with the Ministry of Finance and Economic Affairs for the Federal Democratic Republic of Ethiopia 29 May 2015 NDA Strengthening & Country Programming

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1 with the Ministry of Finance and Economic Affairs for the Federal Democratic Republic of Ethiopia 29 May 2015 NDA Strengthening & Country Programming

2 Version February 2015 Green Climate Fund Readiness and Preparatory Support Proposal Country (or region) Submission date NDA or Focal Point Date of NDA/FPdesign ation Contact point (the person who will be responsible and accountable for this request) Full office address Ethiopia State Minister Kare Debessa, Ministry of Environment and Forest (MEF) 7 May2014 Name:Kare DebessaPosition:State Minister, Ministry of Environment and Forest lemkare@gmail.com Tel: Africa Avenue, P.O. Box Addis Ababa, Ethiopia. Readiness area/s Request summary (In 200 words or less please summarise your request for readiness support) 1. Establishing and strengthening National Designated Authorities (NDAs) or Focal Points 2. Strategic frameworks for engagement with the Fund, including the preparation of country programmes 3. Selection of implementing entities or intermediaries, and support for accreditation 4. Initial pipelines of programme and project proposals 5. Information Sharing, experience exchange and learning Activity 1: Strengthening the NDA The NDA will hire short-term consultants (two individuals or a firm) for up to 6 months to build the capacity of the team within MEF that will be responsible for coordinating with other ministries on the Green Climate Fund (the Fund). The consultants will support the NDA in undertaking the following tasks: i) Building the knowledge and capacity of the MEF coordination team; ii) Coordinating with other ministries on Fund-related matters; iii) iv) Drafting the country programme (see activity 2 below); Liaising with other ministries, including on consultations related to the development of a country programme; and v) Organizing multi-stakeholder consultations. The NDA may also add other activities in accordance with the Fund s defined scope of work in the Standardised Package for NDA or Focal Strengthening, available at: ge_1_nda_strengthening.pdf. Activity 2: Strategic Engagement Framework with the Fund 1

3 Version February 2015 The NDA will develop a country programme that includes: i) Ethiopia s development priorities with respect to the Green Climate Fund (the Fund)made consistent withthe country s Climate Resilient and Green Economy (CRGE) strategy, the Growth & Transformation Plan (GTP) II,and the Fund s Initial results management framework; ii) Identifying opportunities to engage the private sector, including micro, small and medium-sized enterprises, and leverage their capacity to implement Ethiopia s programming priorities; iii) Identifying the rolesof prospective public and private sectorentities that may be accredited by the Fund in implementingethiopia s programming priorities with respect to the Fund; iv) Identifyingprogrammes and projects, including public-private partnerships, consistent with the Fund s Initial investment framework; and v) Identifying how the GCF can build on the ongoing work of otherdevelopment partners in the country, and deliver its support in a manner complementary to the efforts of other partners. The NDA may add other elements to the country programme and will also undertake stakeholder consultations in a manner that is consistent with the Fund s defined scope of work in the Standardised Package for Country Strategic Frameworks, available at: ge_2_country_programme.pdf. Start and end 1 August July 2017 dates Duration of 24 months(2 years) support (in months) Estimated total Up to US$ 300,000 cost (in US$) SECTION A: CONTEXT A.1 Status of GCF readiness in the country (include information on previous engagement with the Fund and related readiness initiatives and activities) Since 2011, Ethiopia has made significant progress towards preparing the country for a transition to low emission climate resilient development. These include integrated national and sub national development planning, specialist financial mechanisms (CRGE Facility) and accreditation applications to the Adaptation Fund. Previous engagement with the Fund A mission was undertaken in September 2014 to Ethiopia to identify areas of potential readiness support. The specific requests for readiness has been jointly identified by the Ministry of Finance and Economic Development (MOF) in its role as of the lead agency for international development assistance and Ministry of Environment & Forestry (MEF) as NDA of the Fund. During Lima COP20 meetings in December 2015, Ethiopian government officials met with the Fund on several occasions to address i) readiness, ii) pipeline development and iii) accreditation issues. Related readiness initiatives & activities Ethiopia is supported by several development partners on its CRGE strategies, including UNDP, GGGI, CDKN and others addressing various aspects, i.e. resource mobilisation, private sector engagement, accreditation for the Adaptation Fund, sectoral strategies, capacity building efforts at national and sub-national level as well as monitoring and evaluation frameworks specific to climate change.the activities applied for in this proposal, however, do not overlap with any existing readiness support offered by other entities. Ethiopia has ongoing relationships with several development agencies for its Green Economy plans which were in place prior to the Fund sreadiness Programme. CDKN Africa is the only other partner providing Fund-specific support, 2

4 Version February 2015 specifically in accreditation. A.2 Description of planned project / programmes (applicable for project / programme preparation request only) N/A SECTION B: DESCRIPTION OF ACTIVITIES B.1 Logical framework See Annex I. B.2 Rationale for the request Overall Ethiopia has a long term strategy to attain middle income status by 2020 and therefore the effective use of national and international sources of funding at its disposal is a critical focus. Ethiopia is unique in that it has embarked on a process to mainstream the concept of a green economy into its development path. The effective use of resources and ensuring that its national finance system is conducive to greening the economy is a crucial to achieving these aspirations. As the Fund is a new financial mechanism accessible to the country, Ethiopia would like to ensure that i) a unique role is identified for the Fund s operations in Ethiopia, which is complementary to both domestic and existing international resources available to the country, and ii) specialist capacities within government are in place to provide focused attention to and ensure alignment between the country s priorities and the Fund s investment mandate. Activity 1 MEF has a new team in place to support their efforts to transition to a climate resilient and green economy. This team will also be responsible for engagement with the Fund in the long-term. However, in the short term, the NDA requires short-term specialist resources in order to effectively accelerate their engagement with the Fund, and also build the capacity of the staff team that will take up these responsibilities in the long-term. Activity 2 Ethiopia has a CRGE strategy and has also developed the GTP II (as stated above). The government is playing a lead role in ensuring that all major international sources of public finance are deployed in a manner that supports these strategies and plans without overlap or duplication. This includes defining a clear and distinct role for the Fundthat aligns potential resources from the Fund with their strategic priorities in a manner that complements and catalyses other sources. Thus, the country programme will form the basis for Ethiopia s strategic engagement with the Fund. SECTION C: BUDGET(include total cost and share of GCF funding) 1. Activity 1: US$ 150,000 - Consultancy services (including travel cost): US$ 65,000 - Travel & per diem of consultants: US$ 20,000 - Workshops: US$ 50,000 - Other cost (including audit): US$ 7,500 - Contingency: US$ 7, Activity 2: US$ 150,000 - Consultancy services (including travel cost): US$ 65,000 - Travel & per diem of consultants: US$ 20,000 - Workshops: US$ 50,000 - Other cost (including audit): US$ 7,500 3

5 Version February Contingency: US$ 7,500 MEF, the NDA will provide counterpart support in the form of staff, office, office supplies, domestic transportation, and other in-kind contributions, amounting to approximately US $100,000. The NDA anticipates that it will need additional resources to fully undertake activities to strengthen the NDA and develop a country programme, and it may supplement the Fund s resources with additional resources from other development partners. The audit fees is included in the overall approved budget. SECTION D: IMPLEMENTATION PLAN D.1 Implementation and disbursement schedule The funding will be transferred to MOF in three tranches: The first disbursement, which amounts US$ 100,000 (US$50,000 for Activity 1 and US$50,000 for Activity 2), will be transferred upon the submission of an inception report from MEF, the NDA to the Fund, in form and substance acceptable to the Fund, which includes detailed implementation plan, procurement plan and budget; The second tranche of US$ 100,000 will be transferred upon submission of an interim progress report and audited financial report, in form and substance acceptable to the Fund, including an expenditure statement; and The final disbursement of $100,000 will be made upon submission of acompletion report and financial report, including an audited expenditure statement. D.2 Implementation arrangements(includedelivery partners, opportunity for South-South knowledge sharing and transfer where applicable) While MOF will take responsibilities for fiduciary management of the readiness funding, the NDA will lead the implementation process of this programme in collaboration with MOF. The NDA will identify and hire 2 (maximum 3) individual consultants or a consulting firm to deliver Activity 1 and 2 in accordance with the procurement plan and a detailed implementation plan, both of which will be further elaborated in the inception report. D.3 Procurement plan MOFis the institution responsible for oversight of financial management in the Ethiopian government. MOFalso has a procurement unit legally established by the Federal Government Procurement and Property Administration Proclamation (No 649/2009). MOF has been found to have the capacity to properly manage the readiness funding through the Fiduciary Risk Assessment and Review of PFM Issues related to the Ethiopian CRGE Facilityundertaken by Crown Agents for DFID, and all the procurement process for the proposed activities will thus be managed under MOF s own procurement guidelines and policy. MOF, in collaboration with the NDA, will competitively procure services consistent with its procurement policies: Consultants will be procured on a competitive basis and the terms of reference of consultants will be developed further to include the tasks outlined in the request summary above. The NDA may also add other tasks to the ToRs of the consultants in accordance with the Fund s defined scope of work on NDA strengthening within the resource envelope in this proposal and any supplementary resources secured from other sources. For items such as venues and travel for stakeholder workshops to be organized, a shopping method will be used to procure such services consistent with MOF s procurement policies. Information on the process and the results of procurement to undertaken will be included in the inception report where such information can be provided in advance, and in any case, in interim progress or completion reports when such procurement has been undertaken and completed. SECTION E: COUNTRY OWNERSHIP& STAKEHOLDER ENGAGEMENT E.1 Alignment with national plans and strategies 4

6 Version February 2015 Ethiopia s response to climate change is embedded in the country s Climate Resilience Green Economy (CRGE) development strategies. These strategies recognise the climate vulnerabilities of the mainly agriculturally based economy and seek to diversify its economic base through green industries and services. Ethiopia has made significant advances in integrating CRGE into its national plans and has created a financing mechanism within MOF, the CRGE Facility, which supports government s efforts for resource mobilisation from a several sources. A part of this proposal to develop the country programme is to strengthen the link between the Fund s operations with Ethiopia s priorities. E.2 Stakeholder engagement (e.g. civil society, sub-national and national government, private sector, intended beneficiaries) Ethiopia s country systems include planning and engagement with sub-national governmental agencies/bodies, the private sector and civil society. During the mission in September 2014, several non-government stakeholders were engaged and there appeared to be an opportunity for a stronger engagement with them to improve their understanding of their role in the financing and advancing the climate resilience and green economy goals. Multistakeholder consultations or events will be held in accordance with the Fund s initial best-practice options for country coordination and multi-stakeholder engagement (Annex XIV to Decision B.08/11, available at engagement.pdf). SECTION F: MONITORING &REPORTING PLAN The reports to be submitted will be as per what is included in section D.1, and will include reporting against the logical framework included in Annex III. SECTION G: RISK & MITIGATION MEASURES No major risks identified SECTION H: KNOWLGE MANAGEMENT AND COMMUNICATION PLAN Opportunities for South-South learning is significant. Ethiopia is regarded as a leader among other African states in terms of its transformative green economy path. Lessons learned from the readiness support by the Fund can be shared through the Fund s regional events or information materials for countries. 5

7 Version February 2015 Annex I. Logical framework Outcomes 1 2 Outputs Activities Description NDA capacity strengthened to undertake Fund-related responsibilities Strategic framework for engagement with the Fund developed Presentations or other climate and development-related information materials Summaries of meetings of country coordination mechanism and multi-stakeholder engagement, including list of participants Annual report on activities of the Fund and other relevant funding mechanisms and institutions in the country Information materials on the operational procedures of the Fund in local languages (where relevant) and distribution lists of recipients Country programme, including elements provided in the Fund s Initial Guidelines for Country Programme Summaries of meetings of multi-stakeholder engagement, including list of participants Indicators 1.1Knowledge acquired on the country s climate- and development-related needs, priorities, strategies, plans, relevant institutions and stakeholders 1.2Capacity developed to facilitate and coordinate a country coordination mechanism and multi-stakeholder engagement that results in identification of priorities and recommendations of (or no-objections on) funding proposals 1.3 Capacity and systems developed to monitor, evaluate and maintain an overview of activities of the Fund and other relevant funding mechanisms and institutions working in the country 1.4Capacity to disseminate information, including in local languages, on the operational procedures of the Fund to country stakeholders 2.1 Country programme developed and endorsed by country coordination mechanism 2.2 NDA-led stakeholder engagement process undertaken To be completed based on country-specific context To be completed based on country-specific context 6

8 PAGE 1 OF 24 (Please submit completed form to countries@gcfund.org) Summary Country Ethiopia Date of Submission 10/11/2015 NDA or Focal Point contact details Name: Kare Debessa Position: State Minister, Ministry of Environment, Forest and Climate Change lemkare@gmail.com The overall objective of this grant is to enhance Ethiopia s chance of accessing the Green Climate Fund as potential source of climate finance which can leverage domestic investment to build a climate resilient and low carbon middle income economy. The specific objectives of the grant are to strengthen the institutional capacities of the Ministry of Environment, Forest and Climate Change (MEFCC) as an NDA of Ethiopia, to effectively fulfil its roles and responsibilities related with the Fund, engage with regional, national & sub-national governments, civil society and private sector stakeholders as well as to develop country program through multistakeholders engagement process. Activity 1: Strengthening the NDA MEFCC in its role as the NDA requires various capacity building and organisational support to ensure it can fulfil the role envisaged by the Fund. Aligned with GoE policy frameworks and institutional arrangements, MEFCC will develop an operational system for communication and coordination of activities and a gender sensitive stakeholder assessment/engagement strategy which takes social and environmental safeguard issues into consideration. Summary of proposed activities and timeline (maximum 350 words) Activity 2: Strategic Engagement Framework with the Fund Under this component, the readiness support will be used to enhance the strategic engagement of the NDA and stakeholders such as line ministries, the NIE, etc. with the GCF. Some of the key focus areas of the support include: i) Recruit one national and three international consultants who will support the integration and mainstreaming of the CRGE strategy visions and initiatives into national and sectoral development plans of Ethiopia for the period ; ii) Organize and facilitate multi-stakeholders engagement forums and development of a country program. With the Team in MEFCC and relevant stakeholders, they will make sure that the country program will be consistent with the Ethiopian CRGE Strategy, GTP-II, as well as the fund s initial results management framework. They will also help the NDA and the NIE in identifying opportunities to engage the private sector, including micro, small and mediumsized enterprises, and leverage their capacity to implement Ethiopia s programming priorities. iii) Strengthen existing initiatives or support development of new systems, procedures, guidelines, etc. as appropriate in the areas of private sector engagement, Measurement, Reporting and Verification (MRV), monitoring and evaluation, etc. consistent with the fund s standards and requirements. iv) Support identification and development of sectoral programmes that are aligned with the Investment, Allocation and Results Framework of the Fund and the associated work necessary to ensure that they can be submitted for investment approval. In this context, the process of identification would be based on Ethiopia s country systems in terms of stakeholder engagement at the national and subnational level and the Fund s requirements. The total grant amount requested to accomplish the readiness activities is U 300,000 and the estimated implementation timeline is up to 31 July 2017.

9 PAGE 2 OF 24 ACTIVITY AREA 1 1 : STRENGTHENING OF NATIONAL DESIGNAT AUTHORITY A.1 Assessment of strengths and needs Ethiopia has set a vision and strategy to build a climate resilient and carbon neutral middle income economy by 2025 through the Climate Resilient and Green Economy (CRGE) strategy. In this connection, the government of Ethiopia has decided to re-establish the former Environmental Protection Authority (EPA) as Ministry of Environment, Forest and Climate Change with better visibility and broader mandate (MEFCC) to coordinate and oversight the implementation of the CRGE Strategy. Key sector ministries have also established CRGE units and have started implementation of Fast Track Projects. The Ministry of Finance and Economic Cooperation (MOFEC) in collaboration with MEFCC established a CRGE Facility in order to mobilize climate finance from various sources and leverage investment on climate change mitigation and adaptation actions. The MEFCC in collaboration with MOFEC and development partners has been working to enhance the general awareness of key actors at federal and regional levels on climate change (science, impact, response measures), the Ethiopian CRGE, etc. MEFCC has also developed guideline and check-list for full scale integration of the CRGE into the country s middle term development plan known as the Growth and Transformation plan (GTP-II). There is high-level political commitment and leadership to push the climate change mitigation and adaptation agenda in the country. With regard to engagement with the GCF, the accreditation process of MOFEC for direct access has advanced well and is waiting board approval. Key CRGE sectors have already started developing pipeline project proposals, which will be submitted to the GCF by the NIE. They have also actively engaged with the integration of CRGE into their five years (i.e ) overall development plan. The successful implementation of the CRGE strategy as well as delivery of GCF supported projects requires strengthening the regulatory and operational systems and practices within the country. It also requires strengthening the human and organizational capacities of the coordinating/enabling and delivery institutions at all levels. The readiness support will enable the NDA (i.e. the Ministry of Environment, Forest and Climate Change (MEFCC) as well as the NIE to strengthen their organizational, system and human capacities to effectively lead and coordinate formulation of high standard project proposals which comply with the standards of the GCF. It will also enable them to develop a country program with the Fund. The NDA (MEFCC) is a relatively new institution established by proclamation slightly over two years ago. One of the main mandates of the MEFCC is to coordinate and lead the realization of the CRGE vision, which is building a climate resilient and low emission middle income economy by Since its establishment, MEFCC in collaboration with sector ministries and other development partners have undertaken tremendous actions. It has developed MRV as well as Environmental and Social Safeguards framework. As an NDA to the Green Climate Fund, it has to further enhance its own capacity and coordinate formulation of a country engagement framework with the Fund. It should also develop skill and knowledge to lead and coordinate the implement MRV framework. A.2 Key stakeholders to be involved The MEFCC as NDA as well as MOFEC as potential NIE, are closely working with sector ministries and regional government bureaus, multilateral organizations such as the World Bank, UNDP and bilateral development partners such as the United Kingdom, Norway, Denmark, Sweden, Germany, France, Austria, etc., NGOs, Academia and Civil Society Organizations (CSOs) through the relevant line ministries. These stakeholders are engaged in the delivery of the CRGE vision in different ways. Bilateral development partners mostly provide financial contributions for the implementation and delivery of climate change mitigation and adaptation actions as well as capacity building. For instance, the United Kingdom, Norway, Austria and Denmark have contributed over U 40 million to the CRGE Facility for implementation of climate change mitigation and adaption actions in different sectors and regions of Ethiopia. The public institutions at federal and regional levels directly implement CRGE actions as well as coordinate technical and implementation support by other entities. The private sector also actively participates and closely works with relevant sector ministries. Currently the potential NIE and the NDA are developing a comprehensive private sector engagement strategy. 1 Please refer to decision Annex XIII Initial best-practice guidelines for the selection and establishment of national designated authorities and focal points to B.08/10Country Ownership, and B.10/10Country Ownership, as well as the GCF Secretariat s guide for NDAs/ focal points for further guidance on the responsibilities that countries are expected to fulfil.

10 PAGE 3 OF 24 A.3 Proposed process for multi-stakeholder engagement Ethiopia is a federal country composed of Nine Regional states and Two City Administrations. Sector Bureaus at regional levels actively engage with respective Federal sector ministries in the planning, implementation, monitoring and evaluation of programs and projects. Sub-regional entities at district level directly engage with regional sector bureaus. The planning process follows both bottom-up and top down approaches. The overarching policy directions and strategies of the country are set at federal level and cascade down to regional and sub-regional levels. The macro-level actions are of course guided and informed by regional and sub-regional levels. The regional and sub-regional levels engage in detailed planning and formulation of programs and projects consistent with the overarching framework and strategy of the country as well as their own circumstances. Sector ministries at federal level then consolidate the regional plans and programs into sector wide development plan, which will feed into the national development plan. During this process, relevant stakeholders including multilateral and bilateral development partners, the private sector, civil society, academia, etc. will actively engage. The formulation of a country program for GCF follows the same process and practice. MEFCC as NDA and MOFEC as an NIE in collaboration with the National Planning Commission and sector ministries will identify a number potential priorities in the context of the national development plans for strategic engagement with the GCF. Through the readiness support, experienced national and international experts will be recruited to lead stakeholders consultation and synthesis of the country program. In this connection, stakeholders engagement workshops will be organized. During such events, the active participation of private sector, non-state actors and development partners will be ensured. A.4 Detailed plan The readiness support will help the MEFCC as an NDA to strengthen its capacity to lead and coordinate development of bankable projects, formulation of a national strategic engagement framework with the GCF. It will also enable MEFCC to effectively communicate with implementing and executing entities and deliver its roles and responsibilities related with the GCF. In this connection, the following specific activities will be implemented under the first activity area. The NDA and NIE will ensure that there will be no duplication of efforts with the existing technical and advisory support initiatives. Activity Area One: Strengthening the NDA MEFCC is tasked to lead the ultimate transition of Ethiopia into climate resilient and low carbon emission economic regime. As an NDA to the Green Climate Fund, MEFCC should have adequate human, system and organizational capacity to effectively accelerate engagement with the Fund. In the short-term, one international and one national resource persons (consultants) with extensive and relevant experiences will be hired and placed to closely work and capacitate the staff of GCF Focal unit within MEFCC. The international consultant will be hired for a period of six months while the national consultant will be hired for a period of 12 months. Both consultants will closely work with a dedicated team within MEFCC and provide intensive guidance and support on strategic priority areas for engagement with the Fund and multi-stakeholder engagement. The consultants are expected to transfer knowledge and skill to the staff of MEFCC through on-job trainings, day to day interactions and closer working relationships. After the termination of the engagement of the international consultant, the national consultant will continue to coach and guide the team for 6 months. In a nutshell, both consultants will be responsible for the following activities during their tenure with the NDA: Organizing and moderating 2 stakeholders information/consultation workshop to facilitate a shared understanding of the Fund, how it can be accessed and existing opportunities for the different sectors; Organizing international training event for the NDA staff; Organize 5 CRGE Facility Management Committee meetings to discuss issues related with GCF; Organize 2 CRGE Inter-ministerial Steering Committee meetings to discuss issues related GCF; Establishing the capacity to coordinate across stakeholders and facilitate effective consultation and communication by closely working with the key CRGE Sector Ministries and providing advice and technical support on GCF related matters, including proposal preparations, enhancing the understanding of sector ministries, private sector, non-state actors and other stakeholders about the Fund, its operational modalities, financial instruments, etc. on on-going basis through regular consultations, workshops, print materials, etc.; Establishing a system for reviewing proposals and issuing recommendations (no-objections), including by continuously mentoring and coach the team within MEFCC on fund related issues, specifically on how to coordinate and ensure multi-stakeholders engagement, as an NDA how to

11 PAGE 4 OF 24 fulfil its role and responsibilities related to dealing with national and international IEs, provide no objection on proposals; Other responsibilities as needed. In addition, the consultants are expected to: Develop a communications plan, and develop and support MEFCC to distribute communications materials, in close collaboration with the relevant Directorate within MEFCC. They are also expected to develop relevant communication materials in order to create and enhance public awareness of the GCF and how Ethiopia can maximize its benefit from the fund. This will include in close collaboration and support with MEFCC developing content for TV and radio programmes, social media, educational material for schools, and other material, building on existing platforms and programmes. The proposed budget for this component is approximately U130,715 ACTIVITY AREA 2 2 :COUNTRY PROGRAMMES B.1 List of national climate change policies and initiatives The country has been working on a number of green initiatives to mention the major ones: Ethiopia s Programme of Adaptation to Climate Change (EPACC)-Ethiopia s Programme of Adaptation on Climate Change (EPACC) updates and replaces Ethiopia s National Adaptation Programme of Action (NAPA), which was formulated in EPACC is a programme of action to build a climate resilient green economy through support for adaptation at the sectoral, regional, and community levels. It was initiated by the Government to update the NAPA with a more participatory approach at the grassroots level. For example, the programme will reach from the federal level down to the village level where local communities will be responsible for developing their own work programmes and by-laws to ensure climate resilience. The objective of EPACC is to contribute to the elimination of poverty and to lay the foundation for a climate resilient path towards sustainable development. In order to achieve this, the programme lays out 29 components. The Climate Resilient Green Economy Strategy (CRGE) - This document elaborates Ethiopia s vision of building a climate resilient and carbon neutral middle income economy by The strategy presents key actions for seven sectors of the economy that offer the highest greenhouse gas abatement potential: Power Supply; Buildings and Green Cities; Forestry (RD+); Agricultural/Soil-based Emissions; Livestock; Transport; and Industry. The identified initiatives have the potential to ensure that Ethiopia s 2030 greenhouse gas (GHG) emission levels do not exceed the 2010 level which is 150 million ton CO 2 e equivalent instead of 400 million ton CO 2 e under the BAU path. Intended Nationally Determined Contribution (INDC) -Ethiopia has prepared ad submitted its INDC to the UNFCCC secretariat. The INDC of Ethiopia is aligned with the national development plan and anchored in the CRGE vision and Strategy of the country. Ethiopia wishes to reduce its annual level of emission by 64% in 2030 compared to the business as usual level. To achieve this target, Ethiopia requires financial, technological and capacity support. The preparation of the GCF country programme will build on these existing documents and draw priority investments from them. B.2 List of other existing relevant country strategies The Integration of CRGE in to the Country s Mid-term Development Plan (GTP-II)-The National Planning Commission (NPC) of Ethiopia is responsible for the preparation of medium and long term development plan of the country. Currently it is coordinating the preparation of the second GTP or the 2 Please refer to Annex XVII Initial general guidelines for country programmes to B.08/11Revised programme of work on readiness and preparatory support, and the initial framework for country programming developed by the secretariat on a pilot basis for further guidance on the key elements to be elaborated in the inception report.

12 PAGE 5 OF 24 period The Ministry of Environment, Forest and Climate Change as a coordinating entity for the CRGE is working very closely with all economic sectors and the NPC in order to ensure full integration of the CRGE into GTP-II. In this regards, the former has developed CRGE integration guideline and checklist, which sectors should use. The Later has formally issued the guidelines and checklists for all public entities and ensure proper integration of CRGE into GTP-II. GTP II /CRGE mainstreaming guide line and corresponding check list: Alignment of CRGE with national development plan requires incorporating it into national as well as sectoral plans. In doing so, the Ministry of Environment, Forest and Climate Change (MEFCC) has prepared CRGE integration guidance into the GTP-II. The integration guideline, which was prepared by MEFCC and endorsed by the CRGE Inter-ministerial Steering Committee, aims to help sectors integrate climate issues into GTP-II so that CRGE will become an integral part of each sector s development objectives instead of sets of standalone initiatives. This means that during GTP-II period, the CRGE will not be a separate initiative; rather, it will be streamlined and become part of the core business of sectors and its units from federal to district levels. Through the integration process, sectors are expected to incorporate CRGE initiatives into their regular planning, budgeting, implementation, monitoring and reporting process. The National Planning Commission (NPC) had officially circulated the CRGE-GTP-II integration guideline prepared by MEFCC to all federal sector ministries and requested them to submit a GTP-II plan of their sector, which incorporates CRGE relevant targets and indicators. MEFCC and NPC are expected to ensure the integration of CRGE into GTP-II of each sector during their regular review and appraisal process. In its preamble, the checklist outlines a set of questions, covering a wide range of issues which need to be taken into account while preparing sectoral plans. In particular, it covers availability of human resources with the required skills, sources of finance for investment projects, stakeholder consultations, CRGE integration at implementation level, and environmental impact assessment. The checklist intends to provide directions to sector ministries focusing on greenhouse gas and vulnerability reduction actions, list of intervention areas and indicators. It also presents lead institutions responsible for sectoral plan-crge integration. The CRGE Environmental & Social Safeguard Framework- the Ministry of Environment, Forest and Climate Change in collaboration with the World Bank has developed a national CRGE Environmental and Social Safeguard Framework (ESSF), which governs the CRGE Facility investments. The ESSF of Ethiopia, which was validated by wider stakeholders and endorsed by the CRGE Facility Management Committee, is an international standard document that presents detailed processes and environmental and social safeguard tools and techniques. B.3 Stakeholder consultation on country programmes Ethiopia has a long term strategy to attain middle income status by 2025 and therefore the effective use of national and international sources of funding at its disposal is a critical focus. Ethiopia is unique in that it has embarked on a process to mainstream the concept of a green economy into its development path. Ethiopia s country systems are organized in bottom up manner in planning by which line Ministries engage with subnational governments down to district level. In addition partners, the private sector and civil society and academy are engaged and consulted regarding country plans and programs. Within this landscape, MOFEC with MEFCC would like to identify a number of potential priorities within the next 3 years in the context of the national development plans that the GCF could specifically support Ethiopia with. The process of identification would be based on Ethiopia s country systems in terms of stakeholder engagement at the national and subnational levels, also recognising that the Fund would require evidence of private sector and civil society engagement as well. They have responsibility for ensuring climate change, as a cross cutting issue, is adequately integrated in the planning, implementation and monitoring across all sectors. The MEFCC will lead the consultation process for the preparation of the GCF country programme. Other ministries will be included in the consultation process as well. B.4 Detailed plan for development of country programme

13 PAGE 6 OF 24 Activity 2: Strategic Engagement Framework with the Fund Ethiopia is one of the pioneer countries to officially declare a vision and strategy to build a climate resilient and carbon neutral economy. Through the CRGE strategy, Ethiopia aims to build a carbon neutral middle income economy by Recently, Ethiopia has submitted its ambitious INDC to the UNFCCC, which aims to achieve 64% GHG emission reduction by The government of Ethiopia is also working for economic wide integration of climate change mitigation issues in the national mid-term development plan, which is called GTP-II. Climate change mitigation and adaption has become one of the key pillars of GTP-II. The integration of CRGE into the second Growth and Transformation plan (GTP-II) of Ethiopia is undergoing well. The National Planning Commission, which is leading the preparation of GTP-II, has received detailed GTP-II plans from each sectors ministry and other public institutions. Sectors have referred to the CRGE Integration Guideline and Checklists, which was prepared by the NDA and communicated by the NPC during preparation of their GTP-II plans. Currently the draft GTP-II document is under public consultation and will be finalized around mid-october 2015 and will be available for public right after. The GCF country program preparation, which MEFCC is leading, will mainly emanate from GTP-II. Other national climate change response initiatives will be consulted and used as input for the GCF country program. The GCF country program will be finalized around mid-june In the due course, support will be provided to executing entities to design bankable proposals, which will be submitted to GCF and other development partners for funding. The government is playing a lead role in ensuring that all major international sources of public finance are deployed in a manner that supports these strategies and plans without overlap or duplication. The readiness support program will be deployed wisely to enhance the strategic engagement Ethiopia with the GCF. The major activities in this regard are: Strengthening existing initiatives or support development of new systems, procedures, guidelines, etc. as appropriate in the areas of private sector engagement, Measurement, Reporting and Verification (MRV), monitoring and evaluation, etc. consistent with the fund s standards and requirements. Organizing and facilitating multi-stakeholders engagement workshops and development of a country program. With the Team in MEFCC and relevant stakeholders, they will make sure that the country program will be consistent with the Ethiopian CRGE Strategy, GTP-II, as well as the Fund s initial results management framework. They will also help the NDA and the NIE in identifying opportunities to engage the private sector, including micro, small and medium-sized enterprises, and leverage their capacity to implement Ethiopia s programming priorities. Recruiting one national consultant for six months period (but disbursed over the life of the readiness project) who will facilitate the multi-stakeholders events including logistics, as well as compiles workshop reports. The national consultant will support the NDA on facilitating stakeholder engagement and other events. He/she will spend a total of 30 days on in-country missions. Recruiting three international short term consultants for a period of two months to closely work with the potential NIEs, key CRGE sector ministries, other stakeholders and support formulation of high quality investment programs, which will be submitted for GCF funding. The consultants will closely work with team of experts in each sector ministry and help them understand the requirements of the fund s proposal preparation template, identify program/project concepts consistent with the sector priorities and the fund s investment framework, investment criteria, advice the potential NIEs and executing entities (EEs) on what should be submitted for grant and what should be submitted for other funding instruments of the Fund. They also support sectors (i.e. EEs) to undertake economic and financial analysis of the projects and undertake social and environmental assessment. Mostly, they can work remotely but they will spend at least 15 working days in-country and physically meet with the stakeholders. Conduct a training session for potential NIEs on GCF accreditation application process and requirements. Engaging with implementing entities and executing entities on projects development to be submitted to the GCF. The proposed budget for this readiness area is approximately U169,285

14 PAGE 7 OF 24 C: LOGICAL FRAMEWORK C.1 Detailed log-frame with implementation schedule Please provide detailed log frame including activity level. See Annex I. D: CONSULTANTS AND EXPERT SUPPORT D.1 Consultants The consultants to be hired and seconded to different sectors will have the following general roles and responsibilities: Building the knowledge and capacity of the GCF focal unit within MEFCC; Support MEFCC in coordinating with other ministries on GCF-related matters; Together with MEFCC, drafting the country programme; Support MEFCC/NDA in providing technical support for executing entities in the formulation of bankable proposals; Together with MEFCC, liaising with other ministries, including on consultations related to the development of a country programme; Support MEFCC to organize multi-sector engagement workshops and trainings, Support MEFCC to organize international training for core staff. The consultants will closely work with the NDA, the NIE and other stakeholders. They will report to the readiness project coordinating team in MEFCC on regular basis. Those who are assigned to support sector ministries will report to the focal persons within each ministry on day-to-day basis. D.2 Procurement plan Please describe the different procurement packages and method of procurement used for each using the attached template. See annex III E: BUDGET E.1 Budget Please provide detailed budget using the attached template. The detailed budget has been provided in the attached excel template. During the detailed budget preparation, attempt has been made to make realistic budget estimates for the different activities. As a result of this, the total budget for some activity category doesn t exactly tally with the budget in the grant agreement. Such differences in some cases exceed 10%. Estimates in the inception report are closer to the reality and hence are more accurate to accomplish the planned activities and achieve the intended results of the readiness support program. Category Outcome 1 Outcome 2 Total (U) Consultants cost 72,000 90, ,000 Travel 24,035 15,685 39,720 Workshop 21,700 46,600 68,300 Other operating Cost 5,500 9,500 15,000 Contingency 7,480 7,500 14,980 Grand Total 130, , ,000

15 PAGE 8 OF 24 Annex I: Logical framework and implementation schedule OUTCOMES PROJECT SUMMARY INDICATORS BASELINES 1. NDA capacity to undertake Fundrelated responsibilities and engage national stakeholders strengthened 1.1 Capacity to coordinate across stakeholders and facilitate effective consultation and communication 1.2 Knowledge on climate and finance priorities strengthened 1.3 System for reviewing proposals and issuing recommendations (or noobjections) established 1.4 Capacity and systems to monitor, evaluate and report on the activities of the Fund and other relevant finance mechanisms and institutions established 1.1 MEFCC has adequate capacity but requires additional support for its effective operationalization and engagement with the GCF 1.2 MEFCC co-chairs the management committee of the CRGE Facility, which is a national climate fund established under MOFEC to mobilize climate finance from various sources. The GCF readiness work will further improve knowledge and awareness on climate finance among stakeholders. 1.3 The engagement of MEFCC in the CRGE Facility Management and technical Committee as well as the Facility Secretariat has enabled it to actively take part in the review and appraisal of proposals using standard appraisal and review templates of the Facility. A GCF no-objections system will be put in place on this basis. 1.4 The MEFCC organization structure is in place and provides a wide range of systems to monitor and evaluate including the reporting, lesson learning and knowledge management systems. The existence of the CRGE Facility Monitoring and Evaluation Framework as well active participation on the M&E missions of Facility financed projects has enabled MEFCC to acquire practical experience in monitoring and evaluation. Additional staffing capacity will respond to increasing needs. 1.5 Information, including in local languages, on procedures of the Fund to disseminated to country stakeholders 1.5 GCF Handbook is prepared and disseminated to relevant stakeholders. MEFCC also periodically prepares newsletters and reports in Federal Government working language.

16 PAGE 9 OF Strategic framework for engagement with the Fund developed 2.1 Engagement of private sector, civil society, government and local government stakeholders on priorities for engagement with the fund 2.2 Priorities for project and concepts to be developed for accessing the fund 2.3 Country programming document developed and published in adherence with the initial guidance from the Fund 2.4 NIE applied for accreditation for direct access 2.1 MEFCC is responsible for technical coordination of climate change related actions in Ethiopia. Due to this mandate, it engages with state and non-state actors at federal, regional and local levels. In spite of this, the participation of private sector on climate change mitigation and adaptation related actions are relatively low. GCF readiness activities will allow strengthening the involvement of all stakeholders in defining priorities for engagement with the fund. 2.2 Ethiopia has prepared a Climate Resilient Green Economy Strategy (CRGE), which is integrated to the Country s mid-term development plan (GTPII). Through the strategic framework for engagement, a GCF country programme will be prepared with priority investment opportunities, taking into account existing national priorities 2.3 A GCF country programme document will be developed and published in order to further mobilise climate finance and attract new investors for climatesmart development in Ethiopia Interested national implementing entities applied for accreditation with the Fund

17 PAGE 10 OF 24 OUTPUTS 1.1 A process for supporting coordination across stakeholders and facilitating engagement (including periodic meetings / workshops) 1.2 Annual report on activities of the Fund and other relevant funding mechanisms and institutions in the country 1.3 Information materials on the operational procedures of the Fund in local languages (where relevant) and distribution lists of recipients Write up of the coordination process, and convening schedule Meeting minutes and participant lists documenting engagement of at least 4 groups Electronic copy of the annual report, and details of public dissemination channels There is an existing system of coordination on which the GCF coordination process will build Management meeting minutes and participant lists are documented both in soft and hard copies. All dedicated GCF consultations meetings and workshops will be documented with minutes and participants lists There is an existing system of periodic reporting and production of electronic annual reports; GCF readiness activities will be reported annually and information disseminated through using existing communication channels Links to electronic copies of presentations, information materials, and climate and development information disseminated to distribution lists where relevant MEFCC has developed a CRGE Registry, where information related with the CRGE including reports, will be posted. This web-based system is open to all. The registry is under further development and will be used to share all information related with the fund. 2.1 Country programme, including elements provided in the Fund s Initial Guidelines for Country Programmes 2.2 Summaries of meetings of multistakeholder engagement, including list of participants At least 5 information materials on the fund developed and disseminated to at least 1500 people Copy of country programme, completed using the initial guidance on country programmes prepared by the GCF secretariat Background documentation on the programme, and links to public dissemination channels The GCF handbook has been distributed to key stakeholders already. Similar materials on the outcomes of the board decisions as well as information from the secretariat of the fund will be compiled and disseminated in the future There is no GCF country programme at this time. At the end of the project, Ethiopia expects to have a GCF country programme to be presented to the GCF A GCF Handbook, which outlines the main requirements, processes and

18 PAGE 11 OF 24 frameworks developed by the fund has been prepared and disseminated. The handbook is intended to help stakeholders in formulation of proposals Agendas and summaries from workshops convened as part of the country programme process Short note on lessons learned from country programming, and good practices in stakeholder engagement Agendas and summaries from workshops are made public including both for national and international events. The same will be done for GCF workshops MEFCC and MOFEC have jointly conducted lessons learning study for CRGE Facility financed fast-track projects and have prepared comprehensive report, which was disseminated to stakeholders. The same will be done for the GCF country programme process with notes on lessons learnt being generated and shared.

19 PAGE 12 OF 24 Annex 2. Implementation Schedule Activity Areas Outcomes Outputs Activities Implementation Schedule Year One Year Two Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Strengthening the Capacity of NDA Recruit two consultants to support NDA and strategic framework activities Outcome One: NDA s capacity to undertake Fund-related responsibilities and engage national stakeholders strengthened 1.1 A process for supporting coordination across stakeholders and facilitating engagement (including periodic meetings / workshops) defined and operationalized 1.2 The results of the GCF readiness support properly documented and disseminated - Annual report on activities of the Fund and other relevant funding mechanisms 1.3 Information materials on the operational procedures of the Fund in local languages (where relevant) prepared and distributed Identify and map key stakeholders for multistakeholder meetings Write up of the coordination process, and convening schedule Organizing and moderating 2 stakeholders information/consultation workshops to facilitate a shared understanding of the fund, how it can be accessed and existing opportunities for the different sectors Organizing an international training event for the Core staff of the NDA Establishing the capacity to coordinate across stakeholders and facilitate effective consultation and communication by closely working with the key CRGE Sector Ministries and provide advice and technical support on GCF related matter including proposal preparations, enhancing the understanding of sector ministries, private sector, non-state actors and other stakeholders about the Fund, its operational modalities, financial instruments, etc. Organize 2 CRGE Inter-ministerial Steering Committee meetings Establish a system for reviewing proposals and issuing recommendations (no-objections), Prepare periodic reports on the activities supported by the GCF and disseminate using all channels Designing and leading the strategic planning & coordination process, including liaising with relevant government agencies Develop a communications plan, and develop and distribute communications materials

20 PAGE 13 OF 24 Activity Areas Outcomes Outputs Activities Implementation Schedule Year One Year Two Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Summarize relevant materials from the GCF website including board decision papers, GCF operational rules, procedures, policies, operational modalities, etc. and avail to users using different mechanisms including the CRGE Registry and other means Strategic engagement with the Fund Outcome Two: Strategic framework for engagement with the Fund developed 2.1 Country programme, including elements provided in the Fund s Initial Guidelines for Country Programmes 2.2 Strategic engagement with the fund boosted through dissemination of documentation such as summaries of meetings of multistakeholder engagement, including list of participants Recruit one national and three international consultants Organize a meeting of key stakeholders to identify a national coordination team to guide GCF engagements, especially for designing the country programme Organizing 2 multi-sector engagement workshops, where different stakeholders including the private sector, non-state actors, academia will be represented. Identify opportunities to engage the private sector, including micro, small and mediumsized enterprises, and leverage their capacity to implement Ethiopia s programming priorities. Prepare the country program using initial guidance on country program development, which was prepared by the GCF secretariat Collect all background documents necessary to prepare the GCF country programme and make them available through various communication channels Support identification and preparation of proposals consistent with the funds initial investment framework and other requirements of the fund Organize training session for stakeholders on GCF accreditation process and requirements and to select potential NIEs. Develop workshop reports for the country programme workshop, summarising main messages/ conclusions and next steps.

21 PAGE 14 OF 24 Activity Areas Outcomes Outputs Activities Implementation Schedule Year One Year Two Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Disseminate all agendas and summaries from workshops convened as part of the country programme process. Prepare and disseminate short notes on lessons learned from country programming, and good practices on stakeholder s engagement. = Start Date = End Date

22 PAGE 15 OF 24 ANNEX III PROCUREMENT PLAN The procurement plan will cover the implementation period. The implementing entity shall update the procurement plan throughout the duration of the project at least annually by including contracts previously awarded. All procurement plans, their updates or modifications shall be published on the website of the implementing entity. General Information Project Name: : Readiness and Preparatory Support Programme Country: Ethiopia Grant Amount: U 300,000 Date of First Procurement Plan Executing Agency: Ministry of Environment, Forest and Climate Change (MEFCC) Grant Agreement Number: ETH-RS-001 Date of updated Procurement Plan A. Process Thresholds, Review - Month Procurement Plan 1. Project Procurement Thresholds The following national process thresholds shall apply to procurement of goods and works Procurement of Goods and Works Method Threshold National Competitive Bidding for works Below 50,000,000 ETB National Competitive Bidding for goods Below 10,000,000 ETB National Competitive Bidding for consultancy services Below 2,500,000 ETB International Competitive Bidding works Above 50,000,000 ETB International Competitive Bidding goods Above 10,000,000 ETB International Competitive Bidding for consultancy services Above 2,500,000 ETB Restricted Tendering for works Below 2,000,000 ETB Restricted Tendering for goods Below 500,000 ETB Restricted Tendering for consultancy services Below 300,000 ETB Request for Proposal (RFP) Above 300,000 ETB Request for Quotation for works Below 250,000 ETB Request for Quotation for goods Below 100,000 ETB Request for Quotation for consultancy services Below 60,000 ETB 2. National Prior or Post Review The following national prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project. Procurement Method Prior or Post Comments Procurement of Goods and Works National Competitive Bidding Post International Competitive Bidding Post Restricted Tendering Post Request for Proposal (RFP) Post Direct Payment Post Request for Quotation Post Recruitment of Consulting Firms International consultant services (QCBS, CBS, FBS, LCS) post National consultant services (QCBS, CBS,FBS,LCS) post Recruitment of Individual Consultants Individual consultant services post 15

23 PAGE 16 OF Goods and Works Contracts Estimated ( U 76,980) The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 12 months. General Description Office supplies and printing materials Provision workshop/meeting material Provision of transport services/refunds Provision of hotel services for workshops and meetings of stakeholders including refreshment and hall rent International training for NDA staff Provision of accommodation Contract Procurement Value Method 11,000 Request for Quotation for goods 1,200 Request for Quotation for services 24,880 Request for Quotation for services 6,800 Request for Quotation for services 15,100 Request for Quotation for services 18,000 Request for Quotation for services Prequalification Advertisement of Bidders (y/n) Date (quarter/year) N 14/11/2015/ IV 2015 N 01/01/2016/ I/2016 N 01/01/2016/ I/2016 N 01/01/2016/ I/2016 N 01/04/2016/ II/2016 N 15/11/2015 IV/2015 Comments 4. Consulting Services Contracts Estimated ( U 166,000) The following table lists consulting services contracts for which procurement activity is either on-going or expected to commence within the next 12 months. Contract Value Recruitment Method 1 Advertisement Date (quarter/year) U 126,000 QCBS 15/11/2015 IV/2015 General Description Hiring international consultants to support NDA activities and sectors (4) Hiring National Consultants (2) Audit 4,000 Request for Quotation for services U 36,000 QCBS 15/11/2015 IV/2015 International or National Assignment International National N 30/09/2016/ III/2016 Comments To be advertised To be advertised 1 QCBS 16

24 PAGE 17 OF 24 ANNEX IV TOR OF CONSULTANTS TITLE TYPE CONTRACT: OF Terms of Reference for 1 international and 1 national consultants to strengthen the Green Climate Fund (GCF) National Designated Authority (NDA) 1 INTERNATIONAL & 1 NATIONAL CONSULTANTS Tender N o DATE OF ISSUE Background and context Ethiopia is one of the fast growing countries in the world. Forecast by IMF and other credible international institutions confirms that Ethiopia will continue to register fast economic growth in the years to come. In spite of these great achievements for over a period one decade, Ethiopia is highly vulnerable to the adverse effects of climate change. Most of the sectors, which have contributed to country s economic growth, are highly susceptible to climate change impacts. According to some estimates, Ethiopia will lose up to 10% of its GDP per annum by 2050 under the business as usual path. In order for Ethiopia to ensure the continuity of its economic growth, it must deal with the climate change. In this respect, the government of Ethiopia has developed a Climate Resilient Green Economy (CRGE) Strategy which was adopted by the parliament to ensure that Ethiopia s economic growth is climate resilient and low carbon development and increasingly meets green economic growth. Ethiopia s Climate Resilience Green Economy strategy aims to contribute to the country attaining middle-income status and a zero carbon growth economy by The government of Ethiopia (GoE) is currently working to fully integrate CRGE into the second GTP (GTP II) providing an opportunity to explore climate compatible development. Realizing this vision among other things require political commitment, technical and technological capacity and finance. The government of Ethiopia is expected to invest over 7.5 billion U per annum for over 20 consecutive years. This funding has to be mobilized both from domestic and international sources including the Green Climate Fund (GCF). Presently, the GCF provides ample financing opportunities and Ethiopia s meaningful and strategic engagement with the Fund is critical in order to reinforce its green growth and climate resilient objectives. In the past few years, Ethiopia has shown great leadership in getting ready to combat climate change, mobilize and manage international climate finance. Among the responses has been the reformation of the Environmental Protection of Authority (EPA) into a Ministry of Environment and Forest (MEFCC), which is currently the National Designated Authority (NDA) to the GCF. MEFCC is also tasked to lead the ultimate transition of Ethiopia into climate resilient and low carbon emission economic regime. The establishment of the CRGE Facility under the Ministry of Finance and Economic Cooperation (MOFEC) is also another important milestone in the transition to building low emission and climate resilient middle income economy. Under MOFEC, the CRGE Facility is mobilizing and managing climate finance from various sources and leveraging investment for climate change mitigation and adaptation. Currently MOFEC is seeking direct access 17

25 PAGE 18 OF 24 accreditation to the Green Climate Fund. The review and appraisal of MOFEC s accreditation has advanced well and is waiting the approval of the GCF board during its 11 th Meeting in November These two institutions MEFCC and MOFEC - are at the forefront of the engagement with GCF; they are looking to enhance systems that support the NDA but also the national stakeholders at large to set frameworks which allow to strengthen the capacity of the NDA and other lead players in the sector to play a big role in attracting and managing more climate finance. In mid-2015, the GoE has signed a grant agreement with the GCF Secretariat to benefit from readiness funding. The GCF readiness grant program will enhance country ownership and climate finance access during the early stages of the operationalization of the Green Climate Fund in Ethiopia. In particular, it aims to develop the capacity of the National Designated Authority to engage with regional, national & sub national governments, civil society and private sector stakeholders with regard to the priorities of the Fund, taking a gender sensitive approach. Furthermore, it aims to develop a strategic framework for national engagement with the Fund, as well as a country programme, building on existing strategies & plans. The implementation of the two components of the readiness programme is projected to generate national interest in the GCF opportunities and to strengthen Ethiopia s access to climate finance through the preparation of the country programme. 2. The Objectives & Expected Results The overall objective of this assignment is to enhance the capacity of the Ministry of Environment and Forest (MEFCC), to perform its new role as GCF National Designated Authority (NDA) in line with GCF standards. This technical assistance will help the NDA to strengthen its capacity to lead and coordinate development of bankable projects and formulation of a national strategic engagement framework with the GCF. It will also enable MEFCC to effectively communicate with implementing and executing entities and deliver its roles and responsibilities related with the GCF. Beyond the strengthening of the NDA capacity, the assignment will allow to build the capacity of governmentand non-government stakeholders on climate finance and climate smart development, and thereby boost the engagement of all stakeholders with the GCF. In order to better understand the expected outcomes of this assignment, please refer to the logical framework in Annex Scope of the Consultancy As an NDA to the Green Climate Fund, MEFCC should have adequate human, system and organizational capacity to effectively accelerate engagement with the Fund. Therefore, one international and one national consultants will be hired to closely work and capacitate the staff of the NDA within MEFCC. The international consultant will be hired for a period of six months while the national consultant will be hired for a period of 12 months. The NDA capacity strengthening sub-component of the readiness support will help MEFCC to carry out its functions in an effective and timely manner by boosting its staff capacity, raising awareness of the opportunities the GCF presents for Ethiopia, and ensuring effective engagement and broad buy-in of relevant stakeholders. The consultants will closely work with responsible units within MEFCC and other stakeholders such as the Ministry of Finance and Economic Cooperation (MOFEC), the CRGE Facility Management Committee, the CRGE Facility Advisory Board and other non-state actors. The consultants will closely work with a dedicated team within MEFCC and provide intensive guidance and support on strategic priority areas for engagement with the Fund and multi-stakeholder engagement. The consultants are expected to transfer knowledge and skill to the staff of MEFCC through on-job trainings, day to day interactions and closer working 18

26 PAGE 19 OF 24 relationships. After the termination of the engagement of the international consultant, the national consultant will continue to coach and guide the team for 6 more months. The consultants (International & National) will need to review the broad literature and consult with a wide range of stakeholders in order to engage meaningfully with the GCF and fulfil the needs of the recipient and allows this initiative to proceed to implementation. 4. Key Tasks of the Consultants The national and international consultants are expected to jointly undertake the following key activities, in coordination with the NDA staff: Review all documentation provided by GoE in relation to the assignment; Identify and map key stakeholders for multi-stakeholder meetings; Organize and moderate 2 stakeholders information/consultation workshop to facilitate a shared understanding of the Fund, how it can be accessed and existing opportunities for the different sectors also document the meetings by sharing minutes and participants lists with relevant stakeholders, as well as meetings supporting documents; Support the organization of 5 CRGE Facility Management Committee meetings; Support the organization of 2 CRGE Inter-ministerial Steering Committee meetings; Closely work with the key CRGE Sector Ministries and provide advice and technical support on GCF related matters including proposal preparations, enhancing the understanding of sector ministries, private sector, non-state actors and other stakeholders about the Fund, its operational modalities, financial instruments, etc. on on-going basis through regular consultations, workshops, print materials, etc.; Continuously mentor and coach the team within MEFCC on Fund related issues, specifically on how to coordinate and ensure multi-stakeholders engagement, as an NDA how to fulfil its role and responsibilities related to dealing with national and international IEs, provide no objection on proposals; Develop a communications plan, and develop and support MEFCC to distribute communications materials, in close collaboration with the relevant Directorate within MEFCC. Also develop relevant communication materials in order to create and enhance public awareness of the GCF and how Ethiopia can maximize its benefit from the Fund. This includes developing content for TV and radio programmes, social media, educational material for schools, and other material, building on existing platforms and programmes. Conduct a training session for potential NIEs on GCF accreditation application process and requirements. Organize regional / international experience exchange and lesson sharing events as requested. Support the NDA in preparing periodic reports on the activities supported by the GCF and disseminating using all channels. Support the NDA in summarizing relevant materials from the GCF website including board decision papers, GCF operational rules, procedures, policies, operational modalities, etc. and availing to users using different mechanisms including the CRGE Registry and other means. In order to better understand the timeline and expected activities to be carried out during this assignment, please refer to the implementation schedule in Annex Deliverables Within one week of contract, the 2 consultants will jointly present a detailed plan (maximum 5 pages) in a technical inception report outlining the proposed approach and draft work plan including the proposed consultation schedule. The contract duration for the International consultant is 6 months spread out over a period of 12 months, while the National consultant will be contracted for duration of 12 months. The division 19

27 PAGE 20 OF 24 of responsibilities and tasks between both consultants will be clarified in the technical inception report in agreement with the NDA team. The consultants will be expected to provide weekly notes and monthly progress reports to the NDA, and quarterly reports to the management committee of the CRGE Facility that they will help set in place. A midterm report will be expected at the 6 th month of their contracts and a final report with recommendations the future engagements of Ethiopia with GCF. The NDA will provide the following documents to the consultants before starting the assignment: GCF project inception report; GTP-II document; CRGE strategy document; CRGE Facility operational manual and M&E framework; CRGE Environmental and Social Safeguard Framework; Other climate change related documents as need be. 6. Qualifications & Experience The national and international consultants will have at least a Master s degree in Climate Change/Environment/Natural Resources related field but will also consider Development studies/economics with relevant climate change experience; Over 7 years of experience (for both IC and NC) in relevant field in developing countries and demonstrated ability to coordinate and drive communications with the Fund and manage operational activities with all relevant stakeholders; Expertise and experience in mobilizing climate finance; Familiarity with mitigation and adaptation policies and interventions, especially in Ethiopia; Ability to monitor and evaluate funded programmes in accordance with relevant guidelines; Previous experience with other relevant multilateral, bilateral, regional and global funding mechanisms and institutions working in the country is a plus; Experience/demonstrated ability in developing and leading a consultation process in the context of climate change/finance; Strong analytical, writing and presentation skills in English; Ability to prepare, moderate and report on national stakeholder workshops. 7. Application procedure To apply, please submit your expression of interest and all relevant documents such as; your updated Curriculum Vitae (CV), copies of academic certificates, previous work done/references related to this assignment through Please note that applications will only be accepted if they have been submitted through the web by established deadline ( time stamp will be used for determining applications that were submitted by the deadline). The deadline is

28 PAGE 21 OF 24 TITLE TYPE CONTRACT: OF Terms of Reference for 1 national and 3 international consultants to support the National Designated Authority (NDA) in preparing a country programme for engagement with the Green Climate Fund (GCF) 3 INTERNATIONAL & 1 NATIONAL CONSULTANTS Tender N o DATE OF ISSUE Background and context Ethiopia is one of the fast growing countries in the world. Forecast by IMF and other credible international institutions confirms that Ethiopia will continue to register fast economic growth in the years to come. In spite of these great achievements for over a period one decade, Ethiopia is highly vulnerable to the adverse effects of climate change. Most of the sectors, which have contributed to country s economic growth, are highly susceptible to climate change impacts. According to some estimates, Ethiopia will lose up to 10% of its GDP per annum by 2050 under the business as usual path. In order for Ethiopia to ensure the continuity of its economic growth, it must deal with the climate change. In this respect, the government of Ethiopia has developed a Climate Resilient Green Economy (CRGE) Strategy which was adopted by the parliament to ensure that Ethiopia s economic growth is climate resilient and low carbon development and increasingly meets green economic growth. Ethiopia s Climate Resilience Green Economy strategy aims to contribute to the country attaining middle-income status and a zero carbon growth economy by The government of Ethiopia (GoE) is currently working to fully integrate CRGE into the second GTP (GTP II) providing an opportunity to explore climate compatible development. Realizing this vision among other things require political commitment, technical and technological capacity and finance. The government of Ethiopia is expected to invest over 7.5 billion U per annum for over 20 consecutive years. This funding has to be mobilized both from domestic and international sources including the Green Climate Fund (GCF). Presently, the GCF provides ample financing opportunities and Ethiopia s meaningful and strategic engagement with the Fund is critical in order to reinforce its green growth and climate resilient objectives. In the past few years, Ethiopia has shown great leadership in getting ready to combat climate change, mobilize and manage international climate finance. Among the responses has been the reformation of the Environmental Protection of Authority (EPA) into a Ministry of Environment and Forest (MEFCC), which is currently the National Designated Authority (NDA) to the GCF. MEFCC is also tasked to lead the ultimate transition of Ethiopia into climate resilient and low carbon emission economic regime. The establishment of the CRGE Facility under the Ministry of Finance and Economic Cooperation (MOFEC) is also another important milestone in the transition to building low emission and climate resilient middle income economy. Under MOFEC, the CRGE Facility is mobilizing and managing climate finance from various sources and leveraging investment for climate change mitigation and adaptation. Currently MOFEC is seeking direct access accreditation to the Green Climate Fund. The review and appraisal of MOFEC s accreditation has advanced well and is waiting the approval of the GCF board during its 11 th Meeting in November

29 PAGE 22 OF 24 In mid-2015, the GoE has signed a grant agreement with the GCF Secretariat to benefit from readiness funding. The GCF readiness grant program will enhance country ownership and climate finance access during the early stages of the operationalization of the Green Climate Fund in Ethiopia. In particular, it aims to develop the capacity of the National Designated Authority to engage with regional, national & sub national governments, civil society and private sector stakeholders with regard to the priorities of the Fund, taking a gender sensitive approach. Furthermore, it aims to develop a strategic framework for national engagement with the Fund, as well as a country programme, building on existing strategies & plans. The implementation of the two components of the readiness programme is projected to generate national interest in the GCF opportunities and to strengthen Ethiopia s access to climate finance through the preparation of the country programme. 2. The Objectives & Expected Results The overall objective of this assignment is to support the Ministry of Environment and Forest (MEFCC), as GCF National Designated Authority (NDA), in preparing a country programme for engaging with the GCF. This technical assistance will enable Ethiopia to develop a strategic investment framework also called country programme - and develop a pipeline of projects for accessing the Green Climate Fund in the short, medium and longer terms. In order to better understand the expected outcomes of this assignment, please refer to the logical framework in Annex Scope of the Consultancy Ethiopia is one of the pioneer countries to officially declare a vision and strategy to build a climate resilient and carbon neutral economy. Through the CRGE strategy, Ethiopia aims to build a carbon neutral middle income economy by Recently, Ethiopia has submitted its ambitious INDC to the UNFCCC, which aims to achieve 64% GHG emission reduction by The government of Ethiopia is also working for economic wide integration of climate change mitigation issues in the national mid-term development plan, which is called GTP-II. Climate change mitigation and adaption has become one of the key pillars of GTP-II. The integration of CRGE into the second Growth and Transformation plan (GTP-II) of Ethiopia is undergoing well. The National Planning Commission, which is leading the preparation of GTP-II, has received detailed GTP-II plans from each sectors ministry and other public institutions. Sectors have referred to the CRGE Integration Guideline and Checklists, which was prepared by the NDA and communicated by the NPC during preparation of their GTP- II plans. Currently the draft GTP-II document is under public consultation and will be finalized around mid- October 2015 and will be available for public right after. The GCF country programme preparation, which MEFCC is leading, will mainly emanate from GTP-II. Other national climate change response initiatives will be consulted and used as input for the GCF country programme. The GCF country programme should be finalized around mid-june Support will be provided to executing entities to design bankable proposals, which will be submitted to GCF and other development partners for funding. The NDA will recruit one national consultant for duration of six months, as well as three international consultants for duration of two months each, spread out over a period of 6-12 months. The national consultant will support the consultation process which will allow elaborating the country programme, while the international consultants will focus on supporting key national stakeholders in writing the country programme, designing investment programs and pipeline of projects to be submitted to the GCF. 22

30 PAGE 23 OF 24 The consultants will need to review the broad literature and consult with a wide range of stakeholders in order to engage meaningfully with the GCF and fulfil the needs of the recipient and allows this initiative to proceed to implementation. 4. Key Tasks of the Consultants The national and international consultants are expected to jointly undertake the following key activities, in coordination with the NDA staff: Review all documentation provided by GoE in relation to the assignment; Collect all background documents necessary to prepare the GCF country programme and make them available through various communication channels; Organize a meeting of key stakeholders to identify a national coordination team to guide GCF engagements, especially for designing the country programme; Organize and facilitate multi-stakeholders engagement forums for developing the country programme. With the Team in MEFCC and relevant stakeholders, consultants will make sure that the country programme will be consistent with the Ethiopian CRGE Strategy, GTP-II, as well as the Fund s initial results management framework. They will also help the NDA and the NIE in identifying opportunities to engage the private sector, including micro, small and medium-sized enterprises, and leverage their capacity to implement Ethiopia s programming priorities. Facilitate the multi-stakeholders events including for logistics, as well as compiles workshops reports and disseminate workshops documents to all stakeholders. Support the integration and mainstreaming of the CRGE strategy visions and initiatives into national and sectoral development plans of Ethiopia for the period Closely work with the NIE, key CRGE sector ministries, other stakeholders and support formulation of high quality investment programs, which will be submitted for GCF funding. The consultants will closely work with team of experts in each sector ministry and help them understand the requirements of the fund s proposal preparation template, identify program/project concepts consistent with the sector priorities and the fund s investment framework, investment criteria, advice the NIE and the EEs on what should be submitted for grant and what should be submitted for other funding instruments of the Fund. They also support sectors (i.e. EEs) to undertake economic and financial analysis of the projects and undertake social and environmental assessment. Support the identification and preparation of proposals consistent with the funds initial investment framework and other requirements of the fund. At the end of the country programming process, prepare notes on lessons learned from the process. In order to better understand the timeline and expected activities to be carried out during this assignment, please refer to the implementation schedule in Annex 2. Note: The GCF secretariat has provided Guidelines to help beneficiary countries design their GCF country programme. The consultants will review the Guidelines and use them as a methodological basis for preparing the country programme. 5. Deliverables Within one week of contract, the 4 consultants will jointly present a detailed plan (maximum 5 pages) in a technical inception report outlining the proposed approach and draft work plan - including the proposed 23

31 PAGE 24 OF 24 methodology for preparing the country programme. The contract duration for the International consultants is 2 months spread out over a period of 6 months, while the National consultant will be contracted for duration of 6 months spread out over a period of 12 months The division of responsibilities and tasks between the four consultants will be clarified in the technical inception report in agreement with the NDA team. The consultants will be expected to provide monthly progress reports to the NDA. A mid-term report will be expected at the end of the first year. The NDA will provide the following documents to the consultants before starting the assignment: GCF project inception report; GTP-II document; CRGE strategy document; CRGE Facility operational manual and M&E framework; CRGE Environmental and Social Safeguard Framework; Other climate change related documents as need be. 6. Qualifications & Experience The national and international consultants will have at least a Master s degree in Climate Change/Environment/Natural Resources/agriculture/energy/forestry/urban development/transport /industry and related field but will also consider Development studies/economics with relevant climate change experience; Over 7 years of experience (for both IC and NC) in relevant field in developing countries and demonstrated ability to coordinate and drive communications with the Fund and manage operational activities with all relevant stakeholders; Expertise and experience in mobilizing climate finance; Familiarity with mitigation and adaptation policies and interventions, especially in Ethiopia; Ability to monitor and evaluate funded programmes in accordance with relevant guidelines; Previous experience with other relevant multilateral, bilateral, regional and global funding mechanisms and institutions working in the country is a plus; Experience/demonstrated ability in developing and leading a consultation process in the context of climate change/finance; Strong analytical, writing and presentation skills in English; Ability to prepare, moderate and report on national stakeholder workshops. 7. Application procedure To apply, please submit your expression of interest and all relevant documents such as; your updated Curriculum Vitae (CV), copies of academic certificates, previous work done/references related to this assignment through Please note that applications will only be accepted if they have been submitted through the web by established deadline ( time stamp will be used for determining applications that were submitted by the deadline). The deadline is