with UNDP for the Democratic Republic of Timor-Leste 26 May 2016 NDA Strengthening & Country Programming

Transcription

1 with UNDP for the Democratic Republic of Timor-Leste 26 May 2016 NDA Strengthening & Country Programming

2 PAGE 1 OF 15 (Please submit completed form to countries@gcfund.org) Executive Summary(in one page) Country (or region) Timor-Leste Submission Date 29/04/2016 NDA or Focal Point Contact Point (both NDA/FP and delivery partner) National Directorate for International Environment Affairs Focal Point: Name of contact person: Mario Ximenes Position: National Director for Climate Change ximenesmario@yahoo.com Tel: Full Office address: National Directorate for Climate Change, Ministry of Commerce, Industry and Environment Edificio do Fomento, Rua Dom Aleixo Corte Real, Mandarin, Dili, Timor-Leste Delivery Partner: Name of Institution: UNDP Timor-Leste Name of contact person:jose Belo Position: Assistant Country Director (Programme), UNDP Timor-Leste jose.belo@undp.org Tel: , Ext 2097 Full Office address: UNDP Timor-Leste, UN House, Caicoli Street (Obrigado Barracks), P.O. Box 008 Dili, Timor-Leste Readiness Area/s 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 Request Summary(in 200 words) As a Least Developed Country (LDC), a Small-Island Developing State and the newest country to the Asia-Pacific region, Timor-Leste faces a number of development challenges, which are exacerbated by climate change and climate change impacts.this proposal requests readiness preparation funding assistance of US$300,000 from the Green Climate Fund (GCF) for the National Designated Authority/Focal Point for Green Climate Fund for Timor-Leste, to undertake preparation activities over a two-year period from These readiness activities are those under the standardised work packages for activity area 1 (Establishing and strengthening the proposed National Designated Authority (NDA) and Focal Point), and activity area 2 (Development of a Strategic Framework) and include programming priorities and project/programme concepts and the identification of potential entities to nominate for GCF accreditation. Readiness preparation assistance will greatly benefit country ownership in Timor-Leste s engagement with the Green Climate Fund. Anticipated Duration Estimated total cost 01/07/ /06/2018(24 months). US$300,000

3 PAGE 2 OF 15 SECTION A: RATIONALE FOR REQUEST A.1 Background Please provide country overview including initiatives related to climate finance e.g. NAMAs NAPs etc. Country context The Democratic Republic of Timor-Leste is a Least Developed Country (LDC) and Small-Island Developing State(SIDS) that recently gained independence and became the 191 st member-state of the United Nations in Located on the Eastern half of the island of Timor, Timor-Leste is a half-island that covers around 14, 610Km², including an enclave Oe Cusse in the western part of the island, bordered by Indonesian west Timor. As the newest democracy in the Asia-Pacific region, Timor-Leste isa post-conflict country and recovering fast. In 2002, Timor-Leste had little in terms of infrastructure, governance systems and institutional capacities. Since independence in 2002, Timor-Leste has increased life expectancy, reduced child mortality, boosted school enrolment and reduced illiteracy. Economic growth is around a rate of 10 percent per annum and the government has engaged a strong focus on developing a transparent and accountable public financial management system. Yet, there are many development challenges and pressures still being faced by Timor-Leste, and the republic would benefit substantially in undertaking readiness for the Green Climate Fund (GCF), to assist in much needed climate finance to address some of the mounting challenges in the face of climate change. The population of 1.3 million is rapidly growing with 61 percent under 25 years of age, and around 37.4% living below the international poverty line 1. While Timor-Leste s economy has grown strongly in the past few years on the back of state-spending on infrastructure and human capital 2, it is still highly dependent on oil revenue 3.Food security is of high priority in Timor-Leste, with around percent of households in the country being moderately to severely food insecure; 47 percent of children suffer malnutrition 4. Farming practices and historical circumstances in the country have led to extensive deforestation and soil erosion, and around three-quarters of Timor-Leste s population rely on subsistence agriculture to survive; a further 80 percent of the poor (nation-wide) and90 percent of the poor in rural areas rely on rain-fed agriculture for their livelihood. This also sets vulnerability to climate change at a high level. Dependence on the agricultural sector means that climate change impacts can be far reaching. Agriculture is the main economic activity for rural communities; yet household food insecurity is widespread throughout all rural areas in the districts. Over 70 per cent of the population lives in rural areas, the majority being subsistence farmers who cultivate crops such as rice, corn, beans and starchy tubers on less than two hectares of land. The low input practices of agricultural systems, low crop productivity, unpredictable changes to the annual seasons, characterised by heavy rain falls and an intense dry periods, as well as a high rate of population growth, are the major contributors to food insecurity in the country 5. Climate change context With a limited adaptive capacity, Timor-Leste s population remains as highly vulnerable to climate change impacts. Annual mean temperature has increased about C, per year, and is likely to increase up to 1 C by 2040, while sea level has risen at around 9mm per year (which is much higher than the global average), and overall annual rainfall has decreased 6. Timor-Leste is highly vulnerable to natural disasters that include floods, droughts, landslides, and soil erosion resulting from a combination of heavy monsoonal rains, widespread deforestation and steep island topography. Climate change impacts are putting unprecedented pressure on Timor-Leste to adapt to an increased severity and frequency of extreme weather events; Due to its geographic location, topography and socio-economic conditions, Timor-Leste remains as one of the top 10 countries most at risk of disaster (Hansen et al., 2006, INC, 2014) Increased extreme rainfall events have resulted in hazards such as flash floods, and landslides, putting the coastal and lowland populations at risk. 1 Timor-Leste: Human Development Indicators, International Human Development Indicators, United Nations Development Program 2 UNDP Timor Leste, Timor-Leste Strategic Development Plan , Ministry of Finance, June Oxfam Timor-Leste 5 Initial National Communication, Climate Change in the Pacific: Scientific Assessment and New Research, Vol. 2., Country Reports (PCCSP, 2011).

4 PAGE 3 OF 15 Around two-thirds of Timor-Leste s population live in coastal and lowland areas, with the steep-sloped topography of Timor-Leste exacerbating climate risk vulnerability and fragile soils that are susceptible to erosion by the monsoonal rains as well as which accumulate sedimentation to water catchment areas and oceans, resulting in significant topsoil and nutrient losses. Timor-Leste has distinct wet and dry seasons, but rainfall patterns vary considerably between locations in the country. During wet season, extremely heavy rainfalls can occur over a relatively short timeframe, resulting in flooding, as well as landslides and high levels of soil erosion. Under the future and present trends, decreases in rainfall are projected or occurring in parts of Timor-Leste. Groundwater is heavily relied upon as a critical resource, and as the main source of household water in Dili and in rural areas. Changes in groundwater recharge coming from climate change impacts to rainfall during wet season, threatens these vital groundwater supplies during the dry season times coupled with ambient climate change impacts of sea level rise, inundation and salt-water intrusion to groundwater aquifers and springs. Climate change policies and strategies Timor-Leste has incorporated and implemented a number of policies, priorities and strategies on climate change since Independence in 2002: The country ratified the United Nations Framework Convention on Climate Change (UNFCCC) in 2006 Kyoto Protocol in 2008 Convention to Combat Desertification (UNCCD) in August 2003 In January 2007, Timor-Leste became a party to the Convention on Biological Diversity (UNCBD) Montreal Protocol (2009) and Vienna Convention (2009). In terms of specific national climate change policies, priorities and strategies, Timor-Leste developed and submitted a National Adaptation Programme of Action (NAPA) in 2011, and submitted its Initial National Communication (INC) to the UNFCCC in These have detailed the directions for climate change programmes and integration into achieving climate-resilient development goals. In 2015, this included adopting the 2030 Agenda for Sustainable Development and the Sustainable Development Goals, including Goal 13(to take urgent action to combat climate change and its impacts)and including: The strengthening of resilience and adaptive capacity to climate related hazards and natural disasters The integration of climate change measures into national policies, strategies and planning Education, awareness raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning The promotion of mechanisms for raising capacities for effective climate change related planning and management in LDCs, focusing on women, youth, local and marginalized communities 7. Timor-Leste is currently undertaking its Second National Communication to the UNFCCC, and is in the initial stages of developing a National Adaptation Plan (NAP). Climate change is also embedded in the overarching national strategy the Strategic Development Plan (SDP) for Timor-Leste, which includes ambitious targets for achieving ecological balance in safeguarding the natural resources and economic needs for the country s sustainable development, and notes the importance of addressing climate change and the additional challenges posed to the country s development through climate impacts 8. The National Adaptation Programme of Action (NAPA) sets out an overarching vision of ensuring that the Timorese population are more resilient to climate change in acknowledging their high vulnerability to climate change. The focus for implementing adaptation measures builds on existing strategies and plans across all sectors (including the National Priorities process) and is focused on reducing the adverse effects of climate change and promoting sustainable development. It is focused on developing and implementing immediate and urgent activities adapting to climate change and climate variability, as well as increasing awareness. Support for developing the National Adaptation Plan, under the forthcoming Developing capacities for iterative National Adaptation Planning process for climate resilient development project, is focused on further addressing the integration of climate change adaptation into relevant policies, plans, and associated processes. This will include: 7 Sustainable Development Goals 8 Strategic Development Plan , Government of Timor-Leste:

5 PAGE 4 OF 15 1) adaptation planning and implementation at the village and district level, 2) human resource development and institutional strengthening for adaptation planning, and 3) a national level adaptation framework. These policies and strategies have set the initial grounds and priorities for determining climate finance needs in the country. A.2 Justification for request Please explain how the readiness request will have an impact in your country and align with the goals of the readiness program. Please also discuss how the proposed activities are aligned with country priorities and strategies, and how link with existing climate finance initiatives in country. The proposed request for readiness assistance is fully in line with the country priorities and strategies. More specifically the readiness programme responds to the priorities outlined by the Strategic Development Plan (SDP, which SDP lists environmental degradation and climate change as threats and risks of national defense and security. and highlights that climate change presents serious environmental and political challenges for Timor- Leste, as a result of impacts from: Rising sea levels (SLR) to the predominately low-lying coastal located population, Sea water intrusion and inundation to freshwater supplies Forest fires and food shortages resulting from more extreme weather condition Increased natural disasters caused by flooding, drought and landslides. Coordination and capacity strengthening of institutions to work on climate change remains one of the main barriers for the Government of Timor-Leste. To date, a number of mechanisms for ensuring coordination between institutions and government agencies and capacity strengthening for response to climate change impacts have been undertaken. These include the following: 1. National Climate Change Adaptation Declaration; the Dili Declaration on Climate Change Adaptation 2. Memorandum of Understanding (MoU) on climate change data sharing 3. The Centre for Climate Change and Biodiversity 4. Working-Group on Climate Change Adaptation established under the National Directorate for Climate Change. The readiness support will build on these achievements and utilize some of these institutional mechanisms to further advance readiness in Timor Leste for an effective engagement with the Green Climate Fund and climate finance opportunities it offers. Current NDA arrangement is housed in the Ministry of Commerce, Industry and Environment s (MCIE) National Directorate of Climate Change. With support of readiness programme, strengthening the NDA for the GCF, the NDA will ensure more effective use of climate finance and coordination of resources in Timor-Leste. The country s climate change governance and institutions present the following weakenesses that the GCF Readiness Programme will help to tackle: lack of integration of policies and actions under the climate change portfolio, limited coordination capacity and ineffective cooperation between Ministries to work on a common climate change agenda; and insufficient financial resources allocated to climate change management and to the implementation of the country priorities on climate change.

6 PAGE 5 OF 15 Climate change programming currently relies on different donor project cycles 9 and tend to be hindered by limited short-term coordination, redundancies and overlapping of results,and an inability to track programming and the achievement of programming outcomes. This is permeated by a lack of in-house systems within the NDA to communicate and produce information materials (to sensitise and promote climate change issues across government and public)and by weak technical capacities and management systems to support coordination, consultation, monitoring and evaluation of programming. SECTION B: SCOPE OF WORK Description of activities(please provide detailed logical framework as an annex. See Annex I B.1 for content to build from). If consultancy service is required to undertake proposed activities, please also include a brief terms of reference of the service in this section or as an annex. Activity Area1: 1. Establishing and strengthening the proposed National Designated Authority (NDA). The current arrangement for an NDA has been established, however, assistance is required to build a team and undertake the engagement process and clearly define the roles of the NDA in presenting the Green Climate Fund to the government and non-government stakeholders. The current arrangement also requires significant support in terms of strengthening capacities to undertake the role and responsibilities of the NDA. The readiness proposal therefore proposes the following to be undertaken to establish and strengthen the NDA: 1.1 Identify the proper NDA arrangement and NDA team capacities required to fulfil their roles and responsibilities. Specifically: Provide support through the following priority activities: Approving the roles and selecting an NDA team, in conformity with the Governing Instrument, and 2) determine nationally the location, structure, operation and governance of the NDA through the following activities: Undertake an assessment of the NDA, to determine the current level of capabilities, identify the gaps, and map a capacity development plan to strengthen the core NDA functions. Designate a team responsible for coordinating and driving communication with the Fund, and managing operational activities, including coordination with other focal points, such as the Conventions focal points, Global Environment Facility and Adaptation Fund focal points and streamlining Timor-Leste s engagement with all sources of internal and external finance; Undertake consultation and facilitate decisions for the selection of the NDA team, from across/within the appropriate Directorates and Ministry (or Ministries) designated to lead the GCF preparations; Build mechanisms and capacity for an NDA team to undertake monitoring and evaluation (M&E) within the relevant guidelines of the Fund, and; Establish support roles for the NDA to lead Timor-Leste s efforts to initiate the preparations for a Country Work programme. 9 Current climate financing in Timor-Leste has to date been inclusive of the Global Environment Facility (GEF) and individual country and regional donor funding e.g. EU, US, Australia, Germany amongst others and climate change initiatives and projects are implemented via various development partners, agencies, INGOs and national NGOs. These climate change actions and activities include: updating weather data monitoring and capacities; improving local community and rural area resilience; building water security and resilience measures; community and municipality-level vulnerability assessments, and adaptation action plans; ecosystem-based adaptation; watershed based adaptation; household resilience building and income diversification; disaster risk reduction; climate change policy and reporting; gender-sensitive resilient agriculture; community-based adaptation planning; resilient small-scale infrastructure projects; large scale resilience infrastructure projects; reforestation; focused agricultural resilience and food security activities and programmes; efficient and renewable energy projects; coastal resilience building, amongst others.

7 PAGE 6 OF 15 2) Support to establish an NDA team to be able to recommend to the Board funding proposals in the context of the national climate change strategies, plans, policies and priorities of Timor-Leste, through the following activities: Support establishment of an NDA team to be able to undertake consultations on national climate change strategies, plans, policies and priorities, for alignment of proposals, and to facilitate the nominations of prospective entities seeking accreditation with the Fund. Including disseminating in local language(s) key operational procedures of the Fund, including its environmental and social safeguards and no-objection procedure Implement the non-objection procedure as per the Fund s Initial no-objection procedure, through the following: 1) Determine the no-objection procedure as per the Fund s Initial no-objection procedure, through the following activities: Determining the no-objection procedure approach for Timor-Leste, according to national capacities and existing processes and institutions, undertaking stakeholder communications on this process, and installing resources and capacity for the NDA team (established under 1.1.1) to undertake the no-objection process. These will include establishing a process for check-listing applications against national priorities, relevant policies and planning; establish a mechanism for applications to go through the Fund s Environmental and Social Safeguards compliance assessments, and; establishment of a government stakeholder process for noobjection decision-making. 2). Supporting the newly established NDA team to act as a focal point for communication with the Fund, through the following activities: Facilitate mechanisms and capacity for the NDA to overview the activities of other relevant multilateral, bilateral, regional and global funding mechanisms and institutions working in Timor-Leste; Build mechanisms and processes (e.g. information database and a team of information and communication services) for the NDA to retain an overview (e.g. project information management system) of all funding proposals relating to Timor-Leste and facilitate available information on the projects and programmes through appropriate media and relevant networks, including local languages. Assist the focal point and newly established NDA team to establish a process for facilitating the communication of applications of national entities for accreditation to the Fund, and for effectively undertaking a transparent and consistent process that is effectively described for each proposal with the accompanying no-objection letter signed by the official representative for the NDA. Establish communication dissemination procedures including a website portal (or additional page to the Ministry website) for the proposals given no-objection status under the noobjection process to be communicated and accessible in Tetun and English nationally Establish capacity to undertake ongoing engagement with stakeholders at national and sub-national levels, including government, civil society and private sector actors, that is consistent with the Fund s Initial best practice options for country coordination and multi-stakeholder engagement, through the following: 1) Build mechanisms and capacity for NDA to facilitate and lead country coordination mechanisms, and multi-stakeholder engagement for country consultations, by: Engaging a systematic and iterative approach to coordination and multi-stakeholder engagement that works consultatively in defining the national climate change priorities and strategies in collaboration with the NAP development, enabling an iterative process of ongoing development for defining and redefining these priorities and strategies engaging civil society, academia, private sector, inter-governmentally and with other stakeholder groups and sectors; Assisting the NDA team to 1) engage across and integrate into the existing forums for national meetings, planning and dialogue exercises (e.g. the National consultative process), and

8 PAGE 7 OF 15 promote opportunity for synergies, exchange of information and relevant shared lessons learnt. Activity Area 2 2. Preparation of strategic frameworks for engagement with the Fund, including preparation of a Country work programme. 2.1 Preparation and definition of a strategic framework based on the existing national climate change plans and strategies the National Adaptation Programme of Action (NAPA) for Timor-Leste, the national Strategic Development Plan (SDP), and the forthcoming National Adaptation Plan (NAP) through the following activities: Support to the NDA, to develop a country programme in accordance with the Fund s Initial general guidelines for country programmes, including programming priorities and programme and project concepts consistent with the Fund s Initial investment framework, that is widely consulted with government, sub-national (Municipal) government institutions, civil society, academia, and private sector, driven by the NDA, and in line with a gender sensitive approach. Specifically: 1). Determine initial relevant readiness programming priorities and needs assessments to support the development of a work programme, including priorities for disseminating information and engaging stakeholders, including: Stocktaking of existing strategies, policies and needs assessments, NAP and NAPA, and draw lessons from existing national strategies, policies, and from international organisations, development agencies, global think tanks, national NGOs and research academic institutions. Support the NDA in providing leadership on the development of readiness processes in the Country. Establish coordination with the National Adaptation Plan (NAP) process as it develops, and identify strategic investment priorities that take stock of Timor-Leste s existing climate-change related strategies, policies and needs assessments, and undertake complimentary engagement processes in line with and complimenting the NAP. Providing assistance for mainstreaming climate change considerations into national finance and development decisions; ensuring that the development of investment proposals are according to national strategy and priorities, with climate considerations and resilience building investments. 2) Prepare an initial strategic framework in which to engage with the GCF, and in which to frame country work programming based on the priorities, through the following activities: Undertake stakeholder consultations, through the NDA with National Directorates and Ministries, reviewing the country priorities relating to climate change laid out in the national climate change plans and strategies; NAPA, NAP and the national Strategic Development Plan (SDP) amongst others, for an agreed Government of Timor-Leste Strategic Framework, in which all activities with the Fund are framed and prioritised. Identification of initial potential projects for proposals, requiring project development funds concept submissions and setting a criteria for prioritization of projects. Supporting the selection and accreditation process of the National Implementing Entities (such as Directorates within the Government of Timor-Leste), including initial internal preparations for meeting the Fund requirements and identifying accreditation gaps against Fund s fiduciary standards and environmental and social safeguards (ESS). Undertake awareness raising activities (through letters to government agencies/directorates and information sessions) to raise awareness on the Fund requirements and to present assessment findings internally, as well as report on examples of lessons learned from other countries. 3). Support the development of pipeline programmes at national and sub-national levels, stemming from a country work programme and existing national priorities, action planning and strategies, through the following activities:

9 PAGE 8 OF 15 Support through national consultants to the newly established NDA to identify potential programmes and projects that advance national priorities and align with the results management framework (RFM) of the Fund, including support to plan for an appropriate enabling investment conditions for specific projects and/or programmes. National and sub-national consultations on potential programme and project proposals to be included for submission, following their internal NDA appraisal. Support to the NDA for establishing a national process for ensuring all proposals to the Fund go through appropriate and effective consultation, and follow the protocols to the Fund.Determine expected programme and project timelines of the submissions according to the country work programme and country priorities. Support definition of concept priorities based upon the country work programme, and according to national priorities, and building on existing country programmes, planning and strategies, by establishing a database and management process hosted under the NDA, for coordinating and overseeing all proposals for funding relating to the country, and for facilitating the information available for each project/programme is disseminated and available in media and relevant networks. Identification of a monitoring and evaluation framework to assess the overall effectiveness of the proposals and final projects, in achieving the national climate change priorities and goals, as defined in the Strategic Framework, and work programme. Given the limited starting capacities at the NDA, the readiness programme is proposed for a two year implementation that will be phased as follows: Year One: The NDA will hire (a) short-term consultant (one individual or individuals or a firm) for 12 months, to undertake the activities under Activity Area 1 as per the Standard Work Package; to assist the NDA team and build the Directorate of Climate Change s capacity to function as the NDA, and to coordinate and act as the NDA for the Green Climate Fund for Timor-Leste. Year Two: The NDA will hire (a) short-term consultant (one individual or individuals or a firm) for 12 months, to undertake the activities under Activity Area 2 as per the Standard Work Package; to assist the NDA team for the development of a strategic framework of potential entities and priority projects for Timor-Leste. B.2 Expected results Activity 1: The NDA is established and its institutional capacities built to effectively fulfil its roles and responsibilities in relation to the Fund Activity 2: Development, through a stakeholder engagement process, of a country programme to include elements provided in the Fund s Initial general guidelines for country programmes, which will include programming priorities and programme/project concepts consistent with the Fund s Initial results management framework and Initial investment framework SECTION C: BUDGET (include total cost and share of GCF funding) Please use the separate budget templateprovided to detailed relevant line items. Category Activity area 1 Activity area 2 Activity area 3 Activity area 4 Activity area 5 Total (USD) GCF Share (USD) Consultancy $60,000 $60, , ,000 Travel and per diem of consultants $18,000 $18,000 36,000 36,000

10 PAGE 9 OF 15 Workshops and trainings (venue, catering, transportation,te chnical materials) $45,000 $45,000 90,000 90,000 Audit costs $6,700 $6,700 13, , 400 Contingency $6,700 $6,700 13, , 400 Project Management cost $ 13,600 $ 13,600 27,200 27,200 Grand Total 300, ,000 Note: please refer to the Fund s guide on indicative budgets for the standardised packages for activity 1 and activity 2. SECTION D: IMPLEMENTATION PLAN D.1 Implementation arrangements Please include information on delivery partners. The United Nations Development Programme (UNDP) is selected by the NDA as a delivery partner for the requested readiness support and will manage the implementation of the programme under the leadership and guidance of the NDA. UNDP will take responsibility for fiduciary management and delivery of the readiness funding, and support the NDA to implement the program, to identify, recruit and manage technical experts required for the implementation of both Work Packages according to agreements, procurement plans and detailed implementation plans as further elaborated in inception Report. The activities undertaken under Activity Area 1and Activity Area 2will be implemented in 24 months. D.2 Disbursement and implementation schedule Disbursement will be made directly to the UNDP, the delivery partner in three disbursement tranches: - The first disbursement, which amounts to US$135,000 will be transferred upon the submission of an inception report from UNDP, the delivery partner, in form and substance acceptable to the Fund, which includes detailed implementation plan, procurement plan and budget; - The second disbursement of US$135,000 will be transferred upon submission of an interim progress report and financial report, including an annually audited expenditure statement. - The third disbursement, which amounts to US$ 30,000 upon submission of the completion report. D.3 Procurement plan Please provide detailed procurement plan including methods. UNDP will be responsible for oversight of financial management and procurement, according to strict international-standard and UN agency procurement processes and procurement standards. UNDP will manage the readiness funding and responsibility for providing and contracting the services described in this proposal, as well as reporting on the progress of the implementation in close coordination and under the supervision of the NDA. The procurement will be processed in accordance with the procurement guidelines and policies of UNDP. The NDA will approve the interim progress report and completion report provided by the delivery partner. UNDP, 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

11 PAGE 10 OF 15 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 organised, a shopping method will be used to procure such services consistent with UNDP s procurement policies (e.g. three quotes). Information on the process and the results of procurement to be 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: MONITORING & REPORTING PLAN Please describe the frequency and responsibility for monitoring the indicators, the source of information that will be used to measure the indicators and the timing for submitting the interim and final reports of the activities implemented and outputs and outcomes achieved. The implementation of the activities will be delivered by UNDP as the delivery partner under the guidance of the NDA. Project outputs will be reported to the GCF and at Ministerial level based upon completion of activities according to the timeline requirements for each activity phase.these outputs will be reported to the Fund as per outlined at D2, and will include a report against the logical framework included at Annex 1. The monitoring of the project activities will be undertaken in accordance with UNDP processes and requirements, and will be primarily based on the project reports and the impacts at the national and Fund levels under monitoring by UNDP reporting, NDA reporting to Ministerial levels, and reporting to GCF. SECTION F: RISK & MITIGATION MEASURES Please describe the expected risks (external and internal) that could influence the timing and quality of the deliveries. Highlight if there might be critical risks that could compromise the overall implementation. For each risk, identify the possible early corrective measures that will be in place to avoid or mitigate any negative impact. Risk 1 Low stakeholder interest for engagement in the program implementation. Mitigation The NDA team will engage widely across all sectors at the different levels to ensure incorporation into the design and decision making processes; intensive communication planning and information sensitisation processes will be utilised to ensure that stakeholders are informed and able to participate in the engagement process, and to ensure higher levels of interest in the program implementation. Risk 2 Low institutional capacities to manage the program and the roles involved Mitigation A full capacity assessment will be undertaken to identify the key gaps, and identify strategies and processes to overcome these gaps and boost capacity.

12 PAGE 11 OF 15 Annex I. Logical Framework OUTCOMES PROJECT SUMMARY INDICATORS BASELINES 1. NDA capacity to undertake Fund-related 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 1.5 Information, including in local languages, on procedures of the Fund to disseminated to country stakeholders 1.1. MICE has institutional capacity, but requires additional support to set up the functions and mechanisms to more effective engagement with the GCF, especially its functions to coordinate across stakeholders and facilitate effective consultation and communication needs to be strengthened; 1.2. MICE hosts both the UNFCCC and GCF focal points and the climate change directorate leads on INDCs and national communications that generate wealth of information and knowledge. However the novelty of GCF requires additional knowledge, especially as regards to climate finance issues; 1.3. Procedural mechanisms for project endorsements exist in the country in relation to the GEF and other vertical funds. At the same time the Ministry of Finance has recently issued a decree about the approvals of donor funding for the country. Since GCF is a new fund, the government has to undertake necessary consultations to clarify and establish a nationally accepted no-objection issuance; 1.4. Capacities to monitor and evaluate the Fund related activities at the MICE are nascent and require support to set up a project database to ease the process of tracking progress and results evaluation capabilities.

13 PAGE 12 OF One of the current limitations to more effective engagement of the MICE with the various vertical funds is a lack of resources to make the critical information available in local language for broad dissemination across the government and nongovernment organizations; 2. Development of a 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 2.1. MICE is responsible to coordinate all climate change related activities in the country. It has a convening role under the climate change working group. The existing coordination mechanisms will be used to enhance the coordination functions of the NDA. GCF readiness support will enhance involvement of stakeholders in defining cross-sectoral and national priorities for engagement with the fund The government has prepared the National Strategic Plan that outlines a long term vision of the country s development pathway. It is currently developing climate change policy framework with the engagement of all national stakeholders. This process will be utilized to prepare the GCF country framework programming outlining GCF investment priorities that are fully in line with national development and climate change agenda.

14 PAGE 13 OF There is no such document available in Timor Leste. Country programme document will be developed in order to further mobilize the climate finance and attract diversity of funding sources through a leveraging power of GCF investments. OUTPUTS 1.1 Identify the NDA and NDA team capacities to fulfill roles and responsibilities 1.2 Support the mandated focal point through the process of selecting and establishing an approved, designated NDA in a manner consistent with the GCF Initial best-practice guidelines for the establishment of national designated authorities and focal points 1.3 Implement the non-objection procedures as per the Fund s Initial no-objection procedure 1.4 Establish capacity to undertake ongoing engagement with stakeholders at national and sub-national levels that is consistent with the Fund s Initial best practice options for country coordination and multi-stakeholder engagement Write up of the coordination process, and convening schedule Meeting minutes and participant lists documenting engagement of at least xx groups Electronic copy of the annual report, and details of public dissemination channels Links to electronic copies of presentations, information materials, climate and development information disseminated to distribution lists where relevant At least 3 information materials on the fund developed and disseminated to at least 1000 people There is an existing coordination platforms in Timor Leste hosted by the MICE that the Readiness project will build on and strengthen further; There is already a practice of documenting meetings of working groups; All Readiness project meetings, together with lists of participants will be recorded; Reporting system are not rigorous at the MICE, but the Readiness project will put in place annual reporting practice and deliver and disseminate annual reports; A recently established centre of climate change and biodiversity started to collect all climate change related information in the country. The Centre will be further supported to create information and knowledge repository accessible to all concerned organizations. A readiness specific website will be opened as part of the MICE website to make GCF related

15 PAGE 14 OF Preparation of Strategic Framework for engagement with the Fund 2.2 Country Work Programme, including elements provided in the Fund s Initial Guidelines for Country Programmes 2.3 Summaries of meetings of multistakeholder engagement, including list of participants Copy of the Strategic Framework 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 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 information readily available in local language No information materials have been prepared in relation to GCF. at least three set of information packages will be prepared (tentatively: (i) a general information package on GCF; (ii) six investment criteria and related examples for meeting the criteria across both adaptation and mitigation result areas; (iii) GCF national accreditation requirements) There is no GCF country programme at this time. By end of the readiness project, the NDA expects to have the GCF country programme Strategic Framework outlining priority areas of engagement with the Fund will be prepared. There is no such framework available in relation to the GCF There is an established practice of information dissemination at the MICE; these channels will be used and other channels explored and broadened; There is an established practice at the MICE to convene the consultation meetings and record relevant information, including the key decisions. These practices will be further enhanced Currently there is no practice of recording results, lessons learned and knowledge across the climate change portfolio in the country. The GCF

16 PAGE 15 OF 15 readiness will set up a project repository to track the progress, evaluate results and draw critical lessons for further programming.