the GCF approving authority for approval.

PPF service:

A partnered firm from the GCF project preparation roster will be selected to undertake the activities. This will be decided through an open, transparent and competitive process in line with the GCF procurement policy and inclusive of the recipient AE. Upon selection of the firm, the detailed support package will be approved by the relevant GCF approval authority.

Each approved PPF application package will be disclosed on the GCF website.

Legal agreement

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.

PPF funding:

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.

PPF service:

Subsequent contractual arrangements will capture roles, responsibilities and operational details related to a specific PPF service application.

Implementation, monitoring and reporting

The implementation of PPF activities begins following the Notification of Approval of the PPF application by the GCF.

PPF funding:

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.

PPF service:

Implementation will be carried out by the selected firm with instruction from the AEs. Detailed timeframe, duration and implementation details will be captured in subsequent contractual arrangements.

Completion of project preparation activities

PPF funding:

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.

PPF service:

Upon satisfactory delivery of project preparation activities as detailed in an approved Project Preparation Service Application, the PPF confirmation of Services letter should be prepared, signed and sent by Accredited Entities to the GCF. This letter confirms that the contractor has performed and delivered the services related to underlying project or programme in a fully satisfactory manner, meeting the standards set out in the relevant Contract and Work Order.

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.